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COLLECTIVE AGREEMENT BETWEEN KILIFLORA LIMITED AND TANZANIA PLANTATION AND AGRICULTURAL WORKERS UNION (TPAWU) - 2015

IN THE MATTER OF BETTER TERMS, WAGES AND CONDITIONS OF EMPLOYMENT FOR THE WORKERS EMPLOYED BY KILIIFLORA LIMITED

March 2015

1.0 PREAMBLE:

i) Whereas by terms of Recognition the Employer and the Union agree that The Employer has recognized the Union as a properly constituted body and labour organization representing the interest of workers

ii) Whereas the Employer and the Union wish to enter into a collective bargaining agreement to cover all workers employed by KILIFLORA LIMITED.

iii) Whereas the Employer and the Union into this common agreement in matters related to terms and conditions of services at KILIFLORA L TD

iv) Whereas a member of the Employee wishes to withdraw from being a part to this agreement shall give three months notice to the Union.

v) Whereas the Employer or his appointed representative shall append their signatures to this agreement and provided such signature shall be notice of their consent to be party to this agreement.

vi) Whereas the terms and conditions set out in this agreement shall be effective to all Unionisable employees, except those defined as managerial position holders.

vii) Now therefore, the employee and the Union having successfully conducted negotiations at their joint negotiation making; agreement stated hereunder.

2. EFFECTIVE DATE OF THE AGREEMENT AND GENERAL CONDITIONS

2.1. This agreement will be effective from 1st March 2015 valid for a period of twenty-four (24) months.

2.2. Without prejudice to the foregoing paragraph (2.1), it shall remain effective even after the mentioned period of 24 months until party gives one months notice in writing to the other part.

2.3.This agreement can be amended any time within the said period of 24 months provided that any part intending to revoke or amend part of the agreement shall give one month notice in writing giving reasons for revocation or amendment.

2.4. This Voluntary agreement shall remain in force all the time until a new one is lodged to the Labour Commissioner and Signed by both parties.

3.0. EMPLOYMENT:

3.1

It is hereby agreed that more than 80% of the workforce will comprise of permanent employees and that any permanent shall be on monthly: contract and the terms and salary will be as follow:

Probation:

a) Unskilled workers will be under probation of Six (6) months.

b) Skilled workers will be under probation of Six (6) months before being confirmed.

c) After successful completion of probation, an employee shall be confirmed into permanent employment unless there is reason to extend the probation. If this happens, the concerned employee should be informed and the reasons for doing this should be given in writing.

d) During probation, employment may be terminated by either party 24 hours notice or pay in lieu of notice.

e) The employer shall issue a confirmation letter to an employee after successful completion of probationary period.

f) Employment of specific tasks labours will only exist for temporary and emergency jobs and not otherwise.

3.2 Termination of Employment of a Permanent Employment:

a) Any employee intending to cease her/his employment shall give one-month notice in writing or one month salary in lieu of notice unless conditions of employment are stipulated otherwise.

b) The employer shall terminate the services of an employee by giving one-month notice or one month salary in lieu of notice 

unless conditions of employment are stipulated otherwise.

c) Working Hours: Working hour for all permanent employees shall be 45 hours a week (spread over six days of the week). The working hours per day will be from 7:30am to 4:30pm. The break hours will be as follow: 10:00am to 10:30am-Tea while 1:00pm to 2:00pm-Lunch.

d) Should there be periods of no work/interruptions/unscheduled work, for unnotified periods permanent workers shall be paid full Wages for the interrupted hours and the company will deploy them in other duties. For notified periods, work will be deployed to employees at other times and the employees will not forfeit salary (i.e. paid full salaries).

3.3. Overtime:

a) Overtime for entitled workers shall be those in excess of 45 hours in a working week and will either be compensated by time off @ * overtime hours) or be paid at 1.5 times normal basic hourly wage rate where no lime off was given i.e. time off must be given in the same week.

b) Work which will be done on Public holidays will be regarded as overtime and this shall be paid Twice (x 2) the normal hourly rates.

c) Overtime shall be at the discretion of the management. However, overtime should not exceed 12 consecutive hours per week. Workers should have at least 24 consecutive hours for rest per week.

3.4. Labour Conditions and Health and Safety

a) It is hereby agreed that 80% of the workforce will comprise of permanent Employees and that the number of female employees should be equal or more than that of their counterparts.

b) It is hereby agreed that no female employee will be subjected to a pregnancy test as a precondition for recruitment.

c) It is hereby agreed that the employer shall not practice or allow child labour.

d)It is hereby agreed that the employer shall bear responsibility of

protecting the health of workers and that of the environment, hence:

Employer shall establish a policy on OHS and working environment in line with ILO convention No.155 Act 4 and 11.

Employer shall adhere to international standards and Codes of Conduct relevant to cut-flower production.

Employer shall organize work in such away as not to endanger the safety and health of employees.

Employer shall avoid the use of banned pesticides. The employer shall Adhere to TPRI who regulate using chemicals the higher risk Group class 1A and class IB.

Employer shall provide pesticide and safety information to employees in KISWAHILI and that high-risk area such as spraying yard, construction sites shall have optimum supervision.

Employer will maintain a risk register where accidents or any health hazard will be recorded.

Employer shall allow the establishment of OHS committees and shall facilitate their activities.

Employer shall provide functional First Aid Kits at all work sites and that he will prove training to employees.

Employer shall provide free medical service to employees and that regular medical examinations will be provided.

Employer shall provide clean and safe drinking water during working hours at a reachable distance.

Employer will provide Uniforms and Personal Protective equipment (PPE) to its employees.

Employer shall ensure safe disposal of pesticides and their containers.

Employer shall ensure that waste-water is treated or disposed in way that does not endanger employees and the environment.

3.5 SOCIAL ISSUES

a) The employer shall register employees to the social security Scheme. The employer shall also deduct NSSF contribution from the employee terminal benefits.

b) The employer shall have education programmes to its employees and encourage cultural activities in cooperation with surrounding communities.

c) Special measures must be taken to avoid reproductive health risks. In particular, pregnant women shall only perform work which excluded contact with pesticides and other chemicals.

Female employees shall be entitled to maternity leave of three months on full pay on every birth, and a maximum of 4 terms. Annual leave will not be forfeited.

e) Nursing mothers shall be allowed two and a half hours daily for the first three months alter maternity leave, and one hour daily during working hours for feeding their babies for the rest of the months until the baby is one year old.

f) The employer shall provide family planning for all female employees for free on monthly basis.

g) The employer shall organize training with NSSF staffs for all the staffs on how to register their families with NSSF medical scheme.

h) Housing: All employees who are not provided with free

housing by the employer shall be entitled to a housing allowance of Tshs. 25,000/= per month. If an employee is given reasonable housing accommodation and refuses to accept such accommodation for personal reasons, he/she shall not be entitled to a house allowance.

3.6. LEAVE:

a) After completion of 12 months continuous service, a permanent employees shall be entitled to 30 days including public holidays

b) Where employment is terminated after completion of three (3) or more months of service, pro-rata leave shall be given with full pay for each completed month of service in such a period.

c) All permanent employees will receive a leave allowance of Tshs. 17,000/= every years.

d) Employees will be allowed to take full leave every year, however where employee leaves the employment of Kiliflora, his/her leave days not taken shall be paid in cash at the request of employee, instead of taking leave. Maximum encashment shall be 30 days.

e) Compassionate Leave: An employee shall at the discretion of the employer be granted paid compassionate leave, and should not exceed 30 days in one calendar year.

f) Sick Leave: On successful completion of probation an employee shall be eligible for paid sick leave. Employees will be entitled to sick pay in following cases: 

■ as soon as reasonable notify the employer the reason for his/her absence.

■ Produce a medical certificate from a Registered Medical Doctor.

Sick leave shall be 3 months full pay and 3 months half pay in leave cycle for both short and long term Sick Leave (refer below). Regarding sick leave for Long Term Periods, an employee shall not be entitled to such payment unless he/she produces to the employer a certificate of Medical Incapacity certified by a company doctor or a qualified medical practitioner covering the period of sick leave claimed. After expiration of the period prescribed above, the services of the employee may be terminated on medical ground if they comply with section 4.2.1 - Retirement on total Permanent Incapacity.

3.7. BONUSES:

a) The employer shall pay Tshs.10, 000 attendance bonuses for any employee who works for twenty six (26) days. The bonus will not be paid to any employee who is absent for any reason including those on any leave.

b) All other bonuses will be discussed by the management in consultation with the union branch officials.

c) From now the growers bonus and attendance bonus shall be separated. The grower shall be eligible for attendance bonus of 10,000 per months as provided in para A above and production/stems bonus of 12,000/= per month. The rules for production/stems bonus remain the same.

d) The performance bonus for the sprayers shall be separated with attendance. The sprayers shall be eligible for attendance bonus of 10,000/= as provided in paragraph A above and performance bonus of 25,000/= per month. Separate rules for performance bonus shall be provided.

3.8. TRANSPORT:

The employer shall provide three mini buses for Nduruma farm and 5 mini buses for Loliondo farm. For Nduruma the two mini buses will be only for the staffs from town and Moshono. While one mini bus shall be for the staffs residing at Kwa Mrefu, Kambi ya

chupa and Shangarai. The Loliondo mini buses are categorized as follows;- Two mini buses for the staffs coming from Maji ya Chai, One mini bus from Arusha town, One mini bus from Kambi ya Chupa and one mini bus from Tengeru.

3.9. UNION OFFICIALS AND ACTIVITIES:

a) The Employer shall grant union officials leave with full pay while attending union training and other activities. Five (5) union Officials shall be granted up to fifteen (15) days special leave per year with full pay to attend courses, seminars considered to be beneficial to the employee, the union and the employer.

b) The Employer shall adhere to the Employment and Labour Relations Act, 2004 regarding the duties of employers in relation to trade union committees. 

3.10 DISPUTE AND INDIVIDUAL GRIEVANCES:

a) An employee wishing to put forward grievances in which she/he directly concerned shall in the first place report to her/his immediate supervisor and later on to the manager and if still dissatisfied, should be allowed to present it to the Union representative or to the nearby labour office.

b) In instituting punishment to an employee, the employer shall adhere to KilifloraLtd Disciplinary Code and the Labour Laws of Tanzania.

3.11. DEATHS AND BURIALS:

_a) Any permanent employee who dies while in the service of the employer shall be

provided with transport, coffin and Tshs. 250,000/= as condolence to the family of the deceased.

b) If a serving employee loses any of the following through death, Father/Mother/Child/Wife/Husband, she/he shall be entitled to a pay of TSHs 125,000/= However, they should appear in the record of an employee. The employee shall be given five (5) paid days to attend the burial. The employer shall also provide transport for the dead body from mortuary to the burial place, This is only applicable for those living close to the farm and it will depend on availability of the car in the farm.

c) If an employee loses any of the following through death, brother/sister/ grandfather/grandmother/grandchild, the employee shall be given 5 paid days to attend the burial.

3.12 PAYMENT OF WAGES:

Wages shall be paid at the end of the month and should be paid in legal tender.

3.0 LONG SERVICE AWARD

Both parties agree that employees who have rendered good service to their employer for a long period shall be rewarded while at work, with an award, depending on length of unbroken service, as follows:

= One month salary = Two month salary = Three months = Four months = Five months

For the next one year all those who have 10 years and above shall be paid, at the same time those who are between 5 years and 10 years will be paid group by group depending on availability of funds. This will cover only ordinary workers up to the level of supervisors.

This amount will be paid for those who are retrenched/retired. Those who have 10 years and more will be paid even if they resign, and those who resign before 10 years will not be eligible for the long service award.

The employer shall give 10 pieces of iron sheets of 28 gauge for the employee who is retrenched/retires/resigns and has served the company for 15 years or more.

4. OUT OF STATION ALLOWANCE:

Aliy employee who is required to travel on duty away from his/her duty and remain overnight shall be paid:

City Municipal and Regional Headquarters Tshs 50,000
District Headquartersand Smalltowns Tshs 30,000
Villages Tshs 20,000
Incidentals Tshs 10,000
Transit Tshs 10,000

These rates will cover meal allowance and accommodation for the nights spent excluding bus/train/air fares. Excluding those whose contract of engagement requires them to travel away from home. i.e. export drivers who travel outside the country.

However where an employer provides food and accommodation for the employee the employer is not required paying this allowance except incidental expenses.

4.1 RETIREMENT BENEFITS:

In order to reward employees of long and faithful service, and employee who qualified for any of the following reasons:

> Attaining voluntary or statutory retirement age (55 and 60 years respectively)

Shall be eligible for:

a) One month salary times number of years of uninterrupted service (Unbroken period being continuous to Kiliflora Ltd)

b) Calculation will be based on his/her last salary.

> Total Permanent Incapacity Shall be eligible for:

c) Twenty days salary times number of years of uninterrupted service (Unbroken period being continuous to Kiliflora Ltd)

d) Calculation will be based on his/her last salary

e) In case of Total Permanent Incapacity, a certificate from a Registered Medical Doctor must be submitted; however the employer reserves the right to seek further qualified opinions. It is hereby agreed that this allowance will not affect his/her other statutory benefits.

Total Permanent Incapacity, means, the case where the incapacity, reduces permanently the earnings capacity of the employee in every employment.

4.2. RETRENCHMENT BENEFITS:

Any employee who is retrenched due to closure of the company, or major part of the business affecting departments in total, qualifies for; Retrenchment shall be eligible for:

a) Thirty days salary times number of years of uninterrupted Service.

b) Calculation will be based on her/his last salary 

c) Employees who refuse alternative employment are excluded from retrenchment benefits.

Other retrenchments affecting individual person’s operational requirements, and capacity compatibility, i.e. where an individual workers performance does not meet the required standard for that specific position and no other suitable position is vacant in the company or where the employee is not genuinely sick, then:

a)Seven days salary times number of years of uninterrupted Service

b) Calculation will be based on her/his last salary.

4.3. TPAWU SUBSCRITION FEES:

The Employer will deduct from TPAWU member 2% of their monthly salaries subscription fees. If half of the workers are members of TPAWU, then the workers who are not yet members will be required to contribute 2% from their monthly salaries as union service charges. All subscriptions shall be remitted to TPAWU before 7th of the month following the months deductions were made.

4.4. INTERNATIONAL CODE OF CONDUCT:

The employer shall comply with the International Code of Conduct (ICC) that Governs Cut-Flower Industries with respect to health and safety of the employees and the environment.

4.5 MINIMUM WAGE:

Minimum wage payable to the workers shall be basing on the years of service as follows:-

- Workers who have served the farm in less than 1 year get Tsh.103, 000/= -Workers who have served in 2-4years get Tshs.106, 500/=

- Workers who have served in between 5 and 1.0 years get Tsh.108, 500/= and

- Workers who have served for 11 years and above, shall get Tsh. 111, 000

The staffs shall qualify for the increase depending on the year of service without waiting the CBA negotiation.

The supervisors’ salary and other fringed benefits shall never again be discussed in CBA meetings and that they shall be discussed by the management.

4.6 EFFECTIVE DATE AN D DURATION OF THIS AGREEMENT:

This agreement shall be in force with effect from lsl March, 2015 and shall continue to be in force until amended by both parties. Either party desiring to amend this agreement shall give the other party one (1) month notice of the intention to do so.

4.7 LABOUR LAWS:

The two parties have agreed that there is no clause in this voluntary agreement intended to contravene any Labour Laws applicable to the employer or employee, where any clause in this agreement is in dispute with any labour legislation then such clause shall stand to be replaced and hence amend the agreement to read consistent to the law.

ON BEHALF OF KILIFLORA LTD

JERRY GOH

EXECUTIVE DIRECTOR

STEPHEN GEORGE

HUMAN RESORCE MANAGER

ON BEHALF OF TPAWU

MARTHA MWASIfITETE

TPAWU JOINT CHARPERSON

OMARY MSHANA

BRANCH CHAIRPERSON

LOLIONDO BRANCH

KILIFLORA LTD

MELC BEDECK SIMBA

BRANCH CHAIRPERSON

NDURUMA BRANCH

KILIFLORA LTD

TZA TANAPA - 2015

Start date: → 2015-01-01
End date: → Not specified
Ratified by: → Ministry
Ratified on: → 2015-01-01
Name industry: → Agriculture, forestry, fishing
Name industry: → Growing of crops, market gardening, horticulture
Public/private sector: → In the private sector
Concluded by:
Name company: →  TANAPA
Names trade unions: →  TPAWU

TRAINING

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

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 75 %
Maximum days for paid sickness leave: → 180 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: → Yes
Workplace risk assessment on the safety and health of pregnant or nursing women: → No
Availability of alternatives to dangerous or unhealthy work for pregnant or breastfeeding workers: → No
Time off for prenatal medical examinations: → No
Prohibition of screening for pregnancy before regularising non-standard workers: → Yes
Prohibition of screening for pregnancy before promotion: → Yes
Facilities for nursing mothers: → Yes
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: → 30 days

GENDER EQUALITY ISSUES

Equal pay for work of equal value: → No
Discrimination at work clauses: → No
Equal opportunities for promotion for women: → No
Equal opportunities for training and retraining for women: → Yes
Gender equality trade union officer at the workplace: → No
Clauses on sexual harassment at work: → No
Clauses on violence at work: → No
Special leave for workers subjected to domestic or intimate partner violence: → No
Support for women workers with disabilities: → No
Gender equality monitoring: → 

EMPLOYMENT CONTRACTS

Trial period duration: → 180 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
Maximum overtime hours: → 12.0
Paid annual leave: → 30.0 days
Paid annual leave: → 4.0 weeks
Paid bank holidays: → 
Fixed days for paid annual leave: →  days
Provisions on flexible work arrangements: → 

WAGES

Wages determined by means of pay scales: → No
Provision that minimum wages set by the government have to be respected: → No
Agreed lowest wage per: → Months
Lowest wage: → TZS 103000.0
Adjustment for rising costs of living: → 

Once only extra payment

Once only extra payment: → TZS 10000.0 %
Once only extra payment due to company performance: → Yes

Extra payment for annual leave

Extra payment for annual leave: → TZS 17000.0

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Allowance for commuting work

Allowance for seniority

Allowance for seniority after: → 5 years of service

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
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