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MEMORANDUM OF AGREEMENT BETWEEN AIR CONNECTION LIMITED AND KENYA, SHIPPING, CLEARING AND WAREHOUSES WORKERS UNION

In The Terms and Conditions Of Service And Wages

1. PREAMBLE

The terms and conditions of employment set out in this Agreement shall be observed by both parties and shall apply to all unionisable employees covered by the Recognition Agreement and as provided for in the current Industrial Relations Charter.

2. LETTER OF EMPLOYMENT

On engagement every employee shall be issued with an appointment letter in duplicate and the employee shall accept by signing and will retain the original.

3. PROBATION PERIOD

(a) The first three months shall be treated as probationary period. This period may be extended by a further period of three months. During this period either party may terminate the contract by giving seven (7) days Notice in writing or pay in lieu of such Notice.

(b) Should an employee serving on probationary period become ill for any period longer than1 week, the probationary period shall be extended by the length of such illness.

4. HOURS OF WORK

(a) The normal working week shall consist of 45 hours spread over six days of the week.

(b) Employees on shift work shall work for 48 hours spread over six days of the week.

(c) Security staff shall work for 60 works spread over six days of the week.

5. OVERTIME

For time worked in excess of the normal number of hours per week, over time shall be paid at the following rates:-

(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 public holidays at double rate.

(c) By mutual agreement by the parties, an employee may be given time off with full pay for the hours of overtime worked.

6. SICK LEAVE

(a) On completion of two months with the company, an employee shall be entitled to 30 days sick leave with full pay and thereafter to a maximum of 15 days sick leave with half pay in each period of 12 consecutive months.

(b) An employee shall not be entitled to sick leave unless he or she produces a certificate of incapacity covering the period of sick leave signed by a duly qualified medical practitioner in charge of a medical Aid Centre or by person acting on his behalf.

(c) An employee shall not be eligible for sick leave under this clause in respect of any incapacity caused due to gross negligence on his/her part(self inflicted).

7. ANNUAL PAID LEAVE

After completion of twelve months continuous service with the company an employee shall be entitled to the following leave:

(a) One year to five years service an employee shall be entitled to 21 working days leave with full pay.

(b) Six years to 20 years of service an employee shall be entitled to 24 working days leave with full pay.

(c) Over 20 years service with the company an employee shall be entitled to 26 working days leave with full pay.

(d) The existing employees will retain their annual leave entitlement per year if their leaves are more favourable than the leave agreed above.

(e) An employee shall be required to apply for his/her annual leave 30 days prior to proceeding on leave which will be approved by the management. However, the management will notify the employee in good time of the approval.

(f) Any annual leave not utilized by an employee in any given year may with consultation with the employer be carried forward and taken within 18 months.

8. COMPASSIONATE LEAVE.

(a) An employee desiring to take leave on compassionate grounds shall by prior arrangements with the Management/employer, be granted such leave upto his earned leave entitlement and the leave taken shall subsequently be set off against his or her annual leave.

(b) An employee may in addition to his compassionate leave be granted a maximum of 9 days compassionate leave with full pay in a year which shall be set off from his future leave or his termination benefits.

(c) If compassionate leave is granted without pay then it shall not be off set from the employee’s benefits or leave.

9. MATERNITY LEAVE/PATERNITY LEAVE

(a) A female employee shall be entitled to three (3) months maternity leave with full pay in a year and shall not forfeit her annual leave for that year.

(b) A female employee shall apply for her maternity leave at least three months in advance.

(c) Child birth in respect of a female employee shall not be deemed to be sickness.

(d) A female employee who has taken her maternity leave shall not incur any loss of privileges during such period.

(e) A male employee shall be entitled to two weeks paternity leave in a year.

(f) A male employee shall apply for paternity leave one month in advance and shall produce medical documents/notification of birth.

(g) A employee shall register with the company at the time of employment/marriage the name of his/her spouse.

10. LEAVE TRAVELLING ALLOWANCE.

An employee travelling on Annual leave shall be entitled to leave travelling allowance of One Thousand Five Hundred Shillings Only (Kshs 1,500) per year.

11.WARNING PROCEDURE

(a) An employee whose work or conduct becomes un-satisfactory or commits a misconduct which in the opinion of the Management does not warrant Summary Dismissal shall be warned in writing.

(b) The first and second warning letters shall be entered into the employee’s employment record/file with copies to the Shop Steward and the Branch Secretary.

(c) An employee issued with a written warning letter by the Management has a right to appeal against the warning within 7 days and if he does not appeal then the warning letter stands. If an employee appeals against a warning letter within 7 days and the management fails to respond within 7 days then the appeal letter stands withdrawn.

(d) If an employee has been served with two warning letters and commits another, third offence he shall be dismissed summarily from employment.

(e) An employee who has been served with two warning letters and successfully completes 12 consecutive months from the date of the last warning letter, shall have the warning letters withdrawn from his employment records.

12. SUSPENSION

(a) Where an employee commits an offence of misconduct which required investigations, the employer reserves the right to suspend the employee from duty for 30 days with half pay inclusive of House Allowance.

(b) If the investigation shows that the employee was innocent then such employee shall be re-instated and paid the balance of his salary.

(c) If the company fails to establish any fault against the employee (employee is innocent) after investigations but feels they no longer require the services of the employee, then the employee will be terminated as per the termination clause of this Collective Bargaining Agreement.

(d) If the employee is found guilty of the offence then he shall be Summarily dismissed in accordance with the dismissal clause of the Collective Bargaining Agreement from the date of the suspension.

13. TERMINATION OF EMPLOYMENT

(a) After successful completion of the probationary period, employment shall be terminable by either party giving one month’s written notice or pay in lieu of such notice.

(b) On termination , an employee shall be entitled to the following:-

(i) Salary for days worked.

(ii) Overtime worked.

(iii) Accrued pro-rata leave

(iv) Any other statutory entitlements.

(v) Certificate of service.

14. REDUDANCY

Definition

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.

(a). The management shall notify the General Secretary of the Union of the reasons and extent of the intended redundancy 30 days prior to the date of the intended date of termination on account of redundancy.

(b) The management shall also notify the Labour Officer of the area of the reason and the extent of the intended redundancy 30 days prior to the date of the termination on account of redundancy.

(c) The principal of first in last out shall be followed in each of the affected categories of employees subject to all other factors as reliability, skill, ability and seniority.

(d) An employee to be declared redundant shall be paid leave earned in cash.

(e) One months Notice shall be given in writing or payment in lieu of notice.

(f) An employee declared redundant shall be paid severance pay at the rate of of 16 days for each completed year of service.

15. RETIRMENT

An employee shall retire on attainment of 60 years.

However, retirement may be extended by mutual agreement between the employer and the employee or the parties may agree on contract of Employment after retirement.

The Management are looking into ways and means of introducing pension scheme for the employees.

16. CERTIFICATE OF SERVICE

That any employee leaving the employment of the company shall be issued with a certificate of service in accordance with section 51 of Employment Act 2007 and shall contain the following particulars:-

(a) The name of the employer and their 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.

17. MONTHLY PAYSLIP

An employee shall be issued with a standard payslip at the end of each month showing the earnings and statutory deductions made.

18. UNION ACTIVITIES

(a) An employee who is nominated to attend or participate in a seminar or workshop organized by the union shall be granted permission with full pay.

(b) The General Secretary of the Union shall give the Employer/Management 7 days written notice asking for permission for two employees to attend a workshop/seminar upto a miximum of 5 days once in a year.

19. INJURY OF EMPLOYEE

Injury to an employee arising out of and in the course of his employment shall be covered by the Work Injury Benefits Act of 2007.

20. MEDICAL TREATMENT

The medical scheme provided by in the company to continue in addition to the Medical Treatment Rules of 1977.

21. PROTECTIVE CLOTHING

The management shall provide employees with protective clothings/gears such as cold room jackets, safety boots, rain coats, hand gloves, masks, goggles as per the requirements of the OSH.

However, protective clothings/gears shall remain the property of the company.

22. SAFARI ALLOWANCE

Employees required to work outside their principal station of work shall be entitled to the following allowances:-

(a)Breakfast-------150/=

(b)Lunch------------250/=

(c)Dinner-------------350/=

(d)Accommodation (Kisumu,Mombasa & Nairobi Cities)- ----------------600/=

(e)Accommodation (Other areas)---------------------------------------------------------450/=

23. GRIEVANCE HANDLING

The grievance handling procedure shall begin from the shopstewards at the company level with the first line Managers then to the Branch Secretary in accordance with the Labour Relations Act 2007.

24. SUMMARY DISMISSAL

Any of the following matters may amount to gross misconduct so as to justify the summary dismissal of an employee for lawful cause.

(a) Without leave or other lawful cause, an employee absents himself from the place appointed for the performance of his work.

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

(c) If an employee willfully neglects to perform any work which it was his duty to perform, 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 or insulting language or behaves in a manner insulting to his employer or to a person placed in authority over him by his employer.

(e) If an employee knowingly fails or refused to obey a lawfully and proper command which it was within the scope of his duty to obey, issued by his employer or a person place in authority over him by his employer.

(f) In the lawful exercise of any power of arrest given by or under any written law, an employee is arrested for cognizable offence punishable by imprisonment and 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 a criminal offence against or to the substantial detriment of his employer’s property.

25. DEATH OF AN EMPLOYEE

The company shall contribute Kshs. 10,000 towards the death of an employee which will be in addition to the existing Benevolent Fund.

26. TRANSPORT (COMMUTER ALLOWANCE)

Every employee shall be paid commuter allowance of Kshs. 1,200/= per month.

27. HOUSE ALLOWANCE

Every employee shall be entitled to a minimum Housing Allowance of Kshs. 1,700/= per month or 15% whichever is higher.

28. GENERAL WAGE INCREASE

Employees who were in employment of the company by 28th February 2013 and are earning upto Kshs. 23,000 per month will be entitled to a wage increase of 8% for the 1st year and a further 8% for the second year.

Employees who were in employment of the company by the 28th February 2013 and were earning above Kshs. 23,000 per month will receive a wage increment of 6% for the 1st Year and a further 6% for the second year.

29. BASIC MINIMUM RATES

GRADES OCCUPATIONS/JOBS TITLES Kshs. PER MONTH
GRADE 1 General Labour including Cleaners, Sweepers, Gardeners, messengers Kshs.9,000/=
GRADE 2 Palletizers/Assistant Cook Kshs.9,000/=
GRADE 3 Security Assistant Kshs.10,000/=
GRADE 4 Assistant Loading Incharge/Assistant Offloading Incharge, Cooks Kshs.11,000/=
GRADE 5 Tuk Tuk/Tractor.

Driver (Light Van),Outrider

Kshs.12,000/=
GRADE 6 Loading/off loading Incharge Kshs.13,000/=
GRADE 7 Receptionist/Telephone Operator

Document passer

Document Clerk

Export Clerk

Import Clerk

Accounts Clerk

Delivery Clerk

General Clerk

Screener

Offloading Clerk/Loading Clerk

Kshs.14,000/=
GRADE 8 Ungraded Artisan

Artisan G III

Artisan G II

Artisan G I

Kshs.12,000/=

Kshs. 15,000/=

Kshs. 17,000/=

Kshs. 20,000/=

GRADE 9 Driver (Medium sized vehicles) Kshs.16,000/=
GRADE 10 Heavy Commercial Vehicles Kshs. 20,000/=

30. EFFECTIVE DATE AND DURATION

This agreement shall be effective from 1st March 2013 and shall remain in force for a period of two years from that date.

31. AGENCY FEES

Deductions of Agency fees shall be in accordance with section 49 of the Labour Relations Act 2007.

SIGNED FOR AND ON BEHALF OF AIR CONNECTION LIMITED

SIGNED BY :-

MANAGEMENT

……………………………….………………………………

HARKIRAN KALSIN.

GENERAL MANAGERMANAGER-

S BASSI

ADMINISTRATION PROCUREMENT AUDIT

AND LOGISTICS

UNION

ROBERT ABWONGA

GENERAL SECRETARY

RICHARD W MASUNGO

CHIEF SHOPSTEWARD

LAWRENCE NYAGA

SHOPSTEWARD

WITNESSED BY

………………………………………..

G. AMBUCHE

INDUSTRIAL RELATIONS OFFICER

FOR FEDERATION OF KENYA EMPLOYERS

SIGNED ON THIS ……………………….. DAY OF ……………………………2013

Air Connection Limited - 2013

Start date: → 2013-03-01
End date: → 2015-02-28
Name industry: → Transport, logistics, communication
Public/private sector: → In the private sector
Concluded by:
Name company: → Air Connection Limited
Names trade unions: → Kenya Shipping, Clearing and Warehouses Workers Union
Name other signatories from employees' side: → HARKIRAN KALSIN

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 21 %
Maximum days for paid sickness leave: → 45 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: → Yes
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: → 9 days
Paternity paid leave: → 14 days

EMPLOYMENT CONTRACTS

Trial period duration: → 180 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: → 21.0 days
Paid annual leave: → 3.0 weeks
Provisions on flexible work arrangements: → 

WAGES

Wages determined by means of pay scales: → Yes, in one table
Provision that minimum wages set by the government have to be respected: → 
Adjustment for rising costs of living: → 1

Wage increase

Wage increase: → 8.0 %

Extra payment for annual leave

Extra payment for annual leave: → KES 1500.0

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Allowance for commuting work

Allowance for commuting work: → KES 1200.0 per month

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
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