IN THE MATTER OF WAGES, SALARIES AND OTHER CONDITIONS OF SERVICE AT THE COMPANY
1. PREAMBLE
WHEREAS by terms of the Recognition and Negotiating Procedure Agreement signed between the employer and the Union it is agreed that the employer has recognized the Union as a properly constituted body and sole Labour organization representing the interests of the employees of the Company.
AND WHEREAS it is agreed that the rates of wages, salaries and general terms and conditions of employment be paid and provided to employees by the Employer shall be as negotiated and agreed between the two parties that is the Employer and the Union. Therefore the Employer and the Union meeting together in a free heart and voluntary association agree to enter into agreement as stated hereunder in the matters of Terms and Conditions of service negotiated between them at the Joint Negotiating Committee.
2. APPLICATION
I. This agreement shall apply to all unionisable employees of the Employer named in the Memorandum of Agreement and who are paid up members but shall exclude employees defined in the Industrial Relations Charter Appendix "C".
II. And those who are not members and are benefitting from this CBA has to pay agency fee as per Section 49 of Labour Relation Act 2007 which is agreed at the rate of 2.5%.
3. PROBATIONARY PERIOD
(a) The first three months of an employee's engagement shall be treated as probationary
period. Provided that the probation period may be extended with mutual agreement between employer and the Union for a further period of three months.
(b) On successful completion of the probationary period an employee shall be confirmed on 1 year contract.
(c) 250 ( two hundred and fifty ) employees those who are 4 years and above to be made permanent by end of January 2014.
(d) Confirmation on permanent employment shall be in writing.
(e) Either party willing to terminate the contract during the probationary period shall do so by giving seven (7) days’ notice or paying seven (7) days salary in lieu of notice .
4. APPOINTMENT LETTERS
Upon successful completion of the probationary period the Employer shall issue an appointment letter stipulating the terms and conditions of service of an employee.
5. HOURS OF WORK
(a) The normal working week shall consist of forty five (45) hours of work per week.
(b) An employee will be entitled to one rest day during seven ( 7) days working week to be taken or to be scheduled by the employer .
(c) It shall be at the right and discretion of the employer to program work schedule for all employ
6. OVERTIME
(a) Every employee ( excluding management staffs) who works for any time in excess of the normal hours of work specified in Clause 5 above shall be entitled to be paid for the overtime, thereby worked at the following rates:-
(i) One and half times the basic hourly rate in respect of any time worked in excess of the normal hours of work per week.
(ii) For time worked on an employee's normal rest day and statutory public holidays at twice the normal hourly rate.
(b) Where an employee is required to work on a Public Holiday or on his/her rest day the employer will give such an employee one day notice.
7. TARGETS
(i) The Employer through the expertise of production manager or an Experienced Industrial Engineer or a competent production staff shall establish production targets for various styles in the 1 and / or other areas of operation like cutting, washing, finishing etc. whenever so fixed, the targets question shall remain constant for the particular style and employees concerned shall be required to achieve the targeted production for the regular hours of the day, within that time.
(ii) An employee, who fails to achieve the target during the normal time for no acceptable reas may be allowed to do so at his /her own time on the same day.
(iii) The union will have the right to involve a technical officer from the ministry of the labour a joint adjudication exercise if the set targets are deemed to be high. While such an exercise is in process, the employee shall be expected to continue working towards achievement of the set targ
8. HOUSE ALLOWANCE
Every employee who is not provided with free housing accommodation shall be entitled to housing allowance at the rate of Kshs. 1600/= per month or 15% of the basic minimum wage of his/her grade whichever is higher.
9. ANNUAL LEAVE
(a) After the completion of twelve (12) month's continuous service with an employer, an employee will be entitled to 25 working days leave with full pay.
(b) Such leave will be taken at a time and duration convenient to the Employer but the individual employee's circumstances shall be taken into consideration.
(c) Where employment is terminated after the completion of three (3) or more months continuous service during any leave earning period, an employee shall be entitled to two (2) days pro-rata leave with pay for each completed months of service.
7. LEAVE TRAVELLING ALLOWANCE
(a) After each period of twelve (12) months continuous service an employee will be entitled to Kshs. 1000/= leave travelling allowance when proceeding on leave.
(b) Where an employee is required to work at the request of his Employer instead of taking his/her annual leave in that year, such an employee shall be paid his full leave entitlement in cash, and leave travelling allowance as per paragraph (a) of this Clause.
(c) Where an employee encashes his annual leave voluntarily he will automatically forfeit the leave travelling allowance.
8. COMPASSIONATE LEAVE
(a) An employee may be granted unpaid compassionate leave on application at the discretion of the Employer up to a maximum of Ten (10) days in each calendar year.
(b) Compassionate leave may be by prior arrangement between the employee and the Employer and shall be treated as paid leave and subsequently set off against the employee's annual leave.
(c) The employer shall not unreasonably with-held such request.
9. PUBLIC HOLIDAYS
i. An employee shall be granted gazette Public Holidays with full pay.
ii. If public holiday occurs when an employee is on leave, the day will be added to the leave entitlement.
10. SICK LEAVE
After three (3) consecutive week's service with an Employer and subject to production of a medical certificate of incapacity from a medical practitioner in a registered hospital or a health center or dispensary approved by the Government/Company, an employee shall be entitled to sick leave with pay in any one year as follows:-
(a) Sick leave as per section 30 of employment act 2007 with pay in any one (1) year.
(b) Where an employee is hospitalized, physically ill, or/ and isolated cases an employee shall be entitled to;
First 30 days with full pay
Next 21 days with half day
Provided that an employee shall not be eligible for sick leave in respect of any incapacity due to gross negligence on his/her part and such leave shall not be carried over to the next year, provided, also that any sickness leading to SICK leave must be brought to the attention of the employer not later than 48 hours from the time of commencement of the sickness except the cases of admission.
11. CERTIFICATE OF SERVICE
Every employee shall be given a certificate of service by the Employer upon termination of his employment, unless such employment has continued for a period of less than four consecutive weeks. Every such certificate shall contain:-
(a) Name of employer and postal address
(b) Name of employee
(c) The date when an employment commenced
(d) The nature and usual place of employment
(e) The date when employment ceased
15. WARNING
An employee whose work or conduct is unsatisfactory or who otherwise commits default which in the opinion of the Employer does not warrant instant dismissal shall be warned in writing and the following procedures shall apply:-
(i) The first, second and third letters of warning shall be entered in the employee's record and the shopsteward informed accordingly. The third warning letters shall be copied to the branch secretary of his/her Union.
(ii) If an employee refuses to accept a warning letter the shopsteward shall be called to witness and if he/she refuses to accept in his/her presence she or he will be given the appropriate notice as per the termination Clause to terminate his/her employment.
(iii) If an employee who has already received THREE warning letters commits a FOURTH Defaults, he/she shall be liable to summary dismissal.
(iv) Appeals against Warning letters will be done within three (3) working days/period
Provided that an employee who completes three hundred and sixty five consecutive days from the date of last warning without further default, any warning entered in his/her employment record shall be deemed cancelled.
16. EMPLOYMENT MEDICAL TREATMENT RULES E.E LEGAL NO. 157/77
The Medical Treatment Rules of 1997 (Legal Notice No. 157/1977) shall apply.
17. MATERNITY AND PATERNITY LEAVE
(I) A female employee shall be entitled to three months (ninety consecutive days)
maternity leave with full pay provided that a female employee who has taken her maternity leave shall not forfeit her annual leave in that year. On production of medical certificate, a female employee maternity leave may be extended for another month without pay.
(ii) A female employee in receipt of the maternity leave shall not incur any loss of privileges or entitlement during such period (including leave allowance).
(iii) A male employee will be entitled to a paternity leave of two weeks in any one year upon production of an acceptable proof (NHIF Card for spouse name) that his wife has delivered a child.
18. SUMMARY DISMISSAL
Any of the following matters may amount to gross misconduct so as to justify the summary dismissal of an employee for lawful cause, but the enumeration of such matters shall not preclude the employer or an employee from respectively alleging or disputing whether the facts rise to the same, or whether any other matters not mentioned in this section, constitute justifiable or lawful grounds for the dismissal.
(a) If, without leave or other lawful cause, an employee absents himself from the place proper and appointed for the performance of his work.
(b) If, during working hours by becoming or being intoxicated, an employee renders himself unwilling or incapable properly to perform his work and a medical practitioner confirms the same.
(c) If, an employee willfully neglects to perform any work which it was his/her duty to perform, or if he/she carelessly and improperly performs any work which its nature it was his/her duty, under his contract, to have performed carefully and properly.
(d) If an employee uses abusive or insulting language, or behaves in a manner insulting to the Employer or to a person placed in authority over him by his/her employer.
(e) If an employee knowingly fails, or refuses, to obey a lawful and proper command which it was within the scope of his duty to obey including being asked to work overtime issued by the Employer or a person placed in authority over him by his employer.
(f) If in the lawful exercise of any power of arrest given by or under any written law, an employee is arrested for a cognizable offence punishable by imprisonment and is not within fourteen days either released on bail or on bond or otherwise lawfully set at liberty or
(g) If an employee commits, or on reasonable and sufficient grounds is suspected of having committed, a criminal offence against or to the substantial detriment of the Employer or his employer's property.
13. BASIC WAGES FDR NEW ENTRANTS
The basic minimum wage for an employee to be engaged after the commencement of this agreement shall be as follows.
BASIC MONTHLY RATES
| NO .Of CATEGORY | 1-12-2013 | 1-12-2014 |
1. Helpers, Cleaners, General workers, Messengers. Checkers, trimmers and Loaders |
10172 | 10,375.62 |
| 2. Line feeders, writers, fmal inspectors, mass production machinist, machine assistant, pressman, Laundry operator. | 11529.13 | 11,759.71 |
| 3. Driver (car, light vans) copy typist, sample makers | 13729.61 | 14,004.20 |
| 4. Cutters, pattern makers, General clerks, receptionist/telephone operator, assistant storekeeper, assistant supervisors | 15667.24 | 15980.58 |
| 5. Driver (medium sized vehicles) Supervisor. Quality controllers. | 17266.96 | 17,612.29 |
| 6. Accountant assistant, Cashier, heavy commercial driver’s salesman Driver. | 22953.79 | 23,412.86 |
| 7. Technician | ||
| - Ungraded | 13729.61 | 14,004.20 |
| - Grade three | 17266.96 | 17,612.29 |
| - Grade two | 18649.38 | 19,002.36 |
| - Grade one | 22953.79 | 23.412.86 |
20. GENERAL WAGE INCREAMENT
All unionisable employees in employment on the effective date of this Agreement will be entitled to general wage increase of 4% of their basic wage with effect from 1st December, 2013. Those unionisable employees who will be in employment on 1st Decemeber, 2014 will be entitled to a further wage increase of 2% with effect from that date.
21. PAYMENT OF WAGES
Payments of wages shall be made on or before 6th of succeeding month, on a working day though bank transaction. Should such payment day fall on a Sunday or Public Holiday, such wages shall be paid on the last day prior to such Sunday or Public Holiday.
22. PROTECTIVE CLOTHING
The Employer shall provide two pairs of protective clothing, two pairs of rubber shoes and one gear wherever applicable to every employee. Where uniform has been provided the employer shall provide one bar of soap per month or launder the uniform. Protective clothing and gear shall always remain Company's property.
23. SUSPENSION
The Employer reserves the right to suspend from employment without pay any employee upto a maximum of SEVEN days pending investigations into alleged gross misconduct or any other offence. Where an employee is exonerated from blame he/she be paid his withheld wages. If however he/she is found guilty of the offence his services will be summarily dismissed from the date of suspension.
24. NIGHT SHIFT ALLOWANCE
An employee who works on night shift, between 7.30 shift allowance of Ksh. 5.00 per hour worked and Ksh
25. TOOLS
It shall be responsibility of the Employer to provide working tools to the employees which shall remain always Employer's property.
26. RETIREMENT AGE
The normal retirement age for all employees will be 60 years PROVIDED that an employee may retire on medical grounds on recommendation by a doctor.
27. REDUNDANCY
” Redundancy "means the loss of employment, occupation, job or career by involuntary means through no fault of an employee involving termination of employment at the initiative of the employer, the services of an employee are superfluous, and the practices commonly known as abolition of office, job or occupation.
Where the employment of an employee is to be terminated on account of redundancy, the following principles shall apply:-
(a) The Union and the Labour Officer of the area shall be informed of the reasons for and the extent of, the intended redundancy.
(b) The Employer shall have due regard to Principle of "LAST IN FIRST OUT” seniority in time and to the skill, ability and reliability of each employee belonging to a particular category of employees affected by the redundancy.
(c) No employee shall be placed at a disadvantage for being or not being a member of a trade union.
(d) Any leave due to any employee who is declared redundant shall be paid for in cash.
(e) Those affected by redundancy shall be considered for the following:-
ii. Receive normal specified period of notice as per termination Clause.
iii. Receive cash in lieu of accrued leave not taken.
iv. Receive severance pay at the rate of SEVENTEEN ( 17) days for each completed year o service.
NB: ANY PERIOD OF SERVICE IN EXCESS OF 10 MONTHS WILL BE COUNTED AS. FULL YEAR FOR THE PURPOSE OF CALCULATING REDUNDANCY BENIFITS
24. PAID EDUCATIONAL LEAVE
The Employer shall grant paid education leave to shopstewards upon request of Union General Secretary up to of 11 days in a year and this shall be limited to seminars and workshops related to union activities PROVIDED that where special considerations dictates, paid education leave may granted upto a maximum of FOURTEEN (14) days.
25. DEATH OF AN EMPLOYEE
Upon the demise of an employee while still in service, the Employer will provide Kshs.
Fifteen thousand shillings only (15, 000/=) towards the funeral and burial arrangements of the dead employee.
26. NIGHT TRANSPORT.
Employees who are required to end a night shift or overtime between the hours of 8.00 p.m. and 5.00 a.m. will be provided with free transport by the Company.
That, in case where the employer cannot provide free transport as stated herein above, then the, employer shall pay a night transport allowance of Kshs. 80 shillings only on each occasion an employee leaves work at such hours of the night.
27. GRATUITY
After completion of THREE (3) year of continuous employment with employer, an employee shall be entitled to gratuity on death and normal retirement at 60 years of age or retirement on medical grounds. However, no employee shall qualify for gratuity if he/she is dismissed for gross misconduct.
32. ACTING ALLOWANCE
When an employee is required in writing to act in a position of a higher grade for a period of 1 month and above, he/she shall be paid the different between the minimum salaries of his/her grade and the basic minimum salary of the job in which he/she is acting.
33. TERMINATION OF EMPLOYMENT
Upon successful completion of probationary period and confirmation of employment it shall be a condition that the contract of employment shall be terminable by either party by giving:-
i. Where an employee’s service is between 1 to 7 years the notice period must be not less thi one month’s notice to be given by either party in writing or otherwise by payment by either party of one month’s salary in lieu of notice.
ii. Where an employee’s service is between 8 and above years the notice period must be not 1 than two months’ notice to be given by either party in writing or otherwise by payment by either party of one month’s salary in lieu of notice.
34 HIV/AIDS
The Employer will observe section 5 (3) of the Employment Act 2007.
35. SEXUAL HARRASSMENT
The Employer shall observe section 6 of the Employment Act, 2007.
36. EFFECTIVE DATE AND DURATION OF THE AGREEMENT
The effective date of this agreement shall be 1st December 2013, and it shall remain in force for two years. Thereafter, it shall continue in force until it is amended by mutual agreement between the two parties, provided that the party wishing to amend it gives the other party one month notice of such intention giving in writing the details of the amendment required.
37. BONUS
Within a period of six (6) months, Ksh. One thousand five hundred(l 500) shall be paid as bonus.
SIGNED FOR AND ON BE HALF OF MANAGEMENT
THOMAS PUTHOOR
DIRECTOR
Mr RAKESH
GENERL MANAGER
SIGNED FOR AND ON BE HALF OF UNION
GENERAL SECRETARY
AG. BRANCH SECRETARY
DATE: 04 DECEMBER 2013