EABL chief executive, finance director in High Court to block arrest Saturday

EABL chief executive Charles Ireland (right) and finance director Tracey Barnes at a past press briefing. Top executives of the brewer, including its CEO, have moved to court to stop their arrest and prosecution Saturday for defying the Ministry of Labour on payment of terminal dues. Photo/FILE 

By GALGALLO FAYO

In Summary

• Group managing director and CEO Charles Ireland, finance director Tracey Barnes and supply chain director Christian Von Der Heide had been given until Friday by the ministry to pay 57 workers or face arrest.
• The employees were attached to EABL’s subsidiary Central Glass Industries (CGI) before their transfer to a human resources outsourcing firm, prompting them to seek the help of the ministry to claim their retirement dues from the listed brewer.
• The Ministry of Labour on August 27 found EABL had breached employment laws and indicated the criteria the brewer should use to settle the dues.

Top executives of the East Africa Breweries Limited (EABL), including its CEO, have moved to court to stop their arrest and prosecution Saturday for defying the Ministry of Labour on payment of terminal dues.

Group managing director and CEO Charles Ireland, finance director Tracey Barnes and supply chain director Christian Von Der Heide had been given until Friday by the ministry to pay 57 workers or face arrest.

The employees were attached to EABL’s subsidiary Central Glass Industries (CGI) before their transfer to a human resources outsourcing firm, prompting them to seek the help of the ministry to claim their retirement dues from the listed brewer.

The company objected to ministry’s directive and opted not to appeal the pay order in court, setting up its top executives for arrest and prosecution.

Thursday, the EABL executives moved to the Constitutional Court on grounds that their rights would be infringed in the event of their arrest.

Justice Mumbi Ngugi referred the matter to the criminal division, implying the dispute does not border on constitutional breaches.

This means the brewer’s top managers will have to seek direction from the criminal division to forestall their arrest Saturday.

“Orders restraining the respondents…from causing or effecting the arrest of any of the petitioners directors including Charles Ireland, Tracey Barnes, Christian Von Der Heide, Joe Mureithi and arraigning or charging them in court,” reads the order sought by EABL.

Mr Mureithi is the general manager of CGI, which is owned fully by EABL and manufactures the glass bottles used for packaging beer as well as containers for other companies in East and Central Africa.

The suit has been filed by EABL and CGI and it lists the Commissioner of Labour and Labour Office as the respondents.

The dispute was triggered by the transfer of the workers from CGI to an outsourcing firm Sheer Logic Management via another firm.

The Ministry of Labour on August 27 found EABL had breached employment laws and indicated the criteria the brewer should use to settle the dues.

The ministry said the EABL unfairly terminated the workers’ contract when it transferred them to Philmar Enterprise, which in turn moved them to Sheer Logic.

The brewer claimed that it had sent an objection to the ministry that was not addressed until it received the order to settle retirement dues on October 30 within seven working days.

It was meant to pay the staff annual leave, days worked and not paid, severance pay, and pay in lieu of notice.