Skip to content
AI-generated case briefs sourced from Kenya Law · Not legal advice
AI-generated case brief
Case Brief · caselaw.co.ke
ELRCPartially AllowedCause No. 21 of 2006

TAILORS & TEXTILES WORKERS’ UNION v T.S.S. SPINNING & WEAVING LTD [2007] KEELRC 18 (KLR)

Industrial Court of Kenya
29 March 2007
3,824 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~15 min to read original · ~4 min brief

The bottom line

#

Kenya's Industrial Court awarded textile workers higher house allowances, sick leave, funeral support and a 7% annual wage rise, but rejected pension and shift allowance demands.

What this practically means

#

Executive summary

#
This Industrial Court award determines eight issues in dispute arising from the review of the collective agreement between the Tailors & Textiles Workers' Union and T.S.S. Spinning & Weaving Ltd for the period 1st January 2002 to 31st December 2003, referred under a Labour Commissioner's certificate under Section 14 of the Trade Disputes Act, Cap. 234. The Union sought improved house allowance, leave travelling allowance, sick leave, funeral assistance, shift allowance, a general wage increase, protective gear and a pension/provident fund scheme; the Company pleaded inability to pay, citing cumulative losses. An Economic and Planning Division report showed the Company's poor financial performance and a compensatory entitlement of 13.6% based on cost of living indices. The Court awarded a house allowance of 7.5% each year (15% over two years) on basic wages, guided by Section 9 of the Employment Act; leave travelling allowance of Kshs.1,400/= per year; sick leave of 45 days on full pay and 30 days on half pay; funeral assistance enhanced to Kshs.10,000/=; and a general wage increase of 7% each year (14% over two years). It referred the protective gear question to a Factories' Inspector for assessment and a report within three weeks for final decision. The Court rejected the shift allowance increase and the pension/provident fund demand as premature given the Company's finances. No costs order was made.

Questions the Court framed

#

The issues the Court set itself to decide, in its own words.

  1. 1.Whether the employees are entitled to an improved house allowance
  2. 2.Whether leave travelling allowance should be increased
  3. 3.Whether sick leave entitlement (full pay and half pay) should be increased
  4. 4.Whether the Company's contribution towards funeral expenses of a deceased employee should be enhanced
  5. 5.Whether the shift allowance should be raised
  6. 6.Whether a general wage increase should be awarded and at what rate
  7. 7.Whether employees in the Two For One twister machine section should be supplied with industrial boots as protective gear
  8. 8.Whether a pension/provident fund scheme should be introduced for the employees

Key legal issues

#
01

House allowance

Holding

Company's offer of 5% and 6% improved to 7.5% each year (15% for two years) on basic monthly wage, in view of Section 9 of the Employment Act and prevailing urban rents

Reasoning

The Court reiterated that decent accommodation is scarce and unaffordable in urban centres and employers must provide reasonable housing or sufficient rent. Guided by Wage Guideline 2(ii) and (iv), Section 9 of the Employment Act and the EPD evidence of actual rent levels in areas where employees live, the Court improved the Company's offer to 7.5% per year for the two-year period.

p. 3
02

Sick leave entitlement

Holding

Improved from 40 days full pay/21 days half pay to 45 days full pay/30 days half pay to maintain uniformity in the industry

Reasoning

The Court held sick leave is intended to cover absence on account of illness and employees should not be discouraged from using it. Considering comparable firms in the sector (averages of about 43 days full pay and 41 days half pay) and the need for industry-wide standards, the Court awarded 45 days full pay and 30 days half pay, improving on the Company's offer of 45/21.

p. 4
03

Death of an employee - funeral expenses

Holding

Company's contribution enhanced from Kshs.7,000/= to Kshs.10,000/= towards funeral expenses

Reasoning

Relying on its earlier observation in Kenya Chemical & Allied Workers v. Eveready Batteries Kenya Ltd that it is human and important for a company to share the cost of bereavement, and considering rising coffin and transport costs and the sector average, the Court enhanced the employer's funeral contribution by Kshs.3,000/= to Kshs.10,000/=.

p. 4
04

General wage increase

Holding

7% each year, or 14% for the two years' period, awarded as a middle course between Union demand of 12% and Company offer of 5%, guided by ability to pay and cost of living

Reasoning

The EPD established a compensatory entitlement of 13.6% (6.8% per year) based on cost of living indices, and that the Company had incurred losses while its accounts were doubted. Applying the ability-to-pay principle, the Court found the Union's demand too high and the Company's offer too low, and awarded 7% per year for the two-year period.

p. 5
05

Protective gear/clothing

Holding

Referral to a Factories' Inspector to assess whether employees in the Two For One twister machine section need industrial boots, report to be filed within three weeks for final decision

Reasoning

The Union invoked Section 53 of the Factories Act requiring protective clothing for workers exposed to injurious substances. The Company conceded it had not supplied industrial boots to that section, regarding them unnecessary. Both parties desired an inspection, and the EPD recommended one, so the Court ordered the Labour Commissioner to dispatch an inspector.

p. 5

Legal principles established

#
  • It is incumbent upon every employer to provide reasonable housing accommodation, or pay sufficient rent, to each of his employees
  • Leave travelling allowance is personal to the employee himself or herself
  • The primary objective in deciding wage-increase disputes is the ability of the employer to pay and the restoration of peace, harmony and good will in the industry
  • A pension or provident fund scheme can only be introduced if the employer's financial position justifies it

Court orders

#
  1. 1.Award of house allowance at 7.5% each year, or 15% for the two years' period, on the employees' basic monthly wage
  2. 2.Award of leave travelling allowance of Kshs.1,400/= each year when an employee proceeds on annual leave
  3. 3.Award of 45 days sick leave with full pay and 30 days sick leave with half pay
  4. 4.Enhancement of the Company's contribution towards funeral expenses of an employee who dies in employment to Kshs.10,000/=
  5. 5.Rejection of the demand for an increase in shift allowance
  6. 6.Award of a general wage increase of 7% each year, or 14% for the two years' period
  7. 7.Order that the Labour Commissioner dispatch a competent Factories' Inspector to assess the protective gear requirements of the employees, with the report to be filed with the Court within three weeks for final decision
  8. 8.Rejection of the demand for introduction of a pension/provident fund scheme

The bench

#

One judgment of the whole court — no separate or dissenting opinions.

Wrote the judgment

AW
majority
JK
majority
Jurisdiction invoked
Trade Disputes Act, Cap. 234, Section 14(7) and (9)(e) - dispute referred with statutory certificate of the Labour Commissioner

Relief refused

#

Shift allowance increase from Kshs.3/= to Kshs.5/= per hour

The current rate compares favourably with rates in other comparable concerns in the sector, and regulating shifts is a management function

p. 4

Introduction of a pension/provident fund scheme

The Company's financial position does not justify the scheme; it would be an unbearable burden and the demand is premature

p. 5

Costs

No costs order was made in the award.

Quotable passages

#

Verbatim from the judgment, each located to the page it appears on in the official PDF — so these can be cited and checked directly.

we order that the Labour Commissioner do dispatch a competent Factories’ Inspector to the premises or factory of the Company to assess the requirements of the employees. The Factories’ Inspector is directed to file his report with the Court within three (3) weeks from the date of this award for final decision on this issue.
p. 5Final orders - referral of protective gear issue to Factories' Inspector
it is our considered judgement that a wage increase of 7% each year, or 14% for the two years’ period, will meet the ends of justice, and we so award and order accordingly.
p. 5General wage increase awarded
we are inclined to improve the offer on this issue of 5% and 6% for the two years respectively by 2.5% and 1.5%, to make it 7.5% each year, or 15% for the two years’ period, on the employees’ basic monthly wage, and we award accordingly.
p. 3House allowance awarded
We have observed in several awards before that leave travelling allowance is personal to the employee himself or herself.
p. 3Nature of leave travelling allowance
In the circumstances, prudence demands that we should wait a little longer till the financial position of the Company stabilized. We consider this demand a little premature and reject it for now.
p. 5Pension/provident fund demand rejected
It is purely the function of the management to regulate the number of shifts according to the requirement of the business.
p. 4Shift allowance demand rejected

Issues in the judgment

#
minor

Internal inconsistency in the financial analysis: the report states 2001 showed a profit of Kshs.9.4 million but earlier describes the 2003 gross profit figure of Kshs.9.4 million, and elsewhere refers to 'except in 2001 when the accounts showed a profit of Kshs. 9.4 million' while also attributing Kshs.9.4 million to 2003

Key timeline

#

Practical implications

#

Frequently asked questions

#

Cite this brief

#

Cite this brief

Caselaw, "TAILORS & TEXTILES WORKERS’ UNION v T.S.S. SPINNING & WEAVING LTD [2007] KEELRC 18 (KLR)", Case Analysis (2007). Cause No. 21 of 2006. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2007/18/eng@2007-03-29

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.