New

MEMORANDUM OF AGREEMENT BETWEEN SAMEER AFRICA LIMITED AND AMALGAMATED UNION OF KENYA METAL WORKERS

SECTION A

1. PREAMBLE

The parties to this Agreement, meeting together in free and voluntary association, have determined to regulate the relations between them in the interest of the promotion of sound industrial relations, the economic well-being of the industry, its workers and management. In order to achieve these aims they have agreed to provide:

(a) Machinery for speedy settlement of Industrial disputes;

(b) A channel of communication between Sameer Africa Limited and its employees:

(c) Collective bargaining machinery for negotiations on these terms and conditions of service as listed hereafter and employees listed in Appendix ‘A’

2. PARTIES TO THE AGREEMENT

Sameer Africa Ltd. and the Amalgamated Union of Kenya Metal Workers hereby agree that all matters regarding guarantees and negotiating machinery and procedures wherein it is stated or implied shall in full apply to the Company in good standing with items which inclusive as guarantees and negotiating machinery and procedures shall be adopted in full and as amended from time to time by way of negotiations between the Company and the Union in so far as those amendments or changes do not infringe on terms which are negotiable only between the Company and the Union.

3. RECOGNITION

Sameer Africa Limited accords full recognition to the Amalgamated Union of Kenya Metalworkers as the sole labour organization representing those employees listed in Appendix ‘A’ of this Agreement for such matters as are listed hereafter provided that, and for so long as the Union continues to be fully representative of categories of employees in Sameer Africa Limited.

4. GUARANTEES

a) The parties to this Agreement guarantee that representatives of both sides shall discharge their duties in an independent manner without fear that their individual relations with the company or the Union will be affected in any way by any action taken by them in good faith while acting as a representative.

(b) The company undertakes not to victimize or intimidate any employee or employees for being a member of the Union.

(c) The Union also undertakes that it should not intimidate any employee or employees for not being a member or members of the Union.

(d) Whilst recognizing that the question for Union membership is entirely a matter for individual choice, the Company nevertheless, accepts that in the interest of maintaining the required standard of organization, Union membership for such employees as are covered by this agreement should be maintained at the highest level.

(e) The Company undertakes not to interfere with the normal affairs of the Union in any manner whatsoever.

(f) The Union undertakes that employees who are Union representatives will carry out the duties delegated to them by Management during working hours and such representatives will not leave places of work for any purpose in connection with their duties as Union representatives without first obtaining the permission of management which permission shall not be unreasonably withheld.

(g) In the event of a strike or other action leading to stoppage of work, security and sanitary staff will continue to perform their normal duties, in the interest of both parties to this agreement, and the Union agrees that it will use its influence to achieve this end. If such employees being unionisable and are required by the employer to undertake duties other than their normal functions, the Union reserves the right to withdraw their service.

(h) The Union agrees that normally no strike shall be called for employees of the Company on any matter arising from a dispute with a non-member. It is accepted, however, that the Union may after giving the Company seven days written notice, call out on strike employees of the Company provided that all existing machinery for the settlement of such a dispute has been fully exhausted. Prior to and during the period of strike both parties will use their best endeavors to assist in the settlement of such a dispute.

(i) The Company undertakes to advise the Union of the names of their officials and representatives of the Joint Industrial Council and the Union undertakes to advise the Company of the names of their officials and representatives.

(j) To ensure the widest representation of the union members on negotiating bodies and adequate provisions whereby claims, grievances or disputes can be speedily and effectively dealt with, the Union undertakes to elect annually, amongst its members, representatives from the Company and to hold elections for Shop Stewards. Such representatives shall be eligible to serve on the negotiating bodies set out in Clause 5A, B and C.

(k) The Company undertakes to accord such facilities as are mutually agreed as being necessary for such officials and representatives of the Union to carry out their duties as representatives of their members at their place of work.

(l) Nothing in this agreement should deprive any employee of his right to approach management on any personal claim or grievance, which he may have.

(m) All agreements jointly reached between the Company and the Union, or their representatives, through the medium of negotiating machinery or otherwise shall be committed in writing and signed by representatives of both parties.

(n) The Company and the Union undertake to ensure their members fully comply with the terms of this Agreement and the grievance and negotiating procedure set out herein and to take all possible steps to bring to an end as speedily as possible any action taken by their members at variance with the terms of this Agreement or any other negotiated Collective Agreement.

5. NEGOTIATING MACHINERY AND PROCEDURE

A). LOCAL NEGOTIATING COMMITTEE

(i) A local Negotiation Committee shall be formed within the Company at its principal place of business and in all branches of the Company where applicable.

ii) The local Negotiating Committee shall consist of not more than five representatives nominated by the Company and not more than five employees’ representatives elected in accordance with Clause 4 (j) above. All members of the Local Negotiating Committee shall be in the employment of the Company concerned. A quorum shall not be less than three representatives from each party.

(iii) The Local Negotiating Committee shall meet as and when necessary to consider claims of grievances affecting only the employees of the Company concerned at the particular site or locality. The committee shall regulate its own procedure and elect its own Chairman and Secretary. Meeting to be convened within 22 days from the date of reporting the grievance.

(iv) Provided that any such claims or grievances shall be raised in the first instance by a Union representative with the immediate Supervisors of the particular department or place of work within 7 days of the occurrence giving rise to the claim or grievance.

(v) In the event of failure to reach settlement of the matter at the Local Negotiating committee the Chairman of the Local Negotiating Committee shall refer it to the Joint Industrial Council within 7 days of such failure.

B) JOINT INDUSTRIAL COUNCIL

(i) The function of the Joint Industrial Council shall be to negotiate on all matters detailed in the Company/Union Agreement and all matters referred to it by the Local Negotiating Committee.

(ii) The Joint Industrial Council shall consist of not more than five members nominated by the company and not more than five members nominated by the Union. A quorum shall not be less than three representatives from each party.

(iii) The Joint Industrial Council shall meet as and when necessary. It shall regulate its own procedure and shall elect its own Chairman and appoint its own Secretary or Secretaries.

It may also co-opt, where necessary members of the Local Negotiating Committee or expert witnesses. It may also set a sub-committee or committees to try to settle any problem that may arise at the Joint Industrial Council.

(iv) The expenses of the Joint Industrial Council if any shall be met by the Company and the Union in equal shares unless otherwise agreed.

(v) A meeting of the Joint Industrial Council shall be convened within five days of request for a meeting from either the Union or the Company or within five days of receipt of a report from the Local Negotiating Committee.

Such request or report shall state the matter or matters to be discussed and will be placed on the Agenda providing such matters are properly the concern of the Joint Industrial Council.

(vi) Matters referred to the Joint Industrial Council by the Local Negotiating Committee may be referred back to the committee in writing if in the opinion of the Council such matters have not been properly or thoroughly dealt with by the Local Negotiating Committee.

(vii) In the event of failure to reach settlement at the Joint Industrial Council within seven days either party may refer the matter in dispute to the Minister for Labour.

(viii) No lockout, strike or other action to hinder the operation of the business of the Company shall take place on matters referred to the Minister for Labour nor whilst being dealt with in accordance with the laws of Kenya or by a conciliation or investigation within the specified period. Thereafter, if a lockout, strike or other Industrial action is contemplated, seven days written notice of the intended action shall be given to the other party.

C. JOINT CONSULTATIVE MACHINERY

(i) The Company and the Union mutually recognize the desirability of works council in the Company consisting of representatives only from both Management and employees of the Company.

(ii) The functions of those Councils shall be that of a consultative body only on matters not included in Appendix ‘A’ to this Agreement and which are in normal practice not regarded as subject for negotiations between the Company and the Union.

(iii) It is hereby agreed that the subjects set out in Appendix ‘D’ to this Agreement are not to be regarded as subjects for negotiation between the Company and the Union.

D. PROMOTIONS

As a matter of principle and without prejudice to Management’s prerogative to use its sole discretion in making decisions regarding promotion of workers at all levels, it is mutually recognized that all relevant factors such as qualifications, experience, capability and efficiency, seniority with the Company, leadership qualities and so on shall be taken into account when employees are considered for promotion.

SECTION B

SAMEER AFRICA LTD AND AMALGAMATED UNION OF KENYA METAL WORKERS

AGREEMENT ON TERMS AND CONDITIONS OF SERVICE

CLAUSE ITEM CLAUSE ITEM
1 WAGES 17 TERMINATION OF SERVICE
2 HOUSING ALLOWANCE 18 SUMMARY DISMISSAL
3 WORKING HOURS 19 REDUDANCY
4 OVERTIME PAYMENT 20 PROTECTIVE GEAR
5 SHIFT ALLOWANCE 21 MINIMUM AGE
6 ANNUAL LEAVE 22 RETIREMENT
7 COMPASSIONATE LEAVE 23 UNION OFFICIALS
8 PUBLIC HOLIDAYS 24 CHECK-OFF
9 RELIGIOUS HOLIDAYS 25 CONFLICTING OUTSIDE INTERESTS
10 SICK LEAVE 26 SUSPENSION
11 MEDICAL ATTENTION 27 DISTURBANCE ALLOWANCE
12 MATERNITY /PATERNITY LEAVE 28 ABSENTEEISM
13 SAFARI SUBSISTENCE ALLOWANCE 29 CASUAL EMPLOYMENT
14 ACTING APPOINTMENT 30 GROUP PERSONAL ACCIDENT INSURANCE
15 PROBATION 31 DEATH OF AN EMPLOYEE/SPOUSE
16 WARNING PROCEDURE 32 TRANSPORT/ COMMUTER ALLOWANCE
33 EFFECTIVE DATE AND DURATION OF THE AGREEMENT.

CLAUSE 1: WAGES

UNIONISABLE GRADES

An employee shall be hired into a specific classification which shall be included within one of the grades referred to as Unioniseable Grades 1 - 8 and shall be considered to be training status until he reaches an efficiency level established by the company as 100% efficiency. Until an employee reaches the 100% efficiency level, he will receive increases from his starting rate to the Basic Wage Rate when he reaches and maintains for one week an efficiency level of 40%, 55%, 70%, 85% in proportion to the basic wage rate of the grade in which he is hired. Wages shall be computed on an hourly basis but the fact that an employee’s wages are computed on an hourly basis shall not be construed to mean that the employee is on temporary employment.

The average working month is taken to be 195 hours.

There shall be guaranteed minimum wage below which the workers will not be paid in the event of the Company being unable to provide work for the whole month. The guaranteed minimum shall be equivalent to 187.5 hours pay.

GRADE MONTHLY MINIMUM BASIC HOURLY WAGE RATE
Effective October 1, 2010 Effective October 1, 2011 Effective October 1, 2010 Effective October 1, 2011
UG1 25,163 26,925 134.20 143.60
UG2 25,913 27,722 138.20 147.85
UG3 27,169 29,081 144.90 155.10
UG4 29,972 31,266 159.85 166.75
UG5 31,594 33,806 168.50 180.30
UG6 34,631 37,059 184.70 197.65
UG7 36,938 39,525 197.00 210.80
UG8 38,991 41,719 207.95 222.50

CLAUSE 2: HOUSING ALLOWANCE

Employees shall be paid Housing Allowance at the rate of Kshs. 5,300.00 for the 1st and 2nd year.

CLAUSE 3: WORKING HOURS

a) Shift workers - 45 hours per week

b) Security Staff - 45 hours per week

The 45-hour week is the subject of Union/Company Agreement, and is compensated for by a 1.11% factor being included in the hourly rate. (Refer to APPENDIX E)

c) Clerical Staff - 44 hours per week

d) The working hours shall be spread over six days in a week. The normal shift is 7.5 hours per day.

e) The factory shall operate on a three-shift - four-crew system.

f) Employees covered by 4crew 3shift system who have worked over and above 165hours in a month are assured payment of 195hours for that month.

CLAUSE 4: OVERTIME PAYMENT

1.The overtime rates are:-

Normal weekly hours: Time worked X (1.5) basic hourly rate

Employees’ Rest day (Weekly off) and Public Holidays: Time worked X (2) basic hourly rate.

2.Overtime payments will be calculated on daily basis when number of hours worked in a day exceeds 7.5.

3.Employees who will be working on 3crew 3shift system shall be paid overtime at twice the normal rate whenever they are required for work on Sundays and gazetted Public Holidays.

CLAUSE 5: SHIFT ALLOWANCE

All shift workers will be paid a Shift Allowance of Kshs.1,000.00 for the 1st and 2nd year to compensate them for the inconvenience involved in performing Shift work. This allowance will not be considered a part of the basic pay.

CLAUSE 6: ANNUAL LEAVE

1. A minimum 23 working days’ leave, excluding Public Holidays, will be granted on full pay, for each period of 12 months’ consecutive service PROVIDED THAT:

a) those workers who have completed more than 5 years of service shall be granted 25 working days annual leave exclusive of Public Holidays/rest days, and

b) those workers who have completed more than 10 years of service shall be granted 28 working days exclusive of Public Holidays/rest days

c) those workers who have completed more than 15 years of service will be granted 28 working days exclusive of Public Holidays/rest days.

2.An additional four days unpaid leave in respect of traveling time may be granted.

3.The full leave period must be taken at one time, except that the employer has the right, on compassionate grounds only and at his own discretion, to allow otherwise.

4. After 9 month’s consecutive service, the employee shall be entitled to the full period of annual leave.

5. a) Any employee who leaves his employment after having completed his probationary period shall be entitled during any 12 months leave- earning period to leave, or pay in lieu thereof calculated on a Pro-rata basis.

b) If, on termination of service, an employee is given pay in lieu of notice, then he must be paid for the leave due to him because an employee cannot be sent on leave after he has received his final payment and his service been terminated.

6. Annual leave should normally be taken within the period covered by 3 months before and six months after the anniversary of the employee’s engagement, which date shall be known as his “leave date”, provided that, should an employee wish to do so, he may apply to the engagement for permission to accumulate all or part of his annual leave entitlement. Such application must be made not later than 6 months after the “leave date”.

7. Permission for such accumulation shall not be unreasonably withheld and it shall be the duty of the Management to confirm its decision in writing to the employee concerned.

8. When the Management agrees accumulation of leave, it must not, in any case, exceed two year’s entitlement.

9. Leave not taken and not accumulated as above shall automatically lapse.

10. Leave Traveling Allowance

All Unioniseable employees are to be paid leave traveling allowance when they proceed on their annual leave. The leave traveling allowance payable will be 2% of annual basic wage:-

GRADE UG1 UG2 UG3 UG4 UG5 UG6 UG7 UG8
Effective October 1, 2010 6,280.60 6,467.75 6,781.30 7,481 7,885.80 8,643.95 9,196.60

9,732.10

Effective October 1, 2011 6,720.50 6,919.40 7,258.70 7,803.90 8,430.10 9,250.00 9,865.45

10,401.30

CLAUSE 7: COMPASSIONATE LEAVE

Special leave on compassionate grounds may be granted provided that satisfactory proof of the necessity for such leave is produced. This leave will be either paid or unpaid or deducted from the annual leave entitlement in the light of the evidence produced before or after the leave by the employee.

CLAUSE 8: PUBLIC HOLIDAYS

Employees shall normally be granted leave with full pay for all Gazetted Public Holidays, provided that an employee who is required to work on such holidays shall be paid double time for the period worked.

CLAUSE 9: RELIGIOUS HOLIDAYS

If leave is granted for religious holidays other than those Gazetted by the Government, such leave will normally be without pay or, if paid, will be deducted from the employee’s annual leave entitlement.

PROVIDED THAT the decision whether or not to grant absence on such religious holidays with pay or without pay or with the day(s’) leave deducted from employee’s leave entitlement shall be at the discretion of the Management.

CLAUSE 10: SICK LEAVE

1 (a) In the event of illness, the period during which the payment of sick leave is obligatory, during any one calendar year is 3 months full pay followed by 3 months half pay.

(b) In appropriate cases, the period indicated above MAY be extended by Management up to a maximum of 4 months on full pay on production by the employee of a certificate, covering his continued unfitness for duty, signed by an approved registered medical practitioner.

PROVIDED THAT:

1. i) The employee has completed the appropriate probationary Period.

ii) The employee produces a medical certificate, authorizing such sick leave, signed by an approved registered medical practitioner.

2. Sick leave may not be accumulated from year to year.

3. No person shall be eligible for sick pay in respect of any incapacity due to gross neglect

on his own part.

4. An employee who is injured while on duty and who becomes incapacitated as a result of such injury will be on full pay until certified fit to resume duty, up to a maximum of six months.

5.In event an employee is unfit to resume, duty after exhaustion of the sick leave the Company shall seek the opinion of its doctor on his health status. Upon recommendation by the doctor on the employees' ability to resume duty, the company shall proceed to retire the employee on medical grounds. Should the employee dispute the company doctors opinion, he may seek second opinion from own doctor. If report from own doctor contradicts report of company doctor, the company shall apply to the Director of Medical Services for the setting up of a Medical Board and the decision of the Medical Board shall be binding to both parties.

CLAUSE 11: MEDICAL ATTENTION

A. 1. Employees are entitled to treatment at the Company Medical Clinic.

2. Should medical attention beyond the scope of the Company Clinic be necessary, the Clinic may refer an employee to a medical practitioner or institution nominated by the Company. Prescribed treatment may include hospital admission.

3. The employee will pay 10%, and the Company will pay 90% of the treatment charges remaining after the NHIF benefit has been deducted, up to a Company liability ceiling of Kshs. 55,000 in any one calendar year. The 10% employee contribution will be recovered from the employee’s pay in three equal monthly installments.

4. In the case of an employee who is not hospitalized, but needs to buy drugs, the Company will reimburse the employee 90% of the cost of drugs purchased by him or her, only to prescriptions issued by the said nominated practitioners or institutions, and only for instances referred by the Company Clinic.

5. Only in the case of genuine emergency, and only when prior reporting to the Company Clinic is not practicable, will payment be made by the Company for treatment obtained by an employee from a practitioner or institution other than as specified above. The Company reserves the right to refuse payment in such instances.

B. DEPENDANTS

Employees may utilize up to the maximum of the entitlement mentioned in A(3) above in respect of registered dependants. 50% of this amount may be utilized by the dependants on outpatient treatment at company-approved institutions. The meaning of dependant in this context refers to one designated spouse and four designated children less than 18 years of age. Other details and rules governing this aspect of the medical program shall be issued to each employee by the Company.

CLAUSE 12: MATERNITY/PATERNITY LEAVE

a.Maternity leave for female employees shall be three (3) months with full pay.

b.Paternity leave for male employees shall be two (2) weeks with full pay if the employee provides approved documentary evidence to the Industrial Relations Office.

Such employees proceeding on their maternity/Paternity leave shall be entitled to leave traveling allowance as provided for in Clause 6 of this Agreement.

CLAUSE 13: SAFARI SUBSISTENCE ALLOWANCE

When an employee is required to proceed on duty away from his normal place of work, and such absence involves the purchase of meals away from home, he shall be entitled to Safari Subsistence Allowance at the rates shown below:

Meals

Breakfast: Kshs.180.00

Lunch:Kshs.280.00

Supper:Kshs.295.00

Total: Kshs.755.00

Should the absence necessitate a night stop away from his place of residence, then the employee shall, in addition to the above, be entitled to night-stop allowance of Kshs.1, 150.00.

CLAUSE 14: ACTING APPOINTMENT

(a)An employee required to act in a higher grade for any period in excess of 6 days, shall be paid his own salary plus 25% of the salary of the person for whom he is acting, or the salary of the person for whom he is acting, whichever is the less.

(b)No acting appointment on a substantively vacant position shall be in excess of four (4) months.

(c) Any employee who acts for more than six(6) continuous days shall be issued with an acting letter

CLAUSE 15: PROBATION

Unskilled Workers (Grade I only)

Probation period - 1 Month

Notice required - 1 Week

Skilled Workers (Grade II and above)

Probation period - 3 Months

Notice required - 2 Weeks

CLAUSE 16: WARNING PROCEDURE

1.An employee who is guilty of an offence other than gross misconduct or other lawful cause for dismissal may be given a written warning, which shall be entered in the employee’s employment record file and shall remain valid for a period of twelve months from the date of issue.

2.If within the twelve months’ period, the employee commits a similar or any other offence, which does not warrant dismissal, he will be further warned in writing and the warning entered in his employment record file and the two warnings shall remain valid for a period of 12 months from the date of the second warning.

3.If, within this twelve months’ period the employee commits a further offence, which does not warrant dismissal, he will be issued with a final letter of warning, which makes him liable to SUMMARY DISMISSAL for any other offence, which he may commit within the next twelve months.

4.Copies of all warning letters shall be sent to the Chief Shop steward of the Company or to any other person acting as such during his absence and, in addition, a copy of the FINAL warning letter shall be sent to the General Secretary of the Union.

CLAUSE 17: TERMINATION OF SERVICE

After the completion of the probationary period, notice of termination of employment may be given by either party to the other in writing in accordance with the length of service of the employee with the employer; thus:-

a) From completion of probationary period to 5 years’ service: 1 month’s notice or pay in lieu of notice.

b) From 5 years but under 10 years’ service: 2months’ notice or pay in lieu of notice.

c) From 10 years onwards: 3 months notice or pay in lieu of notice.

d) Provided that an employee who resigns or whose services has been terminated by the company shall be paid terminal benefits/service gratuity of 19 days pay for each completed year of service calculated at the rate being earned at a such termination but where an employee is covered by an existing provident fund, he should get the benefits most advantageous to him either from the existing provident fund or under this agreement, but NOT both.

NB: Payment in lieu of notice to include house allowance.

CLAUSE 18: SUMMARY DISMISSAL

The company may summarily dismiss an employee if it is satisfied that he has committed any of the following offences:

a) If without leave or other lawful cause, an employee absents himself from work and that the company is not informed within seven (7) days.

b) Neglecting to perform company duties or performing them carelessly and improperly if it was his duty to do it properly.

c) Sleeping within company premises while on duty.

d) Refusal to perform work assigned or display willful insubordination or disobedience to his Supervisors.

e) Willful or negligent violation of public safety rules.

f) Failure to perform required overtime work without satisfactory reasons.

g) Divulging confidential information to any unauthorized person (s)

h) If during working hours, he is found to have drunk spirituous or intoxicating liquors or used prohibited drugs to such extent of incapacitating him from properly performing his duties.

i) If proven that he has converted company property into personal use without approval, fraud or willful damage to company property and being in unauthorized possession of company property or property entrusted to the company by a third party.

j) Failure to account for monies received by him on behalf of the company.

k) Falsification of company records and willful misrepresentation of facts.

l) Using abusive or insulting language or behaving in a manner insulting to his employer or any person placed in authority over him by his employer.

m) Engaging in conducts likely to bring the company into disrepute with the members of the public.

n) Fighting within company premises.

Entitlement on Dismissal

Employee summarily dismissed will be entitled to his salary, applicable allowances, overtime and earned leave if any up to the date of dismissal.

He shall also be paid terminal benefits/service gratuity of 18 days pay for each completed year of service calculated at the rate being earned at a such termination but Where an employee is covered by an existing provident fund, he should get the benefits most advantageous to him either from the existing provident fund or under this agreement, but NOT both.

CLAUSE 19: REDUNDANCY

1.Redundancy shall mean the loss of employment, occupation, job or career through no fault of an employee involving termination of employment at the initiative of the employer where the services of the employee are superfluous, and includes the practices commonly known as abolition of office, job or occupation retrenchment, or any other term giving rise to loss of employment.

2. In the event of Redundancy, the Company undertakes to give the Union the reasons for and the extent of the intended Redundancy.

a) If the Union wishes to contest the necessity for such redundancy, it shall do so within fifteen days of receipt of the above advice (by meeting the Company).

b) If the Union does not communicate with the Company within the fifteen days referred to in (a) above, the matter may immediately be referred to the Joint Industrial Council.

c) If an agreement is reached at the meeting referred to in (b) above or at the Joint Industrial Council Meeting, this agreement, duly signed by both parties shall be referred to the Ministry of Labour for the formal approval of the Industrial Court.

d) If no agreement is reached at the Joint Industrial Council, then the matter may be referred to the Minister for Labour as a Trade Dispute with a request for appropriate action.

3. The principles covering redundancy as set out in the Industrial Relations Charter are accepted by both the Company and the Union.

4. If, at a later date the position of the Company should improve to such an extent that it wishes to engage staff, then, in considerations for employment, preference will be given (within a particular category and trade) to those employees who were previously declared redundant.

5. Should an employment opportunity occur in the particular category and trade of an employee previously declared redundant, but in a lower grade than which the employee occupied prior to being declared redundant, then he shall still be offered the job but, if he wishes to take the lower grade job he shall signify his voluntary acceptance thereof and shall have no right to his previous grade.

6. When, with the agreement of the Union and/or the approval of the Industrial Court, an employee is declared redundant, he shall be paid for severance 16 days and service gratuity 19 days basic wage or salary for each completed year of service with the Company, having been paid the appropriate notice in accordance with the Clause 17 of this Agreement (Termination of Service)”. Payment in respect of completed months, over and above completed years, will be calculated on a pro-rata basis.

7. An employee declared redundant will be entitled to 100% of his Basic monthly salary as Baggage Allowance to cover the cost of transporting personal effects.

CLAUSE 20: PROTECTIVE GEAR

FREE PROTECTIVE GEAR INCLUDING SAFETY SHOES AND OTHER MATERIALS SHALL BE ISSUED BY THE COMPANY ANNUALLY TO ALL MANUAL WORKERS, SUBJECT TO THE FOLLOWING:

a)The protective gear including shoes and other protective materials shall remain the property of the Company.

b)The Company shall have the right to decide whether or not employees are required to keep the protective gear issued for their use at their place of work.

c)Employees must wear safety gear at all times in their place of work.

d)Other details and rules governing the use and maintenance of Protective Clothing shall be decided by the Company.

CLAUSE 21: MINIMUM AGE

It is against the company policy to engage persons who have not attained the age of eighteen (18) years.

All employees over the age of eighteen (18) years will be paid in accordance with the Clause 1 of this Agreement.

CLAUSE 22: RETIREMENT

1.When employees are retired on reaching the retirement age fixed by the Company or on the grounds of ill health, the following payment will be made:-

a) Under 6 years’ service: 22days basic wage per completed year of service.

b) 6 years service or more: 29 days basic wage per completed year of service.

2.Optional early retirement may be taken under the same conditions of payment as in (1) above, at the age of 50 years or over, provided that three (3) months notice of intention to retire is given, and provided that 10 years’ continuous service has been attained.

3.On completion of 1 years’ service, a part of any subsequent year in excess of 6 months will count as a completed year of service for the purpose of calculating the above payment.

4.Where an employee is covered by an existing provident fund he should get the benefits most advantageous to him either from the existing provident fund or under this agreement, but NOT both.

5. In the case of the death of an employee while in the service of the Company, the Company will pay to the dependent relatives of the deceased the sum of the money calculated in accordance with the above clauses and entered on his record of service. The words “dependent relatives” shall have the meaning provided in Section 21 of the National Social Security Fund Act 1965.

6.The Company is under no obligation to pay retirement benefits to employees who resign (See Industrial Court Case No.17 of 1968 - Interpretation) but the Company is nevertheless entitled to use its discretion in this matter.

7.On retirement, an employee will be entitled to 100% of his Basic monthly salary as Baggage Allowance to cover the cost of transporting personal effects.

CLAUSE 23: UNION OFFICIALS

Without upsetting Management’s prerogative to transfer or terminate the service of employees, the Company is asked to advise the Union, whenever possible, when a Union Official is to be transferred or to be declared redundant.

CLAUSE 24: CHECK-OFF

1. A new employee shall automatically become a member of the Union. However, when an employee indicates his wish to revoke his check-off authorization, the Management will provide him with the normal revocation form for his completion.

2. If any employee declares his wish to revoke his check-off authorization in writing then the Management will have to cease deducting Union Dues from the end of the following month and inform the union to take up the process of gazettement of agency fees. (This is in accordance with the Labour Relations Act 2007 section 49(i).

3. If the employee does not complete the form, the deduction of Union Dues will continue.

4. Employees who are not members of the union and are benefiting from the CBA negotiations will be deducted agency fees as gazatted by the minister

CLAUSE 25: CONFLICTING OUTSIDE INTERESTS

1. Whilst every employee is entitled to use his leisure hours for his own benefit, it must be borne in mind that all employees owe a duty of fidelity to their respective full-time employers.

2. An employee may not of his own volition during his term of employment engage himself for reward in any business with an established customer who has normally dealt with his employer, and shall not at any time do anything for reward which might inflict harm on his employer’s business.

3. This duty of fidelity varies with each employee depending on his seniority and the confidential position, which he may enjoy with Sameer Africa Limited.

CLAUSE 26: SUSPENSION

When an employee is suspended from duty for any reason, such suspension shall be on full pay for up to two months. From then onwards, the suspension shall be without pay pending the resolution of the matter. If the employee is found innocent, he shall be paid for the days he was under suspension.

CLAUSE 27: DISTURBANCE ALLOWANCE

1. When an employee is transferred from one town to another he shall be paid as follows by way of Disturbance Allowance.

With effect from 1.10.2010:- Kshs. 26,000.00

With effect from 1.10.2011:- Kshs. 26,000.00

2. The Disturbance Allowance does not, of course, include the fare or fares for an individual and, if applicable, his family, which must be in addition.

CLAUSE 28: ABSENTEEISM

Any employee who is absent for a total of 7 days in any one calendar year, without permission, will be deemed to have left his employment and will not be allowed to return to his workplace unless he produces satisfactory evidence that such absence was warranted.

CLAUSE 29: CASUAL EMPLOYMENT

1. Casual employment shall be undertaken for a period not exceeding ninety consecutive or intermittent days in any one-year. Should an excess period be necessary it shall be agreed in writing between the employer and the local Union, confirmed by the General Secretary.

2. In accordance with the Employment Act, a casual employee shall be paid at the end of each working day. The rate of pay shall be calculated on the basic wages negotiated between the Company and the Union for the job grade being contracted.

However, the employee may opt to arrange for weekly fortnightly or monthly payments provided such arrangement is agreed to and signed by both parties.

Overtime payment where necessary shall be in accordance with the overtime clause 4 in this Agreement.

3. Suitable Protective Clothing and/or equipment applicable to the job shall be provided to the employee but shall remain the property of the Company.

CLAUSE 30: GROUP PERSONAL ACCIDENT INSURANCE

The Company will provide twenty-four hour Group Personal Accident Insurance Cover for all Unioniseable employees commencing March 1, 1993.

CLAUSE 31: DEATH OF AN EMPLOYEE/SPOUSE

a)In the event of death of an employee, the company shall provide a coffin, transport and pay mortuary fees in addition to paying Kshs. 20,000/= towards burial expenses.

b)In the event of death of a registered spouse, the company shall provide Kshs. 25,000/= towards burial expenses.

CLAUSE 32-NEW CLAUSE

TRANSPORT/COMMUTER ALLOWANCE

The company shall provide transport within company routes to employees to and from their residence to work within the headquarters during odd hours and a commuter allowance of Kshs 4,000 per month

CLAUSE 33: EFFECTIVE DATE AND DURATION OF AGREEMENT

This agreement shall become effective from 1st October, 2010 and shall remain in force for 24 months from the date and thereafter shall continue to be in force until amended by mutual agreement.

DATED AND SIGNED THIS ------------- DAY OF-------------- 2011

FOR AND ON BEHALF OF SAMEER AFRICA LIMITED:

.............................................

MICHAEL M. KARANJA,

MANAGING DIRECTOR

............................................. ………………………………………

SAMWEL H. KANDIE, JOHN KABARE

HUMAN RESOURCES MANAGER,E.R & SERVICES GENERAL MANUFACTURING

FOR AND ON BEHALF OF AMALGAMATED UNION OF KENYA METAL WORKERS

.............................................

MAERO TINDI,

GENERAL SECRETARY

.............................................

NIXON OWION,

CHIEF SHOP STEWARD

APPENDIX “A”

JOB CLASSIFICATION

GRADE Evaluation Points No. Jobs Job Title
UG1 200 - 234 3 (a) Tea Server

(b) Janitor

(c) General Labourer

UG2 235 -274 2 (a)Tube Valveman

(b)Tuberoom Serviceman

UG3 275 -309 17 (a)Stock Cutting Serviceman

(b)Liner Roller

(c)Bias Cutter Splicer

(d)Component Pre-Assembler

(e)Steelastic Serviceman

(f)Waste Controller

(g)Bias Cutter Helper

(h)Bead Builder

(i)Green Tire Inspector

(j)Laboratory Attendant

(k)Wire winder Operator

(l)Receiving Attendant

(m)Calendar serviceman

(n)RRO Operator

(o)Dynamic balance operator

(p)Hoffman balance operator

(q)Painter

UG4 310 -339 14 (a)Tread Tube Booker

(b)Tube Splicer

(c)Tire Trucker

(d)Band Builder

(e)Tireroom Serviceman

(f)Warehouseman

(g)Steelastic Helper

(h)Tube Inspector

(i)Flap Cureman

(j)Squeegee calendar operator

(k)Tube Tuber Booker

(a)Tire Repairman

(b)Calendar Helper

(c)Wigwag Attendant

UG5 340 -374 19 (a)Rubber Compounder

(b)Security Inspector

(c)Tube Tuber Helper

(d)Cushion Man

(e)Ban bury Helper

(f)Booker In-Charge

(g)Crew Leader

(h)Tube Tuber Mill man

(i)Driver

(j)Tube Cure man

(k)Calendar Mill man

(l)Tread Tuber Mill man

(m)Tire Service Attendant

(n)Calendar Wind-up Man

(o)Tube Skiver

(p)High Angle Operator

(q)New slitter Operator

(r)Tire Final Inspector

(s)Tube Repairman

UG6 375 -409 17 a)Forklift Truck Operator

b)Steelastic Operator

c)Tube Tuber Operator

d)Die Maker

e)Carpenter

f)Pigment Compounder

g)Ban bury Mill man

h)Tire Builder-PSR 1st Stage

i)Tire Builder-PSR 2nd Stage

j)Tire Builder-TBR 2nd Stage

k)Tire Builder-L.T Bias

l)Tire Builder-L.D Bias

m)Tire Builder -TBR 1st stage

n)Tire Builder Rear Tractor

o)Bias Cutter Operator

p)Cement Compounder

q)X-Ray Operator/ 2nd tire inspector

UG7 410 -449 9 (a)Tread Tuber Operator

(b)Motor Vehicle Mechanic 11

(c)Calender Operator

(d)Ban bury Operator

(e)Pipe Fitter

(f)Senior Driver

(g)Mechanist

(h)Motor Vehicle Electrician

(i)Tire Cure man

UG8 450 -Over 5 (a)Welder

(b)Motor Vehicle Mechanic 1

(c)Maintenance Mechanic

(d)Boiler Operator

(e)Mold Changer

APPENDIX “E”

45 HOUR WEEK

1. The 45 hours week includes a compensation factor in the hourly rate for the 1-hour excess of 44 hours statutory requirement, at 1.5 times the normal rate.

2. Computation of Compensation factor:

One week pay at current rate with compensation, RC

P = 45 hours*Rc

= 45Rc.

One Week pay at current rate without compensation, Rn

P = 44*Rn + 1.0Rn*1.5

= 44Rn + 1.5 Rn

= 45.5 Rn.

For the two pays to be same,

45Rc = 45.5Rn

Rc/Rn = 45.5/45

= 1.0111

i.e., the hourly rate has been increased by a factor of 1.0111 or 1.11% to compensate for the extra 1 hour.

3. Example:

(a) Current hourly rate for UG grade 1 is Kshs. 116.10

(b) Current hourly rate without compensation is Kshs. 116.10 less 1.11%, i.e.

116.10 - (116.10 *1.11/100)

116.10 - 1.29 = Kshs 114.81

c) For an average of 195 hours the calculation is as

Follows:-

i.Pay at current rate = Kshs 195*116.10

= Kshs. 22,639.50

ii. Pay calculation with compensation factor;

195 hours = 190.67straight + 4.33 overtime hours.

Current pay = Kshs (190.67 * 114.81 + (4.33 * 114.81* 1.5)

= Kshs 22,137.80 + 1,079.80

= Kshs 22,636.51

BOTH PAYS ARE BASICALLY THE SAME

Sameer Africa Limited - 2010

Start date: → 2010-10-01
End date: → 2012-09-30
Name industry: → Manufacturing
Name industry: → Other activities from manufacturing
Public/private sector: → In the private sector
Concluded by:
Name company: → Sameer Africa Limited
Names trade unions: → Amalgamated Union of Kenya Metal Workers

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 75 %
Maximum days for paid sickness leave: → 180 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: → No

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: → No provision days
Paternity paid leave: → 14 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 day: → 7.5
Working hours per week: → 45.0
Working days per week: → 6.0
Paid annual leave: → 23.0 days
Paid annual leave: → 4.0 weeks
Paid bank holidays: → Easter Monday, Army Day / Feast of the Sacred Heart/ St. Peter & Paul’s Day (30th June), Chile Independence Day (18th September), John Chilembwe Day (15th January)
Rest period of at least one day per week agreed: → Yes
Provisions on flexible work arrangements: → 

WAGES

Wages determined by means of pay scales: → No
Wages specified according to skill level: → 0
Wages specified according to job title: → 1
Provision that minimum wages set by the government have to be respected: → 
Adjustment for rising costs of living: → 0

Extra payment for annual leave

Extra payment for annual leave: → KES 6280.6

Premium for overtime work

Premium for Sunday work

Premium for Sunday work: → 100 %

Allowance for commuting work

Allowance for commuting work: → KES 4000.0 per month

Meal vouchers

Meal allowances provided: → Yes
→ 280.0 per meal
Free legal assistance: → 
Loading...