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MEMORANDUM OF AGREEMENT

BETWEEN

AFRO PLASTICS (K) LTD (HEREINAFTER REFERRED TO AS THE “EMPLOYER”)

AND

KENYA CHEMICAL WORKERS UNION (HEREIN AFTER REFERRED TO AS THE “UNION)

In The Terms and Conditions Of Service And Wages

1.SUBJECT MATTER

The terms and conditions of employment set out in this agreement shall be observed by both the parties referred to above and shall apply to all employees covered by the union’s registered constitution and the agreement relative to the recognition and within the terms of FKE/COTU (K) Agreement.

2.PROBATION PERIOD

The first three months of the employment shall be treated as probationary period. The services may be terminated by either party while on probation, by giving 48 hours notice.

3.WORKING HOURS

All workers will work 45 hours spread over 6 days of the week and will be allowed at least one day off during the week.

4.OVERTIME

Overtime rates will be as follows:

(a) For hours worked in excess of the normal working hours per week, at one and half times the normal hourly rate.

(b) For hours worked on normal rest days and the gazetted public holidays at twice the normal hourly rate.

5.ANNUAL PAID LEAVE

On completion of twelve month continuous employment and at the end of such consecutive periods, the employees shall be entitled to annual leave of 25 working days with full pay.

(a) In the event of statutory Public Holidays falling within the leave period, such holidays shall be added to the leave entitlements.

(b) The date of an employee’s leave shall normally fall after the completion of every twelve months of service from the anniversary date of his/her engagement and will be taken as convenient to the Company.

(c) Where employment is terminated after completion of two or more consecutive months service during any twelve months leave earning period, an employee will be entitled to pro-rata leave in respect of each completed month of service in each period, to be taken consecutively.

6.LEAVE TRAVELLING ALLOWANCE

Every employee proceeding on Annual Leave will be entitled to leave traveling allowance as follows:

1st Year-Kshs.3,500.00 per annum

2nd year-Kshs.3,800.00 per annum

3rd Year-Kshs.4,050.00 per annum

7.SICK LEAVE

After satisfactory completion of probationary period an employee shall be entitled to sick leave with full pay up to a maximum of 40 days and thereafter sick leave up to a maximum of 35 days on half pay, in each period of twelve months consecutive service, provided that such employee produces to the employer, a certificate of incapacity covering the sick leave period claimed, signed by a registered medical practitioner.

8.COMPASSIONATE LEAVE AND LEAVE OF ABSENCE

(a) An employee desirous of taking leave on compassionate grounds shall, by prior arrangements with the employer be granted such leave up to his/her earned entitlement under clause 5 of this agreement, and the leave taken shall be subsequently set off against his/her annual leave.

(b) An employee may in addition to the leave provided, in sub paragraph (a) of this paragraph be granted five days compassionate leave without pay in one year.

9.MATERNITY LEAVE

The provisions of the Employment Act, 2007 will apply.

10.INJURY BY ACCIDENT

In the event of an injury to an employee, the provisions of the Work Injury Benefits Act 2007, Laws of Kenya shall apply and the Company shall bear the cost of medical treatment in accordance with the Employment and Work Injury Benefits Act.

11.SAFARI ALLOWANCE

An employee who is absent from his/her normal place of work, on Company’s business, shall be granted safari allowances as follows:

a. Breakfast-Kshs.130.00

b. Lunch-Kshs.200.00

c. Supper-Kshs.200.00

d. Accommodation-Kshs.750.00

If meals and accommodation are provided no allowance will be paid.

12.TERMINATION OF EMPLOYMENT

After probationary period, contract shall be terminable by one month’s notice to be given by either party or payment of one month’s wages/salary in lieu of notice. Nothing shall prevent the Company to dismiss an employee for misconduct or other lawful cause.

13.UNIFORMS AND PROTECTIVE CLOTHING

An employee, who is required to wear uniforms or overalls by nature of his work or in accordance with the provisions of the Occupational Safety and Health Act, 2007, shall be issued with two pairs of uniforms or overalls free of charge by the company. Such uniforms or overalls shall be replaced with new pairs every year provided old ones are returned to the Company. The Company shall be responsible for laundering such uniforms and overalls.

14.MEDICAL TREATMENT

The Company undertakes to pay the cost of such medical treatment and medical expenses in accordance with the provisions prescribed by the Law of Kenya. The payment of such medical expenses will be made to all employees of the Company, provided that such illnesses are those covered by the Act and such treatment obtained from Central Government or Local Authority Hospitals or Clinics where available.

15.DEFINITION

Of the word “employee” will cover all employees regardless of sex.

16.REDUNDANCY

a. Definition

“Redundancy” means the loss of employment, occupation, job or career by involuntary means through no fault of an employee involving termination of employment at the initiative of the employer where the services of an employee are superfluous, and the practices commonly known as abolition of office, job or occupation and loss of employment due to the Kenyanization of a business, but it does not include any such loss of employment by domestic servant.

b. Alternative Employment

In an effort to avoid redundancy, the Company will endeavour to arrange suitable alternative employment within the Company. This employment may not be of the same grade. If the alternative employment is not acceptable to the employee concerned, he will be classified as redundant and, therefore, eligible for the entitlements outlined in clause (f).

c. Consultation

In the event of redundancy the Company undertakes to hold prior discussions with the union concerning the reasons for the extent of the intended redundancy.

d. Selection of Redundant Employees

In deciding which employees shall be declared redundant the Company will assess the relative merits, ability and reliability of the affected employee but when these factors are equal the discharge will be on the basis of seniority. Membership or not-membership of the Union will not be a factor.

e. Re-engagement

Redundant employees will be given prior consideration for re-engagement by the Company should a vacancy arise according to their qualifications.

f. Entitlement of Redundant Employees

In the event of an employee being declared redundant he shall be entitled to:

1) The normal notice of pay in lieu of notice as defined in the Agreement;

2) Payment of wages, overtime, and any other remuneration, which may be due to him/her;

3) Pro-rata leave allowance entitlements in accordance with the agreement;

4) Severance pay on the following basis;

a. Employees with up to 5 years service – 16 days pay for each completed year of service.

b. Employees with over 5 years service – 19 days pay for each completed year of service.

17.WARNING PROCEDURE

An employee who is guilty of an offence other than that of gross misconduct or other lawful cause for dismissal may be given a warning in writing which shall be recorded in his/her history record card and which he/she shall be required to sign. The signature or initials of an employee in the history record card shall not mean that the employee is pleading guilty of the offence recorded against such employee, but simply to confirm that it has been recorded during an employee’s presence or with his/her full knowledge. The employee shall be free to make an appeal against such warning in accordance with the procedure laid down by Recognition Agreement between the Company and the Union. An employee who receives three such warnings may be liable to summary dismissal if the offence or other lawful cause of which he/she is deemed to be guilty, is repeated, provided that all such warnings shall be erased from the history record card of an employee after a period of 12 months from the date of the last such warnings.

The union shall be advised of a second and third warning being given to an employee.

18.SUMMARY DISMISSAL

This will be dealt with in accordance with section 44(4) of the Employment Act (2007), which reads as follows:

(a) If, without leave or other lawful cause, an employee absent himself from the place proper and appointed for the performance of his work;

(b) If, during working hours, by becoming or being intoxicated an employee renders himself unwilling or incapable properly to perform his work;

(c) If an employee willfully neglects to perform any work which it was his duty to have performed or if he carelessly and improperly performs any work which from its nature it was his duty under his contract to have performed carefully and properly;

(d) If, an employee uses abusive language or behaves in a manner insulting to his employer, or to any person placed in authority over him by his employer;

(e) If an employee knowingly fails or refuses to obey any lawful and proper command which it was within the scope of his duty to obey, issued by his/her employer or any person placed in authority over him/her by his/her employer,

(f) If in the lawful exercise of any power of arrest given by or under any written law, an employee is arrested for a cognizable offence punishable by imprisonment and is not within ten (10) days either released on bail or on bond or otherwise lawfully set at liberty;

(g) If an employee commits or on reasonable and sufficient grounds is suspected of having committed any criminal offence against or to the substantial detriment of his/her employer or his employer’s property.

19.CERTIFICATE OF SERVICE

This will be issued in accordance with Section 51 of the Employment Act (2007), which reads as follows:

1.Every employee shall be given a certificate of service by his employer upon the termination of his employment unless such employment has continued for a period of less than four consecutive weeks, and every such certificate shall contain;

(a) The name of the employer and his postal address;

(b) The name of the employee;

(c) The date when employment commenced;

(d) The nature and usual place of employment

(e) The date when employment ceased, and;

(f) Such other particulars as may be prescribed.

2. Subject to sub-section 1 of this section, no employer is bound to give to any employee any testimonial reference or certificate relating to the character or performance of an employee.

3. Any employer who willfully or by neglect fails to give an employee a certificate of service in accordance with sub-section 1 of this section or who in a certificate of service includes a statement, which he knows to be false, shall be guilty of an offence

20.CASUAL WORKERS

Casual employees will be paid a rate, which is not less than the consolidated minimum payable to the regular employees in the same grade where they are employed or above the permanent employee’s rate.

21.JOB GRADING

Grade 1

This grade will cover skilled staff carrying out work requiring experience and skilled operation with a minimum of supervision and supervising the work of juniors.

Grade II

This will cover skilled staff carrying out work requiring experience and technical ability with moderate supervision and supervising the work of juniors.

Grade III

This grade will cover those employees whose duties require some degree of skill and/or experience. This grade will be appropriate to those employees gaining the necessary qualification for appointment to grades I and II and such employees will normally be expected to carry out duties related to the grades I and II with extra supervision during the absence of employees on those grades.

Grade IV

This grade will cover semi-skilled jobs.

Grade V

This grade will cover unskilled duties.

Allocation of Duties within Grades:

Grade I

This grade covers machine setters, technical and maintenance staff with long experience.

Grade II

Within this grade will come:

(a) Senior Moulding / Extrusion Machine Operators responsible for minor adjustments to moulding condition on their own and to maintain the condition set by the machine setter. Supervise and report.

(b) Skilled employees in engineering section whose work possess special qualifications which the company feels are to their benefit and are therefore prepared to give recognition to.

Grade III

1. Those employees who are capable of and would normally be required to assume Grade II duties in the absence of the normal Grade II employees.

2. Driver for Light Commercial Vehicles.

3. Employees in a position requiring some degree of skill but not of the level required for a Grade I operator.

4. Any other employee who in the estimation of the Company possesses a skill, experience or other special attribute worthy of recognition although the employee concerned is not normally engaged on Grade III duties.

5. Newly employed maintenance staff, un-graded, artisan, etc, with little experience or qualifications.

Grade IV

1. Machine attendant who are capable to run their machines without much troubles.

2. Any other employee who in the estimation of the company

possesses a skill, experience or other special attribute worthy of recognition although the employee concerned is not normally engaged on Grade IV duties.

Grade V

1. All unskilled staff.

2. All those newly recruited machine attendants undergoing training in their respective machine.

Clerical Grade

Clerical Grade 1 — Senior/General Clerk carrying out responsible work.

Clerical Grade II — Stores Clerk, Dispatch Clerk, Copy Typist, etc carrying out miscellaneous routine duties with supervision.

Clerical Grade III —Clerks with little or no experience, or newly employed clerks.

22. BASIC MINIMUM RATES OF PAY

Grades Basic Minimum Wages as at
2011 July 2012 July 2013 July
Grade V 9,970 10,867 11,954
Grade IV 11,159 12,164 13,380
Grade III 13,288 14,484 15,932
Grade II 15,173 16,538 18,192
Grade I 16,717 18,221 20,043
Clerical Grade III 12,742 13,889 15,278
Clerical Grade I 13,292 14,489 15,937
Clerical Grade I 15,169 16,535 18,188

All unionisable employees employed with the company would receive pro-rata percentage increases as enjoyed by those on the basic minimum wage on the above mentioned review dates.

The pro-rata percentage increases are as follows:

1 July 2011-8.5% on wages as at 1July 2010

1 July 2012-9.0% on wages as at 1 July 2011

1 July 2013-10% on wages as at 1 July 2012

23.HOUSE ALLOWANCE

The following rates of house allowance will apply for the term of the agreement:

1st Year-Kshs.3,050/- per month

2nd Year-Kshs.3,300/- per month

3rd Year-Kshs.3,550/- per month

24.RETIREMENT/GRATUITY BENEFITS

An employee who has completed two continuous years of service and over with the Company, will be entitled to the following benefits, on retirement:

(a) Employees with up to five years of service - 16 days pay for each completed year of service.

(b) Employees with over 5 years of service - 19 days pay for each completed year of service.

Provided that:

1. The service of the employee for this purpose shall be deemed to have commenced no earlier than 1st July 1986.

2. An employee who resigns, or is Summarily Dismissed by the Company on gross misconduct shall not benefit under this clause.

3. The retirement age, specified for this purpose is fifty five years, or where an employee is retired on medical grounds by a registered hospital, or if the Company terminates the employment of the employee before he /she attains the retirement age.

25.SHIFT DIFFERENTIAL ALLOWANCE

Employees who are working on night shift will receive a shift differential allowance as follows:

1st year-Kshs.28/- for each night worked

2nd year-Kshs.30/- for each night worked

3rd year-kshs.32/- for each night worked

26. ACTING CAPACITY

An employee temporarily acting in a higher grade job than his/her normal job will receive the minimum salary for that grade, after completion of six consecutive days or more in that capacity. On return to his/her normal job, they will revert to their normal pay immediately.

27.FUNERAL EXPENSES

The Company will contribute Kshs.27,000/- in the event of death of an employee for funeral and burial expenses.

28.BAGGAGE ALLOWANCE

The company will contribute Kshs.7,000/- on retirement or death of an employee to assist the employee to ferry his belongings to the employees’ place of retirement or burial.

29.EFFECTIVE DATE AND DURATION

This agreement shall be effective from 1st July 2011 and shall remain in force for a period of three years from that date. Thereafter it shall continue to be in force until both parties amend it.

SIGNED FOR AND ON BEHALF OF AFRO PLASTICS (K) LIMITED

________________________________

EKYA SHAH

DIRECTOR

SIGNED FOR AND ON BEHALF OF KENYA CHEMICAL WORKERS UNION

________________________________

W.D. OGUTU(OGW)

NATIONAL GENERAL SECRETARY

WITNESSED BY

____________________________________

JAMES O. BURA

AREA SECRETARY – NAIROBI, CENTRAL AND EASTERN PROVINCES

________________________________________

JACOB ODUNDO

BRANCH SECRETARY – RUARAKA AND KAHAWA BRANCH

________________________________

ANTHONY KYALO

SHOPSTEWARD

_______________________________

IN THE PRESENCE OF

L.W KARIUKI

HEAD OF INDUSTRIAL RELATIONS SERVICES

SINGED IN NAIROBI THIS ……….. DAY OF ……………. 2013

Afro Plastics Kenya Ltd - 2011

Start date: → 2011-07-01
End date: → 2014-07-01
Name industry: → Manufacturing
Name industry: → Manufacture of rubber and plastic products
Public/private sector: → In the private sector
Concluded by:
Name company: → Afro Plastics Kenya Ltd
Names trade unions: → Kenya Chemical and Allied Workers Union

TRAINING

Training programmes: → Yes
Apprenticeships: → No
Employer contributes to training fund for employees: → No

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 75 %
Maximum days for paid sickness leave: → 75 days
Provisions regarding return to work after long-term illness, e.g. cancer treatment: → 
Paid menstruation leave: → No
Pay in case of disability due to work accident: → Yes

WORK AND FAMILY ARRANGEMENTS

Maternity paid leave: → 13 weeks
Maternity paid leave restricted to 100 % of basic wage
Job security after maternity leave: → Yes
Prohibition of discrimination related to maternity: → No
Prohibition to oblige pregnant or breastfeeding workers to perform dangerous or unhealthy work: → 
Workplace risk assessment on the safety and health of pregnant or nursing women: → 
Availability of alternatives to dangerous or unhealthy work for pregnant or breastfeeding workers: → 
Time off for prenatal medical examinations: → 
Prohibition of screening for pregnancy before regularising non-standard workers: → 
Prohibition of screening for pregnancy before promotion: → 
Facilities for nursing mothers: → No
Employer-provided childcare facilities: → No
Employer-subsidized childcare facilities: → No
Monetary tuition/subsidy for children's education: → No
Paid leave per year in case of caring for relatives: → 5 days

EMPLOYMENT CONTRACTS

Trial period duration: → 90 days
Part-time workers excluded from any provision: → 
Provisions about temporary workers: → 
Apprentices excluded from any provision: → 
Minijobs/student jobs excluded from any provision: → 

WORKING HOURS, SCHEDULES AND HOLIDAYS

Working hours per week: → 45.0
Working days per week: → 6.0
Paid annual leave: → 25.0 days
Paid annual leave: → 4.0 weeks
Provisions on flexible work arrangements: → 

WAGES

Wages determined by means of pay scales: → Yes, in one table
Wages specified according to skill level: → 0
Wages specified according to job title: → 0
Provision that minimum wages set by the government have to be respected: → No
Agreed lowest wage per: → Months
Lowest wage: → KES 11954.0
Adjustment for rising costs of living: → 0

Premium for evening or night work

Premium for evening or night work: → KES  per month
Premium for night work only: → Yes

Payment for standby work

Payment for standby work: → 100 % of basic wage
Payment for standby work Sundays only: → No
Payment for standby work all days per week: → Yes

Premium for overtime work

Premium for Sunday work

Premium for Sunday work: → 100 %

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
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