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MEMORANDUM OF AGREEMENT

BETWEEN

NATIONWIDE ELECTRICAL INDUSTRIES LIMITED

AND

AMALGAMATED UNION OF KENYA METALWORKERS

1.SUBJECT MATTER

The terms and conditions of employment set out in this memorandum of Agreement shall be observed and implemented by the company and shall apply to all employees covered by this definition given by the Union's registered constitution and as provided by the Memorandum of Agreement relative to recognition and within the terms of Federation of Kenya Employers/Central Organization of Trade Unions (Kenya) current agreement.

2.HOURS OF WORK

Normal working hours shall be 45 hours per week. Any hours worked in excess of 45 hours per week shall be treated as overtime and shall be paid as specified in paragraph (3) of this Agreement.

(a) Monday to Friday-8 hours per day

(b) Saturdays-5 hours per day

3.OVERTIME PAYMENTS

Employees required by the Management to work excess hours hall be paid overtime as follows:

(a) Monday to Saturday-time plus half the normal hourly rate

(b) Sundays and public holidays-twice the normal hourly rate.

4.PROBATION

The first three months continuous period of employment shall be considered as probationary period within which either party can terminate employment by giving seven (7) days notice in writing or by the payment of seven (7) days wages in lieu of such notice.

5.OCCUPATIONAL GRADES AND BASIC MINIMUM WAGES

1/11/2010

11%

1/11/2011

11%

Group I

General Worker, Cleaner/Gardener

Messenger, Watchman

8,434.00

9,361.00

Group II

Machine Attendant

9,559.00

10,611.00

Group III

Machine Tool Operator

11,384.00

12,636.00

Group IV

Drivers

11,384.00

12,636.00

Group V

Ungraded Artisan

Artisan III

Artisan II

Artisan II

11,384.00

14,317.00

15,805.00

19,033.00

12,636.00

15,892.00

17,544.00

21,127.00

6.ANNUAL LEAVE

(a) After twelve (12) consecutive months of service, an employee will be entitled to twenty five (25) working days leave with full pay. The leave will be exclusive of public holidays and rest days.

(b) An employee whose services are terminated before twelve (12) months leave earning period shall be entitled to two (2) days leave per completed month of service on pro-rata basis.

7.COMPASSIONATE LEAVE

(a) An employee desiring to take leave on compassionate grounds shall, by prior arrangement with the employer, be granted such leave up to his earned leave entitlement and the leave taken shall subsequently be set off against his annual leave.

(b) An employee may, in addition to leave provided for above, be granted five (5) days compassionate leave without pay in a year.

8.LEAVE TRAVELLING ALLOWANCE

Every employee proceeding on leavr after twelve (12) months continuous service shall receive the sum of Kshs.3,000/- as leave traveling for the first year and Kshs.3,000/- for the second year.

9.SICK LEAVE

(i) After two (2) months continuous service, an employee with up to five (5) years continuous service shall be entitled to thirty (30) days sick leave with full pay and thereafter thirty (30) days sick leave with half pay in each period of twelve (12) months consecutive service.

(ii) An employee with more than five (5) years continuous service shall be entitled to sixty (60) days sick leave with full pay and thereafter to sixty (60) days sick leave with half pay in each period of twelve (12) months consecutive service. Provided that:

(a) An employee shall not be entitled to sick leave unless he produces a certificate of incapacity covering the period of sick leave claimed, signed by a medical practitioner or a person acting on his behalf, in charge of a dispensary or medical center.

(b) An employee shall not be eligible to sick leave in respect of any incapacity due to gross neglected on his part.

10.WORK INJURY

Payment for injuries sustained out and in the course of duty shall be as specified by the Work Injury Benefits Act 2007 and any amendments from time to time.

11.TERMINATION OF EMPLOYMENT

Termination of service shall be as follows:-

(a) In case of an employee who has completed one month and up to five (5) continuous service, one month's notice to be given in writing by either party or otherwise by the payment of either party in lieu of notice of one month's wages plus house allowance.

(b) In case of an employee who has completed more than five (5) years and up to fifteen (15) years continuous service, two months (2) months notice to be given by either party in writing or otherwise by the payment of either party in lieu of two (2) months' wages plus house allowance.

(c) In case of an employee who has completed more than fifteen (15) continuous years of service, three months notice to be given by either party in writing or otherwise by the payment of either party in lieu of three (3) months' wages plus house allowance.

(d) Reasons for termination shall be given to the affected employee in writing.

The termination notice shall include house allowance.

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

12.REDUNDANCY

In the event of it being necessary for the employer to terminate the service of an employee on account of redundancy:

(i) The employer shall inform the Union of such intended action.

(ii) The principle of "last-in-first-out" shall apply.

(iii) No employee shall be placed at a disadvantage by reason of membership or non-membership of the Union or any other reason.

(iv) An employee shall be paid appropriate wages in lieu of notice.

(v) A redundant employee, after twelve (12) continuous months of service, shall in addition be paid eighteen (18) days pay for each completed year of service or part thereof as severance pay based on the employee's earning at the time of termination on account of redundancy.

(vi) An employee declared redundant shall, in addition to severance pay, be paid gratuity at the rate of eighteen (18) days per completed year of service based on current earning.

13.WARNING

(a) An employee who is guilty of an offence other than gross misconduct or other lawful cause or dismissal, may be issued with a letter of warning which may be entered on the employee's employment record card and shall remain valid for a period of twelve (12) months from the date of warning.

(b) If within that twelve (12) months period the employee commits a similar or any other offence which does not warrant dismissal, he will be further warned in writing and the warning recorded on his employment record card and the two warnings shall remain valid for a period of twelve (12) months.

(c) If within this twelve (12) months period the employee commits a further offence that does not warrant dismissal, then he/she will be issued with a final letter of warning, which will make him/her liable to summary dismissal for any offence that he/she may commit thereafter.

(d) A final letter of warning will remain valid for a period of one (1) year from the date of issue.

(e) Copies of all warning letters shall be sent to the senior shop steward of the company or branch, or in his absence to any other person acting as such, who shall notify the General Secretary of the Union.

(f) An employee who is charged in a court of law with a criminal offence (other than an offence under the Traffic Act) may be suspended without pay for the period absent from his employment.

14.RETIREMENT BENEFITS/SERVICE GRATUITY

(a) An employee who attains the retirement age of 55 years shall opt to retire or be retired by the company and on such retirement he/she shall be paid his/her normal notice pay in lieu and in addition, be paid eighteen (18) days wages for every completed year of service or part thereof. The employer may by mutual consent extend the same.

(b) Provided that an employee whose service are terminated by the company for reasons other than gross misconduct or because of ill health or who dies shall qualify for payment provided for in paragraph (a) herein above.

(c) An employee who resigns after five (5) years continuous service shall also be entitled to service /gratuity.

(d) An employee who is dismissed for misconduct shall not be entitled to gratuity.

(e) All gratuity payments shall be based at the rate of salary being earned at the time of departure.

15. PROTECTIVE CLOTHING AND UNIFORMS

(i) The employer, at his/her own expense, shall provide all employees whose nature of work necessitate the wearing of protective clothing/boots with two sets of such clothing/boots per year and two bars of soap per month.

(ii) The protective clothing shall remain the property of the employer, but the employees shall be responsible for the cleanliness of the uniforms issued to them.

16. MEDICAL TREATMENT

(a) All employees covered by the Agreement shall be provided with medical treatment in a manner described in the Medical Treatment Rules - Legal Notice No. 157/1977 or any other amendment thereof.

(b) Where an employee in an emergency attends Kenyatta National Hospital or any Government General Hospital, the employer shall meet the expense incurred.

(c) Where the employer operates a medical scheme or an insurance arrangement with a particular hospital or medical institution, the employer may require an employee to attend such medical institution or hospital.

17. GENERAL WAGE INCREMENT

(a) An employee in service whose minimum rate of pay as at 31st October, 2010 was above the rate fixed for his/her grade shall receive an increase of 11% effective from 1st November, 2010 for the first year.

(b) A further 11% general wage increase will be given to cover the second year effective from 1st November, 2011.

18.HOUSE ALLOWANCE

An employee who is not provided with accommodation by the employer shall be entitled to Kshs.4,000/- for the first year and kshs.4,000/- per month for the second year.

19.DEATH OF AN EMPLOYEE

When an employee dies while in service, the employer shall contribute Kshs.36,000/- towards funeral expenses.

20.BAGGAGE ALLOWANCE

On retirement or when declared redundant, an employee shall be entitled to a baggage allowance equivalent to one month’s basic pay to cover the cost of transporting personal effects.

21.CASUAL EMPLOYEE

The provision of the Employment Act, 2007 shall apply.

22.COMMUTER ALLOWANCE

An employee shall be entitled to a commuter allowance of Kshs.500/- per month.

23.EFFECTIVE DATE AND DURATION

The effective date of this Agreement shall be from 1st November 2010 and shall remain in force for a period of twenty four (24) months. Any amendments by either party may be submitted in writing to the other, giving thirty (30) days notice and giving out the details of their proposals.

SIGNED:

FOR AND ON BEHALF OF NATIONWIDE ELECTRICAL INDUSTRIES LIMITED

…………………………….…………………………..

NIRAJ SHAHN. WADANDA

DIRECTORPERSONNEL MANAGER

FOR AND ON BEHALF OF THE UNION

……………………………..………………………….

MAERO TINDIJUSTUS MAINA OTAKWA

GENERAL SECRETARYDEPUTY GEN. SECRETARY

……………………………..

A. LUBIRA

CHIEF SHOPSTEWARD

IN THE PRESENCE OF

………………………….

A.O. AMBENGE

SENIOR EXECUTIVE OFFICER

SIGNED AT NAIROBI THIS ……………… DAY OF ……………… 2011

Nationwide Electrical Industries Limited - 2010

Start date: → 2010-11-01
End date: → 2012-11-01
Name industry: → Manufacturing
Public/private sector: → In the private sector
Concluded by:
Name company: → Nationwide Electrical Industries Limited
Names trade unions: → Amalgamated Union of Kenya Metal Workers

TRAINING

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

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 25 %
Maximum days for paid sickness leave: → 60 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 restricted to 1 % of basic wage
Job security after maternity leave: → Yes
Prohibition of discrimination related to maternity: → 
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: → 
Paid leave per year in case of caring for relatives: → 5 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: → 8.0
Working hours per week: → 45.0
Working days per week: → 6.0
Paid annual leave: → 25.0 days
Paid annual leave: → 4.0 weeks
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
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: → 
Adjustment for rising costs of living: → 0

Wage increase

Wage increase: → 11.0 %

Extra payment for annual leave

Extra payment for annual leave: → KES 3000.0

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Premium for Sunday work

Premium for Sunday work: → 200 %

Allowance for commuting work

Allowance for commuting work: → KES 500.0 per month

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
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