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MEMORANDUM OF AGREEMENT BETWEEN THE MEMBER COMPANIES OF KENYA PAINT MANUFACTURERS GROUP OF THE FEDERATION OF KENYA EMPLOYERS And THE KENYA CHEMICAL AND ALLIED WORKERS’ UNION

FROM 1.07.2014 TO 30.06.2017

PREAMBLE

The terms and conditions of service as set in this Agreement shall be observed by the Group of all employees subject to the current agreement between the Federation of Kenya Employers and the Central organization of Trade Union (K) on Supervisory, Confidential and Managerial Staff.

PART I. WAGES IN SHILLINGS PER MONTH

Minimum consolidated wages (i.e. including house allowance) shall be paid monthly in arrears, in accordance with the following schedule:

Old Rate To 30.6.14

w.e.f 1.7.14 9%

w.e.f 1.7.15 9%

w.e.f 1.7.2016 9%

GRADE I

Clerk Class I

Plant Operator

Charge Hand

Laboratory Tester

Shade Tinter Class I

64,428.00

70,227.00

76,547.00

83,436.00

GRADE II

Clerk Class II

Shade Tinter Class II

Automotive Machine Filler

58,319.00

63,568.00

69,289.00

75,525.00

GRADE III

Van Driver

Semi-automatic Machine filler

Delivery Man

Raw Material Weighman

Machine Operator Class I

46,615.00

50,810.00

55,383.00

60,367.00

GRADE IV

Machine Operator Class II

Forklift Operator

Labeler

Maintenance Man

General Painter

Packer / Manual Filler

44,353.00

48,345.00

52,696.00

57,439.00

GRADE V

Messenger / Kitchen Attendants

40,270.00

43,894.00

47,844.00

52,150.00

GRADE VI

General Labourer

36,728.00

40,034.00

43,637.00

47,564.00

NOTES:

1. Provided that the employee already earning above their grade rate and/or who are in respect of an incentive pay shall not receive less than the increment amounts pertaining to their respective job grades.

2. CALCULATIONS: The figures in columns 2, 3 & 4 have been

Arrived at by adding 9% 1st year, 9% 2nd year and 9% 3rd year on consolidated wages.

PART II – TERMS AND CONDITIONS OF SERVICE

1. PROBATIONARY PERIOD

An employee shall be on probation for a period not exceeding three months from the date of engagement and during this period such employee shall be subject to one week’s notice or one week’s pay in lieu of notice. On completion of the probationary period an employee shall be regarded as being on the permanent establishment.

2. WORKING HOURS

The normal week shall be 42 hours spread over 6 days of the week.

3. OVERTIME

Any employee required to work hours in excess of those specified in the normal working week shall be remunerated on the following basis:

For hours worked on weekdays-Time and a half

For hours worked on Saturdays- Time and a half

For hours worked on Sundays and

Gazetted Public Holidays- Double time

4. UNIFORM AND PROTECTIVE CLOTHING

(a) Uniforms: Any employee who is required to wear uniform shall be provided at the employer’s expense with two sets per annum.

The employer shall be responsible for laundering the uniforms but where this is impracticable; it shall be permissible for the employer to provide the employee with suitable washing materials.

(b) The provision and maintenance of suitable protective clothing and appliances shall be in accordance with the provision of Occupational Safety and Health Act, 2007.

5. GAZETTED PUBLIC HOLIDAYS

Gazetted public Holidays shall be granted as leave with full pay provided that where an employee is required to work on public Holiday then he/she shall be remunerated in accordance with clause 3 for any hours worked.

6. ANNUAL LEAVE

(a) Employees shall be granted 26 working days leave with full pay on completion of each twelve months continuous service. Employees who have completed five years and over continuous service with the company shall be granted 30 days leave with full pay after such twelve months continuous service.

(b) When employment is terminated after the completion of two or more consecutive months of service during any twelve months, leave with full pay in respect of each completed month of service in such period to be taken consecutively.

7. COMPASSIONATE LEAVE

(a) An employee desirous of taking leave on compassionate grounds shall with prior arrangements with the company, be granted such leave up to his/her earned entitlement under clause 6 of this agreement and the leave taken shall be subsequently set off against his/her annual leave.

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

8. SICK LEAVE

An employee who is absent through sickness other than that caused by his/her own misconduct or as a result of an infectious disease or being ordered into hospital by Medical Officer of the Health under section 26 and 27 of the Pubic Health Act, shall be granted sick leave. Sick leave shall be granted up to a maximum of 50 days on full pay and 50 days on half pay in one year, provided that the sick leave shall only be granted:-

(a) After the completion of probationary period.

(b) On production of a certificate from a registered medical practitioner certifying the need for such leave.

(c) But shall not be accumulated.

9. MATERNITY LEAVE/PATERNITY LEAVE

The provisions of the Employment Act, 2007 shall apply.

10. LEAVE TRAVEL ALLOWANCE

Employees proceeding on annual leave shall be granted a leave travel allowance as follows:-

1st year -Kshs. 6,300.00

2nd year-Kshs. 6,550.00

3rd year -Kshs. 6,850.00

11. INJURY BY ACCIDENT

The provision of the Work Injury Benefits Act, 2007 shall apply.

12. MEDICAL TREATMENT

Medical Treatment shall be provided in the manner set out in the Employment Act, 2007.

13. SAFARI ALLOWANCE

Where an employee is required by the employer to work at a place other than his/her normal place of employment, then he/she shall be reimbursed all reasonable out of pocket expenses subject to the provision of receipted accounts.

14. SHIFT ALLOWANCE

Employee engaged on shift work shall be paid in addition to their normal remuneration, a shift allowance. The shift allowance shall consist of a payment of 17% of the amount earned during the month whilst engaged on shift work.

15. NIGHT TRANSPORT

Employee who start and finish night shift at 12.30 a.m. will be provided with transport to and from an agreed point within the city boundary. The allowance shall not be taken as part of the basic wage and shall not be considered when calculating overtime or provident Fund contributions. An Employee engaged on shift work shall not leave his/her place of work until relieved or until he is authorized to do so by his/her supervisor. Employees who leave their place of work as from 7.00 p.m. will be provided with transport.

16. ACTING ALLOWANCE

An employee who is required to act in a job whose category is higher than his/her substantive appointment and who is able to assume the entire function and responsibility of the higher job shall be granted an Acting Allowance which shall not be less than the higher basic grade provided that the Acting Allowance shall only be paid after the employee has completed one week in the higher category.

17. GRATUITY

Gratuity shall be payable to employees in accordance with the following clause in respect of persons who are not covered by the Company’s Provident Fund.

(a) An employee on completion of one year continuous service shall be entitled to 15 days pay for every completed year of service by way of gratuity to be based on the employee’s wages at the time of the termination of services.

(b) An employee who is dismissed for misconduct shall not be entitled to gratuity.

18. CASUAL LABOUR

An employee engaged on casual basis shall be employed at the appropriate rate for the job in which he/she is employed.The daily rate to be established by dividing the appropriate consolidated monthly rate by 26. A casual worker should not be employed for a period in excess of 3 continuous months.

19. TERMINATION OF SERVICE

(a) After the probationary period, and in the normal circumstances, employment shall be terminated by either party giving notice as follows:

(i) Employees with less than 5 years service-one month’s notice or pay in lieu thereof.

(ii) Those with 5 years services and over-two month’s notice or pay in lieu thereof.

b) Nothing in paragraph (a) of this clause shall prejudice the right of the Company to terminate the services of any employee summarily for gross misconduct as provided by section 44 (4) of the Employment Act 2007.

20. REDUNDANCY PROBLEM

a) Definition

“Redundancy” means the loss of employment, occupation, or job career by involuntary means (through no fault of an employee) involving termination of employment at the initiative of the employer where the services of the employee are superfluous, and loss of employment due to the Kenyanization by 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 alternative employment is not acceptable to the employee concerned; he/she will be classified as redundant and therefore eligible for the entitlement outlined in clause (f).

c) Conclusion

In the event of redundancy, the company undertakes to hold prior discussion with the union concerning reasons for and the extent of intended redundancy.

d) Selection

In deciding which employee shall be declared redundant the company will assess the relative merits, ability and reliability of the affected employees, but when those factors are equal the discharge will be on the basis of seniority. Membership or non-membership of the union will not be a factor.

e) Re-Engagement of Redundant Employees

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 an employee being declared redundant he/she shall be entitled to:-

(i) The normal notice or pay in lieu of notice as defined in the agreement.

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

(iii) Pro-rata leave and leave allowance entitlement in accordance with the agreement.

(iv) Severance pay on the basis of 23 days for each completed year of service.

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

21. WARNING SYSTEM

An employee who is guilty of an offence other than gross misconduct or other lawful cause of dismissal may be given a written warning which shall be entered in the employee’s employment record card and shall remain valid for a period of 12 months from the date of issue. If within the 12 months period, the employee commits a similar or any offence which does not warrant dismissal, he/she will be further warned in writing in his/her employment record card and the warning shall remain valid for a period of 12 months from the date of the second warning. If, within these 12 months the employee commits a further offence which does not warrant dismissal, he/she will be issued with a final letter of warning which will make him liable of summary dismissal for any other offence which may be committed thereafter. A final letter of warning will remain valid for a period of one year from the date of issue. A copy of the final warning letter shall be sent to the General Secretary of the Union.

22. DEATH OF EMPLOYEE

1. When the death of an employee from any cause whatsoever, is brought to the notice, or comes to the knowledge of his/her employer, the employer shall as soon as practicable thereafter, give notice thereof in the prescribed form to the Labour Officer or if there is no Labour officer to the District Commissioner of the District in which the employee was employed. The employer will assist in burial arrangements by providing a coffin, Transport and settlement of the mortuary bill.

2. The employer shall pay to the Labour Officer or District Commissioner as the case may be, all wages due to the employee at the date of his/her death, and shall deliver to him all the property belonging to the deceased for transmission to the person legally entitled thereto.

3. Should an Employee during the course of his/her employment be killed or incapacitated by injury for a period exceeding three days, his/her employer shall, as soon as practicable send to the County Occupational Safety and Health Officer or if, there is no OSH Officer to a District Commissioner a report in the prescribed form.

23. SUMMARY DISMISSAL

Any of the following matters 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 employee from respectively alleging or disputing whether the facts giving rise to the same or whether any other matter not mentioned in this section constitutes justifiable or lawful grounds for such dismissal.

(a) If, without leave or other lawful cause an employee absents himself from the proper place appointed for performance of his/her work.

(b) If, during working hours, by becoming or being intoxicated an employee renders himself/herself unwilling or incapable to perform his/her work properly.

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

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

(e) If, an employee knowingly fails or refuses to obey any lawful and proper command which was within the scope of his/her duty to obey, issued by his/her employer or any person placed in authority over him/her by his/her 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 fourteen (14) days either released on bail or on bond or otherwise lawfully set at liberty.

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

24. CERTIFICATE OF SERVICE

1. Every employee shall be given a certificate of service upon termination of his/her employment unless such employment has continued for a period of less than four consecutive weeks, and every such certificate shall contain:

(a) The name of the Employer and his postal 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

(f) Such other particulars as may be prescribed.

2. Subject to sub-section one of this section, no employer is bound to give any employee any testimonial reference or certificate relating to the character or performance of an employee.

3. Any Employer who willfully or by negligence fails to give an employee a certificate of service in accordance with section (1) of this section or who in a certificate of service includes a statement which he knows to be false shall be guilty of an offence.

25. BAGGAGE ALLOWANCE

An employee who retires on normal retirement age, or on ill health or declared redundant, will be paid Ksh 10,800.00 baggage allowance. An employee who is dismissed or his/her services are terminated or resigns will not be entitled to this.

26. DISTURBANCE ALLOWANCE

It is agreed that, an employee being transferred to a new place outside his/her principal area of employment, the company will take care of such an employee with his/her family until he/she is settled.

27. EFFECTIVE DATE AND DURATION

This agreement shall be implemented with effect from 1st July 2014 and shall remain in force thereafter for a period of three years (36 months). On completion of that period it may be amended by either party giving one month’s notice in writing of the desire to amend (or terminate it) stating the amendments required.

SIGNED FOR AND ON BEHALF OF EMPLOYERS

……………………………………..………………………………………

MATTHEW AKOYINICHOLAS WANAMBISI

FINANCE DIRECTORGROUP HUMAN RESOURCE MANAGER

SADOLIN PAINTS (EA) LTDCROWN PAINTS KENYA LTD

SIGNED FOR AND ON BEHALF OF THE UNION

………

………………………………….

W. D. OGUTU (OGW)

NATIONAL GENERAL SECRETARY

WITNESSED BY:

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

JAMES ODORO OBURAGEORGE GWAKO

AREA SECRETARYRIRA

NAIROBI, CENTRAL

AND EASTERN PROVINCES

………………………………….…………………………………….

JAMES .M. KARIUKI JAPHETH .A NDOLO

SHOP STEWARDSHOP STEWARD

SADOLIN PAINTS (EA) LTDCROWN PAINTS KENYA LTD

IN THE PRESENCE OF:-

……………………………………….

MOSES OMBOKH

SENIOR INDUSTRIAL RELATIONS OFFICER – FKE

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

The Member Companies of Kenya Paint Manufacturers Group - 2014

Start date: → 2014-07-01
End date: → 2017-06-30
Name industry: → Manufacturing
Name industry: → Manufacture of chemicals and chemical products
Public/private sector: → In the private sector
Concluded by:
Names associations: → The Member Companies of Kenya Paint Manufacturers Group
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: → 
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: → 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
Paid leave per year in case of caring for relatives: → 5 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 week: → 42.0
Working days per week: → 6.0
Paid annual leave: → 26.0 days
Paid annual leave: → 4.0 weeks
Paid bank holidays: → Christmas Day (25th December), Easter Monday, Army Day / Feast of the Sacred Heart/ St. Peter & Paul’s Day (30th June), Chile Independence Day (18th September), National Women's Day (9th August)
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
Adjustment for rising costs of living: → 

Wage increase

Wage increase starts: → 2014-07

Premium for evening or night work

Premium for night work only: → Yes

Extra payment for annual leave

Extra payment for annual leave: → KES 6300.0

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Premium for Sunday work

Premium for Sunday work: → 100 %

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
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