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MEMORANDUM OF AGREEMENT BETWEEN DELUXE INKS LIMITED (HEREIN AFTER REFERRED TO AS THE ‘COMPANY’) OF THE FIRST PART

AND

KENYA CHEMCIAL AND ALLIED WORKERS’ UNION (HEREINAFTER REFERRED TO AS THE ‘UNION’) OF THE SECOND PART.

1.Subject Matter

The Terms and Conditions of Employment set our in this Agreement shall be observed by both parties and shall apply to all unionisable employees covered by the Recognition Agreement as provided for by the current Industrial Relations Charter between FKE/COTU (K).

2. (a) BASIC MINIMUM WAGES

Grade Title 1st year w.e.f

1st Dec. 2010

1.(a ) Supervisors BASIC 13,175 – 21,358
II (a) Senior machine operators, vanish plant operator, senior store-keepers, senior drivers BASIC 9,787 – 18,530
II Mixers, Batch Weighers, store-keepers, drivers, dispatch clerk BASIC 7,963 – 10,570
III (a) machine operators, weighers, general artisan BASIC 7,963 – 10,570
IV Loaders, office messengers BASIC 7,963 – 10,570
V Cleaner BASIC 10,518

b) General Wage Increase

All employees existing as at 1st Dec. 2009 will get general wages increase of 11% in First year of the agreement and another 12% wage increase in the second year of the agreement.

3.Housing Allowance

All employees shall be entitled to a house allowance of 17% of his/her basic pay per month.

4.Working Hours

An employee shall normally be required to work whether on shift or otherwise, a total of 45 hours per week, excluding meal breaks. An employee who is required to work in excess of such hours shall be paid overtime for such excess hours at the appropriate rate as provided for by clause 5 of this agreement.

5.Overtime

Overtime rates shall be as follows:-

a) For hours worked on weekdays – time plus half.

b) For hours worked on Gazetted Public Holidays and Rest days – Double time.

6.Gazetted Public Holidays

An employee shall normally be granted full pay on Gazetted Public Holidays, but an employee who is required to work on such holidays, shall be paid for time worked as provided by clause 5 above.

7.Compassionate Leave and Leave of Absence

a) An employee desirous of taking leave on compassionate grounds shall, by prior arrangement with the company, be granted such leave up to his/her earned entitlement under clause 8 of this agreement and the leave taken shall be subsequently set off against his/her annual leave.

b) An employee may in addition to the leave provided for in paragraph (a) of this clause be granted seven days compassionate leave with out pay in any one year.

8.Annual Paid Leave

An employee shall be entitled to annual leave of 26 working days every year on completion of 12 months from the anniversary date of his/her employment.

9.Maternity Leave

A female employee shall be entitled to three (3) months maternity leave, in any one year and shall not forfeit her annual leave in that year.

In the event that she is unfit to resume duty after expiry of Three (3) Months leave, then the provisions of clause Ten (10) shall apply.

10.Sick Leave

An employee shall be entitled to sick leave up to a maximum of forty Five (45) days with full pay, and thereafter to sick leave up to a maximum of forty Five (45) days with half pay, in each period of twelve months continuous service. The employee shall produce a certificate of incapacity covering each period of sick leave claimed, signed by a medical practitioner or a person acting on his behalf in charge of a dispensary or medical aid centre, and provided that the probationary period has been completed. Management may increase the above period at its own discretion.

11.Leave Travelling Allowance

An employee proceeding on authorized annual leave to his home shall be paid a leave travel allowance of 2,400/= for the first year and Kshs.2,800/= the second year.

12.Medical Treatment

Medical Treatment Rules to apply.

13.Injury by Accident

In the event of accident covered by the Workmen’s Compensation Act, full pay will be given to the employee and where the Act requires payment of half pay during a period of certified temporary disability, an employee shall be paid by the company his/her full wages.

14.Safari Allowance

An employee who is required to perform his duties away from his principal place of work, and as such is unable to take his breakfast, lunch or dinner at his home shall be entitled.

Breakfast Kshs. 80.00
Lunch Kshs. 130.00
Dinner Kshs. 150.00
Accommodation Kshs. 500.00
Total Kshs. 860.00

15.Employee in Acting Capacity

An employee who is appointed to any acting capacity for a period of at least seven (7) days shall be paid an acting allowance at the rate of the full difference in his salary and the higher grade in which he/she has been called upon to act. The person in acting capacity will be notified in writing.

16.Certificate of service

This will be issued in accordance with Section 51 of the Employment Act 2007.

17.Termination of Employment.

Except where an employee is summarily dismissed for misconduct or other lawful causes as prescribed in the Employment Act 2007 and provided the probationary period has been completed, the company will be required to give the following notice to its employee and an employee must give similar notice of resignation.

i) Up to 5 years service – 1 month notice or 1 month salary in lieu thereof.

ii) Over 5 years service – 2 months notice or 2 months pay in lien thereof.

18.Warning System

A permanent employee who is guilty of an offence other than gross misconduct or other lawful cause for dismissal may be given a warning in writing which he/she shall be required to sign. The signature or initial of an employee on the history record card shall not mean that the employee is pleading guilty to the offence recorded against such employee but simply to confirm that it has been recorded in the employee’s presence or with his/her full knowledge. The employee shall be free to make an appeal against such warning in accordance with the procedure laid down in the Recognition Agreement between the Union and the Company.

Should the employee’s appeal be upheld, the warning will be erased from the history record card. An employee who receives three such warnings shall be liable to summary dismissal on the fourth incident, provided that all such warnings shall be erased from the history record card of an employee after a period of 12 months from the date of the last warning. The union shall be advised of a second warning being given to an employee.

19.Redundancy:

Definition

a) Redundancy means, 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 company where the service of an employee are superfluous and the practices commonly known as abolition of office, job or occupation due to Kenyanization of a business, but it does not include any such loss of employment by a domestic servant.

b) Alternative Employment

In an effort to avoid redundancy, the company will endeavour to arrange suitable alternative employment within the company. If the

Employment is not acceptable to the employee concerned, he will be classified as redundant and therefore, eligible for the entitlements outlined in paragraph (f), of this clause, except where alternative employment offered is of the same grade, in which case, the redundancy benefits will only be paid at the discretion of the company.

c) Consultation

In the event of redundancy, the company undertakes to consult the union concerning the reasons for and the extent of the intended redundancy.

c) Selection of Redundant Employees

In deciding which employees shall be declared redundant, the company will assess the relative merits and abilities of the affected employees, but when these factors are equal, the discharge will be on the basis of seniority and reliability. Membership or non-membership of the union will not be a factor.

d) Re-Engagement

Redundant employees shall be given first consideration for re-engagement by the company according to their qualifications, should a vacancy arise.

e) Entitlement of Redundant Employees

In the event of an employee being declared redundant he/she shall be entitled to:-

i) The normal notice or pay in lieu as defined in this Agreement, termination of employment, clause 17.

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

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

iv) Severance pay on the basis of 20 days pay for every completed year of service.

20.Probation

An employee shall be considered to be on probation for a period not exceeding three months from the date of engagement and during this time either party shall be subject to 7 days notice of intention to terminate employment or will be paid 7 days pay in lieu thereof.

21.Retirement Benefits/Gratuity Payments

Employees who terminate employment with the company for whatever reason other than an act of gross misconduct shall be paid service gratuity/service benefits at the rate of 20 days pay for each year of service based on his/her basic pay at the time of leaving employment.

22.Termination of Employment on Medical Grounds.

Employees who leave employment with the company on medical grounds shall be paid service gratuity at the rate of 20 days pay for each completed year of service.

23.Death of Employee Whilst in Employment.

In the unfortunate event of death of a unionsable employee, the company shall provide Kshs. 30,000/= to assist in the funeral expenses of the deceased employee.

24.Uniforms and Protective Clothing.

An employee who is required to wear uniform or protective clothing by nature of his/her work in accordance with the provisions of the Factories Act shall be issued with two pairs of uniform or protective clothing each year free of charge by the company. The company shall be responsible for such laundries.

25.Baggage Allowance

On retiring at normal age or on medical grounds, or on being declared redundant, an employee shall be given a baggage allowance of Kshs. 13,000/= to assist with transportation of his/her belongings to his/her home.

26.Casual Employees

a) Rates of pay will be commensurate with the job the casual is employed to do and as set out in this Agreement. Where the rates of pay are deconsolidated there will be 15% of the basic pay as housing allowance.

b) Subject to availability of work/job, confirmation into permanent terms shall be after completion of three (3) month’s service.

27.Summary Dismissal

Provision of Section Forty Four (44) of the Employment Act 2007, will apply in respect to Summary Dismissal.

28.Shift Allowance

An employee working on shift roster shall be entitled to a shift allowance of Kshs. 100/= per Night worked to compensate him/her for the inconvenience of working on shift.

29.Effective Date and Duration of the Agreement

This Agreement shall be effective from 1st Dec. 2011 and shall remain in force thereafter for a period of 24 months until 30th Nov. 2013. The agreement may be amended or terminated at the end of the period by either party giving One month written notice of the desire to amend or terminate and by stating the amendments proposed.

SIGNED:FOR AND ON BEHALF OF THE COMPANY

…………………………………………………….

MANAGING DIRECTOR

SIGNED:FOR AND ON BEHALF OF THE UNION

……………………………………………………

WERE DIBO OGUTU

NATIONAL GENERAL SECRETARY

WITNESSED BY:

……………………………………………..

JAMES ODORO OBURA – AREA SECRETARY

NAIROBI, CENTRAL & EASTERN PROVINCES

…………………………………………………….

GEORGE GWAKO – RECRUITMENT & INDUSTRIAL REALTION ASSISTANCE

……………………………………………………..

ERNEST MUSINDE

SHOPSTEWARD

IN THE PRESENCE OF:

……………………………………………..

L. W. KARIUKI

HEAD OF INDUSTRIAL SERVICES – FKE

SIGNED IN NAIROBI THIS ………………… DAY OF ……………… 2012

Deluxe Inks Limited - 2011

Start date: → 2011-12-01
End date: → 2013-11-30
Name industry: → Manufacturing
Name industry: → Manufacture of chemicals and chemical products
Public/private sector: → In the private sector
Concluded by:
Name company: → Deluxe Inks Limited
Names trade unions: → Kenya Chemical and Allied Workers Union

TRAINING

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

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 37 %
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: → Yes

WORK AND FAMILY ARRANGEMENTS

Maternity paid leave: → 13 weeks
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: → 7 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 week: → 45.0
Paid annual leave: → 26.0 days
Paid annual leave: → 4.0 weeks
Paid bank holidays: → 
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: → 1
Provision that minimum wages set by the government have to be respected: → No
Agreed lowest wage per: → Months
Lowest wage: → KES 7963.0
Adjustment for rising costs of living: → 0

Wage increase

Wage increase: → 11.0 %

Extra payment for annual leave

Extra payment for annual leave: → KES 2800.0

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Premium for Sunday work

Premium for Sunday work: → 200 %

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
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