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MEMORANDUM OF AGREEMENT BETWEEN NAKURU INDUSTRIES LIMITED AND THE TAILORS AND TEXTILE WORKERS UNION IN MATTERS OF WAGES AND OTHER TERMS AND CONDITIONS OF SERVICE

1. PREAMBLE

Whereas by the terms of the Recognition Agreement made between Nakuru Industries Limited (hereinafter referred to as the Company) and Tailors & Textile Workers Union (Hereinafter referred to as the Union) it is agreed that the company recognizes the union as the representative of the unionisable employees who are its members in negotiations affecting all matters covered by the said agreement. It has been agreed that the remuneration terms and working conditions of such employees shall be settled by negotiations between the company and the Union and shall be the subject of this agreement.

2. DEFINITION

The following words shall have the meanings mentioned here below:-

i) COMPANY shall mean Nakuru Industries Limited.

ii) UNION shall mean Tailors and Textile Workers Union.

iii) WORKING HOURS - Shall mean during operating periods on official duties.

iv) REST DAYS - shall mean an uninterrupted and defined continuous period.

v) SALARY-Shall mean a basic rate of pay, house allowance and any other fixed allowance that may be paid to an employee.

vi) MEDICAL PRACTIONER- Shall mean a person registered under the Medical Practioners and Dentists Act Cap 253 Laws of Kenya vii) STAFF/EMPLOYEES - Shall mean persons employed by the company.

3. OVERRIDING EXISTING AGREEMENT

Except as herein provided, this agreement shall supersede previous Union agreements entered in respect of the employees to whom this agreement covers.

4. EFFECTIVE DATE AND DURATION OF THIS AGREEMENT

This agreement shall come into force with effect from 1st July 2011 and shall remain in force for 24 months (two years). During this period, either party may give the other three months written notice expressing its wish to amend or modify the agreement and by giving

the proposed details. Both parties would then enter into negotiations on the proposed terms. Notwithstanding anything to the contrary contained in this clause, this agreement shall continue to be in force until another one is finally agreed upon by the two parties. It will therefore not be taken as there is a vacuum in case of any delay in concluding the new agreement.

5. HOUSE ALLOWANCE

a. The Employer will provide two rooms for accommodation to all the staff,

b. Any employees who will not be provided with accommodation will be paid a house allowance of Ksh. 2,000 per month.

c. Any employee desiring to acquire more accommodation than the above mentioned shall be at liberty to negotiate with the management.

d. From the time the employee is paid his/her terminal dues he/she will have two weeks' to surrender the house to the company and vacate the labour camp.

6. GENERAL WAGE INCREAMENT

The general wage agreement will be 14% for the two years at 7% per year. Year one 1st July 2011 to 30th June 2012 Year two 1st July 2012 to 30th June 2013

7. UNION MEMBERSHIP

i) The Company shall not interfere in any way with the rights of employees who wish to join the Union and those who are union members.

ii) There shall be no discrimination or coercion against any employee who may be participating in recognized Union activities.

iii) The employees must seek permission from the Management if the Union activity is to be carried out during working hours and the union must request for permission at least one week before the date of the activity.

8. DEDUCTION OF UNION DUES

The employer agrees to continue with the deduction of union dues of members from their monthly salary provided the company receives written authority from an employee confirming the Union membership. The management shall stop the deductions once an employee notifies the Management and the Union in-writing of the intention to terminate the union membership in accordance with the Labour Relations Act 2007.

9. POINT OF ENTRY/PROBATION PERIOD

On appointment to the employment of the company, the new staff shall serve a probation period of 3 months before the employment can be confirmed. During probation, either party may terminate the contract by giving 15 days’ notice or paying 15 days salary in lieu of notice.

10. PROMOTIONS

i) Promotion will be determined by the Management, all promotions shall be based on merit, professional qualification, performance and experience.

ii) All promotions shall be in writing clearly spelling out the terms of promotion.

iii) A person shall serve in an acting capacity for duration of 2 months before being confirmed to the position.

11. HOURS OF WORK

Employees shall be required to work a total of 45 hours spread over 6 days in a week whether in night shift or day shift.

12. OVERTIME

Overtime shall be extra hours worked in excess of the 45 hours per week. Employees will be paid overtime as below:- On normal working days at the rate of 1.5 times the hours worked. On the employees’ rest days and gazetted public holidays at double rate.

13. ANNUAL LEAVE

i) Annual leave shall be 28 working excluding public holidays and Sundays for a period of 12 months continuous service when due,

ii) When proceeding on leave the staff will be paid Ksh.2, 000 leave travelling allowance.

iii) Where employment is terminated after the completion of two or more months, the employee will be entitled to two days leave for every completed month of service.

iv) Where employment is terminated within the first two months of service the employee shall not be entitled to any leave.

v) When an employee applies for leave and the same is not granted by the Management on account of pressure of work, such employee shall be paid in full on lieu of leave not granted together with leave travelling allowance.

14. LEAVE FOR TRADE UNION CONFERENCE AND SEMINARS

i) The company shall give up to a maximum of 5 days per official per year but the leave shall not be taken at the same time. The leave request must be sent one week in advance. Emergency meetings will be considered as presented by the Branch secretary.

ii) The leave shall be granted at the management’s discretion for a maximum of three officials.

15. COMPASSIONATE LEAVE

i) An employee desirous of taking leave on compassionate grounds, such an employee shall by prior arrangement with the employer be granted the compassionate up to a maximum of his entitlement as at the time of taking the leave. The leave taken shall be subsequently set off against his/her annual leave.

16. MATERNITY LEAVE/PATERNITY LEAVE

i) A female employee shall be entitled to three months (90) consecutive days as maternity leave

ii) The female employees will be paid Ksh.1,700 travelling allowance while proceeding on maternity leave.

iii) The maternity leave shall not be combined with the annual leave for the employee and should not be taken earlier than a month before the date of delivery and also not less than two weeks to the expected delivery date

iv) A male employee shall be entitled to two weeks (14) consecutive days' paternity leave with full pay on presentation of a medical report from a doctor to confirm delivery of a child and there will be no delay on the same.

v) The medical report shall be attached on the leave application form in support of the leave.

vi) The leave shall be granted for a registered wife with the employer.

17. PUBLIC HOLIDAYS

The employees will be entitled to a public holiday as may be gazetted by the government. Where there is an urgent work that compels the Employer to instruct the employee to work the employee will be paid the rate of two time's daily rate.

18. SICK LEAVE

If an employee is unable to attend duty due to sickness he/she must notify the HOD immediately.

Sick leave will be granted as below:-

i) Employees with twelve months consecutive service shall be entitled 60 days with full pay and thereafter sick leave of 50 days with half pay.

ii) If after the expiry of the 110 days leave it is apparent from the medical report that the employee cannot resume work, the employee will be retired on medical grounds.

iii) The employee retired on medical grounds will be paid as per clause 34 of this agreement.

19. BASIC MINIMUM WAGES

The Regulation of wages Amendment Orders (General) to apply as provided by the Labour Institutions Act.

20. MEDICAL TREATMENT

The company will provide a Nurse and where further treatment is required the staff will be referred to any Government Hospital and Transport to the Hospital from the place of work will be provided by the company.

21. SAFETY AND HEALTH

i) The safety and health of the employees shall be subject to the Occupational Safety and Health Act.

ii) The company department of Quality, Health, Safety and Environment in consultation with the Safety Committee will determine the appropriate personal protective equipment that will be issued to staff.

iii) No staff will be allowed to work without using the recommended personal protective equipment.

22. UNIFORMS

i) Uniforms shall be provided at the company to those staff whose services require that they put on uniforms.

ii) The uniforms shall always be worn during working hours when the employee is on duty.

iii) Uniforms shall remain the property of the company and the old uniforms shall be returned at the time of issuing new uniforms.

iv) Loss or willful damage of the uniforms shall be charged to the employee for replacement or repair as the case may be.

v) The employees will be responsible for cleaning their uniforms.

vi) Each employee will be entitled to two uniforms per year.

vii) Each Unionizable employee shall be provided with one bar of soap per month for washing the Uniforms.

23. SAFARI ALLOWANCE

The allowance shall be paid to drivers and turn boys only. This is not a benefit but a cost to cover for meals and accommodation. The allowance for the period of this agreement will be as below:-

Breakfast 100
Lunch 150
Dinner 150
Bed 450

24. ACTING ALLOWANCE

i)When an employee is required to act in a position of higher category for a period of 20 days, the employee will be entitled to an acting allowance of the difference between his/her salary and the salary of the staff he is acting on his/her place.

ii) An employee who shall be assigned an acting responsibility in a position for a period of two months shall be confirmed to the position.

25. GRIEVANCE PROCEDURE

a) Individual Grievances

Any individual employee of the company who wishes to redress a grievance with which he/she is directly and personally concerned, shall first approach his/her immediate Head of Department for settlement but with a right to appeal to the Human Resources Manager if the matter is not sorted out. In case settlement is not reached within fourteen (14) days, he/she or the Shop steward shall have the right to appeal to the Managing Director as soon as possible and within fourteen (14) days. If settlement is not reached the Shop steward will forward the matter to the Branch Secretary of the Union who will meet the Managing Director to solve the issue. Failure to reach an agreement the Branch secretary may refer the matter to the Minister for labour in accordance with the Labour Relations Act.

b) Failure to Reach Agreement

i) In the event of failure to reach a settlement at the Managing Director level in case of individual dispute either party may refer the dispute to the Minister of Labour in accordance with provisions of the Labour Relations Act 2007.

ii) No Strike, Lockout or other action to stop or hinder the operations of the business of the company on a matter which has been referred to the Negotiating committee shall take place until a Deadlock has been recorded in the committee.

26. WARNING LETTERS

An employee who commits an offence which in the opinion of the company does not warrant dismissal shall be warned in writing and the following procedure shall be followed.

i) The first and second warning will be recorded on the employee’s employment file. Such warnings shall be copied to the shop stewards and the Branch Secretary.

ii) If an employee commits a third offence within 292 days, the employee shall be issued with a final warning.

iii) If an employee completes 292 days from the date of the first warning without further offence, the first warning recorded on such employee’s file will be cancelled.

iv) An employee who commits a fourth offence shall be liable to summary dismissal.

v) All the warnings will be copied to the Branch Secretary of the Union.

27. TERMINATION OF EMPLOYMENT

i) On completion of the probation period termination of employment can be done by either party by giving written notices as below:-

1. Less than five years - one month notice

2. Above five years - three months’ notice.

Failing of which there shall be payment by the party terminating the contract without such notice equivalent salaries in lieu of notice.

28. DEATH OF AN EMPLOYEE

i) When death of an employee is brought to the notice of the employer, the employer shall provide a suitable coffin and transportation of the deceased to the place of burial within Kenya as will be advised by the next of kin. The company will also provide Ksh.20,000 to cater for other funeral expenses over and above the medical fees.

ii) The make, type and the cost of the coffin and transportation will be at the discretion of the company.

iii) The company shall pay the final dues of the deceased employee to the dependants nominated on the personnel file of the deceased.

iv) The Gratuity pay of the deceased employee will be paid to the dependents as per the Gratuity clause.

v) Where there is no nominated next of Kin then this shall be paid in accordance with the Trust Deed.

29. SUSPENSION

i) Any employee who happens to be suspended from duty for any matter which requires investigation shall be entitled to half salary during the period of investigation. During this period, the company shall investigate the reasons leading to such suspension and appropriate disciplinary action will be taken by the management. The investigations must be completed within 10 days.

ii) If after ten days of the investigation the company fail to establish the fault of the employee, but still consider that it is in the best interest of the company that the services of such employee be terminated, such employee shall be paid his/her salary upto and including the date of termination, plus pay in lieu of notice and in accordance with CBA and the Law.

iii) If at the completion of investigations an employee shall be proven to have been at fault, then such employee shall be dismissed without notice.

30. DISCIPLINARY MEASURES

The company may take the following but not limited to disciplinary measures for misconduct by staff.

i) Issue a warning letter

ii) Recover any reasonable money from the salary of the employee in case of misconduct that leads to loss of money or property of the employer.

iii) Demote the employee

iv) Terminate the services

v) Dismiss the employee

31. SUMMARY DISMISSAL ON GROSS MISCONDUCT

The decision to dismiss an employee from employment will be made in line with the Employment Act 2007. A dismissed employee will not be entitled to any statutory notice or notice that may be provided in the contract of employment.

The following matters may amount to gross misconduct so as to justify summary dismissal of an employee.

i) Without leave or other lawful cause an employee absents himself from the place appointed for the performance of his/her duties for 7 days.

ii) By becoming intoxicated during working hours and incapable to perform his work. This shall be certified by a medical practitioner.

iii) Neglecting to perform work assigned to the employee or improperly and carelessly performs the job which he was required to have performed carefully and properly.

iv) An employee who uses abusive or insulting language to the employer or to a person placed in authority over him by the employer.

v) If an employee is arrested for a cognizable offence punishable by imprisonment and is not within fourteen days either released on bail or in bond or otherwise lawfully set at liberty.

vi) An employee who on a reasonable and sufficient ground is suspected of having committed a criminal offence against or to the substantial detriment of his employer or his employer’s property.

An employee dismissed from employment will be paid a salary and other allowances earned up to the date of dismissal.

32. RETIREMENT

i) The normal age of retirement from the service of the company shall be on the attainment of 50 years for both men and women. However at 40 years an employee may apply for early retirement.

iii) A retiring employee shall be entitled to a minimum of three months notice before the actual date of retiring by both parties.

i) Where such notice is not given in three months salary shall be paid in lieu of the notice stated above.

33. REDUNDANCY AND SEVERANCE PAY

This clause applies where staff are declared redundant.

i) In the event of redundancy, the company shall inform the Union and the Ministry for Labour of the intended redundancy.

ii) The principle of "FIRST IN, LAST OUT’’ shall be followed in the particular category of employees affected subject to all other factors such as skill, relative merit, ability and reliability being equal.

iii) The redundant employee shall be entitled to three months' notice or pay in lieu of such notice as per clause 27 of this agreement

iv) Severance pay will be as below:-

a) Less than five years - 25 days for every completed year of service.

b) Above five years - 26 days for every completed year.

34. GRATUITY

The qualifying period of gratuity shall be:- (in dispute)

(a) Union Position:- From the date of engagement

(b) Management:- From more than one year

(c) Union - lone (1) year from date of engagement.

(d) Employers: changed position - 7 years

i) Up to ten years of completed service -15 days for each completed year - agreed

ii) Above ten years -18 days for every completed year. - agreed Gratuity shall be paid where an employee:-

a) Resigns after attaining 50 years of age - Agreed

b) If the services are terminated by normal termination by the employer. - Agreed

c) Deceased employees and the payment will be made to the next of kin. - Agreed 

Gratuity shall not be paid where an employee:-

a) Resigns before attaining 50 years of age. - Agreed

b) In case of a gross misconduct as provided in clause 33 of this agreement. - Agreed

35. INJURY

In case of injuries in the course of duty or occupational diseases, the Work Injury Benefit Act 2007 will prevail.

36. SOCIAL WELFARE

a) Recreational facilities will be provided by the company in agreement with the social welfare committee.

b) Election of welfare Counsels will be done by employees under the Chairmanship of the shop steward. Company will appoint one person to the Welfare Committee.

37. PAYMENT OF WAGES

Wages and salaries be paid any time between 25th and 2nd of the month during working hours and pays lips will be issued to confirm computation of the pay.

38. INTERUPTION OF WORK

Should failure of electricity or any other thing that may interrupt work occur, the employer will pay the workers full wages for the hours interrupted, however with advance notice of interruption of work, the workers will be required to compensate for the lost hours at a convenient time when called upon.

39. NIGHT ALLOWANCE

The company will pay night allowance to all employees working between 10pm to 6am at the rate of Ksh.15 per night.

40. NEW EMPLOYEES

a) All the new staff will put on a three months' probation period. During this period they may be terminated by giving 15 days’ notice or paying salary in lieu of such notice.

b) They will be entitled to leave at the rate of 2.34 per month on completion of two consecutive months.

c) The company will not keep an employee continuously on temporary terms beyond the period of 90 days in aggregate.

SCHEDULE 1 A
JOB CATEGORY BASICMINIMUM 1st year -7% (1st July 2011) 2nd year-7% 1 (1st July 2012)
1 General labourer messenger/sweeper sanitary cleaner day watchman 16,999.00 7,488.90 8,013.10
2 Turn boy 7,269.00 7,777.80 8,322.20
3 Night watchman 7,846.00 8,395.20 8,982.90
4 Machine attendant and blend maker 8,001.00 8,561.10 9,160.40
5 Junior clerk 9,182.00 9,824.70 10,512.40
6 Machine operator and drivers of cars/light vans 9,450.00 10,111.50 10,819.30
7 General clerk, store keeper, receptionist, telephone operator and pattern designer 10,682.00 11,429.70 12,229.80
8 Driver of medium vehicles 11,835.00 12,663.50 13,549.90
9 Senior supervisor/s mechanic 13,624.00 14,217.70 15,212.90
10 (a) Ungraded Artisan 9,450.00 10,111.50 10,819.30
b Artisan Grade III 11,835.00 12,663.50 13,549.90
c Artisan Grade II 13,264.00 14,217.70 15,212.90
d Artisan Grade I 16,109.00 17,236.60 18,443.20
e Craft and Driver of heavy commercial vehicle 18,624.00 19,927.70 21,322.60

41. RETIREMENT OF THE AGREEMENT

This agreement will retire two years from the date of commencement Negotiations for the new CBA to start three months to the expiry of the same and to be completed within two months. In case the new CBA is not concluded in time the current CBA will be applicable.

FOR AND ON BEHALF OF THE COMPANY

Director

Human Resources Partner

FOR & ON BEHALF OF TAILORS AND TEXTILE WORKERS UNION

General Secretary (TTWU)

National Tresurer (TTWU)-

Workers Representative

Dated this day 12 of APRIL, 2012

Nakuru Industries Limited - 2012

Start date: → 2012-04-12
End date: → 2014-04-11
Name industry: → Manufacturing
Name industry: → Manufacture of textiles
Public/private sector: → In the private sector
Concluded by:
Name company: → Nakuru Industries Limited
Names trade unions: → Tailors and Textiles Workers Union

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 47 %
Maximum days for paid sickness leave: → 110 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: → 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 week: → 45.0
Working days per week: → 6.0
Paid annual leave: → 28.0 days
Paid annual leave: → 4.0 weeks
Paid bank holidays: → 
Provisions on flexible work arrangements: → 

WAGES

Wages determined by means of pay scales: → No
Adjustment for rising costs of living: → 

Wage increase

Premium for evening or night work

Premium for night work only: → 

Meal vouchers

Meal allowances provided: → 
Free legal assistance: → 
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