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MEMORANDUM OF AGREEMENT Between BAGS AND BALERS MANUFACTURES (K) LIMITED And THE KENYA UNION OF PRINTING, PUBLISHING, PAPER MANUFACTURERS AND ALLIED WORKERS

1.PREAMBLE

(a) The Company and the Union meeting together in a free and voluntary Association, agree and enter into an agreement negotiated between them at the Joint Negotiation Committee meeting which shall apply to the workers covered by the Recognition Agreement, subject to exclusion of managerial, supervisory and confidential staff as currently agreed upon between F.K.E./C.O.T.U.(K).

(b) Any other worker(s) or any category of employees who are not Union members by virtue of their faith or any other reasons and wish to be covered or enjoy the benefits achieved and accrued out of this CBA shall have to pay Agency fees as provided under Labour Relations, Act 2007.

2. MINIMUM BASIC AND WAGES INCREMENTS TO EXISTING EMPLOYEES

a) MINIMUM BASIC WAGE RATES

The parties have agreed that no employees in any category will get less than minimum wages agreed in this agreement

b) WAGE INCREASE

(i) All employees who were in the employment as at 31st August, 2014 will receive the following wage increase shall receive 10% of their salaries w.e.f from 1st September, 2014.

(ii) All employees who are in employment as at 31st August, 2015 will receive the following wage increase 10% w.e.f from 1st September, 2015.

c) HOUSING ALLOWANCE

In addition all employees not housed by the company shall receive housing allowance of Kshs 4500 per month.

3. HOURS OF WORK

Working Week

(a) The normal working week shall be forty four (44) hours worked over five full days per week provided that an employee who is required to work in excess of such hours shall be paid overtime at that appropriate rate provided by the overtime clause of this agreement

(b) The Normal working hours from

Monday to Thursday shall be from 8.00 am – 5.30pm

Friday from 8.00 AM to 4.30 PM.

4. LATE ARRIVALS

If an employee reports for work late, that is after the time fixed by his employer for the commencement of work, any deduction for the time lost shall be calculated at the normal hourly rate. Any permission given by an employer to an employee for absence may also be deducted at normal rates.

5. OVERTIME

The basic hourly rate for any employee shall be calculated by the formula:-

(Employee's basic salary per month x 12) divided by 2288

An employee eligible for overtime payment who works longer hours in any day hours fixed by his employer in accordance with the terms of agreement shall be paid at the rate of 1½ times the basic hourly rate applicable to the particular employee concerned exempting:

a) Work on the seventh day nominated by the employer or Sunday

b) Work on gazetted public holidays (as laid down in the Public Holidays Act), which shall be paid at the rate of 2 times basic hourly rate applicable to the particular employee concerned.

6. ANNUAL LEAVE

a) Twenty four (24) working days leave shall be granted for each completed year of service.

b) Annual leave may be accumulated to maximum of thirty (30) days.

7. GAZETTED PUBLIC HOLIDAY

In addition to annual leave employees will be entitled to the following Public Holidays for the duration that they remain gazette as Public Holidays.

New Year Day

Idd-Ul-Fitr

Good Friday

Mashujaa Day

Easter Monday

Labour Day

Madaraka Day

Christmas Day

Boxing Day

8. LEAVE TRAVELLING ALLOWANCE

An employee shall be entitled to a travelling allowance of KSh. 4,000/= payable in advance when he/she qualifies to proceed on his annual leave. Such leave allowance will be paid once every year. If any employee does not take his/her leave at the request of the employer, such allowance will be accumulated.

9. RELIGIOUS HOLIDAYS

Members of various religions are entitled to religious holidays on days scheduled as such for their particular religions by Government.

10. SICK LEAVE

Employees are entitled to 30 days sick leave on full pay and further 15 days on half pay per annum in each period of 12 months continuous service. The sick leave is subject to production of a medical certificate of incapacity covering each period of sick leave claimed and signed by a medical practitioner or a person acting on behalf of in charge of a dispensary. Where the employer is not satisfied with such certificate produced by employee they may refer the employee for examination by a Company Doctor.

11. TERMINATION OF EMPLOYMENT

a. On termination employees with service of up to five (5) years service shall be entitled to notice period of one month or a month’s pay in lieu. On resignation the employee shall give one calendar month's notice or pay one months salary in lieu.

b. Those with more than five (5) years' service shall be subject to two calendar months notice or two months pay in lieu and on resignation shall give two calendar months notice or pay two months' salary in lieu.

c. An employee whose employment has been terminated by the employer shall be paid gratuity at 15 days basic salary for each completed year of service except where such termination is on account of discipline.

12. DISMISSAL OF EMPLOYEES

(a) An employee may be summarily dismissed for proven gross misconduct as provided for in Employment Act 2007 Section 44. Such an employee will only be paid up to and including the date of dismissal plus accrued leave.

(b) Where an employee commits any act of misconduct he/ she shall be given a written warning for each act and on third instance his employment may be terminated in accordance with paragraph (a) above. An employee shall be entitled to refer any such warnings to his Union for appeal. If an employee completes 12 months from the date of the second warning without further faults, any warning recorded on his/her file will be cancelled but remain in the employees file

13. REDUNDANCY

a. In an event of Redundancy the employer shall inform the Union and Ministry of Labour of the reasons for the existence of the intended redundancy 1 month in advance.

b. The selection of employees affected by redundancy will be conducted with due regard to seniority, skills, ability and reliability of each employee.

c. No employee will be disadvantaged due to union activities

d. The affected employees shall be entitled to appropriate notice provided in termination clause 12.

e. An employee who is declared redundant shall be entitled to severance pay at the rate of 18 days for each completed year of service.

14. CHECK-OFF SYSTEM

The provision of Labour Relations Act 2007 will apply.

15. MATERNITY LEAVE

(a) A female employee shall be entitled to three months maternity leave with full pay.

i) A female employee who has taken maternity leave shall not forfeit her annual leave entitlement in that year.

ii) Such a female employee shall produce a medical certificate signed by a recognized and duly qualified medical practitioner in charge of a medical aid centre, or a dispensary or by a person acting on her behalf.

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

(b) PATERNITY LEAVE

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

ii) A male employee intend on proceeding for paternity leave shall only be entitled to the right to paternity leave if he gives not less than seven(7) days notice in advance. The notice herein shall be in writing.

16. PROBATION

(a) The period of probation shall be a maximum of three months from the date of an employee's engagement and may be extended by a further period of 3 months with agreement of employee, if an employee is not satisfactorily performing. At any time prior to the full completion of a probationary period termination notice in writing shall be fourteen days by either employer or employee.

(b) After successful completion of probation an employee will be issued with a confirmation letter

17. CASUAL WORKERS

a)Any temporary or casual worker who completes three consecutive months with an employer shall be absorbed into the permanent establishment. During the said three months he shall be paid the minimum salary as laid down in this Agreement for his particular job. If the employee is discharged during the third month and is recalled within a period of two months he shall become a regular worker.

b) Any casual worker absorbed into the permanent establishment will not require serving any further probation period.

18. MEDICAL BENEFITS

Medical treatment will be provided as required by Employment Act 2007.

19. WORK INJURY

Work Injury Benefits Act 2007 shall apply to all cases involving injury sustained while on normal duties as long as there was no negligence involved

20. LEAVE FOR UNION PURPOSES

a) Employer shall grant seven days paid leave in any one year to an employee to attend any Union seminar or business

b) However, where an employee is required to a course or seminar for a period exceeding seven days, the Union's General Secretary shall write to the employer requesting for extensions of such period.

c) Union's General Secretary shall notify employer in writing one month notice in advance to grant such leave or release in urgent 15 days in advance of the date of release.

21. ACTING ALLOWANCE

Where an employee is working an acting appointment on a higher grade than his own for minimum period of one month he shall receive acting allowance equal to the difference between his normal pay and the minimum basic rate of the higher grade Where the normal pay is equal or greater than the minimum basic rate he should be paid one quarter of the difference between his normal pay and the normal pay of the person of which he is acting. An employee on acting capacity should be notified in writing.

22. COURSE TRAINING

The company will at its own discretion endeavor to organize training courses for its employees.

23. COMPASSIONATE LEAVE

In addition to the Annual Leave entitlement employees may be granted compassionate leave without pay at the discretion of such employers. Such compassionate leave may be deducted from employee's annual leave entitlement subject to a prior consent by the employer.

24. TRANSPORTATION

Transport will be provided by the employer to all employees leaving duty or reporting on duty from 7.00 pm to 6.00 am

25. PROMOTION

Where a vacancy of promotional nature arises, the employer shall give first consideration to existing employees within the department or group in which the vacancy occurs taking into consideration such factors as qualification and ability, length of service and experience provided the employee has documented qualifications.

Promotional letters shall be given to those employees promoted

26. PROTECTIVE CLOTHING

(a) The company shall provide two (2) overalls per year to the factory workers. One overall will be issued in January and the other at the beginning of August each Year. This will not apply to workers on probation

(b) The company will also issue one pair of safety boots each year.

(c) The provisions of Occupational Safety and Health Act 2007shall apply in regard health and safety of employees in the factory.

(d) Each employee will receive one (1kg) bar standard soap every month.

27. RETIREMENT BENEFITS

a) Retirement age shall be 55 years and shall be determined by the age indicated on the employee's National Identity Card.

b) An employee may be retired on medical grounds and such retirement shall be coupled with all benefits stipulated under the termination clause; Provided that before the employee is so retired, a medical report shall be obtained from the company's doctor. Where desired, an employee shall be entitled to obtain his/her own medical report on the state of his/her health from an approved Government hospital.

c) In the event of death of an employee whilst in service and who would otherwise be eligible for retirement his/her entitlement under this clause shall be paid to his/her legal heirs as nominated by the deceased in his/her personal file or written will.

28. DEATH OF AN EMPLOYEE

When an employee dies whilst in employment of the company, the company shall pay a minimum of KShs.30,000 towards the burial of an employee.

29. CERTIFICATE OF SERVICE

Upon termination of employment or leaving the company services an employee shall give a certificate of service stating:

(a) Full name of the employee

(b) Date of engagement

(c) Date of termination of employment

(d) Capacity in which he/she was employed

30. DURATION OF AGREEMENT

This Agreement shall come into force on 1st September, 2014 and shall remain in force until 31st August, 2016. Thereafter, it shall continue in force until either party by giving two months notice in writing, shall indicate their wish to amend or terminate the Agreement.

31. JOB CLASSSIFICATIONS

GRADE WEF 1st Sept. 2014

10 % increase

WEF 1st Sept. 2015

10 % increase

Grade 1. (Un-skilled)

Cleaners, Messengers, Day and Night Watchman

12,100 13,310
Grade II. (Semi skilled)

Machine attendants, Telephone Operators.

13,430 14,770
Grade III (Skilled)

Machine Operators, Clerks, Storekeepers

16,335 17,970

SIGNED FOR AND ON BEHALF OF THE COMPANY

…………………………… ……………………………….

VIREN JOSHI

MANAGING DIRECTOR

PATRICK NGARE

GENERAL MANAGER

…………………………………..

MESHACK MWANZIA

HUMAN RESOURCE MANAGER

SIGNED FOR AND ON BEHALF OF THE UNION

…………………………….. ……………………………..

RAJAB MWONDI

NATIONAL GENERAL SECRETARY.

DEPUTY G/SECRETARY.

ISAAC WAMBOYE

………………………………….

JACOB MUSILI

SHOPSTEWARD

IN THE PRESENCE OF:

…………………………….

SALIM WA- MWAWAZA

INDUSTRIAL RELATIONS OFFICER – FKE

SIGNED IN NAIROBI THIS……………..DAY OF ………………….2015.

Bags and Balers Manufacturer (K) Limited - 2014

Start date: → 2014-09-01
End date: → 2016-08-31
Name industry: → Manufacturing
Public/private sector: → In the private sector
Concluded by:
Name company: → Bags and Balers Manufacturer (K) Limited
Names trade unions: → Kenya Union of Printing, Publishing, Paper Manufacturers and Allied Workers

TRAINING

Training programmes: → Yes
Apprenticeships: → No
Employer contributes to training fund for employees: → No

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: → 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: → 9.0
Working hours per week: → 44.0
Working days per week: → 5.0
Paid annual leave: → 24.0 days
Paid annual leave: → 5.0 weeks
Paid bank holidays: → Christmas Day (25th December), Easter Monday, Madaraka Day, National Women's Day (9th August)
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
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → 10.0 %
Wage increase starts: → 2014-09

Extra payment for annual leave

Extra payment for annual leave: → KES 4000.0

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Premium for Sunday work

Premium for Sunday work: → 50 %

Allowance for commuting work

Allowance for commuting work: → KES  per month

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
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