COLLECTIVE BARGAINING AGREEMENT
BETWEEN
GENERAL MOTORS EAST AFRICA LTD
(Hereinafter referred to as the Company)
AND
AMALGAMATED UNION OF KENYA METAL
WORKERS
(Hereinafter referred to as the Union)
1.PREAMBLE
The parties to this agreement, meeting together in free and voluntary association, have determined to regulate the relations between them in the interest of the promotion of sound industrial relations, the economic well being of the industry, its workers and management. In order to achieve these objectives they have agreed to enter into the fore going Common Agreement freely and voluntarily negotiated between them at the joint negotiating committee.
The Parties recognize that this Agreement imposes Labour Relations responsibility on the Company, the Union and its members. Both the Union and the Company undertake to observe the provisions of the Industrial Relations Charter and this Agreement.
2.UNION LEVEL OF REPRESENTATION
Level of Union representation shall be in accordance with the provisions of the revised Industrial Relations Charter. For the purpose of this Agreement it has been determined that the Unionisable cadres comprise of hourly employees who are classified between Grade 1 and Grade 3.
3.DEDUCTIONS OF UNION DUES
The deduction of the Trade Union dues through the check – off system is governed by part vi of the Labour Relations Act, 2007, Section 48.
4.AGENCY FEES
The deduction of Agency fees in the implementation of the Collective bargaining Agreement shall be as stipulated in the Labor Relations Act, 2001, Section 49.
5.PROBATIONARY PERIOD
An employee shall be considered to be on probation as follows:-
a) Unskilled worker – two (2) months during which time either party may give the other party one week’s notice to terminate employment.
b) Skilled Workers – three (3) months during which time either party may give the other party two (2) weeks’ notice to terminate employment.
6.HOURS OF WORK
The normal working week shall consist of not more than forty (40) hours of work spread over not more than six (6) days of the week.
7.OVERTIME
Overtime shall be worked at the discretion of the Company. However, an employee’s inability to work such overtime shall be considered by Management favourably.
Overtime shall be paid at the following rates:-
•For time worked in excess of normal number of hours per week at time worked x 1.5 Basic Hourly Rate.
•For time worked on Sunday or an employee’s normal rest day or on gazetted Public Holiday at time worked x 2 Basic Hourly Rate.
8.MATERNITY AND PATERNITY
Maternity and Paternity Leave shall be granted as follows:
a) Female employees shall be entitled to three months maternity leave with full pay and shall not forfeit their annual leave in that year.
b) Female employees proceeding on their Annual Leave will be entitled to Leave Travelling Allowance as provided for in Clause No. 15 of this Agreement.
c) A male employee shall be entitled to two weeks paternity leave with full pay.
In both cases, birth notification should be produced.
9.COMPASSIONATE LEAVE
Where an employee has exhausted normal leave days and he/she looses an immediate family member [Child or Spouse] 5 consecutive days in a calendar year will be granted as compassionate leave with pay where necessary.
10.ANNUAL LEAVE
Annual leave, exclusive of gazetted Public holidays, Sick leave and Saturdays (where the 40 hours specified in clause 8 above are worked over 5 days in a week) shall be granted on the following basis:-
a) After twelve (12) months continuous service – 23 working days with full pay for employees with up to 10 (ten) years continuous service and 25 days with full pay for employees with more than 10 (ten) years continuous service.
b) An additional two (2) days unpaid leave in respect of travelling may be granted.
c) An employee whose service is terminated shall be entitled to leave as follows:-
(i) After the probationary period and before the completion of nine (9) months service to pro-rata leave.
(ii) After the completion of nine (9) months service in any one leave year to the full period of annual leave.
(iii) An employee whose services are terminated for Gross Misconduct or through Resignations shall only be entitled to his earned leave.
d) If on Termination of service, an employee is given pay in lieu of Notice, he shall be paid cash for leave due on pro-rata basis.
e) When an employee is recalled from his/ her Annual leave before expiry, he/ she shall be entitled to an amount equivalent to Leave Travelling Allowance which is Kshs. 4,189
11.SICK LEAVE
After two [2] months’ continuous service, an employee with up to two years service shall be entitled to 30 days of sick leave with full pay and thereafter to 30 days of sick leave with half pay in each period of twelve months consecutive service.
Provided that:
(i) An employee with more than two and up to five years service shall be entitled to 30 days sick leave with full pay and thereafter to 90 days sick leave with half pay in each period of twelve months consecutive service,
(ii) An employee with more than five years of service shall be entitled to 60 days sick leave with full pay and thereafter to 90 days sick leave with half pay in each period of twelve months’ consecutive service.
(iii) The employee shall not be entitled to such payment unless he/she produces to the employer a certificate of incapacity, covering the period of sick leave claimed, signed by a qualified medical practitioner or a person authorized by him in writing and acting on his behalf, in charge of a dispensary or medical aid centre.
(iv) An employee shall not be eligible for sick leave under this paragraph in respect of any incapacity suffered due to gross neglect on his part.
An employee who qualified for sick leave with full pay provided for in sub-paragraph [1], and who is in consequence detained in hospital, shall be entitled to an extension of such sick leave with full pay for a period not exceeding sixty days whilst so detained in hospital.
12.ACTING ALLOWANCE
a.) Where an Employee is required to act on a higher grade for a period of not less than eight days, shall be paid in addition to his Basic Minimum Wage an Acting Allowance equal either to twenty five percent of the basic wage of the employee for whom he is acting or the full basic wage of that employee whichever is the lesser.
b.) Where an Employee is appointed to act in a position for at least eight (8) consecutive days, a written letter to be issued to the employee on appointment or before expiry of the period.
13.LEAVE TRAVELLING ALLOWANCE
Payable annually only when an employee proceeds on leave:
All Grades: - Kshs. 4,189/-
14.HOUSE ALLOWANCE
Housing Allowance shall be paid at the following monthly rate:-
w.e.f 01/01/2013 to 31/12/2013 All Grades - Kshs. 8,500
w.e.f 01/01/2014 to 31/12/2014 All Grades – Kshs. 10,000
15.SAFARI ALLOWANCE
Payable when an employee is directed to work outside the Municipal boundary of his or her normal place of employment.
Breakfast- Kshs. 320/=
Lunch-Kshs. 450/=
Supper-Kshs. 450/=
Night stop-Kshs. 1,430/=
TOTAL-Kshs 2,650/=
16.SHIFT ALLOWANCE
In this Clause the word “SHIFT” shall mean the following read together:-
a)A Shift that is different from an employee’s normal shift.
b)A Shift that overlaps night hours
c)A shift for which the hours of work are no less than those stipulated in the Collective Bargaining Agreement.
d)A shift that excludes Security Personnel.
An employee who is required to work on shift as defined above shall be entitled to payment of Shift Allowance at the rate of Kshs.87/- per day during the period he/she is on shift.
17.BAGGAGE ALLOWANCE
An employee who retires from service as provided for in this Agreement shall be entitled to Baggage Allowance equivalent to 100% of a month’s Basic Salary applicable at the time of retirement.
18.LETTERS OF WARNING OR WARNING PROCEDURE
a) An employee who is guilty of an offence other than gross misconduct or other lawful cause of dismissal, may be given a written warning which shall be entered in the employee’s employment Record Card and shall remain valid for a period of twelve months from the date of issue.
b) If within the twelve months period, an employee commits a similar or any other offence which does not warrant dismissal, he will further be warned in writing which will be entered in his employment Record Card and the two warnings shall remain valid for a period of twelve (12) months from the date of the second warning.
c) If within this twelve months period an employee commits a further offence, which does not warrant Summary Dismissal, he will be issued with a final letter of warning which will make him liable to SUMMARY DISMISSAL for any other offence which he may commit thereafter.
d) The final letter of warning will remain valid for a period of one year from the date of issue.
e) Copies of ALL warning letters shall be sent to the Senior Shop Steward of the Company or Branch or to another person acting as such during his absence and in addition, a copy of the FINAL warning letter shall be sent to the General Secretary of the Union.
f) Any employee whose services are terminated in accordance with this Clause will be entitled to the following payments:-
(i) Pay for days worked prior to the termination of services.
(ii) Cash for leave earned on pro-rata basis.
(iii) Cash for leave Travelling Allowance on pro rata basis.
19.SUSPENSION
When an employee is suspended from duty for any reason, such suspension shall be on full pay unless and until the matter is placed in the hands of the Police, in which case the suspension shall from then onwards be without pay pending the outcome of the Police action.
20.NOTICE OF TERMINATION OF EMPLOYMENT
After the completion of the probationary period, notice of termination of employment shall be given by either Party to the other in writing in accordance with the length of service as follows:-
Less than five years service - one month notice or one month’s pay in lieu thereof.
Five years but less than ten years of service – two months notice or two months pay in lieu thereof.
Ten years of service and above – three months notice or three months pay in lieu thereof.
Payment in lieu of notice shall include applicable Housing Allowance.
An employee whose services are terminated by the employer shall be paid half a month’s basic pay service gratuity for each completed year of service or as provided for under the Company’s Provident Fund or Pension Scheme.
21.REDUNDANCY
a) In accordance with the Employment Act (2007) an employer shall not terminate a contract of service on account of redundancy unless the employer complies with the following conditions:-
(i) An Employer wishing to declare any redundancy shall advise the General Secretary of the Union in writing giving details of the reasons and the number of employees involved.
(ii) If the Union wishes to contest the necessity for such redundancy, it shall do so in writing and within (15) fifteen days of receipt of the above advice, meet employers to discuss the matter.
(iii) Where an employee is not a member of a Trade Union, the employer notifies the employee personally in writing and the labour officer.
(iv) The employer has, in the selection of employees to be declared redundant had 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.
(v) Where there is in existence a collective agreement between an employer and a trade Union setting out terminal benefits payable upon redundancy, the employer has not placed the employee at a disadvantage for being or not being a member of the Union.
b) The Principles covering redundancy as set out in the Employment Act, 2007 are accepted by both parties.
c) Redundant employees will be entitled to payment in lieu of notice in accordance with Clause No.21 of this agreement.
d) Any Annual leave due to an employee declared redundant shall be paid for in cash in addition to severance pay.
e) An employee declared redundant shall receive severance pay at the rate of 22 days pay for each completed year of service and Pension as established by the Company.
f) Redundant employees will be given first consideration according to their qualification for re-engagement by the Company should a vacancy arise.
22.RETIREMENT
a. Retirement Age
An employee shall retire at the age of 55 years whereupon all Retirement Benefits shall be paid. However, the employer and the employee may agree that the employee works beyond 55 years for such period as shall be mutually agreed upon and retire and collect Retirement Benefits at the end of such period.
If the employee has retired and collected Retirement Benefits at the age of 55 years, the employee shall for the period he works thereafter, be treated as a new employee.
b. Early Retirement
c.
However, an employee who wishes to retire from service after attaining the age of 50 years may apply in writing stating his wish to retire. Such applications must be received by Management at least three months before the intended date of retirement. Management will consider the application and their decision on it shall be final.
d. Retirement on Medical Grounds
An employee retired on medical grounds due to ill health as certified by the company doctor to be unfit to work shall be entitled to Retirement Benefits.
e. Death Prior To Retirement
Retirement benefits shall be applicable in the event of death of an employee.
f. Retirements Benefits
On retirement an employee shall be entitled to the following benefits;
(i) Benefits shall be calculated as per the General Motors East Africa Staff Retirement Benefits Scheme to which Unionisable employees belong.
(ii) Pay for days worked up to and including the day of retirement.
(iii) Cash for leave due
(iv) The proportionate housing allowance shall be payable together with basic pay if the
Employee’s application for early retirement is accepted by the employer.
23.MEDICAL COVER
As per Company Medical Insurance cover policy.
24.BEREAVEMENT
To be administered as per General Motors East Africa Bereavement Policy.
25.BASIC MINIMUM WAGE
Grade W.e.f 1.1.2013 (10%) W.e.f. 1.1.2014 (10%)
1.Kshs.29,123/=Kshs. 32,035/=
2.Kshs. 34,848/=Kshs. 38,333/=
3.Kshs. 44,701/=Kshs. 49,171/=
26.CASUAL EMPLOYMENT
A Casual employee shall be confirmed to regular monthly terms of employment after working consecutively or intermittently for 90 days in one year.
27.EFFECTIVE DATE AND DURATION
This Agreement shall be effective from 1st January 2013 and shall remain in force for a period of twenty four months.
During the period of this Agreement, neither the Company, the Employees nor the Union shall seek to vary, modify, nullify or add to any of the terms of service of this Agreement in any way whatsoever.
In the event a new Agreement has not been concluded between the Parties hereto, the Terms of Service shall continue in force in all respects until the date on which any such new Agreement is signed.
FOR GENERAL MOTORS E. A.FOR THE UNION
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R. KAVASHEJ. MAINA
MANAGING DIRECTOR (GMEA) GENERAL SECRETARY (AUKMW)
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F. WASIKET. MAOBE
GENERAL MANAGER INDUSTRIAL RELATIONS
HUMAN RESOURCES (GMEA)OFFICER (AUKMW)
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A.OLIECH
CHIEF SHOPSTEWARD
GENERAL MOTORS E.A. LIMITED
IN THE PRESENCE OF
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GEORGE AMBUCHE
FEDERATION OF KENYA EMPLOYERS [FKE]
SIGNED IN NAIROBI THIS ……….. DAY OF …………………2013
