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MEMORANDUM OF AGREEMENT BETWEEN ELYS CHEMICAL INDUSTRIES LTD AND KENYA CHEMICAL AND ALLIED WORKERS' UNION - 2015

MEMORANDUM OF AGREEMENT ELYS CHEMICAL INDUSTRIES LTD. (HEREINAFTER CALLED THE "COMPANY") OF THE FIRST PART AND KENYA CHEMICAL AND ALLIED WORKERS' UNION (HEREINAFTER CALLED THE "UNION" OF THE SECOND PART

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1. IN THE MATTER OF WAGES AND OTHER TERMS AND CONDITIONS OF SERVICE

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. (1)EMPLOYEES IN ACTING CAPACITY

An employee who is temporarily appointed or promoted to any acting capacity carries a higher rate of pay than the job in which he/she is normally employed, and shall revert to his/her former rate of pay immediately on reverting to his/her former job. Provided that such employee had acted in that capacity for a period of no less than 14 days before.

(2) CONTRACT EMPLOYEES

Contract employees shall be paid wages negotiated in the C.B.A. However their contract shall be for a specific period of time and union should be informed in writing.

(3) NEW EMPLOYEE WAGES

All new employees from 01/01/2015 shall be paid the basic minimum wage and housing allowance vacated by new employees of the outgoing C.B.A. The basic minimum will thereafter be adjusted by the percentage negotiated by both parties in the current and future C.B.A.’s.

3. WORKING HOURS

An employee shall normally be required to work, whether on shift or otherwise, a total of 44 hours spread over 6 days per week, exclusive of the 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 4 of this agreement especially when the company has to meet Government orders, orders for exports, urgent local orders where extra time will be required either to produce or supply the products provided that: -

Such employees are informed before 6.00 p.m. on Thursday or latest by 4.30 p.m. on Friday. Then the overtime requirement on Saturday shall be mandatory. From Monday to Friday, if an employee is required to work overtime he/she shall be informed by 2.00 p.m. that particular day. In this case, the employee concerned shall be compelled to comply, except where such instructions are changed by mutual agreement by the two parties.

DAY SHIFT

MONDAY - FRIDAY

SATURDAY

8a.m. - 1 p.m. and 2p.m. - 5p.m.

8a.m. - 12 noon.

NIGHT SHIFT

MONDAY - FRIDAY

6.00 pm onward

4. OVERTIME

Overtime rates shall be as follows:

(a) For hours worked on week-days in excess of hours set out in Clause 3- One and a half.

(b) For hours worked on Saturdays in excess of hours, set out in Clause 3 - one and a half.

(c) For hours worked on Sundays and Gazetted Public Holidays - Double time.

5. 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 as provided by Clause 4 above.

6. ANNUAL PAID LEAVE

(a) Those employees with less than 5 years of service with the Company shall be entitled to annual paid leave of 24 working days.

(b) Those employees who have completed service of 5 years and over with the Company shall be entitled to 27 working days annual paid leave.

(c) In the event of Gazetted Public Holidays falling within the leave period such Public Holidays shall be added to the leave entitlement.

(d) 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.

7. COMPASSIONATE LEAVE AND LEAVE OF ABSENCE

An employee maybe given compassionate leave or leave of absence at the discretion of the Company. Such leave shall not be unreasonably refused nor unnecessarily delayed and shale not normally be paid, but may be paid at the discretion of the Company.

8. 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 Workmen's Compensation Act shall be entitled, in any period of twelve months, to full pay for the first 50 days and a further 50 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.

9. INJURY BY ACCIDENT

An employee who is injured by accident arising out of, and in the course of his/her employment shall be entitled to compensation in accordance with the provisions of the Work Injury Benefit Act, provided that where the Act requires the payment of half pay during a period of certified temporary disability, an employee shall be paid by the Company his/her full wages.

10. 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) Ability

(f) Date of termination of appointment

11. TERMINATION OF EMPLOYMENT

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

1) Less than 10 years - 1 month

2) Above 10 years - 2 month's

notice of termination of service or pay in-lieu of such notice.

12. WARNING PROCEDURE AND EMPLOYEE'S RESPONSIBILITIES

(a) An employee who is guilty of an offence other than of gross misconduct or other lawful cause of dismissal may be given 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 pleads guilty of the offence recorded against such employee, but simply to confirm that has been recorded during the 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 the 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 erased from the history record card of any employee after a period of twelve months from the date of the last such warnings being given to an employee.

(b) All employees will adhere to the Government of Kenya laws as employees of a Pharmaceutical Manufacturing Company, employees responsibilities are greater than any other trade and ethics, the Kenya Pharmacy and Poisons Act, good Manufacturing Practices and other legislation relating to the manufacture of drugs has to be observed strictly. In performing their duties, all employees are required to strictly adhere to the Good Manufacturing Practices and Company 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 of the company will NOT either during the course of the continuance or termination of employment, disclose secrets and confidential matters to anyone without the written consent of management. Classified material or indeed any property belonging to the company may not be taken out of the company premises without prior written consent of the management.

(d) All employees are required to be familiar with 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, as well as such rules and practices shall form the terms and conditions of appointment and employment.

Any contravention of laws of Kenya, Company rules and good Manufacturing Practices will be regarded as gross misconduct.

13. PROBATION

(a) All employees shall be considered to be on probation for a period not exceeding three months from the date of engagement and during this period services will be terminable by either party by giving 48 hours notice or pay in ¬lieu thereof during the 1 st month and 7 days notice during the 2nd and 3rd months, or pay in-lieu thereof.

(b) An employee who has completed up to three months probation as from his/her date of appointment by the company, will be given confirmation letter by the company.

14. 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.

15. LEAVE TRAVEL 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 1.01.2015 Kshs. 4,850.00
2nd year 1.01.2016 Kshs. 5,050.00
3rd year 1.01.2017 Kshs. 5,250.00

16. UNIFORMS OVERALLS AND PROTECTIVE CLOTHING

An employee who is required to wear uniforms or overalls by nature of his/her work or in accordance with the provisions of the act shall be issued with two pairs of uniforms or overalls which the company shall be responsible for laundering such uniforms, overalls and protective clothing.

17. MEDICALTREATMENT

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, provided that such illness is that covered by the act.

18. REDUNDANCY PROBLEMS

(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 the Kenyanization of a business, but it does not include any such loss of employment by a domestic servant.

(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 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 will be entitled to :-

i. Normal notice or pay in lieu of notice as defined in his 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. Severance pay on the basis of:-

1) Less than 10 years - 20 days 2) Above 10 years - 24 days pay for each completed year of service.

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

19. MATERNITY LEAVE

A woman employee shall be entitled to two months maternity leave with full pay.

(a) A woman who has taken two 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.

20. PATERNITY LEAVE

A male employee shall be entitled to 14 days paternity leave as per the new labour laws.

21. HOUSE ALLOWANCE

All employees in Group 1 of the company will get a house allowance of Kshs. 5,050.00 for the first year and a further Kshs. 5,300.00 for the second year and a further Kshs. 5,550.00 in the third year and of the agreement. All employees in Group 2 of the company will get a house allowance of Kshs. 4,700.00 for the 1st year and further Kshs. 4,950.00 for the second year, and a further Kshs 5,200.00 in the third year of the agreement and Group 3 will get Kshs. 250.00 increment each year for all the categories.

22. WAGES

All employees of the company in Group 1, 2 & 3 will get a wage increase of 9% w.e.f.1.01.2015 and a further 9% w.e.f. 1.01.2016 and a further 9% w.e.f. 1.01.2017 based on compounded figures each year.

GROUP l

Job Grade Basic

w.e.f..

1.1.2015

Housing

w.e.f.

1.1.2015

Basic

w.e.f.

1.1.2016

Housing

w.e.£.

1.1.2016

Basic

w.e.f.

1.1.2017

Housing

w.e.£.

1.1.2017

CATEGORY A

1. Cleaner

2. Tea Maker

35,551.00 5,050.00 38,751.00 5,300.00 42,239.00 5,550.00
CATEGORY B

1. Liquid Filling & Packaging Attendant

2. Mixing Machine Attendant

3. Coating Pan Attendant

4. Strip Packing Attendant

5. Blister Packing Attendant

6. Printing, Labelling & Packing Attendant

7. General Workers

44,819.00 5,050.00 48,853.00 5,300.00 53,250.00 5,550.00
CATEGORY C

1. Capsule Filling Machine Operator

2. Granulating & Dryer Mixer Operator

3. Driver (Delivery Van)

4. Tablet Compression Machine Operator)

50,613.00 5,050.00 55,168.00 5,300.00 60,133.00 5,550.00
CATEGORY D

Copy Typist/Clerks

Store Clerks

44,819.00 5,050.00 48,853.00 5,300.00 53,250.00 5,550.00

GROUP 2

Job Grade Basic

w.e.f..

1.1.2015

Housing

w.e.f.

1.1.2015

Basic

w.e.f.

1.1.2016

Housing

w.e.£.

1.1.2016

Basic

w.e.f.

1.1.2017

Housing

w.e.£.

1.1.2017

CATEGORY A

1. Cleaner

2. Tea Maker

30,278.00 4,700.00 33,003.00 4,950.00 35973.00 5,200.00
CATEGORY B

1. Liquid Filling & Packaging Attendant

2. Mixing Machine Attendant

3. Coating Pan Attendant

4. Strip Packing Attendant

5. Blister Packing Attendant

6. Printing, Labelling & Packing Attendant

7. General Workers

38,118.00 4,700.00 41,549.00 4,950.00 45,288.00 5,200.00
CATEGORY C

1. Capsule Filling Machine Operator

2. Granulating & Dryer Mixer Operator

3. Driver (Delivery Van)

4. Tablet Compression Machine Operator)

42926.00 4,700.00 46,789.00 4,950.00 51,000.00 5,200.00
CATEGORY D

Copy Typist/Clerks

Store Clerks

38,118.00 4,700.00 41,549.00 4,950.00 45,288.00 5,200.00

NEW COMERS - GROUP 3

Job Grade Basic

w.e.f..

1.1.2015

Housing

w.e.f.

1.1.2015

Basic

w.e.f.

1.1.2016

Housing

w.e.£.

1.1.2016

Basic

w.e.f.

1.1.2017

Housing

w.e.£.

1.1.2017

CATEGORY A

1. Cleaner

2. Tea Maker

17,437.00 3,280.00 19,006.00 3,530.00 20,716.00 3,780.00
CATEGORY B

1. Liquid Filling & Packaging Attendant

2. Mixing Machine Attendant

3. Coating Pan Attendant

4. Strip Packing Attendant

5. Blister Packing Attendant

6. Printing, Labelling & Packing Attendant

7. General Workers

18,288.00 3,350.00 19,934.00 3,600.00 21,728.00 3,850.00
CATEGORY C

1. Capsule Filling Machine Operator

2. Granulating & Dryer Mixer Operator

3. Driver (Delivery Van)

4. Tablet Compression Machine Operator)

19,571.00 3,450.00 21,332.00 3,700.00 23,252.00 3,950.00
CATEGORY D

Copy Typist/Clerks

Store Clerks

18,288.00 3,350.00 19,934.00 3,600.00 21,728.00 3,850.00

23. TRANSPORT ALLOWANCE

All employees of the company will qualify for transport allowance of Kshs.1,650.00 per month.

24. NIGHT SHIFT ALLOWANCE

All employees working night shift shall be paid Kshs. 115.00 night shift per person.

25. BAGGAGE ALLOWANCE

The company shall pay a baggage allowance of Kshs. 6,500.00 to an employee leaving the company on normal retirement or retirement on medical grounds only.

26. GRATUITY / SERVICE BENEFITS

An employee may retire or be retired after attaining the age of 55 years. An employee who retires on age grounds, declared medically unfit to perform his/her duties by a registered medical practitioner, dies while in service or terminated at the initiative of the employer, shall be entitled to:-

1) Less than 10 years - 17 days

2) Above 10 years - 20 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.

27. EFFECTIVE DATE AND DURATION OF THE AGREEMENT

This agreement shall be effective from the 1st day of January 2015, and shall remain in force for a period of 3 years from that 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.

SIGNED : FOR AND BEHALF OF THE COMPANY

…………………………………………………………………

MR. A. PANDYA

GENERAL MANAGER

WITNESSED BY

........................................

MARY GESARE

HUMAN RESOURCES MANAGER

SIGNED: FOR AND ON BEHALF OF THE UNION

………………………………………………………

MR. W.OGUTU

NATIONAL GENERAL SECRETARY - K.C.A.A.W.U.

WITNESSED BY

…………………………………………………………

MR. GEORGE GWAKO

AREA SECRETARY NAIROBI, CENTRAL & EASTERN PROVINCES - K.C.A.A.W.U.

WITNESSED BY……………………………..

MR. JAMES NJUGUNA NJOROGE SHOPSTEW ARD

WITNESSED BY. .

MR. SAMUEL KANGETHE MUCHAI ASST. SHOPSTEWARD

IN THE PRESENCE OF:

………………………………………….

MR. L.W. KARIUKI

PRINCIPAL EXECUTIVE OFFICER– F.K.E.

SIGNED AT NAIROBI THIS………………..DAY OF…………….2015

KEN Elys Chemical Industries Ltd - 2015

Start date: → 2015-01-01
End date: → 2017-12-31
Ratified by: → Other
Ratified on: → 2015-01-01
Name industry: → Manufacturing
Name industry: → Manufacture of basic pharmaceutical products and pharmaceutical preparations
Public/private sector: → In the private sector
Concluded by:
Name company: →  Elys Chemical Industries Ltd
Names trade unions: →  COTU - Kenya Chemical and Allied Workers Union

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 42 %
Maximum days for paid sickness leave: → 100 days
Provisions regarding return to work after long-term illness, e.g. cancer treatment: → No
Paid menstruation leave: → No
Pay in case of disability due to work accident: → Yes

WORK AND FAMILY ARRANGEMENTS

Maternity paid leave: → 8.5 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: → Insufficient data days
Paternity paid leave: → 14 days

EMPLOYMENT CONTRACTS

Trial period duration: → 90 days
Severance pay after 5 years of service (number of days' wages): → 20 days
Severance pay after one year of service ((number of days' wages): → 20 days
Part-time workers excluded from any provision: → No
Provisions about temporary workers: → No
Apprentices excluded from any provision: → No
Minijobs/student jobs excluded from any provision: → No

WORKING HOURS, SCHEDULES AND HOLIDAYS

Working hours per week: → 44.0
Working days per week: → 5.0
Paid annual leave: → 24.0 days
Paid annual leave: →  weeks
Paid bank holidays: → 
Provisions on flexible work arrangements: → No

WAGES

Wages determined by means of pay scales: → No
Provision that minimum wages set by the government have to be respected: → No
Agreed lowest wage per: → Months
Lowest wage: → KES 17437.0
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → 9.0 %
Wage increase starts: → 2017-01

Once only extra payment

Once only extra payment: → KES 5050.0 %
Once only extra payment due to company performance: → No

Premium for evening or night work

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

Extra payment for annual leave

Extra payment for annual leave: → KES 

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: → KES 1650.0 per month

Meal vouchers

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