The dismissal of Betsy Mugamba, the former chief operations officer of Sanyu FM in 2020 was lawful and justified, the Industrial Court has ruled.
This bring to an end a five-year legal battle that arose from the 2020 staff strike over Covid-19 pay cuts.
Justice Anthony Wabwire Musana, delivering judgment, said the radio station followed the law both procedurally and substantively in sacking Mugamba, who had served the company for 27 years.
Mugamba joined Sanyu FM in December 1993 as a marketing executive and rose to become Chief Operations Officer in 2005. During the Covid-19 lockdown in 2020, the station, decided to cut salaries of staff by 25% to stay afloat since rvenues had declined.
On June 5 2020, 27 employees led by Mugamba, rejected the pay cut and stopped working. The station later accused her of inciting and participating in an unlawful strike, which disrupted broadcasts and hurt the brand.
On August 19, 2020, Mugamba was suspended, and after three disciplinary hearings in August and September, she was summarily dismissed on September 25, 2020.
She sued the station, claiming unfair and unlawful termination and seeking more than Shs 792 million in damages for lost income and emotional distress.
Mugamba’s defence
Through her lawyer, Anthony Bazira of Byenkya, Kihika & Co. Advocates, Mugamba argued that the dismissal was unfair, saying she never incited a strike but only showed solidarity with colleagues.
She claimed the pay cut was imposed without staff consultation and that she had, in fact, continued working during the lockdown.
She told the court that she signed a letter protesting the salary cuts “in solidarity” with staff but had not stopped working.
Her lawyer said the disciplinary process was flawed, alleging that she was ambushed with unclear charges and denied a fair chance to prepare her defence. Bazira cited several cases to argue that she was entitled to damages for procedural bias, lack of proper notice, and absence of an appeal mechanism within the company.
“The investigation relied on a PowerPoint presentation and hearsay which fell short of credible evidence,” Bazira argued.
Sanyu FM countered therough their lawyers Elias Matovu and Shafic Mutesasira of Mugisa, Namutale & Advocates. They maintained that Mugamba’s dismissal was lawful, arguing she was a senior manager responsible for ensuring smooth operations, not for joining a strike.
They told the court that Mugamba’s actions constituted gross misconduct and a breach of trust, saying she “failed to persuade staff to return to work” and instead endorsed an illegal strike that damaged the station’s reputation.
The management’s investigation, led by consultant Dr Joel Isabirye, found that the strike caused “severe brand damage” and identified Mugamba as one of the key instigators.
The lawyers said she was given enough time, seven days’ notice, to prepare for the disciplinary hearing and was allowed legal representation and cross-examination of witnesses.
“She was given a fair hearing. The process met all legal requirements under Section 65 of the Employment Act,” Sanyu FM’s lawyers argued.
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In trying to reach a fair and objective outcome, the Industrial Court examined two key issues: whether the dismissal was fair and whether Mugamba was entitled to compensation.
Justice Musana and a panel of three members found that the disciplinary process was fair. Mugamba had been properly informed of the charges, given adequate notice, and allowed to defend herself.
The court also ruled that the strike was unlawful, as staff had not notified the Labour Officer as required by law.
Since Sanyu FM was classified as an essential service provider during the Covid-19 lockdown, court said any strike without notice violated the Labour Disputes (Arbitration and Settlement) Act.
“The strike which the claimant joined by appending her hand to the joint letter was unlawful,” Musana wrote. “The respondent was justified in commencing disciplinary proceedings against her.”
The court said Mugamba’s position as chief operations officer carried a higher duty of trust and responsibility. By signing the strike letter, she breached that trust, even if her intent was to support staff.
“As a manager, the eyes and ears of management, she was expected to represent her employer’s interests,” Justice Musana said. “By endorsing an unlawful strike, she breached the duty of trust and confidence owed to her employer.”
The court concluded that Sanyu FM had “genuine and reasonable grounds” to dismiss Mugamba and that she was not entitled to any compensation or damages.
However, Musana and the panel ruled that each party should bear its own costs.
