COLLECTIVE AGREEMENT BETWEEN MILANI LIMITED AND UNION OF EDUCATION, AGRICULTURE & GENERAL SERVICES WORKERS (UNEAGES of GFL)

PART 1: GENERAL BASIS OF AGREEMENT

This Agreement is made this day 5TH DAY of SEPTEMBER 2012 Between the herein after called “THE EMPLOYER” and the UNION OF AGRICULTURE,EDUCATION AND GENERAL SERVICES a Union officially recognized and certified under the Labour Act 2003, Act 651 herein after called “THE UNION”. The terms and conditions of employment hereby agreed upon shall take effect from 1st DAY OF MARCH 2012 till 28th DAY OF FEBRUARY 2014 and shall apply to all employees who are in the employment of the effective date of the agreement and thereafter subsequent employees who are engaged by the Company and subscribe to the membership of the Union while this agreement is in force.

ARTICLE 1 – PURPOSE

(A) It is the intention of the parties hereto that this Agreement will promote and improve relations between the Employer and the union and to set forth herein a basic Agreement covering general terms, hours of work and other conditions to be observed between the parties hereto during the life of this Agreement.

(B) It is also agreed that, should any disagreement arise between the Employer and the Union, the parties will immediately take steps to settle such disagreement as provided for under the Labour Act, 2003 (Act 651).

ARTICLE 2: DEFINITION

i. “EMPLOYEES” shall consist of contract and permanent employees and shall apply to all unionized employees classified under the COLLECTIVE BARGAINING CERTIFICATE SPECIFIED IN APPENDIX ‘A’ (Salary Structure).

ii. CONTRACT EMPLOYEES shall refer to workers who having been in employment for a period exceeding six months have been given a 12-month employment contract by the EMPLOYER.

iii. PERMANENT EMPLOYEES shall refer to workers who have formal employment agreement with the Employer without limitation to time.

iv. “EMPLOYER” shall refer to the Management of Milani Limited who is responsible for the day-to-day and general management of the company.

4 “WORKING DAYS” shall consist of five working days per week of 40 hours, between Monday and Sunday. Depending on the nature and exigency of the work, the employer may vary the working days and hours to meet the specific needs of the work.

ARTICLE 3 – DURATION / WAGE OPENER/MODIFICATION

This agreement shall remain in force for a period of not less than two (2) years from the date of implementation. After Twenty-two (22) months from the effective dates, either party may give to the other notice in writing of its desire to continue such agreement for a specified period agreeable to both parties and notice of intent to amend specified provisions or to terminate the Agreement. The duration of such notice shall be four (4) weeks. This Agreement shall however, continue to be in force until a new Agreement is concluded and signed.

WAGE OPENER

After twelve (12) months from the date of this Agreement but only once during the two (2) year period either party may give to the other party a month’s notice that it wishes to negotiate for revision in salaries/wages only and until such revision is negotiated, concluded and agreed, the present rate specified in such appendix ‘A’ shall remain in force.

MODIFICATION

Neither the employer nor the Union shall have the singular right to modify or waive off any provision of this agreement. Any such modification or waiver shall be with the consent of both parties to the Agreement and shall be done only at the Standing Negotiating Committee Level.

PART 2: ENTERING THE SERVICE OF MILANI LIMITED

ARTICLE 4: CONDITIONS OF ENGAGEMENT

(A) The employer shall give the newly employed a letter of appointment stating the following:

A. Wage

B. Wage Scale

C. Effective Date of engagement

D. Probation Period

E. Job Title

F. Department

G. Job Description

(C) Before engagement, all prospective employees shall at the cost of the company undergone full Medical Test designated by the Company. The result shall be communicated to the employee and the employer.

(D) In certain areas of the Employer’s premises, smoking is dangerous and is a serious risk. In the interest of all concerned, where “NO SMOKING” notices or Signs are displayed, smoking is prohibited and where this is disobeyed, it will incur disciplinary measures. The Employer shall take steps to equip employees with appropriate skills in fire fighting for the prevention of fire out break.

(E) Personal property belonging to the Employee left on the Employer’s Premises is at the owner’s risk and the Employer cannot assume responsibility for loss or damage.

(F) No Employee covered by this Agreement shall be compelled to enter a contract or Agreement with Employer concerning condition or employment, wages or salaries as dealt with in this Agreement or shall be allowed to be bonded by the Employer without prior discussions with the Union. The Employer, after consultations with the National Union, may in the case of specialized training, request the Employee to enter into a bond.

(G) At the time of signing this agreement all Employees, who have been in the service of the Employer for not less than three (3) months shall be deemed as permanent.

ARTICLE 5: NOMINATION OF NEXT OF KIN

Every Employee will give to the Employer, at the time of his engagement, the name and address of the nominee(s) who should receive any entitlement due from the Employer to his Estate in the event of his death. This can be revoked, renewed at the discretion of the Employee. In the event of death of the Employee, the Employer shall give the beneficiary who was last nominated by the deceased employee any benefits/rights that may have accrued to the deceased. All payments to beneficiaries shall be made in the presence of representatives of the Union. In cases where the Employee failed to provide a next of kin or there are misunderstanding surrounding the claims of the deceased’s benefits, the application of letters of Administration or Probate shall apply.

ARTICLES 6: RATES OF PAY

(B) All deductions permitted by law shall be made from the Salaries/Wages of an Employee.

(C) Should a new job be created subsequent to the date of this Agreement or should an existing job be so substantially changed in its duties and responsibilities that the old rate of pay, salary range etc., are no longer appropriate, the Employer and the Union shall meet to agree upon a rate of pay, salary range etc, which are consistent with the Company’s salary structure for the new or changed job.

ARTICLES 7: ANNUAL INCREMENTS

ARTICLE 8:PROMOTION

(A) As far as possible, and depending on suitable candidates being found, all vacancies will be filled by promotion from within.

(B) Promotions to vacancies in higher grades shall be based on efficiency on the job, experience, sense of responsibility, initiative, general behaviour and length of service.

(C) Employees will be informed through internal advertisement of vacancies, as they occur to enable those in other departments or lower grades with requisite qualifications who may wish to be considered to apply.

(D) An employee promoted to a new position shall serve a trial period of three (3) months. If in the opinion of the employer he fails to perform satisfactorily during the period, he will be reverted to his former position. An employee reverted could be considered for promotion at a future date.

PART 3

ARTICLE 9: WORKING HOURS

ARTICLE 10: OVERTIME

ARTICLE 11:DISCIPLINE

(A) TERMINATION

Where the Employer terminates the services of an employee for a stated reason, the Employer shall serve such employee one month notice or one-month’s pay in lieu of notice thereof and pay any earned benefits from the Provident Fund or Long Service Award and where applicable the Employee shall be made to use any entitled leave during the period of notice.

Upon termination of Employment the Employee shall return all Company documents, assets or materials in his/her custody before any payment of outstanding salary or earned benefits from the Provident Fund/Long Service Award is paid to such Employee. In all cases the Employer must assign the reason of any Termination to that effect.

Where the employer terminates the services of an Employee on the grounds of:

i. Mutual consent of the Employer/Employee

ii. ILL treatment or sexual harassment

iii. The death of an Employee

iv. Employee medically unfit certified by medical officer

v. Sickness or accident of the worker

vi. Proven incompetence of the worker

vii. Lack of requisite qualification on the part of the worker for the work which he is employed to do.

viii. Proven misconduct of the worker.

ix. Legal restrictions imposed on the worker prohibiting the worker from performing the work for which the worker is employed.

x. The employer shall serve the affected employee two (2) weeks notice if the service is less than three (3) years and One (1) month notice if the service is three (3) years and above or payment in lieu of the required notice.

The Terminated Employee shall be entitled to all earned benefits and entitlements as at the time of his/her termination as follows:

a. Salaries/Wages

b. Accrued leave and, or proportional leave.

c. Provident Fund (end of service benefit)

d. Annual Bonus if worked beyond ten (10) months in that particular year.

(B) DISMISSAL

In the event of an Employee being found guilty by the Employer of serious misconduct such as dishonesty, stealing, fighting, insubordination, assault, drunkenness on duty, smoking in prohibited areas, he shall be dismissed. The Employer shall notify the Union in writing and explain the circumstances leading to the dismissal after giving hearing to the affected employee whether verbal or in writing. The Employer may consider other alternative penalties in place of dismissals.

The Employer shall be responsible for ensuring that all employees conduct themselves in a responsible manner at all times and shall investigate and impose appropriate sanctions as it deems fit in cases of misconduct, provided that all cases of discipline shall be dealt with in accordance with the Labour Act 2003, Act 651.

Where an Employee misconducts himself, he shall be given an opportunity by the Employer to explain why disciplinary action should not be taken against him, provided that the Employer reserves the right to make a final decision on the matter.

Where an Employee is dismissed as a result of proven misconduct, there shall be no requirement for the Employer to serve any prior notice of such dismissal and the Employee shall only be entitled to any earned benefits from the Provident Fund set up.

All matters of discipline in relation to Termination under this Collective Agreement shall be in conformity with the Labour Act 2003 Act 651, Sections 15,17,18,62 and 64.

(C) WARNING

Where an Employee commits an offence, which does not amount to serious misconduct, such Employee will be warned in writing. If after three (3) such warnings the Employee commits a fourth (4th) offence, his services shall be terminated. Warning letters cease to have effect 12 months from the date of issue. Before a written warning is given, discussion will be held with the Employee in the presence of a Union representative or a written query shall be given to the Employee to answer within 48 hours. If no satisfactory answer is given the Employee shall be given written warning.

(D) SUSPENSION

Where an Employee is suspected of committing an offence, which cannot be immediately proved, he shall be suspended on half-pay pending further investigation. If at the end of the investigation he is proved not guilty he will be paid as if he had worked for the full period of the suspension. On the contrary, should the employer decide to terminate the service of an employee, under investigation, the employer shall provide detailed reasons for its action.

(D) INTERDICTION

Where and when an employee is alleged to have committed an offence which cannot immediately be proven, he/she shall be suspended or interdicted on half pay for period not exceeding 30 days pending investigations or such longer period as the Employer may require to complete investigations. The suspended or interdicted employee shall be reinstated and be paid the balance of salary as if he/she had worked for the full period of the suspension if at the end of the investigation he/she is proven innocent of the offence.

Investigating Committee (IC) shall be set to investigate the matter and a final report shall be submitted to Managing Director before the final decision shall be taken against the culprit.

A Committee members shall comprises of Local Union 2, Senior Staff 2 and Management 1.

ARTICLE 12: ABSENCE DURING WORKING HOURS

(A) An Employee wishing to leave his place of employment will first seek permission from his department head. Any Employee who leaves his place of work without permission will be committing an offence and written warning shall be given. No Employee on shift shall leave his work without permission or reliever.

ARTICLE 13: ABANDONMENT OF EMPLOYMENT

An Employee covered by this Agreement who absents himself from work without permission shall be queried after resumption of duty and, if satisfactory answer is not given within two days, he shall have the equivalent of his pay deducted from the period of unauthorized absence. The Employer may also issue a warning letter or termination of appointment.

An Employee who absents himself for five (5) consecutive working days without giving any information whatsoever or who gives unsatisfactory explanation shall be regarded as having abandoned his employment and he/she shall be dismissed in accordance with the Labour Act 651 of 2003, Sections 15 and 62.

ARTICLE 14: TRANSFER

(A) The Employer may transfer an Employee from one station to another in the interest of the business. The Employer shall pay the Employee a disturbance allowance of the three (3) months consolidated salary if the transfer is permanent.

The Employer shall provide transport for the Employee and his family. For the purposes of this Article, an Employee’s family shall be his wife and three (3) children under 18 years of age or 21 years if attending educational institutions.

(B) Department transfer may be effected in the interest of work, but consideration should be given to the Employee’s health and qualifications. However, if the transfer is necessitated by redeployment and such transfer involves changing the Employee’s trade or job, the employee will be given the option of accepting the new job assigned or termination on grounds of redundancy.

PART 4: RIGHTS AND PRIVILEGES IN SERVICES

ARTICLE 15: ANNUAL LEAVE

ARTICLE 16: CASUAL / COMPASSIONATE LEAVE

ARTICLE 17: SICK LEAVE

ARTICLE 18: MATERNITY LEAVE

ARTICLE 19: MEDICAL TREATMENT

ARTICLE 20: PERIODIC MEDICAL CHECK-UP

ARTICLE 21:SAFETY RULES

ARTICLE 22:INDUSTRIAL ACCIDENTS

B. Thereafter, the provisions of the workman’s Compensation Law, PNDC Law 187 of 1987 regarding payment of salaries shall apply. Compensation to such employees shall be made in accordance with the workmen’s compensation law in force at time of injury.

C. Should an Employee contract an industrial disease arising out of and in the course of his employment, the company will give the Employee adequate treatment for his disease and to the extent of the facilities available and further if in the opinion of the Company’s Medical Officer further Consultation and/or medical facilities outside the Company are required, the cost of the additional treatment shall be borne by the Company.

D. Incapacitated employees may be rehabilitated in accordance with labour Regulation. Employees, who by the statutory, limitation of the law are precluded from receiving the workman’s Compensation under the Scheme, shall not be less favourable than that under Workman’s Compensation Law.

E. In addition, the company shall pay supplement of 30% of the compensation granted under the workmen’s compensation Act, to an employee. However if on review of the act the benefit under Workmen’s Compensation Law is better than this compensation shall apply without a supplement from the company.

ARTICLE 23: UNIFORM/WORK CLOTHING

A. The Employer shall provide uniforms for certain departments once a year.

Where the Employer provides the Employee with uniform/work clothing in the interest of the business, it shall be maintained at the expense of the Employer. The Employer reserves the right to deduct, under the Labour Law, the cost of the uniform/work clothing from the entitlements of any Employee who fails to return it for reasons of loss or damages, such uniform/clothing on leaving the service of the employer. The Union shall approach the Employer on all matters connected with the provision of these uniform/work clothing.

ARTICLE 24: TRAINING WITHIN INDUSTRY

B. SCHOLARSHIP SCHEME

The continued tenure of the awards will depend upon the beneficiaries’ satisfactory work and conduct at work coupled with the academic performance of the child at the School.

In the event of the dismissal, resignation, termination, death or retirement of an employee during the period of the scholarship, the beneficiary shall be allowed to complete the cycle of the facility for that particular academic year within the framework of the scheme after which the facility shall come to an end.

ARTICLE 25: TRANSPORT

ARTICLE 26: REDUNDANCY/SERVICE AWARD

A. Where for one reason or other the employer is compelled to declare a number of employees redundant, the employer shall give three calendar months notice to the Union. The notice shall enable the necessary negotiations to be made on the redundancy exercise.

The three months notice shall also be served on the affected employee or payment in lieu of notice.

The employees whose services are to be terminated owing to redundancy shall usually be determined by the performance of the employee.

B. Injury arising out of duties at MILANI LIMITED would not be used as basis for redundancy.

C. When subsequent employment arises in the same department within twelve (12) months from the date employees in that department were declared redundant, these employees shall be given preference for re-employment. It is understood that any redundant employee engaged herein, under this article shall be considered as a new employee.

D. With Reference to Article 26 where for one reason or another the employer is compelled to declare any number of the employees redundant, a Union Executive, he/she shall not be victimized by way of normal disciplinary procedures as spelt out in Article 40 shall apply to all Union Officials and Executives at all time.

ARTICLE 27: RECREATION FACILITIES

The employer shall encourage reasonable recreational activities and will co-operate with the employees in providing and maintaining equipment for such activities.

ARTICLE 28: ACTING ALLOWANCE

A. Any Employee covered by this Agreement and required to carry out full duties of a post superior to the grade in which he is normally employed shall be paid an Acting Allowance.

B. Where an Employee is required to perform such duties for not less than 11 working days, he/she shall be paid 60% of his/her consolidated salary as acting allowance for the period he/she acted or a difference between his/her consolidated salary and the minimum for the post in which he/she is acting, whichever is higher. (Managements have to use their own discretion on this Article).

C. When an Employee discharges the duties of another Employee of grade lower than the grade in which he/she is normally employed in addition to his/her normal duties, and when overtime is not required, an Ex-gratis payment shall be paid to the Employee in recognition of his/her service at the discretion of the Employer.

ARTICLE 29: NIGHT ALLOWANCE

ARTICLE 30: PER DIEM/OUT OF STATION/BOARDING AND LODGING EXPENSES

An employee who is required in the course of his duties to spend one or more nights away from his normal station of employment will be paid reasonable expenses incurred.

A. Reasonable lodging and other out of pocket expenses connected with the work shall be paid to any Employee who is required to spend the night away either from or within the country on duty.

B. LUNCH ALLOWANCE

Where an Employee spends lunch period outside his place of work on duty, he/she shall be entitled to an allowance.

ARTICLE 31: FRUSTRATED WORK

When an employee reports for duty on his normal working day and due to no fault of the employee he is ordered to leave or stop work by the Employer or any person in the authority of the Employer before the Employee can complete the days full hours of work, he shall receive the full pay for the day.

ARTICLE 32: CALL IN ALLOWANCE

ARTICLE 33: SALARY ADVANCE/SPECIAL LOAN

Salary advance not exceeding an Employee’s consolidated monthly remuneration shall be granted to an Employee in financial difficulties and deducted in full at the end of the month. However, the size and frequency shall be at the discretion of the Employer.

ARTICLE 34: ANNUAL BONUS

ARTICLE 35:PERFORMANCE TARGET

A. Every employee shall receive incentive package provided the percent targets have been achieved and some incentives have to be paid at the discretion of the employer to the employee.

B. In the event, that the said target is achieved. The production incentive shall be paid to every employee before the end of the following year.

ARTICLE 36: FUNERAL GRANT

PART 5:

ARTICLE 37: RETIRING AGE/RESIGNATION/TERMINATION

A. There shall be a voluntary retiring age of Fifty-Five (55) years for all Employees. Compulsory retiring 60 years.

B. Three months notice shall be given either side in the case of voluntary or compulsory retirement.

C. The Employer shall use his own discretion in the application of this Article.

E. When an Employee due for retirement is left with less than six months to qualify for long service award, he/she shall be deemed to have qualified for the award and shall be given the full award accordingly.

RESIGNATION:

Any employee wishing to resign from his employment shall give one month notice or one-month’s pay in lieu of notice thereof.

Resignation shall be in conformity with the Labour act of Ghana

ARTICLE 38: LONG SERVICE

ARTICLE 39: CERTIFICATE OF SERVICE

On leaving the services of the Employer, a Certificate of service shall be issued to the Employee stating the period of service to the Employer and his job titles.

ARTICLE 40:GRIEVANCE PROCEDURE

All complaints or dispute concerning violation, or non-compliance with or the application, interpretation of this Agreement but not including any requested or proposed changes in this Agreement are herein referred to as grievance and shall be settled as promptly as practicable through the follow channels:

Step 1: The employee claiming a grievance shall first discuss the grievance or request with his/her immediate departmental Head or Manager who shall consider and dispose of it promptly.

Step 2: Failing satisfactory settlement of the grievance within two (2) working days, the employee and his/her Local union Shop Steward or representative shall then discuss the grievance with the employee’s departmental head or Manager.

Step 3: Failing satisfactory settlement the grievance shall then be reduced into writing within five (5) working days after the discussion with the Departmental Head or Manager for settlement at the sub-committee level. The sub-committee made up of management and local union representatives shall endeavour to resolve is referred to it.

Step 4: Failing satisfactory settlement in step 3, the union shall within seven (7) working days refer the grievance in writing for discussion by the Standing Negotiation Committee. A meeting for discussion of such referred grievance shall be held promptly but not later than seven (7) working days after the union’s letter of request.

Step 5: Failing satisfactory settlement in step 4 the matter shall be referred to the appropriate state Authority preferably, the National Labour Commission for final and conclusive settlement.

ARTICLE 41:UNION MEMBERSHIP/CHECK OFF

A. Every Employee covered by this Agreement shall be deemed to be a member of the Union and shall pay Union dues uniformly levied against all members of the Union.

B. At the written request of the Union, the sums deducted as Union dues shall be paid out as shall be directed by the Union.

ARTICLE: 42 SHOP STEWARDS – RIGHTS AND RESPONSIBILITIES

A. Either parties of this Agreement recognize the existence of shop stewards as official representatives of the Union.

B. For the purpose of this Agreement, the shop steward shall consult or be consulted on all grievances of disciplinary measures of Employees and Management at all levels with a view to resolving the grievances.

C. Reasonable facilities shall be offered to shop stewards and Union Official during normal working hours to carry out their Union responsibilities, but they must not leave their work without first having obtained the permission from their supervisors.

D. The Union shall furnish the company with list of shop stewards and Union Officials, which shall be reviewed from time as may be necessary.

ARTICLE 43: UNION OFFICIAL/SHOP STEWARDS NOTICE BOARD/UNION OFFICE

A. The parties to the Agreement shall recognize the right of the Union designated Officials.

i. The parties to this Agreement shall recognize the role of shop stewards who are Union Representatives on the shop floor.

ii. Union Officials and Shopstewards shall intercede in matters affecting the well being of employees during normal working hours provided that permission has been obtained from the immediate supervisor.

ARTICLE 44: RESPONSIBILITIES PARTIES

A. Both parties agree that this Agreement imposes serious duties and responsibilities on the Union as well as the Employer.

B. Nothing in this Agreement will worsen any existing conditions of service.

ARTICLE 45: LEGAL ASSISTANCE FOR COMPANY DRIVERS

i. In the event of criminal proceedings being taken against a driver involved in any motor offence while driving a company vehicle in the course of his duties, the employer’s insurance company will provide legal counsel for the defence. If the driver has committed a breach of traffic regulations, he will reimburse the company any costs the company incurs in defending the action.

iii. Drivers employed by the company will have their licence renewed by the employer.

iv. The “drivers” in this sense means any one employed to drive or operate any vehicle or forklift of the company.

ARTICLE 46: PROVIDENT FUND

A. A Provident Fund Scheme shall be instituted and operated by a Board of Trustees made up of management and union representatives. Appropriate Fund Rules shall be developed by the Board of Trustees to manage the fund and disburse proceeds from the Fund.

B. The provident fund scheme contribution shall be 5% employee's' basic wage by the employer and 5% of employee's basic wage by the employees.

C. A BOARD OF TRUSTEES shall constituted to administer the fund.

D. This Provident Fund if deduct shall be paid to the Trustees at least not later than two (2) weeks after the end of the previous month.

SIGNED FOR AND ON BEHALF OF

MILANI LIMITED

………………………………….…

MANAGING DIRECTOR

SIGNED FOR AND ON BEHALF OF

UNION OF EDUCATION AGRICULTURE & GENERAL SERVICES [UNEAGES]

…………………………………………

GENERAL SECRETARY

And witnessed by:

Dated in Gomoa Akraman this 5TH day of September 2012