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COLLECTIVE AGREEMENT BETWEEN THE INDUSTRIAL & COMMERCIAL WORKERS UNION (ICU) GHANA &, AZAR CHEMICAL INDUSTRIES LIMITED

This Agreement made this 30th day of March, 2014, between the Industrial and Commercial Workers Union Ghana, a Union officially certified under the Labour Act, 2003 (ACT651) (hereinafter called the “UNION” and Azar Chemical Industries Ltd.”) hereinafter called the “Employer”) and the Union representing those employees on whose behalf it has been certified to negotiate the Agreement between the parties and provide as follows:-

This Agreement will apply to all employees who are in the employment of the employer on the date of signing and will equally apply to employees who are engaged by the employer while the Agreement is in force. This terms and conditions of this Agreement shall take effect from 1st March, 2014.

DEFINITION

(a) A daily-rated employee is one whose monthly wage rate has been calculated on the basis of 27 working days.

(b) STAFF: - Any person in this Agreement, which is limited to “Staff” will only apply to salaried employee.

ARTICLE 1 - PURPOSE

It is the intention of the parties thereto that this Agreement will promote and improve relations between the Employer and the Union and to set forth herein a basic agreement covering hours of work and other conditions of employment and or non-employment to be observed between the parties hereto during the life of this Agreement.

ARTICLE 2 - DURATION

a) The duration of this agreement will be for a period of not less than two (2) years from 1st March, 2014.

b) The rate of pay shall be negotiated on yearly basis and salaries increases shall take effect from 1st March, 2014.

c) At any time within twenty-eight (28) days to the expiration of this agreement, either party may give notice in writing expressing its wish for this agreement to continue in force for a further period to be agreed upon between the parties or express its intention to terminate this agreement provided that in the absence of any such notice, thirty(30) days after its expiration, this agreement shall continue in force until rescinded by the parties.

d) This agreement shall continue to be in force, until a new agreement is signed.

ARTICLE 3 - CONDITIONS OF ENGAGEMENT

a) The Employer shall employ through the Public employment Centre but shall consider Article 8 before engaging any new hands.

b) Any employee with previous experience in the job in which he/she is engaged shall undergo a probationary period of three months and when he/she has given satisfactory performance, his/her appointment shall be confirmed in writing. An employee without previous experience in the job involved for which he /she is recruited will be required to serve a probationary period of six(6) months.

c) At any time during the probationary period, the employees’ services may be terminated in accordance with the Labout ACT, 2003, (ACT 651).

d) Unless informed in writing to the contrary, an employee who has completed his/her probationary period will be deemed to have been confirmed in the appointment.

ARTICLE 4 - UNION SHOP/CHECK OFF

a) Every employee covered by this Agreement shall be deemed to be a member of the Union.

b) At the written request of the Union and in accordance with section 111 of the Labour Act 2003 (ACT 651), the Employer undertakes to deduct Union dues/levies from the salaries of employees and pay the sum deducted as may be directed by the union. 

ARTICLE 5 - HOURS OF WORK

a) The working week will consist of five (5) days.

b) The standard working hours for basic pay shall be forty hours per week.

c) In all cases, the hours of work will be regulated by the employer in accordance with exigencies of the work provided that the total number of hours worked for basic pay will not exceed present standard working hours as laid down in (b) above.

d) A minimum of thirty(30) minutes break shall be allowed for workers on shift work and will be counted as working hours.

ARTICLE 6 - OVERTIME

1. Any employee who at the request of his/her employer works overtime either after having completed a normal day’s work or on his/her normal rest day or days, shall be entitled to overtime at the following rates:-

(a) Employees working from Monday to Saturday] TIME & HALF After normal working hours (1 and 1/2)

(b) Sunday and Public Holiday] Double Time(2)

2. Overtime shall not be compulsory. However, the Local Union shall co- operate wherever work demands make it necessary to do overtime.

(c ) Premium on overtime after working hours on Saturday and Sunday shall be, paid only when the employee had already completed 40 hours in the week.

ARTICLE 7 - ANNUAL INCREMENT:

(a) Annual salary increment of up to 5% shall be granted at the end of the salary year up to the limit of the scale, provided the employee has not been advised in writing two months before the end of the salary year that his/her increment is being withheld because of unsatisfactory work.

(b) When an employee has reached the maximum of his/her scale, he/she will remain at that salary until such time as he/she is promoted to a position of greater responsibility.

ARTICLE 8 - PROMOTION:

Promotion will be by merit tempered by seniority within the establishment. Whenever a post becomes vacant or is created, prior consideration will be given to filling it by promotion from existing staff. Employees will be informed through internal circular and memoranda of vacancies, as they occur to enable employees in other departments or lower grades to apply.

ARTICLE 9 - SALARY ADVANCES:

Salary advances not exceeding an employees’ monthly salary will be granted to all employees who are in financial difficulties but in exceptional cases where management is satisfied with the bonafide nature of the case, this limit will be exceeded.

ARTICLE 10 - MANNER OF PAYMENT OF SALARIES/WAGES:

Salaries and wages shall be paid to all employees on or before the last working day of the month (see Appendix A - Salary Structure).

ARTICLE 11 - ACTING APPOINTMENT:

Any employee covered by this Agreement who is required to carry out for more than two weeks the duties of a post superior to that grade in which he/she is normally employed will be paid acting allowance equivalent to the difference between his/her salary and the salary attached to the post in which he/she acted or 20% of his/her salary whichever is higher.

ARTICLE 12 - PER DIEM ALLOWANCE (LODGING & SUBSISTENCE):

(a) Any employee who is required in the course of his/her duties to spend one or more nights away from his/her home will be paid an out of station allowance at the of Ghc 45.00 per night.

(b) An employee who is required in the course of his/her duties to travel outside his/her place of work during the normal lunch period and who does not qualify for out of station allowance will be paid lunch allowance at the rate of Ghc 10.00 per day.

(c) Payment of reasonable boarding, lodging and other out of pocket expenses connected with the work shall be made to any employee who is required in the course of his/her duties to spend a night away from the country.

ARTICLE 13 - ANNUAL LEAVE:

An employee who has completed twelve (12) months continuous service shall be granted leave according to the following scale:

a 1 year but less than 5 years service 24 working days
b 5 years but less than 10 years service 27 working days
c Above 10 years 30 working days

Annual leave will be taken at the convenience of the employer and can only be accumulated with the express permission of the employer.

ARTICLE 14 - COMPASSIONATE LEAVE

Compassionate leave with pay shall be granted to employees in special circumstance if the employer is satisfied that there is a bonafide case. The period of such leave will be determined by the circumstances of each case.

ARTICLE 15 - TRAINING WITHIN INDUSTRY:

(a) The employer undertakes to provide suitable means for the training of employees including apprenticeship where such means will enable the employees to secure competency in the performance of their duties and fit them for promotion within the company. Where an employee is required by the employer to take a course at a recognized educational establishment which requires time off, the employer will afford the employee such time off with pay and undertakes to bear the cost of such courses. Due note will also be taken of any employees’ request to attend such a course which would render the applicant more competent in the performance of his/her duties within the organization.

(b) An employee required to undertake training leading to a higher appointment in the company would be acquainted with the period of training and the grade to which he/she will be promoted on a successful completion of his/her training.

ARTICLE 16 - LEAVE OF ABSENCE FOR UNION ACTIVITIES

An employee elected to office in or as a delegate to any union activity necessitating a leave of absence shall be granted leave with pay. Written notice for such leave stating the length of leave required shall be given to the employer as far in advance as possible but in no event less than three days prior to the day such leave is to become effective.

The length and frequency of such leave will be based on the merits of individual cases.

ARTICLE 17 - MEDICAL FACILITIES:

All employees will be eligible for the benefits of the employer’s medical Scheme as follows:

(a) The employer will pay the cost of medical and surgical examination and treatment including the cost of drugs and hospital fees other than the cost of subsistence but excluding the following:-

1. Provision of artificial teeth, spectacles, hearing aids and artificial limbs

2. Maternity, Obstetrical and Gynecological treatment

3. Treatment necessitated by negligence of the employee concerned

4. Surgical operations

5. Accidents covered by Third Party of employer’s liability insurance

(b) The Employer shall provide free medical attention to an employee’s spouse and up to three children below the ages of eighteen years who are neither employed nor married, and who must be registered with the company. Such treatment shall be taken at the Korle Bu Teaching Hospital or be taken at the Local government Polyclinics or where the employer maintains a clinic, the employer may direct such a clinic as the treatment centre.

ARTICLE 18 - SICK LEAVE

An employee who is absent from work due to sickness and certified as unfit to work by a doctor specified by his/her employer shall be granted sick leave for the period of the certificate on the following basis:

1 year but less than 3 years service 2 months full pay

2 months 3/4 pay

2 months 1/2 pay

3 years and above years of service 3 months full pay

3 months 3/4 pay

3 months 1/2 pay

However, any employee found working for pay whilst on sick leave would be subject to summary dismissal.

ARTICLE 19 - MATERNITY LEAVE

Where a pregnant female employee of the company produces a certificate from a registered midwife or medical practitioner that her confinement is expected within six weeks after the date of the certificate, and who, by the date of her confinement will have completed twelve months service from the date of being employed, will be entitled to maternity leave of twelve weeks after her confinement and shall receive full pay for the period she is on such leave.

(a) The granting of maternity leave shall not debar any employee from receiving sick leave in accordance with Article 18 of this Agreement.

(b) Any pregnant woman wishing to leave work during period of pregnancy may do so without seniority.

(c) On return to duty, a nursing mother will be granted two hours off duty per day for the purpose of nursing her child up to the time the child is nine months old.

ARTICLE 20 - INDUSTRIAL ACCIDENTS:

In all cases of industrial accidents, the provision of Workmen’s compensation Law 1987 shall apply.

ARTICLE 21 - DISCIPLINE:

Summary Dismissal: In the event of any employee being found guilty of serious misconduct such as dishonesty, insubordination, drunkenness or serious dereliction of duty, he/she shall be dismissed summarily.

Termination : Where an employee commits an offence, which does not amount to serious misconduct, such employee will be warned in writing. If after two of such warnings the employee commits a third offence, his/her services shall be terminated. Copies of warning letter shall be given to the Union. Warning shall cease to have effect after twelve months from the date of warning. However, persistent offenders will be treated in accordance with their previous records.

Suspension: Where an employee is suspected of having committed an offence but cannot at the time be proven to have done so, he/she may be suspended on half pay pending further investigations. If in the end he/she is not proved guilty, he/she will be paid as if he/she had worked for the full period of the suspension.

ARTICLE 22 - REDUNDANCY:

a) Where for one reason or another, the employer is compelled to declare more than one employee redundant; the employer shall provide in writing to the Chief Labour Officer and the Union concerned (ICU) not later than 3 months notice before the contemplated changes; all relevant information including the reasons for any termination, the number and categories of workers likely to be affected and the period within which any termination is to be carried out.

b) The standing Negotiating Committee shall meet to discuss modalities for the exercise.

ARTICLE 23 - REDUNDANCY PAY:

In the event of redundancy, as per Article 22 above, the employer shall pay to each affected employee, one (1) month’s pay for each year of service with effect from 1st January, 1991.

ARTICLE 24 - FUNERAL GRANT:

(a) In the event of the death of a confirmed employee, the employer shall make a donation of Ghc550.00. Out of this amount, Ghc 450.00 shall be given to the spouse and children of the deceased employee and Ghc 100.00 to the family. The employer shall provide coffin, drinks and transport to convey the corpse to the hometown or place of burial in Ghana. The employer shall delegate staff to represent the company at the funeral.

(b) In the event of the death of an employee’s registered spouse, the company shall donate an amount of Ghc 350.00.

(c) In the event of the death of an employee’s registered child the company shall donate an amount of Ghc 350.00.

(d) In the event of death of father or mother of an employee, the company will donate an amount of Ghc 300.00

ARTICLE 25 - INCENTIVE BONUS:

In an endeavour to raise productivity, the employer may institute an incentive bonus to cover any class of employees where applicable. This will take the form of cash payment for higher output. The Union will be consulted in fixing the production figures and rates.

ARTICLE 26 - SHOP STEWARDS:

The parties to this Agreement recognize the existence of the shop Steward or Union Agent as the representative of the Union. The shop steward shall consult or be consulted by Management on all disciplinary measures of employees with a view to resolving the difficulties at that level and avoid them taking on a greater dimension. The shop steward shall intercede in matters affecting the well being of the employee during normal working hours, provided that permission has been sought from the Head of his Department.

ARTICLE 27 - GRIEVANCE PROCEDURE:

Step 1: In the event of any grievance, the employee should as first step, take the matter up with his immediate supervisor/Foreman/Sectional Head. If he/she does not obtain satisfaction, he/she may ask for his/her Shop Steward/Local Union Secretary to present his/her case.

Step 2: If the matter remains unresolved, the shop Steward/Local Union Secretary will take the matter up with the Sectional Head. If no progress is made at this stage, the Local Union Secretary shall take the matter up with the Personnel Manager.

Step 3: if the matter remains unresolved, the Local Union Secretary will inform the Regional Industrial Relations Officer of the Union who will arrange to meet the Management and endeavour to settle the issue.

Step 4: If after step 3 the matter still remains unresolved, the Union will summon the Standing Negotiating Committee to meet and endeavour to reach agreement. If the committee fails to resolve the matter, either party will proceed constitutionally by reporting the dispute to the National Labour Commission for settlement.

Step 5: It is also agreed that should there be any disagreement it should be resolved in accordance with the procedure prescribed in section 153 of the Labour Act 2003, (Act 651) which stipulates that “the parties to an industrial dispute are under the obligation to negotiate in good faith with the view of

reaching a settlement of the dispute in accordance with the dispute settlement procedure established in the collective agreement”.

ARTICLE 28 - ABSENCE DURING WORKING HOURS:

Any employee wishing to leave his/her place of work or employment will first seek permission from his departmental Manager. Any employee who leaves his/her place of work without permission will be committing an offence and a warning letter shall be issued to him/her and recorded on his/her history sheet.

ARTICLE 29 - ABSENCE FROM WORK:

(a) A salaried employee who absents him/her self without permission shall report immediately on resumption of duty and unless a satisfactory explanation is given, he/ she shall be warned in writing.

(b) If a daily-rated employee is absent without satisfactory explanation, he/she shall loose pay for each absence.

(c) Any employee who absents him/her self from work for 5 working days without permission will be regarded as having vacated his/her post.

(d) Any employee who absents him/herself from work for 10 working days cumulatively within 12 months without permission will have his/her appointment terminated.

ARTICLE 30 - UNIFORMS:

Where the employer directs that owing to the nature of the work the employee should wear uniform in the interest of the business, such uniforms will be provided and maintained at the expense of the employer and will be worn during working hours by the employee. In the interest of the business and good management, the Union may approach Management on this issue at any time.

ARTICLE 31 - SAFETY BOOTS

(a) The employer will provide safety boots to employees whose nature of work requires them to wear such boots.

(b) Failure to wear the protective clothing, the employer shall discipline the employee(s)

ARTICLE 32 - RESIGNATION/TERMINATION:

An employee wishing to resign or terminate his employment within three years service shall give two weeks notice or pay in lieu. After three years service, he/she shall give one month notice or pay one month’s salary in lieu thereof. The employer shall give similar notice or pay in lieu except in cases of summary dismissal, which shall be without notice or pay in lieu.

ARTICLE 33 - NOMINATION OF BENEFICIARY:

Every employee will give his/her employer at the time of his/her engagement the name and address of the nominee whom he/she wishes to receive any entitlement due from the employer to his estate in the event of his/her death. This can be revoked, renewed or revised at the discretion of the employee. In the event of death of the employee, the employer shall give to the beneficiary last nominated by the deceased employee any benefits/rights that may have accrued to the deceased on production of certified true copy of “Probate” or "Letter of Administration” in respect thereof subject to any requirement that may be necessary in law.

ARTICLE 34 - CERTIFICATE OF SERVICE:

On resignation or retirement of an employee, the employer at the request of the employee will provide a Certificate of Service.

ARTICLE 35 - UNION NOTICE BOARD

The employer agrees to provide a notice board placed conspicuously on his premises for the use of the union.

ARTICLE 36 - REPATRIATION:

The employer will repatriate to his/her original place of recruitment any employee who leaves the services of the employer or whose service is terminated at a time when he/she is serving at a station other than his/her original place of recruitment.

ARTICLE 37 - LONG SERVICE AWARD

a 10 years service Ghc 320.00 + FRAMED CERTIFICATE
b 15 Ghc 470.00
c 20 Ghc 570.00
d 25 Ghc 670.00
e 30 Ghc 770.00

ARTICLE 38 - RESPONSIBILITIES OF PARTIES TO THE AGREEMENT:

Both parties recognize that this Agreement imposes serious duties and responsibilities on the Union as well as the employer. Nothing in this Agreement shall worsen any individual’s existing conditions of service.

For and on behalf of

AZAR CHEMICAL INDUS. LTD.

GHAZI AZAR

MANAGING DIRECTORS

JOSEPH K. AMOAH

GHANA EMPLOYERS ASSOCIATION

CHARITY MENSAH

HUMAN RESOURCE MANAGER

For and on behalf of

INDUSTRIAL & COMMERCIAL WORKERS UNION

SENIOR INDUS. RELATIONS OFFICER(ICU)

CHAIRMAN (LOCAL UNION)

EDWARD K. SACKEY

Azar Chemical Industries Limited - 2014

Start date: → 2014-03-01
End date: → 2016-02-28
Name industry: → Manufacturing
Public/private sector: → In the private sector
Concluded by:
Name company: → Azar Chemical Industries Limited
Names trade unions: → Industrial and Commercial Workers Union (ICU)

TRAINING

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

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 88 %
Maximum days for paid sickness leave: → 274 days
Provisions regarding return to work after long-term illness, e.g. cancer treatment: → No
Paid menstruation leave: → No
Pay in case of disability due to work accident: → Yes

WORK AND FAMILY ARRANGEMENTS

Maternity paid leave: → 12 weeks
Maternity paid leave restricted to 100 % of basic wage
Job security after maternity leave: → Yes
Prohibition of discrimination related to maternity: → No
Prohibition to oblige pregnant or breastfeeding workers to perform dangerous or unhealthy work: → No
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: → No
Prohibition of screening for pregnancy before promotion: → No
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: → Insufficient data days

EMPLOYMENT CONTRACTS

Trial period duration: → 90 days
Part-time workers excluded from any provision: → No
Provisions about temporary workers: → No
Apprentices excluded from any provision: → No
Minijobs/student jobs excluded from any provision: → No

WORKING HOURS, SCHEDULES AND HOLIDAYS

Working hours per week: → 40.0
Working days per week: → 5.0
Paid annual leave: → 24.0 days
Paid annual leave: → 4.0 weeks
Rest period of at least one day per week agreed: → No
Provisions on flexible work arrangements: → No

WAGES

Wages determined by means of pay scales: → No
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → 5.0 %

Once only extra payment

Once only extra payment due to company performance: → No

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Premium for Sunday work

Premium for Sunday work: → 100 %

Allowance for seniority

Allowance for seniority: → GHS 320.0 per month
Allowance for seniority after: → 10 years of service

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → No
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