GDC asks court to dismiss petition of 62 employees with 'selfish agenda'

The company said the employees, who were redesignated from Grade 8 (unionisable staff)to Grade 7 (management), now want to cling to allowances reserved for union members under the Collective Bargaining Agreement (CBA), such as overtime, while still pocketing higher salaries, house allowance, and commuter benefits given to management.

In its affidavit, GDC argues that it is standard human resource practice worldwide that management staff are not entitled to overtime pay. Instead, the company says it  has introduced a call-out allowance for managers who work beyond normal hours.

The state-owned firm has also defended its medical scheme, explaining that while unionisable employees can cover a spouse and six children, management staff are entitled to fewer dependents a spouse and four children but with superior benefits for each beneficiary.

On hardship allowance, GDC argues  it is bound by government directives and the Salaries and Remuneration Commission (SRC), which has regularized the allowance at Ksh.12,300.

The company through lawyer Ceceil Miller further notes that there has been no gazette notice or SRC circular authorizing an increase in Nakuru staff’s house allowance from Ksh.35,000 to the Ksh.40,000 payable to Nairobi employees, despite Nakuru’s elevation to city status.

The company added that the High Court has already suspended new management guidelines issued in May 2024 making some of the employees’ prayers legally untenable.

“The petitioners want to retain union benefits while enjoying management privileges and at the same time block new graduates with similar qualifications from earning equally,” GDC said, warning that taxpayers risk losing money that cannot be recovered if the petition succeeds.

The workers, led by Evans Kiplagat Kimaiyo, had earlier sued the company accusing it of unfair labour practices and discrimination.

 They argue that their redesignation to management stripped them of allowances they previously enjoyed under union terms, leaving them disadvantaged compared to their peers in similar state corporations.

They also faulted the company’s medical scheme, claiming that management cover is inferior to that of unionisable staff, and insisted that the changes breached their constitutional rights to equality, fair labour practices, and fair remuneration.

The petitioners want the court to either reinstate them to union terms or compel GDC to harmonize their pay and allowances with those enjoyed by other public sector workers in comparable grades.

The case is currently pending before the Employment and Labour Relations Court in Nairobi.