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MEMORANDUM OF AGREEMENT BETWEEN M/S. THIKA MOTOR DEALERS LIMITED (HEREINAFTER REFERRED TO AS THE “EMPLOYER” OF THE FIRST PART) AND AMALGAMATED UNION OF KENYA METAL WORKERS' - (HEREINAFTER REFERRED TO AS THE "UNION" OF THE SECOND PART)

___________________________

1. PREAMBLE

(a) The parties to this agreement, meeting together in free and voluntary association have determined to regulate the relations between them in the interest of promotion of sound industrial relations, the economic well-being of the company, its workers and Management. In order to achieve these aims they have agreed to provide:-

(i) Machinery for speedy settlement of Industrial disputes.

(ii) A channel of communication between the Management and their employees.

(b) RECOGNITION

The employer accords full recognition to the Union as a properly constituted and representative body and the sole labour Organization representing interests of workers who are in the employment of the company concerning rates of pay, overtime, hours of work method of wages payment, paid leave, duration of employment, gratuity payment, principle of redundancy and general accepted terms and conditions of employment.

(c) LOCAL NEGOTIATING COMMITTEE

A local Negotiating Committee consisting of Shopstewards and Management representatives shall meet as and when necessary to consider claims and grievances raised by the employee(s) and in case settlement is not reached at the Local Negotiating Committee, the issue shall be referred to the Local Branch Secretary by the Shopstewards. The Local Negotiating Committee shall regulate its own procedure to elect its chairman.

2. PROBATIONARY PERIOD AND APPOINTMENT

(a) All persons engaged by the employer shall be on probation in the first months of appointment. The probation period shall not exceed three months duration and during this period, the employment may be terminated by either party giving 7 days written notice or pay in lieu of such notice.

(b) On engagement the employees shall be given a letter of appointment which shall clearly indicate the job and wages offered.

3. WORKING HOURS

(a)The normal working week for all employees will be 44 hours per week except watchmen.

(b)The normal working week for day watchmen shall consist of not more than 48 hours spread over not more than 6 days shift of the week.

4. OVERTIME

Overtime shall be payable in respect of hours worked in excess of the normal working hours per day, based on the following rates:-

(a) For hours worked on weekdays- time worked plus half

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

5. HOUSING ALLOWANCE

All unionisable employees of the company shall be entitled to a monthly house allowance of Kshs.3,210.00 per month or 16% of basic pay whichever is higher.

6. ANNUAL LEAVE

(a) After the completion of each period of twelve months continuous service and up to 5 years service with employer, employee shall be entitled to annual leave covering a period of 23 working days (exclusive of Gazetted public holidays) with full pay. Those with over 5 years service shall have annual leave of 27 working days.

(b) In case the employer desires not to allow an employee to proceed on leave because of employers own reasons, employer shall pay to the employee an amount equivalent to his/her leave days plus travelling allowance.

(c) Contrary to (b) if it is the employee who desires to sell his/her annual leave days to the employer, such employee shall be paid for his/her days without travelling allowance.

7. LEAVE TRAVELLING ALLOWANCE

An employee proceeding on leave shall be paid leave travelling allowance at 7% of his basic salary or Kshs.3,424.00 annually whichever is higher.

8. COMPASSIONATE LEAVE

(a) An employee desirous of taking leave on compassionate grounds shall by prior arrangement with the employer be granted such leave upto his earned entitlement under clause 6 of this agreement and the leave taken shall be subsequently set off against his annual leave.

(b) An employee may in addition to leave provided for in sub-paragraph (a) above be granted seven days compassionate leave without pay in any one year. Provided that necessity should be proved.

(c) Compassionate leave shall not be unreasonably be withheld.

9. SICK LEAVE

After the probationary period an employee who falls sick subject to production of medical certificate of incapacity issued by medical doctor shall be granted sick leave as follows:-

(a) Up to 2 years service -One month on full pay followed by one month on half pay; in each period of 12 months consecutive service

(b)From 2 to 5 years service-One month on full pay followed by two months on half pay in each period of 12 months consecutive service.

(c)From 5 years onwards-2 months on full pay followed by three months on half pay in each period of 12 months consecutive service.

10. MEDICAL TREATMENT EXPENSES

Medical treatment of employees shall be governed by Employment (medical treatment) Rules L/N.159/1977

11. MATERNITY LEAVE

A woman employee shall be entitled to three months maternity leave with full pay, and a woman who has taken her three months maternity leave shall not forfeit her annual leave in that particular year.

A male employee shall be entitled to two weeks paternity leave.

12. SAFARI ALLOWANCE

An employee who is required to work away from his normal principal area of employment other than transfer shall be entitled to the following subsistence allowance.

(a) Breakfast–Kshs.182.95

(b) Lunch–Kshs.246.00

(c) Supper–Kshs.321.00

(d) Accommodation –Kshs.813.00

13. ACTING ALLOWANCE

Where an employee is required to act in a higher grade than his/her own grade for a period of not less than (8) or more days he/she shall be informed in writing and be paid his/her own salary plus 25% of the basic salary for the employee for whom he is acting or to the full basic wage of that employee, whichever is the lesser amount.

14. CERTIFICATION OF SREVICE

Every employee shall be given a certificate of service by his/her employer upon termination or retirement, unless such employment has been continuous for a period of not less than four consecutive weeks.

Every such certificate shall contain;-

(a) The name of the employer and his address

(b) The name of the employee

(c) The date when employment commenced

(d) The nature and usual place of employment

(e) The date when employment ceased.

15. WARNING PROCEDURE

An employee who has worked and whose conduct is unsatisfactory and who commits an offence which does not warrant summary dismissal shall be warned in writing.

(a) The first warning shall be on record in the employees file and copied to the shopstewards. When no second warning has been issued within 12 months, then the first warning shall be cancelled from record.

(b) The second, third and final warnings shall be copied to the shopsteward and the General Secretary respectively.

(c) In case within this twelve months period the employee commits a further offence which does not warrant dismissal, he/she will be issued with a final/last letter of warning which will make him/her liable to termination of his/her service for any other offence which he/she may commit thereafter. This final letter of warning shall be copied to the Union Branch Secretary, and will remain valid for a period of twelve months from the date of issue.

(d) All warning letters issued shall be subject to written appeal by the employee within 7 days of the date of warning and management shall inform the employee within 14 days of the result of the appeal. If the management fails to communicate in writing to the appellant the result of the appeal, the warning shall be deemed to have been withdrawn.

16. TERMINATION OF SERVICE

Every contract of employment shall be terminated in the following manner:-

(a) In case of employee who has completed one month and up o 5 years service one month’s notice or one month’s salary in lieu of notice.

(b) In case of employee who has completed more than 5 years and up to 10 years service two months notice or two months salary in lieu of notice.

(c) In case of employee who has completed more than 10 years service three months notice or three months salary in lieu of notice.

17. REDUNDANCY

(a) In the event of redundancy the employer shall inform the union the reasons for and the extent of the intended redundancy.

(b) The principal of LAST IN FIRST OUT shall be followed in the particular category of employees affected subject to all other factors such as merit, ability and reliability being equal.

(c) The redundant employee shall be entitled to pay in lieu of notice as provided for under the clause on termination of service above.

(d) An employee shall qualify for severance pay after the completion of one year’s continuous service with the employer.

(e) Subject to sub-paragraph (d) above and in case where the service of an employee is terminated on grounds of redundancy, the employer shall pay the employee severance pay at the rate of 26 days’ basic pay for each completed year of service.

18. UNIFORMS

(a) An employee who may be required to wear uniforms due to the nature of his work shall be provided with two uniforms per annum provided that the two old uniforms are returned back for inspection before new uniforms are issued.

(b) Employer shall take the uniforms to laundry.

19. WORKERS EDUCATION

At the discretion of the management, the company shall give shopstewards/workers time off with full pay to attend Trade union meetings, courses, seminars organized by the Amalgamated Union Of Kenya Metal Workers/C.O.T.U. (K) provided that the Union shall give a prior 14(fourteen) days notice to the company. Provided that the period requested for shall be reasonable and that there shall always be documentary proof of the union meeting.

20. RETIREMENT/GRATUITY BENEFITS

An employee who retires/retired after attaining the retirement age of 55 years or who is prematurely retired on grounds of ill-health or whose services are terminated by the company or; who dies while in employment shall be entitled to appropriate payment in lieu of notice and service gratuity as follows:-

(a) Up to 6 years’ service- 16 days gross pay for each year of part thereof.

(b)over 6 years’ service- 17 days gross pay for each completed year of service or part thereof

21. SANITARY ALLOWANCE

Those who are assigned work of cleaning washrooms (toilets) shall be paid sanitary allowance of Ksh.310/= per month.

22. UNION OFFICIALS

Without upsetting management’s prerogative to transfer or terminate the service of employees, employers are asked to advise the union whenever possible, when a union official is to be transferred or to be declared redundant

23. DISTURBANCE ALLOWANCE

When an employee is transferred from one town to another, he shall be paid the sum of Kshs.5, 885/- for the duration of the Agreement, by way of disturbance allowance.

24. HEAVY DUTY ALLOWANCE

An employee engaged in repair of vehicles of tare weight in excess of tare weight of 8960 1b shall be entitled to heavy duty allowance of Kshs.192/= per month.

25. CASUAL EMPLOYMENT

(a) A person employed as a casual workers shall be paid for each day at the rate of one-twenty second of both the monthly basic wage and housing allowance applicable to him having regard to his occupation and area of employment.

(b) A casual employee shall be confirmed into regular monthly terms of service after working consecutively for ninety (90) days in one year.

26. BASIC MINIMUM WAGES

1st Year 2nd year
GROUP I – GENERAL LABOURER;
Cleaners, Messengers)

Tea Makers, Watchmen)=

Kshs.9,659/ 10,335/=
GROUP II – UNGRADED ARTISANS;
Panel Beaters, Mechanics)

Spray Painters, Electricians)

Welders,Driver light van)

Kshs.12,877/ = 13,778/=
GROUP III – GRADED ARTISANS
G.T.T.C. III

G.T.T.C II-

G.T.T.C. I-

Heavy Commercial VehicleDriver-

15,292/=

18,512/=

20,060/=

18,072.30/=

16,362/=

19,808/=

21,464/=

21,464/=

GROUP IV
Telephonist-

Receptionist-

16,902/=

16,902/=

18,085/=

18,085/=

GROUP V
Sales clerk, stores clerk,

Accounts clerk cashier-

16,740/= 17,912/=

27. GENERAL WAGE INCREASE

All unionisable employees of the company as at 1st February, 2014, shall be given a wage increase of 7% on their individual basic salary to cover the first year of this Agreement.

As at 1st March, 2015, all unionisable employees of the company shall be given another wage increase of 7% on their basic salary. This second increment shall be calculated on the resultant salary after the 1st year increase.

28. DEATH OF AN EMPLOYEE

(a) When the death of an employee while in service from any cause whatsoever is brought to the knowledge of the employer, the employee shall pay to the dependant relatives of the deceased the sum of money calculated in accordance with the clauses herein and entered on his/her record of service.

(b) Should an employee, during the course of his employment be killed or incapacitated by injury for a period exceeding three days, his employer shall as soon as practicable, send to the labour officer, or a District Labour Commissioner a report in the prescribed form.

(c) The employer, through an insurance, will pay Kshs.53,500/- towards funeral expenses.

29. EFFECTIVE DATE AND DURATION

This Agreement shall become effective from 1st February 2014 and shall remain in force for a period of two years and thereafter it shall continue to be in force until such time as it shall be amended by Agreement of both parties.

SIGNED: FOR AND ON BEHALF OF M/S THIKA MOTOR DEALERS LIMITED

.........................................……………………………….

GEORGE K. WAMBUGUJOHN M. KABENA

MANAGING DIRECTORDIRECTOR

SIGNED: FOR AND ON BEHALF OF AMALGAMATED UNION OF KENYA METAL WORKERS:

………………………………….

JUSTUS MAINA OTAKWA

GENERAL SECRETARY

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

SAMSON MWANGI

CHIEF SHOPSTEWARD

IN THE PRESENCE OF:

………………………………….

LINUS W. KARIUKI

HEAD OF INDUSTRIAL RELATION SERVICES

FEDERATION OF KENYA EMPLOYER

SIGNED THIS ………. DAY OF ..................... 2014 /jan

KEN M/S. Thika Motor Dealers Limited - 2014

Start date: → 2014-01-01
End date: → 2016-12-31
Name industry: → Retail trade, Wholesale
Name industry: → Wholesale of other machinery, equipment and supplies
Public/private sector: → In the private sector
Concluded by:
Name company: →  M/S. Thika Motor Dealers Limited
Names trade unions: →  COTU - Amalgamated Union of Kenya Metal Workers

TRAINING

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

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 33 %
Maximum days for paid sickness leave: → 150 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: → No
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: → 30 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: → 6.0
Paid annual leave: → 23.0 days
Paid annual leave: → 4.0 weeks
Paid bank holidays: → Birthday of the Prophet Muhammad / Prophet PBUH Birthday / Mouloud / Eid Milad-un-Nabi (twelfth day of Rabi) , Christmas Day (25th December), Easter Sunday (first Sunday after the full moon following 21st March), Idd – ul – Fitr, Army Day / Feast of the Sacred Heart/ St. Peter & Paul’s Day (30th June), John Chilembwe Day (15th January)
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 9649.0
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → 7.0 %
Wage increase starts: → 2014-07

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Premium for Sunday work

Premium for Sunday work: → 200 %

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
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