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COLLECTIVE BARGAINING AGREEMENT

BETWEEN

UCHUMI SUPERMARKETS LIMITED (HEREINAFTER REFERRED TO AS THE “COMPANY”) OF THE FIRST PART

AND

THE KENYA UNION OF COMMERCIAL, FOOD AND ALLIED WORKERS (HEREINAFTER REFERRED TO AS THE “UNION”) OF THE SECOND PART

IN THE MATTER OF WAGES AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT

The Company and the Union meeting together in a free heart and voluntary association, agree and enter into foregoing Agreement negotiated between them at the Joint Negotiating Committee.

1.A. BASIC MINIMUM WAGES (EXCLUSIVE OF HOUSING ALLOWANCE AND TRANSPORT )

All unionisable employees who are not provided with free housing accommodation and transport allowance shall be paid a house allowance of 25% of the basic pay and 15% as transport allowance of the gross pay.

ENTRY POINT
Category I

General labourer

Cleaner, messenger, gardener

Kshs. 8,800.00

Category II

Packer / Cleaner Grade

Gatekeeper, cook

Kshs. 10,000.00

Category III

Copy typist, shop assistant, baker assistant, Butcher/ meat cutter, Office assistant, left luggage attendant.

Kshs. 11,750.00

Category IV

Artisan Grade Iii, Display Artist, Telephone Operator, Receptionist, Shop Assistant Grade 2, General Clerk, Copy Typist Grade 2, Store Keeper

Kshs. 13,400.00

Category V.

Customer Service Desk Assistant, Shop Assistant Grade 1, Security Man/ Woman, Corporate Sales Assistant, Senior Cook, Driver Light Van.

Kshs. 14,500.00

Category VI

Artisan grade 2, driver Medium Size Vehicle van

Kshs. 15,800.00

Category VII

Artisan Grade 1, Accounts Clerk, Receiving Clerk, Data Entry Clerk, Documentary Assistant, Item Master, Section Head, Driver Heavy Commercial, Cashier, Baker, Back Office Assistant, ICT Assistant, Administration Assistant Clerk, Human Resource Assistant, Merchandizer and Dispatch Clerk.

Kshs. 19,500.00

NB: Provided that the basic minimum wages shall be above the statutory rates of pay by Kshs.150/=.

Wage Increase

All unionisable employees in the employment of the Company, who are confirmed in their appointment as at 30th June 2012, will receive a gross wage increase of 10% from 1st July, 2012 to cover the first year. All unionisable employees in the employment of the Company, who are confirmed in their appointment as at 30th June, 2013 will receive a gross wage increase of 10% from 1st July, 2013 to cover the second year.

NB: The wages payable are consolidated and shall include both housing and transport in the following proportion. (Basic wages 60% Housing 25% Transport 15%)

2.HOUSE ALLOWANCE

House Allowance is included in the gross pay and paid at the ratio of 25% of gross pay.

3.TRANSPORT ALLOWANCE

Transport Allowance shall be paid at the ratio of 15% of gross pay which already is included therein.

4.CASUAL EMPLOYMENT

(a) The daily rate for a casual employee shall be Kshs.150 above the gazzetted minimum wages for the grade he/she is employed.

(b) Where a casual employee has remained in employment for a period of more than three (3) continuous months in a year, such a casual employee shall be converted to permanent terms of service.

5.PROBATION PERIOD

(a) All employees shall be required to serve a probation period of 3 (three) months before being confirmed in their appointment. 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 a letter of appointment detailing terms and conditions of his/her employment.

6.HOURS OF WORK

The normal working week shall consist of 45 hours of work exclusive of meal, breaks, provided that:-

(a) An employee shall be entitled to not less than one rest day each week.

7.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 5 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. Provided that employees wishing to opt for additional time off in respect of hours worked during a Public Holiday shall be granted such time off with full pay.

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

8.ANNUAL LEAVE

After each period of twelve (12) months continuous service with the Company, an employee shall be entitled to annual leave of twenty two (22) working days with full pay on the anniversary date of the employee’s employment. Where employment is terminated after the completion of two or more consecutive month’s service, the employee will be entitled to two (2) days leave with full pay for each completed month of service in such period. The employee shall receive pay in lieu of such leave.

9.SICK LEAVE

After the probationary period, and subject to production of a Medical Certificate signed by the approved Medical Practitioner, an employee will be entitled to sick leave in any one year as follows:-

(i) 40 days with full pay

(ii) 20 days with half pay

10.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 sixty (60) days, the provisions of Clause No. 8 above shall apply.

(ii) A male employee shall be entitled to fourteen (14) days paternity leave with full pay without forfeiture of annual leave entitlement in that particular year.

11. 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 entitlement under paragraph 8 of this Agreement 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 seven (7) days compassionate leave with pay in any one year.

12. PROTECTIVE CLOTHING

Protective clothing will be provided 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.

13. MEDICAL TREATMENT

The Company will pay the expenses of medical treatment as follows;

(i) Out-patient

The Company shall re-imburse medical expenses for its employees and their families up to a maximum of Kshs. 20,000/= per year in respect of outpatient treatment and drugs. Such treatment may be obtained at National Hospital Insurance Fund recognized hospitals for the employee’s spouse and four children under 18 years.

(ii) Inpatient

The Company shall meet in full medical expenses incurred by the employee, his/her spouse and four children under 18 years for in-patient treatment obtained from National Hospital Insurance Fund recognized hospitals up to a maximum of Kshs. 47,000/= per year.

(iii) Expenses on dental, optical, spectacles, maternity will be paid within the limit of both out and in patient

NB: Parties have agreed that this will be reviewed and discussed during the next medical year from October 2013

14. 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, 2007 laws of Kenya.

(b) The 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 entitled to notice or pay in lieu of such notice as outlined in Clause 17.

(d) The redundant employee(s) shall be entitled to notice of pay in lieu of such notice as outlined in Clause 17.

(e) An employee declared redundant shall be entitled to severance pay at the rate of 17 days pay for each completed year of service.

15 . 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 Shopsteward of the Union informed accordingly.

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

(c) If an employee who has received two written warnings commits a third offence, he/she may be liable to termination.

Provided that where an employee completed three hundred and sixty five days, from the date of second warning without committing further offence, any warnings entered in his/her employment record shall be cancelled.

16. 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 County/Town to another at the request of the employer, the employer shall provide transport for the employee, his/her family and personal effects from the old residence to the new residence. In addition the employee shall be entitled to the equivalent of one month gross pay as disturbance allowance, where the transfer is at the request of an employee, the employer shall provide transport for the employee, his/her family and personal effects. However, no disturbance allowance will be paid

(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 two (2) weeks by the employer.

(d) Internal transfer within the locality etc, an employee shall be given one (1) day notice except where there are emergency circumstances, the notice will not hold.

17. 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 up to five (5) completed years of service – one month’s notice or pay in lieu of notice thereof.

(b) Employees with over five (5) years service two month’s notice or pay in lieu thereof.

(c) An employee whose services are terminated may qualify for and receive benefits under the Uchumi Supermarkets Limited Staff Retirement Benefits Scheme in accordance with Rules of the Scheme.

18. SUMMARY DISMISSAL

An employee shall be liable to summary dismissal for gross misconduct defined in the Employment Act, 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/he 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 properly to perform his/her work.

(iii) If an employee willfully neglects to perform any work which it was his/her duty to have performed, or if he/she carelessly and improperly performs any work 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 arrest given by or underwritten 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 offence against or to the substantial detriment of his/her employer or his/her employer’s property.

19. FUNERAL EXPENSES

(i) In the event of death of an employee, the employer shall provide Kshs. 70,000/= towards funeral expenses to cater for all funeral expenses.

(ii) Allow three (3) nominated workmates of the deceased to attend burial. Any such nominated workmate to be given Safari Allowance as per Clause No. 23 of the CBA.

20. CERTIFICATE OF SERVICE

This shall be dealt with in accordance with Section 51 of the Employment Act which reads:-

(1) Every employee shall be given a Certificate of Service by his/her employer upon the termination of his/her employment unless such employment has continued for a period less than four consecutive weeks and every such certificate shall contain:-

(a) The name of the employer and his/her postal address

(b) The name of the employee

(c) The date when the employment commenced

(d) The nature and usual place of employment

(e) The date when employment ceased and

(f) Such other particulars as may be prescribed.

(2) Subject to Subsection (1) of this Section no employer is bound to give to any employee any testimonial reference or certificate relating to the character or performance of an employee.

(3) Any employer who willfully by neglect fails to give an employee a Certificate of Service in accordance with Subsection (1) of this Section, or who in a Certificate of Service includes a statement which he/she knows to be false, shall be guilty of an offence.

21. ACTING APPOINTMENT

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

(b) If he/she performs for more than 15 consecutive days, he/she shall be entitled to an acting allowance of 15% of not less than the difference between his/her basic 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 permanently.

22. PROMOTION

Promotion from one grade to another is not automatic and shall be decided upon by the company taking into account the job done and the employee’s education attainment, length of service and standard of work. Promotion on merit to be considered.

23. SAFARI ALLOWANCE

Kshs.

(1) Breakfast300.00

(2) Lunch 400.00

(3) Dinner 400.00

(4) Accommodation 1,500.00

TOTAL 2,600.00

24. PROVIDENT FUND

(i) Provident fund shall continue as per the current practice.

(ii) All unionisable employees should contribute 5% of their gross salary to the pension scheme from 1st August 2011, while the employer shall contribute 7.0% of the respective employee’s gross salary to the Scheme.

NB. Provident fund contributions will be based on gross pay.

25. RETIREMENT

(a) Employees may retire under the following conditions:

(i) Compulsory retirement on attaining 60 (Sixty) 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 Clause 24.

(ii) Transport to the new location shall be provided by the employer.

26. PAID LEAVE FOR TRADE UNION FUNCTIONS

Provided that the Union gives reasonable written notice, of not less than seven days the employer shall arrange to release, on full pay, Shopstewards who may be required to attend scheduled legitimate Meetings or Seminars and other specified Educational Programmes. Such Shopstewards will receive Safari Allowance as provided for in Clause 23 of this Agreement.

27. EFFECTIVE DATE AND DURATION

This agreement shall be effective from 1st day of July, 2012 and it shall remain in force for a period of 24 months. Thereafter, it shall continue in force until is amended by mutual agreement between the two parties. Provided that any party wishing to amend it gives the other party one month’s notice of such intention giving in writing the detail of the amendment so required.

N.B :- The Following issues were not concluded :-

1.Uniforms

2.Salary advance.

3.Leave Travelling Allowance.

4.Night Shift/meals allowance

5.Long service increment.

Once concluded a supplementary agreement shall be attached to the agreement.

SIGNED:FOR AND ON BEHALF OF THE COMPANY

…………………………..

GROUP CHIEF EXECUTIVE OFFICER

……………………….

HUMAN RESOURCES MANAGER

SIGNED:FOR AND ON BEHALF OF THE UNION

…………………………..

SECRETARY GENERAL

…………………………

BRANCH SECRETARY

……………………….

SHOPSTEWARD

1. ………………………………………….

2…………………………………………..

3…………………………………………..

IN THE PRESENCE OF:

L.W KARIUKI

…………………………….

HEAD OF INDUSTRIAL RELATION SERVICES

FEDERATION OF KENYA EMPLOYERS

SIGNED AT NAIROBI THIS ……………….. DAY OF …………………. 2012

KEN Uchumi Supermarkets Limited - 2012

Start date: → 2012-07-01
End date: → 2014-06-30
Name industry: → Retail trade, Other
Public/private sector: → In the private sector
Concluded by:
Name company: →  Uchumi Supermarkets Limited
Names trade unions: →  COTU - Kenya Union of Commercial Food and Allied Workers

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 28 %
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: → 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: → No
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: → 7 days
Paternity paid leave: → 14 days

EMPLOYMENT CONTRACTS

Trial period duration: → 90 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: → 22.0 days
Paid annual leave: → 3.5 weeks
Paid bank holidays: → Easter Monday, Army Day / Feast of the Sacred Heart/ St. Peter & Paul’s Day (30th June), Chile Independence Day (18th September), John Chilembwe Day (15th January), Human Rights Day / Vernal Equinox Day (21st March)
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
Wages specified according to skill level: → 0
Wages specified according to job title: → 1
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: → 2013-07

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Premium for Sunday work

Premium for Sunday work: → 200 %

Allowance for commuting work

Allowance for commuting work: → 15 % of basic wage

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
 
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