Kenya Plantation & Agricultural Workers’ Union v Roseto Flowers [2013] eKLR

Key Facts

Issues

• Issue No. 3: What is the effect and scope of section 80 of the Labour Relations Act, 2007 in event of a prohibited strike. The court analyzed section 80's provisions regarding disciplinary action and payment entitlements for unlawful strikes, emphasizing due process requirements for employee dismissals and rejecting the ultimatum principle as incompatible with Kenya's legal framework.
• Issue No. 1: Whether the strike of 22.10.2011 was lawful. The court examined if the strike related to a trade dispute resolved through conciliation as required by sections 76 and 78 of the Labour Relations Act. The dispute arose from arrests of employees following an alleged assault on a manager, with the claimant arguing the strike was a response to employment-related reforms in HR and the respondent asserting it was an individual criminal matter.
• Issue No. 4: Whether the claimants are entitled to the remedies as prayed for. The court addressed the validity of the claimant's memorandum of claim despite lack of verifying affidavit, ultimately ruling in favor of the claimants for wrongful dismissal, compensation (6 months gross wages), terminal benefits, service certificates, costs, and interest. The court applied principles of substantive justice despite procedural objections raised by the respondent.
• Issue No. 2: Whether the principle of ultimatum applied in this case as opposed to the rules of natural justice. The respondent argued collective misconduct justified an ultimatum-based disciplinary approach (as per South African jurisprudence), while the claimant emphasized Kenya's constitutional and statutory requirements for individualized disciplinary procedures under sections 41 and 45 of the Employment Act. The court held Kenya's legal framework does not recognize the ultimatum principle for strikes.

Holdings

• The court held that the ultimatum principle does not apply in Kenya; employers must follow rules of natural justice as per constitutional and statutory provisions when dealing with unlawful strikes. Collective punishment via ultimatum violates fair procedure under Kenyan law.
• Section 80 of the Labour Relations Act requires employers to follow due process before imposing disciplinary actions, including dismissal, for prohibited strikes. Primary punishment is withholding payments during strikes, while dismissal requires individual hearings and justification.
• The court ordered the respondent to pay terminal benefits, including 6 months' wages, and provide certificates of service to the affected employees. The summary dismissal of over 100 workers was declared wrongful and unfair, with compensation adjusted from the maximum claim of 12 months to 6 months.
• The court found that the strike of 22.10.2011 was unlawful because it did not follow the required conciliation process under the Labour Relations Act, 2007. A trade dispute existed due to the arrest of employees and reforms in the Human Resource office, but the strike bypassed statutory conciliation requirements.

Remedies

• The court mandated that the respondent deliver certificates of service to each affected employee by August 1, 2013.
• The court required the claimant to compute the terminal benefits and serve them on the respondent by July 5, 2013, with the respondent allowed to file objections by July 12, 2013 for confirmation.
• The court declared that the summary dismissal of Edward Mogaka and over 100 other employees by Roseto Flowers was wrongful and unfair.
• The court ordered Roseto Flowers to pay each affected employee full terminal benefits, including one month's notice in lieu of pay, days worked, overtime, annual leave due, and 6 months of gross monthly wages as compensation for the unfair termination.
• The respondent was ordered to pay the confirmed dues by October 1, 2013, and if not, interest would be charged at court rates from the judgment date until full payment.
• The respondent was ordered to cover the costs associated with the court case.

Legal Principles

Precedent Name

• Shankar Saklani –Versus- DHL Global Forwarding (k) Ltd
• Kenya Union of Commercial Food & Allied Workers –Versus- Delmonte (K) Limited
• David Masilela and Others -Versus- Reinhardt Transport (Pty) Ltd and 3 Others
• Steel Mining and Commercial Workers Union, H Seutane and Others –Versus- Brano Industries (Pty) Limited and 2 Others
• Kenya Plantation Workers Union –Versus- Plantation Plants (K) Limited

Cited Statute

• Industrial Court Act, 2011
• Labour Relations Act, 2007
• Employment Act, 2007
• Constitution of Kenya

Judge Name

Passage Text

• The court finds there was a trade dispute within the definition. However, the strike took place without the process of the trade dispute being unresolved in reconciliation process under the Act or the conciliation as may have been agreed between the parties in the collective agreement.
• The court holds that the string that flows throughout our constitutional and statutory regime is that employers must uphold due process in a fair procedure... the court may not coin an interpretation as to apply it in cases of strikes in Kenya's employment and labour relations.
• The court awards 6 months gross monthly wages as compensation... taking into account losses incurred by the respondent, service rendered, and the anguish suffered by employees.