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MEMORANDUM OF AGREEMENT BETWEEN ALPHA KNITS LTD (HEREINAFTER REFERRED TO AS THE “EMPLOYER”) OF THE FIRST PART AND THE TAILORS AND TEXTILES WORKERS ‘ UNION (HEREINAFTER REFERRRED TO AS THE “UNION” OF THE SECOND PART IN THE MATTER OF WAGES TERMS AND CONDITIONS OF SERVICE

PREAMBLE

The Alpha Knits Limited (herein after referred to as the “Employer”) and the Tailors and Textiles Workers’ Union (herein referred to as the “UNION” ) meeting together in free heart and voluntary association agree to, and enter into the foregoing common Agreement in the matters of Terms and Conditions of service negotiated between them at the Joint Negotiating Committee.

PART I - TERMS AND CONDITIONS OF SERVICE

1. PROBATIONARY

The first three months of engagement shall be treated as probationary period. During this period services of an employee shall be terminated by 12 days notice or pay in lieu, given by either party terminating the employment.

2. HOURS OF WORK

(i). The working week for all the employees except Watchman shall consist of 45 hours of work per week, provided that, except in the case of shift work, an employee’s normal working hours shall be eight hours on one (1) day of the week. 

(i) The normal working week for a security staff (Watchmen) will be 54 hours.

(ii) An employee shall be entitled to not less than one and a half (l and 1/2) rest days in each week.

1. OVERTIME

Overtime shall be paid in the following manner:-

(a) For time worked in excess of the normal working hours per week specified in paragraph two of this Agreement, at one and half times the basic hourly rate.

(b) For time worked during Gazetted Public Holidays at twice the basic hourly rate.

2. HOUSING ALLOWANCE

Every employee who is not provided with free housing accommodation shall be entitled in addition to the basic monthly wages, to appropriate housing allowance of Kshs 2,350/-

3. ANNUAL LEAVE

(a) After the completion of 12 months continuous service with an employer, an employee will be entitled to 26 working days leave with full pay.

(b) Where employment is terminated after the completion of two or more months service during leave earning period to 2 days with full pay for each completed month of service in such period.

4. LEAVE TRAVELLING ALLOWANCE

(a) An employee will be entitled to Shs. 2,500/- leave travelling allowance. The money will be given at the time of proceeding on leave.

(b) (i) Where an employee is required to work on the request of the

Employer instead of taking his/her annual leave, such employee will be paid full wages in lieu of leave not actually taken, plus the travelling allowance as per (a) above.

(ii) But, where an employee requests to receive cash in lieu of leave, such employee will not be entitled to leave travelling allowance.

5. COMPASSIONATE LEAVE

(i) An employee shall be granted unpaid compassionate leave on application at the discretion of the employer. The employer shall not unreasonably withhold such request.

(ii) Compassionate leave may by prior arrangement by the employee with the employer, be treated as paid leave and subsequently set of against the employee’s annual leave.

6. GAZETTED PUBLIC HOLIDAYS

(i) An employee shall be granted Gazetted Public Holidays with full pay.

(ii) If it falls within leave period, the employee will be granted additional paid leave days on top.

7. SICK LEAVE

After the completion of the probationary period and subject to production of a Medical Certificate of incapacity covering the period of sick leave claimed signed by a Medical Practitioner or someone in his / her charge, an employee shall be entitled to sick leave with pay in any one year as follows:-

(a) First forty five (45) days with full pay;

(b) Next forty five (45) days with half pay;

(c) An employee shall not be liable for sick leave in respect of any incapacity due to gross negligence on his/her own part.

(d) After exhausting (a) and (b) above and the sickness persists, such an employee may be retired on Medical Ground as per Clause 27.

8. ACTING ALLOWANCE

After seven days of acting in a higher category/grade than his/her own, an employee will receive the minimum wages for the category/grade he/she is acting on or in the alternative where his/her basic wages already supersedes the basic minimum wages of the job he/she shall be given an allowance equivalent to the difference of the two job groups.

11. WARNING PROCEDURES

(a) An employee who is guilty of an offence other than gross misconduct or other lawful cause of dismissal may be given a written warning which shall remain valid for a period of 12 months from the date of issue. If, within the twelve months period, the employee commits a similar or any other offence which does not warrant dismissal, he/she will be further warned in writing and the warning shall be recorded in his/her employment record card and the two warnings shall remain valid for a period of twelve months from the date of a second warning. If within this period of twelve months the employee commits a further offence which does not warrant dismissal he/she will be issued with a final letter of warning which will make him/her liable to summary dismissal for any other offence which he/she may commit thereafter.

(b) A final letter of warning will remain valid for a period of one year from the date of issue. A copy of the final warning shall be sent to the Branch Secretary of the Union. The first 2 warnings letters shall be copied to the shopsteward.

(c) If an employee refuses to accept the warning letter, the Shopstewards shall be called to witness and if he/she refuses to accept in the presence of the shopsteward he/she will be given appropriate notice as per the Termination Clause to terminate his/her employment.

(d) An employee who has been served with a warning has the right to appeal within 3 days of receipt of the warning letter.

12. TERMINATION OF EMPLOYMENT

After the probation period has expired, one month’s or pay in lieu of notice will be given by either party to terminate employment where services of the employee are below five years. For those employees whose service range between five and ten years, the period of notice or pay in lieu thereof shall be two months.

13. GRATUITY

Any employee who has served for ten to fifteen years shall be entitled to three months’ notice or pay in lieu thereof. While those who have served for over fifteen years shall be entitled to four months’ notice or pay in lieu thereof.

(a) On normal termination the Employee will be entitled to a service Gratuity as follows:-

• 1-5 years = 15 days.

• 6-10 years = 16 days.

• 11 years and above = 18 days.

(b) Summary dismissal Section 44 of the Employment act will apply.

14. REDUNDANCY

(a) In case of redundancy the principle of “Last In, First Out” will apply for the selection of employees affected by redundancy, taking into account, the question of ability, length of service etc., subject to closer consultation with the Union.

(b) those affected by redundancy shall be considered for the following:-

(i) Be offered other employment if any available

(ii) Receive normal specified period of notice

(iii) Receive cash in lieu of accrued leave not taken

(iv) Receive severance pay calculated as follows:-

• Employees with 1 - 5 years of Service = 18 days

• Employees with 6-10 years of Service =20 days

• Employees with over 10 years of Service = 24 days for each completed year of service.

15. MATERNITY LEAVE

As per the law.

16. PROTECTIVE CLOTHING

(a) Two pieces of protective clothing shall be provided to the employee in accordance with the Factory Inspector’s recommendation once a year.

(b) Two pieces of uniforms shall be provided to watchmen, driver’s mate and office messengers once a year.

(a) Protective clothing and uniforms shall remain the property of the Company.

(b) The Company will provide one bar of soap per month for cleaning purposes.

16. CASUAL EMPLOYEES

As per the law.

17. PROMOTION

(a) Although promotions are Management prerogative, where vacancies of a promotional nature arise, the employer shall give first consideration to existing employees within the department or group in which the vacancy occurs taking qualifications, merit ability, experience and length of service into consideration.

(b) Where in accordance with Clause (a) above an employer is satisfied that an existing employee is fit to fill a vacant post, such decision on the employee’s promotion shall be communicated to him/her in writing.

18. INCENTIVE PRODUCTION BONUS

Both the Union and the Management agree in principle for the introduction of a production bonus scheme to be agreed upon by both parties.

19. NIGHT SHIFT ALLOWANCE

The employees working on night shift which is for the purpose of this agreement shall cover, shifts, commencing and ending between 7.00 p.m. and 6.00 a.m. shall be entitled to night shift allowance of Shs. 23.00 per Night shift worked, provided that employees working on overtime shall not qualify for night shift allowance.

20. DEATH OF AN EMPLOYEE

(a) The employer agrees to pay Cash Kshs 70,000/- towards funeral expenses and also pay benefits to the dependants as per retirement Clause No. 27.

(b) The employee will be entitled to a service pay as follows:-

•1 -5 years = 15 days

• 6-10 years = 16 days

• 11 years and above = 18 days

(C ) The body of the dead employee shall be accompanied by three employees.

21. JOB CLASSFICATION AND BASIC MINIMUM WAGES

(EXCLUDING HOUSE ALLOWANCE) 01/01/2014

GROUP KSHS.
GROUP 1 19,024.00
GROUP 2 210,316.00
GROUP 3 311,839.00
GROUP 4 412,184.00
GROUP 5 513,773.00
GROUP 6 615,259.00
GROUP 7 717,102.00
GROUP 8 820,770.00

GROUP 1

Gardener, General Labourer, Trainee Machine Attendant and Trainee Sewing Machinist for Six Months, Sanitary Attendance, Sweeper, Turner, Trimmer, Mender, or Hand Sewn, Ironer, Packer, Labeller, Stampers, Cutter by Hand or Machinery Layer, Driver’s Mate, Office Cleaner, Messenger, Machine Attendant Trainee for Six Months.

GROUP 2

Knitter Machine Feeder, Boiler Attendant, Winder Knitter, Linters, Watchmen, Dye Machine Attendant, Sewing machinist, Cutter to Pattern,

Ring Frame Attendant, Special Frame Attendant, Drawing Frame Attendant, Twisting Machine Attendant, Bailing Machine Attendant.

GROUP 3

Recorder, Junior Clerks, Stores Clerk.

GROUP 4

Boiler Mechanic Ungraded Artisan (Mechanic, Carpenter, Plumber, Electrician, Mason) Light and Medium Vehicle Drivers.

GROUP 5

Receptionist, General Clerks, Copy Typists, Pattern Designer, senior recorder. GROUP 6

Mechanic Grade III, Senior Clerk.

GROUP 7

Section Foreman, Store Keeper, Head Mechanic, Head Electrician, Mechanic Grade II. Not withstanding the above classification, an employee may be transferred to carry out similar duties or even other unrelated duties in any other department if there is no sufficient work in his/her place of work.

GROUP 8

Artisans with Government Trade Test Certificate Grade I, Heavy Commercial Drivers.

22. GENERAL WAGE INCREASE

(a) Every employee covered by this Agreement and who was with the employer as at the 1st January 2014 and whose monthly wage was below the specified new minimum wage as at that date shall be brought to the new minimum rate.

(b) The old permanent employees whose monthly basic wage is above the new minimum will be entitled to a general wage increase of 8% with effect from 1st January 2014.

(c) Every employee covered by this Agreement and who will be with the Company as at 1st January 2015 shall be granted a further general wage increase of 9% with effect from that date.

NIGHT TRANSPORT

The existing transport for collecting the employees reporting between 8.00 p.m. and 6.00 a.m. will continue whereby workers will be picked by the company vehicle from the following points:-

(i) Free Water

(ii) White House

(iii) Hilton

(iv) Githunguri Main Road Junction.

The vehicle can only fail to reach any of the above points if the road is not passable.

25. SAFARI ALLOWANCE

Any employee who performs his/her duties away from Ruiru except Nairobi and Thika which are routine shall be entitled to meal allowance as follows:

Breakfast Kshs.200.00
Lunch Kshs.250.00
Supper Kshs.250.00
Night Accommodation Kshs.1,500.00

26. LEAVE FOR UNION OFFICIALS FOR SEMINARS / COURSES

Union Officials and shop-stewards shall be granted leave with full pay where it is found genuine and on request from the Union. In such cases, the Management will consider the request favourably. However, this is at the discretion of the Management but will not be denied unreasonably. 

27. RETIREMENT BENEFITS

(a) When an employee attains normal retirement age of 55 years or His/her service are terminated on medical grounds due to ill health on production of a Medical Certificate duly signed by a registered Medical Practitioner, he/she shall be entitled to service pay as follows:-

• 1 - 5 years = 15 days

• 6 - 10 years = 16 days

• 11 years and above = 18 days

The provisions of this Clause shall be effective as from 1st November 1989. Further those employees who joined the company in 1984 or afterwards but before 30th October 1989 will have their benefits calculated from the date of appointment. Employees who came from Nakuru are also covered under this Clause.

28. EFFECTIVE DATE

This agreement shall come into force on 1st January 2014 and shall remain in force for a period of twenty four (24) Months and from that date thereafter it shall continue in force until amended. Either party desiring to amend this Agreement shall give one month’s notice in writing to the other expressing the intention and detailing any suggested amendments.

SIGNED: FOR AND ON BEHALF OF ALPHA KNITS LTD

Alpha Knits Ltd - 2014

Start date: → 2014-01-01
End date: → 2016-12-31
Name industry: → Manufacturing
Public/private sector: → In the private sector
Concluded by:
Name company: → Alpha Knits Ltd
Names trade unions: → Tailors and Textiles Workers Union

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 38 %
Maximum days for paid sickness leave: → 90 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: → -9 weeks
Job security after maternity leave: → No
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

EMPLOYMENT CONTRACTS

Trial period duration: → 90 days
Severance pay after 5 years of service (number of days' wages): → 18 days
Severance pay after one year of service ((number of days' wages): → 18 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
Paid annual leave: → 26.0 days
Paid annual leave: → 4.0 weeks
Paid bank holidays: → 
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
Provision that minimum wages set by the government have to be respected: → No
Agreed lowest wage per: → Months
Lowest wage: → KES 19024.0
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → 9.0 %
Wage increase starts: → 2015-01

Once only extra payment

Once only extra payment due to company performance: → Yes

Premium for evening or night work

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

Extra payment for annual leave

Extra payment for annual leave: → KES 2500.0

Premium for overtime work

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → No
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