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MEMORUNDUM OF AGREEMENT BETWEEN CONSERVATION, HOTEL, DOMESTIC AND ALLIED WORKERS UNION (CHODAWU) LSG SKY CHEFS- BRANCH AND THE MANAGEMENT OF LSG SKY CHEFS

1. INTRODUCTION:

We the conservation, Hotel, Domestic, Social Services and Consultancy Workers Union,(CHODAWU) referred to hereinafter as “the Union” and the management of LSG Sky Chefs referred to hereinafter as “the employer”, certify by words and signatures that we have willingly agreed on the following in this collective bargaining contract:

2. RECOGNITION:

2.1 The management recognizes CHODAWU, (the union) as the workplace representatives, representing the entire staff of LSG Sky Chefs LTD

2.2 CHODAWU on the other hand, recognizes LSG Sky Chefs as the only employer who has the authority to employ, instruct and lead all employee’s of LSG Sky Chefs.

3. COVERAGE:

3.1 This contract covers all Union members and is extended to non members, employed by LSG Sky Chefs LTD.

3.2 This contract does not cover the employees who are employed as, temporary contract, senior management and Middle management employees. These (Members of Senior and Middle Management) can be Members and contribute to the Union, but shall not be part of the bargaining unit. This clause remains valid pending discussion with the members of middle management. After the discussion and agreement, the addendum clause will be added.

4. EFFECTIVE DATE AND DURABILITY OF THIS CONTRACT:

4.1 Both Parties agree that this contract starts effective 01 April 2012, and will last up to 31 March 2014. Any party that wishes to change any of the contents of this contract must give the counter part one month prior notice and the reasoning behind. The proposed change(s) will be subject to discussion between the Parties to this contract.

4.2 These changes will be amended upon renewal of this contract.

4.3 The contract will expire upon substitution by new contract properly signed by both parties and registered by the Labour court, otherwise it will be respected.

4.4 It was agreed that all future contracts will start from the 01 April of any given year.

5. EMPLOYMENT STATUS:

5.1 Employees of LSG Sky Chefs will be paid on permanent or fixed term contract basis after the probation period. An employee will be on probation for three months before permanent or fixed term employment contract.

5.2 Temporary employment shall not last more than three months of employment and should only be for emergency situations. Those on fixed term contract, hired for specific assignment requiring special skills are not subject to this provision. The duration and end of their assignment depends on the pre-agreed commencement and expiry dates.

5.3 Staff that are promoted will be on a probationary period for three months. On completion of the probationary period the promoted staff will be evaluated by Management and if successful they will be entitled to a salary review. If the promoted person does not successfully complete the probationary period, then he/she will be reinstated back to his/her previous position.

6. ACTING ALLOWANCE

6.1 When an employee is required to temporarily act in a position different to his job description, an acting allowance will be payable as per Managements discretion, provided that the Employee takes total responsibility for the post over a period of not less than ten (10) days. This arrangement should be agreed upon in writing between the Employer and Employee in advance.

7. TERMINATION

7.1 In any event of termination, the following should be considered:

Time in employment: Termination Notice: Payment in Lieu of notice

Six month and above Two month Two month

7.2 Terminated staff will be entitled to receive the following benefits:

a. One month salary for every completed year in service.

b. Transport of his/her family (him/her, wife, Husband and four children under twenty one years of age provided they are still at school, recognized by the employer, to the domicile.

c. Transport of belongings not more than five tons.

d. Other statutory terminal benefits as prescribed by law.

7.3 An employee wishes to stop his / her employment will follow the terms as per CAP 7.1 of this contract.

8. RETRENCHMENT

8.1Both sides agree on punctuality and responsibility of restricting existing workforce to retrenchments.

8.2 Retrenchment should take place after the management of LSG Sky Chefs consults the CHODAWU branch and regional level for solution other than retrenchment.

8.3 If the solution as in CAP 8.2 fails, the FILO system (first in last out) shall be applied.

8.4 Retrenched employees shall receive first preference should a position become vacant within the first six months of retrenchment.

8.5 The retrenched employees will be paid as follows:-

a. One month salary for every completed year in service.

b.Transport of his/her family (him/her, wife, Husband and four children under twenty one years of age provided they are still at school, recognized by the employer, to the domicile.

c.Transport of belongings not more than five tons.

d.Other statutory terminal benefits as prescribed by law.

9. SALARY AND SALARY INCREMENT

Both Parties have agreed on 40% increment over the next two years. Following this agreement the minimum wages will be as follows:

9.1 For new employees and those on probation, the salaries will be as follows:

Basic salary: Tanzania Shillings 400,000.00

Housing allowance: Tanzania shillings 20,000.00

Transport allowance: Tanzania shillings 10,000.00

Total: Tanzania shillings 430,000.00

9.2 Minimum salary for all staffs (after probation) will be as follows:

Basic salary:Tanzania Shillings 570,000.00

Housing allowance: Tanzania shillings 30,000.00

Transport allowance: Tanzania shillings 10,000.00

Total: Tanzania shillings 602,000.00

9.3 Salaries for all other employees will be upgraded based on such factors as: positions held in the organization, number of years in service, performance rating and qualification. Therefore, the exact percentage increase for each Staff will depend on the above factors.

9.4 Salary increase will be once in two years time and will commence on the 1 April of each year

9.5 All future increments will depend on the employer’s business performance and Country’s economic performance, e.g. inflationary rates. Should the official inflation of April 2013 be above 18%, Management undertakes to do a salary adjustment to counter the effect of this (ie. If the inflation rate will be 21%, the management will give a difference of 3% on the 01 April, 2013. If the inflation rate will be below 18%, no increase will be given on the 01 April, 2013.

9.6 Bonus may be paid to employees based on company’s business and individual performance at the end of each year after management and union consultation.

10.WORKING TIME

10.1 LSGSkyChefs operation has seven working days per week. Working hours per week is forty hours only. It was agreed that Management should implement this without increasing the current manpower structure. Holidays and public holidays recognized by the government will be off days.

10.2 Extra time exceeding forty hours per week will be compensated with equal time off or payments depending on agreement between employee and Supervisor. Payments will be calculated as follows:

Working days: x 1.5 salary per one hour.

Holiday as per CAP 10.1 in this contractx 2 per one hour salary.

The law restrictions will be applicable in terms of excessive overtime.

10.1 Both sides agree to create strategies for the good result of the company LSG Sky Chefs and give training to the employees on economical strategy and their responsibility to boost the company’s income.

10.2 We agree that competent staff can create goals on implementation and come up with acceptable business plans.

10.3 Night Work Allowance: An Employee shall be paid 25% of his/her per hourly wage for each hour worked at night between 20h00 and 06h00.

11.RETIREMENET

We agree that the retirement age will be sixty years (60). An Employee who has been diagnosed unfit for work by the Company Physician recognized by the Government will be categorized as being terminally ill and therefore will qualify for Early Retirement

An employee ready for retirement has the right to receive six months notice in writing.

12.GRATUITY

12.1 An employee retiring according to CAP 11.0. will be paid thirty percent (30%) of His/ Her annual salary of his/her retiring year in service.

12.2 Retired staff will be paid all his statutory terminal benefits together with transport as outlined here below:

a. One month salary for every completed year in service.

b. Transport of his/her family (him/her, wife, Husband and four children under twenty one years of age recognized by the employer, provided they are school going, to the domicile.

ANMEXURE 1

Curr Min Less than 5 Yrs

(Entry or Min level)

From 5 Yrs but Less than 10 Yrs From 10 Yrs but Less than 15 Yrs From 15 Yrs but less than 20 years 20 years +
Sous Chefs, Trained Technicians,

Specification and Prodn Admin

600,000.00

840,000.00

889,910.00

939,820.00

1,008,910.00

1,078,000.00

Jnr. Sous Chef 570,000.00 798,000.00 848,330.00 898,660.00 967,330.00 1,036,000.00
Snr.Supervisors (Incl. snr. Chef D'partes 550,000.00 770,000.00 820,610.00 ^71,220.00 939,610.00 1,008,000.00
Supervisors (Incl. Chef De Partes), store kprs(Snr), Bond Assistants,Hygiene 500,000.00 700,000.00 751,310.00 802,620.00 870,310.00 938,000.00
Senior Catering/Pastry/Tray Set Ast, Snr Steward, Snr.Drivers. 460,000.00 644,000.00 692,440.00 740,880.00 804,440.00 868,000.00
Catering/Pastry/Tray Set Ast/Driver/Steward/Equipment Packer/Gardener,Aircraft loaders,store keeper 430,000.00 602,000.00 644,000.00 686,000.00 742,000.00 798,000.00

JOB TITLES/ CATEGORIES

IMPLEMENTED EVERY TWO YEARS ON THE 01 APRIL

LSG Sky Chefs - 2012

Start date: → 2012-04-01
End date: → 2014-03-31
Ratified by: → Ministry
Ratified on: → 2012-04-01
Name industry: → Hospitality, catering, tourism
Name industry: → Other food service activities
Public/private sector: → In the private sector
Concluded by:
Name company: →  LSG Sky Chefs
Names employers: → 
Names trade unions: →  Conservation, Hotel, Domestic and Allied Workers’ Union (CHODAWU)

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: → 40.0
Working days per week: → 7.0
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: → No
Adjustment for rising costs of living: → 0

Wage increase

Wage increase: → 40.0 %
Wage increase starts: → 2013-01

Premium for evening or night work

Premium for evening or night work: → 125 % of basic wage
Premium for night work only: → Yes

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
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