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MEMORANDUM OF AGREEMENT BETWEEN ALLTEX (EPZ) LIMITED (HEREINAFTER REFERRED TO AS THE EMPLOYER) AND TAILORS AND TEXTILES WORKERS UNION (HEREINAFTER REFERRED TO AS THE UNION)

IN THE MATTER OF WAGES, SALARIES AND OTHER TERMS AND CONDITIONS OF SERVICE

PREAMBLE:

Whereas by terms of the Recognition and Negotiating Procedure Agreement signed between the Employer and the Union, it was agreed that the employer has recognized the Union as a properly constituted body and sole labour organization representing the interests of the employees and the employer.

And whereas it was agreed that the rates of wages, salaries and general terms and conditions of employment to be paid and provided to employees by the Employer shall be as negotiated and agreed between the Employer and the Union or therefore the Employer and the Union meeting together in a free heart and voluntary association agree to enter into agreement as stated under the matters of terms and conditions of service negotiated between

them at the Joint Negotiating Committee.

1. APPLICATION:

This agreement shall apply to all unionisable employees of Alltex (EPZ) Limited but shall exclude employees as may be defined in the Industrial Relations Charter Appendix "C".

2. PROBATIONARY PERIOD:

The first three months of an employee's engagement shall be treated as probationary period after which the employee should be confirmed into permanent employment. Where an employee cannot perform to the expected standards, his/her services shall be terminated by giving seven (7) day's notice or pay in lieu and the Union shall be informed in writing.

1. APPOINTMENT LETTER/CONTRACT LETTERS:

The employer shall issue an appointment letter stipulating the terms and conditions of services of an employee upon the employee's completion of the probationary period.

2. HOURS OF WORK:

The normal working week shall consist of forty five (45) hours of work. From Monday to Friday, eight (8) hours and five (5) hours on Saturday.

(i) Except in the case of shift work, an employee's normal working hours shall be eight (8) hours per day of five days of the week and five (5) hours on one day of the week.

(ii) An employee shall be entitled to one rest day in each week.

(iii) The exact arrangement of the working hours/week shall be at the discretion of the management - in consultation with the Union's representative.

3. OVERTIME:

Every employee who works for any time in excess of the normal hours of work specified in Clause 4 above, shall be entitled for the overtime, worked out at the following rates:-

(i) One and a half times the basic hourly rate in respect of any time worked in excess of the normal hours of work per week.

(ii) For time worked on any employee's normal rest day and Statutory Public Holiday, at twice the normal hourly rate.

(iii) Employees shall be informed two days in advance when they would be required to work overtime on a Public Holidays or on their rest day and in the event that an employee requests for permission to be absent on such occasion that shall not be unreasonably denied.

4. HOUSE ALLOWANCE:

Every employee who is not provided with free accommodation shall be entitled to a minimum house allowance of Ksh. 1,500/= or 15% of his Monthly salary, whichever is greater.

5. ANNUAL LEAVE:

(a) After the completion of twelve (12) month's continuous service with an employer, an employee will be entitled to 24 working days leave with full pay.

(b) Such leave will be taken at a time and duration convenient to the employer but the individual employee's circumstances may be taken into consideration.

(c) Where employment is terminated after the completion of three (3) or more months' continuous service during any leaving earning period, an employee shall be entitled to two (2) day's leave with pay for each completed month of service and pro-rata leave travelling allowance.

6. LEAVE TRAVELLING ALLOWANCE:

(a) After each of twelve months' continuous service an employee will be entitled to Kshs. 1,500/= (One Thousand Five Hundred) leave travelling allowance when proceeding on leave.

(b) Where an employee is required to work at the request of his employer instead of taking his/her annual leave in that year, such an employee shall be paid his full leave entitlement in cash, and leave travelling allowance as per paragraph (a) of this clause.

9. COMPASSIONATE LEAVE:

(a) An employee may be granted seven (7) days unpaid compassionate leave on application, at the discretion of the employer. The employer shall not unreasonably withhold such request.

(b) Compassionate leave may be by prior arrangement between the employee and the employer, and shall be treated as paid leave and subsequently set-off against the employee's annual leave, provided the employee has accumulated up to 7 days leave.

(c) Subparagraph (b) above shall not be applicable if the employer shuts down its factory for purposes of both annual leave and maintenance of machineries.

10. SICK LEAVE:

After three (3) consecutive weeks of service with the employer and subject to production of a medical certificate of incapacity from a medical practitioner in a registered hospital or a health center or dispensary approved by the employer, an employee shall be entitled to sick leave with pay

In any one year as follows:-

(a) First 35 days with full pay

(b) Next 35 days with half pay.

Provided that an employee shall not be eligible for sick leave in respect of any incapacity due to gross negligence on his/her part and such leave shall not be carried over to the next year.

11. PUBLIC HOLIDAYS:

(a) An employee shall be granted leave on the gazette public holidays with full pay.

(b) If an employee works on a public holiday, which is not his/her rest day, then he/she shall be paid at double his/her hourly rate.

(c) When a public holiday falls on an employee's rest day, the employee shall be paid double (2 times) his/her hourly rate if she/he works on the public holiday and rests on another day.

12. CERTIFICATE OF SERVICE:

Every employee shall be given a certificate of service by his employer upon termination of his employment, unless such employment has not been in force for a period of less than four consecutive weeks.. Every such certificate shall contain:-

(a) Name of the employer and postal address.

(b) Name of the employee.

(c) The date when employment commenced.

(d) The nature and usual place of employment.

(e) The date when employment ceased.

13. DISCIPLINARY MATTERS:

(a) Suspension

The employer reserves the right to suspend, without pay, an employee from employment upto a MAXIMUM of 14 days pending investigations into alleged gross misconduct or other offences.

Should the employee be found to have committed a gross misconduct, then he/she shall be summarily dismissed from the date of suspension. Should the employee be found innocent of the gross misconduct, then he/she shall be reinstated forthwith without loss of privileges and paid for the days he/she was suspended

(b) Warning

An employee whose work or conduct is unsatisfactory or who otherwise commits default which in the opinion of the employer does not warrant instant dismissal shall be warned in writing and the following procedure shall apply:-

(i) The first, second and third warning shall be entered in the employee's record and the shopsteward informed accordingly.

(ii) The third warning shall be copied to the Branch Secretary of the employee's union.

(iii) If an employee who has already received three warnings commits a fourth default, he/she shall be liable to summary dismissal.

Provided that an employee completes three hundred and sixty five consecutive days from the date of third warning without further default, any warning entered in his/her employment record shall be deemed cancelled.

14. 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 enumeration of such matters shall not preclude the employer or an employee from respectively alleging or disputing whether the facts giving rise to the same, or whether any other matter not mentioned in this section, constitute justifiable or lawful grounds for the 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 properly to perform his work and a medical practitioner confirms the same.

(c) If an employee willfully neglects to perform any work which is his duty to have performed or if he carelessly and improperly performs any work which from its nature 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/colleague or to a person placed in authority over him or his subordinate staff.

(e) If an employee knowingly fails, or refuses, to obey a lawful and proper command which was within the scope of his duty to obey, issued by his employer or a 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 cognizable offence punishable by imprisonment and is not within fifteen days either released on bail or on bond or otherwise lawfully set a liberty.

(g) 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 employer or his employer's property.

15. MATERNITY LEAVE:

(i) A female employee shall be entitled to three months maternity leave (ninety (90) consecutive days) with full pay and with prior arrangement with the employer may be eligible for additional one month unpaid leave (thirty (30) consecutive days). Such leave will not be unreasonable denied.

Provided that, a female employee who has taken her maternity leave shall NOT forfeit her annual leave in that year.

(ii) A female employee in receipt of maternity leave shall not incur any loss of privileges or entitlement during such period.

16. BASIC MINIMUM WAGES:

With effect from 1st October 2011 the basic minimum wages shall be as follows:- 10% above the Government General Wages Order of each year

16. GENERAL WAGE INCREMENT:

With effect from 1st October 2009 all unionisable employees in the service of the employer will receive on their basic wage as at 30th September, 2009 a general wage increase of 18% to cover the period 1st October, 2009 to 30th September, 2011, to be implemented as follows:-

(a) An increment of 9% on their basic wage, effective from 1st October, 2009

(b) An increment of 9% on their basic wage, effective from 1st October, 2010

17. PAYMENT OF WAGES:

Payment of wages shall be made on a working day and during working hours, at or near to the place of employment or at such other place as may be agreed to between the employer and the employee. Should such payment day fall on a Sunday or public holiday, such wages shall be paid on the last day prior to such Sunday or Public holiday.

18. PROTECTIVE CLOTHING:

The employer shall provide protective clothing and gear wherever applicable. Where uniform has been provided the employer shall provide one bar of soap to launder the uniform.

19. NIGHT SHIFT ALLOWANCE:

Employees scheduled to perform their duties on night shift, shall be paid a night shift allowance of Ksh. 5/= per night. Night shift is defined as hours between 8.00 p.m. and 6.00 a.m.

20. TOOLS:

It shall be the responsibility of the employer to provide working tools to the employees.

22. RETIREMENT AGE

The normal retirement age for all employees shall be 55 years.

23. REDUNDANCY:

"Redundancy" means the loss of employment, occupation job or career by involuntary means through no fault of an employee, involving termination of employment at the initiative of the employer, where the services of an employee are superfluous, and the practices commonly known as abolition of office, job or occupation.

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

(a) The Union of which the employee is a member and the Labour Officer of the area shall be informed of the reasons for and the extent of the intended redundancy.

(b) The employer shall have due regard to seniority in time and to the skill, ability and reliability of each employee belonging to a particular category of employees affected by redundancy.

(c) No employee shall be placed at a disadvantage for being or not being a member of a trade union.

(d) Any leave due to any employee who is declared redundant shall be paid for in cash.

(e) A redundant employee shall be entitled to one month's notice or one month's salary in lieu of notice.

(f) An employee declared redundant shall be entitled to severance pay at the rate of twenty (20) day's pay for each completed.

24. GRATUITY/ PENSION:

After completion of two (2) years' service with the employer, an employee shall be paid gratuity at 16 days upon termination of employment by the employer, death, normal retirement at 55 years of age or retirement on medical grounds. However, no employee shall qualify for gratuity if he/she is dismissed for gross misconduct.

25. NIGHT TRANSPORT:

The employer shall provide night transport for employees leaving work after 8.30 p.m. to a designated drop-off point nearest to their residence provided that those whose who have more favourable arrangements shall continue with such alternative arrangement.

26.DEATH OF AN EMPLOYEE:

Upon the demise of an employee while still in service, the employer shall be required to pay Ksh. 20,000/= towards the funeral and burial arrangements of the dead employee.

27. PAID EDUCATIONAL LEAVE:

The employer shall grant paid educational leave for union activities to the shopstewards and union representatives up to a maximum of 14 days in a calendar year. This leave shall be seminars and workshops.

28. ACTING ALLOWANCE:

When an employee is required in writing to act in a position of higher grade for a period of ten days and more, he/she shall be paid the difference between the basic salary of his/her grade and the basic salary of the job in which he/she is acting.

29. TARGETS:

(i) The employer through the expertise of a competent officer like the Time and Motion Study Officer or an Industrial Engineer may establish production targets for various styles in the lines and/or other areas of operation like cutting, washing, finishing e.t.c wherever so fixed, the targets in question shall remain constant for the particular style and employees concerned shall be required to achieve the targets production for the regular hours of the day, within that time.

(ii)Any employee, who fails to achieve the target for no acceptable reason, may be allowed to do so at his/her own time on the same day, without overtime payment and it shall be within the employer's rights to subject such an employee to disciplinary action for inefficiency if he/she refuses to work on his/her own time to complete the day's target.

(iii) The union will have the right to involve a technical officer from the Ministry of Labour for joint adjudication exercise if the set targets are deemed to be high. While such exercise is in process, the employee shall be expected to continue working towards achievement of the set targets.

30. TERMINATION OF EMPLOYMENT:

It shall be a condition in every contract that such contract shall be terminable by not less than one (1) month's notice to be given by either party in writing or otherwise by payment by either party, in lieu of notice. During the probation period, seven days' notice shall be given by either party or an equivalent payment in lieu of notice.

31. SEXUAL HARRASSMENT:

Every employee shall be protected from sexual harassment, any unsolicited or unwelcome verbal comment, gesture or physical contact of a sexual nature.

Therefore:

(a) No employee shall be subject to sexual harassment either by somebody in authority over him/her as a condition of engagement, continued employment, promotion, salary progression, reward or any other consideration or by his/her fellow workmates as a condition as social acceptance at work.

Any case of sexual harassment shall be immediately reported by the victim to a designated officer and perpetrator shall be dealt with in accordance with the organization's disciplinary procedures after having been given an adequate opportunity to defend himself/herself against the charges.

(b) Sexual harassment shall include any of the following; if the person doing it, knows or ought to have known that it is unwelcome.

(i) Making a request or exerting pressure for sexual activity or favours.

(ii) Making intentional or careless pressure for sexual activity or favours.

(iii) Making gestures, noises, jokes or comments, including innuendoes, regarding another person's sexuality.

Each employer shall appoint a designated person preferably a Senior Lady Manager to whom the victims of sexual harassment may report the cases for appropriate action.

32. HIV/AIDS:

No employee living with HIV/AIDS shall his/her services terminated purely on his sero-positive status and there should be no obligation on the part of the employee to inform his employer about his sero-positive status. If fitness to work is impaired by HIV related illness, reasonable alternative working arrangements should be made for the affected employees. As with many other illnesses, persons with HIV-related illnesses should be able to work as long as they are medically fit or available, to work or until they are declared unfit to work by a registered medical practitioner.

Provided that nothing in the clause shall derogate the right of the employer to terminate for justifiable cause the services of those living with HIV/AIDS especially for continuous non-performance or any other justifiable reasons.

32. MEDICAL TREATMENT:

As per section 34 of the Employment Act, 2007

33. EFFECTIVE DATE:

The effective date of this agreement shall be 1st October, 2009.

34. DURATION OF THE AGREEMENT:

This agreement shall remain in force for a period two years upto 30th September, 2011. Thereafter it shall continue in force until it is amended by mutual agreement between the two parties, provided that the party wishing to amend it gives the other party three (3) months notice of such intension in writing the details of the amendment required.

35. APPLICABLE LAW:

The provisions of this agreement shall be construed to be in accordance with the provisions of the Laws of Kenya.

SIGNED FOR AND ON BEHALF OF ALLTEX (EPZ) LIMITED

REV. JOEL K. CHEBII, (OGW)

GENERAL SECRETARY

HASSAN ABDULLAHI

BRANCH SECRETARY

SIGNED FOR AND ON BEHALF OF TAILORS & TEXTILES WORKERS

MARTHA KEMUNTO

SHOPSTEWARD

FEDERATION OF KENYA EMPLOYERS

SIGNED AT NAIROBI THIS date 27 July 2012

KEN Alltex (EPZ) Limited - 2012

Start date: → 2012-07-27
End date: → 2014-10-30
Name industry: → Manufacturing
Name industry: → Manufacture of textiles
Public/private sector: → In the private sector
Concluded by:
Name company: →  Alltex (EPZ) Limited
Names trade unions: →  COTU - Tailors and Textiles Workers Union

TRAINING

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

SICKNESS AND DISABILITY

Maximum days for paid sickness leave: → 70 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: → No
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: → 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

GENDER EQUALITY ISSUES

Equal pay for work of equal value: → No
Discrimination at work clauses: → No
Equal opportunities for promotion for women: → No
Equal opportunities for training and retraining for women: → No
Gender equality trade union officer at the workplace: → No
Clauses on sexual harassment at work: → Yes
Clauses on violence at work: → No
Special leave for workers subjected to domestic or intimate partner violence: → No
Support for women workers with disabilities: → No
Gender equality monitoring: → 

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 day: → 8.0
Working hours per week: → 45.0
Working days per week: → 6.0
Provisions on flexible work arrangements: → 
 
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