THE COLLECTIVE BARGAINING AGREEMENT BETWEEN TPC LIMITED AND TANZANIA SOCIAL SERVICES INDUSTRY WORKERS UNION (TASIWU)
1.0 PREAMBLE
We Tanzania Social Services Industry Workers Union hereinafter referred to as TASIWU, on one part and TPC Limited, hereinafter referred to as “the employer” or “the company” on the other part, jointly recognize that:
- TPC Limited has to work under the environment of a privately owned company;
- The present world economic environment is characterized by global competition and the elimination of trade barriers;
- Business organizations need to constantly invest, increase productivity, improve quality and control the cost of production in order to survive and preserve jobs in the long run;
- For the achievement of the company objectives, improvement of workers welfare, safety, health and income is necessary.
In line with the above principles, we jointly confirm in writing and after our signatures hereto on affirmative that we have voluntarily agreed on the following matters pertinent to good working conditions, wage payments, work safety, production incentives and carrier advancement.
2.0 DECLARATION
Both parties agree that this agreement is made under part J (2) of the Recognition Agreement that was signed on 1st June 2009 and that it becomes a subset of the Recognition Agreement and that all terms and conditions agreed in the Recognition Agreement are binding to the current Collective Bargaining Agreement.
3.0 COMMENCEMENT AND END DATE OF THE AGREEMENT
Both parties have agreed that this agreement will commence on the last signature and shall remain in force for the period of three years thus 23rd April 2010 to and inclusive 22nd April 2013
4.0 SCOPE
This agreement shall apply to permanent employees on limited duration contracts of more than 12 months (PL) and on unlimited duration contracts (PO) in the category of Operative (CP), Clerical Technical (CT), Skilled (CS), Junior Staff (CJ) or other under fixed term contracts of more than 12 months, but excluding Top Staff and Senior Staff. This same group of employees also constitutes the Bargaining Unit of the Trade Union.
5.0 INTERPRETATION
(a) In this Agreement, unless the context or any other written law in force, otherwise requires;
Board of Director” means the Board of Directors of TPC LTD,
“Dependant” means husband/wife of an employee and unmarried children who are living with the employee and who are not above 18 years of age
“Employer” means TPC Limited,
“Employee” means an individual who has entered into a contract of employment with TPC Limited and he/she falls within the bargaining unit of the trade union,
“Field Branch” means TASIWU office established by ten or more members of registered trade union employed at the workplace,
“OSHA” Occupational Health and Safety Act, 2003
(b) Unless specifically provided, words used in this agreement shall be interpreted in terms of the applicable labour laws.
(c) The agreement is recorded in both languages (English and Kiswahili) and in case of different interpretation, the English version shall prevail.
6.0 WORKING HOURS AND OVERTIME PAYMENT
6.1 Employees who shall be required to work for more than 45 hours a week shall be entitled to overtime payment in accordance with the Labour Laws in force
6.2 In a situation where circumstances and nature of the job compels, overtime can exceed 50 hours in a month and an employee shall be paid accordingly
6.3 If the employee works on public holidays specified in the Public Holidays Act or works during the employee’s weekly rest day, the employer shall pay the employee double of his/her hourly basic wage for each hour worked on that day
6.4 All overtime hours shall be captured in the computerized system (at present - Canepro) and paid by the employer together with the next month salaries subject to statutory deductions
7.0 RECRUITMENT
7.1 The company’s Human Resources Management philosophy is built on principle belief that human resource is the most important asset of the company and that all recruitments shall be carried out as per the company recruitment procedure and shall abide to a non-discrminatnation in terms of race, colour, religion, tribe, marital status, sexual preference or physical disability.
7.2 Every newly recruited employee shall be subjected to a minimum probationary period of six months during which their work performance and general conduct shall be closely monitored and assessed. This period may be extended if in the opinion of the management it is deemed desirable. Probation period shall not be extended for more than two occasions.
7.3 An employee shall be eligible for confirmation to his position on satisfactorily completion of his/ her probationary period, unless prior communication was made to indicate the contrary.
8.0 EMPLOYEES TRAINING AND DEVELOPMENT
For motivational purposes and for improved performance, the employer will continue to provide education, technical and professional training to employees as per company training policy to ensure that they master their job, and fully release their creative potentialities in contributing to the attainment of the Company’s goals and objectives embodied in it’s Vision and Mission statements.
9.0 ACTING ON VACANT POSITION
If an employee is acting on a vacant post for a period of six months or more, he or she has the right to ask the company to confirm her/his position. The company then has an obligation to reply within two weeks with good reasons in case such an appointment will not be confirmed. Should the company fail to respond within prescribed time he/she will be automatically confirmed to the position.
10.0 LEAVE
10.1 Annual Leave
(i) Every employee reckoning at least 12 months’ continuous service with the company shall be eligible to 28 calendar day’s annual paid leave. The employer and employee shall jointly agree as to the period(s) when such leave will be taken. Annual leave is neither cumulative nor payable in lieu of.
(ii) Children at the ages of three (3) and five (5) years shall be paid half the adult leave fare. Those at the age of six(6) to eighteen (18) years shall be paid full adult leave fare. No leave fares shall be payable by the company to children below three (3) years or above 18 years.
(iii) Subject to (i) and (ii) above every employee taking annual leave shall be eligible for full rate travel return fare once every two years together with his/her dependants (wife/husband and up to 4 children) to the place of domicile. Fare payable shall be the market rate prevailing at the time as established by the Company for non-executive bus fares. Employed spouses of employees shall not benefit from leave fare.
(iv) An employee with his/her spouse both employed by the company shall not benefit from leave travel fares more than once every two years. Children whose parents are employed by the company shall not benefit from leave travel allowance more than once every two years.
10.2 Maternity Leave
(i) In case of Maternity leave, an employee shall be entitled to a maximum of 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. Maternity leave shall be for a maximum of 4 terms per female employee.
(ii) A female worker required to work in the fields per measured task (Kipimo) shall, on reaching 7 months of pregnancy, have a day’s workload reduced to half the normal job requirement. In case her medical condition does not allow her to work, she may take maternity leave as provided for in 10.2.(i) above.
(iii) A female employee shall be allowed two hours per day to breast-feed her child who is at the place of work, or else she should be allowed to leave her place of work two hours earlier for the same purpose, for a period of 18 months after delivery.
(iv) Subject to the recommendation of the Medical Practitioner, A pregnant female employee shall be exempted from night shift work on reaching 6 months’ pregnancy and for a period of 18 months after delivery.
(v) The employer is only obliged to grant paid maternity leave every 2 years for a maximum four (4) terms of maternity leave per female employee.
10.3 Paternity Leave
Where a wife of an employee has delivered a baby, the father of the child will be given paternity leave of 3 days to take care of the mother and the child within 7 days of the birth of the child.
10.4 Sick Leave
Every Junior staff and below shall be entitled to three (3) months sick leave on full pay and if the sickness persists, three (3) months’ sick leave on half pay in case of serious illness requiring hospitalization or rest following hospitalization. If an employee is still sick and the employer decides that he cannot resume work after having benefited from six continuous months’ sick leave (three months’ sick leave on full pay and three months’ sick leave on half pay) then his/her employment shall be terminated on grounds of illness.
10.5 Compassionate Leave
On the death of father or mother, wife or husband, own children, siblings and in-law parents of a Junior staff and below, the employee will get 7 days leave with pay for mourning.
10.6 Leave without Pay
Leave without pay shall only be granted under the following circumstances:
(i) Where a female employee is not entitled to maternity leave but has delivered or is about to deliver a child.
(ii) Where the employer decides to grant leave without pay at his own discretion.
11.0 OCCUPATIONAL HEALTH AND SAFETY
11.1 Uniforms and Protective Gears
The current practice concerning uniforms and protective gears, as per the company Health, Safety and Environmental Policy and the Occupational Health and Safety Act 2003 shall continue. All the times, the union shall support management in the course of enforcing wearing and use of uniforms and protective gears.
11.2 OSHA Compliance
Management and Trade Union shall organize regular inspections to ensure that the company complies to the OSHA requirements.
11.3 Compensation of Occupational Disease, Incapacity and Death
If it occurs an employee’s health is affected by his /her work environment or contracts any occupational disease during and from the work environment, or an employee is injured or dies in the course of his work or accident at the employer’s premises, the employer shall compensate the employee as per the Workers Compensation Act or applicable Insurance Policy to that effect.
12.0 ALLOWANCES
12.1 Per Diem, On-transit and Out of Station Allowance
Per Diem (subsistence allowance), On-Transit Allowance and Out of Station Allowance shall be paid at the following rates per day;
| Towns Category | Junior Staff (CJ) Per Diem |
Skilled (CS) Per Diem |
Clerical Technical (CT)
Per Diem |
Operatives (CP)
Per Diem |
All categories
On-Transit Allowance |
All categories
Out of Station Allowance |
| City
Municipality & Regional HQS District HQS Townships Nairobi (Drivers) |
50,000
35,000 25,000 17,000 50,000 |
40,000
25,000 18,000 13,000 40,000 |
30,000
18,000 13,000 12,000 30,000 |
25,000
16,000 12,000 10,000 25,000 |
5,000
5,000 5,000 5,000 6,000 |
35,000
35,000 25,000 25,000 35,000 |
Per Diem and out of station allowances are paid when the employee has to spend the night out of station. An employee being paid per diem and out of station allowance will not be paid overtime during his/ her trip out of station. On transit allowance is paid to an employee who is on the road for more than 6 hours continuously to and from his destination in order to purchase food/ drinks on the way.
12.2 Health Hazard Allowance
Employees required to work under hot and hazardous environment, will be entitled to the allowances mentioned below;
| Job Category | Amount per Day (Tshs) |
| Evaporator Tube Cleaners
Herbicide and Insecticide Sprayers Toilet Cleaners Cane Burning Climbers above 6 m Operator DM Plant |
700
700 400 500 700 700 |
12.3 Night Shift Allowance
Employees who shall be required to work on night shift from 14:00hrs to 22:00hrs and between 20:00hrs to 06:00hrs shall be paid Night Shift Allowance of six (6 %) of an employee’s daily salary rate.
12.4 Standby Allowance
The employer shall pay an employee placed on standby 6% of his/her daily rate as per the conditions stipulated in the company policy/procedure
12.5 House Allowance
Junior Staff and below who are not provided with housing accommodation will receive a housing allowance amounting to 15% of their monthly basic salary.
12.6 Lunch Allowance
Employees who travel to Moshi and Arusha on official duties and who happen to be in the aforementioned city/municipality during lunch hours between 11:30am and 2:00 pm shall be provided with lunch allowance of Tshs 4,500/= and shall be subject to the approval of their Head of Department.
12.7 Meal Coupon Allowance
Any employee, who shall be required to work continuously for 10 hours, shall earn a meal coupon or be, paid meal allowance of equivalent value. The value of such coupon shall be set by Management from time to time, depending on food rate applicable in the estate canteen. Currently applicable rate is Tshs. 1,000
12.8 Leave Allowance
Every employee allowed for annual paid leave shall be entitled to leave allowance of Tshs.15,000/= once per leave cycle.
12.9 Sitting Allowance
Sitting allowance to Union representatives will be paid as follows:
(i) Consultation (quarterly meeting) between management and branch field is Tsh 30,000/- for the whole duration of the consultation
(ii) Annual wage negotiation meeting (once per annum)Tsh 60,000 for the whole duration of the negotiation
(iii) Collective Bargaining Agreement (after three years) Tsh 90,000 for the whole duration of the negotiation
This allowance will be paid as from the 2010 CBA and wage negotiations.
13.0 MEDICAL SERVICES
13.1 Medication at Work
(i) An employee and his/her dependants shall be entitled to free medical treatment at the company hospital and any government or referral hospital in Tanzania as they may be referred to by the TPC Medical Officer
(ii) Children above 18 years but under 21 years who are still attending school will fall under dependant category under this clause
(iii) An employee’s parents living with him/her at TPC will be entitled to free medical treatment at TPC hospital.
13.2 Medication on Leave
An employee/dependant who falls sick while on duty or on leave outside TPC shall be entitled to a refund of medical treatment costs at a government / referral hospital. A refund shall be affected upon submission of original documents duly approved by TPC management.
14.0 RETIREMENT
This clause on retirement shall apply to employees with permanent open duration contracts (PO) only.
14.1 Retirement Age
Junior Staff and below employees will retire at the age of 55 years. Retirement notice shall be not less than 30 days or payment of one month salary in lieu of notice. At management discretion, notice may be given at any time between January and November of the given year. The company shall compulsorily retire its employee in the month of December every year. A retired employee required for further employment might be employed on a limited duration contract, based on the organization requirements.
14.2 Retirement Benefits
Retiring employees will be given the following retirement benefits over and above statutory retirement benefits except for repatriation which is spelt out under Clause 19 below:
(i) One bag of 50kg of sugar;
(ii) Retirement ex-gratia payment:
| Years of service | Formula |
| 15 or less
More than 15 but less than 25 25 and above |
0.73 W * N
0.83 W * N 0.93 W * N |
W = Last monthly basic Wage
N = Number of years of Service
15.0 REDUNDANCY/RETRENCHMENT
For the purpose of this agreement, retrenchment / redundancy means a termination of employment based on operational requirements such as economic, technological, structural or similar needs of the employer. Employees retrenched or made redundant for any reason including the above reasons will be paid the following retrenchment benefits over and above statutory retirement benefits except for repatriation which is spelt out under Clause 19 below:
(i) Retrenchment ex-gratia payment of 1.75 month salary for each year of service
(ii) One bag of 50kg of sugar.
16.0 DEATH AND FUNERAL
16.1 Death and Funerals Benefits
(i) The company will be responsible for payment of shroud, coffin and cost of transportation of the body of a deceased employee or a deceased dependant in the Kilimanjaro Region. A dependant will be restricted to husband/wife of an employee and unmarried children who are living with the employee and who are below 18years of age,
(ii) Children above 18 years but under 21 years who are still attending school will fall under dependant category under this clause.
(iii) Transportation of the body of the deceased employee or of the dependant outside the Kilimanjaro Region will be taken care by Maafa Fund,
(iv) If a Junior Staff and below employee dies through any other cause apart from accident at work or when travelling to work while still in employment with TPC, the employer will pay his family Tsh.200,000/= plus a bag of sugar (50kgs) as condolence allowance. If an employee’s dependant as defined above dies, the employer shall pay condolence allowance of TZS 120,000 plus a bag of sugar (50kgs) to the bereaved family,
(v) A Junior Staff and below employee dying of an accident at work will have his/her body transported by the employer. The bereaved family will get Tsh.500,000/= plus a Bag of Sugar (50kgs) as condolence allowance.
(vi) The Company will grant permission to three (3) employees to escort the body of an employee deceased in service to his home village whether he or she has relatives or not,
(vii) In case of Junior Staff and below employees’ death in service, his or her family through appointed estate administrator will get the benefits as retirement benefits as per clause 14.1.2.
16.2 Maafa Fund
(i) The employer in collaboration with trade union shall consolidate the Maafa (calamity) Fund
(ii) The employer shall contribute a supportive amount of Ths.600,000/= to the Maafa fund every month
17.0 TERMINATION ON MEDICAL GROUNDS
An employee whose employment is terminated on medical grounds shall be paid retirement benefits according to clause 14.1.2 of this agreement.
18.0 TERMINATION ON DISCIPLINARY GROUNDS
An employee whose employment is terminated on disciplinary grounds shall be paid terminal benefits as per the Employment and Labour Relations Act No 6 2004 and the Code of Good Practice.
19.0 REPATRIATION ON TERMINATION OF EMPLOYMENT
19.1 Employees, whose employment service is terminated on any ground other than termination as a result of disciplinary action and absconding/personal resignation from service shall be eligible to be paid one way fare ticket for him and his / her dependants and transportation of personal effects /luggage to place of domicile as follows;
| Employee Category | Tones Luggage |
| Junior Staff
Skilled Clerical and Technical Operatives |
3
3 3 2 |
19.2 Employees terminated on any disciplinary grounds shall be paid repatriation cost as per the applicable labour laws. No repatriation cost shall be payable to an employee who resigns or abscond from service.
20.0 LAY-OFFS
(i) It has been agreed that whenever it becomes necessary to lay off some of the employees, the employer shall, in writing, submit to the General Secretary of the Union and copied to the Local Branch, such intention, three months before the lay-off.
(ii) Upon consultation and agreement with the union, employees subject to the lay-off exercise shall be informed in writing of the exercise starting categorically whether they will be paid or not during the period they will be off the job and the duration of such lay-off.
(iii) It has been agreed that the lay-off duration should not exceed six months, otherwise the company and the union shall have to revisit the situation and decide on the future of the whole matter. If the situation does not improve, the laid-off workers shall be regarded as redundant as per clause 14.2 above.
21.0 BEST WORKERS AWARDS
(i) There shall be best workers from each designated section, departments and the company overall best worker as per selection of best workers procedure. The criteria and procedure for selection of best workers shall be reviewed from time to time by management and the trade union.
(ii) Above mentioned best workers will be awarded certificates from the Company (employer) and from their respective Trade Unions.
(iii) A worker who receives an award at national level, presented by the nominated guest of honour, will receive a certificate plus Tshs.1,000,000/=
(iv) The employer will award each selected best worker of the designated section a certificate plus Tshs 70,000/=. Selected best worker of the designated department will be selected to represent the company in the regional May Day celebrations. Each of these departmental best workers will receive a gift of Tshs 200,000/=.
(v) The employer will display the names and photographs of the best worker from each department, on a “Board of Honor” to be erected in their honor.
22.0 PROFIT BONUS
On every profit financial year, the employer shall pay his employees a bonus incentive of 2.5 % of profits realized (profit before tax). This bonus shall be paid to all employees within the trade union bargaining unit who participated fully to the financial year (between 1st July to 30th June).
22.1 Eligible Employees
(i) Those who have been absent from work for valid reasons during the financial year.
(ii) Those who have been on sickness absenteeism for a maximum of 26 working days during the financial year.
(iii) Those who have been out of the estate on company initiated training for one year and above.
(iv) Those who have been served with two written warnings or less during the financial year.
22.2 Non-Eligible Employees
(i) Those who have been absent from work without valid reasons during the financial year.
(ii) Those who have been on sickness absenteeism or other absenteeism excluding company initiated training for more than 26 working days during the financial year.
(iii) Those who have been served with three written warnings or more during the financial year.
The profit bonus will be paid at the end of the month of December following the financial year.
23.0 LOANS
The company under special agreement with TPC SACCOS may grant a soft loan to TPC SACCOS for the purpose of school fees and other loans that will enable individual employee to seek loans from SACCOS. The company may also facilitate individual loans through commercial banks under special agreement.
24.0 PURCHASE OF SUGAR AT FACTORY PRICE
Employees shall be allowed to purchase a maximum of 25 kgs bag of sugar at factory price every two months. Employees who wish to purchase sugar at factory price shall be registered through a prescribed form to allow proper capturing in the computerized system (at present - Canepro).
25.0 TRANSPORT SERVICES
(i) The employer shall provide transport to and from work to all its employees living more than 5 kilometers from the closest point along TPC - Moshi road to their place of work. Transport will be provided along the Kiboroloni – Moshi - TPC route only. The furthest point from which transport will be provided is Kiboroloni.
(ii) The Company will set up a fund equivalent of the value of 100 bicycles per year to provide bicycle loans to employees. The selection of employees who will benefit from the said loan will be guided by the company’s bicycle loan procedure.
(iii)
(iv) The company will give loans for 15 bicycles per year for each Field Area for a period of three years to be loaned to irrigators, gatemen and irrigation controllers. The employees benefiting from the loans will be required to pay back 75% of the loan over a period of one year. Loaned bicycles will be used for private and official purposes. No re-allocation shall be made if the bicycle is lost or stolen and an employee shall remain responsible for an outstanding loan for the remaining repayment period.
26.0 APPLICATION OF TANZANIA LABOUR LAWS
For any other aspects that have not been specifically covered by this agreement or the Recognition Agreement, the Tanzanian Labour laws shall apply.
27.0 AMENDMENTS OF THE AGREEMENT
(v) The parties may amend this agreement by agreement provided that no amendments will have any force or effect unless it is in writing and duly signed by both parties.
(vi) The party seeking to amend this agreement shall put forward its proposed amendments in writing to the other stating the nature, extent and reasons for the proposed amendments.
(vii) Negotiations concerning proposed amendments shall commence as soon as reasonably possible after receipts of the request to negotiate the proposed amendments to the agreement.
28.0 TERMINATION OF THE AGREEMENT
This agreement may be terminated if one of or the following circumstances occur;
a) The Recognition Agreement is terminated
b) After three years from date of last signature
c) Deregistration of the trade union
d) By order of the court
IN WITNESS OF this agreement the parties to the agreement signed as herein below this 23rd Day of April 2010 at Moshi.
FOR and ON BEHALF OF TPC LIMITED
| S/NO | NAME | DESIGNATION | SIGNATURE |
1 2 3 |
Robert BAISSAC Jaffari ALLY Marius JACOBS |
CHIEF EXECUTIVE OFFICER CORPORATE SERVICES EXECUTIVE OFFICER FINANCE EXECUTIVE OFFICER |
FOR and ON BEHALF OF TASIWU
| S/NO | NAME | DESIGNATION | SIGNATURE |
1 2 3 4 |
Christopher N. NAKUHWA Omary B. MACHONGWE Bilal O. JUMA Mbonea J. MNZAVA |
GENERAL SECRETARY ZONAL SECRETARY, NORTHERN ZONE BRANCH FIELD CHAIRMAN BRANCH FIELD SECRETARY |
