New8

MEMORANDUM OF AGREEMENT BETWEEN M/S. AUTO ANCILLARIES AND THE AMALGAMATED UNION OF KENYA METAL WORKERS

1. PREAMBLE:

The Terms and Conditions of Employment set out in this Agreement shall be observed by both parties and shall apply to employees covered by the Recognition Agreement and as may be provided for by the current FKE/COTU (K) Agreement.

2. HOURS OF WORK

The normal working week shall consist of 44 hours of work spread over six days of the week:

(a) Monday to Fridays-8 hours

Saturdays-4 hours

(b) Day Watchman-52 hours per day

week spread over 6 days

(c) Night Watchman-10 hours per day – 60 hours per

week spread over 6 days

3. OVERTIME:

Overtime will be paid only when the number of hours worked exceed the standard working hours (shown above).

Sundays and Public Holidays - Time worked x 2 hourly rate

Mondays to Saturdays inclusive - Time worked x 1½ hourly rate.

4. REST PERIOD

At least one rest period of not less than thirty minutes shall be allowed in the course of any working day or shift of at least 7 working hours duration.

5. ANNUAL LEAVE

a) All employees shall be entitled to 26 working days leave with full pay for each period of 12 consecutive months' service. Sundays and Public Holidays are exclusive.

b) For the purpose of this clause, it is accepted and agreed by both parties that Saturday is a working day.

c) Travelling period shall be within the employees leave period.

d) Leave shall be taken and may be rescheduled at the discretion of the Company. Leave shall not be unduly withheld by the Management.

e) After 12 months' consecutive service the employee shall be entitled to the full period of annual leave. Any other leave shall be taken at the discretion of the Management.

f) After completion of probationary period and on termination of service where an employee is given pay in lieu of notice he will be paid for the leave due to him on pro-rata basis.

g) Accumulation of leave will be at the discretion of the Company but will not exceed 18 months leave entitlement.

h) Annual leave shall be taken either 3 months before or 6 months after the employee’s anniversary date of engagement.

6. LEAVE TRAVELLING ALLOWANCE

An employee proceeding on annual leave shall be entitled to Kshs.3,000/= as leave travelling allowance.

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 either be paid, unpaid or deducted from the annual leave entitlement in the light of evidence produced before or after the leave by the employee.

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.

9. MATERNITY LEAVE

A woman employee shall be entitled to 3 months maternity leave with full pay.

provided that:

i) A woman who has taken three months maternity leave shall not forfeit her annual leave in that year.

ii) Child-birth in respect of a woman employee shall not be deemed to be sickness as provided for in Clause 10 of this Agreement and the employer shall not be required to meet medical costs incurred thereon

iii) A female employee who takes maternity leave shall not incur any loss of privileges during such period.

iv) A male employee shall be entitled to two weeks paternity leave with full pay.

10. SICK LEAVE

After probationary period, an employee who is unable to carry out his/her duties due to sickness shall be entitled in any period of 12 months to a maximum of 60 days sick leave with full pay and half pay for the next succeeding 30 days, subject to the production of a medical certificate to that effect, signed by a qualified medical practitioner or an authorised person acting on his behalf, in an aided medical centre.

11. MEDICAL

The Company shall undertake to pay for the cost of medical treatment of all its employees in accordance with the provisions prescribed by the Laws of Kenya relative to the Employment of Persons Medical Treatment Rules to a maximum of KShs.9,500/= per year.

12. SAFARI ALLOWANCE

When an employee is required to proceed on duty away from his principle area of work, other than on transfer, he shall be entitled to the following:

Breakfast...........................................................KShs. 250/=

Lunch...............................................................KShs. 300/=

Dinner..............................................................KShs. 300/=

Night stop...........................................................KShs. 850/=

Total for 24 hours...............................................KShs. 1,700/=

13. ACTING ALLOWANCE

Where an employee is required to act in a higher grade than his own for a period of not less than eight days, he shall be paid in addition to his basic wage an acting allowance equal to 25% of the basic minimum wage of that higher grade.

14.PROBATION

i) The first three months of employment with the employer will be treated as a probationary period and during such probationary period the contract will be terminable by either party giving seven days notice.

ii) Nothing in this paragraph shall prejudice the right of either party to terminate a contract summarily for a lawful cause.

15. WARNING SYSTEM

An employee who is guilty of an offence other than gross misconduct or other lawful cause of dismissal will be warned in writing.

The following procedures will be followed:

a) The 1st and 2nd warning letters shall be recorded on the employee's record and the shopsteward informed.

b) An employee with two warnings recorded in his/her record card who commits a third offence will be issued with a last and final letter of warning and the secretary General of the Union will be given a copy of the warning.

c) If he/she commits a further misconduct, the employee will be liable to summary dismissal.

d) If an employee completes 365 consecutive days from the date of the last warning without further fault, any warning(s) recorded in his/her card will be cancelled.

e) Where an employee is summarily dismissed for lawful cause, he/she shall be paid on dismissal all monies, allowances and benefits due to him/her up to the date of his/her dismissal. (Section 44 of the Employment Act 2007).

16.TERMINATION OF SERVICE

After completion of probationary period termination of employment shall be by either party giving the other party a written notice or upon payment in lieu thereof as follows:

• An employee with service between 1 and 10 years - One month’s notice period or pay in lieu of notice of one month’s basic salary plus house allowance.

• An employee with service between 10 and 15 years - Two months’ written notice or pay in lieu of notice of 2 months consolidated salary (basic plus house allowance).

• An employee with service over 15 years – 3 months written notice or pay in lieu of notice of 3 months consolidated salary (Basic plus monthly house allowance).

• Both the employer and the employee should not terminate employment while on annual leave unless notice is given before proceeding on leave.

17.REDUNDANCY

It is accepted by both parties that, in accordance with Section 40 of the Employment Act 2007, all cases of redundancy shall be subject to the following:-

a) Definition

"Redundancy" means the loss of employment occupation, job or career by involuntary means through means no fault of an employee involving termination of employment at the initiative of the employer and the practices commonly known as abolition of office, job or occupation and loss of employment due to the Kenyanization of a business.

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) Selection of Redundant Employees

In deciding which employees shall be declared redundant the Company will assess the relative merits, ability, skill and reliability of the affected employees, but when these factors are equal the discharge will be on the basis of seniority.

d) Re-Engagement of Redundant Employees

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:-

i)pay in lieu of notice as defined in clause 16 of the Agreement.

ii)payment of wages, overtime and any other remuneration which may be due to him calculated upon the date on which he/she ceases work;

iii) Pro-rata leave and leave allowance entitlement in accordance with the Agreement.

iv) Severance pay at the rate of 22 days for every completed year of service.

v) In calculation of severance pay, any duration served above 9 months will be treated as a complete year.

18. PROTECTIVE CLOTHING

Free protective clothing will be issued by the employer to all manual workers subject to the following:

a) The protective clothing shall remain the property of the employer.

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

c) Employers are recommended to make arrangements for protective clothing to be laundered but if this is impracticable and the employees are required to wash the protective clothing issued to them, two bars of soap will be supplied for this purpose.

Two pairs of overall shall be issued to such individual employees during each 12 months period.

(d) One pair of safety boots shall be issued to deserving employees and shall be replaced when need arises in consultation with union representatives.

e) Other details and rules governing the use and maintenance of protective clothing shall be decided by the employer.

19. RETIREMENT BENEFITS

(a) When an employee retires upon attaining retirement age of 60 years he shall be entitled to 22 days salary per each completed year of service.

(b) An employee retired on medical grounds shall be entitled to benefits as provided under (a) above.

(c) Appropriate notice or pay in lieu of notice as defined in clause 16 of this agreement shall apply.

(d) Provident Fund – The Company will establish a Provident Fund for employees who leave the Company.

20. ABSENTEEISM

Any employee absenting himself from duty, without first having obtained the proper approval of the Company shall forfeit any pay entitlement for such period of absence and shall also be subject to disciplinary action, which may include dismissal in accordance with the Employment Act.

Without prejudice to the foregoing, any employee who absents himself/herself on account of being held in police custody or remand for a continuous period of 14 days or more shall be regarded as having by his/her own volition, terminated his own employment subject to having no reasonable excuse acceptable to the Company.

21. CASUAL EMPLOYMENT

a) Casual employment shall be undertaken for a period not exceeding three consecutive months.

b) Casual employees shall be paid at the end of each day worked except where the employee has indicated to the Company in writing that payment be made weekly of on the last day of the contract. The rates of pay shall be based on the minimum basic wages for the jobs they are performing plus the House Allowance of that job as negotiated in this collective agreement.

c) The calculation of the hourly rates of casuals shall be as follows:-

Hourly pay = (grade minimum + house allowance) 191

22. DEATH OF AN EMPLOYEE

a) In the event of death of an employee, the company shall contribute KShs.30,000/= towards funeral expenses.

b) In the event of death of an employee, the next of kin will be entitled to the employee's benefits under clause 19 (a).

23. JOB GRADING, MINIMUM WAGES AND HOUSE ALLOWANCE

GRADE JOB TITLES/OCCUPATIONS MINIMUM WAGE (1/4/2013 to 1/4/2014)
Kshs. Kshs.
Grade I (a) Messengers, Cleaners, Gardeners

Blackeners, Loaders, Packer, Day Watchman

(b) Night Watchman

9,830.00

10,962.00

10,224.00

11,948.00

Grade II Auto-turners, Drillers, Tappers,

Millers, Hardness Testers

Spring Grinders, Bush Fitters,

Assistant Spring Assemblers, Reamers

Assistant eye Rollers

Assistant spray painters

11,136.00 12,138.00
Grade III Machine Operator

a) Centreless Grinders,

Press Operators, Forging Press,

Springs Assemblers, Thread Rollers,

Spring Eye Rollers

b) Spray Painters,

Copy Typists

c) Car & Light Vans up to 4000

13,252.00

13,252.00

13,252.00

14,445.00

14,445.00

14,445.00

Grade IV a) Furnace Operator

b) Furnace Attendance

13,252.00

11,136.00

14,445.00

12,138.00

Grade V

a) Ungraded Artisans

b) Artisan Grade III

c) Artisan Grade II

d) Artisan Grade I

13,252.00

16,653.00

17,982.00

22,110.00

14,445.00

18,152.00

19,600.00

24,100.00

Grade VI Junior Clerks, Assistant Inspectors 12,705.00 13,848.00
Grade VII General Clerks, Telephone

Operator, Receptionists,

Storekeeper

15,115.00 16,475.00

24. JOB GRADING, MINIMUM WAGES AND HOUSE ALLOWANCE

GRADE JOB TITLES/OCCUPATIONS HOUSE ALLOWANCE (1/4/2013 to 1/4/2014)
Kshs. Kshs.
Grade I (a) Messengers, Cleaners, Gardeners

Blackeners, Loaders, Packer, Day Watchman

(b) Night Watchman

3,065.00

3,065.00

3,415.00

3,421.00

Grade II MACHINE ATTENDANTS

Auto-turners, Drillers, Tappers,

Millers, Hardness Testers

Spring Grinders, Bush Fitters,

Assistant Spring Assemblers, Reamers

Assistant eye Rollers

Assistant spray painters

3,071.00

3,421.00

Grade III Machine Operator

a) Centreless Grinders,

Press Operators, Forging Press,

Springs Assemblers, Thread Rollers,

Spring Eye Rollers

b) Spray Painters,

Copy Typists

c) Car & Light Vans up to 4000

3,105.00

3,105.00

3,105.00

3,455.00

3,455.00

3,455.00

Grade IV a) Furnace Operator

b) Furnace Attendance

3,112.00

3,071.00

3,455.00

3,421.00

Grade V a) Ungraded Artisans

b) Artisan Grade III

c) Artisan Grade II

d) Artisan Grade I

3,105.00

3,130.00

3,150.00

3,217.00

3,450.00

3,480.00

3,500.00

3,421.00

Grade VI Junior Clerks, Assistant Inspectors 3,118.00 3,468.00
Grade VII General Clerks, Telephone

Operator, Receptionists,

Storekeeper

3,130.00 3,480.00

25. SUSPENSION

An employee may be suspended from duty for any reason for a period of 14 days with full pay until either lifted or services terminated.

26. GRATUITY

An employee whose services terminated or resigns from employment shall be entitled to gratuity at the rate of 22 days basic salary for each completed year of service. An employee who is dismissed for gross misconduct or absconds duty shall not be entitled to gratuity.

27. BAGGAGE ALLOWANCE

On retirement an employee will be entitled to Kshs.1,200/- as Baggage Allowance to cover the cost of transportation of household effects.

28. WAGES

a)Every unionisable employee in the service of the company as at 31st March, 2013 will be brought to the new Basic Minimum Wage or given a wage increase of 12% of his basic rate whichever is higher with effect from 1st April, 2013 for the first year of the Agreement.

b)With effect from 1st April, 2014 every unionisable employee shall receive a further 12% wages increase for the second year of the Agreement.

29. EFFECTIVE DATE AND DURATION

This Agreement shall come into force on 1st April, 2013 and shall remain in operation for a further period of 24 months. Thereafter the Agreement shall continue to be in force until such a time as either party desiring to amend it shall by giving one month's notice in writing to the other indicating their wish to amend or terminate the Agreement.

SIGNED FOR AND ON BEHALF OF THE COMPANY

D. NDERUA.

DIRECTOR

A. LUYALI

PERSONNEL MANAGER

SIGNED FOR AND ON BEHALF OF THE UNION

JUSTUS MAINA OTAKWA

GENERAL SECRETARY

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

ELIAS NYAWADE CLEMENT

CHIEF SHOPSTEWARD

WITNESSED BY:

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

A.O. AMBENGE

SENIOR EXECUTIVE OFFICER,

FEDERATION OF KENYA EMPLOYERS

SIGNED IN NAIROBI THIS........................... DAY OF .............Jan................................. 2013

/jan

M/S. Auto Ancillaries - 2013

Start date: → 2013-04-01
End date: → 2015-03-31
Name industry: → Manufacturing
Name industry: → Manufacture of electrical equipment
Public/private sector: → In the private sector
Concluded by:
Name company: → M/S. Auto Ancillaries
Names trade unions: → Amalgamated Union of Kenya Metal Workers

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 42 %
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: → 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: → Insufficient data 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: → 8.0
Working hours per week: → 44.0
Working days per week: → 6.0
Paid annual leave: → 26.0 days
Paid annual leave: → 4.0 weeks
Paid bank holidays: → Christmas Day (25th December), Good Friday, Easter Monday, Idd – ul – Fitr
Rest period of at least one day per week agreed: → No
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: → 0
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 3000.0

Premium for overtime work

Premium for Sunday work

Premium for Sunday work: → 100 %

Meal vouchers

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