MEMORANDUM OF AGREEMENT BETWEEN CHANDARANA GROUP OF SUPERMARKETS AND THE KENYA UNION OF COMMERCIAL FOOD AND ALLIED
WORKERS (HEREINAFTER REFERRED TO AS THE "UNION" OF THE SECOND PART
IN THE MATTER OF WAGES AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT
The Group and the Union meeting together in a free and voluntary association, agree and enter into foregoing agreement negotiated between them at the joint negotiating committee.
1. A. BASIC MINIMUM WAGES (EXCLUSIVE OF HOUSING ALLOWANCE)
| Category | Minimum Wage |
| Category 1:
General Labourer, Cleaner, Messenger |
7,586 |
| Category 2
Shop assistant, Copy-typist, Driver (car and light vans) |
10,239 |
| Category 3
General Clerk, Telephone Operator, Receptionist and Storekeeper) |
11,684 |
| Category 4
Driver (medium sized vehicle) |
12,877 |
| Category 5
Salesman, Driver (medium sized vehicle) |
14,216 |
| Category 6
Cashier Driver (heavy commercial vehicle) |
17,118 |
B. WAGE INCREASE
All unionisable employees in the employment of the group, who are confirmed in their appointment as at 30th June, 2011 will receive a salary increase of 13% to cover the first year and another 13% from 1st July 2012 to cover the second year of the CBA.
2. HOUSE ALLOWANCE
Every unionisable employee who is not provided with free accommodation by the employer will be entitled to 16% of his/her basic salary.
3. CASUAL EMPLOYMENT
(a) The daily rate for a casual employee shall be as per the General Order.
(b) Where a casual employee has remained in employment for a period of more than three (3) continuous months in a year, such a casual employee shall be converted to permanent terms of service.
4. PROBATION
(a) All employees shall be required to serve a probation period of 3 (three) months before being confirmed into their appointment. During such period, the employment may be terminated by the Company or the employee by giving 14 days notice in writing or pay in lieu of notice.
(b) On initial appointment, an employee shall be issued with a letter of appointment detailing terms and condition of his employment.
5. HOURS OF WORK
The normal working week shall consist of 45 hours of work, exclusive of meal breaks, provided that:-
(a) An employee shall be entitled to not less than one rest day each week.
6. OVERTIME
Authorized overtime shall be payable at the following rates:
(a) For time worked in excess of the normal number of hours per week, as specified in paragraph 5 above, at one and half (1½) times the normal hourly rate.
(b) For time worked on the employee's rest day and Gazetted Public Holidays, at double the normal hourly rate. Provided that employees wishing to opt for additional time off in respect of hours worked during a Public Holiday shall be granted such time off with full pay.
(c) For the purpose of computing payment for overtime work, the hourly rate shall be 1/195 and multiplied by the gross monthly salary for all employees.
7. ANNUAL LEAVE
After each period of twelve month's continuous service with the company, an employee shall be entitled to annual leave of twenty four (24) working days with full pay on the anniversary date of the employee's employment. Where employment is terminated, after completion of three or more consecutive month's service, the employee will be entitled to pro-rata leave with full pay for each completed month of service in such period. The employee shall receive pay in lieu of such leave.
8. SICK LEAVE
After the probationary period, and subject to production of a medical certificate signed by an approved medical practitioner, an employee shall be entitled to sick leave in any one year as follows:-
(i) 30 days with full pay
(ii) 15 days with half pay
9. MATERNITY LEAVE AND PATERNITY LEAVE
As per the Employment Act 2007.
10. COMPASSIONATE LEAVE
(a) An employee desiring leave on compassionate grounds shall, by prior arrangements with the Company be granted such leave up to his earned entitlement under paragraph 7 of this Agreement and the leave taken shall be subsequently set off against his annual leave.
(b) An employee may, in addition to leave provided for in sub-paragraph (a) of this paragraphs, be granted three (3) days compassionate leave without pay in any one year.
11. UNIFORMS
Employees who are required by the Company to wear uniforms including name tags shall be issued with one pair of such uniform in each year, provided that;-
(a) The employee shall wear his/her uniform at all times while on duty unless directed otherwise by the employer.
(b) The employee shall not wear his/her uniform at any other time other than when proceeding to or from duty without express permission from the company.
(c) The laundering of uniforms, the company shall provide a bar of soap the employee will nevertheless be required to maintain his/her uniform in a tidy and clean condition at all times.
12. PROTECTIVE CLOTHING
Protective clothing will be provided in accordance with the provisions of the Factories Act.
13. MEDICAL TREATMENT
Medical treatment to all unionisable employees will be subject to Employment Act 2007.
14. REDUNDANCY
Where the employment of an employee is to be terminated on account of redundancy, the following principles shall apply:-
(a) All matters concerned with redundancy shall be subject to the procedures stipulated in the Labour Relations Act 2007.
(b) The Company shall adopt the principles of "Last in first out" provided that, due to seniority in time, skill, ability and reliability of each employee belonging to the particular category of employees affected by the redundancy shall be considered.
(c) Any leave due to an employee who is declared redundant shall be paid for in cash.
(d) The redundant employee(s) shall be entitled to notice or pay in lieu of such notice as outlined in Clause 17.
(e) An employee declared redundant shall be entitled to severance pay at the rate of 18 days' pay for each completed year of service.
15. WARNING
An employee whose work or conduct is unsatisfactory or commits an offence which does not warrant instant dismissal shall be warned in writing and the following procedure shall apply.
(a)The first and the second warning shall be entered in the employee's employment record and the shopsteward of the union informed accordingly.
(b) The second warning shall be copied to the General Secretary of the Union.
(c) If an employee who has received two written warnings commits a third offence he/she shall be liable be liable termination.
Provided that where an employee completes three hundred and sixty five days, from the date of the second warning without committing further offence, any warnings entered in his record shall be cancelled.
16. TRANSFERS
(a) The company has the sole right to transfer an employee from one Branch to another or from one Department to another in accordance with the exigency of service.
(b) Internal transfer within the City Municipality etc., employee shall be given 1 days notice except where there are emergency circumstances, the notice will not hold.
17. TERMINATION OF EMPLOYMENT
After the completion of the probationary period, services may be terminable by either party by giving notices as follows:
(a) Employees with 1 to 5 years service, 1 month's notice or pay in lieu thereof vice-versa.
(b) Employees with 6 years and above service - 2 months' notice or pay in lieu thereof vice-versa.
18. SUMMARY DISMISSAL
An employee shall be liable to summary dismissal for gross misconduct defined in the Employment Act, namely:-
(i)If without leave or other lawful cause, an employee absent him/herself from the place proper and appointed for the performance of his/her work for a period exceeding seven days
(ii) If, during working hours, by becoming or being intoxicated, an employee renders himself unwilling or incapable properly to perform his/her work.
(iii) If, employee will fully neglects to perform any work which its his duty to have performed, or if he carelessly and improperly performs any work which from its nature it was his duty under his contract to have performed carefully and properly.
(iv) If, an employee uses abusive or insulting language or behaves in a manner insulting, to his employer or to any person placed in authority over him by his employer.
(v) If, an employee knowingly fails or refuses to obey any lawful and proper command which it was within the scope of his duty to obey, issued by his employer or to any person placed in authority over him by his employer.
(vi)If, in the lawful exercise of any arrest given by or under any written law, an employee is arrested for a cognizable offence punishable by imprisonment and is not within fourteen (14) days either released on bail or bond or otherwise lawfully set at liberty.
(vii) If an employee commits, or on reasonable and sufficient grounds is suspected of having committed any criminal offence against or to the substantial detriment of his employer or his employer's property.
19. SALARY ADVANCES
The company agrees to the payment of mid-month advances to those employees who make a written application for the same, which advances should not exceed one half of the net month salary of the employee.
20. LEAVE TRAVELLING ALLOWANCE
An employee travelling on his annual leave shall be entitled to a leave travelling allowance of Kshs.1500/= (shillings one thousand five hundred only).
21. FUNERAL EXPENSES
(i) In the event of death of an employee, the employers will contribute a sum of 5,000/- towards the funeral expenses of the deceased employee. The employer shall also provide coffin and transport.
(ii) Allow 2 nominated workmates of the deceased to attend burial.
22. CERTIFICATE OF SERVICE
This shall be dealt with in accordance with section 18 of the Employment Act, which reads:-
(1) Every Employee shall be given a certificate of service by his employer upon the termination of his employment unless such employment has continued for a period of less than four consecutive weeks and every such certificate shall contain:-
(a) The name of the employer and his postal address
(b) The name of the employee
(c) The date when the employment commenced
(d) The nature and usual place of employment
(e) The date when employment ceased, and
(f) Such other particulars as may be prescribed.
(2) Subject to subsection (i) of this section no employer is bound to give to any employee and testimonial reference or certificate relating to the character or performance of an employee.
(3) Any employer who wilfully or by neglect fails to give an employee a certificate of service in accordance with subsection (i) of this section, or who in a certificate of service includes a statement which he knows to be false, shall be guilty of an offence.
23. ACTING APPOINTMENT
(a)Where an employee is required to perform work in a higher grade than his/hers, he/she shall be notified in writing.
(b) If he/she performs for not less than 20 consecutive days, he/she shall be entitled to an acting allowance of not less than the difference between his/her salary and the entry point of the grade he/she shall be entitled to an acting allowance of not less than the difference between his/her salary and the entry point of the grade he/she is acting.
(c) If he/she acts continuously in that position for a period of three (3) months he/she shall be confirmed in that position permanently, provided that initial probation period may be extended by another 3 months by the employer.
24. PROMOTION
Promotion from one grade to another is not automatic and shall be decided upon by the Company taking into account the job done and the employee's educational attainment, length of service and standard of work.
25. GRATUITY
An employee whose services are terminated by the Company shall be paid gratuity at the rate of 16 days for each completed year of service.
26. RETIREMENT AGE
Employees may retire under the following conditions;
(i) Compulsory retirement on attaining 55 (fifty five) years.
(ii) Employees must also be retired if declared medically unfit to perform the duties by a dully recognised doctor.
(iii) An employee may also retire from employment (service) at the age of 55 years.
(a) Provided a minimum of five (5) years of continuous service with the company has been completed.
(b) An employee with over five years service shall give/receive 2 months notice or payment in lieu thereof.
(c) An employee with over 10 years of service shall receive/ give 3 months notice or payment in lieu thereof.
(d) Employee with more than fifteen (15) years shall receive/give 5 months notice or payment in lieu thereof.
(e) Payment of wages, overtime and any other remuneration to which the employee may be entitled, calculated until the day on which the employee ceases to work.
(f) Pro-rata leave entitled shall be paid the completed years.
27. BONUS
The customs and practice shall continue.
28. EFFECTIVE DATE AND DURATION
This agreement shall be effective from 1st July, 2011, and it shall remain in force for a period of 24 months. Thereafter, it shall continue in force until it is amended by mutual agreement between the two parties. Provided that any party wishing to amend it gives the other party one-month's notice of such intention giving in writing the details of the amendment so required.
SIGNED:FOR AND ON BEHALF OF THE COMPANY
..................................................................
MANAGING DIRECTOR
SIGNED: FOR AND ON BEHALF OF THE UNION
...................................................................
JACKSON M. KYUNUVE
FOR: SECRETARY GENERAL
..................................................................
KENNEDY N. AMIRA
CHIEF SHOPSTEWARD - YAYA BRANCH
...................................................................
HENRY MATUNDA
CHIEF STEWARD – LAVINGTON BRANCH
...................................................................
PASTIN OKIAMBA
CHIEF SHOPSTEWARD - NGARA BRANCH
................................................................................
MUSEMNI KENNEDY
CHIEF SHOPSTEWARD – A.B.C. BRANCH
....................................................................
CHRISTOPHER MUTUKU
CHIEF SHOPSTEWARD - MUTHAIGA BRANCH
.......................................................................
CHUPHI SHAMRI KIMJI
CHIEF SHOPSTEWARD – DIANI BRANCH (MOMBASA)
IN THE PRESENCE OF
......................................................................
L.W. KARIUKI
PRINCIPAL EXECUTIVE OFFICER – F.K.E.
Signed at Nairobi this ................... day of ............................ 2011