PREAMBLE:
The terms and conditions set out of this Agreement shall be observed by the Company and shall apply to all unionisable employees as provided in the Memorandum relative to Recognition Agreement within the terms of COTU/FKE current Agreement.
1. MINIMUM WAGES
The minimum wages and housing allowances applicable to the company will be as follows:-
| Minimum Wage | House Allowance | |
| Grade I | ||
| Unskilled labourers)
Cleaners) Day Watchman) |
4,159 | 2,100 or 16% |
| Grade IIA | ||
| Night Watchman | 4,991 | 2,100 or 16% |
| Grade IIB | ||
| Turnboy | 4,852 | 2,100 or 16% |
| Grade IIIA | ||
| Plant Operator)
Laboratory Attendant) |
7,487 | 2,100 or 16% |
| Grade IIIB | ||
| Driver – vehicles
2 to 7 tonnes |
10,537 | 2,100 or 16% |
| Grade IIIC | ||
| Driver – vehicles
Over 8 tonnes |
15,251 | 2,100or 16% |
| Grave IVA | ||
| Officer Clerk Junior )
Copy Typist) Driver – cars and Light vans) |
8,734 | 2,100 or 16% |
| Grade V | ||
| Ungraded Artisans |
| 7,903 | 2,100 or 16% |
2. WAGE INCREASE
All employees will receive wage increases for the first year and further increases for the second year of this Agreement calculated on their actual earnings. The increases will be at the rate of 10% for the first year and a further 10% for the second year for employees earning less than Kshs.12,500/= per month, 10% for the first year and a further10% for the second year for employees earning between Kshs.12,500/= and above per month.
3. HOUSING ALLOWANCE
Where the company cannot be able to provide accommodation, the employees shall be paid Housing Allowance of 16% of the basic salary with a minimum of 2,100/-, whichever is higher.
4. ANNUAL LEAVE
All employees will be granted 24 working days leave.
In the event of a gazetted public holiday falling within the leave period, this will be added to the leave entitlement. The date of an employee's leave entitlement is the anniversary of the date of his employment.
5. LEAVE TRAVELLING ALLOWANCE
An employee will be entitled to leave travelling allowance of KShs.2400/= for employees with less than 20 years service and Kshs. 2,600/- for employees with over 20 years service.
6. SICK LEAVE AND MEDICAL TREATMENT
After two month's continuous service with an employer an employee shall be entitled to a maximum of sixty (60) days' sick leave with full pay and 30 days with half pay in each period of twelve month's consecutive period of service. Provided that employees with more than 10 years service will be entitled to 35 days with half pay
And Provided that:-
(a)(i) an employee shall not be entitled to such payment unless he produces to the employer a certificate of incapacity covering the period of sick leave claimed signed by a medical practitioner in charge of dispensary or medical aid centre, or by a person authorised by him in writing and acting on his behalf;
(ii) an employee shall not be eligible for sick leave under this paragraph in respect of any incapacity due to gross neglect on his part.
(b) In cases of prolonged illness, the Company shall notify the Union with a view to discussing the fate of the employee.
(c) Employees shall be treated by a doctor appointed by the employer. The employer will pay medical expenses incurred by the employees subject to a maximum of Kshs.5,000/= for employees with up to 20 years service and Kshs. 7,000/- for employees with over 20 years and above.
7. TERMINATION OF EMPLOYMENT
(a) It shall be a condition of every contract of employment that the contract shall be terminable by not less than one month's notice to be given by either party in writing, or otherwise by the payment, by either party in lieu of notice, of not less than one month's wage; but nothing shall prejudice the right of either party to terminate a contract summarily for lawful cause.
Employees with up to 10 years' service will be entitled to two months notice or two months' wages in lieu.
Employees with over 15 years service will be entitled to three months notice or three months wages in lieu.
However, when an employee with service of 15 years and above has to leave on medical grounds, certified by a medical doctor, he/she will be entitled to six months pay.
Employees wishing to leave on their own accord after serving for over 15 years will be eligible to 3 months' pay.
(b) An employee terminated for reasons other than gross misconduct shall be eligible for payment of terminal benefits at 15 days pay for each completed year of service.
8. OVERTIME
Overtime shall be payable at the following rates:-
(a) for time worked in excess of the normal number of hours per week at one and one-half times the normal hourly rates;
(b) for time worked on the employee's normal rest day or public holiday at twice the normal hourly rate.
9. HOURS OF WORK
The normal working week shall consist of 44 hours of work spread over five days of the week.
10. PROBATIONARY PERIOD
The first three months of engagement shall be treated as probationary period. During this period, services shall be terminable by either party by 10 days notice or pay in lieu.
11. ACTING APPOINTMENT
(a) If an employee is appointed to work in a higher grade for more than a day he will be paid acting allowance of the difference between his/her wage and that of the higher grade in which he/she has been appointed to act.
(b) If an employee acts in a higher position for more than three months he/she will be confirmed in that position.
12. PROTECTIVE CLOTHING
The provisions of the Occupational Safety and Health Act 2007 of the Laws of Kenya will apply. All employees will be provided with protective clothing when worn out.
13. PAID LEAVE FOR TRADE UNION COURSES AND MEETINGS
(a) The Company agrees at its convenience to grant 3 days paid leave in each calendar year for Union Officials and Delegates appointed by the Union from the Company to attend the Kenya Petroleum and Oil Workers' Union National Trade Union Conference.
Provided that:-
The names of the officials and delegates to attend the conference shall be submitted to the Company in writing not less than 15 days before the leave is required to commence
(b) The Company at its convenience agrees to grant leave of up to 7 days with full pay to a union member sponsored by the Union to attend educational seminars and courses provided the names of the member shall be submitted to the Company in writing not less than 15 days before leave eave required is to commence. In the event that any particular course lasts for more than 7 days then it shall be a matter of negotiation between the Company and the Union.
(c) Such leave under (a) or (b) shall not be accumulated.
14. REDUNDANCY
Redundancy shall be subject to the Labour Relations Act 2007 and the Employment Act 2007 and the following procedure shall apply:-
a) the Union of which the employee is a member and the Labour Officer in charge of the area where the employee is employed shall be notified of the reasons for, and the extent of the intended redundancy;
b) the employer shall have due regard to seniority in time and to the skill, ability and reliability of each employee of the particular class of employees affected by the redundancy;
c) no employee shall be placed at a disadvantage for being or not being a member of the trade union.
d) any leave due to any employee who is declared redundant shall be paid off in cash;
e) an employee declared redundant shall be entitled to one month's notice or one month's wage in lieu of notice;
f) an employee declared redundant shall be entitled to severance pay at the rate of not less than 16 days pay for each completed year of service.
15. GRIEVANCE PROCEDURE
Stage I: 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 I, the employee may refer the matter to his senior Supervisor. At this stage he may be represented by the union shopsteward.
Stage III: Failing a satisfactory solution within two working days after the matter has been raised at Stage II, the employee will refer the matter to the Union General Secretary for discussions with the Manager. If both parties have exhausted the above machinery and fail to reach a settlement, then the provisions of the Trade Disputes Act, shall apply.
16. GAZETTED PUBLIC HOLIDAYS
The following gazetted Public Holidays are granted with pay:-
(a) New Year's Day(g)Idd-Ul-Fitr
(b) Good Friday(h)Independence Day
(c) Easter Monday(i)Christmas Day
(d) Labour Day(j)Boxing Day
(e) Madaraka Day(k)Mashujaa Day
It is also agreed that any Government announcement in respect of Gazetted Public Holidays shall cause automatic amendment to this list to reflect the current position.
17. UNION MEMBERSHIP
Both parties recognize that this agreement imposes a serious and grave responsibility on the Company, the Union and its members. Both parties realise that the responsibilities imposed on them can only be fulfilled if a high standard of organisation is maintained among employers and employees.
The question of union membership is entirely a matter of individual choice and membership or non-membership is a factor which will not affect either the employment or the continued employment or the career prospects of the individual employee.
18. LEVEL OF UNION REPRESENTATION
The level of union representation shall be in accordance with the provisions of the Industrial Relations Charter currently in force or which may come in force.
19. CHECK OFF
The check off system will be governed by the Labour Relations Act 2007.
20. COMPASSIONATE LEAVE
(1) An employee desiring to take leave on compassionate grounds shall, by prior arrangement with the employer be granted such leave up to his earned leave entitlement under paragraph 4 and 2 days out of such leave shall not be set off from his annual entitlement where the leave is necessitated by loss of immediate member of family, that is, father, mother, a spouse or children registered with the company. Employees will on return from leave present to employer a letter from their local sub-chief or chief confirming the death.
(2) An employee may, in addition to the leave provided for in sub-paragraph (1), be granted five days' compassionate leave without pay in any one year.
21. LOCAL TRANSPORT
Where an employee is called from his place of residence to work overtime on his rest day, his day off or on a public holiday he will be provided with transport. In the event that transport is not provide the employee shall be paid Kshs.60/- for that day.
22. MATERNITY LEAVE/PATERNITY LEAVE
A female employee shall be entitled to three months maternity leave with full pay.
Provided that:-
(i) a female employee who has taken three months maternity leave shall not forfeit her annual leave in that year.
(ii) Child-birth in respect of a female employee shall not be deemed to be sickness as provided for under paragraph 6, and the employer shall not be required to meet medical costs incurred thereon.
iii) a female employee who takes maternity leave shall not incur any loss of privileges during such period.
iv) a male employee shall be entitled to 14 days paternity leave.
23. WARNING LETTER
An employee whose work or conduct is unsatisfactory or who otherwise commits a misconduct which, in the opinion of the employer, does not warrant instant dismissal shall be warned in writing and the following procedure shall apply:-
(a) the first and second warnings shall be entered in the employee's employment record and the Branch Secretary and the Shopsteward of his Union shall be informed accordingly.
(b) the second warning shall be copied to the General Secretary of his Union;
(c) if an employee who has already received two warnings commits a third misconduct he shall be liable to summary dismissal.
Provided that where an employee completes two hundred and ninety two working days from the date of the second warning without further misconduct any warning entered in this employment record shall be cancelled.
24. MEAL ALLOWANCE
When an employee is required by the Company to work outside his working area for any period which includes any normal meal times or to spend a night away from his base on Company duty he will be paid the appropriate allowance as listed below:-
Breakfast (before 6.00 a.m.): 131.00
Lunch (between 1.00 and 2.00 p.m.): 170.00
Dinner (after 7.30 p.m.): 220.00
Lodging: 465.50
25. HEALTH AND SAFETY
The provisions of the Factories Act shall apply.
26. RETIREMENT AGE
(a) The normal retirement age is as follows:-
Men-60 years of age
Women-60 years of age
(b) The Company shall give three months' notice of retirement to their employees.
(c) Retiring employees will be entitled to gratuity as follows.
(i) employees with 5-10 years service - 16 days pay per every completed year of service.
(ii) employees with over 10 years service - 20 days pay per every completed year of service.
(d) Final payment will be made to the employee on his last day on the payroll.
(e) Subject to the consent of the employer, an employee who has served the company for a minimum period of ten (10) years who retires before attainment of the normal retirement age shall be entitled to gratuity as provided for in sub-clause (c) above.
27. UNIFORMS AND PROTECTIVE CLOTHING
(a) In cases where uniforms are necessary, such uniforms shall be provided by the employer. The type and style of uniforms will be decided by the employer, taking into account local conditions subject to the following conditions:-
(i) The uniforms shall always be worn and used during working hours.
(ii) The employer will maintain such uniforms (laundry and normal repairs) but loss or wilful damage by the employee will be charged to the employees for replacement or repair as the case may be.
iii) When a request for replacement of worn out uniform is made, the replacement should be effected immediately.
(b) Safety boots, gloves and other safety gear will be provided to workers whose sections or areas of work necessitate the provision of the same.
(c) The company will retain old uniforms needed for its use and return the balance to employees for their private use. However, uniforms issued for private use will be taken home by employees and not use on Company premises.
Old uniforms retained by the Company and used on the premises for certain jobs must be returned to the manager. Old uniforms remain the property of the Company until issued for private use to the employee.
28. SALARY IN ADVANCE
While proceeding on annual leave an employee may be paid the equivalent of 24 working days salary three days before he/she proceeds on leave.
29. ADVANCE PAYMENT
The Company will consider granting mid-month advances to employees on an individual's application and the merit of his case of up to 40% of the employee’s net earnings.
30. REFRESHMENTS
The Company will provide tea to workers twice a day.
31. SUPPLY OF MILK
Half litre of milk from KCC or any other recognised company will be supplied to employees working in sections where milk is desirable. This must be consumed on the premises of the Company and no money will be paid in lieu in the event that milk is unobtainable.
32. FUNERAL EXPENSES
The Company will contribute towards funeral expenses to the immediate family of the deceased employee amounts as follows:
Employees with up to 20 years service – Kshs.22,000/-
Employees with over 20 years service – Kshs.35,000/-
33. DURATION OF AGREEMENT
This Agreement shall come into force on the 1st June, 2011 and shall remain in force for a period of two years. Thereafter it shall continue in force until it is amended by mutual agreement between the parties.
SIGNED:FOR AND ON BEHALF OF THE COMPANY:
...........................................
MANAGING DIRECTOR
FOR AND ON BEHALF OF THE UNION:
...................................................................................................
CEPHAS O. OLALAAGNES A. ODONGODAVID CHEGE
GENERAL SECRETARYORG. SECRETARYSHOPSTEWARD
IN THE PRESENCE OF:
.....................................................
H.O. OKECHE
SENIOR EXECUTIVE OFFICER - F.K.E.
SIGNED IN NAIROBI THIS ........... DAY OF ................................... 2011
/jan