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COLLECTIVE BARGAINING AGREEMENT BETWEEN AUTOXPRESS LIMITED AND THE KENYA UNION OF COMMERCIAL, FOOD AND ALLIED WORKERS IN THE MATTER OF WAGES AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT

The Company and the Union meeting together in good faith and voluntary association agree and enter into the foregoing Agreement negotiated between them at the Joint Negotiating Committee.

0. BASIC MINIMUM WAGES (EXCLUSIVE OF HOUSING ALLOWANCE)

Category 1: Entry Point

Office Cleaner: 8,780.00

Gardener: 8,780.00

Messenger: 8,780.00

Day watchman: 8,780.00

Cook: N/A

Category II: Entry Point

Store and Delivery Assistant (Loaders/Turn-boys): 9,470.00

Night watchman: 9,775.00

Category III: Entry Point

Ungraded Artisan: N/A

Workshop Technician: 11,305.00

Store Assistant: N/A

Shop Assistant: N/A

Category IV: Entry Point

Telephone Operator: 13,415.00

Receptionist: 13,415.00

Store Keeper: 13,415.00

Artisan Grade III: N/A

Category V: Entry Point

Driver (Light Vehicle and Cars): 11,785.00

Receiving Clerk: N/A

Dispatch Clerk: N/A

Artisan Grade II: N/A

Salesman/woman: N/A

N.B Provided that the Basic Minimum Wage Rates shall always be above the statutory Minimum rates in subsequent General Orders by Kshs. 200/=

1. GENERAL WAGE INCREASE

All unionisable employees in the employment of the Company, who are confirmed in their appointment following satisfactory completion of probation as at 31st March, 2013 shall receive a wage increase of 10% from 1st April, 2013 to cover the first year. Such wage increase be paid in full for any months already passed at the next pay date following the signing of this Agreement. All unionisable employees in the employment of the Company, who are confirmed in their appointment following satisfactory completion of probation as at 31st March, 2014 shall receive a wage increase of 10% from 1st April, 2014 to cover the second year.

2. HOUSE ALLOWANCE

Every unionisable employee who is not provided with free housing accommodation by the employer shall be entitled to monthly house allowance of Kshs.2,300 or 16% of the employee’s basic monthly salary whichever is higher. Such house allowance shall be paid together with the employee’s salary.

3. PROBATION PERIOD

(a) All employees shall be required to serve a probation period of 3 (three) months before being confirmed in their appointment. If necessary, the probation period may be extended by another 3 months at the employer’s sole discretion. During such period, the employment may be terminated by the Company or the employee by giving seven (7) days notice in writing or pay in lieu of notice.

(b) On initial appointment, an employee shall be issued with employment letter of appointment detailing terms and conditions of his/her employment.

4. HOURS OF WORK

The normal working week shall consist of 45 hours of work spread over six days of the week exclusive of meal breaks, provided that an employee shall be entitled to one rest day each week.

5. OVERTIME

Authorized overtime shall be payable at the following rates:-

(a) For time worked in excess of the normal number of hours per week, as specified in paragraph 4 above, at one and half (1 ½) times the normal hourly rate.

(b) For time worked on the employee’s normal rest day and Gazetted Public Holidays, at double the normal hourly rate. The employee may however opt to take time off in lieu of the time worked.

(c) For the purposes of computing payment for overtime worked, the hourly rate shall be 1/195 multiplied by the basic monthly salary.

6. ANNUAL LEAVE

After each period of twelve (12) months continuous service with the Company, an employee shall be entitled to annual leave of twenty three (23) working days leave with full pay in consultation with the Management. Where employment is terminated after the completion of two or more consecutive month’s service, the employee will be entitled to (23/12=1.90 days) prorated leave with full pay for each completed month of service in such period.

7. SICK LEAVE

After the two consecutive months of service an employee shall be entitled to sick leave of 30 days with full pay and thereafter to sick leave of 30 days with half pay in a year subject to production of a medical certificate of incapacity to work signed by a duly qualified Medical Practitioner or a person on the behalf of.

8. MATERNITY LEAVE/PATERNITY LEAVE

(i) (a) A female employee shall be entitled to 3 months maternity leave with full pay provided that a female employee who has taken 3 months maternity leave shall not forfeit her annual leave in that year.

(b) In the event that the employee is certified unfit to resume work after ninety (90) days he shall be entitled to sick leave as per Clause No. 7 above.

(c) For the purposes of this section, maternity leave is to be taken for the purpose of child birth and after-child-birth-care of the infant born.

(ii) Subject to proof of child birth, a male employee shall be entitled to two weeks paternity leave with full pay without forfeiture of annual leave entitlement in that particular year.

9. COMPASSIONATE LEAVE

(a) An employee desiring to take leave on compassionate grounds shall by prior arrangement with the Company be granted such leave upto his/her earned leave entitlement and the leave taken shall be subsequently set off against his/her annual leave.

(b) An employee may, in addition to leave provided for in sub-paragraph (a) of this paragraph, be granted five (5) days compassionate leave with pay in any one year provided that he/she has exhausted the annual leave days.

(c) Compassionate leave shall apply only in the following circumstances:-

(i) Death of a child, spouse, parent, sibling or immediate family member;

(ii) Life-threatening illness of a child, spouse, parent, sibling or immediate family member;

(iii) Any other tragic or life-threatening occurrence.

10. UNIFORMS

Employees who are required by the Company to wear uniforms shall be issued with 3 sets of such uniform in each year, receipt of which the employee shall expressly acknowledge, provided that:-

(a) The employee shall wear his/her uniform at all times while on duty unless directed otherwise by the employer.

(b)The employee shall not wear his/her uniform at any other time without the express permission from the Company other than when proceeding to or from duty.

(c) The company shall provide bar soap or detergent to the employee for the purpose of washing the uniform, but the employee will be required to maintain his/her uniform in a tidy and clean condition at all times. Employees who have resigned / terminated from employment will be required to return the company uniform on the last working day for the uniform is the property of the company.

11. PROTECTIVE CLOTHING

Protective clothing will be provided and used in accordance with the provisions of the Occupational Safety and Health Act, 2007.

Where an employee’s work place is in the cold room, the employer shall provide appropriate warm clothing.

It shall be mandatory for employees to acknowledge issuance of the protective clothing if so required by the employer.

12. MEDICAL TREATMENT

Medical Treatment shall be in accordance with the Employment Act, 2007 Section 34

13. REDUNDANCY

Definition of Redundancy

Where the employment of an employee is to be terminated on account of redundancy, the following principles shall apply:-

(a) The Company shall, one month prior to taking action, inform the Union of the intended redundancy giving the reasons for, and the extent of such redundancy. During the notice period, the Union shall reserve the right to make representations to the employer. In any case, all matters concerned with redundancy shall be subject to the procedures stipulated in the Labour Relations Act, 2007 laws of Kenya and the Employment Act.

(b) Company shall adopt the principles of “Last in first Out” provided that due regard to seniority in time, skill, ability and reliability of each employee belonging to the particular category of employees affected by the redundancy shall be considered.

(c) Any leave due to an employee(s) shall be paid in cash/cheque.

(d) The redundant employee(s) shall be entitled to notice or pay in lieu of such notice as outlined in Clause 16.

(e) An employee declared redundant shall be entitled to severance pay at the rate of 15 days pay for each completed year of service.

14. WARNING

An employee whose work or conduct is unsatisfactory or commits an offence which does not warrant instant dismissal shall be warned in writing and the following procedure shall apply.

(a) The first and the second warning shall be entered in the employee’s employment record and the shop-steward of the Union informed accordingly.

(b) The second warning shall be copied to the Branch Secretary of the Union.

(c) If an employee who has received two written warnings commits a third offence, he/she shall be disciplined in accordance with the law.

Provided that where an employee has completed one year from the date of the second warning without committing any further offence, any warnings entered in his/her employment record shall be cancelled.

15. TRANSFERS

(a) The Company has the sole right to transfer an employee from one Branch to another or from one Department to another in accordance with the exigency of service.

(b) Where an employee is transferred from one town to another at the request of the employer, the employee shall be paid the equivalent to Kshs.20,000/- as relocation cost; where the transfer is at the request of an employee, the employer shall provide Kshs.10,000/-.

(c) An employee who is to be transferred from one town to another shall in normal circumstances, be given advance notice of not less than one month by the employer.

(d) For internal transfer within the same City, Municipality or locality an employee shall be given one (1) day notice except where there are emergency circumstances, no advance notice will be required.

16. TERMINATION OF EMPLOYMENT

After the completion of the probationary period, services may be terminable by either party by giving notices as follows:-

(a) Employees with services of upto ten (10) completed years of service – one month’s notice or pay in lieu of notice thereof.

(b) Employees with over ten (10) years service, two (2) months notice or pay in lieu thereof.

17. SUMMARY DISMISSAL

An employee shall be liable to summary dismissal for gross misconduct defined in the Employment Act 2007, namely:-

(i) If without leave or other lawful cause, an employee absents himself/herself from the place proper and appointed for the performance of his/her work for a period exceeding seven (7) days.

(ii) If, during working hours, by becoming or being intoxicated, an employee renders himself/herself unwilling or incapable to properly perform his/her work.

(iii) If an employee wilfully neglects to perform any work which it was his/her duty to have performed, or if he/she carelessly and improperly performs any work which from its nature it was his/her duty, under his/her contract to have performed carefully and properly.

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

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

(vi) 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 (14) days either released on bail or bond or otherwise lawfully set at liberty.

(vii) If an employee commits, or on reasonable and sufficient grounds is suspected of having committed a criminal offence against or to the substantial detriment of his/her employer or his/her employer’s property.

18. SALARY ADVANCES

The Company shall pay mid-month advances to those employees who make a written application for the same, which advances shall not exceed one half of the net monthly payable salary of the employee.

19. LEAVE TRAVELLING ALLOWANCES

An employee travelling on his/her annual leave shall be entitled to a leave travelling allowance of Kshs.3,000/= (Three Thousand) to be paid upon completion of the annual leave.

20. FUNERAL EXPENSES

i) In the event of death of an employee, the employer shall contribute Kshs.30,000/=towards funeral expenses to the nominated next of kin.

ii) Allow up to three (3) nominated workmates of the deceased to attend burial. Any such nominated workmate shall be given Safari Allowance as per Clause No. 25 and up to a maximum of 2 days absence. Such workmates will be nominated by the deceased’s colleagues and will be approved by the line manager.

iii) The employer shall obtain from all its employees the full names, ID numbers and addresses of the nominated next of kin.

21. CERTIFICATE OF SERVICE

This shall be dealt with in accordance with Section 18 of the Employment Act, 2007.

22. ACTING APPOINTMENT

(a) Where an employee is required to perform work in a higher grade than his/her current grade, he/she shall be notified in writing.

(b) If he/she performs for more than 30 consecutive days, he/she shall be entitled to an acting allowance of not less than the difference between his/her salary and the entry point of the grade he/she is acting.

(c) If he/she acts continuously in that position for a period of three (3) months he/she shall be confirmed in that position.

23. PROMOTION

The Company shall recognize hard work and give promotions based on its merits criteria. These could be a combination of the job done, duration of experience service with the Company, education attainment, professional qualification, vacancies available and quality of work performed. Promotion from one grade to another is not automatic.

24. LONG SERVICE SALARY INCREMENT

Long service salary increment will be paid to employees as follows:-

Years of service Kshs.

After 5 years continuous service, a salary increment of 500/=

After 10 years continuous service, a salary increment of 600/=

After 15 years continuous service, a salary increment of 700/=

After 20 years continuous service, a salary increment of 800/=

After 25 years continuous service, a salary increment of 900/=

After 30 years continuous service, a salary increment of 1,000/=

25. SAFARI ALLOWANCE

Employees who are required to work temporarily outside their principle place of work shall be entitled to safari allowance as follow:-

Kshs.

(1) Breakfast200.00

(2) Lunch 250.00

(3) Dinner 250.00

(4) Accommodation 750.00

Total 1, 450.00

26. PENSION

(i) There shall be a pension scheme established in accordance with the Retirement Benefits Authority (RBA) rules and Parties shall contribute as follows:

(ii) All unionized employees shall contribute 5% of their basic salary to the pension scheme while the employer shall contribute 5% of the respective employee’s basic salary to the Scheme.

27. RETIREMENT

(a) Employees may retire under the following conditions:

(i) Compulsory retirement on attaining 58 (fifty eight) years

(ii) Voluntary retirement at the age of 50 (fifty) years

(iii) On certified medical grounds at any age.

(b) (i) A retiring employee shall be entitled to all benefits accruing under Clauses 16 and 26.

(ii) Upon retirement under the conditions stated in Clause 27a above, the company will provide an amount of Kshs 10,000/- to the retiree as relocation allowance.

28. PAID LEAVE FOR TRADE UNION FUNCTIONS

Provided that the Union gives reasonable written notice, the employer shall arrange to release, on full pay, up to (3) three shop-stewards who may be required to attend scheduled legitimate Meetings or Seminars and other specified Educational Programs for a maximum of six (6) working days which will be shared amongst them. Such Shop stewards shall receive Safari Allowance as provided for in Clause 25 of this Agreement.

29. BONUS

Bonus pay as per custom and practice, at the discretion of management.

30. EFFECTIVE DATE AND DURATION

This agreement shall be effective from 1st day of April, 2013 and it shall remain in force for a period of 24 months. Thereafter, it shall continue in force until it is amended by mutual agreement between the two parties. Provided that any party wishing to amend it gives the other party one month’s written notice of such intention giving details of the amendment so required.

SIGNED: FOR AND ON BEHALF OF THE COMPANY

NAME: VAISHALI JAIN…………………………..

HEAD OF FINANCE

NAME: CHARLES MIGWA…………………………

HUMAN RESOURCES MANAGER

SIGNED: FOR AND ON BEHALF OF THE UNION

BONIFACE M.KAVUVI………………………………

SECRETARY GENERAL

MIKE O.ORANGA…………..………………………..

BRANCH SECRETARY

TOBIAS ONYANGO………………………………….

GODFFREY NDIEGE………………………………..

SHOPSTEWARDS

IN THE PRESENCE OF:

GEORGE AMBUCHE………………………………..

INDUSTRIAL RELATIONS OFFICER

SIGNED AT NAIROBI THIS ……………….. DAY OF …………………. 2013.

Autoxpress Limited - 2013

Start date: → 2013-04-01
End date: → 2015-03-31
Name industry: → Trade, fuelling and repair of motor vehicles
Name industry: → Wholesale trade of motor vehicle parts and accessories
Public/private sector: → In the private sector
Concluded by:
Name company: →  Autoxpress Limited
Names trade unions: →  COTU - Kenya Union of Commercial Food and Allied Workers

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 25 %
Maximum days for paid sickness leave: → 60 days
Provisions regarding return to work after long-term illness, e.g. cancer treatment: → 
Paid menstruation leave: → No
Pay in case of disability due to work accident: → No

WORK AND FAMILY ARRANGEMENTS

Maternity paid leave: → 13 weeks
Maternity paid leave restricted to 100 % of basic wage
Job security after maternity leave: → Yes
Prohibition of discrimination related to maternity: → Yes
Prohibition to oblige pregnant or breastfeeding workers to perform dangerous or unhealthy work: → 
Workplace risk assessment on the safety and health of pregnant or nursing women: → 
Availability of alternatives to dangerous or unhealthy work for pregnant or breastfeeding workers: → 
Time off for prenatal medical examinations: → 
Prohibition of screening for pregnancy before regularising non-standard workers: → 
Prohibition of screening for pregnancy before promotion: → 
Facilities for nursing mothers: → No
Employer-provided childcare facilities: → Yes
Employer-subsidized childcare facilities: → No
Monetary tuition/subsidy for children's education: → No
Paid leave per year in case of caring for relatives: → 5 days
Paternity paid leave: → 14 days

EMPLOYMENT CONTRACTS

Trial period duration: → 180 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: → 45.0
Working days per week: → 6.0
Paid annual leave: → 23.0 days
Paid annual leave: → 4.0 weeks
Paid bank holidays: → Christmas Day (25th December), Army Day / Feast of the Sacred Heart/ St. Peter & Paul’s Day (30th June), Chile Independence Day (18th September), John Chilembwe Day (15th January)
Rest period of at least one day per week agreed: → Yes
Provisions on flexible work arrangements: → 

WAGES

Wages determined by means of pay scales: → No
Provision that minimum wages set by the government have to be respected: → 
Adjustment for rising costs of living: → 0

Wage increase

Wage increase: → 10.0 %
Wage increase starts: → 2014-04

Once only extra payment

Once only extra payment due to company performance: → No

Premium for overtime work

Premium for Sunday work

Premium for Sunday work: → 100 %

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
 
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