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{
"id": 240382,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/240382/?format=api",
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"type": "speech",
"speaker_name": "Mr. Leshore",
"speaker_title": "The Assistant Minister for Labour and Human Resource Development",
"speaker": {
"id": 349,
"legal_name": "Sammy Prisa Leshore",
"slug": "sammy-leshore"
},
"content": " Mr. Deputy Speaker, Sir, I beg to reply. I am aware that Nalin Nail Works in Ruiru, which had been in business since 1952, was placed under receivership in 1999 by the Kenya Commercial Bank (KCB) limited. The receiver managers, KPMG, proceeded to declare the employees redundant and has never paid their terminal dues to date. July 27, 2006 PARLIAMENTARY DEBATES 2435 My office investigated the matter on 30th May, 2002 and recommended that the redundant employees be paid as outlined below:- (i) Severance and notice pay as per the collective bargaining agreement between the employer and the union. (ii) Those declared redundant by 31st December, 1998, be paid any outstanding salaries in full, up to the date of the redundancy. (iii) The employees who were declared redundant between January, 1999 and 30th September, 1999, be paid any outstanding salaries at one-third of their basic pay as was agreed on by the parties up to the date they were declared so. (iv) Any outstanding housing allowance should be paid in full up to the date the grievants were declared redundant. Mr. Deputy Speaker, Sir, Nalin Nail Works Limited under receivership did not accept our recommendation and the dispute was referred to the Industrial Court on 27th September, 2002, under Case No.79 of 2002. Mr. Deputy Speaker, Sir, on 6th December, 2004, the Industrial Court gave its award that Nalin Nail Works pays workers as follows:- (i) A sum of Kshs3,000 transport allowance promised by the receiver manager pursuant to the agreement. (ii) Up to four months' wages covering the period prior to the declaration of the redundancy. (iii) All their benefits, including severance pay, outstanding pay in lieu of accrued leave, housing and any other allowances for the years of service with the respondent as per the collective bargaining agreement between the parties, save that such sum in total does not exceed 12 months wages of the individual grievant. (iv) All other claims beyond the amounts paid under (iii) above rank at the next level of privilege and immediately after the debenture holder has secured his debt. (v) The aforesaid sum, be paid within 60 days of 6th December, 2004. Mr. Deputy Speaker, Sir, Nalin Nail Works again refused to accept this award and instead referred the dispute to the High Court under Miscellaneous Application No.134 of 2005. It is still pending in court and the affected workers' payment will be known once the matter is heard in full and judgement delivered. Mr. Deputy Speaker, Sir, I am further aware that the factory was later sold by the Kenya Commercial Bank to Devki Engineering through public auction, who re-opened it in August, 2005."
}