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MEMORANDUM OF AGREEMENT

BETWEEN

SUPER FOAM LIMITED (HEREINAFTER CALLED "THE COMPANY") OF THE FIRST PART

AND

KENYA CHEMICAL AND ALLIED WORKERS' UNION (HEREINAFTER CALLED "THE UNION" OF THE SECOND PART

1.SUBJECT MATTER:

These terms and conditions of employment set out in this agreement shall be observed by the parties and shall apply to all unionisable employees as provided for in the Industrial Relations Charter and within the terms of the Recognition Agreement signed between the parties.

2.MINIMUM RATE OF PAY:

All employees of the company shall be graded irrespective of sex into grades as classified in the Appendix `A' attached to this agreement with the minimum basic rates of pay as below:-

EXISTING W.E.F. 1/1/12 W.E.F. 1/1/13 W.E.F. 1/1/14
Special Grade 19,839 21,426 23,140 25,223
Grade 1 17,165 18,538 20,021 21,823
Grade 2 15,020 16,221 17,519 19,096
Grade 3 12,336 13,323 14,389 15,684
Grade 4 10,454 11,290 12,194 13,291
Grade 5 9,662 10,435 11,270 12,284

3.HOUSE ALLOWANCE:

All employees who are not provided with accommodation by the employer will be entitled to a 15% of their basic wages as house allowance or Kshs. 2200/= per month during the first year of the agreement and Kshs. 2250/= during the second year of the agreement and Kshs.2,375/- during the third year of the agreement whichever is higher.

4.GENERAL WAGE INCREASE:

The existing employees will be entitled to 8% wage increase for the first year of the agreement and a further 8% in the second year and another 9% in the third year of the agreement with rates of pay for each grade as contained by the Appendix "B".

Provided that employees who do not reach the agreed minimum for their grades after the first year wage increase will be moved to the agreed minimum for the grade.

5.EMPLOYEES IN ACTING CAPACITY:

An employee holding an acting appointment in a higher grade job than his/her usual graded job for a maximum period of 8 days shall receive an acting allowance equal to the difference between his/her normal pay and the normal pay of the higher grade.

6.WORKING HOURS:

An employee shall normally be required to work, whether on shift or otherwise, a total of 45 hours per week, provided that an employee who is required to work in excess of such hours shall be paid for overtime at the appropriate rates as provided by overtime clause of this agreement. Watchman/Askaris shall be required to work 54 hours per week.

7.OVERTIME RATES:

Overtime shall be payable as the following rates:-

(a) For the time worked in excess of the normal number of hours per week -Time plus half.

(b) For time worked on rest days and Gazetted Public Holidays - Double time.

8.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 as provided for by Clause 7 of this agreement.

9.ANNUAL PAID LEAVE:

(a) After the completion of each period of 12 months of continuous service with the company, an employee shall be entitled to 25 working days paid leave. This shall cover employees with up to 5 years.

(b) An employee who has completed over 5 years of continuous service with the company shall be entitled to 30 working days paid leave after each period of 12 months of continuous service.

(c) In the event of gazetted public holidays falling within the leave period, such public holidays shall be added to the leave entitlement.

(d) The date of an employee's leave shall normally fall after the completion of every 12 months' service from the date of his/her engagement or confirmation of service.

10.COMPASSIONATE LEAVE AND LEAVE OF ABSENCE:

Upon application and at the discretion of the employer and on compassionate grounds, an employee may be granted 7 days Compassionate leave in any one calendar year. The 7 (seven) days compassionate leave granted on an employee will not be paid but it may be paid in the discretion of the company or offset against his annual leave. Such leave shall not be unreasonably refused.

11.SICK LEAVE:

An employee who is unable to carry out his/her duties by reason of sickness shall be entitled in any period of 12 months, a full pay for the first 45 days absence from work, and half pay for the next succeeding 45 days subject to the production of a medical certificate signed by a registered medical practitioner testifying to the need of such absence. Sick leave with pay may be extended beyond the period stipulated above at the discretion of the company. An employee shall not be entitled to sick leave where the incapacity is due to gross negligence on his/her part.

12.INJURY BY ACCIDENT:

The provisions of the Work Injury Benefits Act, 2007 shall apply.

13.FUNERAL EXPENSES:

In the case of death of an employee while the employee is in the employment with the company, a sum of Ksh. 40,000/= (Fourty thousand) shall be paid to a nominated member of the family of the deceased employee to assist in funeral expenses.

14.SAFARI ALLOWANCE:

An employee who is required to proceed on safari, on company's business, shall be paid as follows:-

Breakfast: Kshs. 180.00

Lunch: Kshs. 240.00

Dinner: Kshs. 250.00

Overnight Accommodation: Kshs. 500.00

15.CERTIFICATE OF SERVICE:

On termination of employment, an employee shall be given a certificate of service by the employer 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 employer

(b) The name of the employee

(c) The date when employment commenced, and

(d) The date when employment ceased, and such other particulars as may be prescribed.

16.TERMINATION OF EMPLOYMENT:

Except where an employee is summarily dismissed for gross misconduct or other lawful cause as prescribed in the Employment Act and provided that the probation period has been completed, the company will be required to give the following notices to his employees:-

(a) After completion of a probationary period as specified under Clause 19, but less than 5 continuous years of service with the company - one month's pay in lieu of such notice.

(b) On completion of 5 years of continuous service and over with the company - Two months' notice or two months' pay in lieu of such notice.

17.WARNING PROCEDURE:

An employee who is guilty of an offence other than gross misconduct or other lawful cause for dismissal, may be given a warning in writing which shall be recorded in his/her history record card and which he/she shall be required to sign. The signature of the employee in the history record card shall not mean that the employee is pleading guilty of the offence recorded against such employee, but simply to confirm that it has been recorded during an employee's presence or with his/her full knowledge, the employee shall be free to make an appeal against such warning in accordance with the procedure laid down by the Recognition Agreement between the Company and the union.

An employee who receives three such warnings may be liable to summary dismissal if he commits other offence. All warnings shall be erased from the history record card of an employee after a period of 12 months from the date of the last such warnings. The union shall be advised of the second and third warnings being given to an employee.

18.SUMMARY DISMISSAL:

(a) The summary dismissal of any employee shall be for gross misconduct in accordance with Section 44(4) of the Employment Act, 2007. Notice of summary dismissal shall contain sufficient information to indicate to all interested parties the reason for dismissal.

(b) Any employee guilty of gross misconduct shall be dismissed summarily, but shall be paid up to the date of his/her dismissal plus accrued leave. However, before a decision to dismiss an employee for gross misconduct becomes final an employee shall be given an opportunity to state his/her case with the assistance of the shopstewards, if he so requires.

(c) Any of the following matters may be considered as gross misconduct:-

(i) If, without leave or lawful cause, an employee absents himself/herself from the place appointed for the performance or his/her work.

(ii) If, during working hours, by becoming or being intoxicated an employee renders himself/herself unwilling or incapable properly to perform his/her work.

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

(iv) If, any employee uses abusive or insulting language or behaves in a manner insulting to his employer or to any person placed in authority over him/her by his/her employer.

(v) If, any employee knowingly fails, or refuses to obey any lawful and proper command which it was within the scope of his/her duty to obey, issued by his/her employer or any other person placed in authority over him/her by his/her employer.

(vi) If, in the lawful exercise of any power or arrest given by or under any written law, an employee is arrested for a cognisable offence punishable by imprisonment and is not within 14 days either released on bail or on bond or otherwise lawfully set at liberty.

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

19.PROBATION:

All employees shall be considered to be on probation not exceeding three months from the date of engagement and during this time an employee shall be subject to one week's notice of termination of the employment, or will be given one week's pay in lieu of notice.

20.MATERNITY/PATERNITY LEAVE:

The provisions of the Employment Act, 2007 shall apply.

21.LEAVE TRAVELLING ALLOWANCE

An employee proceeding on annual leave shall be entitled to a leave travelling allowance of Kshs 2,950.00. This allowance is to be paid in advance when proceeding on leave.

22.UNIFORMS AND PROTECTIVE CLOTHING:

An employee who is required to wear uniform or overall by nature of his/her work or in accordance with the provisions of the Occupational Safety and Health Act, 2007 shall be issued with two pieces of each item of the uniforms or overalls free of charge by the company. Such uniforms or overalls shall be replaced with new pairs immediately after a period of twelve months. The company shall provide one standard bar of soap per month for cleaning the uniforms and overalls.

23.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 service of an employee becomes superfluous and the practice commonly known as abolition of office, job or occupation and loss of employment due to Kenyanisation of business.

(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/she will be classified as redundant and therefore eligible for the entitlements outlined in sub-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 employee shall be declared redundant, the company will assess the relative merits and ability of the affected employees, but when these factors are equal the discharge will be on the basis of seniority and reliability.

Membership or non-membership of the union will not be a factor.

(e) Re-Engagement:

Redundant employee will be given prior consideration for re-engagement by the company should a vacancy arise depending on the qualifications.

(f) Entitlements of Redundant Employees:

In the event of an employee being declared redundant, he/she shall be entitled to:-

(i) The Normal notice period pay in lieu of notice as provided for the Clause 16 of this Agreement.

(ii) Payment of wages, overtime and any other remuneration due

(iii) Pro-rata leave and leave allowance entitlements in accordance with Agreement.

(iv) (a) Severance pay on the basis of 20 days pay for each completed year of service for employees with less than 10 years' service.

(b) Severance pay on the basis of one and a half months' pay for each completed year of service for employees with 10 years and over service.

Provident Fund and any other retirement benefits are in no way affected by these arrangements, if they exist.

24.LETTER OF APPOINTMENT:

From the date of engagement, an employee will be issued with an appointment letter by his/her employer indicating salary, responsibility and other requirements as may be determined by the company.

25.RETIREMENT BENEFITS:

On reaching retirement age of 55 years or where an employee is retired on medical grounds he/she shall be entitled to the following retirement benefits:-

(a)Less than 10 years' service -24 days for each completed year of service.

(b)10 years and over -38 days' pay for each completed year of service.

26.NIGHT SHIFT ALLOWANCE:

All employees who work at night on shift shall be entitled to a night shift allowance of Ksh. 50.00 per employee per night shift worked.

27.MEDICAL TREATMENT

The Company undertakes to pay the cost of such medical treatment expenses in accordance with provisions prescribed by the laws of Kenya; Employment of Persons Medical Treatment Rules 1977. The payment of medical expenses will be made to all employees of the company, provided that such illnesses are those covered by the Act.

28.TERMINATION AND RESIGNATION BENEFITS

Where an employee is terminated at the initiative of the employer or resigns on his/her own accord, he/she will be entitled to the following benefits:-

(a) Less than 10 years service -18 days pay for each completed year

of service

(b) Ten (10) years and over22 days pay for each completed year

of service

29.EFFECTIVE DATE AND DURATION OF THE AGREEMENT

This agreement shall be effective as from 1st January 2012 and it shall remain in force for a period of thirty six months from the date, and thereafter until it is amended by mutual agreement between the company and the union. Provided that the party desiring to amend this agreement gives one month's notice.

SIGNED FOR AND ON BEHALF OF SUPER FOAM LIMITED

-------------------------___________________

DILIP SHAHREUBEN NYABERI

DIRECTORHR MANAGER

FOR AND ON BEHALF OF KENYA CHEMICAL AND ALLIED WORKER'S UNION

--------------------------------

(WERE DIBO OGUTU, OGW)

NATIONAL GENERAL SECRETARY

WITNESSED BY:

-------------------------------- ---------------------------------

(J. OBURA) (HEZRON OPIYO)

AREA SECRETARY – NAIROBI,DEPUTY NATIONAL GENERAL

CENTRAL AND EASTERN PROVINCESSECRETARY

__________________

ABEL ISABOKE

BRANCH SECRETARY, RUIRU

-----------------------------------___________________________

(PETER KITABU)(IBRAHIM OBANDA)

SHOPSTEWARDSHOPSTEWARD

IN THE PRESENCE OF:

------------------------------

(A.O. AMBENGE)

SENIOR EXECUTIVE OFFICER

FEDERATION OF KENYA EMPLOYERS

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

/jan

APPENDIX - ATo Memorandum of Agreement DATED..............................DAY OF...............2012

SPECIAL GRADE: Machine Maintenance, Electricians, Drivers (Heavy Commercial vehicles), Senior Clerks Salesman Drivers, Motor Vehicle Mechanics, with at least 7 years experience or those with Government Trade Test Grade 1.

GRADE 1: Machine Maintenance, Electricians, Drivers (Medium Size Vehicles), General Clerks, Motor Vehicle Mechanics, Extruder operators, Polythene Printing Machine Operators, Foaming Machine Operators, Stereo Machine Operators, Charge Hands with at least 5 years experience or those with Government trade Test Grade II.

GRADE II: Machine Maintenance, Electricians, Telephone Operators, Receptionists, General Clerks, Motor Vehicle Mechanics, Extruder Operators, Polythene Printing Machines Operators, Foaming Machine Operators, Bag Making Machine Operators, Warp Knitting Machine Operators, Stereo Machine Operators, Charge Hands with at least 3 years experience or those with Government Trade Test Grade III.

GRADE III: Copy Typist, Drivers (Cars/Light Vans) Junior Clerks, ungraded artisans like Fitters/Turners.

GRADE IV: Tailors Assistants, Mass Production Machinists Machine Attendants, Drivers Mates, Watchmen.

GRADE V: General Workers, Stitchers, Packers, Handle Fixers, Sealers, Labellers, Sweepers, Cleaners, Gardeners and Trainees.

APPENDIX B

Year 2012 - 8% on current pay

Year 2013 - 8% on year 2012 pay

Year 2014 – 9% on year 2013 pay

Current Pay Year 2012, + 8% Year 2013, + 8% Year 2014, + 9%
Special Grade 22,511.00 24,312.00 26,257.00 28,620.00
Grade 1 18,544.00 20,028.00 21,630.00 23,576.00
Grade 2 15,662.00 16,915.00 18,268.00 19,912.00
Grade 3 13,212.00 14,269.00 15,410.00 16,797.00
Grade 4 11,190.00 12,085.00 13,052.00 14,227.00
Grade 5 9,784.00 10,567.00 11,412.00 12,439.00

Super Foam Limited - 2012

Start date: → 2012-01-01
End date: → 2015-01-01
Name industry: → Manufacturing
Public/private sector: → In the private sector
Concluded by:
Name company: → Super Foam 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
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

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
Paid annual leave: → 25.0 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: → 9.0 %

Premium for evening or night work

Premium for evening or night work: → KES 50.0 per month
Premium for night work only: → Yes

Extra payment for annual leave

Extra payment for annual leave: → KES 2950.0

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Premium for Sunday work

Premium for Sunday work: → 200 %

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
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