COLLECTIVE BARGAINING AGREEEMENT ON TERMS AND CONDITIONS OF SERVICE FOR UNIONISABLE EMPLOYEES BETWEEN COMMUNICATION WORKERS UNION OF KENYA (COWU) (K) AND TELKOM KENYA LIMITED FOR THE PERIOD 1ST APRIL 2009 TO 31ST MARCH 2011

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1.INTRODUCTION

In accordance with the provision of Paragraph A17 and A18 of the constitution of the Central Joint Council, an agreement is hereby entered between the Communications Workers Union of Kenya and Telkom Kenya Ltd on terms and conditions of service.

These terms and conditions of service are applicable to Unionisable employees of the Company, who were in the service of the Company on or after 1st April, 2009.

2.APPOINTMENT

After a successful interview and selection process with the Company an employee shall be issued with a letter of appointment prior to commencement of duties.

The letter of appointment shall specify the employee’s job title, salary range and other related matters pertaining to the employee’s terms and conditions of service as set out in the Company’s salary ranges.

3.PROBATIONARY PERIOD

i. The probationary period shall not be more than six months but it may be extended for a further period of not more than 6 months with the agreement of the employee.

ii. No employee shall remain under probationary contract for more than the aggregate period provided above

iii. Trainees will be under probation during their training period.

4.CONFIRMATION

Employee on successful completion of probationary period shall be confirmed in his/her appointment and will then be on permanent terms. However, the period of probation may be extended where the employee’s performance has not been satisfactory bi informing the concerned employee in writing.

5.HOURS OF WORK

Hours of duty may vary for staff performing different types of duties at the same station or at different stations as may be demanded.

The conditioned hour per week for all graded and semi-skilled full time staff irrespective of where they are serving will be forty (40) hours exclusive of meal breaks.

i. Day duties staff – All graded staff will normally be scheduled for a minimum of (40) hours per week excluding meal break and will work an average of eight (8) hours a day.

ii. Shift system – This may be introduced at particular places to suit local conditions depending on the nature and intensify of the work to be performed.

6.ANNUAL LEAVE

On completion of twelve months of continues services, an employee shall be entitled to a paid annual leave as follows:-

Salary RangeAnnual Entitlement

430

527

For purposes of counting annual leave days, Saturdays, Sundays and Public holidays shall not be included.

7.PUBLIC HOLIDAYS

Public holidays gazetted by Government shall be observed by all employees of the Company, except those employees whose retention on duty is necessary in the Company’s interest. Such employees if retained shall be paid overtime in accordance with rules on overtime (see 16).

8.ACTING APPOINTMENTS AND ALLOWANCES

2. Whenever a higher post falls vacant, the most senior and competent employee will be appointed in writing to act at the discretion of the Management.

3. The acting shall be made in writing before the employee commences to act in the higher position

4. On satisfactory completion of the acting period of 6 months, the employee shall be confirmed to the higher post. Otherwise the acting employee shall be reverted to his former post.

5. The acting allowance shall be paid at the rate of 25% of one’s salary or Kshs 10,000/- whichever is higher.

9.COMPASSIONATE LEAVE

i. In compelling cases, an employee may on compassionate grounds be granted

some leave if he/she has exhausted all the annual leave entitlement for the financial year.

ii. The number of leave days granted under such circumstances shall be deducted from the employees’ leave entitlement for the following financial year.

10. MATERNITY LEAVE

i. All female employees of the Company shall be entitled to maternity leave in accordance with the Employment Act as follows:-

•Three months maternity leave with full pay, subject to production of medical certificate form an approved medical practitioner confirming the employee’s date of confinement. The annual leave shall however not be forfeited.

•Immediately on expiry of maternity leave before resuming her duties, a female employee may proceed on sick leave; or with the consent of the employer, on annual leave, compassionate leave or any other leave. The three months’ maternity leave shall be deemed to expire on the last day preceding such extended leave.

ii. Paternity leave

A male employee shall be entitled to two (2) weeks paternity leave with full payment on production of birth notification.

11.TERMINATION/RESIGNATION

After successful completion of the probationary period, either the Company or employee wishing to terminate the contract of employment shall be required to give the required notice in accordance with the terms or conditions set out in the contract.

An employee wishing to terminate the contract of employment shall be required to write and sign by hand the resignation letter giving notice in accordance with the terms or conditions set out in the contract. The letter should be forwarded to Head of HR through the Head of Department.

12.RETIREMENT

The normal retirement shall be fifty-five (55) years. However, by mutual agreement employees may voluntarily opt to retire on attaining the age of fifty (50) years.

13.PROMOTION

Promotion from one range to another shall be granted by the Company in accordance with the laid down procedures. Promotion shall depend on merit, professional qualification, performance, conduct, seniority and availability of a vacancy.

14.SICK LEAVE

If an employee falls sick and is hospitalized for a continuous period, or is certified by a medical doctor to be incapable of attending to work, such employee will be entitled to the following sick leave in any one calendar year.

Sixty (60) days on full pay, and thereafter:

Sixty (60) days on half pay

After expiry of the 120 days, annual leave may be offset against the period of sickness or employment terminated on medical grounds subject to approval by a certified medical doctor

All employees who have served for two months or more are entitled to sick leave.

15.MEDICAL

15.1Out Patient Medical Treatment

Unionisable staff and their dependants are entitled for out-patient treatment in the scheduled medical facilities/approved doctors as provided in the relevant circulars. The staff will met the cost of treatment and then claim reimbursement in line with the medical policy.

The outpatient medical entitlement shall be Kshs 28,000.00 per year which includes spectacle allowance of Kshs 8,000.00 The spectacle allowance is however restricted to the employee only.

15.2In Patient Medical Entitlement

Employees and their dependants will be treated at approved hospitals/medical facilities and the expenses settled by the Company at a subsidized cost of 90% after the NHIF rebate while the 10% will be borne by the employee.

The current medical position on outpatient and inpatient treatment will be retained pending the launch of the proposed insurance scheme by the Company.

16.OVERTIME

It is agreed that:

a) Overtime shall be paid to offices authorized to work beyond normal working hours.

b) Where authority to perform overtime has been granted, time-off in lieu of payment should not apply where the staff and controlling officers have mutually agreed.

c) The normal working hours for the purpose of claiming overtime shall be 40 hours per week.

17.BURIAL ALLOWANCE

In the event of an employee’s death, or member of his immediate family, burial allowance will be granted to the employee or his/her family to assist the bereaved in meeting burial and incidental expenses. The Company will provide transport for the deceases employee, to the place of burial in addition to the burial allowance.

The burial allowance shall be paid as follows:

Categories

Kshs.Transport

Employee50,000

Spouse20,000Kshs 7,000

Child15,000Kshs 7,000

The Company shall in addition meet mortuary fees for a maximum of fourteen (14) days for the employee and seven (7) days for the dependant at the approved medical facilities

18.PER DIEM/NIGHT SUBSISTENCE ALLOWANCE WHILE ON DUTY WITHIN KENYA

The rate of perdiem for all employees travelling on duty applies to all nights spend away from the duty station including the period of the journey and has been revised as follows:

RANGEZONETOWNSKSHS

4ANairobi, Mombasa, Kisumu, Malindi, Kilifi, Lamu, Kwale4,000

BNakuru, Nyeri, Eldoret, Kericho, Kakamega3,500

CAll other areas3,000

5ANairobi, Mombasa, Kisumu, Malindi, Kilifi, Lamu, Kwale3,500

BNakuru, Nyeri, Eldoret, Kericho, Kakamega3,000

CAll others areas2,500

19.SUBSISTENCE ALLOWANCW WHILE ON DUTY OUTSIDE KENYA

The rates of per diem/subsistence allowance for staff on official duty outside Kenya are as set out in the relevant personnel circular.

Maintenance and out-of pocket allowances which are determined by reference to the per diem/subsistence allowance rates will be assessed on the basis of the new rates.

20.RISK ALLOWANCE

This allowance is paid to riggers who work up on a mast tower of at least 13 meters above the ground on installation of an antenna, antenna feeder, fitting aircraft warning lights or painting.

The rates have been revised from the current Kshs 2000/= to Kshs 3000/= per month.

21.LOANS

The Company may facilitate for its employees to get loans from banks and other financial institutions where possible.

22.DRIVING ALLOWANCE

The rates payable to officers who may be called upon to perform driving duties alongside their normal duties shall be Kshs 1800/= per month.

23.DRIVERS ALLOWANCE

The rates for this allowance paid to drivers attached to prestige cars, buses, articulate vehicles and drivers of Lorries not less than three (3) tons tare (inladen) weight pulling one or more detachable trailers shall be Kshs 1500/=

24.The rates are payable to employees who are authorized to use their own vehicles for official duties.

It was agreed that the current rates of Auto Mobile Association of Kenya (AA) be adopted namely:-

ENGINE CAPACITYKSHS

1701 cc & Above41.85

1501 cc – 1700cc37.45

1301cc – 1500 cc33.85

1201 cc – 1300 cc30.95

12000 cc - & below28.00

Motor Cycles & Cycles20.55

25.REDUNDANCY/STAFF RATIONALISATION

It was agreed that the term staff rationalization be replaced with redundancy. Management and the Union will discuss on modalities, package and implementation before any staff rationalization within the guidelines of the redundancy law, Employment Act 2007 section 40.

26.HARDSHIP ALLOWANCE

The allowance is payable to staff serving in areas identified and categorized by the government as hardship areas. The rates for payment of this allowance has been revised from Kshs 3,500/= to Kshs 3,800/= per month.

27.LEAVE TRAVELLING ALLOWANCE IN HARDSHIP AREAS

This allowance shall be retained and paid to those staff transferred to and working in gazetted hardship areas but are not residents by birth. It shall be paid on the anniversary date of the first appointment.

28.MAINTENANCE ALLOWANCE ON TRANSFER

The allowance is paid to an employee proceeding on official transfer. It is limited to 15 days at the rate of the local per diem allowance, and shall be paid at the old duty station prior to transfer.

An official transfer from a distance of 40 – 63 Kms will be paid at the rate of 9 days per diem while a transfer of 64 Kms and above will be paid at the rate of 15 days per diem.

29.DAY SUBSISTENCE ALLOWANCE

This allowance is paid to employees on duty outside their duty stations for a period in excess of six hours but less than 24 hours. The qualifying distance has been revised from 24 kilometers to 30 kilometers.

The rates are as follows:

RANGEKSHS

4350

5250

30.SALARY

It was agreed that salary for unionisable staff be increased on a consolidated package at the rate of 8% increment for the period 1st January, 2010 to 31st March 2010 and thereafter, 7.5% increment for the period 1st April, 2010 to 31st March, 2011.

31.VIOLATION OF NEGOTIATED AGREEMENTS

No alteration to remuneration or conditions of service of staff shall be made without prior consultation by both parties as contained in item eleven (11) of the Recognition Agreement provided that individual employee’s rewards/bonuses and promotions under company policy will not be subjected to these consultations.

32.CENTRAL JOINT COUNCIL SITTING ALLOWANCE

It was agreed that the company will meet the Central Joint Council expenses of the Chairman, the venue and Union officials who are employees of the Company.

33.EFFECTIVE DATE

The agreement shall be in force for two years with effect from 1st April, 2009 to 31st March, 2011.

34.OTHER TERMS AND CONDITIONS OF SERVICE

The other terms and conditions of service shall continue to apply as provided for in the existing Company regulations, issued through circulars form time to time and the Human Resources Manual will continue to be used as a guideline. At the expiry of this CBA all the terms and conditions shall continue to apply until another CBA is put in place.

35.UNION SUBSCRITION

(This Item was not discussed as it is still pending in court)

It was agreed that an agent fee be effected and deducted from all Unionisable employees who are not members of the Union in accordance with the new introduced Labour Relations Act No. 14 of 2007 Section 39 at the rate of 2007 Section 39 at the rate of 1% per month.

Dated and signed this day of 25th June 2010.

JANE KARUKU

HEAD OF SUPPORT SERVICES

OFFICIAL SIDE LEADER

BENSON O. OKWARO

GENERAL SECRETARY (COWU)

STAFF SIDE LEADER

APOLLO NZANO

CHAIRMAN

STELLA NDIRANGU

OFFICIAL SIDE SECRETARY

ISMAEL NOO

STAFF SIDE SECRETARY

KEN Telkom Kenya Ltd - 2009

Start date: → 2009-04-01
End date: → 2011-03-31
Name industry: → Transport, logistics, communication
Name industry: → Wired telecommunications activities, Wireless telecommunications activities
Public/private sector: → In the private sector
Concluded by:
Name company: →  Telkom Kenya Ltd
Names trade unions: →  COTU - Communications Workers Union Kenya

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 50 %
Maximum days for paid sickness leave: → 120 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: → Yes
Medical assistance for relatives agreed: → Yes
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: → Yes
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: → Insufficient data days
Paternity paid leave: → 14 days

EMPLOYMENT CONTRACTS

Trial period duration: → 365 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 day: → 8.0
Working hours per week: → 40.0
Working days per week: → 5.0
Paid annual leave: → 30.0 days
Paid annual leave: → 6.0 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
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → 8.0 %

Premium for overtime work

Premium for hardship work

Premium for hardship work: → KES 172.0 per month

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
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