Collective Bargaining Agreement

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COLLECTIVE BARGAINING AGREEMENT BETWEEN MOFED TANZANIA COMPANY LIMITED AND COMMUNICATION AND TRANSPORT WORKER’S UNION OF TANZANIA

1.0 PREAMBLE

1.1 Status quo:This Collective Agreement is made between Mofed Tanzania

Company Limited (hereinafter referred to as the “EMPLOYER” forming the first part to the Agreement and the Communication and Transport Workers’ Union [COTWU (T)] of Tanzania (hereinafter referred to as the Union), forming the second part of the Agreement.

1.2 Status quo:The agreement embraces. “Negotiations and Consultations” on

the rules and procedures through which negotiations and consultations shall be conducted, with respect to Salaries and Wages, other Terms and Conditions of Employment applicable to workers employed and confirmed by the Company except those on probation and daily paid workers.

1.3 Status quo:In this agreement however, where any word or clause

contravenes the provisions or requirements of any of the existing Labour Laws or Regulations or Orders of the Country or Offers relatively inferior treatment or terms to those provided for; then the laws or Regulations shall apply.

2.0.0PRODUCTIVITY PERFOMANCE AND EFFICCIENCY.

Status quo: It is agreed that after successful conclusions of these discussions, the Union shall assist the employer in:-

2.1Status quo:Ensuring that the proper plans to increases productivity

are implemented as drawn by the Employer.

2.2 Status quo:Preventing employees from indulging in acts which are

detrimental to productivity (e. g. waste of materials, theft, negligence lateness, absenteeism, insubordination etc.) and reporting such acts or any other threats against the company and/ or its properly and advising the management on how to handle such situations should they arise.

2.3 Status quo:Take necessary measures to prevent negligent and destruction

of company property.

3.0.0 CHANGES IN LABOUR LEGISLATION

3.1Status quo:In the event of any change, directive, new law, etc, the

Company and the Union shall meet as soon as possible to change, amend or remove that part of the Agreement which is in conflict with the respective Labour Legislations. It is agreed that such changes or amendments shall be to render the Agreement legally acceptable.

4.00 COMMUNICATION TO EMPLOYEES:

4.1Status quo:Management shall undertake to inform all employees of any policy changes affecting them as communicated to them by relevant authorities expect for privileged confidential and private information.

5.0 DEFINITIONS AND INTERPRETATION:

In this agreement, unless the context otherwise requires:-

5.1 “Employer/Company”

Status quo – Shall mean MOFED TANZANIA LIMITED.

5.2 “Union”

Status quo - Shall mean the COMMUNICATION AND TRANSPORT WORKERS UNION OF TANZANIA [COTWU (T)].

5.3 “Country”

Status quo - Shall mean the Sovereign State Geographically known as Tanzania Main Land.

5.4 “CEO”

Status quo - Shall mean the Chief Executive Officer of Mofed Tanzania Limited.

5.5 “Management”

Status quo – Shall mean Chief Executive Officer, CFO and COO as Management Head of Departments.

5.6 “Chairperson”

Status quo - Shall mean the Chairperson of the Communication and Transport Workers’ Union of Tanzania [COTWU (T)] or any other Officer or Officers duly authorized and delegated by him to act or carry out official functions on his behalf.

5.7 “Union Representative”

Status quo – Shall mean the General Secretary of the Communication and Transport Workers’ Union of Tanzania [COTWU (T)] or any other Officers or Officers duly authorized by him to act or carry out Union functions on his behalf.

5.8 “Employee”

Status quo – Shall mean any person or persons employed by Mofed Tanzania Limited under the permanent conditions only or as defined under the labour laws or Regulations of the Country

5.9 “Union Member”

Status quo – Shall mean any employee of the Company who is a member of the Union and as defined by the Law of the Country.

5.10 “Commissioner”

“Status quo” – Shall mean the Commissioner dealing with labour matters.

5.11 “Labour Court of Tanzania”

Status quo - Shall mean the Labour court of Tanzania. Labour Division established under labour act No. 7.

5.12 “Joint industrial council”

Status quo- Shall mean the Management/Union within Mofed Tanzania Limited through wich the Management and Union meet to negotiate for improvement of salaries and other terms of conditions of service.

5.13 “Salaries and Remunerations”

Status quo – Shall mean salary, wages rates, overtimes and any other allowance.

5.14 “Others Terms and Conditions of Service”

Status quo - Shall mean work rules and/ or regulations, hour and places of Work, leave packages, travel concessions, meals and other catering concessions, pensions and other related retirement emoluments that may be agreed upon between the parties from time to time and or Regulations or any other agreement reached by the parties through similar means.

5.15 “Grievance”

Status quo – Shall mean a complaint or complaints and/ or a feeling or feelings of dissatisfaction by either an employee (s) or employer, against any action or treatment or occurrence considered unfair by the party complaining.

5.16 “Labour Dispute”

Status quo – Shall mean any dispute or difference or disagreement Misunderstanding between an employee or employees on salaries or wages or other terms and conditions of employment or as defined under the laws of the country.

5.17 “Grievance Settlement Procedures”

Status quo –Shall mean any procedures and or procedures laid down by the parties to cater for the settlement of grievance or settlement of disputes and as define under the provisions of the Laws of the Country

5.18 “Strike”

Status quo – Shall mean cessation of work performance by a body or group of persons employed to carry out that function, acting in combination or consented refusal or a refusal under a common understanding of any number of persons employed or a concerted interruption of work performance compelling their employer or any person on body of persons employing them to accept or not to accept terms or conditions affecting employment or as defined by the law of the land.

5.19 “Lock Out”

Status quo – Shall mean the right of an employer to lock out an employee or employees in respect of a dispute of interest as defined by Law of the Land.

5.20 “Appendix”

Status quo – Shall mean an attachment or addendum to this Agreement and shall be read as part of the Collective Agreement.

5.21 “Gender”

Status quo – Gender Shall include or apply to both male female and genders, unless specifically applied

5.22“Retrechment”

Status quo – Shall mean reduction of manpower, arising from compulsory re-organization of employees established to strengthen department, or a section or unit of operations, owing to economic circumstance beyond the control of the employer and as defined under relevant articles of the Labour Laws.

4.23 “Dependant”

Status quo – Shall mean spouse and any four (4) children of an employee (whether biological or legally adopted) under 18 and in formal and continuous school.

5.24“Repatriation Allowance”

Status quo – Shall mean transportation costs of an employee, his immediate family members and his personal affects up to the place of domicile.

5.25 “Place Of Domicile”

Status quo – Shall mean place of birth of an employee or any other place Permanent dwelling place.

5.26 “Acting Allowance”

Status quo – Shall mean an allowance paid to an employee who is appointed to act in a higher position.

5.27 “Acting Appointment”

Status quo – Shall mean an approved appointment of a serving employee to a higher position with a view to confirmation, for which acting allowance is payable.

5.28 “ACT”

Status quo - Shall mean the Employment and Labour Relations ACT No. 6 of 2004

5.29 “Sick Leave”

Status quo – Shall mean an approved absence from duty caused by illness of an employee as recommended by a recognized medical practitioner.

5.30 “Medical Examination”

Status quo – Shall mean an examination of an employee of the company carried out by recognized medical practitioner.

6.0.0 RECRUITMENT/APPOINTMENT AND METHOD.

6.1 Status quo - A person may take up employment/be recruited by the

Employer on a specific written contract of service mutually agreed.

6.2Status quo - In order to avoid discontent by either party any time during

or after a contract, each contract of service shall, as far as possible specify the salary and wages and other terms and conditions attached to the post and that, all this information shall be briefly made in writing.

6.3.0 Generally, there shall be two (2) types of contract of service as spelt out hereunder:-

6.3.1 Special contract of Service”

Status quo -Whereby appointment or engagement period shall be specified, with a provision for renewal (if any). This type of contract shall have no regard to any age limit, provided always that the person taking up the employment is not below the age required by the law of the Country. However this group is not entitled to collective bargaining benefit.

6.3.2Permanent and Pensionable Contract of service”

Status quo –Whereby an employee takes employment on permanent and pensionable terms. This is the type of employment in which a person can work up to a certain age specified by the Laws of the Country with qualification or end of service benefits also attached to a certain number of years of service in the employment of the employer. However employees who are engaged under this type of contract shall first be appointed on probation period which shall not exceed twelve (12) months.

6.3.3 Status quo - In all case any person employed by the company shall be provided with a job description.

7.0 EMPLOYEE/EMPLOYER OBLIGATIONS.

7.1 Status quo - For the purpose of good employee/employer relations and the fulfillment of legal requirement, both parties are expected to adhere strictly to their obligation.

7.2 Status quo - The main obligation by either party in relation to paragraph 7.1 above are total adherence to:-

7.2.1 Status quo - The requirement and/or provision of the Labour Laws or Rules or Regulations of the Country.

7.2.2 Status quo - The requirement and/or provision of the Collective Agreement and any other matters mutually agreed between the parties.

7.2.3 Status quo - The requirement of any Company written rules or the Labour Laws or regulations known to the union.

8.0 WORKING HOURS

8.1 The company shall observe the following:-

• Status quo - Forty five (45) hours in a six (6) day week.

• Status quo – Not more than fifty (50) overtime hours in a four (4) week cycle.

•Status quo – Now employee to work more than twelve (12) hours in any day even under agreement.

•Status quo – Night work between 20.00 hour and 06.00 hours shall be paid night work allowance of 5% of the basic wage.

•Status quo – Sunday and public holidays shall be treated as rest days.

8.2 Status quo - Work shall commence at 8.00 hours to 17.00 hours and lunch break shall be between 12:30hours to 13:30hours. However, on Saturday work shall commence at 08:00 hours and close at 14:00 hours.

8.3 Status quo -If an employee works on a public holiday specified in the Public Holidays Ordinance, the employer shall pay the employee double the employee’s basic wage for each hour worked on that day.

9.0 STAFF SERVICE REGULATIONS

9.1 Status quo - There shall be written rules which stipulate almost all what is required of an employee as Guidance which forms part of this agreement. The regulations shall be prepared by the management and agreed by the union. The rules set out in Appendix 1 shall form part of this collective agreement.

10.0 EMPLOYMENT REMUNERATION

10.1 Status quo - While in the service of the Company, an employee, shall qualify for the employment remuneration as stated hereunder, the specified amounts or figures of which are revisable from time to time through mutual agreement.

10.2 Annual increase of salaries shall be affected in consideration of the following:-

10.2.1 Status quo - Any changes in Labour Laws as regards to minimum (Policies, Rules and orders), or the employees contribution to the overall Company results and as per annual staff appraisal.

10.2.2 Status quo - Ability employer to pay vs productivity.

11.0 OVERTIME PAYMENT

11.1 Status quo - This is compensation to workers for work done beyond normal working hours serve for heads of departments and shall be paid as follows:-

11.1.1 Ordinary Overtime

Status quo - No more than 3 overtime hours in any given day (normal is 9 working day hours).

11.1.2 Double Overtime

Status quo - All hours worked on a Public Holiday and Sunday or employee’s normal day of rest shall be paid at double the normal rate i.e. normal rate plus 100%.

12.0.0 REMUNERATION

12.1Status quo - All employees who have served the company for less than twelve months shall be paid minimum remuneration in their respective grades.

12.2Status quo - All junior employees acting in the position of a senior grade shall be promoted to such senior grade, if the situation warrants such promotion.

12.3Status quo – Remuneration and allowances for employees in grades 1 to 2 shall be decided by the Management.

12.4All increments, allowance and remuneration are subject to revision on 1st April each year and Salaries shall be adjusted upwards by 20% on wards depending on the inflation rate and market forces.

12.6 TABLE OF BASIC WAGES/RUMUNERATION

Status quo – The table of basic wages/remuneration will be as per the Appendix 2 to this Agreement.

13.0 ALLOWANCES

13.1 Acting allowance

Status quo - Where an employee is required to temporarily perform a job in

A more senior or higher position for a minimum of one (1) months which increases the employee’s workload, the employee will be communicated to in writing by Management. And, by virtue of the new duties, the employee shall be paid an acting allowance which is the difference between the basic wage of the senior grade and the acting employee’s grade.

13.2 Limit of Acting

Status quo – The employee should be allowed to act in one post for a period of not more than three months consecutively; otherwise he/she should be promoted to the post, or reverted to his/her substantive post.

13.3 Transport Allowance

Status quo – The Company shall provide transport for all employees to and from Mofed. However, where there is a breakdown of the company bus, the company refunds normal direct bus fare at the ruling rate.

Status quo – Where the breakdown is for a long period, say a week, then another bus may be hired.

Status quo – Since the staff bus picks and drops off staff at the nearest bus stop, each employee will meet the additional bus fare that might arise outside arrangement.

13.4 Responsibility Allowance

Status quo – Employees, who are not entitled to overtime payments, shall be entitled to responsibility allowance which will be determined by Management.

13.5 Travel on Company business

13.5.1 Definition

Status quo – Where an Employee undertakes a business trip to a location outside Dar es Salaam and /or abroad, the employee will be regarded as being on an official visit.

13.5.2 Choice of route

Status quo – Unless there is a good reason to do otherwise, a trip must always be made by the shortest route: by air, road or rail as the case may be.

Fares shall be paid for employees as follows:-

•Air Travel

Status quo – All employees will travel by economy class when on an approved company business.

•Rail Travel

Status quo – Second class will apply

•Road Travel

Status quo – Shall be paid fare to and from the Dar es Salaam by economic means of transport, or use of a pool utility vehicle, which ever may be suitable or the next best available alternative.

13.5.3 SUBSISTENCE ALLOWANCE FOR LOCAL BUSINESS TRAVEL

•An employee traveling locally on approved company business, and the employee opts not to take meals from the hotel where the employee is accommodated, the employee is entitled to claim the following:-

CategoryIn the Country TSHS

-Breakfast 5,000/= per day

-Lunch 10,000/= per day

-dinner10,000/=per day

•A local subsistence allowance equivalent to TZS 80,000/=per day will be paid to an employee where it involves an overnight stay away from Dar es Salaam.

•No subsistence allowance shall be paid in respect of absence from Dar es Salaam not involving an overnight stay, except meal allowances as (a) above.

13.5.4 SUBSISTENCE ALLOWANCE ON FOREIGN BUSINESS TRAVEL

Status quo – A subsistence allowance (or per diem) is intended to cover all daily expenses whilst conducting official business or training overseas:-

Status quo - An employee will be paid a subsistence allowance (or per diem) equivalent to US Dollars 180 per day, as may be reviewed by Management from time to time, where it involves an overnight stay away from Tanzania. The subsistence allowance caters for all boarding expenses, including hotel accommodation, cost of meals, laundry, entertainment and incidentals

Status quo - Other considerations may be given when traveling to a region where cost of living is known to be very high and accommodation may cost more than the regular subsistence allowance.

Status quo - Payment of airfares, visa costs, affiliation fees, airport departure tax and transportation will be met by the company.

Status quo - No excess baggage costs will be met by the company

Status quo -If a business trip is concluded in a day, reasonable actual expenses may be claimed.

14.0 HOUSEING ALLOWANCE

All employees who are not entitled to company houses shall be paid Housing Allowance equivalent to 50 % of their monthly basic wage.

15.0 CANTEEN

Status quo – The employer shall provide lunch to employees each working day, and each employee will contribute TZS. 20,000 per month towards the cost of the meals.

15.1 So long as canteen does not operate during Sundays and public holidays on employee working on such days shall be paid as per clause 13.5.3 of this Collective Bargaining Agreement.

16.0 YEAR END BONUS

16.1 A Bonus shall be paid to the workers at the end of the year dependent upon the financial performance of the company. The amount to be paid to each employee will be determined by management but not less than one month gross salary.

16.2 Status quo – Management may nominate a suitable date falling between the 10th and 20the December each year to host the end of year party, where spouses shall be invited to the party.

17.0 TERMINATION OF SERVICE

15.1 Status quo - Termination of service shall mean discontinuation of service of an employee by the employer.

17.0 NOTICE

17.1 Status quo - The employer shall write a letter for the action stating elaborately the reasons for termination of service with a copy to the Union Field Branch Committee provided the employee is a unionized member.

17.2 Status quo - The employee shall give 30 days notice or payment of one month’s basic salary in lieu of the notice.

18.0 TERMINAL BENEFITS ON TERMINATION OF EMPLOYMENT BY EMPLOYER OTHER THAN TERMINATION FOR DISCIPLINARY ACTION

18.1 Payment shall be:-

18.1.1 Status quo - One month’s gross salary in lieu of notice

18.1.2 Status quo - Payment of any leave days accrued

18.1.3 Status quo - Any salary due to the day of termination

18.1.4 Status quo - Facilitation, assistant of Social Security Fund (NSSF) and other Pension’s Scheme’s benefits.

18.1.5 Transport of the employee and his personal effects to the place of domicile

18.1.6 Status quo – Paid one (1) month salary for each completed year of service up to the maximum of 5 years. gross salary for each year of service up to a maximum of 15 years.

18.1.7 Status quo -Severance pay as per Employment and Labour Relations Act 2004 Section 42

19.0 RETRENCHMENT PROCEDURE

19.1Status quo - Both parties agree to do their level best to make sure this does not happen.

19.2 Status quo – This shall mean the discontinuation of employee’s service through reduction of company labour force after necessity to do so has been established as mutually agreed.

19.3 Status quo – The Management must do the following before this exercise takes place.

• Explain clearly in writing to the union two months (2) before implementation of the intended exercise.

• Spell out the number of employees to be affected.

20.0 RETRENCHMENT

20.1 Both parties agree to the criteria which shall be followed:-

•First in Last out (FILO) method

•Voluntary redundancy/departure

•Weaker performer and unqualified employees

•The Management shall prepare the list and consult the Union branch Committee before implementation of the exercise.

21.0 RETRENCHMENT TERMINAL BENEFITS

21.1The company shall pay the following:

21.2Status quo - Give one month notice to the employee or payment of one months salary in lieu thereof

21.3 Status quo - Pay one (1) months gross salary for completed year service as compensation for unexpected loss of employment up to the maximum of 10 years.

21.4 Status quo - Transport of the employee and his personal effects to the place of domicile.

21.5 Status quo – Severance pay as per Employment and Labour Relations Act 2004; section 42.

22.0 FUNERAL ASSISTANCE

22.1 DEATH OF DIRECT EMPLOYEE

22.1.1Status quo - The Company shall provide a standard coffin to the deceased employee’s family, and where the coffin is not necessary, an equivalent amount shall be paid instead.

22.1.2 During the funeral, the company shall provide transport and pay TZS 500,000/= to the agrieved family as a special condolence by the company.

22.1.3 The employee shall pay shs 500,000/= for other funeral expenses.

22.1.4 Status quo – The Company shall incur the transportation cost of the deceased employee up to the place of burial

22.2 DEATH OF A SPOUSE, OWN CHILD OR A REGISTERED DEPENDENTS

In the event of the death of an employee’s spouse, own child or a registered dependant, the company shall pay a sum of TZS 500,000/= towards funeral costs. All costs regarding funeral expenses are covered in this grant. “Wife means one wife, and no polygamous marriage shall be entertained

23.0 COMPULSORY RETIREMENT

23.1Compulsory retirement age for all permanent employees shall be 55 years and either party shall give three (3) months notice of intention to retire.

23.2 RETIREMENT PACKAGE

23.2.1Status quo – One month salary in lieu of notice

23.2.2 Status quo – Leave days due.

23.2.3 Status quo – Transport of the employee and his personal effects to the place of domicile or shs 3,000,000/= repatriation allowance which ever is greater

23.2.4 Status quo – Severance pay.

23.2.5 Paid a “golden handshake” of two and a half months basic salary for each completed year of service

23.2.6 A retiring employee shall also be awarded.

•5 tones of cement

•50 three meters, twenty eight gauge iron sheets

•Other building materials worth 2,000,000/= or cash equivalent.

24.0 EARLY RETIREMENT

24.1 Status quo – Provided an employee has served the company for at least 10 years, or is 50 years of age, the employee may be entitled to apply for early retirement.

24.2 Status quo – The employee shall give three (3) months notice to the Employer

24.3 Status quo – Shall be paid salary and leave days accrued to the day of retirement with two months salaries as travel allowance for him with his family.

24.4 Status quo – The company shall render assistance for settlement of Social Security fund (NSSF) and other pension scheme’s benefits.

254.5 Transport to the place of Domicile.

25.6 Shall be paid a “golden handshake” of two months basic salary for each completed year of service.

25.7 Severance pay of twenty days salary for each year of Service.

26.0 TERMINATION OF SERVICE ON MEDICAL GROUNDS

26.1 Status quo -This is discontinuation of service as a result of ill-health, physical or mental incapacitation

26.2 Status quo – Termination shall be as per the provisions of the Labour Act.

26.3 Status quo – Other benefits as stated in clause 18 above

27.0 SICK LEAVE

27.1 An employee is entitled to sick leave of 180 days per year calculated as follows:-,

•The first 3 months shall be paid at full wages

•The second 3 months shall be paid at half wages

27.2 Status quo – The employer may not pay for sick leave if the employee fails to produce a medical certificate, which is issued by a registered medical practitioner acceptable to the employer.

27.3 Status quo – When an employee exhausts the sick leave and sickness continues, the employees services may be terminated on medical grounds as stipulated in clause 24 above. Save for HIV Aids victims whose procedure shall be refered to the company HIV/AIDS policy.

28.0 LEAVE

28.1 Status quo – Leave Accrual

28.1.1 Status quo – All employees are entitled to 30 working days’ leave, every year.

28.1.2 Status quo – Employees who have served the employer less than six (6) months are not entitled to annual leave.

28.1.3 Status quo – Annual leave shall not accumulate for more than 2 years, unless requested by the employee and agreed by the employer.

28.1.4 Status quo – Any employee who proceeds on leave shall be paid his salary in advance if the pay day falls during the leave period.

28.154 Status quo – If an employee wishes to go on leave he shall make an application on the prescribed form.

28.2 Leave Travel

28.2.1 Status quo – Annual leave may be granted on application. The Company shall contribute TZS 70,000 as leave travel allowance. As a rule, an employee is required to take a minimum of twenty one (21) days leave to qualify for leave travel allowance.

28.3 Maternity/Paternity Leave

28.3.1Status quo – A female employee shall give notice to the employer of her intention to take maternity leave at least three (3) months before the expected date of birth and such notice shall be supported by a medical certificate.

28.3.2 Status quo – A Female employee is entitled to 84 days paid maternity leave or 100 days’ paid maternity leave if the employee gives birth to more than one child at the same time. Annual leave is automatically exhausted during maternity leave.

28.3.3 Status quo – In case of illness which arises out of pregnancy and that this results in a female employee being temporary incapable of performing her duties, such an employee shall be entitled to sick leave in accordance with the provisions of this agreement and upon recommendation of a medical practitioner.

28.3.4 Normal annual leave of the employee shall not be Forfeited.

28.3.5 Male employees are entitled to paternity leave of seven (7) days.

28.4 Compassionate Leave

An employee shall be entitled to 10 working days leave which is not deducted from annual leave. Compassionate leave shall be granted upon death of spouse, father/mother, direct brother/sister and direct dependant.

29.0 MEDICAL SERVICE

29.1 The company shall bear medical costs at Fee Paying hospitals and/or clinics for the employees, spouses and own/legal adopted children up to a maximum of 4 children of not more than 18 years old. Except for children above 18 years who are dependants. The fee is paid directly to hospitals and clinics identified by the employer except in emergency cases where the employer shall reimburse at the rate of TZS 60,000/= per month if the employer is informed

30.0 HIV/AIDS

Status quo – No discrimination of any kind shall be made to any employee affected by HIV/AIDS, or living with HIV virus or suffering from it. The company shall not terminate any employee who is suffering from AIDS for reasons of failure to perform his/her duties efficiently, instead measures to transfer employee to less depending job shall be considered.

31.0 ACCIDENTS, COMPENSATION AND DEATH BENEFITS

31.1 Status quo – All accidents encountered by employees at any time shall be reported immediately, provided that those occurring at the work places shall be reported first to the employer and those occurring outside the work place and in the course of execution of official duty shall be reported to the police or later to the employer.

31.2 Status quo – Policy and coverage; as per Mofed Tanzania Limited insurance policy on Group workemen’s compensation as may be established by the employer.

32.0 LOANS AND ADVANCES

32.1 Status quo – The Company may provide loans to permanent employees after considering the financial position of the company and the ability of the employee to repay the loan amount.

32.2 Type of loans that may be accessed:

•Status quo – Motor vehiclerepayment period: 3 years

•Status quo – School fees/Study loanrepayment period: 2 years

•Status quo – Furniture loanrepayment period: 2 years

•Status quo – house loan repayment period: 3 years

32.3 Status quo – The company shall introduce an employee who wishes to get loans from lending Banks and other financial institutions.

33.0 PROTECTIVE CLOTHING/UNIFORMS

33.1 The company will provide suitable or appropriate clothing to relevant employees, i.e. two pairs of uniforms or protective clothing each year plus four bars of soap to each employee every months for washing the uniforms.

34.0 LONG SERVICE AWARD

34.1The Company shall give long service award to employees on completion of continued service of 10 year 15 years and 25 years as follows:-

10 years of service3 months salaries

15 years of service 5 months salaries

20 years of service 8 months salaries

25 years of service10 months salaries

Status quo - The Management and the Union shall meet to make arrangement in awarding the deserving employees

35.0 BEST WORKERS AWARDS.

35.2.1 Status quo – There shall be a system of selecting and awarding the workers annually as follows:-

•Overall best worker 3 months salaries

•Department best worker one months salary.

•

35.2.2Status quo – The Union shall determine the departmental best workers. The names of the selected four (4) best workers will be given to management, who shall select the overall best workers

35.2.3 Status quo – The overall best workers shall receive cash award which will be paid during the May Day Celebrations.

36.0 STAFF TRAINING/DEVELOPMENT AND JOB APROPRIATION/SUCCESSION

36.1 Status quo – Staff training and development is essential to equip and improve employees performance of their day to day activities. Secondly, it’s a role the employer undertakes to enhance efficiency at the work place.

36.2 Status quo – In order to achieve 36.1 above, the employer shall in its annual budget set aside funds for training and development of employees.

36.3Status quo – In addition, there shall be established a School Fees or Study Loan scheme where employees are free to contribute 20% of their monthly basic salary. If employees agree, the fund will be controlled by the employer and funds can be disbursed to the employee as and when requested.

36.4Status quo – All deduction for this scheme shall be kept in a special account monitored by both parties

36.5Status quo – As an incentive, Employees attending part time courses approved by management shall be refunded their fees upon the successful completion of studies and submission of a diploma or degree.

36.6Status quo - Management shall consider promoting the employee and effecting a salary adjustment upon presentation of diploma or degree certificate.

37.0 CERTIFICATES OF SERVICE AND RECORD REQUIRED

37.1Status quo – On termination of service (section 24 above) an employees shall be issued with a certificate of service stating:-

37.1.1 Status quo – Name of Employer

37.1.2 Status quo – Name of Employee

37.1.3 Status quo – Date of Engagement

37.1.4 Status quo – Nature of employment (position held)

37.1.5 Status quo – Salary and grade on termination

37.1.6 Status quo – Date of termination, and reason for termination

38.0 TERMINAL BENEFIT RESERVE

Status quo – The Company shall reserve adequate funds in a special account each year to be used for paying terminal benefits of retrenched, retired and terminated employees.

39.0 ARBITRATION PROCEDURE

39.1 Status quo – Where a party to this agreement is not in agreement with an action by the other party on matters of Industrial Relations of the Company, or where either party feels that the other is acting contrary to provisions of this Agreement, the party so dissatisfied shall seek the assistance of the Commission for Medication and Arbitration (CMA) to arbitrate in the Labour dispute.

39.2Status quo – However, before a party takes the action discussed under the preceding paragraph, it shall give not be less than 21 days written notice to the other party and shall give a brief explanation of the grounds of discontent.

40.0 AMENDMENT AND PROCEDURE

40.1 Status quo – Any clause and or provision within this agreement may be amended or modified at the request of either party, provided always that the party so seeking amendment shall give written notice of not less than 3 months to the other part of the intention to do so and that such amendment shall be mutually discussed and agreed by the parties.

41.0 CONFIDENTIALITY

41.1 Status quo – All information, however communicated or recorded and whatever form it takes, provided by both parties in connection with this Agreement shall be for the others exclusive use and many not be divulged by either party to any natural or legal person (save as may be required under this Agreement), in which case either party shall ensure that such person undertakes to be bound by the terms similar to this clause, such action shall not be taken without the prior written consent of the other, which consent shall not be unreasonably withheld.

41.2 Status quo – The restriction referred to in 41.1 shall not apply to information, which is now, or hereafter enters the public domain other than as a result of breach by one party of its obligations in terms of clause 40.

42.0 EFFECTIVE DATE, DURATION

42.1 This Agreement comes into force on …………..day of …………..…...and shall run for 2 years ………………………….………………….

42.2Status quo - Not withstanding paragraph 42.1 above, this Agreement shall remain in force until it is replaced by another.

42.3 Status quo – Parties undertake to effect negotiations on a new Agreement 3 months before expiry of this Agreement.

42.4 The Parties hereto have set their hands in Dar es Salaam on this ………………………………………………….. In the presence of subscribing witnesses:

For and on behalf of

MOFED TANZANIA LIMITED

NAME ……………………………………………………..…..

SIGN ……………………………………………………..