Kenya Plantation Agricultural Workers Union v Sirgoek Flowers Limited (Cause E004 of 2021) [2023] KEELRC 3344 (KLR)
The bottom line
#A Kenyan court awarded flower farm workers an 8% annual pay rise instead of the 20% claimed, partly because the union delayed filing for six years.
What this practically means
#Executive summary
#Questions the Court framed
#The issues the Court set itself to decide, in its own words.
- 1.What should be the effective date for the CBA for the period 2016-2018
- 2.Whether the employees of the Respondent are entitled to a wage increase of 20%
Key legal issues
#Effective date and duration of the 2016-2018 CBA
Although logically the successor CBA should have taken effect from expiry of the last CBA on 1st April 2016, the court ordered an effective date of 1st April 2020 to 30th March 2022, citing the six-year unexplained delay in filing and the effects of Covid-19.
Section 59(5) of the Labour Relations Act allows parties to agree the effective date, and clause 38 of the last CBA continued it in force until amended. The Respondent's own 8% proposal implied a 2016 commencement. However, the Claimant filed suit six years after expiry without explanation, and the court took judicial notice of the Covid-19 pandemic's economic impact, so it fixed a prospective effective date to bring the parties to the present.
Whether a 20% general wage increase was merited
Claimed 20% increase rejected for lack of evidential justification; the court awarded the 8% per year the Respondent had offered.
There was no Central Planning and Monitoring Unit report under rule 37(1) of the ELRC Procedure Rules because the Respondent was non-responsive. The Claimant made no submission on inflation rates for the period and produced no financial reports showing the Respondent could afford 20%. In the absence of evidential basis, the court adopted the Respondent's offer of 8% each year.
Protection of statutory minimum wage
Any employee below the statutory minimum wage must be raised to it before applying the general increase.
The court included this protective order in its summary of awards to ensure no unionisable employee is disadvantaged by application of the percentage increase to a sub-minimum wage.
Legal principles established
#- A collective agreement becomes enforceable upon registration and is effective from the date agreed upon by the parties
- In an undefended claim, the court may presume the truth of the claimant's unchallenged pleadings
- A claimant seeking an enhanced wage increase must justify it with evidence of inflation rates and the employer's financial capacity
Court orders
#- 1.Period covered by the CBA is two years from 1st April 2020
- 2.General wage increase at the rate of 8% on 1st April 2020 and a further 8% on 1st April 2021
- 3.If any employees' wages are below the statutory minimum wage, they shall first be brought up to the statutory minimum wage before being awarded the general wage increase
- 4.No orders for costs
The bench
#One judgment of the whole court — no separate or dissenting opinions.
Wrote the judgment
- Jurisdiction invoked
- Jurisdiction of the Employment and Labour Relations Court over labour disputes under the Employment and Labour Relations Court Act and the Labour Relations Act
Relief refused
#Claimant's prayer that the CBA effective date be 1st April 2016 and duration run from that date
Court found unexplained delay of about six years in filing suit and invoked the Covid-19 pandemic effects, fixing the effective date from 1st April 2020 instead
20% wage increase for each year of the CBA
Claimant produced no evidence of inflation rates or the Respondent's financial capacity, so the court awarded the 8% the Respondent had offered
Costs of the suit
Court declined to award costs
Costs
There shall be no orders for costs.
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.
A collective agreement becomes enforceable and shall be implemented upon registration by the Industrial Court and shall be efiective from the date agreed upon by the parties.
The Respondent having failed to file a response to the Statement of Claim, the Court can only presume that what the Claimant stated is the correct position.
There is no basis upon which the Claimant can justify the award of 20% wage increase for both the 1st and 2nd years of the CBA.
Period covered by the CBA is two years from 1st April 2020.
General Wage increase at the rate of 8% on 1st April 2020 and a further 8% on 1st April 2021.
There shall be no orders for costs.
Issues in the judgment
#Judgment states the Statement of Claim was served on 12th July 2023 yet also says the suit was filed on 3rd February 2021 while the claim is dated 4th March 2020, with inconsistent dates
Claimant's prayer sought CBA effective from 1st April 2016 running until 1st March 2018, but relief (e) seeking conclusion, signing and registration of the CBA within 14 days of judgment does not appear in the final orders
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Kenya Plantation Agricultural Workers Union v Sirgoek Flowers Limited (Cause E004 of 2021) [2023] KEELRC 3344 (KLR)", Case Analysis (2023). Statement of Claim dated 4th March 2020. Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2023/3344/eng@2023-12-21
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.