MEMORANDUM OF AGREEMENT BETWEEN M/S. AUTO ANCILLARIES AND THE AMALGAMATED UNION OF KENYA METAL WORKERS
1. PREAMBLE:
The Terms and Conditions of Employment set out in this Agreement shall be observed by both parties and shall apply to employees covered by the Recognition Agreement and as may be provided for by the current FKE/COTU (K) Agreement.
2. HOURS OF WORK
The normal working week shall consist of 44 hours of work spread over six days of the week:
(a) Monday to Fridays-8 hours
Saturdays-4 hours
(b) Day Watchman-52 hours per day
week spread over 6 days
(c) Night Watchman-10 hours per day – 60 hours per
week spread over 6 days
3. OVERTIME:
Overtime will be paid only when the number of hours worked exceed the standard working hours (shown above).
Sundays and Public Holidays - Time worked x 2 hourly rate
Mondays to Saturdays inclusive - Time worked x 1½ hourly rate.
4. REST PERIOD
At least one rest period of not less than thirty minutes shall be allowed in the course of any working day or shift of at least 7 working hours duration.
5. ANNUAL LEAVE
a) All employees shall be entitled to 26 working days leave with full pay for each period of 12 consecutive months' service. Sundays and Public Holidays are exclusive.
b) For the purpose of this clause, it is accepted and agreed by both parties that Saturday is a working day.
c) Travelling period shall be within the employees leave period.
d) Leave shall be taken and may be rescheduled at the discretion of the Company. Leave shall not be unduly withheld by the Management.
e) After 12 months' consecutive service the employee shall be entitled to the full period of annual leave. Any other leave shall be taken at the discretion of the Management.
f) After completion of probationary period and on termination of service where an employee is given pay in lieu of notice he will be paid for the leave due to him on pro-rata basis.
g) Accumulation of leave will be at the discretion of the Company but will not exceed 18 months leave entitlement.
h) Annual leave shall be taken either 3 months before or 6 months after the employee’s anniversary date of engagement.
6. LEAVE TRAVELLING ALLOWANCE
An employee proceeding on annual leave shall be entitled to Kshs.3,000/= as leave travelling allowance.
7. COMPASSIONATE LEAVE
Special leave on compassionate grounds may be granted provided that satisfactory proof of the necessity for such leave is produced. This leave will either be paid, unpaid or deducted from the annual leave entitlement in the light of evidence produced before or after the leave by the employee.
8. PUBLIC HOLIDAYS
Employees shall normally be granted leave with full pay for all gazetted Public Holidays, provided that an employee who is required to work on such holidays shall be paid double time for the period worked.
9. MATERNITY LEAVE
A woman employee shall be entitled to 3 months maternity leave with full pay.
provided that:
i) A woman who has taken three months maternity leave shall not forfeit her annual leave in that year.
ii) Child-birth in respect of a woman employee shall not be deemed to be sickness as provided for in Clause 10 of this Agreement 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 two weeks paternity leave with full pay.
10. SICK LEAVE
After probationary period, an employee who is unable to carry out his/her duties due to sickness shall be entitled in any period of 12 months to a maximum of 60 days sick leave with full pay and half pay for the next succeeding 30 days, subject to the production of a medical certificate to that effect, signed by a qualified medical practitioner or an authorised person acting on his behalf, in an aided medical centre.
11. MEDICAL
The Company shall undertake to pay for the cost of medical treatment of all its employees in accordance with the provisions prescribed by the Laws of Kenya relative to the Employment of Persons Medical Treatment Rules to a maximum of KShs.9,500/= per year.
12. SAFARI ALLOWANCE
When an employee is required to proceed on duty away from his principle area of work, other than on transfer, he shall be entitled to the following:
Breakfast...........................................................KShs. 250/=
Lunch...............................................................KShs. 300/=
Dinner..............................................................KShs. 300/=
Night stop...........................................................KShs. 850/=
Total for 24 hours...............................................KShs. 1,700/=
13. ACTING ALLOWANCE
Where an employee is required to act in a higher grade than his own for a period of not less than eight days, he shall be paid in addition to his basic wage an acting allowance equal to 25% of the basic minimum wage of that higher grade.
14.PROBATION
i) The first three months of employment with the employer will be treated as a probationary period and during such probationary period the contract will be terminable by either party giving seven days notice.
ii) Nothing in this paragraph shall prejudice the right of either party to terminate a contract summarily for a lawful cause.
15. WARNING SYSTEM
An employee who is guilty of an offence other than gross misconduct or other lawful cause of dismissal will be warned in writing.
The following procedures will be followed:
a) The 1st and 2nd warning letters shall be recorded on the employee's record and the shopsteward informed.
b) An employee with two warnings recorded in his/her record card who commits a third offence will be issued with a last and final letter of warning and the secretary General of the Union will be given a copy of the warning.
c) If he/she commits a further misconduct, the employee will be liable to summary dismissal.
d) If an employee completes 365 consecutive days from the date of the last warning without further fault, any warning(s) recorded in his/her card will be cancelled.
e) Where an employee is summarily dismissed for lawful cause, he/she shall be paid on dismissal all monies, allowances and benefits due to him/her up to the date of his/her dismissal. (Section 44 of the Employment Act 2007).
16.TERMINATION OF SERVICE
After completion of probationary period termination of employment shall be by either party giving the other party a written notice or upon payment in lieu thereof as follows:
• An employee with service between 1 and 10 years - One month’s notice period or pay in lieu of notice of one month’s basic salary plus house allowance.
• An employee with service between 10 and 15 years - Two months’ written notice or pay in lieu of notice of 2 months consolidated salary (basic plus house allowance).
• An employee with service over 15 years – 3 months written notice or pay in lieu of notice of 3 months consolidated salary (Basic plus monthly house allowance).
• Both the employer and the employee should not terminate employment while on annual leave unless notice is given before proceeding on leave.
17.REDUNDANCY
It is accepted by both parties that, in accordance with Section 40 of the Employment Act 2007, all cases of redundancy shall be subject to the following:-
a) Definition
"Redundancy" means the loss of employment occupation, job or career by involuntary means through means no fault of an employee involving termination of employment at the initiative of the employer and the practices commonly known as abolition of office, job or occupation and loss of employment due to the Kenyanization of a business.
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 grade. If the alternative employment is not acceptable to the employee concerned, he will be classified as redundant and, therefore, eligible for the entitlements outlined in Clause (f).
c) Selection of Redundant Employees
In deciding which employees shall be declared redundant the Company will assess the relative merits, ability, skill and reliability of the affected employees, but when these factors are equal the discharge will be on the basis of seniority.
d) Re-Engagement of Redundant Employees
Redundant employees will be given prior consideration for re-engagement by the company should a vacancy arise according to their qualifications.
f) Entitlement of Redundant Employees
In the event of an employee being declared redundant, he shall be entitled to:-
i)pay in lieu of notice as defined in clause 16 of the Agreement.
ii)payment of wages, overtime and any other remuneration which may be due to him calculated upon the date on which he/she ceases work;
iii) Pro-rata leave and leave allowance entitlement in accordance with the Agreement.
iv) Severance pay at the rate of 22 days for every completed year of service.
v) In calculation of severance pay, any duration served above 9 months will be treated as a complete year.
18. PROTECTIVE CLOTHING
Free protective clothing will be issued by the employer to all manual workers subject to the following:
a) The protective clothing shall remain the property of the employer.
b) The employer shall have the right to decide whether or not employees are required to keep the protective clothing issued for their use at their place of work.
c) Employers are recommended to make arrangements for protective clothing to be laundered but if this is impracticable and the employees are required to wash the protective clothing issued to them, two bars of soap will be supplied for this purpose.
Two pairs of overall shall be issued to such individual employees during each 12 months period.
(d) One pair of safety boots shall be issued to deserving employees and shall be replaced when need arises in consultation with union representatives.
e) Other details and rules governing the use and maintenance of protective clothing shall be decided by the employer.
19. RETIREMENT BENEFITS
(a) When an employee retires upon attaining retirement age of 60 years he shall be entitled to 22 days salary per each completed year of service.
(b) An employee retired on medical grounds shall be entitled to benefits as provided under (a) above.
(c) Appropriate notice or pay in lieu of notice as defined in clause 16 of this agreement shall apply.
(d) Provident Fund – The Company will establish a Provident Fund for employees who leave the Company.
20. ABSENTEEISM
Any employee absenting himself from duty, without first having obtained the proper approval of the Company shall forfeit any pay entitlement for such period of absence and shall also be subject to disciplinary action, which may include dismissal in accordance with the Employment Act.
Without prejudice to the foregoing, any employee who absents himself/herself on account of being held in police custody or remand for a continuous period of 14 days or more shall be regarded as having by his/her own volition, terminated his own employment subject to having no reasonable excuse acceptable to the Company.
21. CASUAL EMPLOYMENT
a) Casual employment shall be undertaken for a period not exceeding three consecutive months.
b) Casual employees shall be paid at the end of each day worked except where the employee has indicated to the Company in writing that payment be made weekly of on the last day of the contract. The rates of pay shall be based on the minimum basic wages for the jobs they are performing plus the House Allowance of that job as negotiated in this collective agreement.
c) The calculation of the hourly rates of casuals shall be as follows:-
Hourly pay = (grade minimum + house allowance) 191
22. DEATH OF AN EMPLOYEE
a) In the event of death of an employee, the company shall contribute KShs.30,000/= towards funeral expenses.
b) In the event of death of an employee, the next of kin will be entitled to the employee's benefits under clause 19 (a).
23. JOB GRADING, MINIMUM WAGES AND HOUSE ALLOWANCE
| GRADE | JOB TITLES/OCCUPATIONS | MINIMUM WAGE (1/4/2013 to 1/4/2014) | |
| Kshs. | Kshs. | ||
| Grade I | (a) Messengers, Cleaners, Gardeners
Blackeners, Loaders, Packer, Day Watchman (b) Night Watchman |
9,830.00
10,962.00 |
10,224.00
11,948.00 |
| Grade II | Auto-turners, Drillers, Tappers,
Millers, Hardness Testers Spring Grinders, Bush Fitters, Assistant Spring Assemblers, Reamers Assistant eye Rollers Assistant spray painters |
11,136.00 | 12,138.00 |
| Grade III | Machine Operator
a) Centreless Grinders, Press Operators, Forging Press, Springs Assemblers, Thread Rollers, Spring Eye Rollers b) Spray Painters, Copy Typists c) Car & Light Vans up to 4000 |
13,252.00 13,252.00 13,252.00 |
14,445.00 14,445.00 14,445.00 |
| Grade IV | a) Furnace Operator
b) Furnace Attendance |
13,252.00
11,136.00 |
14,445.00
12,138.00 |
| Grade V | a) Ungraded Artisans b) Artisan Grade III c) Artisan Grade II d) Artisan Grade I |
13,252.00
16,653.00 17,982.00 22,110.00 |
14,445.00
18,152.00 19,600.00 24,100.00 |
| Grade VI | Junior Clerks, Assistant Inspectors | 12,705.00 | 13,848.00 |
| Grade VII | General Clerks, Telephone
Operator, Receptionists, Storekeeper |
15,115.00 | 16,475.00 |
24. JOB GRADING, MINIMUM WAGES AND HOUSE ALLOWANCE
| GRADE | JOB TITLES/OCCUPATIONS | HOUSE ALLOWANCE (1/4/2013 to 1/4/2014) | ||
| Kshs. | Kshs. | |||
| Grade I | (a) Messengers, Cleaners, Gardeners
Blackeners, Loaders, Packer, Day Watchman (b) Night Watchman |
3,065.00
3,065.00 |
3,415.00
3,421.00 |
|
| Grade II | MACHINE ATTENDANTS
Auto-turners, Drillers, Tappers, Millers, Hardness Testers Spring Grinders, Bush Fitters, Assistant Spring Assemblers, Reamers Assistant eye Rollers Assistant spray painters |
3,071.00 |
3,421.00 |
|
| Grade III | Machine Operator
a) Centreless Grinders, Press Operators, Forging Press, Springs Assemblers, Thread Rollers, Spring Eye Rollers b) Spray Painters, Copy Typists c) Car & Light Vans up to 4000 |
3,105.00 3,105.00 3,105.00 |
3,455.00 3,455.00 3,455.00 |
|
| Grade IV | a) Furnace Operator
b) Furnace Attendance |
3,112.00
3,071.00 |
3,455.00
3,421.00 |
|
| Grade V | a) Ungraded Artisans
b) Artisan Grade III c) Artisan Grade II d) Artisan Grade I |
3,105.00
3,130.00 3,150.00 3,217.00 |
3,450.00
3,480.00 3,500.00 3,421.00 |
|
| Grade VI | Junior Clerks, Assistant Inspectors | 3,118.00 | 3,468.00 | |
| Grade VII | General Clerks, Telephone
Operator, Receptionists, Storekeeper |
3,130.00 | 3,480.00 | |
25. SUSPENSION
An employee may be suspended from duty for any reason for a period of 14 days with full pay until either lifted or services terminated.
26. GRATUITY
An employee whose services terminated or resigns from employment shall be entitled to gratuity at the rate of 22 days basic salary for each completed year of service. An employee who is dismissed for gross misconduct or absconds duty shall not be entitled to gratuity.
27. BAGGAGE ALLOWANCE
On retirement an employee will be entitled to Kshs.1,200/- as Baggage Allowance to cover the cost of transportation of household effects.
28. WAGES
a)Every unionisable employee in the service of the company as at 31st March, 2013 will be brought to the new Basic Minimum Wage or given a wage increase of 12% of his basic rate whichever is higher with effect from 1st April, 2013 for the first year of the Agreement.
b)With effect from 1st April, 2014 every unionisable employee shall receive a further 12% wages increase for the second year of the Agreement.
29. EFFECTIVE DATE AND DURATION
This Agreement shall come into force on 1st April, 2013 and shall remain in operation for a further period of 24 months. Thereafter the Agreement shall continue to be in force until such a time as either party desiring to amend it shall by giving one month's notice in writing to the other indicating their wish to amend or terminate the Agreement.
SIGNED FOR AND ON BEHALF OF THE COMPANY
D. NDERUA.
DIRECTOR
A. LUYALI
PERSONNEL MANAGER
SIGNED FOR AND ON BEHALF OF THE UNION
JUSTUS MAINA OTAKWA
GENERAL SECRETARY
.................................................................
ELIAS NYAWADE CLEMENT
CHIEF SHOPSTEWARD
WITNESSED BY:
.......................................
A.O. AMBENGE
SENIOR EXECUTIVE OFFICER,
FEDERATION OF KENYA EMPLOYERS
SIGNED IN NAIROBI THIS........................... DAY OF .............Jan................................. 2013
/jan
