COLLECTIVE BARGAINING AGREEMENT BETWEEN UGANDA BREWERIES LTD AND UGANDA BEVERAGES, TOBACCO AND ALLIED WORKERS UNION (UBTAWU) (FY23) 2022/2023 AND (F24) 2023/2024

1.0 INTRODUCTION

1.1 Memorandum of Agreement

This Memorandum of Agreement of Terms and Conditions of Service is between Uganda Breweries Limited (hereinafter called the Company) and the Uganda Beverages, Tobacco and Allied Workers Union (hereinafter called the Union) and shall be applicable to all permanent unionisable employees. This agreement was made on the 6th of December 2022 and is to be effective from the 01 July 2022.

1.2 Duration of Agreement

This agreement shall regardless of the date of signature hereof, be deemed to have commenced on 1st July 2022, unless where otherwise specified and shall remain in force for a period of two years from the date thereof.

Notice of thirty (30) days shall be given by either party to the other in writing of its desire for this agreement to continue in force for a further period or of its intention to terminate the agreement or to amend any clause in this agreement. Such notice will be given after six (6) months have expired from the date this agreement comes into force.

Where the parties wish to amend this contract, they should engage in good faith negotiations.

Where the parties desire to continue to be bound by this agreement but they do not conclude negotiations for renewal before its expiry, the present agreement shall continue in force until the negotiations are finalized.

2.0 EMPLOYMENT

2.1 Medical examination

As part of the compliance requirement of Public Health and Safety; each recruit for employment shall be required to undergo a medical examination conducted by a doctor appointed by the Company to determine medical fitness for employment prior to being effectively employed.

2.2 Eligibility

Employees from grade 7D to grade 7A are fully covered by the terms and conditions of this CBA.

2.4 Payments

All employee payments shall be made via the payroll and shall be subject to statutory deductions like NSSF, PAYE, LST .conform to the !egal/tax requirements of Uganda Revenue Authority; only in exceptional situations where reimbursements are due and where staff members have to travel, such money may be advanced to the employees through the payments team in finance.

2.5 Variation

Management will review roles on a regular basis based on existing organization design principles. Roles will be transitioned after a joint evaluation process involving management & union representatives. Management shall share design principles within 2 months.

2.6 Hours of Work

The basic hours of work shall be one hundred eighty (180) hours per month translating into forty-five hours (45) per week. The company will, where possible and practicable considering the work requirements, make arrangements for the forty-five (45) hours to be covered between Monday and Friday.

Normally, for the general shift workers in the brewery, the standard working week exclusive of meal times and tea breaks shall be eight (8) consecutive hours per day from Mondays to Fridays (8am - 5pm). Saturday and Sunday shall remain special days. However, to encourage flexibility in working hours, general shift workers may be called upon to work beyond the recommended 8 hours per day. For any hours worked above the recommended one hundred eighty hours (180) per month, the employee shall earn normal overtime pay.

For shift workers the standard working week inclusive of meal times and tea/coffee breaks shall be twelve and a half (12.5) consecutive hours of work every 24 hours from Monday to Sunday. Saturday and Sunday shall be treated as normal working days.

For the 12.5-hour shift system, the following arrangements will apply; 3 Crew x 12.5 hour shift system.

Shift patterns including the number of working days in the week will change from time to time to reflect production seasonality as will be agreed between management and union.

Any pattern change in future shall be discussed and agreed on between the management and Union.

Shift changeover for the morning and evening shifts shall be at 7.15 a.m. and 7.15 p.m. respectively.

Shift workers shall on off-days be available when called upon for training and/or for emergencies.

Shift workers shall on off days when called upon for training be compensated with special overtime at two (2) times their basic rate of pay. They shall be paid a minimum call out equivalent to 4 hours.

The mode of employee’s attendance recording agreeable by both parties is mandatory for all employees. This shall be the official mode of calculating Overtime, Mileage and any other allowance.

2.7 Meal breaks

Meals and coffee/tea breaks shall be considered as working time to ensure flexibility; as such the company shall pay for these breaks.

2.8 Overtime

The Company shall have the right to call upon employees to perform work in excess of the normal working hours provided reasonable notice is given where reasonably practicable.

For hours above 180, on normal working days the company shall pay employees overtime equal to one and a half (1.5) times the basic rate of pay.

On special days, emergency days, off days and gazetted public holidays, the Company shall pay employees overtime equal to two (2) times their basic rate of pay.

2.9 Union check off

Every employee covered by this Agreement, who is therefore a member of the Union, shall pay such union dues as shall be indicated by the union and the Company shall deduct the dues from Salaries/wages.

2.11 Mission Incentive and other Award Incentives

When the company achieves Missions as set out every financial year, the company may at its discretion pay out a Mission Incentive as stipulated. For any non-cash benefits, the tax element shall as much as is reasonably possible be structured in a way that does not affect the employee’s payout. Management will communicate any such awards where deemed appropriate.

3.2 Service Increment

The company shall pay/give a shift slide scale of 3% to all grades effective 1st July 2022 for FY23 and 1st July 2023 for FY24. This service increment applies to employees who will have served for more than a year in the business.

All employees that will join the business, or who will be promoted from one grade to another after 30th June 2022, will be given a salary equal to the entry point of their (new) salary grade.

3.3 Shift Allowance

Employees scheduled to work on the 12.5-hour shift shall be paid a shift allowance.

In F23 and F24 all unionisable employees will be paid a shift allowance of two hundred and thirty thousand shillings (UGX. 230,000) only per month.

3.4 Leave travelling

Employees proceeding for annual leave shall be paid Uganda Shillings One million and two hundred thousand shillings (UGX 1,200,000 taxable) from 1st July 2022 for F23 and F24.

For purposes of this payment, all such leave shall be taken in full-30 days and the same applied for and approved in the system by the employee’s line manager.

3.5 Lunch allowance

Employees who execute their duties out of their duty stations during the day shall be paid Forty thousand Uganda shillings only (40,000) per day for both FY 23 and FY 24.

3.6 Acting allowance

All issues pertaining to acting in a role other than their own role shall be valid after an employee takes over the role for a period exceeding one (1) week and shall be defined in the letter of appointment into acting capacity that will be issued before one starts acting.

All employees acting in a role higher than their current role will for every completed month in such acting position be paid one month’s basic salary as acting allowance. Such an allowance will be payment in lieu of any other benefits the.Union member would ordinarily be entitled to in the course of such (acting position) assignment. The other benefits accruing from the original role/position shall, however continue to apply. Where the acting period is less than 1 month, the acting allowance shall be prorated according to period acted.

If an employee acts in a vacant position for two (2) months, he/she shall cease to act in such a position and the position will be advertised as per the company policy.

4.0 MOTIVATION

4.1 Promotion

As per Company recruitment policy, all vacancies shall be filled according to the company’s recruitment policy. Staff with the reguisite skills and training shall be invited to apply. The payments for such positions shall be defined within the Company and CBA reward framework. Promotions shall be at management’s discretion and reward will be based on performance, capability and salary bands.

4.3 Company Sponsorship

The UBL Education policy defines the framework under which an employee shall receive education assistance. Such policy guidance can be accessed on the Diageo One Website on Mosaic as defined in the Employee Sponsorship policy.

4.4 Recognition Reward Scheme

Reward and Recognition is governed by the Company framework that spells out such awards that are functional and perfect. UBL management shall afford such employees that merit recognition, the relevant mementoes and incentives.

4.5 Long Service Award

The company shall award a certificate of recognition to employees who will have served the business consecutively and completed 5yrs, 1Oyrs, 15yrs, 20yrs, 25yrs, 30yrs, 35yrs and etc.

All employees in the above categories will be entitled to a certificate of recognition.

Such employees in the different categories will be entitled to;

5.0. TRAVEL ALLOWANCES AWAY FROM BASE

5.1 Night (Safari)

Employees traveling and spending the night away from their stations of duty on official duties shall be paid Uganda Shillings two hundred fifty thousand shillings (UGX 250,000 net) only per night. This will cover all expenses and accountability shall be required. This applies in F23 and FY 24. 

5.2 Travels within East Africa

Employees traveling outside Uganda but within East Africa on official duties shall be paid USD 150 only per night for all union grades. However, there shall be a subsistence allowance of USD 50 dollars that will not be accounted for but taxed through payroll. Accountability shall be required for the USD 100 as per the RE Policy

5.3 Travels outside East Africa

Employees traveling outside East Africa on official duties shall be paid at Management’s discretion depending on destination and nature of assignment. An out-of-pocket allowance of USD 50 will be paid per night that will not be accounted for but taxed through payroll.

5.4 Safari Allowance for Assignees/Temporary transfer

Transfers are at management’s discretion and for the primary purpose of business performance with consideration for developing capability.

All transfers outside Uganda shall be governed by the relevant Policy and procedures stipulating accommodation; maintenance allowance; travel and other immigration requirements.

5.5 Settling allowance

If an employee is permanently transferred to a new station or back to Head Quarters, he/she shall be given an additional Allowance as follows: -

1. Where there is no Company House, one shall be given a Housing allowance for three months
2. Where there is a Company House, one shall be given the equivalent of Housing allowance for one month
   
3. Transport shall be provided for the family and property.
   

In case of permanent transfer, where an employee is expected to leave in any other East African country, an allowance as defined in transfer/Global Mobility Policy will be paid.

6.0 LEAVE

6.1 Annual Leave

The Company policy defines in detail the leave entitlements and segmentation. Due care has been taken to ensure that the labor laws are adhered to. Examination Leave shall be provided to approved training/schooling program sponsored by the company in agreement with the Line manager. Study leave is part of the annual leave. However, exam days for Approved Courses shall not be part of annual leave. The other provisions of leave are provided for in the Company Leave policy.

All employees shall after each completed year of service, proceed on leave of thirty (30) calendar days. As far as possible, employees will be granted leave on the due date, and the Company will arrange leave rosters accordingly.

In the case of termination of service, if an employee has leave balance due to him/her, such an employee shall be paid in lieu based on 100% basic monthly salary.

Travelling allowance shall be paid with the mid-month advances in the month that the employee is going on leave.

Employees and/or the company may not carry forward leave days from one fiscal year into the next unless deferred in writing. However, in the event that the company or employee is deferring leave, it must be taken within the first three (3) months of the next fiscal year.

Leave Allowance shall not be accumulated from year to year and proportionate Leave allowance shall not be paid to any such employee.

6.5 Compassionate Leave

Granting of leave of absence other than annual, maternity, paternity, sick leave is at the sole discretion of the Company. Such leave may be granted on terms the company shall determine at its absolute discretion.

6.6 Study Leave

An employee shall be entitled to not more than 16 days in a financial year for study leave. Study leave shall be applicable to candidates pursuing both internally organized courses E.g. IBD, KRONES, etc. and externally arranged courses e.g. Certificate, CD, HD, Bachelors, Masters, etc. with Line Managers’ consent. Such leave shall be deducted from annual leave days available in the financial year in question.

Employees shall agree work schedules with their line managers in line with the examination timetable.

Notwithstanding anything contained herein, if an employee has been admitted for study in an overseas institution, relevant policy guidelines in Human Resources manual shall apply.

6.7 Sick Leave

Any absence from work due to illness shall be permitted without loss of pay; provided that such an employee has been absent due to sickness for not more than three (3) working days. In any such circumstances where such an employee is absent due to illness for more than three working days, he/she shall be required to produce a medical certificate signed by the Company Clinic/Dispensary or a recognized Medical Officer/Personnel certifying the employee was unfit for duty during the period of absence.

A phone call is a formal requirement to inform Management of the sickness to enable a replacement to be appointed in ample time.

Upon recovery, the employee shall be required to provide a medical certificate within three working days.

In the event of absence from work due to illness not caused by the employee’s fault or neglect, and subject to a medical Certificate issued by a recognized Medical Officer, the following sick leave may be granted once in a year.

Up to three (3) months' illness, the employee will receive full pay.

Beyond three (3) months’ but less than six (6) months of illness, the employee will receive % of full monthly pay.
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However, an employee will not be allowed to return to work until he/she has presented a certificate of clearance signed by the approved medical authority who recommended leave of absence.

Any payment beyond the specified times shown above shall be at the sole discretion of the Company.

7.0 OCCUPATIONAL HEALTH & SAFETY

7.1 Committees

The Union shall be represented on the Occupational Health & Safety Committee and on the Uniform Committee by two members who will be eligible to contributing to decision making during the committees’ deliberations.

7.4 Identity cards.

The Company shall provide identity cards to all its employees and each employee will be required to wear the identity card while on Company premises. Should an employee lose an identity card, the company shall replace it at the employee’s own cost. This expense may be defrayed from the employee’s salary. This provision shall with necessary modifications, apply to clauses 7.2 and 7.3 above.

7.5 Accident / Incident handling procedure.

Every reasonable effort shall be made by the company to reduce accident rate, environmental preservation and good housekeeping.

All safety incidents and accidents shall be handled as defined in the Group/Company Health safety policy and a Union representative shall be part of the committee constituted.

We will have a Union representative during the vetting process and the quarterly performance review meetings.

9.0 PSYCHOSOCIAL SUPPORT

9.1 Alcohol and drug dependency

As part of our commitment to ensure that all staff work in a safe environment; all employees are prohibited from entering company premises under the influence of alcohol. Any employee in breach of the foregoing shall be in breach of company policy. The relevant sanctions and penalties as defined in the employee Alcohol and drug dependency policy shall apply.

Without prejudice to the above; any employees who shall be identified to have an alcohol dependency problem; shall be rehabilitated as defined under the company medical and Alcohol and drug dependency policy. The Union leadership shall closely monitor and volunteer such information as can be useful in stemming any alcohol and drug dependency syndrome.

10.0 CREDIT ACCESS

10.1 Bank Loans

Bank loans are an individual undertaking with the bank; the company may issue referral letters to such employees. All employees shall at all times not commit more than 40% of their net income to debt (Bank Loans) and 15% for development items from SACCO.

10.2 Disposing off of used company items/properties

Should the company intend to dispose of any company items/property by way of auctioning or for free, the company shall give employees the first priority (primary opportunity) to compete in that process; after which competition will be open to third parties or non-employees.

11.0 LEAVING THE COMPANY

11.1 Notice period

Employees who have completed their probationary period and have been confirmed in their jobs shall be required to provide notice as per section 58 of the employment Act as detailed below;

• More than 6 months but less than a year, 2 weeks’ notice or Salary in lieu of notice
  
• More than a year but less than 5 years, one month’s notice or Salary in lieu of notice
  
• More than 5 years but less than 10 years, 2 months’ notice or Salary in lieu of notice
  
• 10 years and above, three months’ notice or salary in lieu of notice.
  

11.2 Dismissal from employment

Dismissal from employment, shall be governed by provisions of the Employment Act 2006 and the applicable disciplinary code of conduct of the company.

11.3 Redundancy

Should it become necessary for the employer to dispense of service (s) of its employees for reasons of redundancy, there shall be no consideration of either membership or non-membership of the union.

For the purpose of this clause, redundancy shall mean 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. Such deferred jobs disappear with no immediate replacement.

The Company shall give three (3) months’ notice of this intention or payment in lieu of such notice.

When any major redundancy situations arise, the Company shall discuss with the Union the problems involved, selection procedure, self-retirement acceptance, alternative employment offers and giving of company recommendations.

Major redundancy is defined as that affecting more than three (3) employees at the same time and in the same place of work.

In the event of termination of service of an employee through reasons of redundancy the following payments shall be made.

11.4 Retirement benefits

An employee may opt to retire after attaining the age of fifty (50) years, also may retire or be retired by the company after being declared medically unfit to perform his/her duties. Age determination shall be as per NSSF records/HR advice and ability to be productive as may be assessed by the company and Union.

An employee may also retire after serving the company for 20 years continuously.

Where an employee is retired as above the following retirement benefits shall apply:

11.5 Voluntary Retirement Benefits

An employee may opt to retire voluntarily after serving the company for 15 years continuously. In this case, the employee shall get 50% of the benefits enjoyed by employees retiring on attaining the age of 50 years as per clause 11.4.

In addition, such employees shall be entitled to:

1. Full transport back home @ UGX. 12,000 per KM for FY23 and F24
   
2. Shared save option contribution.
   
3. Payment in lieu of any outstanding leave days based on 100% of the monthly salary
   
4. Own and company contributions to the provident fund. 
   
5. Certificate of service/Recognition.
   

11.6 Death benefits

When an employee dies, the Company shall provide the following;

1. Where the employee dies in the course of duty, the Benefits shall be 5 years wages as per the Worker’s Compensation Act.
   
2. In line with company policy, Uganda shillings four million (UGX 4,000,000/=) payable to the family only to cover all expenses. (Cover treatment and preserving the body).
   
3. Transport of the remains of deceased employee to the burial place (use funeral service scheme)
   
4. Transport and facilitate (lunch allowance) 10 staff to attend the burial for distances outside the employee’s work station
   

Owing to internal requisitioning policies, it is understood that this money may not be availed before the funeral.

When an employee’s registered spouse or dependents (up to six) dies, the Company shall provide;

1. In line with company policy, Uganda shillings four million (UGX 4,000,000/=) to the family to cover all expenses, (cover treatment and preserving the body, transport for the body to the burial grounds (use funeral service scheme)
   
   
2. Transport and lunch allowance for 10 staff to attend the burial for distances outside the employee’s work station
   

Owing to internal requisitioning policies, it is understood that this money above may not be availed before the funeral.

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APPENDIX III: SIGN OFF

Signed for and on behalf of the Uganda Beverages, Tobacco and Allied Workers Union by the General Secretary: