COLLECTIVE AGREEMENT BETWEEN THE ZAMBIA PUBLIC PROCUREMENT AUTHORITY AND THE ZAMBIA UNION OF FINANCIAL INSTITUTIONS AND ALLIED WORKERS - 2015

PREAMBLE

This Collective Agreement is made-on the sixteenth day-of October two thousand' and Fifteen between the Zambia Public Procurement Authority established under the Public Procurement Act No. 12 of 2008 and having its; offices situated at Procurement House, Off Alick Nkata Road, Lusaka in the; Republic of Zambia (hereinafter called “the Authority") and the Zambia Union of Financial Institutions and Allied Workers registered under the Industrial and Labour Relations Act Cap 269 of the Laws of Zambia and having its registered office situated at Luangwa House, 1st Floor, Cairo Road, Lusaka foresaid (hereinafter called "the Union").

Whereas pursuant to the Memorandum of Recognition Agreement made between the parties to this agreement and made on the third day of April two thousand and one, the Authority recognises the Union as the representative and exclusive bargaining agent of the Authority’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 on the aspects hereunder specified have been concluded between the Authority and the Union.

Whereas the Authority has agreed to award new salaries and conditions of service, the Union on their part agree to promote actions to raise efficiency through hard work, dedication and loyalty to the Authority.

A) Duration of the Collective Agreement

The tenure of the Collective Agreement shall be two years effective from the first day of January two thousand and fifteen. However, the provisions pertaining to salary and allowances shall be subject to review every year.

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

SECTION ONE: GENERAL

1.0 General

1.1 Authority

This Collective Agreement is governed by the industrial and Labour Relations Act Cap 269 of the Laws of' Zambia [hereinafter called 'The Act') and any amendments thereto,

The interpretation of the term and conditions shall be as per this Collective Agreement

1.2 Interpretation

‘Act' means the Industrial and Labour Relations Act.

‘Authority' means the Zambia Public Procurement Authority established by the Public Procurement Act No. 12 of 2008 of the Laws of Zambia.

‘Bargaining Unit' means at the level of the Authority the negotiating team representing Management together with the Trade Union representatives in the Institution.

‘Basic salary' means the salary specified in the letter of appointment or as may be notified by the employer from time to time.

"Collective Agreement" means an agreement negotiated by an appropriate Bargaining Unit on which the terms and conditions affecting the employment and remuneration of employees are laid down.

‘Dependant' means up to four (4) registered children who are the employee's biological offspring, step-children or adopted children in accordance with the Adoption Act, Chapter 62 of the Laws of Zambia and shall be;

(a) Under the age of 18 years;

(b) If attending a full time course of education at any school, college or university recognised by Zambia Public Procurement Authority not more than 21 years and unmarried; or

If above 21 years but not more than 25 years, physically or mentally incapacitated.

‘Effective date of appointment' means the first day the employee first reports indicated in a signed Contract of employment issued by an authorised officer of the Authority for staff on contract appointment.

“Eligible Employee” means a unionisable employee as defined in the Recognition Agreement.

‘Employee’ means any person who has entered into, or works under a contract of employment with the Authority whether such contract is expressed or implied, oral or written, or serving a probation period of employment

'Employer' means the Authority, or Manager of the Authority who is placed in authority over the persons employed.

'Parent' means an employees' natural adopted father or mother.

'Permanent and pensionable employee' means a person appointed under this Collective Agreement, confirmed, and contributes towards statutory obligations.

“Probation” means the period from the commencement of employment to: the date when the appointment is confirmed in writing to the employee by the Authority or the period specified in the contract as the probation period.

“Recognition Agreement" means an agreement as described in Part VII of the Industrial and Labour Relations Act Cap 269.

'Spouse' means an employee's husband or wife, whose marriage was solemnised under the Marriage Act, the laws of a foreign country or under Zambian customary law and is registered with the Authority.

'Trade Union' means an organisation of employees, which is registered as a trade union under the Industrial and Labour Relations Act Cap 269 and whose principal objective is to regulate collective relations between the employees and the employer or between employees and organisations of employees.

'Working days' are as defined in the Employment Act Cap 268 of the Laws of Zambia.

SECTION TWO: APPOINTMENTS

2.0 Appointments

2.1Effective Date

The effective date of appointment shall be the first day the employee first reports for work following a successful medical examination, or the date indicated in a signed Contract of employment issued by an authorised officer of the Authority for staff on contract appointment.

2.3Acting Appointments

(a) The Authority may appoint a suitably qualified employee to act in a higher post where there is a vacancy. The acting appointment shall be temporary and for administrative convenience only, pending the return or the appointment of the substantive post holder.

(b) Where a vacancy exists, an employee from a lower grade may be appointed to act for a period not exceeding six (6) months. Thereafter, he/she shall, subject to satisfactory performance, be was for administrative convenience and the employee as such at the time of appointment.

(c) When acting for administrative convenience only, the employee shall be paid an acting allowance when the acting appointment is for a

the rate of twenty (20) percent of the employee's substantive basic salary, or the difference in basic salary between the substantive post and the entry point of the higher post's basic salary grade, whichever is higher.

2.4 Termination of Acting Appointments

2.4.1 An employee who has been appointed to act shall act for the period specified in the appointment letter. The acting appointment may be terminated:

(a) If the employee is away from the office without authority for a period exceeding ten (10) consecutive calendar days;

(b) If his/her performance is deemed unsatisfactory;

(c) If he/she commits any offence warranting formal disciplinary action.

2.4.2 Provided that an employee whose acting appointment is terminated as in (a) above may be re-appointed subject to a satisfactory explanation of the employee's absence from duty.

2.5 Promotion

Management, subject to availability of vacancies, shall on the basis of the stated qualifications and criteria promote an employee to a higher grade.

2.7 Gratuity

2.7.1 The Authority shall pay gratuity to employees appointed on contract as per the terms and conditions stipulated in their contracts.

2.7.2 Gratuity shall be paid at the rate of 35% of the basic salary and shall be calculated on the basis of the period of the contract served by the employee on a pro rata basis.

2.7.3 No contract gratuity shall be paid to an employee whose contract has been terminated due to dismissal under the Authority's Disciplinary code and Grievance Handling Procedures.

2.7.4 Other Conditions

Unless otherwise stated, employees on contract shall enjoy all other conditions and benefits outlined in these conditions.

2.8 Demotion

An employee may be demoted from a higher to a lower level position on the basis of the Authority's Disciplinary Code and Grievance Handling Procedures.

2.9 Employer's Obligations

The Authority has the sole responsibility to conduct its business and manage its operations in such a manner as it shall see fit. Accordingly, the Authority Management has the right at its sole discretion to

(i) Set policy, manage its business and conduct operations which shall include determining working times, days and shift patterns, time, methods and manner of work, allocation of work and the number of employees required in any department or section

(ii) Determine that work is done in accordance with the set operational requirements and to establish the methods, speed and quality of the work to be performed;

(iii) Control and regulate the use of all systems, equipment and property of the Authority;

(iv) Select, develop and where it is deemed appropriate, to promote or demote employees to any positions within the Authority and to transfer them to any locality where it operates; and

(v) Ensure discipline and effect disciplinary measures as provided in the ZPPA Disciplinary Code and Grievance Handling Procedures.

2.10 Employee's Obligations

The employee shall at all times:

(i)Perform conscientiously, carefully and to the best of their ability, work assigned to them as per the job description and role profile thereof or any work that the Authority may require the employee perform;

(ii) Attend work as scheduled;

(iii) Obey and comply with all lawful orders given by the Authority and its officers;

(iv) Observe all the rules, regulations and arrangements of the Authority in force for the management of the Authority's systems, property or for the maintenance of health, safety and welfare and good conduct of the employees;

(v) Not, divulge any information or knowledge which they may acquire during their employment concerning the affairs or property of the Authority, in accordance with the Oath or Declaration of Allegiance except in the discharge of their duties;

(vi) Assist as required in the training and development of fellow employees; and

(vii) Be firm but fair in their dealings with clients of the Authority and treat them with respect at all times.

2.11 Working Hours

2.12 Overtime

SECTION THREE: REMUNERATION

3.0 Remuneration

3.2 Salary Advance

3.2.1 An employee shall be entitled to salary advance provided the net pay is within the threshold of 33% take home pay and shall be recovered in three (3) monthly instalments or less.

3.3 Mid-Month Salary Advance

3.3.1 An employee in grades ZPPA 6 to 10 shall be entitled to a mid-month salary by the 10th of each month provided the net pay is within the threshold of 33% take home pay and shall be recovered in full at the end of that month.

3.4 Rent Advance

An employee shall be entitled to rent advance provided the net pay is within the threshold of 33% take home pay.

SECTION FOUR: LEAVE

4.2 Leave pays Accumulation

An employee in ZPPA 6-10 shall be allowed to accumulate up to a maximum of 60 days after which any excess leave days shall be forfeited unless there is justification for such excess leave days:

4.3 Annual Leave

An employee in Salary Scales ZPPA 6-10 shall take annual leave once every year or such longer leave as approved by Management.

4.4 Annual Leave Benefit..

4.5 Unpaid Leave

4.5.1. Unpaid Leave of up to one (1) year six (6) months shall be granted to an employee who is required to go for studies.

4.6 Maternity Leave

4.7 Paternity Leave

4.8 Sick Leave

4.9 Compassionate Leave

4.10 Study Leave

The Authority shall grant study leave to an employee who is on an approved training and development activity or programme in accordance with the Staff Training and Development Policy and Procedures.

4.11 Leave Commutation

Any leave days not taken by an employee on account of not being allowed to go on leave or being recalled from leave by the Authority due to duty requirements may be commuted for a cash payment

4.11.1 The formula for calculating the commutation of the leave days for cash shall be based on the standard average daily basic salary of the employee, which is as follows:

4.11.2 The monthly basic salary of the employee divided by the standard twenty two (22) working days per month and the result shall be multiplied by the number of leave days being commuted for cash.

SECTION FIVE: CONTRIBUTORY MEDICAL SCHEME

SECTION SIX: FUNERAL GRANT

SECTION SEVEN: LOANS

7.0 Loans

7.1 Long term loans

The Authority shall facilitate without obligation, a longer-term loan, mortgage or advance by the relevant financial institution to an employee who has completed a minimum of two years' service.

7.2 Motor Vehicle Loan

All employees shall be eligible for a loan to purchase a motor vehicle.

7.2.1Eligibility

Where two or more employees apply for a motor vehicle loan, the first to apply based on the date of application shall be considered first provided

they meet the criteria.

7.27.2.2 Amount of Loan

The amount of the loan shall not exceed one and a half (1.5) times the employee's annual basic salary.

7.2.3 Repayment Period

The loan shall be repaid within four (4) years (48 months).

7.2.4 Interest

Interest on the motor vehicle loan shall be ten per cent (10%) on the principal amount

7.2.5 Loan Agreement Form

The employee shall complete and sign a Loan Agreement Form before the motor vehicle loan is disbursed.

7.2.6 Disbursement of Loan

The Authority shall at its convenience and based on administrative procedure or laid down financial regulations decide on the mode of payment of the loan amount

7.2.7 Insurance

The motor vehicle purchased with a loan shall be insured comprehensively and shall remain so until the loan is redeemed in full.

7.2.8 Disposal

The motor vehicle purchased with a loan shall not be disposed of in anyway whatsoever except with the prior written authority of the Authority,

7.3 Multi-Purpose

7.3.1 Eligibility

Where two or more employees apply for a multi-purpose loan, the first to apply based on the date of application shall be considered first provided they meet the criteria.

7.3.2 Amount of Loan

The multi-purpose loan amount shall be K75, 000.0,0 for all grades from ZPPA 6-10.‘

7.3.3 Repayment Period

The multipurpose loan is recoverable within a period of thirty-six (36) months.

7.3.4I nterest

Interest on the multi-purpose loan shall be ten per cent (10%) on the principal amount

7.3.5 Loan Agreement Form

The employee shall complete and sign a Loan Agreement Form before the motor vehicle loan is disbursed

7.4 Personal Loan

Subject to availability of funds, an employee may apply to the loans scheme and may be granted a personal loan to a maximum limit of

is recoverable within a period of ten (10) months.

7.5 Common Conditions for all loans

7.5 .1 SUBJECT TO AVAILABILITY OF FUNDS, THE AUTHORITY MAY SET UP AN Authority Revolving Loan Scheme from which it shall offer loans to its employees.

7.5.2 The employees to access the Authority Revolving Loan Scheme for loans shall require to be on contract service or on permanent and pensionable terms and for the latter, to have completed a minimum of two years' service.

7.5.3 The loan scheme shall be operated in a manner that will enable it to be self-financing from repayments of the loans by the employees.

7.5.4 The cost to employees for all loans shall be calculated at 10 percent of the loan amount.

7.5.5 The take home pay shall not fall be below 33%.

7.5.6 An employee who obtains a loan shall complete and sign a Loan Agreement Form with the Authority before the loan is disbursed.

7.6 Other longer term loans

7.6.1 The Authority shall facilitate without obligation, a longer-term loan, mortgage or advance by the relevant financial institution to an employee who has been confirmed in their position.

7.6.2 All obligations under the long-term loan of an employee shall be for the account of, and settlement by the employee concerned.

SECTION EIGHT: TRAINING

8.0 Training

8.2 Annual Subscription

The Authority shall pay annual subscriptions to the professional body/bodies on behalf of an employee provided the employee, by virtue of his/her profession or occupation is obliged to belong to such professional body/bodies.

SECTION NINE: ALLOWANCES AND BENEFITS

9.0 Allowances and benefits

9.1 Settling in Allowance

The Authority shall pay an employee a settling-in allowance on transfer

outside the duty station district boundary at a rate to be determined by the

Authority from time to time, provided that the transfer is not at the request of the officer.

9.2 Subsistence Allowance

The Authority shall provide subsistence and related business travel allowances to all employees working away from their normal duty station in order to cover their board and lodging requirement and to meet other 9.2.1 When an employee travels on Authority business locally andstation, which necessitates an overnight stay, the employee shall be paid subsistence allowance to cover board and lodging costs.

9.2.1.2 The applicable rates shall be reviewed annually. The current rates are provided below:

SUBSISTENCE AND OUT OF POCKET ALLOWANCE RATES ON LOCAL BUSINESS TRAVEL

STAFF CATEGORY	SUBSISTENCE RATE	OUT OF POCKET ALLOWANCE RATES (where board and lodging is paid for directly by the Authority or another sponsor)
ZPPA 06 - ZPPA 07	K650	K325.00
ZPPA 08 - ZPPA 10	K450	K225.00

9.2.2 Subsistence allowance on International Business Travel when an employee travels on Authority business outside Zambia, it is the responsibility of the Authority to ensure that appropriate board and lodging arrangements have been made and paid for the employee.

9.2.2.1 In the event that appropriate arrangements have not been made, the employee shall be paid an appropriate subsistence allowance to cover the board and lodging costs.

9.2.2.2 The subsistence rates payable per overnight stay are based on government rates that are, in turn, based on the estimated costs of board and lodging in the different countries.

9.2.2.3 The applicable rates will be reviewed from time to time by the government to reflect the costs. The current international business travel subsistence allowance rates are provided below:

SUBSISTENCE AND OUT OF POCKETA LLOWANCERATES ON INTERNATIONAL BUSINESS TRAVEL

STAFF CATEGORY	EASTERN AND SOUTHERN AFRICA	REST OF THE WORLD	OUT OF POCKET ALLOWANCE RATES (where board and lodging is paid for directly by the Authority or another
ZPPA 06 - ZPPA 10	$342.00	$365.00	20% of thesubsistence allowance

9.3 Out of pocket allowance on sponsored business travel

The applicable out of pocket allowance at the rates set out above shall be paid by the Authority to an employee on Authority business whose travel

and board and lodging expenses, whether locally or outside the country, have been fully sponsored or paid for by another organisation.

9.4 Meal Allowance

The Authority shall pay an employee a meal allowance when the employee is:

(a) Undertaking duties at a place that is twenty [20] or more kilometres away from the duty station without involving an overnight stay; or

(b) Taking part in an Authority exhibition or an Authority match-past to commemorate a national day or event

(c) The applicable rates of meal allowance are indicated below:

MEAL ALLOWANCE RATES

ZPPA STAFF CATEGORY	MEAL ALLOWANCE RATE
ZPPA 06 - ZPPA 10	K80.0

9.5 Transport Allowance

The Authority shall pay a transport allowance to all employees in order to facilitate their transport to work. The allowance shall be paid under the payroll but shall not be consolidated with the monthly salary and shall be at the following rates:

(a) Employees in ZPPA 06	150 litres
(b) Employees in ZPPA 07	100 litres
(c) Employees in ZPPA 08	90 litres
(d) Employees in ZPPA 09	85 litres
(e) Employees in ZPPA 10	65 litres

9.6 Acting Allowance

When acting for administrative convienience, the employee shall be paid an acting allowance when the acting appointment is for a minimum period of twenty one (21) working days, The allowance shall be paid at the rate of twenty (20) percent of the employee's substantive basic salary, or the difference in basic salary between the substantive post and the entry point of the higher post's basic salary grade, whichever is higher.

9.7 Responsibility Allowance

An employee who is appointed to work in a senior position for a period not less than ten (10) days but less than twenty one (21) days shall be entitled

to a Responsibility Allowance.

The Responsibility Allowance shall be calculated as the difference between the employee's salary and the entry notch of the grade in which he/she is acting.

SECTION TEN: TERMINATION OF EMPLOYMENT

10.0 Termination of employment

10.1Unconfirmed Employee

During an employee's probation period, either party may terminate the employment by giving the other party five (5) day's notice of the termination.

Neither party is obliged to give reasons for the decision. The Authority shall pay the employee's salary up to the date of the end of the employment

10.2 Confirmed Employee

10.2.1 Termination of the appointment of an employee on Permanent and Pensionable service shall be in accordance with the terms of their appointment including these terms and conditions of service.

10.2.2 Either party shall give the other party one month notice of the decision to terminate the employment or shall give the other party one month's basic salary in lieu of such notice.

10.2.3 Where the termination is due to disciplinary action, then the provisions of the Disciplinary code and Grievance Handling Procedures shall apply in relation to the rights and obligations of the employer and the employee, including the right of the employee to appeal against the decision,

10.2.4 An employee dismissed under this provision shall be paid, subject to recovery of any monies owing to the Authority:

a) Pension benefits in accordance with the rules of the scheme(s); and

(b) Commutation of accrued leave days.

10.3Normal Retirement

10.3.1 The normal retirement age for all Authority employees is fifty-five (55) years, However, the Authority may, on the

grounds that the employee possesses rare skills not readily available on the labour market and at its own discretion, re-engage the retired employee on contract of one year untill the employee attains sixty (60) years of age.

10.3.2 The Authority shall pay the following benefits to an employee proceeding on normal retirement:

(a) Pension benefits in accordance with the rules of the Scheme (s);

(b) Commutation of accrued leave days; and

(c) Repatriation allowance.

10.4 Early Retirement

10.4.1An employee may apply for early retirement provided that the employee has been in continuous service with the Authority for a minimum period of fifteen (15) years.

10.4.2 Where the application for early retirement has been approved by management, the employee shall receive the benefits that accrue to employees proceeding on normal retirement.

10.5 Medical Discharge retired on medical grounds where the Authority has satisfactory medical evidence from a recognised medical practitioner that:

(a) The employee is incapable by reason of some infirmity of mind or body, of discharging the duties of their office;

(B) Such-infirmity is likely to be for a period of twelve (12) months or more; and

(c) The employee's service is likely to be interrupted by the illness to an extent which would markedly reduce their performance.

(a) Pension benefits in accordance with the rules of the

(b) Commutation of accrued leave days; and

(C] Repatriation allowance

10.6 Terminal Benefits

An employee who dies, retires or is discharged on medical grounds shall be eligible for terminal benefits as follows:

(a) Salary and applicable allowances for the days worked;

(b) Accrued leave days; and

(c) Pension benefits in accordance with the rules of the Scheme(s).

10.7 Retirement Benefits

On retirement, an employee shall be eligible for the following.

(a) Salary and applicable

(b) Accrued leave days; and

(c) Pension benefits in accordance with the rules of the scheme(s).

10.8 Redundancy

10.9 Repatriation

The Authority shall pay repatriation allowance to staff who leave employment as shown below:

ZPPA STAFF CATEGORY	REPATRIATION ALLOWANCE
ZPPA 06	K7,500.00
ZPPA07 - ZPPA10	K6,750.00

SECTION ELEVEN: INSURANCE AND PENSION

SECTION TWELVE: UNIFORMS AND PROTECTIVE CLOTHING

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APPENDICES

APPENDIX 1 - ALLOWANCE

ALLOWANCES	AMOUNT	EMPLOYEE COVERED
Settling-in-allowance on transfer from one district duty station to another	10% of annual basic salary	ZPPA06-ZPPA 10
Subsistence Allowance on Local Business Travel when not accommodated	K650.00 K450.00	ZPPA06 - ZPPA 07 ZPPA 08 - ZPPA 10
Out-of-pocket allowance on Local Business Travel (When accommodated]	K325.00 K225.00	ZPPA 06 - ZPPA 07 ZPPA 08 - ZPPA 10
Subsistence Allowance on International Business Travel when not accommodated	$342.00 (Eastern and Southern Africa $365.00 (Rest of the world	ZPPA06 - ZPPA 10
Out-of-pocket allowance on International Business Travel where Board and Lodging is paid for by the Authority or another Sponsor	20% of the subsistence allowance	ZPPA 06 - ZPPA 10
Repatriation Allowance	K7, 500.00 K6, 750.00	ZPPA06 ZPPA 07 - ZPPA 10
Meal Allowance (Daily Rates) without receipts	K80.00	ZPPA06 - ZPPA 10
Out-of-pocket allowance on Local Business Travel (When accommodated]	K325.00 K225.00	ZPPA 06 - ZPPA 07 ZPPA 08 - ZPPA 10

FUNERAL GRANT

FUNERAL GRANT	K6, 000.00	ZPPA 06
	K4, 000.00	Spouse
	K3, 000.00	Parent/Dependant
	K5, 000.00	ZPPA 07 - ZPPA 10
	K4, 000.00	Spouse
	K3, 000.00	Parent/Dependant

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APPENDIX II

The Zambia Public Procurement Authority and the Zambia Union of Financial and Allied Workers agreed to negotiated salary and conditions of service.

EFFECTIVE DATE

The effective date of the amendments to the Collective Agreement is 1st January, 2015.

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APPENDIX IV - ENDORSEMENT

In witness whereof the parties hereto by their duly authorised representatives nave hereunto set their hands this day of 16th October, 2015.

For and on behalf of Zambia Public Procurement Authority

- Chibelushi M, Musongole [Dr.] - Director General

In the presence of

- Ms Mwaka Ndhlovu - Board Secretary

- Mrs. Idah C. Chella - Acting Director-Human Resource and Administration

For and on behalf of Zambia Union of Financial Institutions and Allied Workers

- Mr. Ackim H. Mweemba - President - ZUFIAW

- Ms. Lusa P. Mulanda - Women's Desk Coordinator

- Mrs. Getrude C. Vumango - ZUFIAW Branch Chairperson

- Mr Machokoto M. Kwibisa - ZUFIAW Branch Secretary

DATE: 24 JANUARY 2015