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MEMORANDUM OF AGREEMENT Between THE MINOR ENGINEERING GROUP OF FEDERATION OF KENYA EMPLOYERS AND KENYA ENGINEERING WORKERS’ UNION

PREAMBLE

This agreement shall be observed in respect of all unionisable employees of the Minor Engineering Employers Group Member Companies

DEFINITION OF EMPLOYEES

It is understood and agreed that the word “Employee” in this Agreement shall cover all employees who are unionisable, and it shall mean both male and female unless specifically stated otherwise.

CONFIRMATION

On completion of three months probation period an employee shall be issued with a letter of confirmation stating his/her date of engagement and the salary of Grade at which he/she has been engaged.

PART I: BASIC MINIMUM WAGES AND HOUSING ALLOWANCE

The monthly basic minimum wages shall be as follows:-

New Basic Minimum

1/8/2012

New Basic Minimum

1/9/2013

New House Allowance

1/8/2012

New House Allowance

1/8/2013

GROUP I

A) i) General Labourers Unskilled

ii) Messenger

iii) Machine Attendant

9,671.20

9,671.20

10,960.40

10,638.32

10,638.32

12,056.44

2,710.00

2,710.00

2,790.00

2,910.0

2,910.0

2,990.00

B i) Day Watchman

ii) Night Watchman

11,907.50

10,788.80

13,098.25

11,867.00

2,710.00

2,710.00

2,910.00

2,910.00

Group II
i) Semi Skilled

ii) Drivers (Light vans)

iii) Machine Operator

13,052.60

13,052.60

13,052.60

14,357.86

14,357.86

14,357.86

2,790.00

2,790.00

2,790.00

2,990.00

2,990.00

2,990.00

Group III

i) Artisan with Trade Test Certificate III

ii) Drivers (Medium size Vehicles)

16,414.20

16,414.20

18,055.62

18,055.62

2,790.00

2,790.00

2,990.00

2,990.00

Group IV

i) Artisan with TTC Grade II

18,120.30 19,932.33 2,820.00 3,020.00
Group V

i) Artisan with TTC Grade 1

ii) Heavy Comm. Driver

21,822.90

21,822.90

24,005.19

24,005.19

2,820.00

2,820.00

3,020.00

3,020.00

CLERICAL STAFF
i) Junior Clerk

ii) Wages Clerk

iii) Sales Clerk

iv) Book Keeper

v) Account Clerk

14,894.00

14,894.00

14,894.00

14,894.00

14,894.00

16,383.40

16,383.40

16,383.40

16,383.40

16,383.40

2,740.00

2,740.00

2,810.00

2,810.00

2,810.00

2,940.00

2,940.00

3,010.00

3,010.00

3,010.00

Group VI

i) Copy Typist

ii) Receptionist

iii) Telephone Operator2,990.00

12,511.40

14,894.00

14,894.00

13,762.54

16,383.40

16,383.40

2,740.00

2,790.00

2,790.00

2,940.00

2,990.00

2,990.00

C) GENERAL WAGE INCREASE

i) From 1st August 2012.

The employees who were in the service of the employer as at 31st July 2012 will receive a general wage increase of 10%

ii) From 1st August 2013

The employees who will be in the service of the employer as at 31st July 2013 will receive a general increase of 10% to cover the next succeeding 12 months.

NOTE: Employees whose qualifications are above those provided for in this Agreement will have their cases dealt with by the Management and in conjunction with the Union with a view to determining their appropriate remuneration or starting salaries.

PART II: OTHER TERMS AND CONDITIONS OF EMPLOYMENT

1. HOURS OF WORK

a) The normal working week shall consist of 45 hours spread over not more than six days of the week.

b) The normal working week for a Night Watchman shall consist of not more than sixty (60) hours spread over six nights or six shifts of the week. Any Watchman working on a Gazetted Public Holiday shall be paid overtime at the appropriate overtime rate.

2. OVERTIME

Overtime shall be payable in respect of hours worked in excess of the Public Holidays as follows:

a) Mondays to SaturdaysTime plus a half

b) Sundays or normal rest daysDouble time

Provided that an employee who completes his normal working day and is then required to stay shall be paid overtime without the total number of hours for the week being taken into account. For the purpose of this proviso, the words “normal working day” shall mean the total number of hours an employee is required to work on a particular day or shift.

3. ANNUAL LEAVE

a) After the completion of each period of 12 months’ continuous service with the employer an employee shall be entitled to annual leave covering a period of 26 working days with full pay. (Excluding Gazetted Public Holidays).

b) Where employment is terminated after the completion of two or more consecutive months of service during any twelve months leave earning period, an employee shall be entitled to leave with full pay which is proportional to the part of the leave earning year which has been completed.

4. LEAVE TRAVELLING ALLOWANCE

a) When proceeding on annual leave, an employee shall be entitled to Kshs.2,800/- leave travel allowance.

Where an employee is requested by his employer to take money instead of leave, such employee shall be entitled to be paid leave travel allowance, but where the employee at his own request, elects to sell his/her leave, then he/she will not be eligible to be paid leave travel allowance. The request shall be made in writing.

5. SICK LEAVE

After two consecutive months of service with an employer an employee shall be entitled to sick leave with full pay up to a maximum of forty five (45) days and thereafter to sick leave with half pay up to a maximum of forty five (45) days in each period of twelve months service.

Provided that:

a) An employee shall not be entitled to such payment unless he/she produces to the employer a certificate of incapacity covering the period of sick leave claimed, signed by a duly qualified medical practitioner in charge of a dispensary or Medical Aid Centre, or by a person acting on such practitioner’s behalf.

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

6. MEDICAL TREATMENT

a) Employees shall be granted full Medical Treatment as provided for by the law. This shall include hospitalization provided that treatment is carried out in Government or Local Authority Hospital. Where drugs are not available at the Government hospitals the employer shall reimburse the cost of such drugs bought at private pharmacies to the extent of Kshs.4,000/= per year for the employees only with effect from 1st August 2012. Any employee who brings false certificate in-order to get time off will be dismissed summarily if discovered.

7. MATERNITY LEAVE

Subject to the production of a medical certificate by a duly qualified medical practitioner in charge of a dispensary or medical aid center, or by a person acting on such practitioner’s behalf a female employee shall be entitled to three months maternity leave with full pay as per the Employment Act 2007.

Provided that:

a) A female employee who has taken maternity leave shall not forfeit her annual leave in that year.

b) Child-birth in respect of a female employee shall not be deemed to be sickness as provided for under clause 5 part II of this Agreement and the employer shall not be required to meet medical costs incurred thereon.

c) A female employee who takes maternity leave shall not incur any loss of privileges during such period.

d) A male employee shall be entitled to two weeks paternity leave with full pay as per the Employment Act 2007.

8. INJURY BY ACCIDENT

Injuries suffered in the course of employment shall be dealt with strictly in accordance with the provisions of the Work Injury Benefits Act 2007.

9. COMPASSIONATE LEAVE

i) An employee desirous of taking leave on compassionate grounds shall by prior arrangements with the employer be granted such leave up to his earned entitlement under paragraph 3 of this Agreement and the leave taken shall be subsequently set off against his/her annual leave.

ii) An employee may, in addition to the leave provided for in sub-paragraph (i) of this paragraph be granted five days compassionate leave without pay in any one year.

10. PROBATIONARY PERIOD

The probationary period shall be three months during which period employment may be terminated by either party by giving notice or pay in lieu as follows:-

a) During the 1st month-48 hours notice or 2 days pay in lieu

b) During the 2nd month-7 days notice or pay in lieu

c) During the 3rd month-21 days or pay in lieu

11. TERMINATION OF EMPLOYMENT

a) After the completion of probationary period, employment shall be terminable in writing by either party as follows:-

i) For employees with 1 to 7 years of service, one month’s notice or one month’s pay in lieu of notice.

ii) For employees with 8 to 14 years of service, two months pay or two months pay in lieu of notice

iii) For employees with over 14 years of service three months’ notice of three month pay in lieu.

b) The clause shall not apply to casual workers or employees under probation.

c) The employer shall reserve the right to pay an employee as indicated in (a) (i), (ii) and (iii) salary in lieu of notice and also reserves the right to dismiss an employee summarily for gross misconduct as defined in Section 44 of the Employment Act 2007.

d) Nothing in this Agreement shall derogate the right of employer to dismiss an employee summarily.

12. SAFARI ALLOWANCE

i) Breakfast-Kshs.110/=

ii) Lunch-Kshs.140/=

iii) Dinner-Kshs.250/=

iv) Accommodation-Kshs.500/=

b) The subsistence allowance payable under paragraph (a) of this clause shall cease to be payable to an employee after thirty consecutive days absence from Nairobi area. The above allowance will not be payable when the employer provides meals and accommodation.

13. PROMOTION

Where vacancies of promotional nature arise, consideration will be given to existing employees taking into account such factors as qualifications, ability, experience and length of service.

14. ACTING ALLOWANCE

Where an employee is required to work in full acting capacity for a period of not less than 20 consecutive days in an occupation or grade for which the consolidated monthly minimum prescribed under clause 1 of part of this agreement is higher than the wage he/she normally earns, he/ she shall be paid acting allowance at a rate not less than the difference between such higher minimum wage and his normal wage.

15. CASUAL WORKERS

a) Any casual employee working for employer for three consecutive months shall automatically qualify for permanent employment.

b) For the purpose of working out the daily rate of pay for casual workers, the consolidated monthly minimum wages applicable to the permanent employee shall be divided by 26 days.

16. PROTECTIVE CLOTHING/DEVICES

(a) An employee who is required to wear protective clothing shall be issued with clothing by his employer. The clothing shall be as recommended by Directorate of Occupational Safety and Health.

(b) The employer’s may at his/their own discretion issue additional clothing to his/their or some of his/their employee’s as he/they (employer’s) may consider necessary.

17. OVERALLS

a) All employees shall be issued with two overalls which may be replaced within 12 months from the date of issue but not before 12 months from the date of issue be replaced when necessary.

b) An employee issued with overalls or uniforms shall be provided with standard bar soap per month for washing the same or alternatively, the employer shall be responsible for laundering/uniforms.

18. SUPPLY OF MILK

Employees who work in the place of spray painting, furnace or at any other place in accordance with Occupational Safety and Health Act 2007 shall be supplied with ½ litre of milk on the day he works at such places.

19. 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 services of an employee are superfluous, and the practices commonly known as abolition of office, job or occupation and loss of employment due to the 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 clause (f).

c) Consultation

In the event of redundancy, the company undertakes to hold prior discussions with the union concerning the reasons for and the extent of the intended redundancy

d) Selection of Redundant Employees

In deciding which employees to be declared redundant the company shall assess the relative merits, ability and reliability of the affected employees, but when these factors are equal, the discharge will be on the basis of seniority. Membership or non-membership of the union will not be a factor.

e) Re-Engagement

Redundant employees will be given prior consideration for re-engagement by the company should a vacancy arise according to their qualifications.

f) Entitlement of Redundant Employees

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

i) The normal notice or pay in lieu of notice as defined in the Agreement.

ii) Payment of wages, overtime and any other remuneration which may be due to him/her calculated upto the date on which he/she ceases work.

iii) Pro-rata leave and leave allowance entitlement in accordance with the agreement.

iv) Severance pay on the basis of 17 days pay for each completed year of service.

20. CERTIFICATE OF SERVICE

1) Every employee shall be given a certificate of service by his/her employer upon the termination of his employment, 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 employee and his postal address;

b) the name of the employer

c) the date when employment commenced

d) the nature and usual place of employment

e) the date when employment ceased; and

f) such other particulars as may be prescribed

2) Subject to sub-section (1) of this section, no employer is bound to give to any employee any testimonial reference or certificate relating to the character or performance of an employee.

21. 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 such dismissal:-

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

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

c) If, an employee willfully neglects to perform any work which it was his duty to have performed or if he/she 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;

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

e) If, an 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 person placed in authority over him/her by his/her employer.

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

g) If, an employee commits or on reasonable and sufficient grounds is suspected of having committed any criminal offence against or to the substantial detriment of his/her employer or his/her employers property.

22. WARNING SYSTEM

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

a) The first and second warning shall be entered in the employee’s employment record and the shopsteward of his/her union shall be informed accordingly.

b) The second warning shall be copied to the Area Secretary of his/her union

c) If, an employee who has already received two warnings commits a third misconduct he/she shall be liable to summary dismissal.

Provided that:-

Where an employee completes three hundred and sixty-five days, from the date of the second warning without further misconduct any warning entered in his/her employment record shall be cancelled.

23. DEATH OF AN EMPLOYEE

In the event of death of an employee the employer shall pay Kshs.40,000/- to cover funeral, burial and other expenses.

24. TRAINING

Any employee who is required to be trained for a particular job, shall be given a signed letter stating how long he/she would remain in training and rate of pay he/she would be getting per month until he/she completes training as laid down in the Industrial Training Act.

25. TOOLS

Employers will provide all the tools to their workers. Every employee will be responsible for the damage or loss of tools issued to him/her.

26. NIGHT TRANSPORT

An employee who is required to work until the hours of darkness after 7.00 p.m. will either be provided with transport or given bus fare where bus is available.

27. NIGHT SHIFT ALLOWANCE

All employees required to perform shift work at night will be paid shift allowance of four shillings per hour (6.00)

28. GRATUITY BENEFITS

The employees services for calculating their entitlement shall be from 1st January 1991 and not from the date they joined the service.

The service gratuity shall be calculated as follows:-

a) Employees with 1-5 years service – 13 days pay for each completed year of service.

b) Employees with 6-10 service – 15 days pay for each complete year of service.

c) Employees with more than 10 years service – 21 days pay for each completed year of service.

29. SHOP STEWARDS RIGHT

The shop steward while representing the union members, attending union meetings and negotiations authorized by the company upon request by the union will be considered to be on duty.

30. COMPANY IDENTITY CARDS.

Employees will be provided with company identity cards for security reasons.

31. SAFETY AND HEALTH COMMITTEE

All premises of work will establish safety and health committees as provided by the Occupational Safety and Health Act 2007.

32. SUSPENSION.

In the event of an employee commits a misconduct which requires investigation, the employer will suspend such an employee for a maximum period of three days without pay to allow the investigation to be carried out.

However should the employee be found guilty appropriate disciplinary proceedings including termination/dismissal will be taken.

Should he/she be found innocent then the employee will be reinstated and paid for the days he/she was on suspension.

33. AGENCY FEE

Both parties agreed to observe as per the Labour Relations Act 2007 Section 49.

34. EFFECTIVE DATE AND DURATION

This Agreement becomes effective from the 1st August 2012 and shall thereafter remain in force for a period of 24 months. After the expiry date, the Agreement shall continue in force until it is amended by mutual consent, provided that the party desiring to amend the agreement or any clauses in the Agreement shall give the other party at least four months’ written notice setting out in details the desired amendments.

SIGNED FOR AND ON BEHALF OF THE EMPLOYERS

………………………………

MARSHALL FOWLER

ENGINEERING LIMITED

……………………………………

NAOMI NJERI KAMAU

CANNON ALUMINIUM

………………………………

ALLIANCE STEEL WORKS

……………………………….

AMARJIT S. GAHIR

GAHIR ENGINEERING WORKS

…………………………….

HITEN SHAH

METCO LIMITED

SIGNED FOR AND ON BEHALF OF THE UNION

…………………………………

CHARLES NATILI

GENERAL SECRETARY

..…………………………….

WYCLIFFE A. NYAMWATTA

DEPUTY GENERAL SECRETARY

……………………………

ALLAN CHANZU

SHOPSTEWARD

….…………………………………

NICHOLAS OMBAKA

SHOPSTEWARD

……………………………….

DANIEL MUNYAO

SHOPSTEWARD

…………………………

LUMUMBA OTUO

SHOPSTEWARD

…………………………………

WYCLIFFE LUBANGA

SHOPSTEWARD

IN THE PRESENCE OF

………………………………………………….

L.W KARIUKI

HEAD OF INDUSTRIAL RELATIONS SERVICES

FEDERATION OF KENYA EMPLOYERS

SIGNED IN NAIROBI THIS ……………. DAY OF …………. 2013

The Minor Engineering Group of Federation Of Kenya Employers - 2012

Start date: → 2012-08-01
End date: → 2014-07-30
Name industry: → Construction, technical consultancy
Name industry: → Engineering activities and related technical consultancy
Public/private sector: → In the private sector
Concluded by:
Names associations: → The Minor Engineering Group of Federation Of Kenya Employers
Names trade unions: → Kenya Engineering Workers Union

TRAINING

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

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 38 %
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
Maternity paid leave restricted to 100 % of basic wage
Job security after maternity leave: → Yes
Prohibition of discrimination related to maternity: → Yes
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: → 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 week: → 45.0
Working days per week: → 6.0
Paid annual leave: → 26.0 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: → 10.0 %
Wage increase starts: → 2013-08

Premium for evening or night work

Premium for evening or night work: → KES 4.0 per month
Premium for night work only: → Yes

Extra payment for annual leave

Extra payment for annual leave: → KES 2800.0

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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