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MEMORANDUM OF AGREEMENT BETWEEN EPZ APPAREL MANUFACTURERS AND EXPORTERS GROUP OF F.K.E (HEREINAFFER REFERRED TO AS EMPLOYERS) AND TAILOR AND TEXTILE WORKER UNION (HEREINAFFER REFERRED TO AS THE UNION)

IN THE MATTER OF WAGES, SALARIES AND OTHER TERMS AND CONDITIONS OF THE SERVICE AT THE COMPANIES OPERATING AT EPZ NAMED ABOVE.

Whereas by terms of the Recognition and Negotiating Procedure Agreement signed between the employers and the Union it was agreed that the Employers have recognized the Union as a properly constituted body and sole labour organization representing the interests of the employees in the listed group of companies.

Now therefore the Employers and the Union meeting together in a free; heart and voluntary association agree to enter into agreement as stated hereunder in the matters of terms and conditions of service negotiated between them at the Joint Negotiating Committee.

1. APPLICATION

This agreement shall apply to all unionisable employees of the EPZ companies named in the memorandum of Agreement but; shall exclude employees as may be defined in the Industrial Relations Charter Appendix "C".

2. PROBATIONARY PERIOD

The first three months of an employee’s engagement shall be treated as probationary period after which the employee should be confirmed into permanent employment. Where an employee cannot perform to the expected standards, his/her services shall be terminated by giving seven (7) day’s notice or pay in lieu and the Union shall be informed in writing.

3. APPOINTMENT LETTERS/CONTRACT LETTERS

The employer shall issuean appointmentletter stipulatingthe terms and conditions of service of anemployee upon the employee’s completion of the probationary period.

4. HOURS OF WORK

The normal working week shall consist of forty five (45) hours of work from Monday to Friday - 8 hours and 5 hours on Saturday,

i)Except in the case of shift work, an employee’s normal ; working hours shall be 8 hours per day on five days of the week and 5 hours on one day of the week.-

ii)An employee shall be entitled to one rest day in each week.

iii)The exact arrangement of the working hours/week shall be at the discretion of individual management - in consultation; with the Union representative.

5. OVERTIME

Every employee who works for any time in excess of the normal: hours of work specified in Paragraph 4 above, shall be entitled to be paid for the overtime, thereby worked at the following rates:

i) One and a half times the basic hourly rate in respect of any time worked in excess of the normal hours of work per week.

ii) For time worked on an employee’s normal rest day and! statutory public holidays at twice the normal hourly rate.

iii)Employees shall be informed two days in advance when there will be overtime working on a public holiday or employee’s rest day and incase an employee requests fori permission to be absent on such occasions that request shall not be unreasonably denied.

6. HOUSE ALLOWANCE

Every employee who is not provided with free housing accommodation shall be entitled to a minimum house allowance of Kshs.750 or 15% of his basic monthly salary-whichever-is greater,

7. ANNUAL LEAVE

a) After the completion of twelve (12) months’ continuous service with an employer, an employee will be entitled to 24 working days leave with full pay.

b) Such leave will be taken at a time and duration convenient to the employer but the individual employee’s circumstances i may be taken into consideration.

c) Where employment is terminated after the completion of three (3) or more months’ continuous service during any leave earning period, an employee shall be entitled to 2 day’s leave with pay for each completed month of service and pro-rata leave travelling allowance.

8. LEAVE TRAVELLING ALLOWANCE

a. After each period of twelve month’s continuous service an employee will be entitled to Kshs. 1,000 (One thousand) leave travelling allowance when proceeding on leave.

b. Where an employee is required to work at the request of his employer instead of taking his/her annual leave in that year, such an employee shall be paid his full leave entitlement in cash, and leave travelling allowance as per paragraph (a) of this clause.

9. COMPASSIONATE LEAVE

a) An employee may be granted 7 days unpaid compassionate leave on application at the discretion of the employer. The employer shall not unreasonably with hold such requests.

b) Compassionate leave may be by prior arrangement between the employee and the employer, and shall be treated as paid leave and subsequently set off against the employee’s annual leave provided the employee has accumulated upto 7 days leave.

c) Subparagraph (b) above shall not be applicable to members of the group who shut down their factories for purposes of both annual leave and maintenance of machineries.

10. PUBLIC HOLIDAYS

a) An employee shall be granted gazetted public holidays with j full pay.

b) If an employee works on a public holiday, which is not; his/her rest day, then he/she shall be paid at double his/her hourly rate.

c) When a Public Holiday falls on an employee’s rest day, the employee shall be paid double (2 times) his/her hourly rate if she/he works on the public holiday and rest on another day.

11. SICK LEAVE

After three (3) consecutive week’s service with an employer and subject to production of a medical certificate of incapacity from a medical practitioner in a registered hospital or a health centre or dispensary approved by the company, an employee shall be entitled to sick leave with pay in any one year as follows:

a) First 35 days with full pay.

b) Next 35 days with half pay

Provided that an employee shall not be eligible for sick leave in respect of any incapacity due to gross negligence on his/her part and such leave shall not be carried over to the next year.

12. CERTIFICATE OF SERVICE

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

(a) Name of the employer and postal address

(b) Name of the employee

(c) The date when employment commenced

(d) The nature and usual place of employment '(e) The date when employment ceased.

13. SUSPENSION

The employer reserves the right to suspend, without pay, an employee from employment up to MAXIMUM of 14 days pending investigations into alleged gross misconduct or other offences.

Should the employee be found to have committed a gross misconduct, then he/she shall be summarily dismissed from the date of suspension. Should the employee be found innocent of the gross misconduct, then he/she shall be reinstated forthwith without loss of privileges and paid for the days he/she was suspended.

14. WARNING

An employee whose work or conduct is unsatisfactory or who otherwise commits default which in the opinion of the employer does not warrant instant dismissal shall be warned in writing and the following procedure shall apply.

(i) The first, second and third warnings shall be entered in the employees record and the shopsteward informed accordingly.

(ii) The third warning shall be copied to the Branch Secretary of his/her union.

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

Provided that an employee completes three hundred and sixty five consecutive days from the date of third warning without further] default, any warning entered in his/her employment record shall be deemed cancelled.

15. MATERNITY LEAVE

A female employee shall be entitled to two months maternity leave (60 consecutive days) with full pay and with prioi arrangement with the employer may be eligible for additional one month unpaid leave (30 consecutive days). Such leave will not be unreasonably denied.

Provided that a female, employee who has taken her maternity leave shall forfeit her annual leave in that year.

A female employee in receipt of maternity leave shall not incur any loss of privileges or entitlement during such period.

16. SUMMARY DISMISSAL

Any of the following matters may amount to gross misconduct so as to justify the summary dismissal of an employee for lawful cause, but the enumeration of such matters shall not preclude an employer or an employee from respectively alleging or disputing whether the facts giving rise to the same, or whether any other matters not mentioned in this section, constitute justifiable or| lawful grounds for the dismissal;-

If, without leave or other lawful cause, an employee absents himself from the place proper and appointed for the performance of his work.

If, during working hours, by becoming or being intoxicated, an employee renders himself unwilling or incapable properly to perform his work and a medical practitioner confirms the same. 

(c) If an employee wilfully neglects to perform any work which it was his duty to have performed, or if he carelessly and improperly performs any work which from its nature it was his duty, under his contract, to have performed carefully and properly;

(d)If, an employee uses abusive or insulting language, or behaves in a manner insulting, to his employer/colleague or to a person placed in authority over him or his surbodinate staff.

If an employee knowingly fails, or refuses, to obey a lawful and proper command which it was within the scope of his duty to obey, issued by his employer or a person placed ini authority over him by his employer.

If, in the lawful exercise of any power of arrest given by or i under any written law, an employee is arrested for cognizable offence punishable by imprisonment and is not within fifteen days either released on bail or on bond or otherwise lawfully set at liberty;

If an employee commits, or on reasonable and sufficient grounds is suspected of having committed, a criminal offence against or to the substantial detriment of his employer or his employer’s property.

17. EMPLOYMENT MEDICAL TREATMENT RULES I.E. LEGAL NO. 151/77

The Medical Treatment Rules of 1977 (Legal Notice No. 157/1977) shall apply.

18. BASIC MINIMUM WAGES (EXCLUSIVE OF HOUSING ALLOWANCE) (NEW ENTRANTS)

With effect from 1st October, 2003 the basic minimum wages shall be as follows;-

COLUMN 1 COLUMN 2 COLUMN 3
Occupation Monthly contract per month for Nairobi, Mombasa and Kisumu Cities in Kshs. Monthly contract per month for other areas in Kshs.
1. General labourer including cleaner, sweeper, gardener, children’s ayah, house servant, day watchman, messenger 3,910 3,608
2. Miner, stone cutter, turnboy, waiter, cook, logger line cutter

4,223

3,747
3. Night watchman 4,357 4,044
4. Machine attendant, sawmill sawyer, machine assistant, mass production machinist, shoe cutter, bakery worker, bakery assistant, tailor’s assistant. 4,431 4,124
5. Machinist (made to measure), shoe upper prepairer, chaplis maker, vehicle service worker (petrol and service stations), bakery plant hand, laundry operator, junior clerk, wheeled tractor driver (light). 5,057 4,732
6. Printing machine operator, bakery machine operator,

plywood machine operator, sawmill dresser, shop assistant, machine tool operator, doughmaker, table hand baker or confectioner, copy-typist, driver (cars and light vans)KSh.

5,276 4,870

7. Pattern designer (draughtsman), garment and dress cutter, single hand oven man, charge-hand baker, general clerk, telephone operator, receptionist, storekeeper

6,021 5,504
8. Tailor, driver (medium sized vehicle) 6,634 6,099
9. Dyer, crawler tractor driver, salesman 5,276 4,870
10. Saw doctor, caretaker (buildings) 8,105 7,567
11. Cashier, driver (heavy commercial vehicle), salesman driver 8,818 8,298
12. Ungraded artisan

Artisan Grade III

Artisan II

Artisan Grade I

5,276

6,634

7,323

8,818

4,870

6,099

6,833

8,298

19. GENERAL WAGE INCREMENT

(i) Witheffect from1st October,2003allunionisable employees in the service of the employer will receive a general wage increase of 8 % on their basic wage as at 30th September, 2003, to cover the period 1st October, 2003 to 30th September, 2004.

(ii) Witheffect from1st October,2004allunionisable

employees in the service of the employer will receive a further wage increase of 9% on their basic wage to cover the period 1st October 2004 to 30th September, 2005.j

20. PAYMENT OF WAGES

Payment of wages shall be made on a working day and during working hours, at or near to the place of employment or at such other place as may be agreed to between the employer and the! employee. Should such payment day fall on a Sunday or Public Holiday, such wages shall be paid on the last day prior to such Sunday or Public Holiday.

21. PROTECTIVE CLOTHING

The employer shall provide protective clothing and gear wherever applicable. Where uniform has been provided the employer shall provide one bar of soap or launder the uniform.

22. NIGHT SHIFT ALLOWANCE

Employees scheduled to perform their duties on night shift, shall be paid a night shift allowance of Kshs. 1 /= per hour. Night is defined as hours between 9:00 p.m. and 6:00 a.m.

23. TOOLS

It shall be the responsibility of the employer to provide working tools to the employees of his company.

24. RETIREMENT AGE

The normal retirement age for all employees shall be 55 years. 25. REDUNDANCY

"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.

Where the employment of an employee is to be terminated on account of redundancy, the following principles shall apply

a) the union of which the employee is a member and the Labour Officer of the area shall be informed of the reasons for and the extent of, the intended redundancy;

b) the employer shall have due regard to seniority in time and to the skill, ability and reliability of each employee belonging to a particular category of employees affected by the redundancy;

c) no employee shall be placed at a disadvantage for being or not being a member of a trade union;

d) any leave due to any employee who is declared redundant shall be paid for in cash;

e) a redundant employee shall be entitled to one month’s notice or one month’s salary in lieu of notice;

f) an employee declared redundant shall be entitled to severance pay at the rate of sixteen days’ pay for each completed year of service.

26. GRATUITY/PENSION

After completion of 2 years with one employer an employee shall be paid gratuity on normal termination, death, normal retirement at 55 years of age or retirement on medical grounds. However no employee shall qualify for gratuity if he/she resigns or is dismissed for gross misconduct.

a) Gratuity payment shall be 16 days pay per each completed year of service;

b) Where pension schemes are in place or where an employer has a Provident Fund, he shall pay to an employee either gratuity or pension/provident fund whichever is greater.

27. NIGHT TRANSPORT

The employer shall provide night transport for employees leaving work from 8.30 p.m. to designated drop off point nearest to their residence provided that those who have more favourable arrangements shall continue with their internal practice.

28. DEATH OF AN EMPLOYEE

Upon the demise of an employee while still in service, an employer shall be required to pay Kshs. 10,000/= towards the funeral and burial arrangements of the dead employee.

29. PAID EDUCATIONAL LEAVE

The employer shall grant paid education leave for union activities to the shopstewards and union representatives up to a maximum of 14 days in a calender year. This leave shall be limited to seminars and workshops

30. ACTING ALLOWANCE

When an employee is required in writing to act in a position or a higher grade for a period of ten days and more, he/she shall be paid the difference between the basic minimum salary of his/her grade and the basic Minimum salary of the job in which he/she is acting.

31. TARGETS

(i) The employer through the expertise of a competent officer like the Time and Motion Study Officer or an Industrial Engineer, may establish production targets for various styles in the lines and/or other areas of operation like cutting, washing, finishing etc. whenever so fixed, the targets in question shall remain constant for the particular style and employees concerned shall be required to achieve the targeted production for the regular hours of a day, within that time.

(ii) Any employee, who fails to achieve the target for no acceptable reason, may be allowed to do so at his/her own time on the same day, without overtime payment and it shall be within the employer’s rights to subject such an employee to disciplinary action for inefficiency if he/she refuses to work on his/her own time to complete the day’s target.

iii) The union will have the right to involve a technical officer from the Ministry of Labour for a joint adjudication exercise if the set targets are deemed to be high. While such an exercise is in process, the employee shall be expected to continue working towards achievement of the set targets.

It shall be a condition in every contract that such contracts shall be terminable by not less than One months notice to be given by either party in writing or otherwise by payment by either party, in lieu of notice. During probation period, seven days notice shall be given by either party or equivalent payment in lieu of notice. '

Nothing in this paragraph shall prejudice the right of either party to terminate the services for lawful cause.

33. SEXUAL HARASSMENT

Every employee shall be protected from sexual harassment. Sexual harassment is any unsolicited or unwelcome verbal comment, gesture or physical contact of a sexual nature, Therefore,:-

(a) No employee shall be subjected to sexual harassment either by somebody in authority over him/her as a condition i of engagement, continued employment, promotion, salary progression, reward or any other consideration or by his/her fellow workmates as a condition of social acceptance at work.

(b) Any case of sexual harassment shall be immediately reported by the victim to a designated officer and a perpetrator shall be dealt with in accordance with the organisation’s disciplinary procedures after having been given an adequate opportunity to defend himself/herself against the charges.

(c) Sexual harassment shall include any of the following, if the person doing it, knows or ought to have known that it is unwelcome;

(i) Making a request or exerting pressure for sexual activity or favours;

(iii) Making gestures, noises, jokes or comments, including innuendoes, regarding another person’s sexuality.

Each employer shall appoint a designated person preferably a Senior Lady Manager to whom the victims of sexual harassment may report the cases for appropriate action.

34. HIV/AIDS

No employee living with HIV/AIDS shall have his services terminated purely on his sero-positive status and there should be no obligation on the part of the employee to inform his employer about his sero-positive status. If fitness to work is impaired by HIVC- related illness, reasonable alternative working arrangements should be made for the affected employees. As with many other illnesses, persons with HIV-related illnesses should be able to work as long as they are medically fit for available, appropriate work or until they are declared unfit to work by a registered medical practitioner:

Provided that nothing in the Clause shall derogate the right of an employer to terminate for justifiable cause the services of those living with HIV/AIDS especially for continuous non-performance or any other justifiable reasons. 

35. EFFECTIVE DATE

a) The effective date of the following issues shall be 1st June, 2003.

1. Preamble

2. Application

3. Hours of work

4. Retirement age.

5. Sexual Harassment

6. HIV/AIDS

b) The effective date of Issues listed below shall be 1st October,

1. Wages/Basic Minimum

2. House Allowance

3. Leave Travelling Allowance

4. Night Shift Allowance

5. Overtime

6. Annual leave

7. Maternity leave

8. Death of an employee

9. Acting allowance

10. Redundancy

11. Gratuity

12. Appointment letters/Contract letters

13. Compassionate leave

14. Public Holidays

15. Sick leave

16. Suspension

17. Warning

18. Gross Misconduct

19. Protective Clothing

20. Tools Allowance

21. Paid Education leave

22. Targets

23. Termination of employment

24. Employment Medical Treatment Rules Under Legal Notice No. 151/77.

36. DURATION OF THE AGREEMENT

This agreement shall remain in force for a period of two years up to 30th September, 2005. Thereafter it shall continue in force until it is amended by mutual agreement between the two parties, provided that the party wishing to amend it gives the other party one months notice of such intension giving in writing the details of the

amendment required.

Signed for and on behalf of Employers

1. MIRAGE FASHIONWEAR (EPZ) LTD

2. ROLEX GARMENT (EPZ) LTD

3. ALLTEX EPZ LTD

4. GLOBAL APPAREIL EPZ KENYA LTD

5. MRC NAIROBI EPZ LTD

6. RISING SUN EPZ KENYA LTD

7. UNION APPAREIL LTD

8. PROTEX (K) EPZ LTD

9. S.K KANGETHE

10. HELLEN AKELLO

Signed for and on behalf of the Union

WILLIAM M. AKETCH

GENERAL SECRETARY

FRANCIS MUTHURI

BRANCH SECRETARY (NAIROBI!

DATE: 24 FEBUARY 2014

Africa Apparels EPZ - 2003

Start date: → 2003-06-01
End date: → 2005-09-30
Ratified by: → Other
Ratified on: → 2003-06-01
Name industry: → Manufacturing
Public/private sector: → In the private sector
Concluded by:
Name company: → Africa Apparels EPZ
Names trade unions: → Tailors and Textiles Workers Union

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 29 %
Maximum days for paid sickness leave: → 70 days
Provisions regarding return to work after long-term illness, e.g. cancer treatment: → No
Paid menstruation leave: → No
Pay in case of disability due to work accident: → No

WORK AND FAMILY ARRANGEMENTS

Maternity paid leave: → 8.5 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: → 7 days

GENDER EQUALITY ISSUES

Equal pay for work of equal value: → No
Discrimination at work clauses: → No
Equal opportunities for promotion for women: → No
Equal opportunities for training and retraining for women: → No
Gender equality trade union officer at the workplace: → No
Clauses on sexual harassment at work: → Yes
Clauses on violence at work: → No
Special leave for workers subjected to domestic or intimate partner violence: → No
Support for women workers with disabilities: → No
Gender equality monitoring: → No

EMPLOYMENT CONTRACTS

Trial period duration: → 90 days
Severance pay after 5 years of service (number of days' wages): → 80 days
Severance pay after one year of service ((number of days' wages): → 16 days
Part-time workers excluded from any provision: → No
Provisions about temporary workers: → No
Apprentices excluded from any provision: → No
Minijobs/student jobs excluded from any provision: → No

WORKING HOURS, SCHEDULES AND HOLIDAYS

Working hours per day: → 8.0
Working hours per week: → 45.0
Working days per week: → 6.0
Paid annual leave: → 24.0 days
Paid annual leave: →  weeks
Paid bank holidays: → 
Rest period of at least one day per week agreed: → No
Paid leave for trade union activities: → 14.0 days
Provisions on flexible work arrangements: → No

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 3608.0
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → 8.0 %
Wage increase starts: → 2003-10

Once only extra payment

Once only extra payment: → 15 %
Once only extra payment due to company performance: → No

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 1000.0

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Allowance for seniority

Meal vouchers

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