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MEMORANDUM OF AGREEMENT

BETWEEN

DUNLOP INDUSTRIES LIMITED (HEREINAFTER REFERRED TO AS THE “COMPANY” OF THE FIRST PART

AND

KENYA CHEMICAL AND ALLIED WORKERS’ UNION

(HEREINAFTER CALLED THE “UNION”) OF THE SECOND PART

PART 1: TERMS AND CONDITIONS OF SERVICE

1.SUBJECT MATTER

The terms and conditions of employment set out in this Agreement shall be observed by the parties to it, and shall apply to all employees covered by the Recognition and negotiating procedure agreement signed between the parties.

2.PROBATIONARY PERIOD

All employees shall be considered on probation for a period not exceeding three months from the date of engagement and during this time an employee will be subject to one week’s notice of intention to terminate the employment or will be given one week’s pay in lieu of such notice.

3.WORKING HOURS

(a) The normal working week for all unionisable employees shall consist of forty two and a half (42.5) hours spread over six (6) days of the week.

(b) Any employee of the company who is required to work in excess of hours stipulated in this clause shall be entitled to be paid overtime in accordance with the overtime clause of this agreement.

4.OVERTIME

Overtime payment shall be as follows:

For time worked in excess of the normal number of hours of work in a week:-

(a) Normal working days – time plus a half

(b) Rest days and Gazetted Public Holidays – Double time

5.ANNUAL LEAVE

The employee shall be entitled to 28 working days paid annual leave on completion of every 12 months service or on pro-rata basis where the period of 12 months of service is not completed. Gazetted public holidays falling within the leave period will be added on to the leave.

6.GAZETTED PUBLIC HOLIDAYS

An employee shall normally be granted leave with full pay on Gazetted Public Holidays, provided that an employee who is required to work on such holidays shall be paid double time worked as provided for by overtime clause.

7.COMPASSIONATE LEAVE

An employee may be given 7 days compassionate leave of absence at the discretion of the company. Such leave, which shall not be unreasonably refused nor unnecessarily delayed, shall not normally be paid.

8.SICK LEAVE

In the event of illness, absence from work will be permitted for a period of up to forty five (45) days with full pay and a further forty five (45) days at half pay in any calendar year subject to presentation of a medical certificate signed by a registered medical practitioner covering the entire period of sickness to the effect that the absence is necessary on medical grounds and is not self inflicted.

9.MATERNITY LEAVE/PATERNITY LEAVE

A woman employee shall be entitled to three month’s maternity leave with full pay. A woman who has taken two months maternity leave shall not forfeit her annual leave in that year.

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

10.REDUNDANCY

(a) ‘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 and loss of employment due to the Kenyanisation of a business, but it does not include any such loss or employment of a domestic servant.

(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) Consultation

In the event of redundancy, the company undertakes to hold prior discussion with the Union concerning the reasons for and the extent of the intended redundancy.

(d) Selection of Redundant Employees

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

(e) Re-engagement

Redundant employees will be given prior consideration for re-engagement where possible by the company should a vacancy arise according to their qualification and the employees offer of themselves for employment, last one out will be the first one in.

(f) Entitlement of Redundant Employees

In the event of an employee being declared redundant, he will be entitled to:

(i) The normal notice of pay in lieu of notice as defined in Clause 12 of this Agreement

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

(iii) Pro-rata leave and leave allowance entitlement in accordance to this Agreement.

(iv) Severance pay on the basis of:

1-10 years service – 21days pay for each completed year of service

Over 10 years – 24 days pay for every completed year of service

11.WARNING SYSTEM

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

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

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

Provided that where an employee completes three hundred and sixty five days from the date of the third warning without further misconduct any warning entered in his employment shall be cancelled.

12.TERMINATION OF EMPLOYMENT

It shall be a condition of every contract of employment that on successful completion of the probation period referred to in Clause 2, the contract shall be terminable by not less than one month’s notice for those with 1-10 years service and two month’s notice for those with over 10 years service. The notice shall be given by either party in writing, or otherwise by the payment by either part in lieu of notice of equivalent wages, but nothing shall prejudice the right of the employer to terminate a contract summarily for lawful cause.

13.UNIFORMS AND PROTECTIVE CLOTHING

An employee who is required to wear uniform or overalls by nature of his work or in accordance with the provision of the Factories Act shall be issued with 2 pairs of uniform free of charge by the company. The company shall be responsible for the laundering of uniforms and overalls. All uniforms, overalls and protective clothing shall remain the property of the company.

14.CERTIFICATE OF SERVICE

Every employee shall be given a certificate of service by the company upon the termination of his employment unless such employment has continued for a period of less than four consecutive weeks, and every such certificate shall contain:-

(a) The name of the company and postal address

(b) The name of the employee

(c) The date when employment commenced

(d) The nature and usual place of employment

(e) The date when employment ceased; and

(f) Such other particulars as may be prescribed

15.INJURY BY ACCIDENT

Provisions of Work Injury Benefits Act 2007 shall apply.

16.DEATH OF AN EMPLOYEE

All employees are covered by the Group Life Policy with respect to the Last Expense Benefit.

17.SAFARI ALLOWANCE

An employee who is required to perform his work away from his principle place of employment shall be entitled to be paid subsistence allowance as follows:

Breakfast- 250.00

Lunch- 300.00

Dinner- 400.00

Accommodation- 1,000.00

1,950.00

18.ACTING CAPACITY

An employee who is entitled to any acting capacity for at least 14 days shall be entitled to be paid acting allowance at the rate of the full difference in his salary and of the higher grade in which he/she has been called upon to act. The person in acting capacity will be notified in writing.

19.MEDICAL TREATMENT

This shall be as per existing medical cover under Avenue Health Care.

20.LEAVE TRAVELLING ALLOWANCE

When proceeding on annual leave, an employee shall be entitled to Kshs.5,000/- Leave Travel Allowance.

21.PROMOTION

This will be at the discretion of the employer.

22.SUMMARY DISMISSAL

The provisions of the Employment Act 2007 will apply in respect of summary dismissal.

GRADE Outgoing 1ST YEAR (10%) 2ND YEAR (10%)
Grade 1

General Workers, Tea Makers, Messengers, Loaders, turn boys, upgraded artisans

15,003.00/= 16,503/= 18,154/=
Grade 2

Machine Operators, , Artisan Grade III, Receptionists, Copy Typists, drivers (car and light vans)

18,005.00/= 19,806/= 21,786/=
Grade 3

Artisan Grade II, , storekeepers, Drivers (Medium trucks)

20,004.00/= 22,005/=

24,205/=
Grade 4

Artisan Grade I, Production Supervisor, Quality Control Assistants, Driver (Heavy Commercial vehicles)

25,006.00/= 27,507/= 30,257/=
GRADE 5

Production Superintendent

Maintenance Superintendent

28,339.00/= 31,173/= 34,290/=

NB

Those whose current wages exceed minimum wage for their grade will have annual increments negotiated in the CBA (10% 1st year and 10% 2nd year) applied on their existing wages.

23.GRATUITY/SERVICE BENEFITS

Upon termination of employment for reasons other than gross misconduct, an employee shall be entitled to receive 22 days pay for each completed year of service.

24.NIGHT SHIFT ALLOWANCE

A Night Shift Allowance of Kshs.220/- per shift shall be paid.

25.EFFECTIVE DATE AND DURATION

This Agreement shall be effective from 1st January 2013 and shall remain in force for a period of 2 years. Thereafter, the Agreement shall continue in force until it is amended and any party wishing to amend it shall give the other one month’s prior notice setting out in detail all the amendments desired.

SIGNED: FOR AND ON BEHALF OF DUNLOP INDUSTRIES LIMITED

……………………………….

JOSEPHAT WACHIRA MUTUGI

GENERAL MANAGER

……………………………….

GLADYS WANJIKU KAMAU

GROUP FINANCE MANAGER

SIGNED: FOR AND ON BEHALF OF KENYA CHEMICAL AND ALLIED WORKERS UNION

…………………………

WERE D. OGUTU, OGW

NATIONAL GENERAL SECRETARY

WITNESSED BY:

……………………………………………

JAMES O. OBURAGEORGE GWAKO

AREA SECRETARYRECRUITMENT/I.R. ASSISTANT

…………………………….. ……………………………….

FELIX SIGARDOMINIC NYAMAI

SHOPSTEWARD SHOPSTEWARD

IN THE PRESENCE OF

……………………………………………………….

G.R. AMBUCHE

INDUSTRIAL RELATIONS OFFICER

FEDERATION OF KENYA EMPLOYERS

DATED AT NAIROBI THIS………………….DAY OF………………2012

/jan

Dunlop Industries Limited - 2013

Start date: → 2013-01-01
End date: → 2015-01-01
Name industry: → Manufacturing
Name industry: → Manufacture of bricks, tiles, glass, ceramic goods, and alike
Public/private sector: → In the private sector
Concluded by:
Name company: → Dunlop Industries Limited
Names trade unions: → Kenya Chemical and Allied Workers Union

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
Maternity paid leave restricted to 100 % of basic wage
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
Paid leave per year in case of caring for relatives: → 7 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 week: → 42.5
Working days per week: → 6.0
Paid annual leave: → 28.0 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
Adjustment for rising costs of living: → 0

Wage increase

Wage increase: → 10.0 %

Premium for evening or night work

Premium for evening or night work: → KES 220.0 per month
Premium for night work only: → Yes

Extra payment for annual leave

Extra payment for annual leave: → KES 5000.0

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
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