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ELRCDismissedNot stated in the judgment as provided

Kenya Shipping Clearing Freight Logistics and Warehouses Workers Union v Wilham (K) Ltd & another (Employment and Labour Relations Cause E1074 of 2021) [2023] KEELRC 3202 (KLR)

Employment and Labour Relations Court
1 December 2023
3,142 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~13 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court dismissed a union's redundancy claim, confirming unions can sue for members without a recognition agreement, but found no job losses occurred.

What this practically means

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Executive summary

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The Claimant trade union filed an amended memorandum of claim on behalf of 32 grievants, contending that the Respondents defeated its attempts to secure a recognition agreement by declaring employees redundant and transferring them to a sister company, Shalimar Flowers (K) Ltd, under fresh contracts that extinguished prior claims. The union sought redundancy dues for four years. The Respondents denied the union's standing, asserting only 18 of 485 employees were recruited, and maintained the transfer was an internal reorganization effected with employees' consent, without loss of benefits or continuity. Two issues fell for determination: the union's locus standi and whether the restructuring constituted redundancy under Section 40 of the Employment Act. On the first, the court, following Modern Soap Factory v Kenya Shoe and Leather Workers Union and relying on Article 41 of the Constitution and Section 22 of the Employment and Labour Relations Act, held that a recognition agreement is not a precondition to a union representing members in court; the union had standing and Mr Ongera, a union official, was properly mandated. The court nonetheless accepted the unauthorised witness statements of other grievants under the proviso to Section 21 of the ELRC (Procedure) Rules in the interest of justice. On redundancy, the court found no loss of employment: the claimant witness retained her supervisor, role, salary and benefits, contracts were signed voluntarily after consulting the union, and the companies shared the same directors and shareholders. The claim for redundancy dues was dismissed with each party bearing its own respective costs. Judgment delivered virtually in Nairobi on 1st December 2023 by Anna Ngibuini Mwaure, Judge.

Questions the Court framed

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

  1. 1.Whether the Claimant has locus standi to institute this suit on behalf of the grievants
  2. 2.Whether the restructure of the Respondents rendered their employees redundant under Section 40 of the Employment Act

Key legal issues

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01

Whether the Claimant union had locus standi to sue on behalf of the grievants without a recognition agreement or CBA

Holding

The Claimant had locus standi as it represented grievants who were members and employees of the Respondents; a recognition agreement is not a prerequisite for representation in court

Reasoning

Applying Modern Soap Factory v Kenya Shoe and Leather Workers Union and Article 41 of the Constitution, the court held that a registered union with constitutional mandate may represent members in court. Recognition agreements regulate collective bargaining, not court representation. Section 22 of the Employment and Labour Relations Act permits representation by a union official, so Mr Ongera was properly mandated.

p. 6
02

Whether the restructuring/transfer of the Respondents' business to Shalimar Flowers (K) Ltd rendered the employees redundant under Section 40 of the Employment Act

Holding

No redundancy occurred; employees continued in employment with the same roles, salary and benefits, and signed new contracts voluntarily

Reasoning

Applying the statutory definition of redundancy in Section 2 of the Employment Act, the court found no loss of employment, abolition of office or termination at the employer's initiative. CW1 retained her supervisor, role, responsibilities, salary and benefits; contracts were signed voluntarily after consulting the union, and the companies shared the same directors and shareholders.

p. 7
03

Whether the witness statements of grievants who gave no authority to the testifying witness could be accepted

Holding

The court accepted the witness statements in the interest of justice under the proviso to Section 21 of the ELRC (Procedure) Rules, despite absence of authority

Reasoning

Although the court was disturbed that the claimant witness produced no authority to act for the other grievants, it invoked the proviso to Section 21 of the Employment and Labour Relations Court (Procedure) Rules to accept the statements so that justice would be done.

p. 6

Legal principles established

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  • A registered trade union whose constitution so empowers has standing to institute a claim and represent its members in court even absent a recognition agreement with the employer
  • A recognition agreement is not the basis upon which a trade union represents its members in court; the two roles are distinct

Court orders

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  1. 1.The claim for redundancy dues for four years for the respective employees is dismissed
  2. 2.Each party is ordered to pay their respective costs

The bench

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

Wrote the judgment

Jurisdiction invoked
Article 162(2) of the Constitution and Section 22 of the Employment and Labour Relations Act (employment and labour relations jurisdiction); Section 21 of the Employment and Labour Relations Court (Procedure) Rules invoked on witness statements

Relief refused

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Claim for redundancy dues for four years for the respective employees

No redundancy was declared as employees continued to work with no job losses; the claim was not proved

p. 7

Costs

Each party to pay their respective costs

Quotable passages

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

It is not in dispute that the Claimant union represents the grievants who are/were employees of the Respondents herein and members of the union, therefore, the Claimant has locus standi.
p. 6Trade union locus standi without recognition agreement
The court finds there was no redundancy declared on the employees as they continued to work and there were no job losses. The claim for redundancy dues for four years for the respective employees is not proved and is not merited. The claim is therefore dismissed and each party is ordered to pay their respective costs.
p. 7Final orders - dismissal of redundancy claim

Issues in the judgment

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minor

Judgment does not state the case number or neutral citation anywhere in the text provided

minor

The names of the Respondents are inconsistently identified in the judgment - the claim describes the employer entities as Mahee Flowers Ltd, Mwanzi Flowers Ltd, Wilham (K) Ltd and East African Growers, while the heading refers simply to Respondents and the testimony refers to Shalimar Flowers entities

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Kenya Shipping Clearing Freight Logistics and Warehouses Workers Union v Wilham (K) Ltd & another (Employment and Labour Relations Cause E1074 of 2021) [2023] KEELRC 3202 (KLR)", Case Analysis (2023). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/3202/eng@2023-12-01

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