MEMORANDUM OF AGREEMENT BETWEEN M/S PANESAR’S KENYA LIMITED OF P. O. BOX 45494 – 00100, NAIROBI (HEREINAFTER REFERRED TO AS THE “EMPLOYER/COMPANY”) OF THE FIRST PART AND THE KENYA BUILDING, CONSTRUCTION, TIMBER & FURNITURE INDUSTRIES EMPLOYEES’ UNION (HEREINAFTER REFERRED TO AS THE “UNION”) OF THE SECOND PART.
IN THE MATTERS OF TERMS AND CONDITIONS OF SERVICE SCOPE OF APPLICATIONS
PREAMBLE:
WHEREAS by terms of Recognition and Negotiating procedure Agreement signed between the Company and the Union, it was agreed that the Company has recognized the Union as a properly constituted body and sole labour organization representing the interest of the employees in the employment of the Company and:-
WHEREAS it was agreed that the rates of wages and general terms and conditions of employment to be paid and provided to employees in the employment of the Company shall be as negotiated and agreed between the Company and the Union.
NOW THEREFORE, the Company and the Union having successfully concluded negotiations at their Joint negotiating Committee agree as stated hereunder:-
PART 1 - RATES OF PAY:-
(a) Basic minimum wages (exclusive of Housing Allowance).
| Job Group | Minimum Basic w.e.f
1.1.2015 to 31.12.2015 |
Minimum Basic w.e.f
1.1.2016 to 31.12.2016 |
| 1A | 17,130.00 | 18,617.70 |
| 1B | 18,200.60 | 19,838.60 |
| 2 | 19,608.50 | 21,373.20 |
| 3 | 22,991.30 | 25,060.40 |
| 3B | 23,149.80 | 25,233.30 |
| 4 | 25,868.90 | 28,197.10 |
| 5 | 27,543.40 | 30,022.30 |
| Clerical III | 21,065.30 | 22,961.20 |
| Clerical II | 23,488.00 | 25,601.00 |
| Clerical I | 27,999.70 | 30,519.70 |
(i) The employees earning over and above the rates specified in their respective group shall have their personal rates increased by the percentage agreed, thus maintaining their personal differentials.
1st year of the agreement.......... 9%
2nd year of the agreement......... 9%
(ii) For the purpose of part I of this Agreement; see Job Classification in Appendices ‘A’ and ‘B’ attached to this Agreement.
(b) House or Housing Allowance
(i) An employee who is not provided with free housing accommodation by the employer shall be entitled to house allowance of 15% of the basic salary or
2,750/- whichever is greater.
(ii) For the purpose of implementation of this clause employees daily housing allowance shall be deemed to be employees group monthly housing allowance divided by 26.
PART II: TERMS AND CONDITIONS OF SERVICE
1. WORKING HOURS
(a) The normal working week shall consist of forty-four hours of work spread over six or five days a week. Provided that no employee will be required to work beyond 1.00 p.m. on Saturday without being paid overtime.
(b) The normal working week for day watchmen shall consist of 52 hours of work to be spread over 6 or 5 days of the week.
(c) A Flat rate of (400/-) Four Hundred Shillings per month shall be paid to watchmen over and above their normal monthly wages.
2. OVERTIME RATES:
In respect of hours worked in excess of the normal number of hours per week, overtime shall be payable at the following rates:-
(a) Working days -1.5 times
(b) Rest days and gazetted Public holidays -Double rate
3. ANNUAL LEAVE
(a) After completion of each period of twelve (12) consecutive months service with an employer, an employee shall be entitled to annual leave for a period covering twenty eight (28) working days with full pay (including rest days but excluding gazetted Public Holidays that might fall within the leave period).
(b) Where employment is terminated before the completion of any twelve months leave earning period, an employee shall be entitled to pro-rata leave with full pay.
(c) An employee shall be entitled to leave pay in advance before he proceeds on annual leave.
(d) Where an employer and an employee mutually agree that the latter should not proceed on his annual leave, shall be paid his leave and further will be entitled to his leave travelling allowance in accordance with Sub-clause 4.
4. LEAVE TRAVELLING ALLOWANCE
(a) After each period of twelve (12) months continuous service with an employer, an employee shall be entitled to leave travelling allowance of Kshs 3,700/- to be payable to an employee proceeding on annual leave.
(b) An employee who is requested by the employer to proceed on leave before the expiry of 12 months or to commute his leave to cash shall be entitled to full leave travel allowance. Provided that an employee shall be eligible for leave travel allowance only in any consecutive 12 months period.
5. GAZETTED PUBLIC HOLIDAYS
a) All Gazetted Public Holidays will be granted as days off with full pay.
b) An employee required by his employer to work on Gazetted Public Holiday shall be paid overtime at the appropriate overtime rate i.e. Double time.
6. MATERNITY LEAVE
Employment Act 2007 shall apply.
7. PROBATIONARY PERIOD
(a) The probationary period shall be three months during which period services may be terminated by three working days notice by either party or three days pay in lieu of notice.
(b) After the completion of the probationary period, an employee shall become a permanent employee.
8. SICK LEAVE AND BENEFITS
After the probationary period and subject to the production of certificate of incapacity covering any period claimed by the employee signed by a qualified medical practitioner, an employee shall be entitled to sick leave in any one period of twelve months as follows:-
(a) The first 35 days with full pay and
(b) Thereafter the next 35 days with half pay.
(c) No employee shall be eligible for sick leave in respect of any incapacity due to gross negligence on his own part.
(d) In the event of full time hospitalization for a period in excess of 60 days, further days (benefits) may be granted subject to discussion between the Union and the Employer bearing in mind seniority and length of Service.
(e) An employee who is absent from work due to illness or other physical incapacity, shall continue to be paid housing allowance in full until the expiry of the period stipulated in paragraph (a) and (b) of this Clause.
9. INJURY BY ACCIDENT
The provisions of the Work Injury Benefits Act shall apply for any injuries received whilst on duty.
10. PAYMENT OF WAGES
(a) Wages shall normally be paid to the employees at the end of the calendar month in which they are earned.
(b) Should the end of such a month fall on a rest day or a gazetted public holiday, the wages shall be paid to the employees prior to such a day.
(c) An employee is entitled to be shown computation of his/her monthly wages, including overtime and deductions.
(d) Except in unavoidable circumstances, payment of wages will be made on a working day and during working hours in accordance with the law.
Provided that:-
The method or mode of payment of wages shall in no way prejudice the right of an employee to enjoy any or all fringe benefits stipulated in this Agreement.
(e) For the purposes of tabulation of daily rates of wages for unionized employees, the daily rate shall be deemed to be the unionized employee’s monthly rate of wages divided by 26.
11. REDUNDANCY
Where the employment of an employee is to be terminated on account of redundancy, the following principles shall apply:
(a) The Union shall be consulted of the reasons for and the extent of the intended redundancy;
(b) The employer shall have due regard to seniority in time and to the skill, ability and reliability of each employees affected by the redundancy.
(c) Any leave due to any employee who is declared redundant shall be paid for.
(d) The redundant employees shall be entitled to notice as follows;
Upto 3 year’s service - 1 month’s notice or 1 month’s pay in lieu of notice.
Over 3 years to 6yrs service - 2 months notice or 2 months pay in lieu of notice.
Over 6 years service - 3 months notice or 3 months pay in lieu of notice.
(e) An employee declared redundant shall be entitled to severance pay at the rate of twenty six (26) days pay for each completed year of service.
12. SAFARI ALLOWANCE
1. An employee who is required to work away from his principal area of (10%) employment (i.e. outside City or Municipal Boundary) shall be paid subsistence and accommodation allowance as follows:
(a) Breakfast……………………………………..……….. Kshs. 156.09
(b) Lunch…………………………………………..……….. Kshs. 325.16
(c) Supper…………………………………………….…….. Kshs. 520.30
(d) For an overnight stop in Nairobi Area and Mombasa Municipality, an employee shall
be entitled to subsistence allowance payable under provisions (a),(b),(c) to accommodation
allowance of ……………………………………..…......…KShs.1, 040.60
(e) For an overnight stop elsewhere, an employee
Shall be entitled in addition to subsistence allowance
Payable under provisions (a), (b) and (c) to
Accommodation allowance of…………………….…….KShs.910.50
(f) For an overnight stop when the employer provides Accommodation……………. KShs.780.45
(g) Where the employer meets all expenses, no
safari Allowance Will be paid provided that such
an employee shall be paid inconvenience
Allowance of .…………………………………………….KShs.650.40 per day.
(h) An employee who is required to work outside the workshop but within Nairobi County shall be provided with adequate/sufficient amount to transport him to and from the place or work.
2. The subsistence and accommodation allowance payable under Sub-Clause (1) of this Clause shall cease to be payable to an employee after sixty consecutive day’s absence on duty from his principal area of employment.
NB:- “Vehicles used for transportation are not acceptable as accommodation”. The above rates are the minimum but the employer and the employee may agree on an alternative arrangement that may be favorable than the above.
13. PROTECTIVE CLOTHING:
(a) Employees required to wear protective clothing will be provided with such clothing in accordance with the provisions of the Occupational Health and Safety Act 2007. The protective clothing so issued shall be replaced at least once a year.
(b) Employees engaged in jobs of an exceptionally dirty nature, covered by Occupational Health and Safety Act 2007 should be provided with two suitable pair of overalls and a pair quality boots, while security guards will be issued with heavy overcoat, whistle and torch.
(c) Overall and uniforms shall be dealt with by the Works Committee.
(d) Employees, who in course of their work, have their hands exposed to materials either of a toxic nature or difficult to clean by normal washing, shall be provided with protective Clothing.
(e) An employee who is provided with uniform/protective clothing will be issued with one bar of soap each month for cleaning purposes.
(f) An employee who fails to wear the provided protective clothing will be disciplined in accordance with Clause 22 of the Collective Agreement.
14. RETIREMENT OF EMPLOYEE
(a) An employee may be retired by the employer where such employee has reached the age of fifty five (55) years, such age being determined by the identity card or birth certificate of the employee.
(b) Where an employee has been declared medically unfit to perform his/her duties by a medical practitioner, the employer may retire such an employee on medical grounds.
(c) Where the employer exercises his right in accordance with paragraph (a) or (b) above, the following conditions will apply:-
(i) One month notice of retirement or pay in lieu of notice will be given.
(ii) Any leave and leave travel allowance that may be due will be paid in accordance with Clause 3 and 4 of this Agreement.
(iii) A retirement benefit equal to 30 day’s gratuity pay for each completed year of service. The rate of pay at the time of retirement will be the rate used for calculating this benefit.
(iv) After the completion of 3 years, an employee will be entitled to pro-rata service gratuity for every completed month.
(d) The employee has the option of retiring at the age of 50 years provided such an employee has served for a minimum period of five years and will be eligible for benefits under this Clause. In such a case, a notice of 3 months should be given,
15. NIGHT SHIFT
a. Where regular shift is in operation and overtime is not payable, night shift allowance shall be payable to the employees working on shift between 6.00 pm and 6.00 a.m.
b. An employee working at night (i.e. between 6.00 p.m. and 6.00 a.m. shall be entitled to a night shift allowance of (30.00) thirty shillings per hour so worked.
c. The employees working on night shift shall get a cup of tea while on such duty.
d. Where an employee is required to start or finish work between the hours of 7.00 p.m. and 6.00 a.m. he will be provided with transport from or to his residential area.
16. NATIONAL SOCIAL SECURITY FUND:
The Law shall be followed.
17. CERTIFICATE OF SERVICE
1.Every employee shall be given a certificate of service by his employer upon the 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;
(d) the nature and usual place of employment;
(e) the date when employment ceased; and
(f) such other particulars as may be prescribed.
2. Subject to subsection (1) of this section an employer is not bound to give to any employee any testimonial, or reference or certificate relating to the character or performance of an employee.
3. Any employer who willfully or by neglect fails to give an employee a certificate of service in accordance to with subsection (1) of this section, or who in a certificate of service includes a statement which he knows to be false, shall be guilty of an offence.
18. LETTER OF APPOINTMENT
On engagement, an employee shall be issued with a letter of appointment by his employer.
19. SUPPLY OF MILK
The employees working in spray-painting Section and any person who in the opinion of the factory inspector requires milk as a prophylactic shall be issued with half liter of milk per day.
This must be consumed in the factory. Incase milk is not available; payment shall be made in lieu.
20. TERMINATION OF EMPLOYMENT
(a) After the probationary period, employment shall be terminable as follows:-
(i) Upto 3 years service -1 month’s notice or 1 month’s salary in lieu.
(ii) Over 3 years service – 2 month’s notice or 2 month’s salary in lieu.
(b) Nothing in paragraph (a) of this Clause shall prejudice the right of either party to terminate a contract summarily for lawful cause.
(c) If an employee is summarily dismissed, a copy of the dismissal letter shall be sent to the Branch Secretary for information.
(d) In the case of an employee being terminated at the initiative of the employer after completion of one year service such an employee will be entitled to gratuity as Clause 14 of this Agreement.
(e) Where an employee has served for nine months it will be rounded off to a year for purpose of paying gratuity.
21. DEATH OF AN EMPLOYEE
(a) When the death of an employee from any cause whatsoever is brought to the notice of his employer the employer shall as soon as practicable thereafter give notice thereof in the prescribed form to the Labour Officer, or if there is no labour officer, to the District Commissioner of the District in which the employee was employed.
(b) The employer shall pay to the Labour Officer or District Commissioner as the case may be all wages due to the employee at the date of his death and shall deliver to him all property belonging to the deceased employee for transmission to the person legally entitled thereto.
(c) Should any employee during the cause of his/her employment be killed or incapacitated by injury for a period exceeding 3 days, the employer shall as soon as practicable send to the labour officer or district commissioner a report in a prescribed form.
(d) The deceased will be considered as an employee who has retired and will be eligible for benefits under the Clause of retirement benefits of this agreement to be paid to his or her estate, provided that the cause of death is not covered by the Workmen’s Compensation Act.
(e) An employee will be provided with a coffin at the cost of Kshs. 13,000/- when money is to be given instead of coffin, and Kshs. 30,000.00 or as per Insurance Policy whichever is greater.
22. WARNING SYSTEM
Any 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 to the employees employment record card and shall remain valid for a period of 12 months from the date of issue. If within the twelve months period the employee commits similar or any other offence which does not warrant dismissal he will be further warned in writing in his employment record card and the two warnings shall remain valid for a period of 12 months from the date of second warning. If within this 12 months period the employee commits another 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 the final warning shall be sent to the Branch Secretary of the Union.
23. DEFINITION OF A TRAINEE.
(a) for purpose of this Agreement a trainee shall be a person engaged by the employer in order to be given instructions, which will eventually enable him to perform satisfactorily a task within Group 2 of the Job Classification.
(b) The period of training shall not exceed 2 years duration. Any shorter period shall be solely at the discretion of the employer.
(c) The rate of pay for 1st year of training shall be equal to the rate of unskilled labour in Group l(a).
(d) The rate of pay for the second year of training shall be fixed at the point midway between the rates in force for Groups l(a) and 2 irrespective of the level of skill attained. After two years training the rate of pay will be as Group 3(a).
24. ABSENTEEISM
(a)An employee is considered absent if he remains away from work without prior permission for a whole day.
(b)The formula for calculating the amount to be deducted for absenteeism shall be the appropriate monthly rate (excluding house allowance) divided by 26 and multiplied by the number of days absent.
25. LATENESS
(a)An employee who remains away from his place of work without prior permission for part of a day shall be considered to be late.
(b)The formula for calculating the amount to be deducted for lateness shall be appropriate monthly rate (excluding house allowance) divided by l9l and multiplied by the number of hours late.
26. ACTING ALLOWANCE
Where an employee is required to work in full acting capacity for a period of not less than l5 consecutive days in an occupation or grade for which the minimum wage is prescribed in Part l (i) of this Agreement is higher than the minimum wage normally earned by the employee, he or she shall be paid acting allowance at the rate not less than the difference between such higher minimum wage and his or her normal wage for the period after the qualifying period.
27.COMPASSIONATE LEAVE
1. An employee desiring to take leave on compassionate or religious grounds shall by prior arrangement with the employer be granted such leave upto his earned leave entitlement under clause 3 of this Agreement and the leave taken shall be
subsequently set off against his annual leave.
2. An employee may in addition to the leave provided to the sub clause l of this Clause be granted 5 days compassionate leave without pay in any one year.
3. Where an employee request for compassionate leave to attend a funeral for a family member such will be granted one day with full pay.
28. LEAVE OF ABSENCE
Leave of absence without loss of pay may be granted to employees for the purpose of attending Union Conference and Educational Seminars in the interest of good industrial relations if mutually agreed between the employer and the Union. The Union shall apply to the employer on behalf of the employee for such leave l0 days in advance. The application letter shall be signed by the Union Branch Secretary.
29. WATER PROOF-NOTICE BOARD
The employer shall allow the use of waterproof notice board for the posting by accredited Union officers of materials and notice for the conduct of Union affairs. The notices will only be posted on the authorized notice board and with prior approval of the Management.
30. DISPUTES
Any dispute arising out of the interpretation of any Clause(s) of this Agreement shall be referred to the Joint Industrial Council of the Union and the Company. Failing settlement at the Joint Industrial Council, then such a dispute may be referred to the Minister for Labour in accordance with Labour Relations Act.
31. TOOLS ALLOWANCE
Any employee who uses his tools will be paid tools allowance of Shillings one thousand (1,000/-) per month provided that the said employee has the necessary tools to perform his duties.
32. CHECK OFF SYSTEM
The employer shall effect deduction of Union dues/Agency fees from wages of each Unionisable employee covered by the Collective Bargaining Agreement who is not a member of the Union in accordance with section 49(1) of the Labour Relations Act 2007.
33. MEDICAL TREATMENT
The employer undertakes to make arrangements for medical treatment in respect of an employee working for the Company together with his immediate family of himself, his wife and four children under the age of l8 years. Such arrangements to be made with an Insurance Company.
34. SENIORITY WAGE INCREASE (NEW CLAUSE)
The employer shall recognize an award a seniority wage increase to all his/her employees with long period of service or as follows.
(i) 5years to 10years-2.5%
(ii) 10years to 20years-5%
(iii) Over 20 years-7.5%
35. EFFECTIVE DATE AND DURATION
This Agreement shall be effective from 1st January 2015 and it shall remain in force for a period of not less than two years, thereafter it shall continue in force pending amendment by mutual agreement. Any party desiring to amend the Agreement shall give two month’s written notice setting out in detail the amendment required.
SIGNED FOR AND ON BEHALF OF THE EMPLOYER:
…………………………… …………………………..
MR. PANESAR MOHAN
DIRECTOR
MRS. GRACE NZULA
HUMAN RESOURCES
SIGNED FOR AND ON BEHALF OF THE KENYA BUILDING, CONSTRUCTION,
TIMBER AND FURNITURE INDUSTRIES EMPLOYEES’ UNION
MR. JULIUS MAINA
KENYA BUILDING, CONSTRUCTION,
TIMBER AND FURNITURE INDUSTRIES EMPLOYEES’ UNION
MR. MORRIS MUTETI
SHOPSTEWARD
IN THE PRESENCE OF:
………………………………………………
MR. MOSES OMBOKH
SENIOR EXECUTIVE OFFICER
FEDERATION OF KENYA EMPLOYERS
SIGNED AT NAIROBI, THIS ………………………….DAY OF…………………2015
JOB CLASSIFICATION
Group 1(a) (Unskilled labour)
1. Packer
2. Sweeper
3. Cleaner
4. Watchmen
5. Driver’s Mate
6. General Labourer
7. Coir an0d Cotton Preparer
8. Mattress Builder Labourer
9. Cotton Pads Labourer
10. Messenger
11. Trainee
Group I(b) (Unskilled Labour)
1. Assistant Machine Operator (See Appendix “B” 1)
Group 2 (Semi-skilled Labour)
1. Storeman
2. Ungraded artisan (See Appendix “R” 1)
3. Motor driver light (not exceeding 4 tons)
4. Machine Operator (See Appendix “8” 3)
5. Assembler
6. Sewing Machinist
7. Forklift truck driver (not exceeding 4 tons)
8. Spring heat treater
9. Degreaser
10. Riveter
11. Chief Watchman
12. Assistant to Group to Group 3 Machine Operator (See Appendix “B” 4)
Group 3 – (Skilled labour and Artisans)
(a) 1. Tape Edger
2. Tool Setter
3. Fork Lift Truck Driver (tare weight over 4 tons)
4. Store – keeper
5. Machine Operator (See Appendix “B” 5)
(b) 1. Artisans with grade III Trade Test Certificate.
2. Lorry Driver, Medium (Over 2 tons t. w. hut less than 8 tons)
GROUP 4 (ARTISANS)
1. Artisans with Grade II Trade Test Certificate.
GROUP 5 (ARTISANS)
1. Artisans with Grade I Trade Test Certificate.
2. Motor Driver, Heavy (Capacity 8 tons and over)
GROUP 6 (CLERICAL)
1. Grade III - (See Appendix “B”)
2. Grade II - (See Appendix “B”7)
3. Grade I - (See Appendix “B”8)
APPENDIX “B”
1.Group (b) Item I Assistant Machine Operator
A person who is capable of taking over the operation of a machine in the temporary absence of a machine operator.
2. Group 2 Item 2 Artisan
An artisan is a person who is employed in one of the following trades:-
Painters
Carpenter
Polisher
Upholsterer
Mason
Electrician
Welder
Mechanic
Tinsmith/Sheet Metal Worker
3. Group 2 Item 4 Machine Operator
Sets up and operates automatic, semi-automatic or manual machines used for cutting, pressing, bending, joining, drilling, shaping or moulding materials like timber, metal textiles, foam or plastics. Starts machine, feeds machine with materials to be pressed, observes proper flow of material examines product and stops machine when product is substandard, adjusts and cleans machine to ensure product meets required standard.
4. Group 2 Item 12 Assistant to Group 3 Machine Operator
A person who is capable of taking over the operation of a group 3 machine in the temporary absence of a machine operator.
5. Group 3(a) Item 5 Machine Operator
As defined under group 2 Appendix “B” item 3 but with the addition of the following:
APPENDIX “B” (4)
These Machine operators require extra skill, experience and knowledge to be able to operate the following or similar machines, i.e.
(i) Garnet Machine
(ii) Dilo Machine
(iii) Hand Operated Lathe Machine
(iv) Micro quilt Machine
(v) High Frequency Welding
6. Group 6 Item 1 Clerical Grade III
Clerical Grade III task. Tasks which are essentially simple. The tasks are subject to close supervision, scrutinizing and checking and are carried out on routine basis i.e. clock cards, production records, scrap records, sorting, routine forms, filing, receiving and dispatching of correspondence, store records, telephone operator (Switchboard of 1-5 lines and 1- 40 extensions).
7. Group 6 Item 3 - Clerical Grade 1
Clerical Grade II task. Tasks which are of routine character but require an element of initiative and, therefore, require a degree of experience and or special aptitude i.e. Receipting, Cash to Bank, Payroll, Payment of wages, Routine correspondence, Goods received reports, purchase invoices clearing and forwarding, Copy Typist, Statistical records, Telephone Operator (Switchboard of over 5 lines and over 30 extensions).
8. Group 6, Item 3 - Clerical Grade. 1
Clerical Grade I task. Tasks which require considerable experience and regular employment of judgment and initiative and which require specialized knowledge gained by training, study or experience i.e. Shorthand Typist, Accounting and other machine operation, cheque writing, petty cash and postage, purchasing, sales invoicing, cash sales, book-keeping, production control, statistics, costing, personnel records, checking the work of junior clerks.
