PREAMBLE:

PART 1

(A): BASIC MINIMUM WAGES EXCLUDING HOUSING ALLOWANCE

(To cover the duration of the Agreement)

B. HOUSING ALLOWANCE

An employee who is not provided with free accommodation by the employer will be paid a housing allowance of Ksh.3,850/ per month both years.

An employee who is already being paid an allowance which is more than the specified allowance for his/her category will not suffer any reduction. He/she will retain what he/she is earning.

PS : the grading of the employees shall be done solely by the employer and the union shall be informed.

C. WAGE INCREASE

PART II. OTHER TERMS AND CONDITIONS OF SERVICE

1. PROBATIONARY PERIOD

(a) Unskilled labourers, office messengers and watchmen two months during which period employment may be terminable by either party by giving 7 days or pay in lieu.

2. HOURS OF WORK

3. OVERTIME

4. ANNUAL LEAVE

(b) Two years annual leave entitlement may be accumulated by mutual agreement between the employer and an employee.

(i) In case the employer desires not to allow an employee to proceed on leave because of employer's own reasons, the employer shall pay to the employee an amount equivalent to his/her leave plus a Traveling Allowance.

(ii) Contrary to b (i), if it is the employee who desired to sell his/her annual leave days to the employer, such employee shall be paid for his/her days but without Traveling Allowance.

5. LEAVE TRAVELLING ALLOWANCE

6. SICK LEAVE

An employee shall not be eligible to such leave in any incapacity due to gross misconduct.

7. COMPASSIONATE LEAVE

8. MATERNITY LEAVE

9. INJURY WHILE ON DUTY

10. MEDICAL TREATMENT

11. PROVISION OF MILK

(a) Milk will be provided to spray painters, mig welders, panel beaters glue and fibre glass section employees. Such milk must be consumed in premises and not to be taken away.

(b) Painting shall not be done in an open area where other employees who are not concerned with painting are performing their duties, as doing so can always cause risks of bodily injury.

12. AGENCY FEE.

It was agreed that the management shall deduct agency fee from its employees. The union shall always notify the management of new membership.

13. UNIFORMS AND PROTECTIVE GEARS

(a) An employee who may be required to wear uniform due to the nature of his work shall be provided with two uniforms per annum provided that the two old uniforms are returned for inspection before new uniforms are issued.

(b) An employee provided with uniforms shall be provided with one bar of quality soap every month.

(c) Gloves will be issued to welders and tinsmiths. Proper spray painting mask will be issued to spray painters.

(d) Industrial boots to be issued to all workshop staff - annually.

14. CASUAL LABOUR

(a) The Company has the right to engage casual labour on day-to-day basis. Such casual labour may be engaged for a maximum period of not more than three consecutive months only.

(b) Should casual labour be engaged for a period exceeding three (3) consecutive months, such casual labour shall be absorbed into .permanent terms of employment in the Company.

(c) They shall be paid a house allowance of 15% of their basic pay for the first three months and thereafter a consolidated salary. To arrive at their daily rate, it will be basic minimum wage plus house allowance divided by 26 days.

15. TERMINATION OF EMPLOYMENT

After completion of the probationary period, and in the normal circumstances employment can be terminated by either party serving the other with notice or

pay in lieu as below stated depending on the year of service;

(a) 1-5 yearsone month notice.

(b) 5-10 yearsTwo months notice.

(c) Over 10 years Three months notice

16. REDUNDANCY

(a) In the event of redundancy, the employer concerned shall inform the Union of the reasons for and the extent of the intended redundancy.

(b) The principle of 'LAST IN, FIRST OUT' shall be followed in the particular category of employees affected, subject to all other factors such as skills, merit, ability and reliability being equal.

(c) The redundant employee shall be entitled to one month's notice appropriately or pay in lieu of notice.

17. SUMMARY DISMISSAL

Any of the following matters may amount to gross misconduct so as to justify the summary dismissal of an employee for lawful cause, but the enumerations of such matters shall not preclude an employer or an employee from respectively alleging or disputing whether the facts giving rise to the same, or whether any other matters not mentioned in this section constitute justifiable or lawful grounds for such dismissal:

(a) If, without leave or other lawful cause, an employee absents himself from the place proper and appointed for the performance of his work;

(b) If, during working hours, by becoming or being intoxicated, an employee renders himself unwilling or incapable of properly performing his work;

(c) If an employee willfully neglects to perform any work which it was his duty to have performed, or if he carelessly and improperly performs any work which from its nature it was his duty, under his contract to have performed carefully and properly;

(d) If an employee uses abusive or insulting language, or behaves in a manner insulting to his employer or to any person placed in authority over him by his employer;

(e) If an employee knowingly fails or refuses to obey any lawful and proper command which it was within the scope of his duty to obey, issued by his employer or any person placed in authority over him by his employer;

(f) If in the lawful exercise of any power of arrest given by or under any written law, an employee is arrested for a cognizable offence punishable by imprisonment and is not within fourteen days either released on bail or bond or otherwise lawfully set at liberty.

(g) If an employee commits, or on reasonable and sufficient grounds, is suspected of having committed any criminal offence against or to the substantial detriment of his employer or his employer's property.

18. DEATH OF AN EMPLOYEE

19. CERTIFICATE OF SERVICE

(i) Every employee shall be given a certificate of service by his employer upon the termination of his employment, unless such employment has continued for a period of less than four consecutive weeks, and every such certificate shall contain:

(a) the name of the employer and his postal address

(b) the name of the employee

(c) the date when employment commenced

(d) the nature and usual place of employment

(e) the date when the employment ceased; and

(f) Such other particulars as may be prescribed.

(ii) Subject to sub-section (i) of this section, no employer is bound to give an employee any testimonial or reference relating to the character or performance of an employee.

(iii) An employer who willfully or by neglect fails to give an employee a certificate of service in accordance with sub-section (i) of this section, or who in a certificate of service includes a statement which he knows to be false, commits an offence and shall on conviction be liable to a fine not exceeding one hundred thousand shillings or imprisonment for a term not exceeding six months or to both.

20. WARNING SYSTEM

An employee whose work or conduct is unsatisfactory or who commits an offence which in the opinion of the company does not warrant instant dismissal shall be warned in writing.

The following procedure shall be followed:

(a) The 1st and 2nd warnings shall be recorded on his/her employment record card.

(b) If an employee with two warnings recorded commits a third offence within 12 months from the date of the last warning, he/she will be liable to termination from the employment.

(c) If an employee completes 12 months from the date of the last warning without further offence any warnings recorded on his/her card will be cancelled.

(d) All warnings, termination and dismissal letters will be copied to the Union's Branch Secretary and the Shop-stewards.

21. ACTING ALLOWANCE

Where an employee is required to work for a period of not less than 20 working days in an occupation or grade for which the basic minimum wages prescribed under Part 1 of the Agreement is higher than the basic wage normally earned by the employee, he shall be paid acting allowance at a rate not less than the difference between such higher basic minimum consolidated wage.

22. SAFARI ALLOWANCE

An employee who is required to work away from his principal area of employment shall be paid subsistence and accommodation allowance as follows:

Breakfast: Kshs.270/=

Lunch: Kshs.330/=

Supper: Kshs.380.00/=

Night stop Accommodation: Kshs.1,000.00/=

In case an employee has to work outside the country, the above rates are subject to change and shall be done fairly by the employer.

23. MID MONTH ADVANCE

Every employer will pay mid-month wages advances to his employees at a minimum of the ½ employee’s basic pay.

24. SHOP STEWARDS' RIGHTS AND SAFEGUARD

The Company shall give shop-stewards/workers time off with full pay to attend trade union meetings, courses and seminars organized by KLDTD & AWU provided that the Union shall give a prior notice of 7 days to the Company. The management should appreciate the services rendered by a shop steward in industrial disputes and they should not be victimized in their line of duty.

25. RETIREMENT AGE

Retirement age will be 55 years for male employees and 50 years for female employees. However, early or late retirement may be taken by mutual agreement between the employer and employee.

26. PROMOTION

Where vacancies arise within Company, the Company shall give first consideration to promoting existing employees taking into account such consideration as relative ability, loyalty, experience, qualifications and length of service.

27. ANNUAL BONUS

28. PRODUCTION

It was agreed that each body builder should follow its own incentives scheme to enhance production.

29. SUSPENSION

If any employee is suspended by the Company for cognizable offence, if he/she is found guilty, there shall be no pay. If on the other hand he/she is found not guilty he/she shall be paid his/her full salary for the period he/she was on suspension.

30. LETTER OF APPOINTMENT

31. NIGHT MEAL ALLOWANCE.

32. LOCKING EMPLOYEES IN THE WORKSHOP AT NIGHT.

No employee should be locked in the workshop without a proper known exit or entrance for the safety of the employees. There should be a supervisor on duty to oversee the wellbeing of the employees at any given time.

33. HEALTH AND SAFETY COMMITTEE.

34. SACCO WELFARE

It was agreed that a welfare society to be put in place so as to assist the members in accessing loan facilities. Companies that had not started one should do so.

35. COMPANY POLICY

Member companies of NCBA may wish to have a defined and formal company policy that they will form of the CBA provided that it is accepted by the union by endorsing.

36. DURATION AND EFFECTIVE DATE

The agreement shall be effective from 1st July, 2013 and shall remain in force for a period of two years. Before the expiry date the party wishing to amend the agreement shall give 3 months notice of his/her intensions to do so.

SIGNED: FOR AND ON BEHALF THE GROUP

…………………………………

PAL CHODA

CHAIRMAN OF THE GROUP

………………………………….

D.S VIRDEE

SECRETARY OF THE GROUP

SIGNED: FOR AND ON BEHALF OF THE UNION

...………………………………………………………………………………

NICHOLAS MBUGUASAMWEL GITHIRE

SECRETARY GENERAL ORGANIZING SECRETARY

…………………………………………………………………….

SHOPSTEWARD SHOPSTEWARD

FOR AND ON BEHALF OF FEDERATION OF KENYA EMPLOYERS

…………………………………………….

L.W. KARIUKI

HEAD INDUSTRIAL RELATIONS SERVICES

FEDERATION OF KENYA EMPLOPYERS

DATED: This Day……………………… month of…………….2013.