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MEMORANDUM OF AGREEMENT BETWEEN EASY COACH LTD And TRANSPORT WORKERS UNION (K)

1.0 PREAMBLE

The agreement shall apply to all employees covered by the definition given by the Union’s registered constitution and as provided by the recognition Agreement signed between the parties and within the Industrial Relations Charter. It is further agreed that this Agreement will cover all unionisable employees employed by the company. and shall form the basis of the minimum wages, terms and conditions of employment.

2.0 BASIC MINIMUM WAGES: 01/05/2013

2.1 General labourer (cleaner, loader,Messenger)......................... Ksh. 8,923/-

2.2 Day Security staff ........................................................................Ksh 9,000/-

2.3 Night Security Staff.................................................................... Kshs.9,955/=

2.3 WORKSHOP STAFF

a) Ungraded Artisan ..........................................................................Ksh.12,043/-

b) Artisan grade III............................................................................ Ksh.15,147/-

c) Artisan grade II............................................................................. Ksh. 16,359/-

d) Artisan grade I ..............................................................................Ksh. 20,134/-

e) Petrol pump attendant ..................................................................Ksh. 11,544/-

f) Tyre man ........................................................................................Ksh. 11,544/-

2.4 DRIVERS

a) Light van –below 2 tons............................................................... Ksh.12,043/-

b) Medium size btwn 2 and 8 tons................................................... Ksh.15,147/-

2.5 CLERICAL STAFF:

a) Junior clerk ...................................................................................Ksh.11,544/-

b) General Clerk, Accounts/Computer clerk .................................Ksh.13,744/-

c) Stores clerk ...................................................................................Ksh.13,744/-

Note:

(a)Salaries for Grades I, II and III shall apply to the employees employed on those grades.

(b)The basic salaries for the Collective Bargaining Agreement shall always be 2% above the Government General order.

3.0 GENERAL WAGE INCREASE

Employees who were in service of the company by at 30th April 2013 shall receive a wage increase of 10% with effect from 1st May 2013 for the first year and a further 10% for the second year effective from 1st May 2014.

4.0 HOUSE ALLOWANCE

Employees who are not provided with free housing Accommodation by the company shall be entitled to housing allowance of Kshs 1,500per month or 15% of the basic salary whichever is higher.

5.0 HOURS OF WORK

(1) The normal working week shall consist of 45 hours spread over six days of the week.

(2) In respect of the security staff, the working week shall consist of 60 hours spread over 6 days of the week.

(3) Employees in the workshop will operate on 2 broken shift a day of 4 hours each for 6 days in a week. (2 shifts of 4 hours per shift) and shall be entitled to shift allowance of Kshs. 125/= per day.

(4) An employee shall be entitled to one rest day in a week.

(5) Loaders on night shift shall be entitled to shift allowance of Kshs. 125/= per day.

(6)Workshop employees on night shift shall receive nigh shift allowance of Kshs. 225/=.

6.0 OVERTIME

Overtime shall be paid at the following rates:

(a) For the hours worked in excess of normal hours per week at one and half times the normal hourly rate (11/2 times)

(b) For hours worked on rest days and gazetted public holidays at double the normal hourly rate.

(c) Paragraph (a) and (b) of this clause shall not apply to drivers, instead a monthly fixed overtime of Kshs.1,600/= shall be paid for excess hours worked in a month.

(d) Overtime shall be indicated on the employee’s payslip.

7.0 PUBLIC HOLIDAYS

(a) An employee shall be entitled to a public holiday and normal rest day with full pay.

(b) An employee who is required to work on such Public holidays and normal rest days shall be paid at DOUBLE RATE under overtime clause or shall be granted an alternative day to rest with full pay.

8.0 ENGAGEMENT/APPOINTMENT

On engagement, an employee shall be issued with a letter of appointment. Such a letter shall set forthwith the employees job title, salary scale and other related matters pertaining to the employees’ terms and conditions of employment as set in this CBA.

9.0 PROBATION

A newly recruited employee shall be on probation for a period of 6(six) months.

a) During probationary period, either party may terminate the contract by giving 7 days notice or pay in lieu of such notice.

b) Induction: A newly recruited employee shall be given an induction relevant to the basic needs of the job.

c) Confirmation: Upon successful completion of probationary period, the employee shall be confirmed in his/her appointment in writing.

10.0 CASUAL EMPLOYMENT

The company retains the right to employ casual labourers/employees from time to time on the basis of its own operational requirements and as provided for in the Employment Act. Casual labourers/employees shall be paid at the appropriate rates applicable as governed by the prevailing General wages guidelines.

No casual employee shall work for more than 3 months.

11.0 LEAVE

A) ANNUAL LEAVE

(a)After completion of twelve (12) months continuous service with the company, an employee shall be entitled to annual leave of 22 working days with full pay (excluding public holidays).

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

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

(d) Any employee who leaves employment after completion of two or more consecutive months, shall be entitled to prorata leave of 2 days in respect of each completed month of service or pay in lieu of such leave.

(e) The employee will apply for leave at least two weeks in advance.

(f) Those travelling on leave shall be given salary advance upon request.

B) LEAVE TRAVELLING ALLOWANCE

An employee proceeding on annual leave shall be entitled to a free ticket for those going where the company buses operate.

12.0 COMPASSIONATE LEAVE

i) An employee desirous of taking leave on compassionate grounds shall by prior arrangement with the employer be granted such leave up to his/her earned leave and the same shall be subsequently set off against his/her annual leave.

ii) An employee may in addition to the leave provided in sub-paragraph (i) of this paragraph be granted 5 days compassionate leave without pay in any one year.

13.0 SICK LEAVE

After two consecutive months service and subject to production of a certified medical certificate of incapacity covering the period of sick leave claimed, an employee shall be entitled to sick leave in any one period of twelve months as follows: -

(i) A maximum of 30 days with full pay and thereafter to

(ii) A maximum of 30 days with half pay.

(iii) Any payments of salary/wages to an employee’s next of kin during sick leave shall be witnessed by a shop steward.

14.0 MATERNITY LEAVE/PATERNITY LEAVE

i) A female employee shall be entitled to three months maternity leave with full pay and shall not forfeit her normal annual leave entitlement.

ii) A male employee shall be entitled to 2 weeks paternity leave with full pay as provided by the Employment Act and on production of medical documents.

15.0 SAFARI ALLOWANCE

Drivers shall be entitled to allowances where their accommodation is provided free as follows.

a) Meal allowance Ksh............................ 700/=

b) Overstay allowance Ksh. ....................175/=

c) Return Allowance Ksh. .......................300/=

16.0 EMPLOYEE IN ACTING CAPACITY

Where an employee is required to act in full capacity for a period not less than 1 month in a position or grade for which the basic minimum wage is higher than the basic minimum normally earned by the employee, an acting allowance not less than the difference between such higher basic and his basic wage shall be paid.

17.0 UNIFORMS & OVERALLS:

a) An employee who is required to wear uniforms or overalls by nature of his /her work or in accordance with the provisions of the Occupational Safety and Health Act shall be issued with two pairs of uniforms or overalls free of charge by the company. Such uniforms or overalls shall be replaced with a new pair bi-annually.

b) Employees shall be responsible for laundering such uniforms and /or overalls.

c) The uniforms remain the property of the company. When his/her services are terminated, the same shall be returned back to the company in a presentable state.

d)The employees shall be expected to be in their official company uniforms always. In the event of loss, a surcharge equivalent to the cost of the uniform shall be imposed.

e) Night security staff shall be provided with coats.

f) Safety boots shall be provided to employees where appropriate and in accordance with OSH Act 2007.

18.0 SUMMARY DISMISSAL

A)

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 numeration of such matters shall not preclude an employer/employee from respectively alleging or disputing whether facts giving rise to the same, or whether any other matters 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 to perform his work properly.

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

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

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

e) If, in the lawful exercise of any powers of arrest given by or under any written law, an employee is arrested for a cognisable offence punishable by imprisonment and is not within 14 days either released on bail or bond or otherwise lawfully set at liberty, or

f) 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.

B) Entitlement on dismissal

i)Salary up to the date of dismissal

ii)Pro rata leave

iii)Payment of pending off days and overtime if any

iv)Certificate of service

19.0 GRIEVANCES PROCEDURE (RIGHT TO APPEAL)

Both parties have agreed to adhere to the Industrial Relations Charter and the Recognition Agreement signed between the parties in settling grievances/ disputes that may arise by observing the provisions of the Employment Act.

20.0 WARNING SYSTEM

An employee who is guilty of an offence other than gross misconduct or other lawful cause for summary dismissal may be given a warning in writing, which shall be entered in his/her employment file/record. Such warning shall remain valid for 12 months.

An employee who receives two such letters and commits another offence he shall be liable for summary dismissal- provided that all the three offences were committed within the period of 12 months. A warning letter shall remain valid on an employees record for 12 months. All the warning letters shall be copied to the shop steward and the Branch secretary of the union.

21.0 SUSPENSION

a) Where an employee commits a serious offence warranting investigation, the company shall suspend the employee for 7 working days without pay and if the investigation is not completed within 7 working days then he will continue to be on suspension with half pay.

b) The outcome of the investigation shall be communicated to the employee in writing and copied to the shop steward.

c) Should the employee be found innocent, he/she shall be reinstated and the withheld salary paid to him. If the employee is found guilty, he/she shall be dismissed, terminated or warned depending on the offence.

22.0 REDUNDANCY

1. 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 an employee are superfluous as a result of practices commonly known as abolition of office, job or occupation and loss of employment.

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 alternative employment is not acceptable to the employee concerned, he will be classified as redundant and therefore eligible for the entitlements outlined in this clause.

c) Notification.

The employer shall notify the union and the nearest District Labour Officer of the reasons for and the extent of the intended redundancy.

d) Selection of Redundant employees.

In deciding which employees shall be declared redundant, the company will assess the relative merits, ability, skill, and reliability of the affected employees, but when these factors are equal the discharge will be on the basis of seniority. Refer to sec. 40 (c) of the Employment Act.

e) Re engagement of a redundant employee.

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

22. Entitlement of redundant employees.

In the event an employee is being declared redundant he/she shall be entitled to the following: -

1) One (1)-month notice in writing or pay in lieu of notice as defined in this agreement.

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

2) Prorata leave entitled in accordance with the agreement

3) Severance pay at the rate of 16 days pay for each complete year of service.

4) Certificate of service

23.0 RETIREMENT:

a) The normal age for retirement from the service of the company shall be on the attainment of age (60) years for both men and women. Earlier retirement will be at on attainment of 55 years and will be at the discretion of both the employee and employer

b) An employee who retires will be entitled to service pay at the rate of 16 days for each completed year. Provided that the employee has served the company for a minimum of (1) year.

24.0 TERMINATION OF EMPLOYMENT

a)After the probationary period this contract may be terminated by either party giving one month notice in writing or pay in lieu of such notice.

b)Entitlement on termination

i)Salary for days worked

ii)Accrued leave on Pro-rata basis

iii)Payment for accrued off days

iv)Service pay at 15 days pay for each completed year of service.

v)Certificate of service

25.0 MEDICAL TREATMENT:

a)The Company shall provide free medical attention to its employees in accordance with Employment Act-2007 Laws of Kenya. For this purpose, there shall be a Company Doctor available within the premises on Mondays, Wednesdays and Fridays.

b)The Company shall identify a Medical facility/hospital for medical attention of its employees.

c)In the event an employee falls sick while on safari, the current practice of the Company shall continue.

d) Code on HIV/AIDS

No employer shall discriminate directly or indirectly, against an employee or prospective employee or harass an employee on grounds of their HIV status.

26.0 INJURY AT THE WORK PLACE

a) In the case of accident covered by the Work Injury Benefits Act, compensation shall be made to the employee who is affected in accordance to the WIBA-2007

27.0 SHOP STEWARDS EDUCATION

The Company shall allow time off for the shop stewards and other members to attend trade union training courses arranged by TAWU/COTU (K) with full communication between the union and the company. Ample notice of not less than 14 days will be given to the company and the union will endeavour to try to send the shop steward/members at different time.

28.0 DEATH OF AN EMPLOYEE

a)The company will provide Kshs.25,000/= towards funeral expenses.

b)The company shall pay all accrued employment benefits/dues to the deceased employee to his /her nominated next of Kin or to the District Labour Officer. All employees to update their next of kin records with the employer.

c)Payments to be witnessed by a shop steward.

29.0: STAFF TRANSPORT

By mutual agreement, the normal practice of transporting employees from their place of work will continue. However, employees who work beyond their working hours will be given bus fare.

30.0: CHECK OFF SYSTEM

The employer shall abide by the provisions of the Labour Relations Act in respect to the check off system and Agency fee.

31.0: SHOP STEWARD/JOINT CONSULTATIVE COMMITTEE

The company shall recognise the role played by the shop stewards and their mandate as provided for in the Recognition Agreement.

Both the employer and the Union representatives/shop stewards shall form a consultative committee to solve collective workers grievances and oversee the implementation of the CBA.

32.0: TRANSFER

a)If an employee is transferred by the Company from one station to another, he/she shall be entitled to transfer allowance equivalent to one (1) month salary or be entitled to free accommodation by the Company.

b)The company will transport the affected employee and his reasonable personal baggage from the old station to the new station.

c)Transfer will be at the discretion of the management and no employee will reject a transfer should they be transferred.

d)An employee who is transferred from one station to another will be given 7 days notice by the company to prepare to move to his new station expect on emergency basis.

33.0: TOOLS ALLOWANCE

The company shall provide tools for use in the company Worksop/premises and an employee who is not provided with tools shall be paid tools allowance of Kshs. 500 per month.

34.0 EFFECTIVE DATE AND DURATION

This agreement shall come into force from the 1st Day of May 2013 and shall remain in force for 24 months (two years). Thereafter the Agreement shall remain in force until it is amended.

During this period, either party wishing to amend any of the provisions therein will be required to give three months notice setting out in details of the proposed amendments.

SIGNED: FOR AND ON BEHALF THE COMPANY

…………………………………

AZYM DOSSA

MANAGING DIRECTOR

………………………………….

PATRICIAH LUGALIA

HR OFFICER

SIGNED: FOR AND ON BEHALF OF THE UNION (TAWU)

...…………………………………

TITUS WAMALWA KHAEMBA

DEPUTY GENERAL SECRETARY

………………………………

DISHON OGOWA

BRANCH SECRETARY

…………………………………….

MORARA OCHENGE

SNR SHOPSTEWARD WORKSHOP

………………………………….

JORIM ODHIAMBO OWITI

ASSISTANT CHIEF SHOP STEWARD

…………………………………….

NAFTALI ABUGAH

SNR SHOP STEWARD DRIVERS

………………………………….

STEPHEN RIOBA

SNR SHOP STEWARD-CLERKS

………………………………….

GEORGE MBIJI

SNR SHOP STEWARD (DISPATCH/LOADERS)

FOR AND ON BEHALF OF FEDERATION OF KENYA EMPLOYERS

………………………………………….

G.R. AMBUCHE –

INDUSTRIAL RELATIONS OFFICER

FEDERATION OF KENYA EMPLOPYERS

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

KEN Easy Coach Limited - 2013

Start date: → 2013-05-01
End date: → 2015-04-30
Name industry: → Transport, logistics, communication
Public/private sector: → In the private sector
Concluded by:
Name company: →  Easy Coach Limited
Names trade unions: →  COTU - Transport and Allied Workers Union

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: → Yes

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: → No
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: → 22.0 days
Paid annual leave: → 3.0 weeks
Paid bank holidays: → Easter Monday, Human Rights Day / Vernal Equinox Day (21st March), 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
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: → 2013-05

Premium for evening or night work

Premium for evening or night work: → KES 125.0 per month
Premium for night work only: → Yes

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

Meal vouchers

Meal allowances provided: → Yes
→ 700.0 per meal
Free legal assistance: → 
 
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