KAMPALA.The Industrial Court in Kampala has upheld the dismissal of former Sanyu FM Chief Operations Officer (COO), Betsy Mugamba, ruling that her termination was lawful.
This came after Mugamba participated in what the court described as an “unlawful strike” during the COVID-19 lockdown.
In a detailed judgment delivered by Justice Anthony Wabwire Musana, sitting with other panelists, Amos Lapenga, Susan Nabirye and Dawn Oling Kerjew, the court ruled that Mugamba’s dismissal complied with both procedural and substantive fairness under the Employment Act.
The contract of Ms Mugamba, who had worked with the radio station for 27 years was terminated on September 25, 2020, after management accused her of inciting staff to strike, disrupting operations, damaging the Sanyu FM brand and neglecting her duties.
Justice Musana observed that the dispute stemmed from the station’s decision to implement salary cuts in May 2020 amid declining revenues. Ms Mugamba, then COO, opposed the salary reduction and later signed a letter with 24 staff members rejecting the cuts and declaring an immediate withdrawal of labour.
“The evidence does not show that there was a collective agreement in place or that the Labour Officer had referred the matter to court. There was neither notice to the respondent nor a report made to the labour officer,” the court noted.
Citing Sections 29 and 35 of the Labour Disputes (Arbitration and Settlement) Act, the court held that any industrial action by essential service providers—like radio broadcasters during the COVID-19 lockdown—required advance notice and approval from a Labour Officer.
“The strike would not fall under the protected strike category for which dismissal or other disciplinary sanctions would be prohibited…The 5th June 2020 strike was unlawful within the meaning of the law,” Justice Musana ruled.
Managerial Responsibility
The court found that Mugamba’s senior managerial role aggravated her culpability. As COO, she was expected to uphold company policies and prevent disruption.
“While she testified that she acted in solidarity with her colleagues, the unintended consequence of her endorsement of an unlawful strike constituted a fundamental breach of her employment contract,” the judge stated.
Quoting comparative case law, the court emphasized that managers and senior executives are held to a higher standard of trust and loyalty. “As Chief Operations Officer, she was the eyes and ears of management. Her participation in the strike undermined the employer’s confidence and destabilized operations.”
Addressing claims that Mugamba was ambushed and denied a fair hearing, the court found otherwise. It noted that she was given a written suspension letter on August 19, 2020, and sufficient notice of her disciplinary hearing scheduled for August 26.
“The claimant had seven clear days to prepare for the disciplinary hearing. She was represented by counsel and given the opportunity to cross-examine witnesses,” Justice Musana said.
The court dismissed arguments that the absence of an appeal process rendered the procedure unfair, observing that “the Employment Act does not explicitly require an employer to provide for the right of appeal.”
It further upheld the impartiality of the disciplinary process, which was chaired by Advocate Sheila Namahe.
“Outsourcing the chairpersonship of disciplinary proceedings to an independent advocate ensured fairness and was not antithetical to due process,” the judgment read.
Having found that Sanyu FM followed lawful procedures and had valid grounds for dismissal, the Industrial Court concluded that Mugamba’s summary dismissal was justified.
“For the reasons set out above, we find that the Respondent was procedurally and substantively fair,” Justice Musana ruled, dismissing Mugamba’s claim in its entirety.
Ms Mugamba had filed a labour reference seeking a declaration that her dismissal was unfair, claiming that she was victimised for opposing unilateral salary cuts and that she never participated in any illegal strike.
Through her lawyers, she had sought for Shs 792 million in salary arrears, damages and severance pay.
Her employer, Sanyu FM (2000) Ltd, maintained that Mugamba led an unlawful strike after rejecting a 25% salary reduction that management introduced in response to the pandemic’s financial effects. The company said her conduct amounted to gross misconduct and a fundamental breach of contract.