COLLECTIVE AGREEMENT BETWEEN SAE POWER LINES S.R.L. - GHANA OPERATIONS AND THE CONSTRUCTION & BUILDING MATERIALS WORKERS’ UNION OF THE GHANA TRADES UNION CONGRESS (GTUC)

PREAMBLE

This Agreement to be effective 1st day of March 2011 is made between SAE POWER LINES s.r.l., GHANA OPERATIONS (hereinafter referred to as the EMPLOYER) and the CONSTRUCTION & BUILDING MATERIALS WORKERS UNION officially certified under the Labour Act 2003 (Act 651) (hereinafter referred to as the UNION), negotiating with employers on all matters connected with the employment or the non-employment or with the terms of employment or the conditions of labour of any of the employees for whom the Union is certified to negotiate.

It is also the purpose and intention that should any disagreement arise between the Employer and the Union, the parties will immediately take steps to settle such disagreement as outlined in Clause 28 of this Agreement.

PERIOD OF AGREEMENT

This agreement shall be in force up to 28th February, 2013.

Either party may give one calendar month's notice in writing of its desire to either to continue the Agreement for a period to be agreed upon by both parties at the time, or of intention to terminate the Agreement, providing that the Agreement shall continue to be in force from year to year in the absence of notice given by either party of intention to continue or terminate the Agreement.

Notwithstanding the provisions of the duration of the Agreement, where there are Government directives during the term of this Agreement the parties shall, if considered necessary, meet to discuss any possible amendment to the existing Collective Agreement.

WAGE OPENER CLAUSE

The duration of the Collective Agreement shall be for a period of twenty-four 24 months with implementation of Wage Opener clause after twelve (12) months.

CLAUSE 1 : RECOGNITION

The Employer recognizes the Union as the appropriate representative to conduct collective

bargaining on behalf of its members.

CLAUSE 2 : RESPONSIBILITIES OF PARTIES TO THE AGREEMENT

a .The purpose of the agreement is to promote mutual co-operation and understanding between the Employer and the Union and to set forth herein basic rates of pay, hours of work and other conditions of service.

b. It is also the purpose and intention that should any disagreement arise between the Employer and the Union the parties will immediately take steps to settle such dis-agreement as outlined in clause 28 of this Agreement.

CLAUSE 3 : EMPLOYMENT PROCEDURE AND PROBATION

1a. Employment procedures shall be in accordance with the Labour Registrations Act currently in force.

b. On engagement the following shall be recorded in the Labour Cards of all Employees - Grades and Initial scale of Wages/Salaries.

3. If an Employee is declared redundant during probation period and is re-hired within a period of 6 months, in the same position, the days worked prior to the time he/she was declared redundant shall be credited to him/her to determine completion of his/her probationary period.

4. Any ex-employee who had satisfactorily been employed and is being re-engaged for the same duties need not be put on probation.

CLAUSE 4 : UNION SHOP UNION STEWARD

a. The Employer shall recognize the right of the Union to designate Shop Stewards to handle such Union business as may from time to time be delegated to them by the Union and other matters pertaining to this as laid down in the Labour Act 2003 currently in force.

b. In the case of the necessity for the termination of employment of a shop Steward, for any reason whatsoever, contact will be made with the Union before dismissal takes effect.

c. In the case of the necessity for the transfer of the Branch Secretary or branch Chairman, shop steward or local union official, a copy of the letter transferring him will be sent to officer in charge of the Local Union in the region where the transfer is taking place.

d.In the event of redundancy exercise affecting workers of the same qualification the Union official should be among the last group to be declared redundant.

CLAUSE 5 : UNION NOTICE BOARD

The Union is at liberty to erect or construct a notice board on the premises of the Employer for the purposes of putting up notices of the Union meetings, Educational and Social Activities and Agreements concluded between the Employer. The location of the notice board will be agreed between the Union and the Employer.

Only the issue stated above shall be placed on the notice board.

CLAUSE 6 : CHECKOFF

1. Every Employee covered by this Agreement shall be deemed to be a member of the Union dues levied against all members of the Union.

2. The Employer undertakes to make deductions from the wage/salary of all employees covered by this Agreement in accordance with Section III of Labour Act 2003 (Act 651).

3. Any sums, so deducted, shall be paid over as directed by the Trade Union, not more than one month after the date on which wage/salary was paid.

CLAUSE 7 : PERMISSION FOR UNION MEETINGS

1. The Employer agrees that the Union is permitted to gather its members who are its Employees for Union meetings provided that the Employer's permission for each meeting has been obtained 24 hours before such a meeting is scheduled and that such meeting or gathering shall not

i. damage any property of the Employer

ii. be held during official duty hours (except with the Employer's permission)

2. The Employer reserves the right to recover the cost of tables and chairs and any other articles damaged by the Union.

3. The Employer shall allow representative and / or officers of the Branch Union, on working days, to attend meetings of the Union provided that the Union notifies the Employer of this request at least seven days before the date of such meeting and stating the names of the employees to be permitted to attend except in the case of emergencies in which case twenty-four (24) hours notice will be given.

4. The Employer shall allow a Branch Officer or representative of the Union up to an aggregate of 20 man days per year to attend Union meetings. However any expenses so incurred shall be borne by the Union.

CLAUSE 8 : ADMISSION OF UNION REPRESENTATIVES

It is agreed that the representative of the Union from the Headquarters as well as the Branch be admitted to the premises of the Employer for the purpose of investigating grievances or transacting business with the Employer after all previous negotiations of the sub-committee of the Employer and the Union have failed. Such representatives shall not interfere with the productive work of any employee without the permission of the said employee’s manager or his representative.

CLAUSE 9 : CREATION AND CLASSIFICATION OF NEW JOBS

Any question relative to the classification of new trades, rates and occupations will be settled by the Employer and the Union. Reference will be made to the office of the labour department in case of any doubt or in case where no agreement is reached.

CLAUSE 10 : HOURS OF WORK

CLAUSE 11 : OVERTIME

ii. Overtime worked on Saturdays will be calculated as :

Normal hourly rate * 1.50

CLAUSE 12 : PROVISION OF SHELTERS

It is agreed that shelter shall be provided by the Employer on roads and building works at vantage points on such projects for use of the Employees against rain and as rest places during noon breaks. These shelters would also be used by the Employees during their breaks while on the site. These shelters would be equipped with benches and tables.

CLAUSE 13 : TIME LOST THROUGH CAUSES BEYOND THE CONTROL OF THE PARTIES

Conditions regarding this clause shall be in accordance with sub clause 4 of executive instrument 34 - daily rated workers (minimum remuneration) instrument, 1966, as follows

"The Employer shall pay to each worker the full minimum remuneration for each day for on which such worker attends work whether or not wet weather prevents him from carrying on his normal work and whether or not it is possible to arrange alternative work for him on such a day".

CLAUSE 14 : PAY DAYS AND TIME

1. Pay days shall not be later than the first working day of the following month. Any changes desired shall however be negotiated between the Employer and the Union.

2. If payment has not started within the end of the working day, then the Employees shall be paid for the waiting time at the over-time rates applicable.

CLAUSE 15: PAY ROLL RECORDS

The Employer shall keep records of remuneration made to the employees and shall be signed or thumb-printed by the workers during payment of such remuneration as may be due monthly to them.

CLAUSE 16 : CLOTHING, SAFETY & HEALTH

a) The Employer shall provide uniforms to all its Employees, including Office Staff twice in the year (once every six months) from the date of employment but on confirmation of appointment. The modalities are spelt below: -

i) Office Staff

1 pair of trousers (every six months)

2 pieces of shirts (every six months)

1 pair of shoes (every six months)

ii) Field Workers

2pairs of trousers (every six months)

1 T' shirt & 2 shirts (every six months)

1 pair of boot(every six months)

b. Uniforms so provided shall be used on duty.

c. Field workers' uniforms shall differ from that of Office Staff and Secretaries (females).

d. Two bars of soap or equivalent amount every month.

The Employer shall provide adequate and necessary protective clothing to employees as follows:-

a. rain coats shall be provided for all field & security workers on duty.

b. masks, aprons, helmets and other appropriate protective clothing shall be provided to eligible workers

c. torch lights for all night watchmen on duty

d. devices so provided shall remain the property of the Company

e. Anti-Bee protective clothing for bush-clearing team.

3. The Employer shall provide first aid facilities at all areas where the Company's work is in progress

4. JOINT SAFETY COMMITTEE

b. Where the W.C. Law, currently in force, is not applicable, Union and Management shall meet to determine compensation to be paid. In the absence of any agreement being reached, the Union will refer the case to the appropriate authority.

c. In all cases of payment of Workmen's Compensation by the Employer, a Union representative shall be present.

d. The Employer may offer an alternative job to an incapacitated employee whose incapabilities were due to injuries he/she sustained in the course of his/her duties.

CLAUSE 17 : FUNERAL GRANT

CLAUSE 18 : CANTEEN, BATH AND CLOAKROOMS

1. CANTEEN

1. In all permanent workshops and offices, reasonable accommodation shall be provided by the Employer to be used as canteen by the Employee. All canteens shall be in accordance with Factories Ordinance.

2. BATH AND CLOAKROOM (INDOOR EMPLOYEES)

Conditions regarding bath and cloakrooms shall be in accordance with the Factory Ordinance.

CLAUSE 19:ANNUAL LEAVE

2. TRAVELLING DAYS

a. Employees proceeding on leave to and from the Northern and Upper Region to the South, shall be entitled to 2 days travelling time in and 2 days out. All others shall be entitled to one day in one day out.

b. Transferred employees shall be entitled to transport allowance from their station & back.

3. Leave may be interrupted at any time as the exigencies of the service demand and the Employees shall return to work before expiration of leave. An Employee whose leave is thus interrupted would be allowed to take the remaining leave on completion of required assignment or be paid.

Any expenses incurred in respect of transport shall be borne by the Employer.

4. On leaving the service of the Employer, the Employee shall either be granted all leave earned or commute such leave to cash.

CLAUSE 20 :MATERNITY LEAVE

CLAUSE 21: CASUAL LEAVE

CLAUSE 22 :PUBLIC HOLIDAYS

Public holidays shall be in accordance with the Holidays Act currently in force.

CLAUSE 23 : ABSENCE DURING WORKING HOURS

An Employee who has normally mounted duty shall not leave his/her place of duty or the premises of the employer where he or she works without the prior permission of the Employer or departmental head.

Any Employee found contravening the provision of this clause may be suspended without pay for two (2) days.

CLAUSE 24 : TOOL ALLOWANCE

The company shall supply adequate and necessary tools for efficient performance of work and the worker shall on his part take proper care of tools provided.

CLAUSE 25 : ACTING ALLOWANCE

1. Where a salaried Employee performs the full duties of a post in a higher classification, he will be paid an allowance equivalent to the difference between the Employee's current salary and the minimum salary for the grade in which he/she is acting.

2. No employee will be eligible for acting allowance unless he/she has continuously carried out the duties of the post in the higher grade for not less than 20 working days excluding Saturdays and Public Holidays. The allowance will be paid in lump sum at the end of the period. An employee who performs the duty in a higher post for at least three months and who under normal circumstances would have become eligible for consideration to fill the vacancy exiting in the grade in which he/she is acting may be considered by the employer for the promotion to fill in the post substantively.

3. Trainees, however will be required to act in different posts for varying periods and the work involved will not therefore entitle them to this allowance.

CLAUSE 26 : OUT OF STATION ALLOWANCE

The Employer shall pay a fixed Out of Station allowance at the rate of Ghc 22.5O (twenty-two Ghana cedis, fifty pesewas), per night to both field workers and clerical staff.

a. WARNING NOTICE

Where the conduct or services of an Employee is not satisfactory or if the Employee commits an offence against any clause of this Agreement or the working rules of the Employer, the employer may issue written warnings to the employee , a copy of which should be sent to the Shop Steward. The Union may appeal against any warning letter and request its withdrawal if a case is established that the employee is innocent. Any warning shall cease to have effect after a period of twelve months.

b. SUSPENSION

After two written warnings , an Employee may be suspended when he commits a further offence. On the fourth offence, he will be liable to termination. Six days shall be the maximum suspension period for an Employee, at a time. Under no circumstances shall this period be exceeded.

c. INTERDICTION

If an Employer accuses an Employee of a criminal offence and as a result proceedings are instituted against him and he is tried in a Court of Law and found to be not guilty, then he shall be paid his full salary plus other entitlement, and shall be re- instated and retain his previous position. If he is found guilty, it will be at the discretion of the employer either to dismiss or retain him.

d. SUMMARY DISMISSAL

Serious misconduct of Employee warranting summary Dismissal without notice and forfeiture of entitlements under this Agreement by the Employer are as follows

i. Betraying the Employer's secrets

ii. Accepting bribes to give illegal assistance to any one involving the employer's interests

iii. Stealing and pilfering or proven fraud or attempted fraud

iv. Sleeping on duty

v. Smoking in prohibited areas

vi. Gross negligence of duty

vii.Willful refusal to follow the grievances procedure laid down in clause 28 hereof.

e. ABSENCE FROM WORK

1. An Employee shall not absent himself/herself from work on any day of the working week without prior permission of the employer.

2. Any such absence without permission for five continuous working days shall be deemed as termination of appointment and the employer has full right to replace or appoint a new applicant to fill the post.

3. In case of those Employees who have been absent without permission and return in four days without satisfactory reasons being given, action of suspension of one (1) day for each day absence can be applied against them, such days suspension shall be without pay and the Union notified.

4. An employee who is absent without permission for a total of more than 12 working days in any twelve months period shall be liable to summary dismissal.

CLAUSE 27 : GRIEVANCES PROCEDURE

It is the intention of the parties to this Agreement to settle any disputes arising out of its application and interpretation amicably without resort to strikes or lockouts. It is agreed that in case of a dispute, the following stages must be followed.

Stage 1 : The Union member aggrieved accompanied by the branch Union representatives shall meet the supervisor or site agent and try to resolve the difference and if no compromise is reached ;

Stage 2 : The regional officer of the Union, the Branch Union representative and the member concerned shall meet the regional management representative and try to settle the difference and if that also fails ;

Stage 3: The National Secretariat of the Union shall meet the Employer at Headquarters level to try to resolve the matter and if that fails ;

Stage 4: The National Secretariat of the Union shall meet the Employer at the Joint Negotiating Committee level to try to resolve the matter and if that fails;

Stage 5 : The matter will be referred to conciliation in accordance with the Labour Laws currently in force

CLAUSE 28 : RESIGNATION/TERMINATION

The conditions regarding resignation/termination of appointment shall be in accordance with Labour Act 2003 (Act 651) as follows :

a. Where the agreement is to pay remuneration at a monthly rate, it shall be deemed to be a contract from month to month terminable at any time by either party giving to the other party at least fourteen (14) days notice to expire not earlier than the last day of the current month.

b. Where the agreement is to pay remuneration at a weekly rate, it shall be deemed to be a contract from week to week terminable at any time by either giving at least seven (7) days notice.

c. Where the agreement is to pay remuneration at any rate other than monthly or weekly, it shall be deemed to be a contract at will terminable at the close of any without notice.

d. Notice under this paragraph may be written or oral.

e. The day on which the notice is given may be included in the period of notice.

f. The Employer shall pay to the Employee not later than the date of expiration of the notice, all remuneration due him/her at that date. Where no notice is required the payment may not be later than the next succeeding working day after the termination.

g. Either party to an agreement to which this paragraph applies may terminate the agreement without notice upon payment to the other party of a sum equal to the amount of remuneration which would have accrued to the Employee.

h. In this paragraph "Agreement" means any oral engagement to work.

i. Where the notice is oral, it shall be proved beyond all reasonable doubt.

j. Employees who resign before the completion of twelve (12) months service shall not be entitled to any payment in respect of leave.

k. Notwithstanding the proceeding provisions of this paragraph, where a worker has been in the continuous employment of the same Employer for a period exceeding 3 years, the Agreement may be determined by the expiration of one months notice.

CLAUSE 30 : TRANSFERS

1. All Employees of this Industry are transferable on duty to anywhere the Employer operates throughout Ghana. Written transfer notice shall be served on the Employee 14 clear days before effective date of departure to the new station. In emergency cases, the Employee shall comply 48 hours and the shop Steward notified also.

2. The Employer shall be responsible for the provision of or payment for transport and transportation of personal effect.

3.Transfers exclude the employee’s spouse and children

4. TRANSFER ALLOWANCE

For a permanent transfer to or from different Geographical location within three (3) months, a transfer allowance of Ghc 100.00 (one hundred Ghana Cedis) shall be paid. But where the transfer shall exceed three (3) months then, 10% of the employee’s annual basic pay shall be paid.

5. SOFT LOANS

Management may grant compassionate soft loans to its employees to mitigate exigencies like accommodations etc. This will be done on case to case basis between Management and the Union.

6. REPATRIATION

i. On leaving the service on grounds of ill health, retirement, old age, redundancy or termination (excluding summary dismissal) the Employer shall bear the cost of travelling expenses of the Employee, his registered wife and three children under 18 years of age to his original place of engagement . Fares paid will not exceed the approved State Transport Corporation fares in force at the time.

i. Under no circumstances shall transferred workers travelling to their new places of transfer be transported on the platform of open trucks.

CLAUSE 31: INCENTIVE SCHEME

CLAUSE 32 : SALARIES AND WAGES

The parties to this agreement shall observe the Salaries and Wages structure as per appendix 'A'.

CLAUSE 33 : SPECIAL ALLOWANCES

1. HEIGHT ALLOWANCE

A daily fixed amount of Ghc 1.88p shall be paid to erectors who climb towers from 10 meters and above.

2. UNDERGROUND / UNDERWATER ALLOWANCES

An employee engaged in underground/underwater work to a depth beyond 5 meters, shall be paid an allowance equivalent to 25% of basic daily wage for days worked.

3. CASHIERS ALLOWANCE

A monthly allowance of Ghc 37.50 shall be paid to Cashiers.

4. END-OF-YEAR BONUS

a. Annual bonus, not less than a month's salary shall be determined on the performance of the Company during the year.

b. Employees who have done more than six (6) months but less than twelve (12) months service shall be paid pro-rata.

CLAUSE 34 : SEVERANCE BENEFITS

b. Death Gratuity : Above rate shall also be paid to the estate of Employee who died in the service of the company.

3. RESIGNATION

An Employee shall be eligible for 3.5 weeks pay for each year of service when he/she resigns from the service of the Company.

CLAUSE 35 : TRAINING WITHIN INDUSTRY

CLAUSE 36 : STRIKES AND LAYOUTS

The conditions regarding strikes and layouts shall be in accordance with Labour Laws currently force.

CLAUSE 37 : LABOUR REGULATIONS

Where this agreement is silent, the Labor Regulations on the particular subject shall apply.

CLAUSE 38 : TEMPORARY LAY OFF OR SUSPENSION

Any break in service not exceeding three (3) months caused involuntarily by temporary lay- off or suspension of an Employee not arising from misconduct shall be disregarded for the purpose of computing any entitlement in this Agreement, i.e leave, notice severance pay, retirement, etc

CLAUSE 39 : MEDICAL FACILITY

In exceptional circumstances, this amount may be exceeded at the discretion of the Employer.

CLAUSE 40 : SICK LEAVE

CLAUSE 41: FILLING VACANCIES

1. Where a post becomes vacant or is created, prior consideration will be given to filling it by promoting existing staff.

2. Employees will whenever possible or practicable be informed through Internal Circular of vacancies as they occur to enable Employees in other departments of the Company or lower grades to apply.

CLAUSE 42 : LONG SERVICE AWARD

CLAUSE 43 : RESPONSIBILITIES OF THE PARTIES

Nothing in this Agreement shall worsen any existing condition of any individual Employee.

CLAUSE 44 : LICENSE FOR DRIVERS AND CRAFTSMEN

1.The Company will pay for license renewal for all drivers or operators in their employment who are required by law to hold a license for driving for the company.

2.All Craftsmen, Artisans who are required to sit an examination for up-grading shall have the expenses so involved settled by the company.

CLAUSE 45 : PLASTIC IDENTITY CARDS

1. The Employer shall provide plastic identity cards to all registered Employees.

2. This shall however be recovered when Employee is leaving the Company

CLAUSE 46: LEGAL ASSISTANCE FOR DRIVERS/OPERATORS

1. In the event of court proceedings being taken against a driver/operator involved in an accident while driving/ operating the Company's vehicle/equipment in the course of his duties, the Company shall provide legal assistance to him. The Company shall, as well, inform its Insurers to take the necessary action.

2. The Employer shall provide transport to and from, to pay transportation expenses of the Employee to enable him present himself at the court.

3.The Employer shall pay all fines involved, except when the fault is due to the driver.

CLAUSE 47 : EDUCATION SUBSIDY

Management is to spend on a child's education, an amount of not more than Ghc 2OO.OO a year, on presentation of school receipts or bills to Management. For this purpose, Union shall select annually a maximum of fifteen qualified children pro-rata every 100 Employees who have completed the Junior High School level and submit their particulars to Management. Mode of selection is to be dealt with by a committee set up by the Union.

Where the total bills for the school year exceed the said amount, the Employer may consider paying the difference.

APPENDIX "A": WAGES FOR GHANA BRANCH WORKERS FROM 1st MARCH 2011

GRADE 2: LABOURER, WATCHMAN, HOUSE BOY, OFFICE BOY, MOTOR BOY, ALL HELPERS OF GRADE 1

GRADE 1: MECHANIC, VULCANIZER, AUTO ELECT., ELECTRICIAN, WELDER, OPERATORS, ERECTORS, PIPEFITTER, STEEL BENDER, MASON, CARPENTER, LATHE TURNER, COOK.

LIGHT DUTY DRIVERS

HEAVY DUTY DRIVERS

FOREMAN

 

AS WITNESS BY HAND OF THE PARTIES HERETO:

Signed on behalf of SAE POWER LINES s.r.l. - GHANA OPERATIONS

Signed:

Witness to Signature:

Marco Picucci

Administrative Manager

Signed on behalf of the CONSTRUCTION & BUILDING MATERIALS WORKERS UNION OF T. U. C. (GHANA)

Signed

P.M.K. Quianoo

General Secretary, C.B.M.W.U.

Witness to Signature:

Dated at Tema this day of May, 2011.

Other Matters

1. Union requested that Management should pay accrued redundancy benefits to workers who may apply for.

Mr. Cozzi objected to it, explaining that it’s a package to benefit an employee who is declared redundant so there is no reason to pay an employee that package when he or she is not declared redundant.

2. Union complained of some expatriate supervisors who harass and abuse workers especially those on the field.

Mr. Cozzi said, that behavior is not the policy of the Company so such supervisors should be reported to him for redress.

In the absence of any further discussion, Mr. Cozzi thanked all participant for exhibiting good maturity and deliberations stating that he hope for better business opportunity in future.

Mr. Quainoo in turn thanked all participants and wished Management well.

The meeting ended at 1.45p.m.

P.M.K Quainoo (CBMW Union)

Recorded by Vera G.M. Teiteh