JOINT INDUSTRIAL COUNCIL OF THE OIL INDUSTRY (KENYA)

COLLECTIVE BARGAINING AGREEMENT BETWEEN OIL INDUSTRY AND KENYA PETROLEUM OIL WORKERS’ UNION.

2013/2014.

PREAMBLE.

AN AGREEMENT made this 5th day of October two thousand and Thirteen between the companies listed in paragraph two of the memorandum of Agreement signed between them and the Kenya petroleum oil workers union on July 26; 1962 (hereinafter called “the Companies” and “the Union” respectively) including subsequent amendments as mutually agreed between the Companies and Union WHERE BY AGREED AS FOLLOWS:

SUBJECT MATTER.

PART 1

Containing the clauses applicable to unionisable employees and to all companies except where otherwise indicated.

1.1 DURATION OF AGREEMENT.

The duration of this Agreement shall be for a period of two calendar years commencing on 1st January 2013.

At any time after 1 October 2014 and not later than 31 December 2014 either party may give the other two months notice in writing expressing its wish for this agreement to continue in force for a further period to be agreed upon or of its intention to terminate the Agreement or alter any clause in the Agreement. In the latter event the parties will enter into negotiation on the Terms and Conditions of a new Agreement and, until such time as this is signed and/or registered, the present agreement will continue in force.

After 1st October 2014 and not later than 31 December 2014 either party may give the other one months notice in writing of its desire to re-open negotiations on minimum salaries and general salary increase in the case of Unionisable employees.

In this event, Agreement so reached will be effective from 1st January 2013.

1.2 UNION MEMBERSHIP.

(a) Both parties undertake to observe the provisions of Industrial Relations.

Charter and Labour Relations Act, 2007 and shall not engage in such practice as:

I. Interfering with the rights of employees to enroll or continue as union members.

II. Discrimination, restrain or coercion against any employee because of recognized activities of trade union.

III. Victimization of any employee and abuse of authority in any form.

IV. Use of abusive language which may result to industrial instability.

V. Discrimination against any employee because of race,colour,creed,religion,age,tribe,gender,political affiliation and health status.

VI. Nepotism shall not be practiced while considering permanent employment,promotion or training.

(b) Both parties realize that responsibilities laid on them can only be fulfilled if a high standard of discipline is maintained among Companies, Union and its members.

(c) Thus, while recognized that the question of union membership is entirely a matter for individual choice and while reiterating that membership or non-membership is a factor which is not regarded by the company in arriving at any decision which may in any way affect either employment,the continued employment or the career prospects of individual employees,the companies nevertheless accept that in the interest of maintaining the required standard of discipline, union membership should be maintained at a high level and will be effective upon engagement.

(d) The Companies shall draw the attention of new employees to the existence of the Union.

1.3 DEDUCTIONS OF UNION DUES/AGENCY FEE.

While it is generally accepted in principle that the deduction of union dues through the check-off system is governed by part six of the Labour Relations Act 2007, both parties i.e. the Companies and the Union undertake that it shall be a condition of employment that all unionisable employees falling within the level of union representation and are members covered by this Agreement shall become and remain members of the union in good standing.

Any non paid up union member of staff benefiting from a duly negotiated Collective Bargaining Agreement will have to meet requirement of union membership as provided for by section 49 of Labour Relations Act 2007.

1.4 ANNUAL LEAVE.

A gazetted public holiday falling within the period will be treated as non- working day. The date of employees leave entitlement is the anniversary date of his employment.

As far as possible, employee will be granted leave on the due date. However it is recognized that consideration of operational requirement is paramount and the Companies will arrange leave roasters accordingly

(b) Up to 12 days leave entitlement may be accumulated in any 1 year subject to an over-ridding maximum of 24 days. One month notice of intention to take accumulated leave must be given, and it is again recognized the date of taking such accumulated leave will be determined by the Companies in accordance with operational requirements.

(c) Where an employee with more than 6 months continuous service leaves the Companies’ service, s/he shall be paid a sum in lieu of proportionate leave calculated on a pro-rata basis at:

I. 1.84 days pay for each completed month of service for those working a 5 day week.

II. 2.17 days pay for each completed month of service for those working a 6 day week.

1.5 MATERNITY/PATERNITY LEAVE.

1.6 COMPASSIONATE LEAVE.

1.7. LEAVE FOR TRADE UNION PURPOSES.

(a) CONFERENCES.

The Companies agree to grant 6 days paid leave in each calendar year for union officials and delegates selected by the Union from among the companies employees to attend the conference provided that:

I.The name s of the officials and delegates to attend the conference shall be submitted to the companies in writing not less than fifteen days before the leave is required to commence.

II.Such leave may not be accumulated.

(b) EDUCATION SEMINARS AND COURSES.

The companies agree to grant leave with full pay to the union members sponsored by union to attend education seminars and courses for entire duration of such seminars or courses provided prior consultation and agreement has been reached between the union and the companies concerned.

1.8 HOLIDAYS

(a) RELIGIOUS HOLIDAYS.

Up to 2 days paid leave per year may be given to an employee for appropriate holidays. This shall not affect his annual leave entitlement.

1.9 LEAVE ALLOWANCE.

1.10 MEAL AND SAFARI ALLOWANCE.

The normal working area is defined as being the limits of the city or township of the place of employment.

(b) NON-SHIFT EMPLOYEES (Applicable to employees working at normal working area)

When an employee is required to work after normal finishing time and continues beyond the meal time indicated here below, he/she will qualify for meal allowance. Meal times will be:

Breakfast .............between 0600 hours and 0900 hours

Lunch.................... between 1200 hours and 1430 hours

Dinner ....................between 1830 hours and 2130 hours.

When an employee works over the normal lunch break, s/he will only qualify for lunch allowance if he/she cannot be given appropriate time off for such meals before the end of the meal period indicated.

(c) SHIFT EMPLOYEES.

Shift employees who do not qualify for meal allowance for meals falling within their normal shift. Shift employees who are required to work for at least 2 hours into the next shift and those called to work over time will be paid a fixed meal allowance of Kshs 650/= per 8 hours occasion. Only one allowance will be payable per occasion.

To qualify for this allowance, employees will have to work beyond the following times:

(1)K.P.R.L.

Shift Hours :................................................ Time which fixed meal allowance becomes payable.

0700 hrs to 1500 hrs...................................1700hours

1500 hrs to 2300hrs....................................0100hours

2300hrs to 0700 hrs....................................0900hours

(2) MARKETERS.

As per individual marketing Companies shift hours.

1.11 SHIFT ALLOWANCE.

In addition to the basic pay, employees working a regular shift will be paid a shift allowance to compensate them for the inconveniences involved in shift work. These shift allowances will not be included in the basic pay and accordingly will not be taken into account when calculating Provident/Pension Fund contributions or overtime pay, since it is intended to compensate the individual for the inconvenience incurred in shift work through being sick, on leave, or for any other reason.

(a) 3CYCLE SHIFT.

15% of the basic individual salary.

(b) 2CYCLE SHIFT

11 % of the basic individual salary.

1.12 HOUSING ALLOWANCE.

In addition to basic salaries, all unionisable employees will be paid housing allowance as follows:

Upper income group - shs.12,700/= p.m

This will not be taken into consideration when calculating overtime payment/provident fund contributions.

1.13 LOCAL TRANSPORT.

When an employee is called out of his place of residence to work on his/her rest day, day off, or on public holiday(for non-shift workers)he/she will be reimbursed the actual cost of the bus fare to and from his/her place of work,via the most direct route.

Provided that where such travel is undertaken outside the normal operating hours for buses or other means of public transport,the employee may claim the actual taxi fare incurred via the most direct route or if he uses his own car,the equivalent of such taxi fare.

1.14 SICKNESS

(a) The employee has completed the appropriate probation period.

(b) Presentation of a medical certificate signed by an approved medical officer covering the entire period of the sickness.

(c)Such sick leave may not be accumulated from year to year.

(d)In cases of prolonged illness the companies will inform the union and the individual cases will be determined by the companies on their own merit.

(b)Incase of hospitalization, the Companies will meet the cost of treatment less the entitled amount of National Hospital Insurance Fund subsidy

(4) The Companies reserve the right to require the employee to be examined by the Company’s Medical advisor.

1.15 SAFETY AND HEALTH.

1.16 VACANCIES

Where vacancies of a promotional nature arise, the companies agree to give the first priority to existing employees, taking to account such considerations as relative ability, experience, qualifications and length of service.

When the foregoing procedure has been exhausted and the company decides to advertise to the press e.t.c; copies of such advertisement will be posted on notice boards for the information of employees.

1.17 CHANGE OF CLASSIFICATION.

If any employee is permanently transferred to a position of lower category through no fault of his /her own basic pay will not be reduced, but after agreement with the union, he/she will be classified in the category into which his/her new position falls.

1.18 WARNING SYSTEM.

Any employee whose work or conduct is unsatisfactorily or who otherwise commits a misconduct, which does not warrant instant dismissal, shall be warned in writing after he has been advised verbally by his supervisor and the shop steward of the union shall be informed accordingly:

(a) The first and the second warnings shall be entered in the employee’s employment record and the shop steward of the union shall be informed accordingly;

(b) The second warning shall be copied to the branch secretary of the union;

(c) If an employee who has already received two warnings commits a third misconduct, he/she shall be liable to summary dismissal;

Provided that where an employee completes one calendar year from the date of the second warning without further misconduct, any warning entered in his/her employment record shall be cancelled.

1.19 SUSPENSION.

(1) Where an employee has committed a misconduct or is suspected to have committed an offence which may lead to termination of service,the company will suspend the employee involved from duty pending investigation and consideration of the offence by the company.

(2) While under suspension, the employee will not attend his/her place of work and must keep off the Companies operational premises unless requested otherwise. However, during the period of suspension the employee remains on his normal terms of employment.

(3) If within the suspension period and for the purposes of carrying out further investigations, an employee is required to appear before a disciplinary committee, he/she will appropriately be informed the date/time and place of meeting. He/she shall have the right to be represented by any number of representatives of his/her choice, cross examine witnesses, call witnesses and access information and data to prove his/her case. Likewise the employer shall have to explain to the employee in a language the employee understands well before and during the investigation process. The ruling therefore will take cognizance of the fundamental resolutions agreed upon by both parties.

(4)Such notice of suspension shall be given in writing to the Branch Secretary and the General Secretary. No suspension period shall exceed 30 consecutive days.

1.20 TERMINATION OF EMPLOYMENT.

(1) On successful completion of the probationary period, an employee will be confirmed in that position. In case of termination for reasons other than summary dismissal for gross misconduct, the companies will give one calendar months notice beginning on any day of the month or the equivalent salary in lieu thereof.Similarly, an employee wishing to resign from the companies shall give one calendar months notice of his /her intention, such notice to be given on any day of the month or the payment of equivalent salary in lieu thereof.

(2) In the event of an employee being dismissed for any cause whatsoever and after consultation with the union is reinstated he/she shall be reinstated without any loss of salary,benefits or privileges.

(3)In the event of an employee being dismissed for any cause whatsoever and after consultation with the union is reinstated,he/she shall be re-employed without any loss of salary,benefits or privileges as from the time of dismissal to the time of his/her re-employment.

1.21 REDUNDANCY

(a) Save as hereinafter provided, redundancy shall be subject to section 40 of Employment Act, 2007.

(b) Should it be deemed necessary by the company to terminate the services of any employees for reasons of redundancy, consideration of either membership or non-membership of the union shall not be taken into account .The Companies shall notify the union in writing of their intended redundancy at least 2 months prior to notifying the staff concerned and effecting the redundancy.The companies agree to meet the union during this period in order to discuss the redundancy.

(c) In the event of termination of service of an employee through reasons of redundancy, such employees will be paid one month basic salary per completed year of service. The selection for such termination will be governed by the principle of LIFO, PERFORMANCE and MERIT.

Contracting jobs. where the Companies decide to engage private contractors to do any job which was previously done by the Companies and where such contracting out will result in employees losing their jobs ,then all the provisions of subsection (a),(b) and (c) of this clause will apply.

1.22 RETIREMENT AGE

(a) The normal retirement age will be 55 years of age.

(b) The company shall give 3 months notice of retirement to their employees.

(c) Final payment will be made on a retiring employee on his/her last day on the payroll.

1.23 GRIEVANCE PROCEDURE.

Stage 1: An employee desiring to raise any grievances shall in the first instance discuss the matter with his immediate supervisor.

Stage 2: Failing a satisfactory solution within 2 working days after the matter has been raised in stage 1; the employee may refer the matter to his senior supervisor. At this stage, he may be represented by appropriate shop steward.

Stage 3: Failing a satisfactory solution within 2 working days after the matter has been raised in stage 2, the employee, with or without his union representative, may raise the matter with the branch manager/department head or his nominee.The company will give its decision within two working days of the meeting.

Stage 4: If a solution is not forthcoming at stage 3, the union may refer the matter to management of the company who will schedule a meeting with the union to discuss the dispute. This meeting will be held within 4 working days of receipt of the union letter.Within 3 working days of the date of that meeting the final decision of the management will be communicated to the union in writing.

Stage 5: If any matter has not been resolved on completion of the foregoing procedure, the grievance will be referred to the grievance committee of the joint industrial council. This committee will consists of the industrial relations coordinator, the joint secretary and a representative of the company involved.The union will be represented by the general secretary and/or his nominee,the joint secretary and a union representative from the company involved.All decision of the grievances committee will be by mutual agreement.

A request of the meeting of the grievance committee of the J.I.C will be forwarded in writing to the joint secretaries within 5 days of the receipt of the decision in stage 4.The two joint secretaries will arrange the meeting of the grievance committee within seven working days after receipt of the relevant communication.

(In the event of failure on the part of the aggrieved party to request a meeting of the grievance committee of the joint industrial council within a period of 5 days mentioned above, they will automatically be time barred.)

NOTE: Matters affecting a group of workers within a branch or a depot will normally be taken up to stage 2.Both parties recognizing the importance of voluntary settlement of disputes in the interest of good industrial relations agree that no dispute shall be reported to the Ministry of Labour, the Industrial Court or other outside parties until the above grievance procedure has been exhausted.

1.24 PROTECTIVE CLOTHING.

The provision of the Occupational, Safety and Health Act 2007 shall apply.

1.25 UNIFORMS.

Where in the opinion of the employer, uniforms are necessary, such uniforms shall be provided by the employer.The type and style of uniforms shall be decided by the employer taking into account local conditions, subject to the following:

1.The uniforms shall always be worn and used during working hours.

2. The uniforms will remain the property of the employer until they are replaced.

3. The employer will maintain such uniforms(laundry and normal repairs)but loss or willful damage by the employee will be charged to the employee for replacement or repair as the case may be.

1.26 CERTIFICATE OF SERVICE

The company agrees to give any employee at the time of leaving the company certificate of service specifying:

a) Name.

b) Date of engagement.

c) Date of leaving the company.

d) Salary at the time of leaving the company.

e) Position last held.

1.27 STOPPAGE OF WORK

(a) The company and the union recognize that the economic wellbeing of the company and their employees is dependent upon the maintenance of harmonious relations and industrial peace. Therefore, with full cognizance of their responsibilities, the companies and the union agree that in any matter explicitly agreed in this document or the interpretation or application of this agreement or in respect of any other matter which may arise but which is not referred to in this agreement; they will enter into conciliatory discussion with the object of endeavouring to seek a settlement satisfactorily to both and until this discussions have been exhausted. Without results no arbitrary action designed to bring about stoppage of work will be taken either by the Companies or the Union.

(b) If in spite of their best endeavour to reach a mutually satisfactory settlement the Company and the Union fail to do so, and as a consequence either party decides that a stoppage shall occur, the procedure as laid down in the Labour Relations Act 2007 will be followed.

PART 2.

Containing the clauses applicable to all unionisable employees and common to all companies except where otherwise indicated.

2-1 DEDUCTIONS.

Deductions for unauthorized absence or unpaid leave of absence will be made on basic salary divided by 173 times the hours absent.

2-2 CASUAL EMPLOYEE.

The company agrees that casual employee will normally be employed for a maximum period of one continuous month’s service. Casuals will be paid at the appropriate rate for established job categories.

2-3 MINIMUM SALARIES.

The minimum basic salary for each category will be as laid down in single job structure categorization schedules.

2-4 PROBATION PERIOD.

2-5 ACTING APPOINTMENT/ALLOWANCE (Not applicable to K.P.R.L)

Where an employee is required to act in a position of a higher category for a period of not less than ten working days ,he will be entitled to be paid for that period an acting allowance equivalent to the difference between the agreed minimum of the higher category and the minimum of his present category divided by 30 times the number of days acted.

Where such acting appointment is as a result of resignation, dismissal or permanent transfer, the employee acting continuously in that position for at least 3 months shall be confirmed in the position.

If the acting appointment falls outside union representation, an acting allowance of shs.573.00 inclusive per working day will be paid.

2-6 CHAUFFEUR ALLOWANCE

The rate of pay for Chauffeurs includes an element to compensate for irregular and extra hours worked. No overtime payments will therefore be made to them. They will, however, receive an allowance of shs.5,000/= per month. The allowance will not be paid when the employee is absent from work through being sick, on leave or for any other reason whatsoever.

2-7 HOURS OF WORK

a) Non Shift Employees.

b) Shift Employees.

2-8 OVERTIME

(i) Non-Shift Employees.

Unionisable employees required to work in excess of 40 hours per week shall receive payment for such time at the following rates:-

Only periods in excess of half an hour on any one occasion will count towards excess hours.

(ii) Shift Employees.

Shift employees will qualify for overtime only for:

(a) Work performed in excess of the stipulated daily shift

(b) Work performed on allocated rest days or Gazetted Public Holidays.

2-9 PERMANENT TRANSFER:

(a) All employees undertake as a condition of employment to work anywhere in Kenya for the companies or their associates. Companies will, however, take individual circumstances into account both before and after transfer.

(b) The companies agree to reimburse to an employee on production of tickets transportation expenses incurred in connection with a permanent transfer covering the employee, his wife, his children and household effects. Unless permitted by the company the employee will be expected to travel by bus or any other cheaper service transport.

(c) The Companies agree to assist employees when they are permanently transferred to a new location by paying a “transfer allowance” amounting to two month’s basic wages.

(d)Further, if an employee is transferred to any place outside the boundaries of Kenya he shall not suffer any loss of benefit.

2-10 JOB PROGRESSION: (Not applicable to KPRL).

The following job progression programme has been agreed upon for the job categories listed below:-

i. Artisans

ii. Fitters

iii. Carpenters

iv. Drivers

v. Pump Mechanics

vi. Motor Vehicle Mechanics

(i) Artisans.

Category.................Title

1 .............................Painter/Welder II/Artisan class D.

2..............................Painter/Welder I/Artisan class C.

3............................. Artisan class A/B

4............................. Leading/Charge band Artisan

5............................. Senior Charge hand Artisan

Qualification Standards for Artisans

Artisan Class D (category 1) – this is the recruitment grade. Promotion will in all cases depend upon all of the following factors, taken together:-

(a) Existence of a vacancy in the next higher grades;

(b) A minimum of five years experience in the grade from which the employee is being promoted. Provided that at the Management’s discretion the employee concerned could be considered for promotion before completion of this period.

(c) A record of above average performance covering at least the previous three years prior to the proposed date of promotion. In addition to the above, the employee concerned must possess the appropriate Government Trade Test Certificate as indicated below before he/she is promoted into the following grades:

I. From Cat. 1 to Cat. 2 – .......................Trade Test. III

II. From Cat. 2 to Cat. 3 – ......................Trade Test. II

III. From Cat. 3 to Cat. 4 – .....................Trade Test I

IV. Promotion from Cat. 5 Minimum of KCSE or equivalent and Ordinary National Diploma or equivalent.

The companies may, in lieu of Government Trade Test, OND or KCSE. examine aspiring candidates in their own employment for purposes of determining whether these employees qualify for promotion.

(ii)Fitters

Category........................... Title.

1......................................... Fitter III

2.......................................... Fitter II

3...........................................Fitter I

4........................................... Leading/Charge hand Fitter

5............................................. Senior/Charge hand Fitter

Qualification standards for fitters.

Fitter III (Cat. 1) – this is the recruitment grade. Promotion will in all cases depend upon all of the following factors, taken together :-

(a) Existence of a vacancy in the next higher grade;

(b )A minimum of five years experience in the grade from which the employee is being promoted, provided that, at management’s discretion, the employee concerned could be considered for promotion before completion of this period.

i.From Cat. 1 to Cat. 2 – .............................Trade Test III.

ii.From Cat. 2 to Cat. 3 –............................. Trade Test II.

iii.From Cat. 3 to Cat. 4 –.............................. Trade Test I.

iv.Promotion from category 5- Minimum KCSE or equivalent ordinary National Diploma or Equivalent.

The companies may, in lieu of Government Trade Test. OND or KCSE examine aspiring candidates in their own employment for purposes of determining whether these employees quality for promotion.

(iii) Carpenters.

Category..........................Title

1 ..................................Carpenter III

2.................................... Carpenter II

3 .....................................Carpenter I

Qualification standards for Carpenters

Carpenter III (Cat. I) – this is the recruitment grade. Promotion will in all cases depend upon the following factors, taken together:-

(a) Existence of a vacancy in the next higher grade.

(b) A minimum of five years experience in the grade from which the employee is being promoted, provided that at the management’s discretion the employee concerned could be considered for promotion before completion of this period.

(c) A record of above average performance covering at least the previous three years prior to the proposed date of promotion.

In addition to the above, the employee concerned must possess the appropriate Government Trade Certificate as indicated below before he is promoted into the following grades:

I. From Cat. 1 to Cat. 2 – ...........................Trade Test III

II. From Cat. 2 to Cat. 3 –.......................... Trade Test II

III.Promotion to Cat. 3 -............................... Trade Test I

The companies may, in lieu of Government Trade Test, examine aspiring candidates in their own employment for purposes of determining whether or not these employees qualify for promotion.

(iv) Drivers.

Category............................Title

1.........................................L.D.V. Driver II/I and L.P.G. Bulk Driver II

2 .......................................L.D.V Driver I, Chauffeur I and HDV Driver (3 tons and over)

3.......................................... HDV (Articulated)

Qualification Standards for Drivers

Drivers will be recruited in Cat. 1. Promotion will in all cases depend upon all the following factors, taken together:-

(a) Existence of a vacancy in the next higher grade.

(b) A minimum of five years experience in the grade from which the employee is being promoted, provided that at the management’s discretion the employee concerned for promotion before completion of this period.

In addition to the above, the employee concerned must demonstrate improved proficiency in his driving standards, including some elementary knowledge of vehicle maintenance. In order to determine whether or not such an employee should be promoted as outlined above, the Company concerned may also require the employees to be examined either internally by the company itself, a government institution, or the Automobile Association of Kenya in preparation for which the employee will have received training at the expense of the company.

(v) Pump Mechanics

Category.................................Title

1...............................................Pump Mechanic III

2...............................................Pump Mechanic II

3...............................................Pump Mechanic I

4...............................................Leading/Charge hand Pump Mechanic

5...............................................Senior Charge Hand Pump Mechanic

Qualification Standards for Pump Mechanics

Pump Mechanics III (Cat. I) – this is the recruitment grade. Promotion will in all cases depend upon all of the following factors, taken together:-

(a) Existence of vacancy in the next higher grade.

(b) A minimum of five years experience in the grade from which the employee is being promoted, provided that at the Management’s discretion the employee concerned could be considered for promotion before completion of this period.

(c) A record of above average performance covering at least the previous three years prior to the proposed date of promotion. In addition to the above, the employee concerned must posses the appropriate Government Trade Test Certificate as indicated below before he is promoted in the following grades:_

I.From Cat. 1 to Cat. 2 –,,,,,,,,,,,,,,,,,,,,,,,,, Trade Test III

II.From Cat. 2 to Cat. 3 –,,,,,,,,,,,,,,,,,,,,,,,,,, Trade Test II

III.From Cat. 3 to Cat. 4 –,,,,,,,,,,,,,,,,,,,,,,,,,, Trade Test I

Promotion from Cat.5 – Minimum of K.C.S.E “O” Level or equivalent, an Ordinary National Diploma or equivalent.

The companies may in lieu of Government Trade Test, OND or KCSE, examine aspiring candidates in their own employment for purposes of determining whether these employees qualify for promotion.

(vi) Motor Vehicle Mechanics.

Category.......................................Title

1.............................................Motor Vehicle Mechanics III

2.............................................Motor Vehicle Mechanics II

3.............................................Motor Vehicle Mechanics I

4.............................................Leading/Charge hand Motor Vehicle Mechanic

5.............................................Senior Charge hand Motor Vehicle Mechanic

Qualification Standards for Motor Vehicle Mechanics

Motor Vehicle Mechanics III (Cat. I) – this is the recruitment grade Promotion will in all cases depend upon all of the following factors, taken together:-

(a) Existence of a vacancy in the next higher grade:

(b) A minimum of five years experience in the grade from which the employee is being promoted, provided that at the Management’s discretion the employee concerned could be considered for promotion before completion of this period;

(c) A record of above performance covering at least the previous three years prior to the proposed date of promotion. In addition to the above, the employee concerned must possess the appropriate Government trade Test Certificate as indicated below before he is promoted into the following grades:

I.From Cat. 1 to Cat. 2 –............................ Trade Test III

II.From Cat. 2 to Cat. 3 –............................ Trade Test II

III.From Cat. 3 to Cat. 4 – ..........................Trade Test I

IV.Promotion from Cat. 5 –......................... Minimum of KCSE “O” Level or equivalent and ordinary National Diploma or equivalent.

The Companies may, in lieu of Government Trade Test; OND or K.C.S.E, examine aspiring candidates in their own employment for purposes of determining whether these employees qualify for promotion.

(vii) Laboratory Tester

Category............................................ Title

2.......................................................Trainer Laboratory Tester

3.......................................................Assistant Laboratory Tester

4.......................................................Laboratory Technician II

5.......................................................Laboratory Technician I

1.The Normal entry point for this stream will be as Trainee Laboratory Tester in Category 2.

2.The normal progression will be as follows:-

(a) After one year’s satisfactory service and subject to passing Government Trade Test III or equivalent and subject to selection, the trainee will be promoted to assistant Laboratory Tester in Category 3.

(b) After two years satisfactory service and passing Government Trade Test II or equivalent and subject to selection, the Assistant Laboratory Tester will be promoted to Laboratory Technical II (Category 4).

(c) After a further two years satisfactory service and passing Government Trade Test I or equivalent and subject to vacancies and selection, promotion will be to a Laboratory Technician I in Category 5.

PART III.

Containing additional clauses applicable to Unionisable employees of the Kenya Petroleum Refineries Limited.

3-1 ACTING APPOINTMENT/ALLOWANCE

Where an employee is required to perform work of a higher category than his own for a period of not less than one day, he will be entitled to be paid for that period an acting allowance equivalent to the difference between the agreed minimum of the higher category and the minimum of his present category divided by 30 times the number of days acted.

If the acting appointment falls outside Union representation, an acting allowance of Shs.573.00 inclusive per working day will be paid.

When such acting appointment is as a result of resignation or dismissal, the employee acting continuously in the position for at least 2 months shall be confirmed in the position.

3-2 CALL DUTY ALLOWANCE

Employees on call duty will be paid Shs.4,000/= per occasion of seven days duration in accordance with duty roster.

3-3 JOB PROGRESSION

(i) Refinery Operator

Title .........................................................Category

Trainee Refinery Operator.............................2

Assistant Refinery Operator...........................3

Refinery Operator............................................4

Operations Technician.....................................5

1.The normal entry point for this stream will be as Trainee Refinery Operator in Category 3.

2.After two years satisfactory service subject to selection, the Assistant Refinery Operator will be promoted to Refinery Operator in Category 4.

3.After a further two years satisfactory service and subject to vacancies and selection, the Refinery Operator will be promoted to operations technician in Category 5.

(ii) Grease Plant Operator

Title...........................................................................Category

Trainee Grease Plant Operator....................................... 2

Assistant grease Plant Operator .....................................3

Grease Plant Operator..................................................... 4

Grease Plant Technician ..................................................5

1.The normal entry point for this stream will be as a Trainee Grease Operator in Category 2. After one year’s service and subject to selection/test, the Trainee will be promoted to Assistant Refinery Operator in Category 3.

2.After two years satisfactory service and subject to selection, the Assistant Refinery Operator will promoted to Grease Operator in Category 4.

3.After a further two years satisfactory service and subject to vacancies and selection, the Grease Operator will be promoted to Grease Plant Technician in Category 5.

(iii) Refinery Craftsman

Title...................................................................Category

Refinery Craftsman III................................................2

Refinery Craftsman II.................................................3

Refinery Craftsman I..................................................4

Engineering Technician............................................5

3.Entry point into this stream will normally be as follows:-

(a) Those holding completed crafts apprenticeship will enter as Refinery Craftsman III in Category 2.

(b) Those holding completed crafts apprenticeship plus KPRL or Government Trade Test II in their principle trade will enter as Refinery Craftsman II in category 3.

4.The following will be the progression after entry:-

(a) After one year satisfactory service and subject to passing a KPRL or Government Trade Test II in their principle trade and subject to selection, promotion will be to Refinery Craftsman II.

(b) After two years satisfactory service plus KPRL or Government Trade Test I in their principle trade and subject to selection; promotion will be to Refinery Craftsman I in category 4.

(c) After a further two years satisfactory service and subject to vacancies and selection, promotion will be to Engineering Technician in Category 5.

(iv) Laboratory Tester

Title...............................................................Category

Trainee Laboratory Tester...................................2

Assistant Laboratory Tester.................................3

Laboratory Tester..................................................4

Laboratory Technicians........................................5

1.Normal entry point for this stream will be as Trainee Laboratory Tester in Category 2.

2.The normal progression will be as follows:-

(a) After one year’s satisfactory service and subject to passing KPRL Trade Test III and selection, the trainee will be promoted to Assistant Laboratory Tester in Category 3.

(b) After two years’ of satisfactory service and subject to passing KPRL Trade Test II and subject to selection, the Assistant Laboratory Tester will be promoted to Laboratory Technician II in Category 4.

(c) After further two years’ satisfactory service and subject to passing KPRL Trade Test I and subject to vacancies and selection, promotion will be to Laboratory Technician I in Category 5.

(v)Drivers

Title...................................................Category

LDV Driver II/1 .....................................2

Assistant Laboratory Tester................. 3

Laboratory Tester................................. 4

Laboratory Technician........................... 5

Qualification standards for Drivers

Drivers will be recruited in category 1. Promotions will in all cases depend upon all of the following factors, taken together:-

(a) Existence of a vacancy in the next higher grade:

(b) A minimum of five years experience in his grade from which the employee is being promoted provided that the Management’s discretion the employee concerned could be considered for promotion before completion of this period;

In addition to the above, the employee concerned must demonstrate improved proficiency in his driving standards, including some elementary knowledge of vehicle maintenance. In order to determine whether or not such an employee should be promoted as outlined above, the Company concerned may also require the employee to be examined either internally by the Company itself, a government institution, or the Automobile Association of Kenya in preparation for which the employee will have received training at the expense of the company.

DATED at NAIROBI this ___________________day of_______________________

TWO THOUSAND AND THIRTEEN

For and on behalf of MEMBER COMPANIES OF THE J.I.C OF THE OIL

INDUSTRY IN KENYA.

1.Kenya Petroleum Refineries Limited____________________

MARTIN WAHOME

2.Total Kenya Limited____________________

IRENE MUINDE

3.Colas East Africa____________________

SAMMY NGAYAI

For and on behalf of:

KENYA PETROLEUM OIL WORKERS’ UNION ____________________

GILBERT AMOLO

GENERAL SECRETARY

Witnessed by:_____________________ MAUREEN MICHAEL

BEFORE ME

………………………………………

ABISAI O AMBENGE

SENIOR EXECUTIVE OFFICER

FEDERATION OF KENYA EMPLOYERS

PART FOUR: SALARY AGREEMENT

a. PREAMBLE

The Oil Company members of the Joint Industrial Council (hereinafter referred to as “The Companies”), and the Kenya Petroleum Oil Workers’ Union, (hereinafter referred to as “The Union”), meeting in the spirit of mutual respect and co-operation and in affirming:-

4-1 That the excellent Industrial relations situation existing at the moment is a matter of great satisfaction to both parties:

4-2 That strike action, go slow, indiscipline and lack of sense of commitment to work on the part of employee, on the one hand, and on the other, any form of unfair and restrictive labour practice, lockout and failure by companies to recognize the relative individual and collective contributions of workers to the economic well being of the companies are not conducive to harmonious relations between the parties:

4-3 That the parties will make every effort to resolve all their differences amicably and without resorting to unlawful or unofficial strike action or lock-out;

4-4 That only through increased productivity can the continued survival and property of the Companies be assured;

4-5 That without this prosperity the overall economic welfare of the companies and employees cannot be improved;

4-6 That the companies have a special responsibility in initiating measures to effect increased labour productivity.

4-7 That the progression in wages and salaries should be such that it encourages labour stability and ensures the continued employment by the companies of highly skilled efficient and motivated work force, NOW THEREFORE REACH the following AGREEMENT in respect of:

4-8 Basic Salaries rates for Unionisable Staff Employees;

4-9 Collective Bargaining Agreement:

4-10 Interrupting the existing Agreement as per 4:8 and 4:9 above:

PART FIVE: CONDITIONS GOVERNING UNIONISABLE EMPLOYEES SALARIES.

5-1 Salary Range.

The salary range structure shown in schedules headed “Single Job Structure Categorization” will be used solely for the purpose of recruitment and Optional Performance Increments.

5-2 General Salary Increase

5-3 Optional Performance Increment

In addition to the General Salary Increases, Companies may use their own discretion to grant optional Performance Increment to those employees who in those Companies’ opinion may deserve such increment on the basis of employee’s exemplary performance and application to work. Such increment will be effective on the 1st January of each year of this agreement.

DATED AT NAIROBI this ______________day of___________________

TWO THOUSAND AND THIRETEEN

For and on behalf of MEMBER COMPANIES OF THE J.I.C OF THE OIL INDUSTRY IN KENYA

1.Kenya Petroleum Refineries Limited_________________

MARTIN WAHOME

2.Total Kenya Limited____________________________

IRENE MUINDE

3.Colas East Africa______________________

SAMMY NGUYAI

For and on behalf of:

KENYA PETROLEUM OIL WORKERS’____________________________

UNIONGILBERT AMOLO

GENERAL SECRETARY

Witnessed by:_____________________ MAUREEN MICHAEL

BEFORE ME

………………………………………

ABISAI O AMBENGE

SENIOR EXECUTIVE OFFICER

FEDERATION OF KENYA EMPLOYERS