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MEMORANDUM OF AGREEMENT BETWEEN KARTASI INDUSTRIES LIMITED And KENYA UNION OF PRINTING, PUBLISHING, PAPER MANUFACTURERS PULP AND PACKAGING INDUSTRIES

IN THE MATTER OF WAGES TERMS AND CONDITIONS OF EMPLOYMENT

1. PREAMBLE

The parties to this agreement, meeting together in the free heart and voluntary association, agree and enter into Agreement in the matters of wages, terms and conditions of employment between them. However, all unionsable employees will not get conditions of service or any other benefits which are less favourable than provided under this agreement.

2. PROBATION

The period of probation shall be maximum of three months from the date of an employee's engagement. At any time prior to the full completion of a probation period, the notice of termination of employment shall be 7 days by either party.

3. HOURS OF WORK

(a) The normal working week shall be 44 hours, worked over five full days, or five full days and one day in part, in any seven consecutive days.

(b) The actual starting and finishing times shall be determined by the requirements of the employer, which shall be given in writing.

4. OVERTIME

(a)Overtime shall be paid as follows in respect of the hours worked over the above normal working hours per week.

Monday to Saturday: One and half times.

Sunday and Gazetted Public Holidays: Two times.

(b)The basic hourly rate for any employee shall be calculated by the following formula:-

Employee's Basic salary per month x 12/2288

5. ANNUAL LEAVE

(a)Twenty nine (29) consecutive days leave shall be granted for each completed year of service.

(b) Annual leave may be accumulated to a maximum of fifty eight consecutive days on completion of two years service.

(c) The time of taking leave shall, whenever possible be arranged mutually but shall otherwise be granted and taken at the convenience of the employer.

(d) Proportionate leave

Any employee whose services are terminated or who resigns giving the appropriate notice shall be entitled to pro-rata days leave for each completed month of service.

(e)Leave Over Public Holidays

The authorised annual leave of any employee that includes within its number of consecutive days any of the following Public Holidays:

New Year Day-

Mashujaa Day

Good Friday-

Independence Day

Easter Monday

-Christmas Day

Id-Uil-Fitr-

Madaraka Day

Labour Day-

Boxing Day

May be extended by the employee by the number of Public Holidays as above that are included within the authorised leave period which fall during such leave period.

6. LEAVE TRAVELLING ALLOWANCE

An employee shall be entitled to a leave travelling allowance of Shs.3,190/= w.e.f. 1.1.2013, payable in advance when he/she qualifies to proceed on his/her annual leave. Such leave allowance will be paid once a year. If any employee does not take his/her leave at the request of the employer, such allowance will be accumulated on the completion of two years service only. After that it will not be paid.

7. SICK LEAVE

(a) Employees are entitled to 30 days sick leave on full pay and a further 30 days on half pay, per annum subject to a medical certificate and the employer if not satisfied with such certificate produced by employee may refer the employee for examination by a company doctor.

(b) Time spent at dispensaries awaiting treatment is to be deductable from the 30 days leave on full pay except where the employer has ordered the employee to go to a company doctor for re-checking the medical certificate.

At the sole discretion of the employer, additional days maybe granted to the employee with either full pay or half pay.

(c)In case of actual continuous hospitalisation the sick leave will be extended by up to 30 days with full pay.

8. MATERNITY LEAVE

A woman employee shall be entitled to three months maternity leave with full pay provided that-

(a) A female employee who has taken maternity leave shall not forfeit her annual leave entitlement in that year.

(b) Child-birth in respect of a female employee shall not be deemed to be sickness under the sickness clause in this Agreement and the employer shall not be required to meet medical expenses incurred thereof.

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

(d)A male employee shall be entitled to 2 weeks paternity leave with fully pay once every year when a wife registered with the employer gives birth.

9. COMPASSIONATE LEAVE

(a)An employee desirous of taking leave on compassionate grounds shall by prior arrangements with the employer be granted such leave upto his earned leave entitlement under paragraph 5 of this agreement and the leave taken shall be subsequently set off against his/her annual leave.

(b)An employee may, in addition to the leave provided in sub-paragraph (a) of this paragraph be granted five days compassionate leave without pay in any one year.

10. MEDICAL TREATMENT

Medical treatment shall be given according to the provisions of the Employment Act, 2007.

11. INJURY BY ACCIDENT

In case of accident covered by the Work Injury Benefits Act, 2007 payment will be made in accordance with the Laws.

12. ACTING ALLOWANCE

Where an employee is required to work in full acting capacity for a period of not less than 29 days in an occupation or grade for which the basic minimum wage prescribed under clause 26 of this agreement is higher than the basic wage normally earned by the employee, he shall be paid acting allowance at a rate not less than the difference between such basic minimum wage and his/her normal basic wage.

13. HOUSE ALLOWANCE

The company will provide a reasonable accommodation or pay a housing allowance of Kshs.3,400/= per month.

14. UNIFORMS AND PROTECTIVE CLOTHING

(a) Uniforms/Protective Clothing will be provided to an employee (two pairs as required under the Occupational Safety and Health Act, 2007 and will remain the property of the company.

(b) One bar of washing soap per month shall be provided or laundry will be undertaken by the company for the uniform/protective clothing. No soap shall be issued when an employee is on leave.

(c) If, it is observed that the uniform/protective clothing is not kept clean and tidy or not washed, disciplinary action will be taken against the employee.

15. TERMINATION OF EMPLOYMENT

(a) Established employees of upto (5) five years service, shall be subject to not less than one calendar month notice of termination of employment or one month's pay in-lieu thereof. On resignation the employee shall give one calendar month notice or pay of one month's salary in lieu.

Those with more than (5) years service shall be subject to two calendar months' notice of termination of employment or two months' pay in lieu. Such notice shall be in writing and shall take effect from the date it is tendered.

(b) Any employee may be summarily dismissed for proven gross misconduct and paid up to and including the date of dismissal plus accrued leave.

(c) Where an employee commits any act of misconduct he shall be given a written warning for each act and on the third instance his/her employment may be terminated summarily. An employee shall be entitled to refer any such warning to his/her union for appeal.

If an employee completes 12 months from the date of the second warning without further faults, any warnings recorded on his/her file will be cancelled.

16. TERMINAL PAYMENT

(a)An employee on completion of two years continuous service with an employer shall be entitled to a minimum of 17 days pay for every completed year of service by way of gratuity to be based on the employee's wages at the time of termination of his/her services.

(b)An employee who resigns shall also be entitled to gratuity. An employee who is dismissed on proven gross misconduct will not be entitled to gratuity.

17. LEAVE FOR UNION PURPOSES

(i)The company will grant 7 days paid leave to an employee to attend Union Seminars provided that the company shall not be called upon to grant such leave to more than one employee in any particular year.

(ii)The Union Secretary General shall notify the employer one month in advance to grant such leave or in urgent cases 15 days notice in advance of the date of release will suffice.

18. RETIREMENT BENEFITS

(a) The normal retirement age shall be 55 years; however an employee may retire earlier on certifiable medical grounds.

(b) An employee who retires as provided above shall be entitled to a minimum of 17 days pay for every completed year of service by way of gratuity to be based on the employee's wages at the time of termination of his/her services.

19.REDUNDANCY

(a)Definition of Redundancy

An employee or employees in an undertaking may be redundant when that undertaking has more employees than it can economically employ, a situation that may arise from mechanisation rationalization (job reorganisation and/or simplification) or a decrease in the activity of the undertaking due to economic or other causes.

(b)Principles of Redundancy

(i)The Union shall be informed 3 months in advance of the reasons for and the extent of the intended redundancy.

(ii)Selection shall be on the basis of "Last In, First Out" in the particular department or classification of employees affected subject to all other factors such as skills and reliability being in the opinion of the management equal. Provided that an employee will not be removed solely because of age or union activities.

(c)Compensation for Redundancy

Upon Completion of 2 years and above of continuous service with the company an employee shall be entitled to severance pay at the rate of 17 days wages for every completed year of service based on the wages being earned at time being declared redundant.

20. 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 an employer or an employee from respectively alleging or disputing whether the facts giving rise to the same, or whether any other matters not mentioned in this section, constitute justifiable or lawful grounds for such 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 for the performance of his work properly.

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

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

(e) If, an employee uses abusive or insulting language or behaves in a manner insulting to his employer or any 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 a cognizable offence punishable by imprisonment and is not within ten days either released on bail or on bond or otherwise lawfully set at liberty.

(g)If, any employee commits, or on reasonable and sufficient grounds is suspected of having committed any criminal offence against or to the substantial detriment of his employer's property.

21. CERTIFICATE OF SERVICE

The company shall issue to an employee a certificate of service upon termination of his employment, unless the employment has continued for a period of less than four consecutive weeks.

The certificate of service issued under this section shall contain only the following particulars:

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

(b) The name of the employee;

(c) The date when employment of the employee commenced;

(d) The nature and usual place of employment of the employee;

(e) The date when the employment of the employee ceased; and

(f) Such other particulars as may be prescribed by the Minister for Labour from time to time.

Subject to the foregoing the employer is not bound to give to an employee a testimonial, reference or certificate relating to the character or performance of that employee.

22. CHECK OFF SYSTEM

Check off system will continue to be operated by the Company in accordance with the provisions of the Labour Relations Act 2007.

23. PROMOTION

Where a vacancy of promotional nature arises, the employer shall give first consideration to existing employees within the group or department in which the vacancy occurs, subject to each employees qualifications, ability, length of service, experience and other relevant merits.

24. LUNCH BREAK

Shall be provided for all workers and every employee shall be given half an hour for lunch.

25. INSURANCE AND CO-OPERATIVE SCHEME

Upon the employee requesting the management to deduct; the employer will deduct payments for insurance schemes and co-operative society that are recommended by the union and authorised by the employees. Provided that the employer shall ensure that all deductions shall not exceed two thirds of the employee’s salary for any month.

26. DEATH

In case an employee dies whilst in the company employment, the company shall pay Kshs.13,000/- towards funeral expenses.

Each employee will contribute Kshs.100/- towards funeral expenses.

27. JOB CLASSIFICATIONS

W.E.F. 1st January, 2012 to 30th April, 2014

5% above minimum wage based on the 2012 wages guidelines as follows:

Basic Minimum Wages

Grade (a)----------------------------------------------------------------------------------------Ksh.

Driver - Medium Size Van..........................................................15,292

Grade (b)

Telephone Operator......................................................................13,876

General Clerk.................................................................................13,876

Store Keeper13,876

Grade (c)

Driver - Car & Light Van................................................................12,159

Copy Typist12,159

Tape Printing Machine Operator................................................12,159

Stencil Machine Operator............................................................12,159

Label Die Cutting/Printing Machine Operator...........................12,159

Exercise Book Machine Operator.................................................12,159

Ruling Machine Operator..............................................................12,159

Cutting Machine Operator (Schnider/Three Knife)....................12,159

Off Set Printing Machine Operator...............................................12,159

Computer Printing Machine Operator..........................................12,159

Fork lift Driver..................................................................................12,159

Grade (d)

Tape Slitting Machine Operator......................................................11,656

Core Rewinder Machine Operator...................................................11,656

Computer Collating Machine Operator...........................................11,656

Folding Machine Operator...............................................................11,656

Auto Mina Binder Machine Operator...............................................11,656

Platen Machine Operator..................................................................11,656

Paper Slitting Machine Operator......................................................11,656

Paper Clip/Staple Machine Operator...............................................11,656

Sewing/Stiching Machine Operator.................................................11.656

Grade (e)

Label Printer........................................................................................10,211

Core Slitter.......................................................................................... 10,211

Stencil Punching Machine................................................................... 10,211

Tape Recovery Winder/Label Rewinder Machine..............................10,211

Spiral/Punching Machine ...................................................................10,211

Glueing Machine .................................................................................10,211

Rubber Band Slitting Machine ............................................................10,211

Emborsing (Gold Foil) Machine........................................................ 10,211

Insulating Tape machine...................................................................... 10,211

Laminating Machine........................................................................... 10,211

Packaging Machine............................................................................. 10,211

Perforating Machine.............................................................................10,211

Assistant Machine Operator............................................................... 10,211

and or Machine Attendant

Cutting Machine.................................................................................10,211

Knife Sharpening Machine Operator...............................................10,211

Creasing/Casing Machine Operator...................................................10,211

Benison Sealing (Packing) Machine Operator...................................10,211

Auto Print Machine Operator..............................................................10,211

Grade (f)

General Workers...................................................................................9,009

Grade (g)

Ungraded Artisan.................................................................................12,160

Artisan Grade III....................................................................................15,292

Artisan Grade II......................................................................................16,517

Artisan Grade I.......................................................................................20,329

28..WAGE INCREASE

All employees will receive a general wage increase as follows:-

Low income earners groupUpper income earners group

(Those earning less than KShs.13,000/=)(Those earning more than KShs.13,000/=)

12% w.e.f. 1.1.20138% w.e.f. 1.1.2013

12% w.e.f. 1.1.20148% w.e.f. 1.1.2014

29. SHIFT WORKING

(a) A shift worker shall be an employee who is regularly called to work, wholly or partially hours outside the normal hours laid down by his employer subject to a minimum of 30 hours and to a maximum of 44 hours per week and number of hours each day as specified in Clause 3 (normal hours) of this Agreement.

(b) Regularly as in the above clause shall mean a minimum of normal shift working day for a minimum of four consecutive weeks.

(c) Any employee who is deemed to be a shift worker in accordance with the definition here laid down shall be paid a premium of 16% basic salary for all the normal hours of each shift worked.

(d) Should a shift worker work for hours in excess of the normal hours of a shift he shall be paid for the excess hours at overtime rates.

(e).Normal working hours is any time between 7.00 a.m. and 6.00 p.m. provided that the current arrangements for shift allowance will remain unchanged.

(f) Overtime rates shall be as laid down in Clause 4 (Overtime) of this agreement.

(g) Shift workers shall not receive shift premium payments for any hours for which they receive overtime payments.

30. DURATION OF THE AGREEMENT

The Agreement is effective from 1st January, 2013 and will remain in force for two years until 31st December, 2014. Any party wishing to amend the agreement will give 3 months notice setting out in details all the amendments so required.

***********************************

SIGNED: FOR AND ON BEHALF OF THE COMPANY:

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

S.J. SHAH

DIRECTOR

SIGNED: FOR AND ON BEHALF OF THE UNION:

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

I. WAMBOYE

DEPUTY GENERAL SECRETARY

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

MICHAEL MUTANGILI

BRANCH SECRETARY

HELLEN MWANGANGI

CHIEF SHOPSTEWARD

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

SIMON M. MOTUKA

SHOP STEWARD

IN THE PRESENCE OF:

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

DAN OMONDI)

EXECUTIVE OFFICER

FEDERATION OF KENYA EMPLOYERS

Dated this ................................ day of ..................................................... 2013

KEN Kartasi Industries Limited - 2013

Start date: → 2013-01-01
End date: → 2014-12-31
Name industry: → Manufacturing
Name industry: → Manufacture of paper and paper products
Public/private sector: → In the private sector
Concluded by:
Name company: →  Kartasi Industries Limited
Names trade unions: →  Kenya Union of Printing, Publishing, Paper Manufacturers and Allied Workers

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: → 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
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: → 44.0
Working days per week: → 5.0
Paid annual leave: → 29.0 days
Paid annual leave: → 4.0 weeks
Paid bank holidays: → Christmas Day (25th December), Easter Monday, Idd – ul – Fitr, John Chilembwe Day (15th January), Madaraka Day
Provisions on flexible work arrangements: → 

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 9009.0
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → 12.0 %
Wage increase starts: → 2013-01

Extra payment for annual leave

Extra payment for annual leave: → KES 3190.0

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
 
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