Company gets 2 weeks to settle layoffs dispute

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The employment court has given an exporter of medicinal plants two weeks to settle a dispute over the sacking of 30 employees with the workers’ representative.

Vitaplant Kenya Ltd, which grows herbs and other medicinal plants for export, issued a redundancy notice to 30 of its 70-member workforce in February, as the firm said it was facing financial difficulties and needed to restructure its operations.

The Kenya Plantation & Agricultural Workers Union challenged the notice, arguing that it was done in bad faith, and meant to victimise and intimidate its members.

Employment and Labour Relations Court judge Hellen Wasilwa said in the ruling that whereas the employer has the prerogative to determine whether to restructure or not, the process must be done within the law.

“I will, therefore, give consultation a chance and suspend the redundancy situation. The parties will have two weeks to try out their consultations,” said the judge.

The firm said the redundancy was necessitated by the high cost of production and the decision was done under section 40 of the Employment Act by notifying the union of the intended layoffs.

The employees were to be released in two groups of 15 at the start and the end of April.

The company said it was committed to paying the affected employees as required by law.

The union challenged the notice on the basis that the reason given did not meet the threshold to warrant the termination of its members.

The union further claimed the company has never raised any financial issue it was facing, if at all and also that in the notice they did not attach an analysis report in support of its intended sackings.

The court heard that the union requested for a list of affected employees and computation of their dues, which was supplied but the company refused to dialogue between social partners against the spirit of good labour relations.

The Agricultural Employers Association, of which the firm is a member, denied ever signing any Collective Bargaining Agreement (CBA) with the union. It added that out of the 30 employees affected, only one was a member of the union.

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