MEMORUNDUM OF COLLECTIVE AGREEMENT BETWEEN ZAMBIA NATIONAL COMMERCIAL BANK Plc AND ZAMBIA UNION OF FINANCIAL INSTITUTIONS AND ALLIED WORKERS - 2016
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MEMORUNDUM OF COLLECTIVE AGREEMENT BETWEEN ZAMBIA NATIONAL COMMERCIAL BANK Plc (Hereinafter referred to as the "Bank") AND ZAMBIA UNION OF FINANCIAL INSTITUTIONS AND ALLIED WORKERS (Hereinafter referred to as the Union)
From the period 1st January, 2016 to 31st December, 2017
1.0 PREAMBLE
WHEREAS the "Union" representing employees eligible for representation by the Union in terms of Clause 2, Scope of the Agreement MEMORUNDUM OF RECOGNITION AGREEMENT signed on the 4th day of February, Nineteen Hundred and Ninety-Eight between the Bank and the Union and the Amendment signed on the 4th day of April, Two Thousand and Seven.
NOW THIS COLLECTIVE AGREEMENT made this 10th Day of October, 2016 between the Bank and the Union covering Conditions of Service pursuant to the aforesaid Memorandum of Recognition Agreement WITNESSETH as follows:
2.0 DEFINITION OF TERMS
The following terms shall in this Agreement mean as indicated here below:
(a) Salary- An employee's Monthly Basic Salary, excluding Allowances and any other cash benefits.
(b) Child- An employee's biological offspring or legally adopted minor/dependant below the age of twenty one (21) years, registered with the Bank. Child shall also include a physically or mentally challenged biological offspring or legally adopted minor/dependant above the age of twenty one (21) years, provided that the disability is from childhood and certified by a qualified medical practitioner. Such offspring or legally adopted minor/dependant should be dependant upon the Bank employee due to the disability and must have been registered with the Bank, prior to attaining the age of 21 years.
(c) Spouse-Husband/Wife of an employee registered with the Bank.
(d) Eligible Employee- A Unionisable employee of the Bank.
(e) Union-The Zambia Union of Financial Institutions and Allied Workers (ZUFIAW).
(f) Bank-The Zambia National Commercial Bank (ZNCB) Plc.
3.0 DURATION
The duration of this Collective Agreement shall be a period of not less than twenty four (24) months effective 1st January, 2016.
(a) Within twelve (12) months of the date of the coming into effect of this Collective Agreement, either party may call for a meeting to review Salaries according to prevailing economic conditions during the period.
(b) At any time after twenty four (24) months of the commencement of this Agreement, either party shall give to the other, six (6) weeks notice in writing of its desire for this Agreement to continue in force
for a further period to be agreed upon or of its intention to terminate the Agreement or alter any Clause herein.
(c) In the event of emergency cases, both parties shall endeavour to meet as soon as possible but not later than fourteen (14) calendar days.
(d) The terms of this Agreement shall be in accordance with the prevailing Labour Legislation from time to time.
(e) The provisions of this Agreement shall be valid only so long as the Recognition Agreement between t he Bank and the Union remains in force.
(f) Prior to the signing of a new Collective Agreement, the present Agreement shall continue in force.
4.0 APPLICATION FOR CHANGE OR AMENDMENT OF THE AGREEMENT
It is hereby agreed that if either the Union or the Bank shall consider that any part of this Agreement should be changed or amended and if it is also considered that such change is mutually beneficial to both the Union and the Bank and provided it is clearly seen to be a valid reason to recommend such a change or amendment to this Agreement, such a change or amendment shall be undertaken in the following manner:
(a) The Union or the Bank will indicate by letter its intention to discuss a change or amendment to the Collective Agreement.
(b) Such a letter as is indicated in (a) above shall not be considered by the Bargaining Unit unless it is accompanied by written information/evidence or any other communication considered necessary to validate the intention to change or amend the Collective Agreement as aforesaid.
(c) The party requesting the change or amendment shall allow the other party three (3) months to consider the request. The Bargaining Unit shall after two (2) weeks, but not longer than three (3) weeks after the date of the original letter, agree to meet to discuss the change.
5.0 RATE OF PAY
(i) Salary
The salaries for all Unionised employees as at 31st May, 2016 shall be increased by K200 per month across the board with effect from 1st June, 2016.
(ii) Performance Based Pay
The final negotiated salary increment for Unionised employees shall be apportioned on the basis of cost of living (across the board) and performance (Individual performance rating) and the rate of apportionment shall be agreed upon by the Bargaining Unit.
(iii) Overtime
Overtime shall be one and halftimes the hourly rate on ordinary days and double the hourly rate on Sundays and Public Holidays.
(iv) Mid-Month Pay
An employee may on request, draw a Salary Advance of up to 30% of their Monthly Basic Salary taking in account the employee's current financial commitments and provided that the request is made before the closing date of the payroll input for the month.
(v) Salary Advance
On satisfactory proof of documentary evidence, Management at its discretion may pay salary advance to an employee on request at any time of the month, to be recovered in two months installments under any one of the following circumstances:
(a) House burglary, supported by a Police Report.
(b) Death of a dependant, supported by a Death Certificate.
(c) Sickness of a dependant, supported by a Medical Report.
(d) Natural calamity, supported by a Police Report, Medical Report etc.
(e) Any other circumstances where there is satisfactory proof of occurrence of the circumstance will be approved at the discretion of Management.
(v) Not withstanding the above provisions in (iii) and (iv) above, the total deductions per month should not exceed 50% of the net monthly pay.
6.0 UPKEEP ALLOWANCE
The Upkeep Allowance as at 31st May, 2016 shall be increased by K700 per month across the board effective 1 st June, 2016.
7.0 ANNUAL LEAVE ACCRUAL
(i) Annual Leave shall accrue at the rate of 2.5 days per month across the board irrespective of the employee's length of service. Staff shall take any number of accrued leave days as Annual Leave at any time in the course of the year, but will only be eligible to carry a maximum balance of accrued leave into the new year.
(ii) Leave days accrued, including during the probation period, shall be paid to the employee in cash upon termination of employment or to his/her estate in the event of death.
(iii) Commutation shall be paid at the rate of Annual Basic Salary times the number of days commuted divided by two hundred and sixty four (264).
8.0 ANNUAL LEAVE ALLOWANCE
Leave Allowance shall mean payment made to an employee on an approved annual leave of not less than 15 working days. Annual Leave Allowance shall be paid at the rate of 100% of one's monthly gross salary, ie, (Monthly Basic Salary plus Upkeep Allowance) in the month of January. Payment will be made on receipt of a leave application form. Employees may opt to receive their leave pay later on in the year when they decide to go on leave and submit the leave application form. The days applied for shall be deducted and cannot be claimed once the allowance has been paid.
9.0 STUDY LEAVE
On satisfactory proof of registration for a course approved by the Bank, an employee shall be granted ten (10) calendar days as Study Leave, inclusive of the actual period of writing examinations, not exceeding two (2) times in a year.
10.0 COMPASSIONATE LEAVE
(i)On death of a spouse, child or parent, an employee will be eligible for seven (7) calendar days as Compassionate Leave and such leave shall not be deducted from the employee's accrued leave days.
(ii)Days in excess of seven (7) calendar days shall be granted at the discretion of Management and such days shall form part of the compassionate leave.
11.0 NURSING A SICK CHILD OR SPOUSE
(i) An employee shall be granted leave for the purpose of nursing his/her sick spouse or child who has been hospitalized provided that he/she produces documentary recommendation from a Medical Practitioner registered with the Medical Council of Zambia stating that his/her presence is required and indicating the number of days required, as long as the days requested for do not exceed twenty one (21) calendar days.
(ii) An employee shall be granted leave for purposes of nursing a sick child who is an outpatient provided that he/she produces documentary recommendation from a Medical Practitioner registered with the Medical Council of Zambia stating that his/her presence is required and indicating the number of days required, as long as the days requested for do not exceed twenty one (21) calendar days in a year.
(iii) Documentary recommendation from a Traditional Healer shall only be accepted if there is evidence to show that registered Medical Practitioners have failed to treat the sick person.
(iv) Days taken as leave under this Clause shall not be deducted from the employee's accrued leave days.
12.0 PATERNITY LEAVE
On satisfactory proof of registration of a spouse (wife) and the newly born child. Male employees shall be entitled to four (4) calendar days as paternity leave once every two (2) years to attend to parental responsibilities.
13.0 UNPAID LEAVE
Management may on application, grant Unpaid Leave of up to a maximum of one (1) year using its discretion in deserving cases, provided that the employee has served for a continuous minimum
14.0 SPECIAL LEAVE
(i) An employee who is required by Law to attend Court proceedings as a State Witness shall be allowed Special Leave for the number of days as required.
(ii) A female employee shall be entitled to one (1) day absence from work each month without giving reasons (Mother's Day).
15.0 SICK LEAVE
(i) An employee who is unable to execute normal duties due to illness or accident not occasioned by the default of the employee shall on production of a medical certificate from a registered Medical Practitioner or medical institution designated by the Bank, be granted paid Sick Leave at the following rates:
(a) Full pay during the first three (3) months; and
(b) Half pay for the next three (3) months; provided that if the employee has not recovered from illness or accident after six (6) months from the date of illness or accident, the Bank may, on the recommendation of a registered Medical Practitioner or Medical Institution designated by the Bank, discharge the employee whereupon the entitlement to Sick Leave shall cease.
(ii) However, a recommendation from a registered Traditional Healer will be recognized as a certificate of absence provided that there is a letter from a registered Medical Practitioner stating that the employee attended treatment and that the nature of his/her illness could not be cured.
(iii) The Bank reserves the right to have an employee examined by a registered Medical Practitioner of its choice.
16.0 MATERNITY LEAVE
(i) A female employee shall be granted ninety (90) calendar days paid Maternity Leave on production of a medical certificate as to her pregnancy signed by a registered Medical Practitioner or medical institution, subject to completion of two (2) years of continuous service from the date of engagement or since the last Maternity Leave was taken.
(ii) The Maternity Leave shall be additional to any other leave to which an employee may be entitled.
(iii) Where by reason of illness arising out of the pregnancy, a female employee becomes incapacitated of performing her normal duties; she shall be entitled to Sick Leave in accordance with the provisions of Clause 14 above.
(iv) The Bank shall not terminate the services of a female employee or impose any other penalty or disadvantage upon such employee within six (6) months after delivery, for reasons connected with such employee's pregnancy.
17.0 BREAST FEEDING
The Bank shall provide a place where female employees who have babies (registered with the Bank) who are not more than one (1) year old breast feed. The duration of such breast feeding shall not exceed one (1) hour per day.
18.0 PUBLIC HOLIDAYS
All gazetted Public Holidays as stipulated by the Government from time to time shall be observed by the Bank.
19.0 HOURS OF WORK
(i) Hours of work shall be restricted to forty four (44) hours per week or one hundred and seventy six (176) hours per month. Hours in excess of this shall constitute overtime.
(ii) The official working hours shall be as follows:
(a) Monday - Friday 08:00 hours - 13:00 hours
and 14:00 hours-17:00 hours
(b) Saturday 08:00 hours - 12:00 hours
(iii) The official working hours in a Shift shall be determined by Management in consultation with the Union.
(iv) Staff requested by Management to work on Saturdays, Sundays or Public Holidays shall be provided with Lunch if they work beyond 13:00 hours.
(v) An employee who is made to work beyond 19:00 hours shall be provided with Bank transport to his/ her place of residence.
(vi) In the event of the Bank failing to provide transport, Management shall avail accountable Imprest to staff working late taking into account the prevailing fares, provided always that:
(a) Prior permission to work late was granted by Management;
(b) The employee uses a direct route to his/her known residence; and
(c) No Imprest shall be availed to staff who have not retired Imprest (i.e Imprest should be retired the following day).
(d) Staff using their own vehicles shall retire the imprest by production of fuel receipts amounting to not more than the prevailing fares as stated in item (v) above.
(vii) The Bank shall provide dinner to employees requested to work beyond 19:00 hours.
(viii) The provisions in Clauses (iv) and (v) above shall not be extended to staff living within the Bank premises.
(ix) Employees requested to work on non-working days and live within a radius of 25km shall be paid money equivalent to a Taxi Fare to and from the place of work.
20.0 ELIGIBILITY FOR UNION MEMBERSHIP
(i) Newly recruited employees shall not be represented by the Union.
(ii) Staff will only be represented after having been confirmed in their positions in writing as Permanent and Pensionable employees of the Bank.
21.0 PROTECTIVE CLOTHING AND SAFETY
(i) The Bank shall provide appropriate clothing to eligible employees and safety garments to eligible employees working in potentially hazardous areas.
(ii) The Bank shall discuss with the Union when determining the type of protective clothing and safety appropriate to eligible employees and the said eligible employees shall wear the protective clothing so issued through out the year until the issuance of new ones which shall be twice in a year.
(iii) The Bank shall provide two (2) packets of detergent paste/powder of 500 grams per week to eligible employees.
22.0 UPSET/DISTURBANCE ALLOWANCE
(i) Upset/Disturbance Allowance will be paid at the rate of one and half (1 and 1/2) times the Monthly Basic Salary upon an employee's transfer from one town to another, at Management's request.
(ii) An employee transferred by Management shall be provided with transport for the family and personal belongings as well as temporary accommodation for a period not exceeding thirty (30) calendar days while making arrangements for own accommodation. This period may be extended at the discretion of Management.
(iii) However, Upset/Disturbance Allowance, provision of transport and temporary accommodation shall not apply if an employee is transferred at his/her own request.
(iv) It is incumbent upon the Line Manager to allow flexibility in working hours to allow employees on transfer look for accommodation within the 30th days subject to minimal interruption in Bank operations.
23.0 ACTING ALLOWANCE
(i) To qualify for Acting Allowance, an employee must act for a period of not less than fifteen (15) calendar days, in a higher grade.
(ii) The Acting Allowance shall be 15% of either the acting employee's Monthly Basic Salary or the incumbent employee's Monthly Basic Salary whichever is higher.
(iii) An employee nominated to act shall be informed in writing by the Human Resources Department prior to carrying out duties involving payment of an Acting Allowance.
(iv) An eligible employee who is appointed to act in a higher position with a view to promotion shall not be made to act for more than six (6) months without being confirmed or furnished with reasons why he/she should not be confirmed; and in case of noticeable persistent unsatisfactory work performance, the Acting appointment may be withdrawn and the employee reverted to his/ her substantive salary, grade and/or position.
24.0 TOOLS FOR ARTISANS
(i)The Bank's Artisans shall be provided with appropriate tools for efficient execution of their work.
(ii)Where tools are not provided, the employee shall report for work and perform such duties as shall be assigned to him/her as long as they do not fall outside the normal sphere of his/her job.
25.0 SUBSISTENCE ALLOWANCE
(i) An employee travelling on authorized Bank duties and opts to make own accommodation and feeding arrangements shall be paid K550 as Subsistence Allowance for each night out of the usual work station and the Bank shall meet the attendant tax due on the Subsistence Allowance paid to the employee.
(ii) An employee travelling on authorized Bank business and opts to be accommodated and meals provided by the Bank, shall be paid K70 as Out-of-Station Allowance for each night out of the usual work station.
26.0 FUNERAL EXPENSES
(i) In the event of death of an employee, spouse, child or parent, the Bank shall pay funeral grant as follows:
(a) Employee............K6,500
(b) Spouse................K5,075
(c) Child...................K4,500
(d) Parent.................K3,300
27.0 REPATRIATION
(i) On termination of service, an employee shall be entitled to be repatriated together with the family, from the place of employment to the place of recruitment as stipulated in the Employment Act under the following circumstances:
(a) The employee being medically discharged;
(b) The employee being declared redundant;
(c) The employee being separated under the Voluntary Severance Scheme;
(d) Upon normal retirement; and
(e) The employee dying in service in which case the benefits shall be payable to the family of the deceased employee.
(ii) However, an employee may elect to be repatriated to a place of choice but the Bank may only meet the portion of the cost equivalent of the repatriation to the place of recruitment.
(iii) In addition, where termination under the above stated circumstances takes place within the place of recruitment, the Bank may assist the employee with the cost of repatriation to the place of settlement.
28.0 PRINCIPLES OF REDUNDANCY AND STAFF RATIONALISATION
(i) It is hereby agreed that Redundancy is a negotiable item and that in the event of redundancies being executed, this exercise shall require full consultations between the Union and the Bank to work out modalities of its implementation.
(ii) Redundancy will not arise where:
(a) In the event of it being necessary to reduce staff at one Branch because of its closure or small work load and the affected employee(s) is offered alternative employment appropriate to his/her grade at another Branch, whether or not the offer is accepted.
(b) Where the business is wholly or partially taken over by or merged with any third party and continued employment is offered to employees on similar terms.
(iii) The contract of employment of an eligible employee shall be deemed to have been terminated by reason of redundancy if the termination is wholly or in part due to:
(a) The Bank ceasing to carry on the business for which the employee was engaged.
(b) The Bank ceasing or reducing the requirements for eligible employee to carry out work of a particular kind in a place where the eligible employee was engaged, but the Bank remains a viable concern.
(c) Any other conditions as provided for in the Employment Act or related employment legislation.
29.0 VOLUNTARY SEVERANCE SCHEME
Upon application, Management at its discretion may consider and approve an employee's request to proceed on Voluntary Severance Scheme provided always that the employee has served the Bank for a continuous period of ten (10) years or attained the age of fifty (50) years.
Formula
(i) 10-19 years of service=2.0 x Monthly Gross Salary for each completed year of service. However, excess service period of six (6) months and above will be computed on pro-rata basis.
(ii) 20 years of service and above=2.4 x Monthly Gross Salary for each completed year of service.
However, excess service period of six (6) months and above will be computed on pro-rata basis.
NB:Monthly Gross Salary shall mean Monthly Basic Salary, Upkeep Allowance and Monthly Leave Allowance.
30.0 SALARY STRUCTURE
(i) The salary structure shall form an integral part of this Collective Agreement.
(ii) The salaries may be reviewed annually subject to the provisions of Clause 3 (a) on Page 2 of this Agreement.
31.0 THE GRIEVANCE AND DISCIPLINARY CODE AND THE GENERAL CONDITIONS OF SERVICE-RULES AND ORDERS
In administering discipline, the Bank shall be guided by the provisions of the Grievance and Disciplinary Code and the General Conditions of Service-Rules and Regulations as amended from time to time.
IN WITNESSTH WHEREOF, WE THE UNDERSIGNED DO HEREBY SET OUR RESPECTIVE HANDS THIS 10TH DAY OF 2016.
*FOR AND ON BEHALF OF THE BANK
- BRUCE DICK - MANAGING DIRECTOR
- SANDRA WAMUNYIMA - HEAD LEGAL
* FOR AND ON BEHALF OF THE UNION
- CHINGATI MSISKA - GENERAL SECRETARY
- GIFT NAWA - CHAIRPERSON-ZUFIAW LUSAKA BRANCH
