The Geothermal Development Company (GDC) has asked the Employment and Labour Relations Court in Nairobi to dismiss a petition filed by 62 of its employees, accusing them of seeking to unfairly retain union benefits while enjoying management-level perks.
The dispute arises from the redesignation of the workers from Grade 8 (unionisable staff) to Grade 7 (management). According to GDC, the transition elevated their pay and benefits package, but the employees still want to cling to allowances reserved for union members under the Collective Bargaining Agreement (CBA), including overtime.
Management vs. Union Benefits
In an affidavit filed through lawyer Ceceil Miller, the state-owned energy firm argued that it is a globally accepted human resource principle that managers are not entitled to overtime pay. Instead, GDC explained that it has introduced a call-out allowance for managers required to work beyond regular hours.
On medical coverage, GDC clarified that unionisable staff can cover one spouse and up to six children, while management employees are allowed to include one spouse and four children. However, the company maintained that management enjoys superior benefits for each beneficiary under the medical scheme.
With regard to hardship allowance, the company said it is bound by government directives and the Salaries and Remuneration Commission (SRC). The SRC has regularized the allowance at KSh 12,300, leaving no room for internal variation.
On housing benefits, GDC rejected demands to increase Nakuru staff’s house allowance from KSh 35,000 to KSh 40,000, which is payable to Nairobi employees. The company noted that despite Nakuru’s recent elevation to city status, no SRC circular or gazette notice has approved such an increment.
Employees’ Complaints
The petitioners, led by Evans Kiplagat Kimaiyo, accuse GDC of unfair labour practices and discrimination. They argue that their redesignation to management stripped them of benefits they previously enjoyed as unionisable staff, such as overtime, which has left them disadvantaged compared to peers in similar state corporations.
The employees also contested the medical cover, claiming that the management package is inferior to that of union staff, contrary to GDC’s assertion. They maintain that the changes violate their constitutional rights to equality, fair labour practices, and fair remuneration.
They want the court to either:
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Reinstate them under union terms, or
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Compel GDC to harmonize their allowances and pay with those enjoyed by comparable public sector workers.
GDC’s Warning to the Court
GDC has urged the court to reject the petition, warning that taxpayers would lose money that cannot be recovered if the employees are allowed to draw union benefits while also enjoying management perks.
“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,” the company argued.
The firm also pointed out that the High Court has already suspended new management guidelines issued in May 2024, which formed part of the employees’ demands, making some of their prayers legally untenable.
Case Ongoing
The Employment and Labour Relations Court is expected to hear further arguments before ruling on whether the petition has merit. The outcome is likely to have wider implications for state corporations and how they manage staff transitioning between unionisable and management grades.