MEMORANDUM OF AGREEMENT BETWEEN LEATHERLIFE EPZ LIMITED AND THE KENYA CHEMICAL AND ALLIED WORKERS UNION
1. SUBJECT MATTER
The terms and conditions of employment set out in this agreement shall be observed by all parties to it and shall apply to all employees covered by the recognition agreement signed between the parties.
2. DEFINITION OF AN EMPLOYEE
It is understood and agreed that the word employee in this agreement shall cover all employees regardless of sex unless specifically stated otherwise.
3. PROBATIONARY PERIOD
All employees shall be considered to be on probation for a period not exceeding six months from the date of engagement, but may be extended for a further three months with consent of an employee, and during the first month, services can be terminable by either party by giving 48 hours notice or pay in lieu of such notice thereof. During the 2nd and 3rd months, services will be terminable by 7 days notice or pay in lieu of such notice thereof.
4. WORKING HOURS
An employee shall normally be required to work, whether on shift or otherwise, a total of forty-five (45) hours per week, exclusive of the meal break hours, provided that an employee who is required to work in excess of such hours shall be paid for such excess hours at the appropriate overtime rates as provided by Clause 5 of this Agreement. For the purposes of this agreement, the agreed working hours will be effective from 1st January 2011.
5. OVERTIME
(a) For hours worked on week-days in excess of hours set in Clause 4 – Time and a half.
(b) For hours worked on Saturdays in excess of hours set in Clause 4 – Time and a half.
(c) For hours worked on Rest days and Gazetted Public Holidays - Double time.
6. EMPLOYEES IN ACTING CAPACITY
An employee who is temporarily appointed or promoted to any acting capacity for a minimum period of 14 days, shall receive such rate of pay, where such acting capacity carries a higher rate of pay than the Job in which he/she is normally employed, and shall revert to his/her former rate of pay immediately on reverting to his/her former job.
7. GAZETTED PUBLIC HOLIDAYS
An employee shall normally be granted leave with full pay or Gazetted Public Holidays, provided that, an employee who is required to work on such holidays, shall be paid double as provided by Clause 5 above.
8. ANNUAL PAID LEAVE
a) Every employee shall be entitled to 23 working days paid leave for the first year of this agreement and 24 working days for the second year of the agreement except those employees who are currently entitled to over 26 working days shall continue benefitting as such during the period of the agreement
b) In the event of gazetted public holidays falling within the leave period such gazetted holidays shall be added to the leave entitlement.
c) The date of an employee’s leave shall normally fall after the completion of every 12 months service from his/her date of employment but may be taken any time after mutual agreement between the employer and the employee concerned.
9. COMPASSIONATE LEAVE AND LEAVE OF ABSENCE
i) An employee desiring to take leave on compassionate grounds shall by prior arrangement with the employer be granted such leave up to his earned leave entitlement under clause 8 and the leave taken shall be subsequently set off against his/her annual leave.
ii) An employee may in addition to the leave provided for in sub clause (i) of this clause be granted 10 days compassionate leave without pay in any one year.
10. SAFARI ALLOWANCE
An employee who is working away from his/her normal place of work on the company’s business shall be granted a safari allowance to cover lodgings, meals and expenses incurred as follows:-
.......................................1ST YEAR...................2ND YEAR
.........................................(Kshs).............................(Kshs)
Breakfast- ......................100.................................150
Lunch-........................... 200................................200
Dinner-..........................200.................................250
Accommodation-.........500..................................55
11. CERTIFICATE OF SERVICE
1) Every employee shall be given a certificate of service by his employer upon termination of his employment unless such employment has continued for a period of less than four consecutive weeks and every such certificate shall contain:-
a) the name of the employer and his postal address
b) the name of the employee
c) the date when employment commenced ; and
d) the date when employment ceased; and
e) Such other particulars as may be prescribed.
2) Subject to sub section (1) of this section, the employer is not bound to give any employee any testimonial reference or certificate relating to the character of the employee.
i. The employer if willfully or by neglect fails to give an employee a Certificate of Service in accordance with subsection (1) of this section or if in a certificate of Service include a statement which he knows to be false shall be guilty of an offence.
12. TERMINATION OF EMPLOYMENT (NOTICE)
Except where an employee is summarily dismissed for Gross Misconduct or other lawful cause as prescribed in the employment act, 2007 and provided the probationary period has been completed either party will be required to give notice of termination of service or pay in lieu of such notice as herein under:-
(i) An employee with between 1-5 years of service- one month notice
(ii) Over 5 years of service- two months notice
13. WARNING SYSTEM
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 12 months from the date of issue. If, within the 12 months period the employee commits a similar or any other offence which does not warrant dismissal, he will be further warned in his employment record card and the two warnings shall remain valid for a period of 12 months from the date of issue. If, within this 12 months period the employee commits a further offence which does not warrant 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. A final letter of warning will remain valid for a period of one year from the date of issue. A copy of final warning shall be sent to the General Secretary of the Union.
14. MATERNITY/ PATERNITY LEAVE
A woman employee shall be entitled to three months maternity leave with full pay, while a male employee shall be entitled to two weeks paternity leave with pay as stipulated in the Law in the Employment Act, 2007.
Provided that:-
a) A woman who has taken three months maternity leave shall not forfeit her annual leave in that year.
15. LEAVE TRAVELLING ALLOWANCE
An employee proceeding on authorized annual paid leave will be paid leave travel allowance of four thousand shillings (Kshs. 4,000/=) for the first year and four thousand five hundred shillings (Kshs 4,500/-) for the second year of the Agreement.
16. UNIFORMS, OVERALLS AND PROTECTIVE CLOTHING
An employee who is required to wear uniforms or overalls by the nature of his/her work or in accordance with the provision of the Occupational Safety and Health Act, 2007 shall be issued with proper protective gear and/or clothing to each employee.
17. MEDICAL TREATMENT
The Company undertakes to pay the cost of such medical expenses in accordance with the provisions prescribed by the Laws of Kenya relative to Employment of persons medical treatment rules. The payment of medical expenses will be made to all employees of the company provided that those illnesses are those covered by the Act, and subject to an employee attending to treatment in hospitals appointed by the Company.
18. SICK LEAVE
After completion of probationary period successfully, an employee shall be entitled to sick leave with full pay to a maximum of 30 days in any one year subject to the employee producing a medical certificate of incapacity covering the period of sick leave claimed signed by a registered Medical Practitioner or by a doctor. Such sick leave with pay can be extended beyond the period stipulated above at the discretion of the Company.
19. REDUNDANCY/RETRENCHMENT
a) Definition
“Redundancy” means loss of employment, occupation, Job or career by involuntary means through no fault of an employee involving termination of employment at the initiative of the employer and practices commonly known as abolition of office, of a business, but it does not include any such loss of employment by a domestic servant.
b) Alternative Employment
In an effort to avoid redundancy, the Company will Endeavour to arrange for suitable alternative employment with 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 be eligible for the benefit outlined in Clause (f).
c) Consultations
In the event of redundancy, the Company undertakes to hold prior discussions with the Union concerning the reasons for and the extent of the intended redundancy.
d) Selection of Redundant Employees
In deciding which employees are to be declared redundant, the Company will assess the relative merits, ability and reliability of the affected employees and also age, but when these factors are equal the discharge will be on the basis of seniority. Membership of the Union will not be a factor.
e) Re-engagement
Redundant employees will be given prior consideration for re-engagement by the Company should a vacancy arising according to their qualification.
f) Entitlement of Redundant Employee
In the event of an employee being declared redundant, he will be entitled to:-
i) Normal notice or pay in lieu of notice as defined in Clause 12 of the Agreement.
ii) Payment of wages, overtime and any other remuneration due to the employee calculated up to the date on which he/she ceases work.
iii) Pro-rata Leave and leave allowance entitlement in accordance with the agreement.
iv) Severance pay shall be as follows
1) 1- 5 years of service- 15 days for each completed year of service
2) over 5 years- 30 days for each completed year of service.
Provident Fund and any other retirement benefits (if any) are in no way affected by these arrangements.
20. GRATUITY/RETIREMENT BENEFITS
An employee who retires from the Company’s employment on ground of age of 60 years or medical grounds, normal termination or death while in service shall be entitled to service/gratuity payment as follows;-
1-8 years of service - 16 days per each completed year of service.
Over 8 years of service – 20 days per each completed year of service.
21. DEATH OF EMPLOYEE
In case of an employee dying while in the company service, the Company shall contribute Kshs 25,000/- to cater for funeral expenses.
22. BAGGAGE ALLOWANCE
When retiring at 60 years of age or on Medical grounds or on being declared redundant, an employee will be given a baggage allowance of Kshs 10,000/-
23. TRANSPORT
The Company shall provide transport to the employees reporting on or leaving duty after 8.00 pm. A minimum of Kshs 350/- will be paid to the employees who qualify to benefit
24. INJURY BY ACCIDENT
An employee who is injured by accident arising out of and in the course of his/her duty shall be entitled to compensation in accordance with the provisions of the Work Injury Benefits Act 2007.
25. SUMMARY DISMISSAL
This will be dealt with in accordance with Section 44 of the Employment Act 2007 which reads as follows:-
Any of the following matters may amount to gross misconduct so as to justify the summary dismissal of an employee for lawful cause, but the enumeration of such matters shall not preclude an employer or an employee from respectively alleging or disputing whether the facts giving rise to the same, or whether any other matters not mentioned in this section, constitute justifiable or lawful ground for the dismissal:-
a) if, without leave or other lawful cause, an employee absents himself from the place proper and appointed for the performance of his work;
b) if during working hours, by becoming or being intoxicated, an employee renders himself/herself unwilling or incapable of performing his work properly;
c) if an employee willfully neglects to perform any work which it was his duty to have performed, or if he carelessly and improperly performs any work which from its nature it was his duty, under his contract, to have performed carefully and properly.
d) If an employee uses abusive or insulting language, or behaves in a manner insulting, to his employer or to a person placed in authority over him by his employer.
e) if, an employee knowingly fails or refuses to obey a lawful and proper command which it was within the scope of his duty to obey, issued by his employer or a person placed in authority over him by his employer.
f) if, in the lawful exercise of any power of arrest given by or under any written law, an employee is arrested for a cognizable offence punishable by imprisonment and is not within fourteen days either released on bail or on bond or otherwise lawfully set at liberty.
g) If, an employee commits, or on reasonable and sufficient grounds is suspected of having committed, a criminal offence against or to the substantial detriment of his employer or his employers’ property.
26. TEA
The company shall continue providing tea as has been the practice.
27. HOUSE ALLOWANCE
An employee shall be entitled to a house allowance equivalent to 15% of one’s basic wage in the first and second year of the agreement. Company will improve this to 20% in the next CBA.
28. JOB IDENTIFICATION CARDS
Each employee will be provided with a job identification card by the employer. If, the employee loses the card, he/she will share the cost of replacement
29. BASIC MINIMUM RATES AND GENERAL WAGE INCREASE
Existing employee of the Company in the categories/ grades shown in clause 30 below shall get a General Wage increase of 18% in the first year of the Agreement and a further 21% in the second year of this Agreement
30. JOB GRADING
|
GRADE A •General workers including cleaner, •Sweeper, messenger, watchman |
1.5.2010-
30.4.2011 6221 |
1.4.2011-
31.3.12= 18% 7341.00 |
1.4.12-
31.3.13= 21% 8883.00 |
| GRADE B
•Turn Boy/ loader, cook/ tea maker |
6461 |
7624.00 | 9225.00 |
| Grade C
•Machine Attendants •Junior Clerks |
7112 |
8392.00 |
10,154.00 |
| Grade D
•Machine Operator •Ungraded artisan •Drivers (cars& Light Vans) |
8,400 |
9,912.00 | 11,994.00 |
| Grade E
•Store Keeper •General clerk •Telephone operator •Receptionist |
9495 |
11204.00 |
13557.00 |
| Grade F
•Artisan Grade 3 •Driver- medium vehicles |
10,520 |
12,390.00 | 14,992.00 |
| Grade G
•Artisan Grade 2 •Shift supervisors •Laboratory Assistants •Lorry drivers |
11,790 |
13,912.00 |
16,834.00 |
| Grade H
•Artisan Grade 1 •Heavy commercial driver •Cashier •Laboratory technician |
14,319 |
16,896.00 |
20,444.00 |
NB The above job classification will remain until proper Job evaluation is carried out with the assistance of FKE
31. EFFECTIVE DATE AND DURATION OF AGREEMENT
This agreement shall be effective from the 1st day of April 2011 and it shall remain in force for a period of two (2) years, and thereafter until it is amended by mutual agreement between the two parties, provided that the party desiring to amend or terminate the agreement shall give in writing one months’ notice of their intention and shall set out in details the amendments or alternations which such party so desires.
SIGNED FOR AND ON BEHALF OF THE COMPANY
MUMTAZ MUGHAL____________________________
EXECUTIVE DIRECTOR
WITNESSED BY:
HASSAN ABDI
PLANT MANAGER______________________________
SIGNED FOR AND ON BEHALF OF THE UNION
WERE DIBO OGUTU-OGW
NATIONAL GENERAL SECRETARY______________________________
WITNESSED BY:
HEZRON OPIYO
DEPUTY NATIONAL GENERAL SECRETARY_____________________________
JACKSON NGULU MUEKE
BRANCH SECRETARY- ATHI RIVER ______________________________
JAMES O. OBURA
AREA SECRETARY
NAIROBI, CENTRAL & EASTERN REGIONS _______________________________
ARTHUR INGUTIA
SHOPSTEWARD_________________________________
KENNEDY SHIKAMI
SHOPSTEWARD_________________________________
IN PRESENCE OF
LINUS W KARIUKI
MANAGER, INDUSTRIAL RELATION
SERVICES – FKE _________________________________
DATED: THIS……………………………… DAY OF……..……..…………………2014
