MEMORANDUM OF AGREEMENT BETWEEN RITZ ENTERPRISES LIMITED AND THE TAILORS AND TEXTILE WORKERS UNION

PART 1: TERMS AND CONDITIONS OF SERVICE

1. HOUSE AND HOUSING ALLOWANCE

Every employee who is provided with free housing accommodation by his Employer shall be entitled in addition to the basic minimum wage prescribed to a Housing Allowance at a rate of Kshs.3,200 per month.

2. HOURS OF WORK

3. OVERTIME RATES

Overtime shall be payable at the following rates: -

(c) For the purpose of calculating payments for overtime in accordance with sub¬paragraph (1) of this paragraph the normal hourly rate shall be deemed to be not less than one hundred ninety fifth (1/195) of the employee's monthly wages, exclusive of housing allowances, and in the case of employee remuneration otherwise than at monthly rate it shall be calculated in proportion save that where the employee is remunerated at an hourly rate of wages, such hourly rate of wages shall form the basis of calculation.

4. HOLIDAYS WITH FULL PAY

The normal working hours occurring on Statutory Public Holidays shall, unless paid for as overtime be granted as time off with full pay. If it falls within the leave period, the employee will be granted additional paid day/days on top of the annual paid leave days.

5. ANNUAL PAID LEAVE

6. SICK LEAVE/WORK INJURY

(b) An employee shall be eligible for sick leave under this paragraph in respect of any incapacity due to gross neglect on his/her part In case of injury received in the course of duty, the rules of the Workmen's Compensation Act will apply.

7. TERMINATION OF EMPLOYMENT

It shall be a condition in every contract that such contract shall be terminable by not less than one month's notice to be given by either party in writing or otherwise by payment by either party, in lieu of notice of not less than one month's wages. Employees with more than 5 years service will qualify for 21/2 months' notice or wages in lieu. Employees with over 10 years will qualify for 3 months' notice or wages in lieu.

Provided that:-

(ii) Nothing in this paragraph shall prejudice the right of either party to terminate a contract summarily for lawful cause.

(iii) On termination of employment an employee who has completed 5 years will be entitled to payment of gratuity at 18 days for each complete year of service.

8. PIECE WORK OR TASK WORK

(a) An employee engaged on piece work rate or task work rate shall be entitled to wages and conditions of employment not less favourable than those specified in the Agreement. However, leave pay will be calculated on an average of the previous 12 consecutive months work pay.

(b) An employee on piece work, who remains absent without prior permission or any other or any other lawful cause, such employee will compensate the Company for the lost hours by way of working extra hours or any other arrangement with the employer. The garment stitched will be paid for on the normal piece rate.

In addition to compensating the lost hours, normal disciplinary action will be taken against such employee.

9. PREVIOUS EXPERIENCE TO COUNT

(i) Where any person to whom this agreement applies changes from employment with one employer to similar employment with another employer he shall be entitled to the appropriate rate or wages having regard to each completed year of service in the same type of employment with his previous employer or employers provided that where, in the case of a learner tailor in the Bespoke Tailoring Trade, such change has involved a break exceeding six months duration inn such learner tailors employment, the first year of the previous period as a learner tailor shall not count for incremental purposes.

(ii) Appropriate rate of pay, Remuneration otherwise than at monthly rates of

wages shall not be less than proportionate to the basic minimum wage rates prescribed in this schedule.

10. CASUAL EMPLOYEE

All casual or part time workers shall be paid at the following rates:-

(a) Daily rates of wages shall be calculated at not less than one twenty second of both months minimum rates and housing allowance herein prescribed.

(b) Hourly rate shall be taken at not less than one hundred and

seventy sixth of both basic minimum wage rates and housing allowance herein prescribed.

Provided that the employer shall employ, on permanent terms any casual worker employed continuously for a period of more than three months.

11. MATERNITY/PATERNITY LEAVE

12. COMPASSIONATE LEAVE

13. CHECK OFF SYSTEM

The Labour Relations Act, 2007 shall apply for operation of Check-Off-System

14. PROTECTIVE CLOTHING AND UNIFORM

15. WARNING SYSTEM

An employee whose work or conduct is unsatisfactory and or who commits an offence with in the opinion of the employer does not warrant instant dismissal shall be warned in writing.

The following procedure will be followed:

(a) The 1st, 2nd and 3rd warning will be recorded on his/her record card and shopsteward informed.

(b) If any employee with three warnings recorded on his/her card commits a forth offence he/she will be liable to summary dismissal.

(c)If an employee completes 365 consecutive days from the date of the last warning without fault, any warnings recorded on his/her card will be cancelled. All wa rnings shall be valid for 12 consecutive months from the date of issue of last warning.

(d) The second and third warnings will be copied to the Union's Branch secretary. Appeals against warning letters will be done within 3 working days in writing.

16. REDUNDANCY

In the event of redundancy, the following principles will apply:-

(a) The Union concerned shall be informed atleast one month prior to redundancy of the reasons for and the extent of the intended redundancy.

(b) The principles shall be adopted of "Last In First Out".

In the particular category of employees affected subject to all other actors such as skilled merit ability and reliability being equal.

(c) In case of availability of employment at a later date, the Company will consider the former redundant employees for re-employment provided they can be contacted without delay.

(d) The redundant employees shall be entitled to appropriate notice or wages in lieu of notice.

(e) Any accrued leave that the redundant employee may not have taken prior to the notice shall be paid for in cash.

(f) An employee declared redundant shall receive severance pay at the rate of 26 days pay for every completed year of service

17. LEAVE TRAVELLING ALLOWANCE

(b) If an employee requests the employer to allow him to remain working instead of going on leave, such employee shall be entitled to his leave pay, and not leave traveling allowance.

Such requests shall be made in writing

18. NIGHT TRANSPORT FOR EMPLOYEES

Employees who remain at work up to between 7.00 p.m and 6.00 a.m. will be provided with free transport, to an agreed point within the city. Incase transport cannot be provided, Kshs 200/= will be paid to cater for transport.

19. CERTIFICATE OF SERVICE

(i) 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 date when employment ceased;

(e) Such other particulars as may be prescribed.

(ii) Subject to sub section (1) of this section, no employer is bound to give any employee any testimonial reference or certificate relating to the character or performance of an employee.

(iii) Any employer who willfully or by neglect fails to give an employer a Certificate of Service in accordance with Sub-section (i) of this section, or who in a Certificate of Service includes a statement which he knows to be false, shall be guilty of an offense.

20. SUMMARY DISMISSAL

Any of the following matters may amount to gross misconduct so as to justify he 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 matters not mentioned in this section constitute justifiable lawful grounds for such 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 unwilling or incapable properly to perform his work;

(c) If an employee, willfully neglects top form any work which it was his duty to have performed or if he carelessly and improperly performs any work which from its nature was his duty, under his contract to have performed carefully and properly

(d) If an employee uses abuse or insulting language, or behaves in a manner

insulting to his employer or to any person placed in authority over him by his employer.

(e) 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 14 days either released on bail or on bond or otherwise lawfully set at liberty.

(f) If an employee commits or on reasonable and sufficient grounds is suspected of having committed any criminal offence against or to the substantial detriment of his employer or his employer's property.

21. MEDICAL TREATMENT

22. LEAVE WITH FULL PAY FOR UNION MEMBERS ON UNION OFFICIAL BUSINESS

Union officials or members shall be granted up to 14 working days leave with full pay to attend Trade Union's seminars or conference meetings upon a written request by the Union and subject to the production of certificate of participation by the employees concerned.

23. DEATH OF AN EMPLOYEE

24. RETIREMENT BENEFITS/GRATUITY

(a) The retirement age will be 60, the employer and the employee may by agreement extend the retirement age.

(b) An employee may retire or may be retired by the employer on grounds of ill health in which case a doctor's certificate will be required to certify this. The employer will be entitled to send such an employee to its' own doctor for further confirmation.

(c) An employee who dies while in employment will be entitled to retirement benefits. The payments will be made to the next of kin whose identity will have to be confirmed by the Provincial Administration.

On retirement an employee will be entitled to:-

i. Required Notice;

ii. Retirement benefits at the rate of twenty three (23) days for each completed year of service;

iii. Any other remuneration that he/she may be entitled to

Those who want to retire voluntarily after serving for 5 years to benefit as as per the Clause.

The above will be in addition to the NSSF benefits. The workers' service for the purpose of this benefit will be taken into consideration from 18th January, 1989.

25. GENERAL WAGE INCREASE

(b) All employees who shall be in employment of the Company as at 1st July 2015 shall get a salary increment of 6% from 1st July 2015.

PART III

26. DURATION AND EFFECTIVE DATE

The whole of this Agreement shall be effective from 1st July 2014, and it shall remain in force for a period on 2 years.

Thereafter it shall remain in force until amended by mutual agreement between the two parties. Any party desiring to amend any Clause in the agreement shall give one months’ notice in writing to such intention giving details of the amendments desired.

BASIC MINIMUM WAGE INCREAMENT:

JOB CLASSIFICATION	AS AT 30/6/14	W.E.F 1/7/14 7%	W.E. F 1/7/15 6%	W.E.F 1/7/14	W.E.F 1/7/15
Unskilled Labour- Mass Prodc	9781	10,466/=	11,094/-	526/-	550/-
Machine Ass. First Year Thereafter	11,086/- 11,086/-	11,862/- 11,862-	12,574/- 12,574/-	579/- 579/-	607/- 607/-
Mass Prodn. Machinist First Year Second Year Thereafter	11,086/- 11,086/- 11,086/-	11,862/- 11,862/- 11,862/-	12,574/- 12,574/- 12,574/-	579/- 579/- 579/-	607/- 607/- 607/-
Cutter to pattern	11,086/-	11,862-	12,574/-	579-	607/-
Machinist Assis. Made to measure First Year Second year thereafter	11,086/- 11,086/- 11,086/-	11,862/- 11,862/- 11,862/-	12,574/- 12,574/- 12,574/-	579/- 579/- 579/-	607/- 607/- 607/-
Machinist made to measure First year Thereafter	12,655/- 12,655/-	13,541/- 13,541/-	14,353/- 14,353/-	644- 644/-	675/- 675/-
Cutter made to measure	12,655/-	13,541/-	14,353/-	644/-	675/-
Cutter to pattern Draughtsman designer	15,065/-	16,120/-	17,087/-	743/-	780/-
Master hand	17,324/-	18,537/-	19,649/	836/-	879/-

SIGNED FOR AND ON BEHALF OF THE COMPANY

MR. PAUL ASHIOYA

FOR: RITZ ENTERPRISES LIMITED

SIGNED FOR AND ON BEHALF OF THE UNION

………………………………

REV. JOEL K. CHEBII, OGW

GENERAL SECRETARY, TTWU

……………………………………….……………………………………

EZRA OJUKAMR. JOHN NGARI

DEPUTY GENERAL SECRETARYBRANCH SECRETARY, TTWU

………………………

SIMON MUTUA

SHOP STEWARD

IN THE PRESENCE OF:

………………………………………….

MOSES OMBOKH

REGIONAL MANAGER

FEDERATION OF KENYA EMPLOYERS

SIGNED AT NAIROBI THIS ………………..DAY OF AUGUST 2014

PART III:

DEFINITIONS

1. (i) "Garment Making and Dress Making" means the making, altering, repairing of any type of garment or wearing apparels but excluding the Bespoke Tailoring Trade.

"Unskilled Labourer" means an employee wholly or mainly engaged in handling of materials or finished products, cleaning operations, folding and bundling of part or fully finished products and/or acting as driver's mates (turn boy).

(ii) In Relations of Garment Making and Dressmaking:

"Machinist Assistant" means an employee wholly or mainly engaged in any of the processes of button-hole sewing (by hand or machine), simple hand stitching, pressing of goods or knife cutting.

"Learner Machinist" means any employee wholly or mainly engaged in sewing by any type of machine any one or more types of garments or wearing apparel or altering repairing any second hand clothing.

"Mass Production Machinist" means any employee wholly or mainly engaged in the mass production by hand/or machine sewing of any type of garment or wearing apparel or altering or repairing any second hand clothing and who has completed one year as learner machinist.

"Machinist Assistant Made to Measure" means an employee wholly or mainly engaged in relating to made-to-measure garments (excluding uniforms) in any of the processes of button-hole sewing (by hand or machine), simple hand stitching, pressing or knife cutting.

"Machinist Made to Measure" means an employee wholly or mainly engaged in the making up, by hand and/or machine sewing, of complete garments or wearing apparel to measure from materials already out to varying specification and who has completed one year as a learner machinist

2. (i) Bespoke Tailorin2 Trade" means that part of the Tailoring Industry in which the employees are wholly or mainly engaged in the Bespoke Tailoring of any of the following clothes.

Lounge suites, costs, overcoats, jackets, waistcoats, Trousers, beeches, gowns, Costumes or mantles of woolen, cord or other materials, cord or other Materials, cord or other materials, and is hereinafter referred as to and The "TRADE".

(ii)"Trade Test Certificate" means a certificate of Artisan Grade I, II, or III Standard, as the case may be issued by the Ministry.

(iii)"Tailor's Assistant" means an employee engaged in the Trade for all or any of the following ancillary work:- Hand sewing of button, button, button-holes, lining, straps, padding, trousers flys, waistbands or hems and joins pressing, darning and mending.

"Learner Tailor" means an employee who is being taught to tailor complete items of clothing in the Trade whilst engaged in production work, whether under written or verbal contracts.

"Tailor" means an employee who has been employed as a learner tailor for not less than four years.

"Cutter Class II" means an employee wholly or mainly engaged in assisting a cutter, class I and carrying out himself the more simple cutting operations

including cutting from pattern prior to and during the course of conversion into finished made-up articles in accordance with written or verbal instructions.

3. (i) "Soft Furnishing Making" means the making up, altering or repairing of any of the following:- curtains, pelmets, blinds, loose cushions, pillow, mattress, bolsters bedspreads, didewons, mosquito nets, or bed or table linen.

(ii) In relation to soft furnishing making:

"Learner" means an employee wholly or mainly engaged in any of the processes of straight sewing by hand/or machine hems, and joins buttonholes clips, fasteners and tapes, pressing or knife cutting.

"Skilled Worker" means an employee who has completed one year as a learner and who is wholly or mainly engaged in and competent for cutting or material for making up complete articles (other than looses covers) and sewing pleats, tucks, folds and frills, piping and other trimmings.

"Loose Cover Maker" means an employee who has completed at least two years as a skilled worker and is wholly or mainly engaged in and competent for cutting and making up loose covers, including the matching or joins in patterned materials.

4. "Canvas Goods Making" includes the making, altering and repairing of any type of tent, sail tarpaulin, groundsheets or goods made of canvas or part of such equipment.

(i) In Relation to Canvas Goods Making:

"Leading Hand" means an employee who has been engaged in all the stages of production and achieved a degree of competency to enable him to supervise and control with limited responsibility the work of the various classes of employees under the direction and control of the factory superintendent and who is so employed.

(ii) In relation to canvas Goods Making

"Semi-Skilled Labourer" means an employee wholly or mainly engaged in assisting other employees in the handling of canvas or other materials fitting of eyelets, splicing or ropes bobbin winding, simple and hand stitching, folding packing, seam dressing and simple cutting operations.

"Skilled Labour" means an employee wholly or mainly engaged in supervision of semi-skilled labourer sewing machine maintenance, awning erection under supervision. 5.

"Machinist Grade III" means an employee wholly engaged in hemming of tarpaulins, seaming and hamming groundsheets, water bags, simple shaped canvas articles and general repairing and patching work.

"Machinist Grade II" means an employee wholly or mainly engaged in the seaming of tarpaulins, sewing of "Standard" work of the repetitive nature (e.g. vehicle hoods, standard items of safari equipment and small lightweight tents, sewing of sections only of tents, etc) prior to assembly by a Machinist Grade I.

"Machinist Grade I" means an employee wholly or mainly engaged in the assembly of all types of tents, marques, awnings, made-to-measure protective covers of all kinds and other canvas work of a complex nature including sails.

"Cutter Class II" means an employee wholly or mainly engaged in assisting a cutter class I and carrying out himself the more simple cutting operations, including cutting from pattern prior to and during the course of conversion of material into finished made up articles.

"Cutter Class I" means an employee wholly or mainly engaged in cutting materials

prior to during the course of conversi8on into finished, made-up articles in accordance with written or verbal instructions. In relation to the Shirt Manufacturing Industry.

"Machinist Assistant" means an employee wholly or mainly engaged in any of the processes of button and button-hole sewing by machine straight ironing.

"Learner Machinist" means an employee wholly or mainly engaged in sewing any type of shirts or portion of shirt or altering repairing any second hand shirt.

"Learner Machinist" means an employee wholly or mainly engaged in sewing any type of shirt or portion of shirt or altering repairing any second hand shirt.

"Machinist Shirt Production" means an employee wholly or engaged in the mass production by machine sewing of any type of shirt or portion of shirt or altering or repairing any second hand shirt and who has completed one year as a learner machinist.

"Machinist Shirt Production" means an employee wholly or mainly engaged in sewing any type of shirt or portion of shirt or altering repairing any second hand shirt.

"Machinist Shirt Production" means an employee wholly or engaged in the mass production by machine sewing of any type of shirt or portion of shirt or altering or repairing any second hand shirt and who has completed one year as a learner machinist.

"Cutter to Pattern" means an employee wholly or mainly engaged in cutting to pattern laid-up fabric by scissors or by cutting machine.

"Draughtsman and Designer' means an employee wholly or mainly engaged in the in the work of designing and the cutting of patterns.

"Master Hand" means an employee who is capable of performing any of the duties in a gar garment mass production industry and carries out the supervision of work with responsibility to control staff

"General Labourer" means an employee wholly or mainly engaged in handling of materials of finished products, cleaning operations, folding, bundling of part of fully finished products, laying of materials, trimming and turning collar and packing.

6. "Salesman" means an employee employed on a whole time basis by a manufacturer in a garment and Dress Making Industry and whose duty is to sell his employer's products as a wholesale basis to retail.

7 "Shop Assistant" means any person wholly or principally employed for the purpose of transacting business with customers in that part of the premises if a garment or dressmaking establishment to which customers have access but who is not in charge of such department.

8. "Salesman Driver" means an employee in charge of a motor vehicle employed on a whole time basis by any of the manufacturers covered by this order for the purpose of selling his employer's products on wholesale basis to retail traders.

9. "Copy Typist" means an employee capable of a minimum typing speed of 25 words per minutes, wholly or mainly engaged in typing letters, memoranda and similar matters, on papers or other material and who may be required to type particulars on forms, bills or invoices

10. "General Clerk" means an employee wholly or mainly engaged in performing miscellaneous clerical tasks including mail sorting, preparation of outgoing correspondence, typing, filing, postages, accounts and recording preparation of invoices, keeping stock records, sales or purchase day books or petty cash book and writing out of receipt and the issue of stationary and other similar transaction.