Seventy seven former employees of the cash-strapped Kenya
Planters Co-operative Union (KPCU) have moved to court seeking over
Sh349 million in terminal dues.
The former unionisable
employees and administration officers state in their claim that they
were axed from the giant coffee miller by a receiver manager, appointed
by the Kenya Commercial Bank (KCB), which was seeking to recover an
outstanding loan of over Sh643 million.
“The 77 were
retrenched by the receiver and the manager seconded by KCB to KPCU
without termination letters then left without notice nor payment of
terminal dues,” lawyer Titus Koceyo for the claimants states in the case
he filed at the Employment and Labour Relations Court (ELRC).
The KPCU has 21 days to respond to the case failing which “the claim will be heard and determined in its absence.”
Mr
Koceyo says the receiver manager violated the claimants’ constitutional
and labour rights and therefore they should be compensated.
They
are also seeking a declaration that KPCU has breached their fundamental
and constitutional rights besides seeking interests and other reliefs
deemed fit by the court.
KPCU was placed under receivership by KCB over an unpaid loan of over Sh643 million on October 19, 2009.
Unpaid dues
The
claimants who had worked for the giant coffee miller for periods
between 0.52 years and 32.41 years were retrenched by the receiver
manager.
Following a countrywide outcry by farmers over
their unpaid dues from coffee deliveries and other debtors, the
government paid KCB Sh400 million to enable the miller resume
operations.
“KPCU’s receivership status was lifted
after three years on July 4, 2014 then normal operations resumed,” Mr
Koceyo says adding, “ One of the terms revival was among others to
settle any debts owed by creditors including the 77 claimants.”
The
77 say their former employer has breached Article 41(1) of the
Constitution which provides for fair labour practices and that the
“farmer coffee miller owes them a legal obligation to settle their
terminal dues as required under the law.”
The trial date will be fixed by the ELRC registrar.
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