62 workers sue GDC over allowances as company pushes for case dismissal
GDC told the court it had introduced a call-out allowance to compensate managers working beyond regular hours, noting that it is a standard practice globally for management not to receive overtime pay.
The Employment and Labour Relations Court has been asked to throw out a case filed by 62 employees of the Geothermal Development Company (GDC) over pay and benefits.
Through lawyer Cecil Miller, the state-owned firm argued that the workers, who were redesignated from Grade 8 (unionisable staff) to Grade 7 (management), are seeking to retain union benefits while at the same time enjoying perks reserved for management.
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According to the company, the petitioners want to continue earning allowances under the Collective Bargaining Agreement (CBA), including overtime, even though they already receive higher salaries, commuter benefits, and house allowance paid to managers.
GDC told the court it had introduced a call-out allowance to compensate managers working beyond regular hours, noting that it is a standard practice globally for management not to receive overtime pay.
On the question of medical cover, GDC explained that while unionisable employees can include a spouse and six children, managers are limited to a spouse and four children, but with enhanced benefits per dependant.
The firm also defended the hardship allowance, stating it was bound by government policy and the Salaries and Remuneration Commission (SRC), which fixed the rate at Sh12,300.
On house allowance, it maintained that there is no gazette notice or SRC circular allowing an increment for staff in Nakuru from Sh35,000 to Sh40,000 payable in Nairobi, despite Nakuru's elevation to city status.
The company further pointed out that the High Court has already suspended new management guidelines issued in May 2024, making some of the workers' demands legally untenable. It warned that taxpayers risk losing funds that may never be recovered if the petition succeeds.
"The petitioners want to hold on to union benefits while blocking new graduates with similar qualifications from enjoying the same terms," GDC submitted.
The 62 workers, led by Evans Kiplagat Kimaiyo, had earlier moved to court accusing the company of unfair labour practices and discrimination.
They claimed that their reclassification to management stripped them of benefits previously available to unionisable staff, leaving them worse off compared to counterparts in similar state corporations.
They also challenged the medical scheme, alleging that management cover was inferior to that of union staff, and argued that the changes violated their constitutional rights to equality, fair labour practices, and fair pay.
The petitioners are asking the court to either reinstate them to union terms or order GDC to align their pay and allowances with those of other public servants in equivalent grades.
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