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MEMORANDUM OF AGREEMENT BETWEEN BOTANICAL EXTRACTS EPZ LTD AND KENYA CHEMICAL AND ALLIED WORKERS’ UNION

1. PREAMBLE

The terms and conditions of employment set out in this Agreement shall be observed by the parties to it, and shall apply to all employees covered by the Recognition Agreement signed between the parties and as covered by the definition given by the Union Registered Constitution.

2. EMPLOYEES IN ACTING CAPACITY

An employee who is temporarily appointed or promoted to any acting capacity that carries a higher rate of pay than the job in which he/she is normally employed shall receive the difference between such higher wage and his or her normal rate and shall revert to his or her initial rate for the grade in which he/she is employed to work, provided that such employee had acted in that capacity for a period not less than 7 days.

3. CASUAL/CONTRACT EMPLOYMENT

The company may employ a person on casual or contract terms for a period not exceeding three (3) months. A casual/contract employee shall be paid at the appropriate daily rate which is not less than consolidated minimum wage.

4. WORKING HOURS

An employee shall normally be required to work, whether on shift or otherwise, a total of 45 hours spread over 6 days per week, exclusive of meal break hours, provided that, such employee who is required to work in excess of such hours shall be paid for such excess hours at the appropriate rate as provided by Clause 5 of this agreement.

5. OVERTIME

Overtime rates shall be as follows:-

a)For hours worked on week-days in excess of hours set out in Clause 4 – time and a half.

b)For hours worked on a rest day and gazetted public holidays- Double time.

6. GAZETTED PUBLIC HOLIDAYS

An employee shall normally be granted leave with full pay on Gazetted public holidays provided that an employee who is required to work on such holidays shall be paid double rate as provided by Clause 5 above.

7. ANNUAL PAID LEAVE

a) Employees shall be entitled to 24 working days annual leave.

b) In the event of Gazette Public Holidays falling within the leave period such public holidays shall be added to the leave entitlement.

c) The date of an employee’s leave shall normally fall after completion of every 12 months service from his/ her date of engagement, but will be taken at the convenience of the Company.

8. COMPASSIONATE LEAVE AND LEAVE OF ABSENCE

An employee desirous of taking leave on compassionate grounds shall with prior arrangement with the company be granted such leave and shall subsequently be set off against his/her annual leave. Such leave shall not unreasonably be refused nor unnecessarily delayed and shall normally be paid.

9. MATERNITY LEAVE

A female employee shall be entitled to three months maternity leave with full pay.

a) A woman who has taken three months maternity leave shall not forfeit her annual leave in that year.

b) Child-birth in respect of a woman employee shall not be deemed to be sickness.

c) A female employee who takes maternity leave shall not incur any loss of privileges during such period.

10. PATERNITY LEAVE

A male employee shall be entitled to 14 consecutive days paternity leave with pay.

11. SICK LEAVE

An employee who is unable to carry out his/ her duties by reason of sickness or injury falling without the provisions of the Work Injury Benefit Act 2007 shall be entitled, in any period of twelve months to full pay for the first 35 days and a further 35 days on half pay subject to the production of a medical certificate testifying the need of such absence. Sick leave with pay may be extended beyond the period stipulated above at the discretion of the Company.

12. INJURY BY ACCIDENT

An employee who is injured in an accident arising out of, and in the course of his/her employment shall be entitled to compensation in accordance with the provision of the Work Injury Benefit Act 2007.

13. LETTERS OF APPOINTMENT

Letters of appointment will be given to all employees.

14. CERTIFICATE OF SERVICE

On ceasing to be an employee of the Company an employee shall be issued with a certificate of service which shall contain the following information, provided that the Company shall reserve the right to withhold any information which it considers may prejudice the interests of either the Company or the employee.

a) The name of the employee

b) Identity card no.

c) The date when employment commenced

d) Trade of occupation

e) Date of termination of appointment.

15. TERMINATION OF EMPLOYMENT- NOTICE

Except where an employee is summarily dismissed for gross misconduct or other lawful cause as prescribed in the Employment Act- 2007and provided the probationary period has been completed, either party will be required to give 1 month notice in writing or pay in lieu.

16. WARNING PROCEDURE AND EMPLOYEE’S RESPONSIBILITIES

a) An employee who is guilty of an offence other than gross misconduct or other lawful cause of dismissal may be given a warning which shall be recorded in his/ her record card or history and which he/she will be required to sign. The signature or initial of an employee in history record card shall not mean that employee plead guilty of the offence recorded against such employee, but simply to confirm that has been recorded during employee’s presence or with his/her full knowledge of such warning in accordance with the procedure laid down by the recognition agreement between the Company and Union. An employee who receives three such warning may be liable to summary dismissal if the offence or any other lawful cause of which he/she seemed to be guilty is repeated provided that all such warnings shall be invalid from history record card of any employee after a period of twelve months from date of the last such warning being given to the employee.

b) All employees will adhere to the Government of Kenya laws as employee’s responsibilities are greater than any other trade and ethics, the Kenya Pharmacy and Poison Act, Good Manufacturing Practices and other legislation relating to the manufacture of drugs has been observed strictly. In performing their duties, all employees are required to strictly adhere to the Good Manufacturing Practices and Company practices and policies relating to the Manufacture, packing, storage and handling of all company property including stocks, record, fixed assets etc and all employees are expected to be mindful of the well-being and welfare of the Company.

c) All employees are required to be trained to create awareness on the Company’s rules and Good Manufacturing Practices as well as any other amendments to the same which may from time to time be issued by the Company. Such rules and practices shall form the terms and conditions of appointment and employment.

17. PROBATION

a) All employees shall be considered to be on probation for a period of three months from the date of engagement which may be extended for a further period of up to six months by mutual agreement. During this period services may be terminated by either party by giving 7 days notice or pay in-lieu thereof.

b) An employee, who has successfully completed probation as from his/her date of appointment by the Company, will be issued with a letter of confirmation.

18. DEFINITION OF EMPLOYEES

It is understood and agreed that the word “employees” in this agreement shall cover all employees regardless of sex unless specifically stated otherwise.

19. LEAVE TRAVELLING ALLOWANCE

During the validity of this agreement, an employee proceeding on authorized annual leave will be entitled to leave travel allowance as follows:-

1st year – Kshs 3500/-

2nd year – Kshs 4000/-

20. UNIFORMS OVERALLS AND PROTECTIVE CLOTHING

An employee who is required to wear uniform or overalls by nature of his/her work or in accordance with the provisions of the Occupational safety and Health Act, 2007, shall be issued with two pairs of uniforms or overalls as well as a pair of safety boots. The Company shall be responsible for laundering such uniforms, overalls and protective clothing and any other necessary personal protective equipment.

21. MEDICAL TREATMENT

The Company undertakes to pay the cost of such medical treatment and medical expenses in accordance with the provisions prescribed by the Laws of Kenya relative to employment of persons (Medical Treatment) Rules. The payment of medical expenses will be made to all employees of the Company excluding their spouses and children, provided that such illness is that covered by the Act.

22. REDUNDANCY

a) Definition

“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 any employee are superfluous, and occupation and loss of employment due to Kenyanization of a business.

b) Alternative Employment

In an effort to avoid redundancy, the Company will endeavour to arrange suitable alternative employment within the Company. This employment may not be of the same grade. If the alternative employment is not acceptable to the employee concerned, he/she will be classified as redundant and, thereafter eligible for the entitlement outlined in paragraph (f) of this Clause.

c) Consultations

In the event of redundancy, the Company undertakes to hold prior discussions with the Union concerning the reasons for and the extent of the intended redundancy.

d) Selection of Redundant employees

In deciding which employee is to be declared redundant the Company will assess the relative merits, ability and reliability of the affected employees, but when these factors are equal the discharge will be on the basis of seniority and membership or non-membership of the Union will not be a factor.

e) Re-engagement

Redundant employees will be given prior consideration for re-engagement by the Company should a vacancy arise according to their qualifications.

f) Entitlement of Redundant Employees

In the event of any employee being declared redundant, he/she will be entitled to:-

i. Normal notice or pay in lieu of notice as defined in this Agreement.

ii. Payment of wages, overtime and any other remuneration which may be due to him calculated up to the date on which he/she ceases work.

iii. Pro-rata leaves in accordance with this Agreement.

iv. Severance pay at the rate of 18 days for each completed year of service.

Provident Fund and other retirement benefits are in no way affected by these arrangements.

23. HOUSE ALLOWANCE

(All unionisable employees of the Company will get a house allowance of fifteen percent (15%) of one’s basic wage. This shall be incorporated in the gross pay.

24. GENERAL WAGE INCREASE

The company undertakes to effect a general wage increase to all unionisable employees .Employees earning salaries/wages above their respective grade rates as at time of signing this agreement shall also be a warded increment as follows:-

1. 1st year – 10 percent

2. 2nd year – 10.5 percent

25. FUNERAL EXPENSES

In case of death of an employee, the company shall contribute Kshs 30,000/- towards Funeral Expenses.

26. TRANSPORT ALLOWANCE

There shall be no transport allowance.

27. MEALS

The company shall continue providing meals i.e. tea at 10.00 am, lunch at 01.00 pm, and supper plus tea at 09.00 pm to all employees as has been the practice.

28. NIGHT SHIFT ALLOWANCE

All employees working night shift shall be paid Kshs 100.00 per night shift per person as from the 2nd year.

29. BAGGAGE ALLOWANCE

The Company shall pay baggage allowance of Kshs. 6,000.00 to an employee leaving the Company on normal retirement, or retirement on medical grounds, or being declared redundant.

30. GRATUITY/SERVICE BENEFITS

An employee who retires on age grounds, declared medically unfit to perform his/her duties by a registered medical practitioner, dies while in service, voluntarily resigns, or terminated at the initiative of the employer, shall be entitled to18 days pay for each completed year of service by way of gratuity/service benefits.

Provided that:-

An employee who is summarily dismissed on the account of gross misconduct shall not be entitled to gratuity/service benefits so long as the due process of fair termination procedure was followed.

This shall remain in force until the new NSSF Act is implemented.

31. EFFECTIVE DATE AND DURATION OF THE AGREEMENT

This agreement shall be effective from the 1st day of January 2014, and shall remain in force for a period of two (2) years from the date, and thereafter until it is amended by mutual agreement between the Company and the Union provided that the party desiring to amend the agreement shall give one month’s notice of their intention and shall set out in details the amendments or alteration which such party desires.

JOB GRADING

Parties agreed to adopt the following grading which will ensure that the operators (Diploma Holders) are remunerated according to the general order. The difference shall be adjusted in two portions covering 1st and 2nd Years respectively.

JOB LEVEL JOB TITLE 1st Year

KSHS

2nd Year

KSHS

GRADE 6

GRADE 5

QC Chemist

Field Extension Officers

Lab technicians

27,500

21780

30,388

24067

GRADE 4 Machine Operators (Diploma Holders)

Utility Operators, New Supervisors, Artisan (Technicians with grade I or Diploma Holders) Cashiers.

20,065 23,885
GRADE 3 Machine/Utility Operators (Experienced) 16500 18233
GRADE 2

2(a)

Assistant Machine/Utility Operator

Ungraded Artisan

Machine Attendant, utility attendant

14520

12100

16045

13371

GRADE 1

Drivers (Car and Light Vans)

15455

17078

1(a) Security Guards 12796 14140
1(b) Cleaners, Tea Maker, Gardener, general labourer. 11416 12615

SIGNED BY:-

ON BEHALF OF BOTANICAL EXTRACTS EPZ LTD

………………………………….

PATRICK J. HENFREY

CHIEF EXECUTIVE OFFICER

………………………………….

MICHAEL O. ONGERI

HUMAN RESOURCES MANAGER.

ON BEHALF OF KENYA CHEMICAL AND ALLIED WORKERS UNION

………………………………….

WERE DIBO OGUTU, OGW

NATIONAL GENERAL SECRETARY

WITNESSED BY

…………………………………………………………………….

HEZRON OPIYO ANYUOJAMES OBURA

DEPUTY GENRAL SECRETARYAREA SECRETARY

………………………………….………………………………….

JACKSON NGULU MUEKEMARTIN MUSYOKI MAKAU

BRANCH SECRETARYSHOP STEWARD

IN THE PRESENCE OF

………………………………….

GEORGE R AMBUCHE

EXECUTIVE OFFICER

FEDERATION OF KENYA EMPLOYERS

DATED THIS ………………………..DAY OF …………………………..2014

KEN Botanical Extracts EPZ LTD - 2014

Start date: → 2014-01-01
End date: → 2015-12-31
Name industry: → Manufacturing
Name industry: → Manufacture of basic pharmaceutical products and pharmaceutical preparations
Public/private sector: → In the private sector
Concluded by:
Name company: →  Botanical Extracts EPZ LTD
Names trade unions: →  COTU - Kenya Chemical and Allied Workers Union

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 29 %
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: → Yes

WORK AND FAMILY ARRANGEMENTS

Maternity paid leave: → 13 weeks
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: → Insufficient data 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 day: → 9.0
Working hours per week: → 45.0
Working days per week: → 6.0
Paid annual leave: → 24.0 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
Adjustment for rising costs of living: → 0

Wage increase

Wage increase: → 10.0 %

Premium for evening or night work

Premium for evening or night work: → KES 100.0 per month
Premium for night work only: → Yes

Extra payment for annual leave

Extra payment for annual leave: → KES 3500.0

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Premium for Sunday work

Premium for Sunday work: → 200 %

Meal vouchers

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