COLLECTIVE BARGAINING AGREEMENT Between HALL EQUATORIAL LIMITED And KENYA ENGINEERING WORKERS UNION
1. PREAMBLE
The Company and the Union, meeting in free heart and voluntary association, agree to and enter in the following agreement between them at the joint negotiation committee.
2. SCOPE OF AGREEMENT
This agreement shall be observed in respect of employees of the company other than those who are excluded by the terms of the current Industrial Relations Charter.
3. DEFINITION OF EMPLOYEE
It is understood and agreed that the word “employee” in this agreement shall cover all employees who are represented by the Union, and it shall mean both males and females unless specifically stated otherwise.
4. JOB EVALUATION
The parties agreed to embark on a job evaluation exercise and to implement the outcome.
5. PRODUCTIVITY
The Kenya Engineering Workers Union and Hall Equatorial Limited accept the need for increasing productivity in the company and agree to co-operate in order to achieve this goal.
6. BASIC MINIMUM WAGES
The basic minimum wages, exclusive of house allowance element, shall be effective from 1st January 2007 being 6% above the legal order and further 6% above the basic minimum effective from 1st January 2008 as calculated here below:
| 2007 | 2008 | ||
| Grade I | Baggage Porter, Cleaner, Sanitary Sweeper, Garden Sweeper, Linen Porter Attendant, office Cleaner, Store Porter, Office Messenger, Porter Still Room, General Labourer, Hand Helper, Day Watchman Room | 4,750/- | 4,850/- |
| Grade II | Turn Boy, Logger, Line Curter, Doorman, | 5,150/- | 5,250/- |
| Grade III | Night Watchman, Boiler Man, Floor Supervisor, Store Supervisor, | 5,300/- | 5,400/- |
| Grade IV | Assistant Tailor, Industrial Canteen, Slot Machine Operator. | 5,400/- | 5,500/- |
| Grade V | Laundry Operator, Junior Clerk, Ledger Clerk, Reservation Clerk, Machine Operator, Machine Setter, Time Keeper, Night Auditor | 6,150/- | 6,250/- |
| Grade VI | Typist Operator, Driver Car, Light Van, Typist Over 40 wpm, Ungraded Artisan, Shorthand Typist. | 6,400/- | 6,500/- |
| Grade VII | General Clerk, Telephone Operator, Receptionist. Store Keeper, Shift Header, Machine Operator, Revenue Controller, Account Clerk, | 7,300/ | 7,400/- |
| Grade VIII | Driver Medium Sized Vehicle, Head Boat, Port Steward, Artisan Grade Test III, Tailor | 8,000/- | 8,100/- |
| Grade IX | Artisan Grade II, Dryer Controller, Tractor Driver, Salesman, Senior Accountant | 8,800/- | 8,900/- |
| Grade X | Saw Doctor, Care Taker Building | 9,750/- | 9.850/- |
| Grade XI | Cashier, Driver of Heavy Commercial Vehicle, Artisan Grade I, Sales Man Driver | 11,500/- | 11,600/- |
7. HOUSING ALLOWANCE
Employees not housed by their employer shall be entitled to a house allowance of 15% of their basic salary subject to a minimum of Kshs.2000/- for the 1st year and Kshs.3,000/- for the second year.
8. WORKING HOURS
All employees shall normally be required to work for a total of 45 hours spread over six days per week. Hours worked in excess of this number shall be paid as overtime.
Day Watchman will work 48 hours a week
Night Watchman will work 54 hours a week
9. OVERTIME
The following overtime rates will apply:
Normal working days Time and half i.e. hourly rate plus
One half of hourly rate
Rest days.........................Double time the hourly rate
Gazetted Public Holidays................Double time or be granted a paid day off in lieu of the holiday
For the purpose of calculating payment for overtime in accordance with Clause (7) of this Agreement, the normal hourly rate of wages shall be deemed to be not less than one hundred and ninety five (1/195) of the employee’s basic monthly wage as the case may be.
For Security Staff, overtime shall be paid when a member of the security staff works on his “rest” day or on a public holiday.
10. SHIFT DIFFERENTIAL
Where the company operates a three 8-hour shift roster, employees whose shift starts or terminates at night shall receive, in addition to their normal earnings, a night shift allowance of Kshs.12/= (twelve shillings) per hour for any shift hours worked between 6.00 p.m. and 6.00 a.m. only. When the company operates two 12-hour shifts, employees on the night shift shall receive in addition to their normal earnings a night shift allowance of Kshs.12/= (twelve shillings) per hour for 8 (eight) of the hours worked between 6.00 p.m. and 6.00 a.m. and the remaining 4 (four) hours of the shift shall qualify for overtime rate. The shift differential allowance shall not be paid for hours worked for as overtime.
11. ANNUAL PAID LEAVE
Twenty-six (26) working days, excluding rest days and gazetted public holidays shall be granted on completion of each twelve months service and this will be on anniversary date of engagement of an employee subject to the employer’s convenience.
12. COMPASSIONATE LEAVE
An employee shall be given compassionate leave or leave of absence at the discretion of the company. Such leave shall not normally be refused or delayed and shall be either unpaid for shall be set off against his/her annual leave for the current year.
Note:
(i) Absence from work for the purpose of religious observance may be treated under this heading
(ii) Compassionate leave shall not be granted in excess of one’s annual leave entitlement.
13. SICK LEAVE PAY
An employee who is unable to carry out his duties by reasons of sickness shall be entitled, in any period of twelve months to full pay for a period of total of 60 days and half pay for a period of total 60 days; provided that the employee produces a medical certificate from a medical practitioner justifying to the need for such absence
An employee whose illness or injury is contracted during any period when the employee is in the place of employment shall be entitled to full pay until he/she recovers.
14. MATERNITY/PATERNITY LEAVE
The provision of the Employment Act 2007, shall apply.
15. OVERALLS AND UNIFORMS
(a) All technical employees will be issued with two (2) pairs of overalls to be replaced on yearly basis. Stores staff and technical supervisory staff will be issued with two (2) pairs of dustcoats every year or any other reasonable clothe for other employees like drivers and messengers.
(b) Employees provided with uniforms/dust coats will be provided with one kilo of washing soap per month except where the clothing is laundered by the company.
16. PROTECTIVE CLOTHING
Protective Clothing as required under the OSH Act will be issued to all employees who are required to wear them.
17. TRANSPORT FOR EMPLOYEES LEAVING WORK BETWEEN 7 P.M. AND 6 A.M.
The employer shall provide free transport for any employee leaving work between 7.00 p.m. to 6.00 a.m. or transport cost but not more than Kshs.150/- per day.
18. 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 dismissal/termination, shall be warned in writing and the following procedure shall apply.
(a) The first warning shall be entered in the employee’s employment record and the shopsteward of his/her union shall be informed immediately by giving him/her a copy.
(b) The second warning shall be copied to the shopsteward and the Area Secretary.
(c) The third warning shall be copied to the shopsteward and the General Secretary.
(d) An employee who has received three warnings and commits a fourth offence is liable to dismissal.
Where an employee completes twelve (12) months from the date of the last warning without further offence, all the warnings in his/her employment record shall be expunged.
Note:
All warnings given shall be subject to written appeal by the employee to the management within seven (7) days.
If Management fails to communicate within seven (7) days from the date of appeal, the warning will be deemed to have been withdrawn.
19. SHOPSTEWARDS’ RIGHTS
The shopsteward while representing the interests of other union members during scheduled meetings will not be victimized. Company permission should be sought well in advance for attendance of such meetings.
20. SUSPENSION
Where an employee is suspected to have committed an offence which requires investigation he/she shall be suspended for a period of twenty one (21) working days, during which investigation would have been completed and he/she shall be paid a half of his basic pay. If the investigation involved the police and thereafter proceeds beyond 21 days, the suspended employee shall continue receiving half his basic pay until the case is finally decided.
It is further agreed that if the employee is found innocent, he/she shall be reinstated with full benefits from the date of his suspension, but if the employee is found guilty, he/she shall be summarily dismissed with effect from the date of his/her suspension.
21. RETIREMENT BENEFITS (GRATUITY SCHEME)
The compulsory retirement age shall be 60 years. Employees shall retire voluntarily at 55 years of age.
(a) An employee shall be entitled to 20 days pay per completed year of service as retirement benefit.
(b) The employee’s years of this scheme will be counted from the date of engagement.
(c) An employee whose services are terminated on medical grounds, death or normal termination initiated by either party shall be entitled to the gratuity.
(d) An employee who loses his/her job on justified disciplinary ground will not be entitled to benefit from this scheme.
(e) Where an employee has a provident or pension fund, an employee will be entitled to benefit either from such fund or this gratuity scheme whichever is more favourable.
22. TERMINATION OF SERVICE
Employment may be terminated by either party by giving notice in writing or payment in lieu of notice as follows:
(i) From 1 to 5 years-One month notice in writing or by the payment of one month’s salary in lieu
(ii) From 6 to 10 years-Two month’s notice in writing or by the payment of two month’s salary in lieu
(iii) Ten years and aboveTwo months and a half notice in writing or by the payment of two and a half months salary in lieu.
23. PROBATION PERIOD
The probation period shall be three calendar months. During the period of probation the employment may be terminated by giving notice as follows:
(i) During 1st and 2nd months – 15 days notice in writing or payment in lieu.
(ii) During the 3rd month – 30 days notice in writing or payment in lieu
24. MEDICAL BENEFITS
Medical benefits shall be as per the provision of the Employment Act, 2007 Medical Treatment Rules Legal Notice No. 157/1977. Emergency cases could be attended at private hospitals/clinics and then be referred to a Government hospital.
25. SUPPLY OF MILK
One litre of milk shall be provided to employees who work where there are fumes and excessive heat like paint rooms. For other employees two cups of tea will be provided at 10.00 a.m. and 4.00 p.m.
26. LEAVE TRAVELLING ALLOWANCE
When proceeding on annual leave, the employee shall be entitled to Kshs.1,800/- (One thousand Eight hundred) as leave travelling allowance for the 1st year and Kshs.2,000/=(Two Thousands) in the 2nd Year.
27. CASUAL EMPLOYEES
(i) A casual employee who has completed 3 months continuous service with the company shall be confirmed into permanent employment.
(ii) For the purpose of working out the daily rates pay for a casual worker, the consolidated monthly minimum wage applicable to permanent employee in various grades under the agreement shall be divided by 26 (twenty six) days.
28. PERMANENT TRANSFER
Where an employee is permanently transferred from a branch of the company to another not within the same town or city, he will be entitled to kshs.10,000/- disturbance allowance payable once to cover permanent transfer.
29. REDUNDANCY
(a) Definition
For the purpose of this agreement, redundancy shall mean loss of employment through no fault of the employee.
(b) Alternative Employment
In an effort to avoid redundancy, the company will endeavour to arrange suitable alternative employment within the company. This employment may not be of the same nature or grade. If the alternative employment is not acceptable to the employee concerned, he will be classified as redundant.
(c) Consultation
When cases of redundancy arise, the method of dealing with the problem should be discussed with the Union in line with the statutory requirements.
(d) Selection of redundant employees
In deciding which employee shall be declared redundant, the company will assess the relative merits and ability of the affected employee, but when these factors are equal, the discharge will be on basis of seniority. Membership or non-membership of the union will not be a factor.
(e) Re-engagement
Redundant employees will be given priority in consideration for re-engagement by the company should a vacancy arise.
(f) Entitlement of redundant employees
In the event of an employee being declared redundant he/she shall be entitled to:
(i) 1-10 years service-2 months notice or pay in lieu thereof
(ii)Over 10 years-3 months notice in writing or pay in lieu thereof
(iii) Payment of wages, overtime and any other remuneration which may be due to him/her may be calculated up to the date on which he/she ceases employment.
(iv) Redundancy payment shall be as follows:
1-5 years-20 working days per each completed year of service
Above 5 years-22 working days per each completed year of service
(v) Pro-rata Leave
In cases of termination of service on grounds of redundancy prior to the completion of one year’s unbroken service, the employee shall be entitled to payment for the number of working days proportionate to his leave earning period with the employer.
(vi)Where an employee is a member of Provident or Pension Fund, an employee will be entitled to benefits either from such a fund or gratuity scheme (as agreed) whichever is more favourable.
30. SAFARI ALLOWANCE
(a) An employee who is required to perform work away from his principle place of work (outside Nairobi boundaries) shall be entitled to be paid subsistence allowances as follows:
(i) Breakfast..........................Kshs.200.00
(ii) Lunch..............................Kshs.300.00
(iii) Dinner..........................Kshs.400.00
(iv) Accommodation..........kshs.1,000.00
(b) Subsistence allowance payable under paragraph (a) of this clause shall cease to be payable to an employee after thirty consecutive days absence from Nairobi City. The above allowance will not be payable when the employer provides the meals and accommodation.
(c) An employee who is required to perform duties outside his/her principle place of work within the city boundaries shall be entitled to Kshs.250/- to cater for his/her transport and lunch being Kshs.125/= for transport and Kshs.125/= for lunch.
31. TRAINING
Any employee under training shall be issued with a signed letter stating:
(i) Period of training
(ii) Institution training will be as per the set period of training
(iii) Benefits will be paid as laid down in the Industrial Training Act
32. TOOLS
Appropriate tools for the job shall be provided by the Company.
33.PROMOTION
Where vacancies of a promotional nature arise the Company will give priority to existing employees, taking into such consideration as relative ability, experience, qualifications and length of service.
34.ACTING ALLOWANCE
An employee acting in higher grade for reasons other than for the purpose of training shall be paid the rate for the job for the higher grade. Such acting allowance shall be payable after an employee has acted for more than 7 days.
35. INJURY BY ACCIDENT
(i) An employee who suffers temporary disability as a result of an accident outside working hours will be entitled to sick leave benefit in accordance with sick leave clause of this agreement, on production of medical certificate from a recognized practitioner and provided that such injury is not self inflicted or the employee has not contributed towards such injury due to his/her negligence.
(ii) The provisions of Work Injury Benefits Act shall be observed in respect of the injuries sustained out and in the course of an employer’s duty.
36. DEATH OF AN EMPLOYEE
(a) When death of an employee occurs, the Company will contribute Kshs.25,000/- towards funeral expenses.
(b) Two employees who shall accompany the deceased’s body and who will represent the company at the burial shall be accorded leave of absence with full pay and the company will cater for their costs.
37. CERTIFICATE OF SERVICE
Every employee shall be issued with a Certificate of Service as per provision of section 51 of the Employment Act 2007.
38. APPOINTMENT LETTERS
Every employee shall be issued with appointment letter specifying inter-alia:
(i) Terms and conditions of service
(ii) His/her grade
(iii) Date of commencement
39. ABUSIVE LANGUAGE
Either party shall not use abusive language at the work place.
40. MID-MONTH ADVANCE
All unionsable employees shall be paid their mid-month advances on or before the 15th day of every month.
41. GENERAL WAGE INCREASE
(a) All Unionisable employees who have been in service of the company as at 31st December 2006 shall get a wage increase of 9% their actual earnings effective from 1st January 2007.
(b) All unionisable employees who shall be in the service of the company will be given further wage increase of 9% on their wage to cover the succeeding twelve months effective from 1st January 2008.
42. EFFECTIVE DATE AND DURATION
This agreement shall be effective from 1st January 2007 and shall remain in force for a period of 24 months from that date. Thereafter it shall continue in force indefinitely until either party, by giving three months notice in writing, signifies a wish to amend the agreement.
SIGNED FOR AN ON BEHALF OF THE COMPANY
…………………………………………………………………..
A.K. KURJIJASON KISIA
DIRECTORACCOUNTANT
SIGNED FOR AND ON BEHALF OF THE UNION
………………………………..………………………………
CHARLES NATILIFREDRICK O ODINDO
GENERAL SECRETARYASS. GENERAL SECRETARY
IN THE PRESENCE OF
…………………………………
A.O. AMBENGE
SENIOR EXECUTIVE OFFICER
FEDERATION OF KENYA EMPLOYERS
DATED THIS ………………. DAY OF …………………. 2014
/jan
