COLLECTIVE BARGAINING AGREEMENT BETWEEN SBC TANZANIA LIMITED (THE “EMPLOYER”) AND TANZANIA UNIUON OF INDUSTRY AND COMMERCIAL WORKERS (TUICO) (THE “UNION”)

The Collective Agreement is made this 31st day of January 2011 between SBC Tanzania Limited of P.O. Box 4162 Dar es Salaam as The "Employer” or the "Company" and Tanzania Union of Industrial and Commercial Workers (the "Union”) of P.O. Box___ Dares Salaam acting solely and only for the benefit of employees of the Company being member of the respective Field Branches.

PREAMBLE

A. WHEREAS the field branches at the company locations in manufacturing plants and depots and elected representatives from Union Headquarters constituted a committee to negotiate a Collective Agreement with the management of the company:

B. WHEREAS the aforesaid committee met on 6th-8th October. 2010 in Dar es Salaam to prepare proposals for the Collective Agreement and

C. WHEREAS the aforesaid proposals were submitted to the management of the company on 11th October. 2010 and 20th December. 2010 the said proposals were then discussed between the committee and the management of the company between 1lth October 2010 and 20th December. 2010.

NOW IT IS HEREBY AGREED as follows:

1. DEFINITIONS:

“Acting Allowance”

Means an allowance payable to any employee who is appointed to act in any position whose holder is away for any reason

“Acting Appointment”:

Means the appointment in writing by Head of Department and to be confirmed by Human Resources Department of a serving employee to any position whose holder is away for any reason. The said holder having duly handed over his/her duties.

“Basic wages”:

Means that part of an employees’ remuneration paid in respect of work done during the hour ordinaly worked but not to include (a) allowance, whether or not based on the employee rate of pay as reviewed every year by the company, (b) Pay for over time worked, (e) Additional pay work on Public holidays and rest days or additional pay for night work.

“Company”:

Shall mean SBC TANZANIA LIMITED

“Employer”:

Shall means SBC TANZANIA LIMITED represented by Executive Director or his appointee in writing.

“Employee”:

Shall mean any person who has entered into or works under a contract, of service with the Company who is either a member of the UNION .or any other employee of the Company at a location where the UNION is the exclusive bargaining agent, or another employee of the Company who may subsequently subscribe to the UNION

“Family”

a) Employee's marital spouse but only one married legally, recognized with marriage certificate registered in the Company's records.

b) The employee's own or legally adopted children up to a maximum of 4 children under 18 years of age as evidenced by birth certificates and in case of adopted children due certificates of adoption registered in the Company's records.

“Government”:

Means the Government of the United Republic of Tanzania

“Gross Salary”

Shall mean total salary of any employee including basic salary and all payable allowances Minimum wages ”:

Means the lowest basic wages in the company .and may be negotiated

“Medical Examination”

Means an examination of an employee of the Company carried out by the Company's Doctor or recognized Medical Practitioner duly approved by the Company.

“Overtime”:

Means aggregate number of approved hours worked in excess of an employee's normal working hours.

“Sick Leave”:

Means approved absence from duty caused by illness of an employee as Certified by a recognized Medical Practitioner Board.

Union”:

Shall mean TUICO (Tanzania Union of Industrial and Commercial Workers) of P.O.box 5680 Dar-es-salaam.

...“Union Member(s)”

"Shall mean an Employee of the Company and w ho is a Member of the Union “Member” in relation to the Union shall mean a member of the Union:

“Union Leaders (s)”:

Shall mean any member(s) of the union who have been duly elected by member employees to be their officials

Negotiation Committee”:

Means a Committee consisting of representatives of union members elected by such member from among union members of the Field Branch of the respective Company location and representatives appointed by Union Head Quarters to represent the union members in negotiations with the Employer

“Representative”

Shall mean a branch of TUI CO established b\ the TUICO and consisting of duly elected representatives at the business of the Employer SBC Tanzania Limited.

“Retrenchment”

Means termination of employment arising from the operational requirement of the business. Operational requirement is a requirement based on the economical, technological, structural or similar needs of the Employer.

"Dispute"

Shall have the meaning ascribed to it under Employment and Labour Relations Act No. 6 of 2004.

"Interpretation"

Unless otherwise provided and where the context so admits, in this agreement, words in the singular include the plural and vice versa.

2. INTRODUCTION AND OBJECTIVE

Both parties to this Agreement TUICO herein called the "UNION” and M/S SBC Tanzania Limited, herein called the “COMPANY”, are desirous of achieving the following objectives:

a) To facilitate the welfare of the employees.

b) To increase productivity in whatever field the employees are engaged in.

c) To improve terms and conditions of service.

d) To create a healthy and motivated work environment built on mutual trust and respect for each other.

To create harmony at the place of work:

a) The Company recognizes the Union as the sole legitimate representative of all employees covered by this agreement in as far as their welfare and terms of service are concerned.

b) The Union recognizes the Company's rights and obligations to run the business, administer the factories, including the employment and development of (employees, introduction of technical and administrative changes including disciplinary action, in addition to the setting up of plans to increase productivity.

c) Both parties agree that the Company reserves the right to develop the business of the Company and in collaboration with the Union to promote the welfare of the employees.

d) Both parties agree that, in order to maintain amicable relations. Union Leaders will be the legitimate representatives and participants in ensuring that whatever has been agreed upon is implemented.

e) Both parties agree that Union dues shall be deducted by the Company from Union members' wages and agency fees shall be deducted from the remuneration of employees who are not members of the Union but who enjoy, the service of the Union and be remitted to the Secretary General of TUICO. The Secretary General or his representative shall notify the Company the rate of the Union dues payable along with the current list of the members and will communicate any changes as and when they occur as per the requirement of the law on deductions of Union dues.

f) Both parties agree that this agreement shall cover all Employees as defined in this Agreement.

g) Both parties recognize that transferring of employees within the Company and divisions is fully at the discretion of the Employer.

However if the transfer involves a Trade Union Leader, the Employer should consult the TUICO Regional secretary prior to the transfer.

h) Both parties agree that the basic salary, meal allowance, transport allowance, responsibility allowance and housing allowance as Applicable to the respective grade and pay point of the employee shall be the same in all locations of the Company.

i) Both parties agree that if a vacancy arises in the Company, advertisement for the position should be done internally and externally simultaneously.

3. PRODUCTIVITY PERFORMANCE AND EFFICIENCY

a) The employer and the field branches which shall take consultation of Union will ensure that proper plans to increase productivity are implemented as drawn by the Employer. Employees should not indulge themselves in acts, which are detrimental to productivity (e.g. wastage of materials, theft, negligence, lateness, absenteeism, insubordination. etc.).

b) The Field Branch which shall take consultation of the Union in collaboration with the Employer will ensure and facilitate that appropriate steps are taken against culprits as mentioned in (a) above and facilitate implementation of those steps.

e) The Field Branch which shall take consultation of the Union in collaboration with the - . Employer will ensure that targets are met and surpassed.

e) The Employer shall encourage those employees whose performance exceeds targets to be recognized in a manner to be determined by the Company and as may be reviewed from time to time.

f. The Company shall provide one case of liquid of soda to every employee at either ldd Fitr or Christmas depending on each employee's choice

4. GENERAL EMPLOYMENT PRINCIPLES:

a. Employment

The appointment of employees shall be done by the Employer and any advertisement of the position shall be done internally and externally.

b. Retirement.

That the voluntary retirement age shall be at 55 years and that the compulsory retirement age at 60 years. “VOLUNTARY '' means reached under mutual agreement between employee and Employer

c. Acting Allowance

This allowance shall be paid to any employee who is appointed in wrting by Human Resources Department as an acting employee to act in any position within the Company other than the position for which the employee was originally employed and for such acting period not exceeding four weeks and solely at discretion of the Employer. The Allowance payable to the acting employee shall be the difference between the basic salary of the position for which the acting employee was originally employed and the basic salary for the position the acting employee is acting for.

(ii) Any work beyond 45 hours a week will be treated as overtime and payment for same will be made.

(iv) The above provision however shall not apply to employees in the sales function due to the nature of their work and their incentive scheme as implemented in lieu of the admissible overtime payment.

(v) The Company shall provide sufficient amount of money for medical attention and transport facility to transfer an employee from the work premises for any work related accident to the approved medical facility.

(vi) The Official Sick-sheet for work related accidents shall be provided by the Company.

g. Canteen

(i) The Employer agrees to provide the Employees with suitable dining facility clearly demarcated to facilitate taking their breakfast and meals. In addition, the employer at his cost shall designate places for selling pre-cooked meals by pre-designated vendors inside the Company premises. The breakfast shall be sold between 6.00 a.m to 8.00 a.m. whereas meals shall be sold between 12.00 noon to 2.00 p.m and 7.00 p in to 9.30 p.m strictly on all working days to the desirous Employees

(ii) It is agreed that it shall be the exclusive responsibility of the Field Branch Committees to identify, negotiate and administer on a day to day basis the provision of selling pre-prepared food packets as mentioned in clause g (i) above to the Employees.

(iii) The OCCUPATION HEALTH AND SAFETY COMMITTEE shall ensure the general cleanliness of the canteen and dining facilities to deplore and supervise on a day to day basis by Field Brand Committee.

(iv) The food packets as mentioned above can be purchased by the employees at their will and cost by making suitable payment as agreed between the vendor and the Field Branch Committee.

(v) The Employer shall continue to pay employees the meal allowance as in the current wage structure as per stated policy of the Company as negotiated from time to time.

Allowances

i. Duty Travel Allowance

The Company shall pay duty travel allowance to employees of both Grades SF and SU who travel on Company business or, of his/her base station and spends a night out of his her duty station as follows:-

Cities Municipalities/Regional /Regional Headquarter	District Headquarter	Villages
Tshs.60.000	Tshs.40.000	Tshs.20.000

iv. Housing Allowance.

That the Employer shall pay housing Allowance as per respective grade.

II.When new employee is allocated elsewhere other than place of recruitment, the Company shall pay employees reporting for the first appointment 10 days night allowance applicable to his/her grade to enable him /her accommodation while searching for residential accommodation.

Transit Travel Allowance:

The Company shall pay 50% of his/her travel allowance entitled if he/she spends a night out on the journey to the new destination. The employees is entitled to 25% of his/her travelling allowance if he/she arrived at the destination at 3.00pm

Traveling on transfer:

Both parties agree that transfer of employee to other location within SBC the following condition shall be as follows:-

*The Employer shall meet transport expenses for the employee and his/her family on actual basis through the mode of class of traveling applicable to his/her grade.

*The transferred Employee shall be paid 14 days per diem allowance.

- Disturbance allowance payable to the transferred Employee shall be at the rate of 15 days of the basic salary.

-Luggage packing charges as follows:

SF11&1	Tshs 150.000.00
SU II & I	Tshs 200.000.00

*The Employer shall meet cost of transporting personal effect of the transferred employee as per annexure (Transport matrix) negotiated from time to time.

Best Employee Scheme

(i) Departmental Best Employee

Both parties agree that for the purpose of selecting the best employee, the employees of the Departments mentioned below are eligible:

•Production Quality Control

•Sales

•Stores and Purchase

•Administration and Personnel

•Finance/IT/Internal Audit

•Security

•Engineering

•Yard

•Fleet

•Cooler

Each Department will select the best employees from all SBC Tanzania Limited Locations cumulatively totaling to as follows:

•It is the duty of the Company to define a list of 5 parameters on the basis of which evaluation will be done by the head of function for recommending the requisite candidacy in determining the basis of evaluation of the best workers, the Company will take into account parameters proposed and involve the Field branches to ensure inclusivity. The recommendation and mode shall be subject to the approval of the Chief Executive Officer

•This shall be an annual exercise to be done in the month of April every year where every such chosen employee shall be announced on 25th April of ever year and such an employee shall receive a prize of T.Shs 300.000.00 subject to tax if any. The prize and certificate of award shall be given on 1st May at respective locations of the Company.

k) Salary /Wages, Promotion, Normal and special Increment.

(i) Both parties agree that salaries /wages shall be negotiated.

The Employer shall review the minimum basic salary by increasing Tsh.20.000/= with effect from the next financial year of the Company

(ii) Both parties agree that the special increment shall be awarded according to individual's performance as appraised by his/her superior: in-charge and subject to the approval of the Executive Director.

(ii) The Union and the Employer agree that employee promotion shall be determined by the employee's performance appraisal during the appraisal year and the recommendation as per Head of Department subject to the approval of the Executive Director.

Uniforms

(i) That the Company agrees to provide the employees with uniform in accordance with the law once every year.

(ii) Two sets of uniforms shall be provided to the particular Employee once in a year. The quality of uniforms should be highly considered.

(iii) Responsibility of maintaining the uniform issued by the Company shall be the sole responsibility of the employee to whom it is issued. The Company shall supply one bar of soap on a monthly basis to motor vehicle mechanics, Maintenance mechanics, and Cooler technicians. 

(iv) Uniforms so provided shall remain the properly of the Company and shall be worn by the Employee during all working hours.

(v) Uniforms shall be provided to all confirmed Employees

(vi) The Parties agree that they shall make joint efforts to educate and create awareness for use of uniforms and cooperate to enforce the disciplinary action against non-conforming employees.

n) Procurement

The procurement of uniforms and protective gear will be in accordance with good procurement practices as set by the Company taking into account quality, pricing and warranty.

o) Special Diet

The company agrees to provide T.Shs.900.00 per employee to buy fresh milk daily for employees in the following sections of operations:

(i) Acid hand washing of bottles

(ii) Bottle washing machine operators

(iii) Water reclamation plant operators

(iv) Boiler Operators

(v) Cooler Technicians

(vi) Filler Operators

(vii) Syrup Room Operators

(viii) Data code machine operators

(ix) Water treatment plant operator

Provided that the Occupational Health and Safety Committee shall conduct a study on other hazardous areas and make appropriate recommendation for provision of protective gear, uniforms, special diet training and procurement policy for those areas.

q) LEAVE

-Both parties agree that leave travel assistance (LTA) payable by the company shall be uniform to all company locations. Disbursement of the leave travel assistance shall be as paid to the employee for even year when proceeding on sanctioned annual leave at the rate of Tsh. 15.000

(j) POOL CAR

The parties agree that transport for Employees who work late hours be shall be available

(k) SUNDAY AND PUBLIC HOLIDAY ASSISTANCE

Both parties agree that Sunday and public holiday allowance shall be paid at rates as follows:

SF II & I	Tsh 2,500.00
SU II& I	Tsh 3,000.0

7. CO-OPERATIVE ACTIVITIES

Both parties agree collectively to make efforts and encourage employees to form a SAVING AND CREDIT SOCIETY.

8. CHANGE OF EMPLOYER

a) The Parties agree that the Company shall not transfer any Employee to another Employer without due consent of the Union.

b) In the event of the Union having consented to the transfer of his/her services to the new Employer, the transfer shall be done on the then existing contractual terms including the terms of this Agreement.

10. GENERAL

The Parties agree that the Management will endeavor to have a scheme of service in place as soon as possible.

11. INTERPRETATION OF THIS AGREEMENT

a) Employment and Labour Relations Act, 2004.

It is jointly agreed that no section of this Agreement shall have the meaning of going against laws of Tanzania, regulations, directives, conditions or legal orders concerning employment.

a)If any differences in the interpretation or implementation of the agreement arise, both parties will deliberate, with a view to finding a satisfactory formula/solution. In case of non-resolution of the issues, the difference shall be submitted by the aggrieved party to a body or forum of competent jurisdiction in accordance with applicable law.

12. PERIOD AND DATE OF COMMENCEMENT OF THE AGREEMENT

a) This Agreement will commence on the 1st February. 2011 and shall be in force for a period of 24 months from the dale of signing.

b) In the event that no party submits information depicting an intention to alter or otherwise amend the Agreement and reasons thereof, then this agreement shall be deemed to be in force and remain binding until a new agreement is signed.

c) Any party with intention to alter or otherwise amend a section of this Agreement shall give written notice of at least two months to the other party explaining the reasons thereof.

d) In the event that both parties agree to negotiate a new collective agreement, this agreement shall remain valid until the new agreement is signed.

The above provisions to this Collective e Agreement are a true record of what has been discussed and mutually agreed upon voluntarily

ANNEXTURE

PROPOSED TRANSFER LAGGAGE RATES FOR SF AND SU GRADES

FROM
	Dsm	Moro	Tangs	Dodoma	Mwanza	Shinyanga	Bukoba	Mbeya	Irings	Arusha	Moshi	Lindi	Mtwara	Zanzibar
DSM Morogoro Tanga Dodoma Mwanza Shinyanga Bukoba Mbeya Iringa Arusha Moshi Lindi Mtwara Zanzibar	- 400 450 600 1,300 900 1,400 1,200 700 1,100 850 300 1,000 600	400 - 550 400 800 600 900 700 400 1,100 900 1,200 1,400 900	450 550 - 850 1,000 900 1,300 1,200 900 750 550 1,300 1,400 1,000	600 400 850 - 650 500 800 1,100 750 1,400 1,100 1,500 1,700 1,200	1,300 800 1,000 650 - 300 550 1,500 1,200 1,000 1,150 2,100 2,300 1,800	900 600 900 500 300 - 750 1,300 1,000 850 1,000 1,600 1,800 1,400	1,400 900 1,300 800 550 750 - 1,800 1,500 1,350 1,100 2,000 2,300 2,200	1,200 700 1,200 1,100 1,500 1,300 1,800 - 500 1,800 1,500 2,100 2,400 1,700	700 400 900 750 1,200 1,000 1,500 500 - 1,300 1,100 1,600 1,700 1,300	1,100 1,100 750 1,400 1,000 850 1,350 1,800 1,300 - 250 2,000 2,100 1,700	850 900 550 1,100 1,150 1,000 1,500 1,500 1,100 250 - 1,750 1,850 1,450	900 1,200 1,300 1,500 2,100 1,600 2,000 2,100 1,600 2,000 1,750 - 300 1,500	1,000 1,400 1,400 1,700 2,300 1,800 2,300 2,400 1,700 2,100 1,850 300 - 1,200	600 900 1,000 1,200 1,800 1,400 2,200 1,700 1,300 1,700 1,450 1,500 1,200 -