MEMORANDUM OF RECOGNITION AGREEMENT AND NEGOTIATION PROCEDURE, Between AFRICA A PPAREIS EPZ (Hereinafter referred to as the Management) And TAILORS AND TEXTILES WORKERS UNION (Hereinafter referred to as the Union)

1. PREAMBLE

The two parties to this Agreement meeting together in free heart and voluntary association are fully determined to regulate the relations between them to the interest of workers and Management. They agree voluntarily to work together to promote and establish mutual understanding and co-operation as follows:-

(a)The negotiations and discussions between the Union and the Company shall be conducted on a representative and authoritative basis.

(b)That, the recognized procedure of negotiations and discussion between both parties shall be so far as practicable, fully known and understood by the workers and by all members of the COMPANY (MANAGEMENT)

(c)That an essential factor in successful negotiations and discussions is the clear statement of report of the issue involved and of the resulting decision after mutual agreement. wages and conditions and terms of employment be- achieved and they agree jointly to maintain good will in the industry and to co-operate towards this end.

2. RECOGNITIONS

(a) THE COMPANY affords full recognition to the Union as properly constituted and representative body and sole Labour organization representing the interests of workers who are in THE COMPANY employment concerning rate of pay and overtime, hours of work, method of wages payment, paid leave, duration of employment, collection of Union dues, retirement benefits, medical benefits, principles of promotion, principles of redundancy and other generally accepted terms and conditions of service, this shall not include those defined from time to time by F.K.E and the COTU (K)

(b) The Union undertakes, after election have been carried out in accordance with its constitutions, to present without delay the names of all local officials and National Officials to THE COMPANY (MANAGEMENT) and to advise them of any amendments as they occur THE COMPANY on its part undertakes not to enter discussions and negotiations in the subjects specified in clause 2 (a) of this Agreement with any individual or individuals purporting to represent the Unions other than its accredited representatives.

The Union undertakes to provide its officials with proper credential setting out inter alia the position held by them.

(c) The Union and THE COMPANY mutually agree to enter into the introduction of Union shop system which, shall mean any employee employed by the Company after completion of probationary period automatically becomes a member of the Union.

(d) The Union undertakes that employees who are Union representatives will carry out the duties delegated to them by Management during their prescribed working hours and such representatives will not leave their places of work for any purpose in connection with their duties as representatives without permission of Management. Such permission shall not be Unreasonably withheld.

(e) Security and sanitary staff will in the event of a strike or other disturbance leading to a stoppage of work, continue to perform their normal duties for the protection of THE COMPANY property and assets in the interests of parties to this agreement and the Union agrees that it will use its influence to achieve this THE COMPANY agrees to use employees during the strike solely for their normal routine duties. In the event of continued production during strike action the Union reserves the right to withdraw the services of all employees.

(f) Normal rights of access to members and potential members shall be accorded to accredited Union representatives for the purpose of Union business.

3. NEGOTIATIONS

(a) Individual Grievances

Any individual employee of THE COMPANY wishing to raise a grievance with which he is directly and personally concerned shall first approach his immediate superior. Incase settlement is not reached, he shall have the right to appeal to the Company as soon as possible. The employee may be accompanied by an accredited Union representative at all stages. If the issue is still unresolved, the employee may refer his case to the Union.

(b) Collective Claims

These shall mean any claims for alteration to terms of service regarding matters specified in clause 2(a) of this agreement which may affect all employees or any group of employees of THE COMPANY.

(i) Such claims shall be raised in writing with the Management by the Union’s General Secretary or his authorized representatives.

(ii) On the receipt of such claims, the Management shall within one week, indicate in writing its acceptance or otherwise.

(iii) In the event of failure to reach a settlement of the matter within seven (7) days in the event of the Union expressing themselves in writing as dissatisfied with the reply of Management, the matter shall be referred to a negotiating committee, shall be convened within seven days of the receipt of the Union’s communication and it shall likewise be convened on a similar request from THE COMPANY. The Committee shall normally consist of five representatives nominated by the Management and five representative nominated by the Union, not less than two of who shall be from the employees actually employed in THE COMPANY and the quorum shall be two from each side.

(iv) The Committee shall regulate its procedure and elect its own Chairman. All agreement jointly reached shall be committed in writing and signed by both parties.

(c) Collective Grievances

These shall mean any grievances arising from a breach, real or alleged, of existing terms of service in the matters specified in Clause 2 (a) of this Agreement, which may affect all employees or any group of employees of THE COMPANY

(i) Such grievances in the first instance shall be raised by the Shopstewards with the immediate superior and in the event that such grievances cannot be satisfactorily resolved immediately they shall then be referred by the Union’s General Secretary or his representatives to THE COMPANY

(ii) In the event of failure to settle the matter, it shall be referred to the Negotiating Committee and Clause (iii) (iv) and (v) of the preceding subsection shall apply.

(d) Failure to reach Agreement

(i) In the event of failure to reach a settlement at the Committee, either party may refer dispute to the Ministry of Labour in accordance with the Laws of Kenya or jointly request the setting up of a COTU (K)/F.K.E dispute commission.

(ii) No strike, Lock-out or other action to stop or hinder operation of the business of THE COMPANY on a matter which has been or should be referred to the Committee shall take place until:-

Deadlock has been reached in the committee 

(iv) After such deadlock twenty one (21) days strike or lock-out notice has been given and has elapsed.

4. MODIFICATION TO AND TERMINATION OF THIS AGREEMENT

This Agreement shall come into force on 14 March 2011 thereafter to continue in force so long as THE COMPANY under the present owners continue its operation and as long as the Union continues as a legal body recognized by Law.

Either party wishing to amend or modify the Agreement shall give one month written notice to the other party with details of the proposed amendments. In the event of it proving impossible to obtain mutual agreement, either party may refer the dispute for formal action as provided for by the labour Relation Act 2007.

SIGNED: FOR THE COMPANY

SIGNED: FOR THE UNION: TAILORS AND TEXTILE WORKERS’ UNION

Dated at 14th this March 2011.