MEMORANDUM OF AGREEMENT BETWEEN ALLTEX (EPZ) LIMITED (HEREINAFTER REFERRED TO AS THE EMPLOYER) AND TAILORS AND TEXTILES WORKERS UNION (HEREINAFTER REFERRED TO AS THE UNION)

IN THE MATTER OF WAGES, SALARIES AND OTHER TERMS AND CONDITIONS OF SERVICE

PREAMBLE:

Whereas by terms of the Recognition and Negotiating Procedure Agreement signed between the Employer and the Union, it was agreed that the employer has recognized the Union as a properly constituted body and sole labour organization representing the interests of the employees and the employer.

And whereas it was agreed that the rates of wages, salaries and general terms and conditions of employment to be paid and provided to employees by the Employer shall be as negotiated and agreed between the Employer and the Union or therefore the Employer and the Union meeting together in a free heart and voluntary association agree to enter into agreement as stated under the matters of terms and conditions of service negotiated between

them at the Joint Negotiating Committee.

1. APPLICATION:

This agreement shall apply to all unionisable employees of Alltex (EPZ) Limited but shall exclude employees as may be defined in the Industrial Relations Charter Appendix "C".

2. PROBATIONARY PERIOD:

1. APPOINTMENT LETTER/CONTRACT LETTERS:

The employer shall issue an appointment letter stipulating the terms and conditions of services of an employee upon the employee's completion of the probationary period.

2. HOURS OF WORK:

3. OVERTIME:

Every employee who works for any time in excess of the normal hours of work specified in Clause 4 above, shall be entitled for the overtime, worked out at the following rates:-

(i) One and a half times the basic hourly rate in respect of any time worked in excess of the normal hours of work per week.

(ii) For time worked on any employee's normal rest day and Statutory Public Holiday, at twice the normal hourly rate.

(iii) Employees shall be informed two days in advance when they would be required to work overtime on a Public Holidays or on their rest day and in the event that an employee requests for permission to be absent on such occasion that shall not be unreasonably denied.

4. HOUSE ALLOWANCE:

Every employee who is not provided with free accommodation shall be entitled to a minimum house allowance of Ksh. 1,500/= or 15% of his Monthly salary, whichever is greater.

5. ANNUAL LEAVE:

6. LEAVE TRAVELLING ALLOWANCE:

(a) After each of twelve months' continuous service an employee will be entitled to Kshs. 1,500/= (One Thousand Five Hundred) leave travelling allowance when proceeding on leave.

(b) Where an employee is required to work at the request of his employer instead of taking his/her annual leave in that year, such an employee shall be paid his full leave entitlement in cash, and leave travelling allowance as per paragraph (a) of this clause.

9. COMPASSIONATE LEAVE:

10. SICK LEAVE:

11. PUBLIC HOLIDAYS:

(a) An employee shall be granted leave on the gazette public holidays with full pay.

(b) If an employee works on a public holiday, which is not his/her rest day, then he/she shall be paid at double his/her hourly rate.

(c) When a public holiday falls on an employee's rest day, the employee shall be paid double (2 times) his/her hourly rate if she/he works on the public holiday and rests on another day.

12. CERTIFICATE OF SERVICE:

Every employee shall be given a certificate of service by his employer upon termination of his employment, unless such employment has not been in force for a period of less than four consecutive weeks.. Every such certificate shall contain:-

(a) Name of the employer and postal address.

(b) Name of the employee.

(c) The date when employment commenced.

(d) The nature and usual place of employment.

(e) The date when employment ceased.

13. DISCIPLINARY MATTERS:

(a) Suspension

The employer reserves the right to suspend, without pay, an employee from employment upto a MAXIMUM of 14 days pending investigations into alleged gross misconduct or other offences.

Should the employee be found to have committed a gross misconduct, then he/she shall be summarily dismissed from the date of suspension. Should the employee be found innocent of the gross misconduct, then he/she shall be reinstated forthwith without loss of privileges and paid for the days he/she was suspended

(b) Warning

An employee whose work or conduct is unsatisfactory or who otherwise commits default which in the opinion of the employer does not warrant instant dismissal shall be warned in writing and the following procedure shall apply:-

(i) The first, second and third warning shall be entered in the employee's record and the shopsteward informed accordingly.

(ii) The third warning shall be copied to the Branch Secretary of the employee's union.

(iii) If an employee who has already received three warnings commits a fourth default, he/she shall be liable to summary dismissal.

Provided that an employee completes three hundred and sixty five consecutive days from the date of third warning without further default, any warning entered in his/her employment record shall be deemed cancelled.

14. 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, but the enumeration of such matters shall not preclude the employer or an employee from respectively alleging or disputing whether the facts giving rise to the same, or whether any other matter not mentioned in this section, constitute justifiable or lawful grounds for the dismissal:-

(a) If, without leave or other lawful cause, an employee absents 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 and a medical practitioner confirms the same.

(c) If an employee willfully neglects to perform any work which is his duty to have performed or if he carelessly and improperly performs any work which from its nature 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/colleague or to a person placed in authority over him or his subordinate staff.

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

(f) If, 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 is not within fifteen days either released on bail or on bond or otherwise lawfully set a 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 or his employer's property.

15. MATERNITY LEAVE:

16. BASIC MINIMUM WAGES:

With effect from 1st October 2011 the basic minimum wages shall be as follows:- 10% above the Government General Wages Order of each year

16. GENERAL WAGE INCREMENT:

With effect from 1st October 2009 all unionisable employees in the service of the employer will receive on their basic wage as at 30th September, 2009 a general wage increase of 18% to cover the period 1st October, 2009 to 30th September, 2011, to be implemented as follows:-

(a) An increment of 9% on their basic wage, effective from 1st October, 2009

(b) An increment of 9% on their basic wage, effective from 1st October, 2010

17. PAYMENT OF WAGES:

Payment of wages shall be made on a working day and during working hours, at or near to the place of employment or at such other place as may be agreed to between the employer and the employee. Should such payment day fall on a Sunday or public holiday, such wages shall be paid on the last day prior to such Sunday or Public holiday.

18. PROTECTIVE CLOTHING:

19. NIGHT SHIFT ALLOWANCE:

Employees scheduled to perform their duties on night shift, shall be paid a night shift allowance of Ksh. 5/= per night. Night shift is defined as hours between 8.00 p.m. and 6.00 a.m.

20. TOOLS:

It shall be the responsibility of the employer to provide working tools to the employees.

22. RETIREMENT AGE

The normal retirement age for all employees shall be 55 years.

23. REDUNDANCY:

"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.

Where the employment of an employee is to be terminated on account of redundancy, the following principles shall apply.

(a) The Union of which the employee is a member and the Labour Officer of the area shall be informed of the reasons for and the extent of the intended redundancy.

(b) The employer shall have due regard to seniority in time and to the skill, ability and reliability of each employee belonging to a particular category of employees affected by redundancy.

(c) No employee shall be placed at a disadvantage for being or not being a member of a trade union.

(d) Any leave due to any employee who is declared redundant shall be paid for in cash.

(e) A redundant employee shall be entitled to one month's notice or one month's salary in lieu of notice.

24. GRATUITY/ PENSION:

After completion of two (2) years' service with the employer, an employee shall be paid gratuity at 16 days upon termination of employment by the employer, death, normal retirement at 55 years of age or retirement on medical grounds. However, no employee shall qualify for gratuity if he/she is dismissed for gross misconduct.

25. NIGHT TRANSPORT:

The employer shall provide night transport for employees leaving work after 8.30 p.m. to a designated drop-off point nearest to their residence provided that those whose who have more favourable arrangements shall continue with such alternative arrangement.

26.DEATH OF AN EMPLOYEE:

27. PAID EDUCATIONAL LEAVE:

28. ACTING ALLOWANCE:

When an employee is required in writing to act in a position of higher grade for a period of ten days and more, he/she shall be paid the difference between the basic salary of his/her grade and the basic salary of the job in which he/she is acting.

29. TARGETS:

(i) The employer through the expertise of a competent officer like the Time and Motion Study Officer or an Industrial Engineer may establish production targets for various styles in the lines and/or other areas of operation like cutting, washing, finishing e.t.c wherever so fixed, the targets in question shall remain constant for the particular style and employees concerned shall be required to achieve the targets production for the regular hours of the day, within that time.

(ii)Any employee, who fails to achieve the target for no acceptable reason, may be allowed to do so at his/her own time on the same day, without overtime payment and it shall be within the employer's rights to subject such an employee to disciplinary action for inefficiency if he/she refuses to work on his/her own time to complete the day's target.

(iii) The union will have the right to involve a technical officer from the Ministry of Labour for joint adjudication exercise if the set targets are deemed to be high. While such exercise is in process, the employee shall be expected to continue working towards achievement of the set targets.

30. TERMINATION OF EMPLOYMENT:

It shall be a condition in every contract that such contract shall be terminable by not less than one (1) month's notice to be given by either party in writing or otherwise by payment by either party, in lieu of notice. During the probation period, seven days' notice shall be given by either party or an equivalent payment in lieu of notice.

31. SEXUAL HARRASSMENT:

32. HIV/AIDS:

32. MEDICAL TREATMENT:

33. EFFECTIVE DATE:

The effective date of this agreement shall be 1st October, 2009.

34. DURATION OF THE AGREEMENT:

This agreement shall remain in force for a period two years upto 30th September, 2011. Thereafter it shall continue in force until it is amended by mutual agreement between the two parties, provided that the party wishing to amend it gives the other party three (3) months notice of such intension in writing the details of the amendment required.

35. APPLICABLE LAW:

The provisions of this agreement shall be construed to be in accordance with the provisions of the Laws of Kenya.

SIGNED FOR AND ON BEHALF OF ALLTEX (EPZ) LIMITED

REV. JOEL K. CHEBII, (OGW)

GENERAL SECRETARY

HASSAN ABDULLAHI

BRANCH SECRETARY

SIGNED FOR AND ON BEHALF OF TAILORS & TEXTILES WORKERS

MARTHA KEMUNTO

SHOPSTEWARD

FEDERATION OF KENYA EMPLOYERS

SIGNED AT NAIROBI THIS date 27 July 2012