Bakery Confectionery Food Manufacturing v Ennsvalley Bakery Limited [2020] eKLR Case Summary

Court
Employment and Labour Relations Court at Nairobi
Category
Civil
Judge(s)
Hon. Justice Byram Ongaya
Judgment Date
October 23, 2020
Country
Kenya
Document Type
PDF
Number of Pages
3

Case Brief: Bakery Confectionery Food Manufacturing v Ennsvalley Bakery Limited [2020] eKLR


1. Case Information:
- Name of the Case: Bakery Confectionery Food Manufacturing and Allied Workers Union v. Ennvalley Bakery Limited
- Case Number: Cause No. 93 of 2019
- Court: Employment and Labour Relations Court of Kenya
- Date Delivered: 23rd October 2020
- Category of Law: Civil
- Judge(s): Hon. Justice Byram Ongaya
- Country: Kenya

2. Questions Presented:
The primary legal issues the court must resolve include:
- Whether the respondent's refusal to issue appointment letters to unionisable employees violates clause 19 of the collective bargaining agreement (CBA).
- Whether the fixed-term contracts issued to some employees contravene the terms of the CBA and the Employment Act.

3. Facts of the Case:
The claimant, Bakery Confectionery Food Manufacturing and Allied Workers Union, filed a memorandum of claim on 14th February 2019, later amended on 31st October 2019, against Ennvalley Bakery Limited. The dispute arose from the respondent's failure to issue appointment letters to 89 unionisable employees after they completed their probationary periods, as mandated by clause 19 of the CBA dated 1st August 2017. The union argued that these employees had been engaged on casual terms for an extended period and demanded that the respondent formalize their employment status. Additionally, the respondent had initiated a redundancy process affecting 23 employees, which was resolved prior to the hearing. The claimant sought various declarations regarding the legality of the respondent's actions and requested the issuance of appointment letters, among other remedies.

4. Procedural History:
The respondent filed a memorandum of reply on 20th January 2020, admitting to the existence of a recognition agreement but contending that the CBA had lapsed and did not require the issuance of appointment letters to casual employees. The respondent argued that the terms of the CBA had not been violated and requested dismissal of the suit. The court considered the submissions from both parties and made findings based on the evidence presented.

5. Analysis:
- Rules: The court examined the relevant provisions of the CBA, specifically clauses 19 and 29, as well as section 37 of the Employment Act, 2007, which concerns the conversion of casual employment into formal contracts after certain conditions are met.
- Case Law: The court referenced previous cases that establish the enforceability of collective agreements and the rights of employees under similar circumstances, although specific case citations were not detailed in the judgment.
- Application: The court determined that the requirement to issue appointment letters had become incorporated into the employees' contracts of service, despite the CBA not being registered. The court found that clause 19 was applicable to employees who met the criteria outlined in clause 29(b) of the CBA. However, it also concluded that the fixed-term contracts were lawful unless proven otherwise, and the claimant failed to provide sufficient evidence of underpayment or improper employment terms.

6. Conclusion:
The court ruled that the respondent must issue appointment letters to any of the 66 grievants who met the criteria outlined in clause 29(b) of the CBA, reflecting their employment status after completing the probation period. The court dismissed the remaining claims, including those for underpayment, and ordered each party to bear their own costs.

7. Dissent:
There were no dissenting opinions recorded in the judgment.

8. Summary:
The court's decision underscored the importance of adhering to the provisions of collective bargaining agreements and the rights of employees in relation to their employment contracts. While the court recognized the need for appointment letters for qualifying employees, it also affirmed the legitimacy of fixed-term contracts unless proven to violate the CBA or the law. This case highlights the complexities of employment law in Kenya, particularly concerning the enforcement of collective agreements and employee rights.

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