MEMORANDUM OF AGREEMENT BETWEEN PZ CUSSONS EAST AFRICA LIMITED (HEREINAFTER CALLED THE "COMPANY") OF THE FIRST PART AND KENYA CHEMICAL AND ALLIED WORKERS' UNION (HEREINAFTER CALLED THE "UNION") OF THE SECOND PART
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1. PREAMBLE
The terms and conditions of employment set out in this Agreement will be observed by the parties to it and will cover all those employees whose job titles are designated in Clause 1(a) of this Agreement and all employees covered by the Recognition Agreement signed between the parties.
1(a) MONTHLY MINIMUM WAGES DURING THE PERIOD OF THIS AGREEMENT.
The minimum monthly wages / rate of pay for each grade shall be as indicated below:-
| JOB TITLES | 1.6.2013 to 31.05.2014 | 1.6.2014 to 31.05.2015 | 1.6.2015 to 31.5.2016 |
| (Shs.)
1st Year |
(Shs.)
2nd Year |
(Shs.)
3rd Year |
|
| Grade 6
Store worker Yard Attendant General Cleaner Canteen Attendant Fat Melter Effluent Attendant Helper - Engineering Office Messenger Laboratory Attendant |
33,612 |
36,973 |
40,670 |
| Grade 5
Assistant Debtor Control Clerk Typist Labelling Machine Operator Merchandisers Promoters Store Delivery Personnel Caustic Dissolvers Receptionist Abstract Clerk Despatch Clerk Local Purchasing Clerk Import Purchasing Clerk Sales Day Book Clerk General Duties Clerk |
35,028 |
38,531 |
42,384 |
| Grade 4
Additive Weighing Operator Storekeeper - Engineering Store Machine Operator - TMH Senior Merchandiser Van Salesman Driver Electrician 111 (GTT 111) Mechanic 111 (GTT 111) Fitter 111 (GTT 111) Services Equipment Operator Carpenter Lye Treater Stamping Machine Operator Wrapping Machine Operator Assistant Soap Boiler Assistant Bleaching Operator Assistant Drier Operator Assistant Evaporator Operator Wages Clerk Receipt Cash Book Clerk Sales Clerk Production Control Clerk Fork Lift Driver Assistant Batch Operator Painter Purchasing Liaison Clerk Marketing Clerk |
46,709 |
51,380 |
56,518 |
| Grade 3
Secretary Sales Representative Soap Boiler Resident Hairdresser Clerk Engineering Computer Operator Mixing/Roll Mill/Plodder Operator Bleaching Operator Evaporator Operator Drier Operator Batch Processor - TMH Cashier - Mombasa Depot Cashier - Nakuru Depot Assistant Costing Clerk Senior Driver Electrician 11 (GTT 11) Fitter 11 (GTT 11) Mechanic 11 (GTT 11) Storekeeper - Kisumu Depot Storekeeper - Mombasa Depot Storekeeper - Nakuru Administration Clerk Clerk - Export Sales Assistant Laboratory Technician Technical Machine Operator I.T. Support Technician Depot Liaison Clerk Sales Co-ordinator WCM Facilitator Clerk – Treasury Services |
62,267 |
68,494 |
75,343 |
| Grade 2
Senior Sales Representative Debtor Control Clerk Purchase Ledger Clerk Costing Clerk Cash Book Payments Clerk Cashier - Kisumu Depot Cashier - Nairobi Laboratory Technician Senior Computer Operator Electrician 1 (GTT 1) Mechanic 1 (GTT 1) Fitter 1 (GTT 1) Storekeeper - Raw Materials Storekeeper - Finished Goods - TMH) Storekeeper - Soap Packaging Store Storekeeper - Finished Goods – Soap Storekeeper - Tank Farm Section Head - Soap Processing Section Head - Soap Finishing Section Head - TMH Processing Section Head - TMH Finishing Brands Co-ordinator Materials Co-ordinator Demand Co-ordinator Health & Safety Co-ordinator |
73,933 |
81,326 |
89,459 |
| Grade 1
Depot Supervisor - Kisumu Depot Supervisor - Mombasa Depot Supervisor – Nakuru Field Sales Supervisor Sales Office Supervisor Stores Supervisor Soap Processing Supervisor Soap Finishing Supervisor Import Purchases Supervisor Local Purchases Supervisor Chief Cashier Financial Accounts Supervisor Costing Accounts Supervisor TMH Processing Supervisor TMH Finishing Supervisor Production Control Supervisor Mechanical Engineering Supervisor Electrical Engineering Supervisor Administration Supervisor Personnel Supervisor Senior Laboratory Technician I.T. Support Assistant Logistics Supervisor |
|
105,049 |
115,554 |
127,109 |
(b) WAGES
The wages indicated against the grades in clause 1(a) above are based on the following:-
...............................................................................................................Grades 1 to 6
1st year with effect from 1st June, 2013 to 31st May, 2014....................10%
2nd year with effect from 1st June, 2014 to 31st May, 2015...................10%
3rd year with effect from 1st June, 2015 to 31st May, 2016....................10%
2. HOUSING ALLOWANCE
Housing Allowance will be 15% of an individual employee's basic rate of pay.
3. SHIFT DIFFERENTIAL
In addition to basic wages / salaries, employees working a 24 hour or less shift cycle as a team will be paid a shift differential of 15% of their basic wages / salaries per month to compensate them for the inconvenience involved in performing shift roster work. This shift differential will not be included in the basic wage and accordingly will not be taken into account when calculating Provident Fund Contributions and overtime pay.
As it is intended to compensate the individual for the inconvenience involved in shift roster work, the shift differential will not be paid when the employee is absent from work through being sick, on leave, or for any other reason for a particular day on which shift work was not actually performed, unless the change to his work has been occasioned by Management, in which case the shift differential will be paid for the whole of that week in which the employee has worked at least one shift. In order to ensure continuity of operation, all shift employees shall remain on duty until relieved by the succeeding shift or until permitted to leave by the Manager or Supervisor in charge.
It was agreed that from 1st June 2007, the Shift Differential will be based on the C.B.A. basic wage for the job grade under which each employee’s position is classified.
4. ACTING ALLOWANCE
An employee who is temporarily appointed or promoted to any acting capacity for a minimum of 5 consecutive working 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. Such acting appointment shall be communicated to the employee in writing, and where an employee is acting on a vacant position he/she will be confirmed on successful completion of three months.
5. WORKING HOURS
An employee shall normally be required to work, whether on shift or otherwise, a total of 42½ hours per week spread over 5 days and exclusive of meals 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 rate provided for under the overtime clause of this Agreement.
6. OVERTIME RATES
Overtime rates shall be as follows:-
(a) For hours worked on week-days in excess of hours set out in Clause 5
-time and a half
(b) For hours worked on Saturdays in excess of hours set out in Clause 5
- time and a half
(c) For hours worked on Sundays and Gazetted Public Holidays - Double time
(d) All overtime rates will be based on basic wages excluding housing allowance.
It was agreed that from 1st June 2007, the Overtime rates will be based on the C.B.A. basic wage for the job grade under which each employee’s position is classified.
When calculating overtime, the following formula shall apply:
42.5 (working hours per week) x 52 weeks divided by 12 months = 184.17 hours per month
7. (GAZETTED) PUBLIC HOLIDAYS
An employee shall normally be granted leave with full pay on Gazetted Public Holidays, provided that an employee who is required to work on such holidays will be paid double as provided by Clause 6 above.
8. ANNUAL LEAVE
For every 12 months continuous service an employee will be entitled to annual leave as follows:-
Employees with up to 5 years service-..........................................24 working days
Employees with 6 to 14 years service-..........................................28 working days
Employees with 15 years service and over -................................30 working days
Annual leave will be taken at the convenience of the company and will not be accumulated. In the event of Sundays and Public Holidays falling within the leave period, such days will be added to leave entitlement.
9.COMPASSIONATE LEAVE
(a) An employee who wishes to take leave on compassionate grounds will, by prior arrangements with the company, be granted such leave up to his earned entitlement under Clause 8 of this Agreement and the leave taken will be subsequently set off against his annual leave.
(b) An employee may, in addition to the leave provided for in Paragraph (a) of this Clause, be granted five days compassionate leave without pay in any one year.
10.SICK LEAVE
An employee who is unable to carry out his duties by reasons of sickness or injury falling outside the provisions of the Workmen's Compensation Act will be entitled in any period of twelve months to full pay for the first 60 days absence from work, and half pay for the next 60 days subject to production of a medical certificate testifying to the need for such absence. Sick leave with full pay may be extended beyond the period stipulated above at the discretion of the company.
11. INJURY BY ACCIDENT
In the case of accident covered by the Workmen's Compensation Act, full pay will be given to the employee and where the act requires the payment of half-pay during a period of certified temporary disability, an employee will be paid full wages by the Company.
12. (A) LOCAL SAFARI ALLOWANCE
An employee who is absent from his normal place of work on company's business shall be granted a Safari Allowance to cover the lodgings and meals expenses which are incurred.
An employee may claim upto the maximum amount specified below subject to production of receipts supporting the expenditure.
| W.e.f 1.6.2013 | W.e.f 1.6.2014 | W.e.f. 1.6.2015 | |
| Breakfast | 380 | 400 | 420 |
| Lunch | 550 | 580 | 610 |
| Supper | 640 | 670 | 700 |
| Accommodation | 2000 | 2050 | 2100 |
| 3570 | 3700 | 3830 |
(B) SAFARI ALLOWANCE OUTSIDE KENYA
If an employee travels outside Kenya on company business, the company will meet the meals and accommodation expenses applicable to the specific country.
13.CERTIFICATE OF SERVICE
1. Every employee will 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 will 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 no employer is bound to give to any employee any testimonial, 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 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.
14. TERMINATION OF EMPLOYMENT
Except where an employee is summarily dismissed for gross misconduct or other lawful cause as prescribed in the Employment Act, and provided the probationary period has been completed either party will be required to give one month's notice of termination of service or pay in lieu thereof. Provided that where an employee has served the company for a period of between 5 and 10 years such notice shall be of two months, while those with over 10 years service will have three months' notice or pay in lieu.
15. 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 will be entered on the employee's employment record card and shall remain valid for a period of twelve months from the date of issue. If, within the twelve months period the employee commits a similar or any other offence which does not warrant dismissal, he will be further warned in writing to be entered on his employment record card, and the two warnings shall remain valid for a period of twelve months from the date of the second warning. If within this twelve 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 remain valid for a period of one year from the date of issue. A copy of the final warning shall be sent to the General Secretary of the Union.
An employee subject to disciplinary action will have the right to appeal against the warning within 7 consecutive days from the date of issue of the letter.
16. DISCIPLINARY PROCESS
Prior to taking any disciplinary action, the following process will be complied with:-
- The Line Manager will report the misconduct issue in writing to the Human Resource & Administration Manager.
-Within a maximum of five working days the Human Resource & Administration Manager will write a query memo to the employee concerned to show cause why appropriate action should not be taken against them for the misconduct.
- The concerned employee will be expected to respond to the query memo within a maximum period of five working days.
- The Management Team handling the issue will review the response and prepare a report on the facts, findings and recommended action with a period of fifteen working days unless it is a criminal offence.
- The Shop stewards will be informed of the case and the findings and a discussion will be held with them so as to give their views. This will be done within a maximum period of five days following the report on findings and recommended action.
- A meeting will be held with the affected person who will be accompanied by the Shop stewards where the facts of the case will be discussed. In case any new views/facts are presented/revealed during this meeting the same will be taken into consideration before a final recommendation on action to be taken is made.
-After the above meeting a final recommendation on action to be taken will be forwarded to Management for review and approval.
- The approved action will be communicated to the affected employee verbally and also in writing in the presence of the Shop stewards.
17. GRIEVANCE PROCEDURE
An employee wishing to raise any issue in which he/she is directly concerned shall first raise the matter with his immediate supervisor. If the issue is not satisfactorily resolved at this stage, he/she will request for an audience with his/her Manager. Such a request will be made within 48 hours from the time the matter was first raised.
At the request of either party there may also be present the supervisor concerned and if the employee involved so desires he/she may have a co-employee or a Union representative as a witness.
Should the matter still be unresolved, the employee will raise the matter with his Manager in the presence of the Head Of Department, Human Resources Manager and Union Representatives.
If the issue is still unresolved, it will be referred to the Managing Director.
18. PROBATION
All employees will be considered to be on probation for a period not exceeding three months from the date of engagement and during this time services can be terminated by either party by giving 7 days notice or pay in lieu thereof. If performance during Probation is unsatisfactory, the Probation period may be extended for a maximum period of three months.
19. MATERNITY LEAVE
A female employee will be entitled to Three months maternity leave with full pay and will not forfeit her annual leave. In cases where the employee falls sick after the three months period, such sickness will be treated as provided in the sick leave Clause subject to production of a medical certificate.
An employee proceeding on maternity leave will be entitled to leave travelling allowance; provided that such allowance has not been paid within the previous 12 months.
20. PATERNITY LEAVE
A male employee will be entitled to two weeks paternity leave with full pay.
21. DEFINITION OF EMPLOYEE
It is understood and agreed that the word "Employee" in this Agreement shall cover all employees regardless of sex unless specifically stated otherwise.
22. RETIREMENT
(a) Retirement age
(i) An employee will be retired by the company on attainment of the retirement age of fifty five (55) years.
(ii) On attainment of between 50-54 years of age an employee may request the Company in writing for early retirement. Once the request is received, the Company reserves the right in it’s discretion to accept or reject such request for early retirement.
(iii) An employee may be retired by the company on medical grounds prior to attaining the retirement age of 55 years if declared medically unfit to perform his/her duties by an approved medical authority.
(iv) The company runs a contributory provident fund scheme and it is a condition of employment to join this scheme. On retirement, an employee shall be paid the company’s contribution plus interest, in addition to his/her own contribution in accordance with the rules of the scheme.
(b) Baggage allowance
An employee of the Company shall be entitled to be paid a baggage allowance of Ksh. 50,000/=, or be provided with transport to carry household items up to seven and a half (7½) tonnes, when proceeding on normal retirement, retirement on medical grounds, upon death, when proceeding early retirement or when declared redundant.
The final decision on whether to pay the baggage allowance or provide transport will be at the discretion of the Company, after having discussed the matter with the affected employee.
23. LEAVE TRAVELLING ALLOWANCE
An employee proceeding on authorized annual leave will be paid Leave Travel Allowance as follows:-
First year of Agreement-............................(Ksh. 11,000) Kshs. Eleven Thousand.
Second year of Agreement-........................(Ksh. 12,000) Kshs. Twelve Thousand
Third Year of Agreement-............................(Ksh. 13,000)Kshs. Thirteen Thousand.
Leave Travelling Allowance will be paid when an employee is proceeding on annual leave of at least two weeks.
24. UNIFORMS, OVERALLS AND PROTECTIVE CLOTHING
An employee who is required to wear uniforms or overalls by nature of his work or in accordance with the provisions of the Factories Act shall be issued with two pairs of uniforms free of charge by the Company. Such uniforms or overalls will be replaced with new pairs every year. The company will be responsible for laundering such uniforms and overalls. A risk assessment procedure will be used to determine employees to be issued with the various categories of protective clothing and appliances.
All uniforms, overalls and protective clothing will remain the property of the company and where issued it will be compulsory for the employee to wear it.
25. MEDICAL ATTENTION
The company undertakes to pay the cost of such ( medical treatment and medical expenses in accordance with vhe provisions prescribed by the Laws of Kenya relative to Employment of Persons Medicah Treatment Rules. The payment of medical expenses will be made for all employees of the company, provided that such illnesses are those covered by the Act. A list of illnesses which are not covered are listed in Appendix A of this Agreement.
Treatment in Government or other medical institutions will be on the recommendation of the company appointed doctors.
26. REDUNDANCY
(a) "Redundancy" means the 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 where the services of an employee are superfluous, and the practices commonly known as abolition of office, job or occupation and loss of employment due to the Kenyanization 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 endeavor 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) Consultation
In the event of redundancy, the company undertakes to hold prior discussions with the Union concerning the reasons for and the extent of 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, but when these factors are equal the discharge will be on the basis of seniority. Membership or non-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 arise according to their qualifications.
(f) Entitlements of Redundant Employees
In the event of an employee being declared redundant he will be entitled to:-
(i) the normal notice or pay in lieu of notice as defined in the Agreement;
(ii) payment of wages, overtime and any other remuneration which may be due to him calculated up to the date on which he ceases work;
(iii) pro-rata leave and leave allowance entitlement in accordance with the Agreement.
(iv) severance pay at the rate of twenty days' pay for each completed year of service for employees with less than 5 years service ; twenty five days pay for each completed year of service for employees with 5 to 10 years of service and thirty five days' pay for each completed year of service for employees with over 10 years of service with the company.
Provided that Provident Fund and other retirement benefits are in no way affected by these arrangements.
27. NIGHT TRANSPORT
Employees who leave duty after 7 p.m. will be provided with transport from the factory to the nearest area to their residential estate within the city.
28. INTER-STATION TRANSFER
When an employee is given permanent transfer from one station to another, he will be provided with transport to the new station for himself, his wife and up to four children, plus his personal effects. The company will also pay such an employee a disturbance allowance of Shs 22,000/ in the first year of the Agreement, Shs 23,000/ in the second year of the Agreement and Shs. 24,000/ for the third year.
In addition costs up to the maximum of the safari allowance will be reimbursed subject to receipts for up to a maximum of 30 days.
29. DEATH OF AN EMPLOYEE IN SERVICE
The company acknowledges the hardship caused to the next of kin in the case of such an event and pledges to examine every such case with a view to giving reasonable assistance. As the circumstances of individual cases may vary widely, such assistance is to be entirely at the discretion of the company. The company will pay a minimum of Ksh 55,000/ towards the death of an employee.
In addition, the company will provide similar assistance to cater for funeral expenses to any employee who loses his/her spouse. The company will only recognize the name of the spouse appearing on the employees’ Personal Data Form and on the National Hospital Insurance Fund Card.
In the event of the next of kin expressing dissatisfaction with the above assistance, the company agrees to meet with the next of kin with a view to reaching an amicable settlement using its discretion. The next of kin will be free to consult and seek assistance from the Union Representative in the factory, who may even accompany him/her to meet the management.
30. EFFECTIVE DATE AND DURATION
This Agreement will be effective from 1st June, 2013 and will remain in force for a period of 36 months from that date, and thereafter until it is amended by mutual agreement between the company and the Union, provided that the party desiring to amend the Agreement will be required to give three (3) month's notice of its intention and shall set out in detail the amendments or alterations which such party desires.
SIGNED :For and on behalf of the Company
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DIMITRIS KOSTIANIS
MANAGING DIRECTOR
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RACHEL MATENDECHERE
HEAD OF HUMAN RESOURCES
Signed : For and on behalf of the Union
..............................................
W.D. OGUTU, O.G.W.
NATIONAL GENERAL SECRETARY
Witnessed by:
...............................................
HEZRON OPIYO
DEPUTY NATIONAL GENERAL SECRETARY
……………………………….
JACOB ODUNDO
BRANCH SECRETARY RUARAKA
.........................................
SAMUEL ODIYO
SHOPSTEWARD
...................................................
CHRIS ORWA
SHOPSTEWARD
..............................................
WYCLIFF ODUOR
SHOPSTEWARD
In the presence of :
..............................................
L.W. KARIUKI
PRINCIPAL EXECUTIVE OFFICER – F.K.E.
Signed at Nairobi this ............................. Day of ......................... 2013
APPENDIX 1: MEDICAL SCHEME EXCLUSIONS
1. General health check-ups
2. Injuries from war and kindred risks
3. Conditions of chronic nature, insanity or congenital defects.
4. Pregnancy and maternity
5. Treatment of sexually transmitted disease.
6. Dental Treatment
7. Optical Treatment
8. Intentional self-injury, drunkenness, dissipation, psychoneurosis
9. Cosmetic surgery, orthodontic work, denture repairs or replacement
10. Treatment of injuries arising from any kind of sports
11. Hearing aids, eye glasses, eye testing
APPENDIX 2: SEXUAL HARASSMENT POLICY
PZ Cussons will not, under any circumstances, condone or tolerate conduct which may constitute sexual harassment on the part of its management, supervisors or non-management personnel. It is our policy that all employees have the right to work in an environment which is conducive and free of any harassment or intimidation.
Any employee found to have engaged in such conduct will be subject to immediate discipline up to and including discharge.
Sexual harassment is defined as:
- Making submission to unwelcome sexual advances or requests for sexual favors a term or condition of employment.
- Basing an employment decision on submission or rejection by an employee of unwelcome sexual advances, requests for sexual favors or verbal or physical contact of a sexual nature:
- Creating an intimidating, hostile or offensive working environment or atmosphere either by;
Verbal actions, including calling employees by terms of endearment; using vulgar, kidding or demeaning language;
Physical conduct which interferes with an employee’s work performance;
Use of or display of sexually offensive websites or graphics
NB: This is not an exhaustive list but examples.
At PZ Cussons, we do encourage healthy fraternization among its employees; however, employees, especially management and supervisory employees, must be sensitive to acts of conduct which may be considered offensive by fellow employees and must refrain from engaging in such conduct.
It is, also expressly prohibited for an employee to retaliate against employees who bring sexual harassment charges or assist in investigating charges. Retaliation is a violation of this policy and may result in discipline, up to and including termination.
No employee will be discriminated against, or discharged, because of bringing or assisting in the investigation of a complaint of sexual harassment.
