The state-owned firm argues that the employees are seeking to retain benefits reserved for unionisable staff while simultaneously enjoying the higher salaries and privileges associated with management positions.
GDC defends redesignation of employees
According to court documents, the dispute arose after the employees were redesignated from Grade 8, which is unionisable, to Grade 7 management positions.
Through lawyer Ceceil Miller, GDC argues that the redesignation came with improved salaries, house allowance, commuter allowance, and other management benefits.
However, the company says the employees now want to continue receiving benefits available only under the Collective Bargaining Agreement (CBA), including overtime payments.
GDC maintains that such a position is inconsistent with accepted human resource practices.
Company says managers are not entitled to overtime
In its affidavit, GDC states that management employees are generally not eligible for overtime pay.
Instead, the company says managers who work beyond normal hours qualify for a call-out allowance, which is the applicable benefit for management staff.
The company argues that the petitioners cannot simultaneously enjoy management privileges while demanding union benefits.
Medical scheme differences explained
The company also defended differences in the medical insurance scheme.
According to GDC, unionisable employees are allowed to cover a spouse and up to six children under the medical plan.
Management employees, on the other hand, are limited to covering a spouse and four children but receive enhanced medical benefits for each covered beneficiary.
The company maintains that the two schemes are structured differently and are not discriminatory.
GDC cites SRC guidelines on allowances
On hardship allowance, GDC says it is bound by government policy and directives issued by the Salaries and Remuneration Commission (SRC).
The company states that the hardship allowance remains at Ksh12,300 in line with SRC guidance.
Regarding house allowance, GDC argues that no gazette notice or SRC circular has approved an increase for employees based in Nakuru from Ksh35,000 to the Ksh40,000 paid to employees stationed in Nairobi, despite Nakuru’s elevation to city status.
Company warns of financial implications
GDC further told the court that the High Court has already suspended management guidelines introduced in May 2024, making some of the employees’ requests legally unsustainable.
The company warned that granting the petition could have financial implications for public funds.
According to GDC, taxpayers could suffer losses if the court orders payments that may not be recoverable.
Employees allege unfair labour practices
The petition was filed by 62 employees led by Evans Kiplagat Kimaiyo.
They accuse GDC of unfair labour practices, discrimination, and violating their constitutional rights after redesignating them from unionisable positions to management.
The employees argue that the changes resulted in the loss of allowances and benefits they previously enjoyed under the collective bargaining agreement.
They also contend that the management medical scheme is less favourable than the one available to unionisable staff.
The petitioners claim the restructuring violated their constitutional rights to equality, fair labour practices, and fair remuneration.
Employees seek restoration of benefits
The workers are asking the court to either restore them to unionisable terms or direct GDC to harmonise their salaries and benefits with those enjoyed by employees in comparable grades across other state corporations.
The matter remains pending before the Employment and Labour Relations Court in Nairobi.
