COLLECTIVE BARGAINING AGREEMENT

BETWEEN

ALPHA FINE FOODS LIMITED

AND

KENYA UNION OF COMMERCIAL FOOD AND ALLIED WORKERS

New

1.PREAMBLE

Messrs Alpha Fine Foods Limited (herein after referred to as the “Company”) and the Kenya Union of Commercial, Food and Allied Workers (hereinafter referred to as the “Union”) meeting together in a free heart and voluntary association, agreed to enter into a common agreement on matters concerning Terms and Conditions of Employment for all unionisable employees.

2.DEFINITION OF AN EMPLOYEE

In the context of this agreement “employee” shall include unionisable employees, as shall be determined from time to time by the employer and the union in this agreement.

3.PROBATION

When a person is recruited with a view of absorbing such a person into permanent employment, he/she will be required to serve a probationary period of three (3) months. The probation period can be extended by another 3 months if a person does not perform well. During this period either party may dispense with the service of the other by giving 7 days notice or payment of 7 days salary in lieu of notice. Can be extended for a further 3 months.

4.HOURS OF WORK

The normal hours of work shall consist of 45 hours spread over 6 days of the week, however, Security Guards will work 52 hours spread over 6 days in a week.

5.OVERTIME

Overtime will be payable when an eligible employee performs official duties in excess of the scheduled working hours.

Drivers to get a fixed allowance of Shs.800/- per month. Turnboys to get a fixed allowance of Khs.650/- per month.

When authorized overtime is performed an employee will be paid at the following rates:

(i) After normal working hours at the rate of one and half the normal hourly rate.

(ii) On public holidays and rest days at twice the normal hourly rate.

6.DISCIPLINE

(a) Warning System

An employee whose work or conduct is unsatisfactory or who otherwise commits a misconduct which does not warrant dismissal he/she shall be warned three (3) times in writing and the following procedures shall apply:

(i) The first warning shall be entered into the employee’s record and the shopsteward shall be notified

(ii) The second and third warnings shall be copied to the Branch Secretary of the Union.

If an employee who has already received three warnings commits a fourth offence, his/her employment may be terminated.

(b) Absenteeism

An employee who absents himself/herself from duty without leave for more than 11 consecutive days will be regarded as having forfeited his appointment.

(c) Suspension

An employee to whom proceedings for dismissal have been taken, if the results of the proceedings are considered to warrant dismissal, may be suspended.

An employee who is suspended shall be entitled to half-month salary for the period on suspension. Such an employee shall not remain on suspension for a period exceeding two months. If he/she is proved innocent, his/her suspension will be lifted and he/she will be paid the remaining half-month’s salary. If he/she is found guilty he/she will be dismissed.

(d) Lifting of Suspension

(i) Where suspension is ordered on the basis of police court process and the employee has been acquitted or police have withdrawn proceeding, suspension shall be lifted.

(ii) An employee acquitted of a criminal charge in any court shall not be dismissed or otherwise punished on any charge for which he/she has been acquitted.

(iii) Suspension shall similarly be lifted where a review of the circumstances or fresh facts come to light which suggest that the suspension is no appropriate.

(iv) Where suspension is lifted any part of the employee’s salary which has been withheld during the period of suspension shall be reinstated/restored.

7.TRAVELLING AND ACCOMMODATION ALLOWANCE – UPCOUNTRY

Drivers and turn boys will be paid travel and accommodation allowance which includes overtime if they travel up country.

DriversKshs.1,600/- per night

TurnboysKshs.1,300/- per night

The drivers and turn boys who travel upcountry will not fall under Clause 4 and 5 by virtue of the above payment.

8.LEAVE TRAVELLING ALLOWANCE

An employee proceeding on annual leave shall be paid a leave travelling allowance of Kshs.3000/- per year before proceeding on such leave.

9.HOUSE ALLOWANCE

The house allowance is hereby increased by 15% of an individual’s existing house allowance.

10.ACTING/SPECIAL DUTY ALLOWANCE

(i) An employee who is required to take full responsibility for the work of an employee on a higher grade than his/her own will be entitled to acting allowance – equivalent to the full difference between his/her own salary and the minimum of the salary scale attached on the higher grade. The acting appointment must be authorized in writing and the employee must confirm in writing.

(ii) Acting appointment will normally be done during short periods of illness or other approved causes exceeding two weeks. After two weeks acting, appointment shall be confirmed in writing.

(iii) An employee drawing acting allowance for acting in a higher appointment is eligible for travelling privileges or other allowances at the rates applicable to be minimum salary of the post in which he/she is acting, but not house allowance.

(iv) Acting Allowance becomes payable from the date on which an employee takes over the duties of his/her acting appointment up to and including the day prior to the date on which he/she formally hands over.

(v) An officer acting on a higher grade should be confirmed within seven (7) months if the vacancy is not filled.

11.ANNUAL LEAVE

(i) An employee shall be eligible for annual leave at the commencement of the “leave year” save for newly appointed employees who will be required to complete a minimum of three months before being granted proportionate leave.

(ii) An employee shall be entitled to 26 (twenty six) working days annual leave per year exclusive of Sundays and gazetted public holidays.

(iii) Annual leave shall not be accumulated unless prior written approval of the Managing Director has been obtained, provided that any leave carried forward shall not be more than one-half of the annual leave entitlement.

12.MATERNITY LEAVE

(i) A female employee who is required to be absent from duty on account of child birth shall be entitled to 3 months maternity leave with full pay and that she shall not forfeit her annual leave.

(ii) A male employee shall be granted 2 weeks paternity leave.

13.COMPASSIONATE LEAVE

An employee will, where circumstances call, be eligible to 7 days leave on compassionate grounds by prior arrangement with the Company or shall be given 7 days which shall be offset against his/her annual leave.

14.SICK LEAVE

On completion of probation, an employee shall be eligible to sick leave upto 65 days with full pay and and a further 65 days with half pay subject to production of a certificate granting such incapacity signed by a qualified medical practitioner approved by the employer.

15.UNIFORMS/PROTECTIVE CLOTHING

The Company shall provide two pairs of suitable uniforms and protective clothing to employees who require them for the performance of their duties. The Company shall be responsible for washing them. The uniforms wil be worn at al times as required. Any loss of the uniforms/protective clothing due to the negligence of the employee shall be borne by him/her.

16.TERMINATION OF EMPLOYEMENT

Termination of employment shall be by either party giving notice or one month’s salary in lieu of such notice as follows:

1-5 years -one month’s notice

Over 5 years-2 month’s notice

17.REDUNDANCY/RETRENCHMENT

Where an employee is terminated on account of redundancy/retrenchment the following principles shall apply:-

(a) The Union shall be informed of the reason for the extent of the intended redundancy/retrenchment.

(b) The principle of “Last in First Out” shall be adopted in the particular category of employees affected subject to all other factors such as skill, merit, ability and reliability being equal.

(c) The redundant/retrenched employees shall be entitled to:

1-5 years -one month in lieu of notice

Above 6 years-two months in lieu of notice

(d) Any leave and/or allowance due to any employee declared redundant/retrenched shall be paid for in cash.

(e) An employee declared redundant/retrenched shall be entitled to severance pay at the rate of 30 (thirty) days pay for each completed year of service.

18.GRATUITY

(a) An employee whose continuous employment is terminated or retires after three (3) continuous years of service shall be entitled to gratuity payment at the rate of 26 (twenty-six) days salary for each completed year of service.

(b) An employee who retires at the age of 60 (sixty) years or on medical ground shall be entitled to gratuity payment as per (a) above.

19.FUNERAL EXPENSES

Where an employee dies in service, the company shall provide the following:

(i) Transport of the body to final place of burial and determined by the family of the deceased’s employee.

(ii) Coffin

(iii) Shillings Twenty thousand (20,000/-) only for other funeral expenses.

20.MEDICAL CARE

Medical treatment rules to be followed.

21.COLD ROOM ALLOWANCE

An employee required to work in the cold room will be entitled to an allowance of Kshs.85 (Eighty Five) per day and shall be provided with a packet of milk.

22.TRANSPORT

An employee shall be paid transport of Kshs.68/- (Shillings Sixty Eight) per day.

23.CASUAL/CONTRACT WORKER

To follow the new labour laws (Employment Act).

24.AGENCY FEE

The provisions of Section 49 of the Labour Relations Act, 2007 shall apply.

25.SHOPSTEWARDS RECOGNITION

It is recognised that shopstewards as the medium between the unionisable employees and the company will meet respective manager, head of department or director over any grievance or suggestion.

The shopsteward will be given permission to attend union functions upon the union’s one week’s written notice of request.

26.BASIC MINIMUM WAGES

Basic Minimum 7% first year and 7% 2nd year.

Group 1 1st May 2011 1st May 2012
Cleaner and General Worker 8,117.02 9,180.40
Cold Room Attendant 8,766.50 9,915.00
Trimmer 8,766.50 9,915.00
Vehicle Attendant 8,766.50 9,915.00
Machine Attendant 9,199.90 10,405.00
Charge Hand 7,720.00 9,180.00
Supervisor 8,766.50 9,915.00
Deboner (Butcher) 10,502.00 11,879.00
Medium Truck Driver 13,778.40 15,583.40
Cars and Light Vehicle Driver 10,955.79 12,391.00

GENERAL WAGE INCREASE

1st year : 10% first year

2nd year : 10% second year

27.EFFECTIVE DATE AND DURATION

This agreement shall be effective from 1st May 2012 and shall remain in force for a period of two (2) years after which it shall continue to be in force until reviewed by both parties.

SIGNED FOR AND ON BEHALF OF THE COMPANY

……………………………………………………………..

MANAGING DIRECTOR

SIGNED FOR AND ON BEHALF OF THE UNION

……………………………………………………..

GENERAL SECRETARY

………………………………………………….

CHIEF SHOPSTEWARD

IN THE PRESENCE OF:

…………………………………………………….

L.W. KARIUKI

HEAD OF INDUSTRIAL RELATION SERVICES

FEDERATION OF KENYA EMPLOYEE

DATED AT NAIROBI THIS …………….. DAY OF ……………. 2012

/jan

KEN Alpha Fine Foods Limited - 2012

Start date: → 2012-05-01
End date: → 2014-04-30
Name industry: → Manufacturing, Retail trade
Name industry: → Manufacture of food products
Public/private sector: → In the private sector
Concluded by:
Name company: →  Alpha Fine Foods Limited
Names trade unions: →  COTU - Kenya Union of Commercial Food and Allied Workers

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 50 %
Maximum days for paid sickness leave: → 130 days
Provisions regarding return to work after long-term illness, e.g. cancer treatment: → 
Paid menstruation leave: → No
Pay in case of disability due to work accident: → No

HEALTH AND SAFETY AND MEDICAL ASSISTANCE

Medical assistance agreed: → No
Medical assistance for relatives agreed: → No
Contribution to health insurance agreed: → No
Health insurance for relatives agreed: → No
Health and safety policy agreed: → No
Health and safety training agreed: → No
Protective clothing provided: → 
Regular or yearly medical checkup or visits provided by the employer: → No
Monitoring of musculoskeletal solicitation of workstations, professional risks and/or relationship between work and health: → 
Funeral assistance: → Yes

WORK AND FAMILY ARRANGEMENTS

Maternity paid leave: → 13 weeks
Maternity paid leave restricted to 100 % of basic wage
Job security after maternity leave: → No
Prohibition of discrimination related to maternity: → No
Prohibition to oblige pregnant or breastfeeding workers to perform dangerous or unhealthy work: → 
Workplace risk assessment on the safety and health of pregnant or nursing women: → 
Availability of alternatives to dangerous or unhealthy work for pregnant or breastfeeding workers: → 
Time off for prenatal medical examinations: → 
Prohibition of screening for pregnancy before regularising non-standard workers: → 
Prohibition of screening for pregnancy before promotion: → 
Facilities for nursing mothers: → No
Employer-provided childcare facilities: → No
Employer-subsidized childcare facilities: → No
Monetary tuition/subsidy for children's education: → No
Paid leave per year in case of caring for relatives: → 7 days
Paternity paid leave: → 14 days

EMPLOYMENT CONTRACTS

Trial period duration: → 180 days
Part-time workers excluded from any provision: → 
Provisions about temporary workers: → 
Apprentices excluded from any provision: → 
Minijobs/student jobs excluded from any provision: → 

WORKING HOURS, SCHEDULES AND HOLIDAYS

Working hours per week: → 45.0
Working days per week: → 6.0
Paid annual leave: → 26.0 days
Paid annual leave: → 4.0 weeks
Rest period of at least one day per week agreed: → Yes
Provisions on flexible work arrangements: → 

WAGES

Wages determined by means of pay scales: → No
Wages specified according to skill level: → 0
Wages specified according to job title: → 1
Provision that minimum wages set by the government have to be respected: → No
Adjustment for rising costs of living: → 0

Wage increase

Wage increase: → 10.0 %

Extra payment for annual leave

Extra payment for annual leave: → KES 3000.0

Premium for overtime work

Premium for overtime work: → KES 650.0 per hour overtime

Allowance for commuting work

Allowance for commuting work: → KES 68.0 per month

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
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