REPUBLIC OF ZAMBIA
***********************
COLLECTIVE AGREEMENT BETWEEN CAVMONT BANK LTD AND ZAMBIA UNION OF FINANCIAL INSTITUTIONS AND ALLIED WORKERS - 2015
THIS COLLECTIVE AGREEMENT IS MADE THIS DAY 21 OF APRIL TWO THOUSAND AND FIFTEEN BETWEEN CAVMONT BANK LTD A COMPANY INCORPORATED UNDER THE COMPANIES ACT 1994 OF THE LAWS OF ZAMBIA AND HAVING ITS REGISTERED OFFICE SITUATED AT THE PIZIYA HOUSE, PLOT 2374, THABO MBEKI ROAD IN LUSAKA PROVINCE OF THE REPUBLIC OF ZAMBIA (HEREINAFTER REFERRED TO AS “THE BANK”) OF THE ONE PART AND ZAMBIA UNION OF FINANCIAL INSTITUTIONS AND ALLIED WORKERS REGISTERED UNDER THE INDUSTRIAL AND LABOUR RELATIONS ACT NO. 27 OF 1993 AND HAVING ITS REGISTERED OFFICE SITUATED AT LUANGWA HOUSE, CAIRO ROAD, LUSAKA AFORESAID (HEREINAFTER REFERRED TO AS “THE UNION”) OF THE OTHER PART. WHEREAS PURSUANT TO THE MEMORANDUM OF THIS RECOGNITION AGREEMENT MADE BETWEEN THE PARTIES TO THIS AGREEMENT AND MADE ON THE 4th OF NOVEMBER 2004, THE BANK RECOGNISED THE UNION AS THE REPRESENTATIVE AND EXCLUSIVE BARGAINING AGENT OF THE BANK'S ELIGIBLE EMPLOYEES FOR THE PERIOD SPECIFIED AND UPON THE TERMS AND CONDITIONS CONTAINED THEREIN. AND WHEREAS THE SAID MEMORANDUM OF RECOGNITION AGREEMENT IS STILL IN FORCE AND BINDING UPON THE PARTIES TO IT AND THAT COLLECTIVE NEGOTIATIONS AND AGREEMENT BY THE SAID PARTIES ON THE ASPECTS HEREUNDER SPECIFIED HAVE BEEN CONCLUDED BETWEEN THE BANK AND THE UNION.
(A) DURATION OF COLLECTIVE AGREEMENT
The tenure of (his Collective Agreement shall be thirty (30) months effective 1st January 2015 to 30th June 2017. ( Note: The additional Six months has been added to Twenty Four months for purposes of a smooth transition following the gap created by the re¬alignment of the financial year which previously covered the period, January to December each year), therefore, the life of this Collective Agreement shall be in force from 1st January 2015 to 30th June 2017 after which we shall revert to the usual twenty four months agreement.
However the provisions pertaining to salary and general allowance shall be effective 1st January 2015 to 30th June, 2016 and subject to review every 12 months (one year). The effective date for all allowances is 1st July 2015. It is agreed in principle that half of the increment of lunch /dinner and the salary be effective from January, 2015 up to 30th June, 2015. Then the full amounts of increments should be applied effective 1st July, 2015.
(B) VALIDITY OF THE AGREEMENT
Notwithstanding the provisions of Clause (A) above, this Agreement may be amended by mutual consent, subject to three months notice being given by either party.
1) OBJECTIVE
It is hereby realised that the advancement of employees and indeed their livelihood depends on the success of the Bank. The Bank therefore expects its employees to manifest loyalty and devotion and to maintain a set standard of efficiency through hard work. On its part the Bank shall: -
(a) Be concerned with the well being of all its employees by determining an equitable remuneration structure in the light of prevailing circumstances.
(b) Ensure full implementation of clauses agreed upon by both parties.
(c) Strive to improve morale and industrial relations with a view to increasing work output and performance.
2) DEFINITIONS
(a) Employee:
Means any employee of Cavmont Bank Limited hereinafter referred to as the Bank to which these conditions relate.
(b) Registered dependant means:
(i) Spouse; and
(ii) An employee's own children up to the age of 21 who are still financially supported by and dependant on and or living with the employee up to a maximum of six (6) inclusive of legally adopted children up to the age of 21 still financially supported by and dependant on and or living with the employee, who have been so duly registered as the employee’s dependants with the Bank.
(c) Redundancy
Means a situation which may arise whereby the post of an employee may become surplus to the Bank's requirement.
3. EMPLOYEE OBLIGATIONS
The employee shall: -
(a) At all times competently, faithfully and diligently perform such duties as the Bank may from time to time require and shall, to the utmost of his/her ability endeavour to promote the interests of the Bank.
(b) Obey and comply with lawful orders and directives given by the Bank or its Board of Directors or such persons as the Bank may place over him/her and shall faithfully observe all rules of the Bank for the control and good conduct of its employees
(c) Be considered to be an employee of the Bank for the duration of his/her.— employment and shall so be obliged.
(d) Work in such places in Zambia or abroad as the Bank may from time to time direct as long as the conditions of service under locally contracted shall continue to apply in addition to the ones applicable abroad.
(e) Inform the Bank of all changes in the size of his family i.e. marriage, births, deaths for the purpose of amending his/her record.
(f) Sign a Declaration of Secrecy document.
4. CONDITIONS OF EMPLOYMENT
(a) MEDICAL EXAMINATIONS
All employment will be in accordance with the Bank’s conditions and will be at the discretion of the Bank and subject to: -
(i) Undergoing and passing Medical Examinations conducted by a competent Medical Officer approved by the Bank.
(ii) Producing a satisfactory Medical Certificate on the form prescribed by the Bank from a recognised Medical Practitioner.
(iii) The cost of Medical Examinations shall be borne by the Bank.
(b) PROBATIONARY PERIOD
(i) All staff will be required to serve six months probationary period with the Bank before confirmation. However the Bank reserves the right to extend or reduce the probationary period. During this period, either party can terminate services by giving one day’s notice.
(ii) In the case of unsatisfactory probationary period, the Bank shall reserve the right to either terminate the employment or extend the probationary period and this will be communicated to the employee concerned.
(iii) Where an employee serving on probation does not receive either a letter of confirmation or extension of probationary period upon expiry of six (6) months’ period he/she shall-be considered confirmed after two weeks of such expiry where the position is vacant.
(c) TERMINATION OF EMPLOYMENT
(i) Normal Termination of Employment
After confirmation of appointment, employment may be terminated by either party giving the other 30 calendar days notice in writing or payment of one month’s salary in lieu thereof, subject to the provisions of the Employment Act beingfulfilled.
(ii) Death/Liquidation
Contract of Service shall be considered terminated upon death of an employee or liquidationof theBank.
(d) SALARY, ANNUAL INCREMENTS AND ADVANCES
Basic Salary shall be reviewed every 12 months Notch Increments
Notch increments will be dependant on New Balance Score Card Performance Management System which will apply to all employees across the board on management’
(i) It should be noted that:-
1) A stoppage of annual increment shall be communicated to the officer subject to a further review within a period of twelve months.
2) Where an employee reaches a salary scale ceiling, the notch increments will continue to apply in the normal way.
3) The Bank’s official payday shall be the 23rd day of each month or the last working day before the 23rd.
(ii) Mid-Month Pay
Mid-Month pay shall be on the seventh 7th working day of each month at a maximum of 25% of ones basic salary.
(iii) Salary Advance
An employee may be granted a salary advance in exceptional circumstances to assist him/her meet obligations of an urgent nature. This is recoverable in four (4) equal installments. Where the amount exceeds the required minimum ratio as prescribed by the loans and advances policy, the employee shall be considered for a Short-term personal loan (subject to meeting the ratios and availability of funds) recoverable in four equal installments. In such instances, the ruling interest rate for personal loan shall apply.
(vi) Rental Advance
Rental advance may be granted at management's discretion to all eligible employees to assist them pay rentals for periods ranging from three (3) to six (6) months and shall be recovered in equal monthly Installments.
(e) ALLOWANCES
(i) Acting Allowance
Acting allowance shall be paid to an officer who acts in a higher position for 30 consecutive days. However, Management will use its discretion for an Officer acting for a period less than 30 consecutive days but more than15 days. The first 14 days shall be considered as training if it is the first time of acting in that particular position and thereafter the rate of the allowance shall be the difference between his/her salary and the first notch in the substantive holder’s salary grade or 12% of the monthly salary of the person acting whichever is higher.
On straight promotion the employee will be entitled to the difference between the salary of the person being promoted and the entry point of the new grade of promotion or 15% of the monthly salary of the person being promoted whichever is higher. This may be paid as an allowance until acting period comes to an end and will drop if acting is unsuccessful. However, when acting is successful this will be incorporated into the salary and becomes salary of promotion.
Responsibility allowance shall be paid to an officer who is given extra responsibility or combines his/her duties with those of another role in the same grade or where an officer is required to act in a higher grade but does not possess the basic professional qualifications to act in the higher position. The duration has to be 30 consecutive days. This will be at the rate of 5% of the monthly salary of the person carrying out additional responsibility.
In all cases with regard to acting, promotion and extra responsibility the official must be notified—in writing. Acting allowance and responsibility allowance will be paid at the end of the successful acting tenure or upon successful execution of extra responsibilities.
(ii) Medical Scheme
The Bank shall pay a monthly sum of K130-00 as 50% towards the cost of a nominated medical scheme for the benefit of employee, spouse and child, limited to four children up to the age of 21 years. The balance of the cost in
the sum of K130-00 shall be borne by the employee in equal share. Any subsequent increment in the cost of the nominated medical scheme shall likewise be borne in equal share between the Bank and the employee,
(iii) General Living Allowance
General Living allowance shall be K600-00 per month. This allowance will form part of the take home pay.
(iv) Upset Allowance
(i) An employee who has been transferred from one station to another shall be paid an Upset allowance of 7.2% of one’s annual basic salary to enable him/her meet the cost of settling down at the new station.
(ii) The Bank shall meet the cost of transportation of household goods and personal effects of the employee and his/ her family.
Where accommodation is not available on transfer, the Bank shall pay the full bill for Hotel/Motel accommodation for 30 calendar days of its employee upon being transferred to a new station.
(iii) Traveling on Duty
For members of staff traveling overnight on authorized bank business away from their normal station there shall be three (3) options to choose from: -
Accommodation paid by Bank (full board)
The Bank shall pay for accommodation and meals at the Hotel/motel of its choice. Accommodation entitlement shall be based on the employee’s grade.
2) Accommodation paid by Bank (without meals)
Under this option the Bank shall provide accommodation at a Hotel/Motel of its choice. Breakfast, Lunch and Dinner therefore shall be applied as follows; -
a) Supervisory - K310-00 per day
b) Clerical Grades - K300-00 per day
c) Non- Clerical grades - K280-00 per day
(v) Subsistence (Night) Allowance
Own arrangements for accommodation and meals shall be paid as follows:-
(a) Supervisory grades - K 380-00 per day
(b) Clerical grades - K340-00 per day
(c) Non-Clerical grades - K290-00 per day
(vi) Lunch Allowance.
Lunch allowance shall be paid as follows:
a) A member of staff authorized to work through lunch hour from Monday to Friday shall be paid K47-00
b) A member of staff on official journey outside station that takes a minimum of three hours and lunch time finds them still on the way shall be paid K47-00
c) A member of staff that works on non-working Saturdays, Sundays and Public holidays beyond lunch hour shall be paid K47-00
(vii) Dinner Allowance
Dinner allowance will be paid as follows:
a) A member of staff who works beyond 19:00hrs with prior Management authority shall be paid K47-00
b) A member of staff who is on official journey that takes a minimum of three hours (outside station) and dinner finds them still on the way shall be paid K47-00
(viii) Bank Transport or Taxi Fares
Bank transport or taxi fares to employees’ place of residence will be provided as follows.
(a) For eligible employees who have no option but to work on non working days.
(b) For eligible employees who are made to work beyond 19:00hrs with prior management authority.
(c) For eligible employees who will be required to report for work at 24:00hrs these will be availed with transport/taxi to and from home to work. This category of staff will be operating in the call centre and arrangements for transport will be made weekly.
However, from 1st May each year to 31st July each year eligibility to a taxi will be at 18:00hrs whilst from 1st August each year to 30th April each year eligibility for a taxi will be at 19:00hrs. (This will only apply to a and b above.)
(ix) Shift Differential
Members of staff who are engaged in shift work will be paid dinner allowance of Kwacha forty (K47-00) per day in lieu of shift differential provided that such occupation shall come between 19:00hours to 06:00hours.
(vii) Other allowances.
The following allowance will be paid to the category of members of staff specified as hereunder in lieu of overtime.
(a) Call Centre - K450-00 per week.
(f) HOURS OF WORK AND OVERTIME
(i) Hours of work shall be from 8:00 to 17:00 and a flexi hour (where business needs exist) is the same number of hours worked between 6:00 and 19:00. In both cases the normal working week will be restricted to (44) hours or one hundred and seventy six (176) hours per average month inclusive of working Saturdays. Hours in excess of eight hours per day shall constitute overtime.
(ii) The first and last Saturdays of each month are working days and employees shall be required to work for four (4) hours on these days. These Saturdays shall therefore be treated as working days (deductible from earned leave) when processing leave.
(iii) From Monday to Friday, employees shall be required to work for eight (8) hours with one (1) hour being taken as lunch break.
APPENDIX
Appendix A: Salary Structure effective 1st January, 2015
Salaries (are exclusive of Medical allowance)
| POSITION | ENTRY POINT PER ANNUM | MAXIMUM PER ANNUM |
Cleaner/Messenger-Essential Services 1 ES 1 - 2 |
58,444.99 | 72,414.56 |
| Telephone/Receptionist - Generalist G1 | 59,388.81 | 77,509.23 |
| Typist - Generalist G1 | 54,788.85 | 73,540.33 |
| Drivers - Essential Services 3 ES - 3 | 59,545.31 | 75,678.77 |
clerical - Retail Banking 2 or Generalist 2 RB2/GL2 |
60,427.35 | 84,212.43 |
supervisory Level - Retail Banking 3 or Generalist RB3/ GL3 |
62,333.80 | 91,888.00 |
| Stenographer - Generalist 2 GL2 | 61,645.31 | 78,148.39 |
| Secretary - Generalist 3G3 | 66,594.52 | 87,048.00 |
| Specialist GradeSP1 | 62,333.80 | 91,888.00 |
DISCIPLINARY PROCEDURE - CODE OF DISCIPLINE
Refer to the disciplinary and Grievances code agreed upon between the Union and the Bank.
IN WITNESS WHEREOF WE HAVE HEREUNDER SET OUR HANDS THIS 21st DAY OF APRIL THE YEAR TWO THOUSANDS AND FIFTEEN.
For and behalf of Cavmont Bank Ltd
- MANAGING DIRECTOR
- CHIEF FINANCIAL OFFICER
- ACTING HEAD - HUMAN RESOURCES
- CHAIRMAN OF THE NEGOTIATIONS
For and on behalf of Zambia Union of Financial Institution and Allied Workers
- GENERAL SECRETARY - ZUFIAW
- DELEGATION LEADER - ZUFIAW
- BRANCH UNION CHAIRMAN
- BARGAINING UNIT SECRETARY
16th February, 2015
The Head -Human Resource Cavmont Bank P.O Box 38474 LUSAKA
The General Secretary,
Zambia Union of Financial Institutions and Allied Workers
P.O Box 31174
LUSAKA
Dear Sir/Madam,
RE: APPLICATION FOR EXTENSION OF COLLECTIVE AGREEMENT
Following your application to extend the existing collective Agreement, I am pleased to inform you that the Honorable Minister has approved the extension of your document.
This is in accordance with the provision of section 73 (1) of the Industrial and Labour Relation Act, Cap 269 of the Laws of Zambia.
Kindly note that the extension is for 90 days effective 1st January to 31st March, 2015.
Yours faithfully.
Labour Officer
For/ LABOUR COMMISSIONER
