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MEMORANDUM OF AGREEMENT

BETWEEN

STRAIGHT LINE ENTERPRISES LIMITED (HEREINAFTER REFERRED

TO AS THE "EMPLOYER) OF THE FIRST PART

and

THE TAILORS AND TEXTILES WORKERS UNION (HEREINAFTER

REFERRED TO AS THE "UNION") OF THE SECOND PART

****

IN THE MATTER OF TERMS AND CONDITIONS OF SERVICE AND WAGES

M/S. Straight Line Enterprises Limited (hereinafter referred to as the "employer") and the Tailors and Textiles Workers' Union (hereinafter referred to as the "Union" meeting together in free heart and voluntary association agree to, and enter into the foregoing common Agreement in the matter of Terms and Conditions of Service negotiated between them at the Joint Negotiating Committee.

PART 1

1.PROBATION

The first three months of engagement shall be treated as probationary period. During this period services of an employee shall be terminable by 7 days notice or pay in lieu given by either party terminating the employment.

2.HOURS OF WORK

The working week shall consist of 45 hours spread over 5 days of the week, provided that:-

Except in the case of shift work, an employee's normal working hours shall be nine hours per day on five days in each week.

3.OVERTIME

Overtime shall be paid in the following manner:-

a) For time worked between Monday and Saturday in excess of the normal working hours per week specified in paragraph two of this agreement, at one and a half times the basic hourly rate.

b) For time worked during Sundays and Gazetted Public Holidays at double times the basic hourly rate.

4.HOUSING ALLOWANCE

Every employee who is not provided with free housing accommodation shall be entitled in addition to the basic month's wages, to a housing allowance of Kshs. 3,300/= per month.

5.ANNUAL LEAVE

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

b) Where employment is terminated after the completion of two or more months service, leave entitlement will be on pro-rata basis.

6.LEAVE TRAVELLING ALLOWANCE

i) An employee will be entitled to Kshs. 3,900/= leave travelling allowance. The money will be given at the time of proceeding on leave.

(ii) Where an employee is requested by his/her employer to remain working instead of taking his/her leave the number of leave days will be paid in cash plus leave travelling allowance.

(iii)Where an employee requests to receive cash in lieu of leave, such employee will not be entitled to leave travelling allowance.

7.COMPASSIONATE LEAVE

(i) An employee shall be granted compassionate unpaid leave on application by mutual agreement between the parties.

(ii) Compassionate leave may by prior arrangement by the employee with the employer, be treated as paid leave and subsequently set off against the employee's annual leave.

8.GAZETTED PUBLIC HOLIDAYS

(i) An employee shall be granted Gazetted Public Holidays with full pay.

(ii) If it falls within leave period, the employee will be granted additional paid leave days on top.

9.SICK LEAVE

After two months continuous service with an employer, an employee will be entitled to a maximum of 40 days sick leave with full pay and thereafter to a maximum of 40 days sick leave with half pay in each period of twelve month's consecutive service.

Provided that:

(i) An employee shall be entitled to such payment unless he produces to the employer a certificate of incapacity covering period of sick leave claimed signed by a medical practitioner in charge of a dispensary or medical aid centre, or by a person authorised by him in writing and acting on his behalf.

(ii) An employee shall not be eligible for sick leave under this clause in respect of any incapacity due to gross neglect on his part.

10.ACTING ALLOWANCE

After 24 working days of acting in a higher category/grade than his/her own, an employee will receive the minimum wages for the category/ grade he/she is acting on or in the alternative where his/her basic wages already supersedes the basic minimum wage of the job he/she is acting, he/she shall be given an allowance which is equivalent to the difference of the two groups. The request will be in writing.

11.WARNING PROCEDURE

(a) An employee who is guilty of an offence other than gross misconduct or other lawful cause of dismissal may be given a written warning which shall remain valid for a period of 12 months from the date of issue. If, similar or any other offence which does not warrant dismissal, he/she will be further warned in writing and the warning shall be recorded in his/her employment record card, and the two warnings shall remain valid for a period of 12 months from the date of the second warning. If within this period of 12 months the employee commits a further offence which does not warrant dismissal, he/she will be issued with a final letter of warning which will make him or her liable to summary dismissal for any other offence which he/she will commit thereafter. A final letter of warning will remain valid for a period of 12 months from the date of issue. A copy of the final warning shall be sent to the Branch Secretary of the Union.

(b) If an employee refuses to accept the warning letter the shopsteward shall be called to witness and if he/she refuses to accept in the presence of the shopsteward he/she will be dismissed.

(c) An employee who has been served with a warning letter shall have the right to appeal within three working days on receipt of the warning letter.

12.TERMINATION OF EMPLOYMENT

After the completion of the probation period, employment is terminable by either party as follows:-

1 - 5 years service-one months written notice or pay in lieu

5 - 10 years service-two months written notice or pay in lieu

Over 10 years service-three months written notice or pay in lieu

13.REDUNDANCY

(a) In case of redundancy, the principle of "Last In, First Out" will apply for the selection of employees affected by redundancy, taking into account, seniority, ability, length of service etc., subject to closer consultation with the Union.

(b) Those affected by redundancy shall be considered for the following:

(i) Be offered other employment if any available.

(ii) Receive normal specified period of notice.

(iii) Receive severance pay calculated at 18 days pay for each completed year of service.

14.MATERNITY/PATERNITY LEAVE

The provision of the Employment Act, 2007 will apply.

15.PROTECTIVE CLOTHING

(a) All parties and associated personnel dealing with inks will be provided with 2 dust coats.

(b) Stitching department employees will be provided with 2 dust coats.

(c) The uniforms will remain the property of the Company and they will be replaced after the normal tear and wear.

(d) Washing will be the responsibility of the Company.

16.CASUAL EMPLOYEES

The provision of the Employment Act, 2007 will apply

17.PROMOTION

Although promotion is a management prerogative, where vacancies of promotional nature arise, the employer shall give first consideration to existing employees with the department or group in which vacancy occurs taking qualifications, merit, ability, experience and length of service into consideration.

18.COMPANY TRANSPORT

Employees working after 6:30 p.m. will be provided with transport or be paid Kshs.100/= to cater for bus fare.

19.DEATH OF AN EMPLOYEE

In the event of death of an employee the management will contribute Kshs. 55,000/= towards the burial expenses.

20.MEDICAL TREATMENT

The Medical Treatment Rules will apply. However treatment be restricted to Government or Local Authority Hospitals.

21.LETTER OF APPOINTMENT

Each employee shall be issued with a letter or document of appointment by the employer indicating the following:

(a) The name and address of the employer

(b) The name of the employee

(c) The date of engagement

(d) The nature of work or occupation

22.CERTIFICATE OF SERVICE

Every employee shall be give a certificate of service by his/her employer upon the termination of his/her employment and every such certificate shall contain the following:-

(a) The name of the employer and his postal address.

(b) The name of the employee.

(c) The date when the employment commenced.

(d) The nature and usual place of employment.

(e) The date when employment ceased.

23.RETIREMENT BENEFITS SERVICE GRATUITY

a) The retirement age will be 55 years for male and 50 years for female employees. The employee and the employer through mutual consent may extend the retirement age.

b) An employee may retire or be retired by the employer on grounds of ill health in which case a qualified medical doctors certificate will be required to certify this. The company may send an employee recommended for retirement to its own doctors for a second opinion.

c) The retirement benefits clause shall only apply to employees who retire from employment on grounds of ill health, age, death and termination at the initiative of the employer.

An employee who resigns from employment or is dismissed on the account of gross misconduct shall not be entitled to retirement benefits.

d) i) On retirement issuance of appropriate notice will only apply to retirement on age and termination at the initiative of the employer.

ii) For an employee to qualify to earn retirement benefits he/she must have rendered five (5) years or more continuous service with the company.

iii) On retirement, an employee shall be entitled to the following:-

5-10 years of service10 days pay for each completed year of service

10-15 years of service12 days pay for each completed year of service

Over 15 year of service15 days pay for each completed year of service

e)T he retirement benefits clause shall be effective as from 1st July, 1998.

24.BASIC MINIMUM WAGES (EXCLUDING HOUSING ALLOWANCE W.E.F. 1ST JULY 2010

Grade 1

General Workers, Packers Assistants: 8,580/=

Grade 2

Troners, Button-hole and button: 9,270/=

fixing, Machinists, Packers

Grade 3

Mass Production Machinist,: 9,730/=

Screen Printers

Grade 4

Drivers (Light vehicles) Embroiders: 11,105/=

25GENERAL WAGE INCREASE

a) Every employee covered by this agreement and who was with the company as at the 1st July, 2012 whose monthly minimum wages is below the specified new minimum as at that date shall be brought to the new minimum applicable to his/her grade or be granted a 8% wage increase whichever is the greater but not both.

b) All employees, who shall be in employment in the industry as at 1st July, 2012 shall be entitled to further general increase of 7.5% on their wages as at 30th June, 2013 effective from 1st July, 2013.

26.EFFECTIVE DATE AND DURATION

This agreement shall come into force with effective from 1st July, 2012 and shall remain in-force for a period of 2 years from the date, thereafter it shall continue in force until amended. Either party desiring to amend this agreement shall give one month's notice in writing to the other expressing the intention and detailing any suggested amendments.

SIGNED FOR AND ON BEHALF OF THE M/S STRAIGHT LINE LIMITED

......................................

(P. MALHOTRA)

DIRECTOR

SIGNED:FOR AND ON BEHALF OF THE TAILORS AND TEXTILES WORKERS' UNION

...........................................

EZRA OJUKA

DEPUTY NATIONAL GENERAL SECRETARY

.................................................

NICHOLAS KISOI

SHOPSTEWARD

IN THE PRESENCE OF:

...............................................

ABISAI O. AMBENGE

SENIOR EXECUTIVE OFFICER

FEDERATION OF KENYA EMPLOYERS

Dated and Signed at Nairobi this....................... Day of ..................... 2012.

/jan

Straight Line Enterprises Limited - 2012

Start date: → 2012-07-01
End date: → 2014-06-30
Name industry: → Manufacturing
Name industry: → Manufacture of textiles
Public/private sector: → In the private sector
Concluded by:
Name company: → Straight Line Enterprises Limited
Names trade unions: → Tailors and Textiles Workers Union

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 33 %
Maximum days for paid sickness leave: → 80 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: → No

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: → 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 day: → 9.0
Working hours per week: → 45.0
Working days per week: → 5.0
Paid annual leave: → 24.0 days
Paid annual leave: → 4.0 weeks
Paid bank holidays: → Easter Monday, Army Day / Feast of the Sacred Heart/ St. Peter & Paul’s Day (30th June), Chile Independence Day (18th September), John Chilembwe Day (15th January), Human Rights Day / Vernal Equinox Day (21st March)
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: → 7.5 %
Wage increase starts: → 2013-07

Extra payment for annual leave

Extra payment for annual leave: → KES 3900.0

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 100.0 per month

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
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