MEMORANDUM OF AGREEMENT BETWEEN BLUE POST HOTEL AND THE KENYA HOTELS AND ALLIED WORKERS’ UNION

PREAMBLE:

The parties to this Collective Bargaining Agreement meeting together in a free voluntary atmosphere of association, have determined the TERMS AND CONDITIONS OF SERVICE, whereby it is agreed to provide as follows:-

(b) No employee already in the service of the Blue Post shall receive terms and conditions of service subsequent to the signing of this Agreement less favourable than the terms and conditions of his/her service at that date.

CLAUSE 1: DURATION OF AGREEMENT

(a) Duration of Agreement – 2 years.This Collective Bargaining Agreement commencing on 1st July, 2013 and shall remain in force for a period of two (2) years, to expire on 30th June 2015.

(b) (i) Either party wishing to amend any clause in the Collective Bargaining Agreement (CBA) shall give the other one (1) month’s notice in writing prior to the expiry date of the agreement (CBA).

(ii) Discussions on the proposed amendments shall not commence later than one (1)month before the expiry date of this Collective Bargaining Agreement and may mutually be varied as the case may be.

(iii) During the period of amendment/negotiations, this CBA shall remain in force.

CLAUSE 2 : ENGAGEMENT

The employee shall be given two copies of letter of appointment of which he/she shall sign original in presence of the third person and return it to the employer. This letter shall indicate the job and wage affixed. The letter of appointment shall be in the form set of in Appendix ‘A’.

CLAUSE 3 : APPOINTMENT

The employer shall notify in writing the shop steward of an establishment or in the absence of the shop steward other responsible member of the works committee or in absence of works committee member, the local union representative of the appointment of a new unionisable member of staff.

CLAUSE 4 : UNION MEMBERSHIP

Both parties to this Collective Bargaining Agreement shall be committed to the harmonization of better working industrial relations between the employer and the

employees. Responsibilities laid therein would only be fulfilled within the labour standards on freedom of individual choice for membership and such decision should not affect their employment, continued employment or career prospects of an individual employee. The union membership for such employees as is covered by this Collective Bargaining Agreement should be maintained at a high level effective on engagement.

CLAUSE 5 : CESSATION OF WORK

a) The company and the union recognize that the economic well being of the company and its employees is dependent upon the maintenance of a harmonious relationship and industrial peace, therefore, with full cognizance of their responsibilities the company and the union agree that in the event of any differences of opinion arising in respect of any matter explicitly agreed in this document or in the interpretation or application of this Agreement or in respect of any other matter which may arise later which is not referred to in this Agreement, they will enter into conciliatory discussion with the objective of endeavoring to seek a settlement satisfactory to both and until those discussions have been exhausted, no arbitrary action designed to bring about a stoppage of work will be taken either by the company or the union.

b) If in spite of their best endeavors to reach a mutually satisfactory settlement the company and the union fail to do so, either party decides that a stoppage of work should occur, the procedure laid down in The Labour Relations Act, 2007 shall be applicable.

CLAUSE 6: ANNUAL LEAVE

(b) Where employment is terminated before the completion of twelve (12) consecutive months of service, the employee shall be entitled to pro-rated leave of 2 days for each completed month of service.

CLAUSE 7 : MATERNITY LEAVE

CLAUSE 8 : LEAVE FOR TRADE UNION CONFERENCE

(a) The Union shall seek leave of absence with full pay for unionisable employees, thirty days prior to the commencement of the training, workshop, seminar or course, sponsored by the union, the National Labour Centre and or the International Trade Secretariat.

(b) The Union shall furnish the management with a list of its elected officials in appropriate time.

CLAUSE 9 : LEAVE FOR EDUCATION SEMINAR AND COURSES

The company agrees to grant leave with full pay to the union members sponsored by them (the union) to attend Educational Seminars and courses for the entire duration of such seminars and courses provided 07 days written notice has been given to the company. Proper reason must be given to the employer.

CLAUSE 10 : GAZZETTED PUBLIC HOLIDAY

(b) Where an employee works on a public holiday which is not his/her rest day

he/she shall be paid overtime at double rate his/her hourly rate or be given

two days off.

(c) Where an employee works on a public holiday, which is also his/her rest day, then he/she shall be paid for all hours worked at double rate plus one day off day or be given three full days as off duty.

CLAUSE 11 : COMPASIONATE LEAVE

CLAUSE 12 : CHANGE OF CLASSIFICATION

If any employee is permanently transferred to a lower category through no fault of his own, his basic pay will not be reduced, provided an agreement has been reached between the company and the union on the matter.

CLAUSE 13 : VACANCIES

Where vacancies of promotional nature arise, the company shall give first consideration to existing employees taking in to account such considerations as relative ability, experience, qualification and length of service.

When the fore going procedure has been exhausted and the company decides to advertise in the press e.t.c. copies of the advertisement will be posted on the notice board for the information of the employees.

CLAUSE 14 : SICK LEAVE

After the probationary period, employees will be entitled to sick leave pay in a period of 12 months consecutive service according to length of service as follows:-

(a) An employee with five (5) years service or less:-

(b) An employee with over 5 to 10 years’ service:-

(i) The first 42 days with full pay and

(ii) The next 42 days with half pay

(iii) Thereafter leave without pay.

(c) An employee with over 10 or more years’ service:-

(i) The first 42 days with full pay and

(ii) The next 42 days with half pay

(iii) Thereafter leave without pay

An employee shall not be entitled to the payment (referred to in paragraph (a) (b) and (c) of this clause) unless he produces to the employer a certificate of incapacity covering the period of leave claimed, signed by a duly qualified medical practitioner or a person acting on such practitioner’s behalf in charge of a recognized hospital. In case of dispute of Medical report, Unit’s doctor’s report will be obtained.

An employee retired on medical grounds shall be entitled to gratuity benefit as per this CBA

CLAUSE 15 : WARNINGS

An employee who commits an offence other than gross misconduct or other cause of lawful dismissal may be given a written warning which shall be entered in the employee’s employment record and shall remain valid for a period of seven and a half (7.5) months from the date of issuing.

(a) The first and the second warnings will be recorded in the employee’s file and copies to the shop steward and the Union office.

(b) The third and final warning shall be copied to the employee liable to termination, shop steward and the union.

(c) If an employee completes 7 and a half months from the date of the last warning without any further offence, any warning(s) recorded on his/her file shall be cancelled.

CLAUSE 16 : TERMINATION OF EMPLOYMENT

After completion of the probationary period, employment shall be terminated by either party by giving written notice or by the payment of wages in lieu of notice as follows:-

a) Employees having up to 5 years continuous service one month notice or pay in lieu.

b) Employees having more than 5 years but less than 10 years continuous service (2) two months’ notice or pay in lieu.

c) Employees up to 10 but less than 15 years (3) three months’ notice or pay in lieu.

d) Employees having 15 years or more continuous service (4) four months’ notice or pay in lieu.

CLAUSE 17 : REDUNDANCY

Where an employee is to be terminated on the account of redundancy, the following principles shall apply:-

(a) The Labour Relations Act, 2007 and The Employment Act 2007, shall be adhered to the latter.

(b) The principle of “Last in First out” shall be observed.

(c) The Union shall be informed of the reasons for and the extents of the intended redundancy of each employee to be effected with a written notice of three months of the intended termination.

(d) The management shall have due regard to seniority, skill, ability and reliability of each employee to be affected.

(e) No employee to be discriminated against, for being, or not being a union member.

(f) Redundant employee shall be entitled to cash payment before work ceases. Hence the following:-

(i) Notice as provided for under Clause 16 herein;

(ii) Days and overtime worked;

(iii) Leave due;

(g) The notices shall give/issued to the employees according to clause 16 of this Agreement;

(h) Where in the event of change in the management or ownership of the establishment the outgoing management shall ensure that the incoming managers, management, or owner undertakes to continue the employment of employees with full benefits for past services and the union shall be informed accordingly.

CLAUSE 18 : CONTRACTUAL JOBS

The company undertakes to discuss with the union prior to the company deciding to engage private contractors to do any job which was previously done by the company where such contracting out will result in a certain category of employees redundant. Payment under this clause will be based on those applicable under clause 1-17 to this agreement.

CLAUSE 19 : RETIREMENT AGE

(b) On retirement, the employee shall be entitled to be paid by his/her employer retirement benefits as follows for each completed year of service at the rate of Basic pay applicable at the date of retirement.

(i) Upto 5 years – 16 days per year

(ii) 5 years to 10 years – 18 days per year

(iii) Over 10 years – 22 days per year.

(c) In absence of any official record, proof of an employee’s age shall be evidenced by a certificate issued for that purpose by a duly qualified medical practitioner.

(d) In all cases of retirement whether upon attaining retirement age or on medical grounds, the employee’s services shall be terminated as per the provisions of clause 16 of this Agreement.

CLAUSE 20 : GRIEVANCE PROCEDURE

STAGE 1: An employee desiring to raise any grievance shall in the first instance discuss the matter with his immediate supervisor.

STAGE II: Failing a satisfactory solution within two working days after the matter has been raised at stage 1, the employee may refer the matter to his senior supervisor. At this stage he may be presented by the appropriate union shop-steward.

STAGE III: Failing a satisfactory solution within two days after the matter has been raised at stage II, the employee with or without his union representative may raise the matter with the manager/departmental head or his nominee. The company will give its decision within two working days of the meeting.

STAGE IV: If a solution is not forth coming at stage III, the union may refer the letter in writing to the management of the company who will schedule a meeting with the union to discuss the issue involved. This meeting will be held within four working days of receipt of the union’s letter. Within three working days of the date of that meeting the final decision of the management will be communicated to the union in writing.

STAGE V: If any matter has not been resolved on completion of the foregoing procedure, the grievance will be referred to the grievance committee of the company and the union. The committee will consist of Human Resource manager and two of his nominees and the union Branch Secretary and two of his nominees, while the employee will be represented by his shop steward. Decision of the grievance committee will be mutual agreement.

CLAUSE 21 : CERTIFICATE OF SERVICE

At the termination of employment, the management shall give to the employee a CERTIFICATE OF SERVICE as prescribed in Section 51 of The Employment Act, 2007, Laws of Kenya.

CLAUSE 22 : HOUSING ALLOWANCE

In addition to the basic wages all unionsable employees shall be paid a house allowance as per attached schedule Grade 1-3 Kshs 5,884/=, Grade 4-5 Kshs.5,998/= and Grade 6-9 Kshs.6,136/= per month if not housed, which is not taken into consideration when calculating over time.

CLAUSE 23 : SAFETY AND HEALTH

CLAUSE 24 : UNIFORMS

(a) The management shall provide and maintain uniforms.

(b) The employer shall provide two sets of uniform and shoes/boots to all workers subject to wear and tear. The type and style of uniforms for each category employee shall be in accordance to the job they perform and shall be changeable at when need arises by the employer.

(d) Where uniforms are not laundered by employer, the employee shall be issued with laundry soap of not less than one bar per month to staff who will be responsible for laundering their own uniforms.

(e) Uniforms remain the property of the employer.

(f) The uniforms shall be worn and used during working hours.

CLAUSE 25 : PROTECTIVE CLOTHING

(a) The management shall provide and maintain Personal Protective Equipment and uniforms.

(b) Failure by the management to provide uniforms as mentioned in the above clause, unionized employees shall be compensated with cash equivalent to the market price.

CLAUSE 26 : PROBATION

(b) During the probation period, either party may terminate employment by giving seven (7) days written notice or pay in lieu thereof.

CLAUSE 27 : ACTING APPOINTMENT

Where an employee is required to perform work of a high grade than his own for a period of not less than 30 days, he/she will be entitled to be paid at the rate of 20% of the higher grade during the time that he/she performs that work. Where such acting appointment are as a result of resignation, dismissal or permanent transfer the employee acting continuously in that position for at least 3 months shall be confirmed in that position.

CLAUSE 28 : HOURS OF WORK

(b) Normal hourly Rate Calculation:-

Basic Wage/Salary

=Hourly Rate

Ave. Hrs Per year

CLAUSE 29 : EMPLOYMENT COMMUNICATION

Communication to an employee in respect of the terms and conditions of service shall be in written form and signed for by the employee as an acknowledgement of receipt. Such signatures shall not be instituted acceptance of indiscipline barring an appeal, but only as evidencve of receipt of the letter.

(b) The employer reserves the right to issue general communication to staff through circulars, notices and regulations which should be displayed conspicuously on the staffs notice board and the content thereof shall be taken to be sufficient communication to all employees to this regard.

CLAUSE 30 : OVERTIME

(b) Overtime hourly rate calculation:-

Basic Wage / Salary

X 2 = Double Hourly Rate.

Av. Hrs per year

CLAUSE 31 : ANNUAL BONUS

CLAUSE 32 : MEDICAL TREATMENT

MEDICAL BENEFITS:

CLAUSE 33 : SEASONAL EMPLOYMENT

The company may employ persons on temporary/seasonal basis for a period to be specifically advised to the employee, such period not exceeding three months. Temporary/seasonal employment may only offered for genuine temporary/seasonal purposes. Such employees will be subject to the same terms and conditions of service as other employees who are subject to this agreement.

a) The employer shall not terminate the service of temporary / seasonal employee after completion of an aggregate of three months service or less, and employ a new employee in his/her place nor shall the employer re-employ the temporary/seasonal employee within a short period of time in order to avoid employing the temporary/seasonal on a permanent basis.

b) Should the temporary/seasonal employee then be engaged in permanent employment for the company the provision of clause 1-27 of this agreement relating to probationary terms will apply.

CLAUSE 34 : SERVICE CHARGE

The company shall undertake to operate a service charge on all sales arising from rooms, food, drinks, telephone and laundry whether it is by cash or credit. Provided that, the industry shall charge on other revenue items above declared prices for example, bar sales, telephone, laundry and other such service charges to be collected and distributed in accordance with the collection as here below:-

(i) The monies collected through service charge shall be distributed equitably to all unionizable employees on terms that shall be agreed upon by the works committee of an individual establishment.

A monthly reconciliation in relation to the service charge collected and distributed shall be provided by the management of the industry to the shop

steward and the union branch representative at the time the service charge was distributed to the unionizable employees by the tenth day latest of the following

month.

(ii) The union shall have to appoint a recognized qualified accountant/auditor during the term of this agreement for the purposes of counter checking the books and records of accounts as maintained by the industry on service charge on her own cost.

Copies of the audited reports thereof shall be given to both the Union Branch Secretary and the Management for an action to be taken on any discrepancies

arising from the report.

(iii) Once the annual audit of the industry; accounts books and records on service charge are done with by her auditors, the audited reconciliation of service charge collection and distribution covering the period shall be provided to the Union.

(iv) A deduction of 10% from the service charge collection shall be retained by the industry for administrative purposes; the balance of 90% shall be distributed as per sub-clause (i) herein above and herein under throughout the term of this agreement.

- 6 % on Beverage.

- 7% on Food and Accommodation.

CLAUSE 35 : DEATH OF AN EMPLOYEE

CLAUSE 36 : PROMOTION AND DEMOTION

(a) The Management shall give due preference to the existing employees subject to merit and qualifications whenever such vacancies occur, before consideration of new applicants.

(b) An employee who passes a prescribed examination and there occurs a vacancy, shall be appraised and considered for promotion subject to skill, merit and experience.

(c) In case it is necessary to demote an employee to a lower wage grade of employment for disciplinary on justifiable unsatisfactory conduct, he/she shall continue to receive the already earned wage without reduction.

CLAUSE 37 : HIV (AIDS) PROGRAMMES

NATIONAL CODE OF PRACTICE ON HIV & AIDS IN THE WORK PLACE

CLAUSE 38 : GENERAL WAGE INCREMENT

CLAUSE 39 : TOOLS ALLOWANCES

A tool allowance of Kshs. 2,000/=

CLAUSE 40 : ACCIDENT INSURANCE COVERS

The one existing to continue in place.

CLAUSE 41 : SERVICE GRATUITY

In the event of any employee leaving employment either through retirement, termination or redundancy shall be entitled to service gratuity as follows:

(i) Three to five years of service:-

10 days basic salary plus house allowance per completed year of service.

(ii)From five years and ten years of service:-

18 days basic salary plus house allowance per completed year of service.

(iii)From ten years of service and above:-

20 days basic salary plus house allowance per completed year of service.

PARTY SIGNATURES:-

SIGNED FOR AND ON BEHALF OF BLUE POST HOTEL

NAME : JOHN P. OLE NGOSSORR

DESIGNATION : UNIT MANAGER

SIGN:

DATE:

NAME : ABISAI O. AMBENGE

DESIGNATION : SENIOR EXECUTIVE OFFICER-LEGAL & INDUSTRIAL RELATIONS - FEDERATION OF KENYA EMPLOYERS

SIGN:

DATE:

SIGNED FOR AND ON BEHALF OF KENYA HOTELS AND ALLIED WORKERS UNION(K.H.A.W.U)

K.H.A.W.U OFFICIALS

NAME : JOANES OKOTCH

DESIGNATION : SECRETARY GENERAL

SIGN:

DATE:

NAME: KAMAU GEOFREY KARANJA

DESIGNATION: SHOP STEWARD

SIGN:

DATE:

APPENDIX "A"

LETTER OF APPOINTMENT

Date ...................

Dear Sir/Madam,

This letter confirms your appointment as an employee of .................on terms and conditions ' of service as contained in the current agreement between this organization and KHAWU applicable to all unionisable members of staff.

A copy of the current agreement is in possession of the shopsteward and you are advised to acquaint yourself with its terms before you sign this letter of appointment.

This letter of appointment is to be read at times together with the agreement existing between this organization and KHAWU of which you are eligible for appointment.

DUTIES:

You will be employed initially as .............Reporting to ............altered at the discretion of the management.

DATE OF COMMENCEMENT: .................

TRANSFER:………..

Grade...........................

But your functions and duties may be………….

You may be transferred from one unit to another during the course of your employment without break of service to perform those duties that may be entrusted to you in accordance to the negotiated collective bargaining agreement.

WAGE :

You will be paid a Wage/Salary of Kshs: ....... payable in arreas at the end of each month

HOUSE ALLOWANCE:

The housing allowance under the current collective agreement is Ksh ...payable in arreas at the end of each month.

WAGES SCHEDULE 2

SPECIAL GRADES

WAGES SCHEDULE 3

SPECIAL GRADES

A. HOUSING