An Agreement made this ……… day of ………………………………. 2015 between Elimu Co-operative Savings and Credit Society Limited (Herein referred to as the Employer) and Banking, Insurance & Finance Union (Kenya) (Herein referred to as the Union).
1. PREAMBLE
This Agreement shall cover all unionisable employees categorized as
follows: -
•Cleaners/Messengers- ....................................E 1
•Senior Cleaners/Senior Messengers- ............E 2
•Clerks-.............................................................. E 3
•Senior Clerks-.................................................. E 4
•Accounts clerks -............................................. E 5
•Accounts Assistants- .......................................E 6
2. DURATION AND EFFECTIVE DATE OF AGREEMENT
This Agreement shall run for a period of twenty-four (24) months commencing from 1stApril 2014 to 31st March 2016 provided than any time after January either party may give to the other at least two (2) months notice in writing of its desire for this Agreement to continue in force for a further period to be agreed upon, or of its intention to terminate the Agreement or alter any clause in the Agreement. In the later event, parties will enter into negotiations on the terms and conditions of a new Agreement and until such times as this is finalized the present Agreement shall continue in force.
3. PROBATIONARY PERIOD
All employees shall from engagement serve a probationary period of six (6) months and upon satisfactory completion of the same shall be confirmed in their respective positions.
4. HOURS OF WORK
(a) All unionisable staff shall work for five (5) days a week.
(b) They will work for eight (8) hours a day.
(c) The total working hours in a week shall be forty (40) (exclusive of lunch breaks).
Hours of duty shall be as follows: -
Monday to Friday..........8.00 a.m. – 1.00 p.m.
Lunch Break..................1.00 p.m. – 2.00 p.m.
Afternoon........................2.00 p.m. – 5.00 p.m.
5. BREASTFEEDING MOTHERS
Breastfeeding mothers shall be given extra time off during lunch break to breastfeed their babies.
6. OVERTIME
Overtime shall be paid for hours worked by the unionisable staff in excess of the prescribed hours as per clause four (4) of this Agreement. The rate of overtime shall be calculated at the rate of one and a half (1½) hours for week days and two (2) hours for Saturdays, Sundays and Public holidays for each excess hour based on the basic pay.
No overtime worked by the unionisable employees shall be computed to enable the employee to take off-duty in lieu of payment.
7. PROMOTION
(a) (i) The promotions of all employees shall be based on merit, skill, Academic/Professional Qualifications. Any opening for promotion shall be advertised internally and externally and interviews shall be conducted.
(ii) Serving officer shall be given priority.
(b) When any unionisable employee is promoted, he/she should be given an increase of not less than the difference in the starting scale of the category he/she is being promoted to.
8. TERMINATION OF EMPLOYMENT AFTER WARNING
PROCEDURE
(i) An employee who commits an offence shall be given a warning letter, which shall remain valid for a period of six (6) months.
(ii) If within the six (6) months period the employee commits a similar offence, he/she shall be served with a second warning letter.
(iii) Where an employee completes six months from the second warning without any further offence, the previous warning letter shall be disregarded.
• If within the six months period, the employee commits another similar offence, he/she shall be issue with a third warning letter.
• If within the same period of six months the employee commits a similar offence, he/she shall be come liable for interdiction.
9. INTERDICTION/SUSPENSION FROM DUTY
Definition:This means that an employee is stopped from exercising the powers and Functions of his/her office and does not therefore attend duty. An employee on interdiction:
(a) (i) Shall be paid half salary
(ii) Shall report as directed by the immediate supervisor
(iii) The period of interdiction shall not exceed three months during which period the employee shall be summoned to appear before the General Manager to defend him/herself against all the charges preferred against him/her as contained in all the warning letters.
If the employee who is on interdiction is found innocent, the interdiction/suspension shall be lifted and he/she shall be paid the balance that had been deducted from his/her full salary for the period he/she was on interdiction.
(b) If an employee is found guilty by the employer and depending on the magnitude/seriousness of the offence, he/she shall be subjected to any of the following three punishments:
(i) Warning:He/she shall be warned and allowed to continue working.
(ii) Suspension:He/she shall be suspended for a period not exceeding six months after which he/she shall be reinstated in employment with full pay.
Note: an employee on suspension shall not be paid any salary.
(iii) Termination of employment
Where the Central Management Committee is satisfied beyond any reasonable doubt that the offences are serious and thus warranting severe punishment, services of such an employee shall be terminated.
Note: A copy of each warning letter and a copy of termination letter is issued to an employee in accordance with the provision of the above section shall be sent by the employer to the Secretary General of the Union (BIFU).
(b) NOTICE OF TERMINATION
(i) If the Employer wishes to terminate the services of an employee, Elimu Sacco shall give the employee one (1) month’s salary in lieu of notice. On the other hand, any employee wishing to terminate his/her services with the Employer, he/she shall give the Employer one (1) month’s notice or pay one (1) month’s salary in lieu of notice.
(ii) If the Employer wishes to terminate the services of an employee who is on probation, the Employer shall give the employee one (1) month’s notice or pay one (1) month’s salary in lieu of notice. An employee serving his/her probation period shall give the Employer one (1) month’s notice of his/her intention to terminate the employment contract or pay one (1) month’s salary in lieu of notice.
(c) TERMINAL BENEFITS
An employee whose services have been terminated shall be entitled to all benefits provided the said employee has completed the probation period.
10. REDUNDANCY AND SEVERANCE PAY
(a) Redundancy is understood to mean the involuntary loss of employment through no fault of the employee concerned, caused either by an excess of manpower or by the financial inability on the part of the Employer to continue paying salaries.
(b) Where it is necessary to terminate the employment of an employee on the grounds of redundancy, the Employer shall give the employee notice in writing of their intention to do so and pay severance as follows: -
(i) 1 year – 5 years of service shall be given one (1) month’s notice or be paid one month’s salary in lieu of notice and in addition be paid one month’s salary for each completed year of service.
(ii) Five (5) years – Ten (10) years shall be given two (2) months working notice or be paid two (2) months salary in lieu of notice and in addition be paid two (2) months salary for each completed year service as severance pay.
(iii) Ten (10) years and above shall be given three (3) months working notice or be paid three (3) months salary in lieu of notice and in addition be paid three (3) months salary for each completed year of service as severance pay.
(iv) All retirement benefits shall be paid to him/her as if he/she had resigned voluntarily.
(v) The union shall be informed of the reason for and the extent of intended redundancy.
(vi) The principle to be adopted shall be that of “last in, first out” subject to all other factors such as skill, merit, ability and reliability being equal.
(vii) Should an employment opportunity arise, the Employer shall give preference to the persons laid off as a result of redundancy provided that the vacancy that has arisen is of the similar grade that the said person was holding prior to his/her being laid off.
(viii) Where the employee is entitled to their benefits, e.g. leave, leave pay, e.t.c. a pro-rata compensation shall be made at the time of discharge on account of redundancy.
(ix) Salary for the purpose of calculating pay shall be the salary of an employee on the date the employee ceases to be in the employment.
(x) The effective date of these provisions shall be deemed to be the date of engagement of the employee.
11. RETIREMENT
(a) The Employer shall allow any employee wishing to retire early to do so voluntarily at the age of 50 years. This retirement shall be treated as if the employee has retired at the age of 60 years and therefore, such an employee shall be entitled to all the retirement benefits.
(b) All employees shall retire at the age of 60 years.
12. RETRENCHMENT AND VOLUNTARY EARLY RETIREMENT
The Employer shall consult with the Union in case there is need for Voluntary Early Retirement or Retrenchment.
13. MERIT INCREMENT
A unionisable employee who performs above average in his/her jobs shall qualify for merit increment at the discretion of the Employer.
14. CERTIFICATE OF SERVICE
Every employee shall be given a certificate of service by his/her Employer upon the termination of his/her employment for whatever reasons. Every certificate shall contain only the following details: -
(a) The name and address of the Employer
(b) The name of the employee
(c) The date when employment commenced
(d) The nature and usual place of employment
(e) The date when employment ceased
(f) Such other particulars as may be prescribed e.g. Courses attended. In addition the certificate of service shall contain a statement to the effect that it has been issued without alterations or erasure.
15. LEAVE
(a) (i) Employees serving in grades E1 to E6 shall be entitled to an annual leave of thirty (30) working days every year.
(ii) Employees of the Society shall be expected to take their annual leave entitlement every year.
The onus of applying to take the annual leave rests solely with the employee concerned and as far as possible the employees shall be granted leave on the anniversary date of his/her engagement.
However, due to office exigencies the Employer may arrange a leave roster accordingly upon application by an employee. Any employee wishing to extend his/her authorized leave period must obtain written permission from the General Manager.
(b) ANNUAL LEAVE ALLOWANCE
All unionisable employees proceeding on their annual leave shall be paid leave allowance equivalent to Kshs. 6,000/= every year.
(c) UNPAID LEAVE
Where an employee has exhausted his/her annual leave days and a need arises which requires him/her to be absent from duty, and the reason necessitating such absenteeism does not fall under the other categorized leaves e.g. compassionate leave e.t.c. the employee will qualify for fourteen (14) days leave days without pay unless the Employer at his own discretion decided otherwise.
(d) SICK LEAVE
Any absence from duty due to sickness shall be certified by a qualified medical practitioner and shall be granted as follows:-
(i) The first three (3) months on full pay
(ii) The subsequent four (4) months on half pay
(iii) Subsequent three (3) months without pay
Thereafter the Employer shall review the matter in consultation with the Union.
(e) MATERNITY LEAVE
(i) A female employee shall be entitled to ninety (90) days maternity leave with full pay.
(ii) The time at which maternity leave is taken shall be at the discretion of the employee concerned.
(iii) On expiry of a female employee’s maternity leave as provided for in the law, the female employee have the right to return to the job which she held immediately prior to her maternity leave or to a reasonably suitable job on terms and conditions not less favourable than those which would have applied had she not been on maternity leave.
(iv) No female employee shall forfeit her annual leave entitlement on account of having taken her maternity leave.
(v) A male employee shall be entitled to Paternity Leave of two (2) weeks with full pay when his spouse gives birth.
(f) COMPASSIONATE LEAVE
An application for a compassionate leave will be given sympathetic consideration. Any such leave shall not exceed fourteen (14) working days. Such leave shall not be subtracted from the employee’s annual leave days.
(g) PAID STUDY LEAVE
The Society shall allow staff to attend courses approved by it. An employee on study leave is deemed to be on duty.
16. JOB GRADING
The management and the union shall look into this issue at the shop-floor.
17. ACTING ALLOWANCE
(i) Where an employee is required to carry out the duties of a post of a higher grade than his/her own, he/she shall be entitled to an acting allowance equivalent to the difference between the substantive basic salary of the employee concerned and the current entry point of the salary scale of the higher grade.
(ii) A person acting in a higher grade for a continuous period of six (6) months shall be confirmed in the higher grade provided the position is vacant and meets the qualifications for the post.
(iii) An employee shall be given a letter to the effect that he/she is acting within three (3) days of commencement of such acting.
18. HOUSE ALLOWANCE
House Allowance for all employees shall be increased by 8% 2014/2015 and another 8% 20151/2016across the board effective 1st April 2014 to 31st March 2016.
Grade | 2013/2014 | 2015 | 2016 |
Current | 1st year | 2nd year | |
8% | 8% | ||
E1 | 5,977 | 6,455 | 6,972 |
E2 | 6,241 | 6,740 | 7,280 |
E3 | 6,970 | 7,528 | 8,130 |
E4 | 7,979 | 8,617 | 9,307 |
E5 | 9,581 | 10,347 | 11,175 |
E6 | 10,641 | 11,492 | 12,412 |
19. OWNER OCCUPIER
(i)It was agreed that the Employer shall pay an owner occupier House allowance equivalent to 22% of the capital cost spread over twelve (12) months, subject to a capital ceiling of Kshs. 300,000/= per annum.
(ii) A valuation certificate from a reputable valuer appointed by the Employer.
(iii) This allowance shall only be payable to staff who own and stay in their wholly owned houses.
20. SPECIAL DUTY ALLOWANCE
When an officer does not possess the necessary qualifications and cannot be appointed to act in a higher post but is nevertheless called upon to undertake the duties of that post either in full or in part, for a limited period of time by the appropriate authority, the amount of allowance will be assessed to 2/3 of the difference between an officer’s substantive basic salary and minimum salary of the higher post subject to the allowance not exceeding 25% of his/her substantive basic salary.
21. NATIONAL DAYS
During National Days, e.g. Ushirika Day, the Employer shall provide meals and transport to the employees participating in the event. Meals shall be provided to the concerned employees at the rate provided under clause 25 of this agreement.
22. COMMUTER ALLOWANCE
Where the use of a private car is necessary, commuter allowance shall be paid at the rate of Kshs. 2,200/= per month.
23. SUBSISTENCE ALLOWANCE WHEN TRAVELLING ON DUTY
An employee traveling on duty outside Kenya will be paid subsistence allowances based on the prevailing Government rates per diem.
24. ACCOMMODATION AND NIGHT-OUT ALLOWANCE
An employee of the society when traveling on official duty and is compelled to stay in a hotel shall be refunded a reasonable amount of expenses incurred on production of authentic receipts or be paid per diem at the rate of Kshs. 1,500/= without production of receipts. The Society shall further pay an out of pocket allowance of 10% of the hotel bill.
25. MEALS ALLOWANCE
An employee who due to unavoidable circumstances works during non-working hours shall in addition to overtime be paid meals allowance as follows: -
Kshs.
Lunch - ........700/=
Supper- .......700/=
Breakfast-.... 300=
26. COMPUTER INCONVENIENCES ALLOWANCE
The Society will appropriately provide safety measures and requirements and will remunerate them accordingly.
27. LOANS AND ADVANCES
(a) House Loan
Employees to borrow as the rest of the members of the Society.
(b) Shamba Loan
Employees to borrow as the rest of the members of the Society.
(c) Development Loan
Employees to borrow as the rest of the members of the Society.
(d) Car Loan
(i) The maximum of car loan will be 90 per cent of the officer’s annual basic salary.
(ii) The repayment period shall not exceed 48 months depending on the condition of the car.
(iii) Loan to purchase the motor vehicles shall be advance to an officer who has satisfactorily completed their probationary period.
(iv) The interest on car loans to staff will be charged at the rate agreed upon between the Society and the loan applicant.
(e) Motorcycle Loan
Condition 4 (d) except for condition (d) (ii) above will apply to this type of advance. The amount of such an advance shall not exceed Kshs. 10,000/=. The repayment period shall not exceed 36 months.
(f) Bicycle Loan
Advance to purchase bicycle are subject to the same condition relating to purchase of motor-cycle above. However, the repayment period shall not exceed 18 consecutive months and the amount of advance shall not exceed Kshs. 2,500/=.
(g) Consumer Durable
Unionisable employees shall apply for loans as the rest of the members of the Society.
(h) Salary Advance
The Society shall assist any employee who is in difficulties, which are beyond his/her control by availing him/her a salary advance, which shall be recovered within one (1) year. A request for more than one month’s salary shall be granted by the Society in very exceptional circumstances.
(i) Salary in Advance
An employee may be given his/her salary in advance when proceeding on leave or in certain circumstances beyond his/her control. This advance is recoverable in full from the employee’s salary at the end of the month in which he/she took the advance.
28. MEDICAL
All employee of the Society, their spouses and children shall be entitled to a medical cover provided by the Society as follows: -
Annual limit- Kshs 500,000/=
Accident hospitalization up to Kshs 500,000/= per person per year
Illness hospitalization up to Kshs. 200,000/= per person per year
Funeral and rehabilitation – Kshs. 50,000/= per person
Psychiatric treatment of up to Kshs. 100,000/=
Covers pre-existing, chronic conditions and HIV/AIDs
Option to purchase Accident with Permanent Total Disability of Kshs. 1 million for adults and Kshs. 500,000/= for children.
Road rescue in Nairobi and Mombasa only available at an extra fee.
29. FUNERAL EXPENSES
(a) In event of death of an employee’s spouse or child, the Employer shall contribute an amount not exceeding Kshs. 100,000/= towards the funeral expenses.
(b) In the event of the death of an employee, the Employer shall provide a coffin, transport and make a contribution of amount not less than Kshs. 240,000/= towards the funeral expenses.
(c) The employee’s spouse and children shall also enjoy the benefit of the contributory benevolent fund.
30. GROUP LIFE INSURANCE
(i) The Employer shall maintain a Group Life Insurance Policy on behalf of the employees.
(ii) Sum assured shall be an employee’s 2 years’ Gross Pay.
31. TRAINING
The Society shall train employees on relevant field to their duty recognized courses and approved by the Society and will in addition refund examination fees levied by recognized examination bodies such as KASNEB, KNEC on production of receipts and result slips.
32. UNIFORMS
Drivers, Messengers and Watchmen shall be provided with free uniforms as follows: -
Men Messengers | Lady Messengers | ||
Shirts | 2 | Blouses | 3 |
Jackets | 2 | Skirts | 3 |
Trousers | 2 | Jackets | 2 |
Watchmen | Drivers | ||
Shirts | 2 | Shirts | 2 |
Jackets- | 2 | Jackets- | 2 |
Trousers | 2 | Trousers | 2 |
Helmets | 1 |
These employees shall be provided with one (1) bar soap per month. Raincoats or umbrellas shall be available to the above employees wherever necessary.
33. SALARIES AND WAGES
The current salary structures shall be revised by 8% and 8% for years 2014/2015and 2015/2016 respectively as follows: -
Grade | 2013/2014 | 2015 | 2016 |
Current | 1st year | 2nd year | |
8% | 8% | ||
E1 | 10,283 | 11,106 | 11,994 |
E2 | 12,143 | 13,114 | 14,164 |
E3 | 13,405 | 14,477 | 15,636 |
E4 | 18,179 | 19,633 | 21,204 |
E5 | 22,763 | 24,584 | 26,551 |
E6 | 27,115 | 29,284 | 31,627 |
(ii) In addition, there shall be a General Wage Increase of 8% effective 1st April 2014 to 31st March 2015and another 8% for effective 1st April 2015 to 31st March 2016 to all unionisable employees.
34. PROVIDENT FUND SCHEME
Provident Fund benefits shall be paid as laid down in the trust deed registered by Retirement Benefits Authority (RBA) and shall operate as follows: -
(i) The Employer shall contribute towards the fund for each employee an equivalent of 10% of the employee’s basic salary.
(ii) The employee shall contribute towards the fund and equivalent of 10% of his/her basic salary.
(iii) The fund shall be managed jointly by the Employer and the workers’ representatives through a Board of Trustees.
(iv) On termination of employment, the employee shall be paid both the Employer’s total contribution and his/her contributions. Interest earned by this fund shall be paid to such an employee.
(v) Statements of balance shall be provided annually to every contributing member.
(vi) He/she shall be entitled to his/her contribution including interest and the Employer’s contribution.
35. EMPLOYMENT IDENTITY CARD
All employees shall be issued with an employment identity card. Such a card shall contain the following details: -
(i) Name of Employer
(ii) Address of the Employee
(iii) Employee’s full names
(iv) Employee’s National Identity Card Number
(v) Date of engagement of the employee
36. ANNUAL DINNER
(i) The Employer shall organize an annual dinner when funds are available.
(ii) This get-together will enable Management and employees interact and discuss the events of the year.
(iii) Long service awards shall be given during such occasions if necessary.
37. NATURE/STATUS OF INDIVIDUAL CONTRACT SERVICE (LETTER OF APPOINTMENT)
The letter of appointment shall be in conformity with the Collective Bargaining Agreement (CBA).
38. STAFF CANTEEN
The Employer shall operate a canteen within the Society’s premises to provide workers with meals at subsidized rates.
39. SPORTS
The employer shall encourage workers to participate in sports and in-door games in order to keep fit.
40. GRATUITY
(i) Any unionisable employee who leaves employment for any reason other than gross-misconduct shall be entitled to gratuity compensation at the rate of ten (10) days salary for each completed year of service.
(ii) The salary to be used for computation of gratuity compensation is the salary at the end of the employment contract
SIGNED FOR AND ON BEHALF OF THE ELIMU CO-OPERATIVE SAVINGS & CREDIT SOCIETY LTD.
NAME: EDWIN OTIENO JOSEPH
TITLE: CHAIRMAN
SIGNATURE:_________________________
SIGNED FOR AND ON BEHALF OF BANKING, INSURANCE & FINANCE UNION (KENYA) BY:
NAME: TOM O’ ODERO
TITLE: NATIONAL ORGANIZING SECRETARY
SIGNATURE:_________________________
NAME: ERASTUS M. NDEGWA
TITLE: SHOPSTEWARD
SIGNATURE:__________________________
WITNESSED BY:
NAME: L. W. KARIUKI
TITLE: FEDERATION OF KENYA EMPLOYERS
SIGNATURE:__________________________
SIGNED ON THIS ________ DAY OF _______________________ 2015