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MEMORANDUM OF AGREEMENT BETWEEN WELDING ALLOYS LIMITED (HEREINAFTER CALLED THE "COMPANY" OF THE FIRST PART) AND AMALGAMATED UNION OF KENYA METAL WORKERS (HEREINAFTER CALLED THE "UNION" OF THE SECOND PART)

PREAMBLE

The parties to this Agreement meeting together in free and voluntary Association have determined to regulate relations between the said parties in the interest of the 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:-

a) Machinery for the speedy settlement of Industrial disputes.

b) A channel of communications between Management and the Workers

c) Collective Bargaining for negotiations on terms and conditions of employment.

PART 1: TERMS AND CONDITIONS OF EMPLOYMENT

1. SUBJECT MATTER:

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.

2. WORKING HOURS

The normal working hours shall be 45 hours a week, spread over six days of the week, provided that an 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 3 of this Agreement.

3. OVERTIME

a) For hours worked on Monday to Saturday in excess of hours set out in clause 2 - Time and a half.

b) For hours worked on Saturday excess of hours set out in clause 2 - time and a half

c) For hours worked on Sunday or Gazetted Public Holidays - double time.

4. ANNUAL LEAVE

a) Any employee who has completed 12 months uninterrupted service or more with the company shall be entitled to annual leave as follows:

i) Employees who have less than 8 years service 29 working days.

ii) Employees with 8 years and above 31 working days.

b) The full leave period will be determined by the Employers and has the right on compassionate grounds to allow otherwise depending on manufacturing demands.

5. L EAVE TRAVELLING ALLOWANCE

An employee proceeding on annual leave will be entitled to leave travelling allowance of Kshs.3,500/-.

6. COMPASSIONATE LEAVE AND LEAVE OF ABSENCE

An employee may be given compassionate leave or leave of absence at the discretion of the company which leave shall not be unreasonably refused or delayed. Such leave may either be deducted from annual leave or be unpaid.

7. SICK LEAVE

After three (3) months continuous service with the company an employee shall be entitled to sick leave as follows:-

a) An employee with up to five (5) years of service shall be entitled to one month's sick leave with full pay and thereafter one month's sick leave with half pay in each period of twelve months consecutive service

b) An employee with over five (5) years service shall be entitled to 60 days sick leave with full pay and thereafter 90 days sick leave with half pay in each period of twelve months consecutive service.

Provided that:-

i) An employee shall not be entitled to such leave unless he produces to the employer a certificate of incapacity covering the period of sick leave claimed signed by a duly qualified medical practitioner or a person acting on behalf of the medical practitioner in charge of a dispensary or a medical aid centre.

ii) An employee shall not be eligible for sick leave under this clause in respect of any incapacity due to gross negligence on his part.

c) An employee on sick leave will produce a certificate of incapacity to work signed by a duly qualified medical practitioner or a person acting on behalf of the medical practitioner in charge of a dispensary or a medical aid centre.

8. MATERNITY/PATERNITY LEAVE

(a) Every female employee shall be entitled to three months maternity leave with full pay. Provided that a woman who has taken three months maternity leave shall not forfeit her annual leave in that year. Such an employee shall, also, be entitled to leave travelling allowance.

(b) A male employee shall be entitled to two weeks paternity leave with full pay.

(c) An employee who wishes to proceed on Annual Leave, Maternity leave or paternity leave shall apply for the leave 14 days in advance.

9. SAFARI SUBSISTENCE ALLOWANCE

An employee who is required to perform work away from his/her normal area of employment shall be entitled to the paid meals and accommodation allowance as follows:-

Breakfast-Kshs..................... 400/=

Lunch-Kshs.......................... 575/=

Supper-Kshs........................ 575/=

Accommodation-Kshs......... 1300/=

10. TERMINATION OF EMPLOYMENT

After completion of probationary period, the contract of employment shall be terminated by either giving the following notice or payment in lieu

a) An employee with one month to 5 years service - one month's notice or pay in lieu which shall be inclusive of house allowance.

b) An employee with 5-10 years service - two months' notice or pay in lieu which shall be inclusive of house allowance.

c) An employee with over 10 years service and above - three months notice or pay in lieu which shall be inclusive of house allowance.

d) Nothing in this clause shall prejudice the right of either party to terminate the contract summarily for lawful cause.

11. WARNING PROCEDURE

An employee who is guilty of an offence other than gross misconduct or other lawful cause of dismissal may be given written warning which should be entered in the employment record file/card and shall remain valid for a period of twelve months from the date of issue.

a) If within the twelve months an employee commits a similar or another offence which does not warrant dismissal, he will be further warned in writing in his/her employment record and the two warnings shall remain valid for a period of 12 months from the date of second warnings.

b) If within the twelve months period the employee commits a further offence, which does not warrant dismissal, he will be further warned in writing in his/her file/card and this will be his/her final warning letter which will make him/her to summarily dismissal for any other offence.

c) Final letter of warning will remain valid for a period of one year from the date of issue.

d) Copies of all warning letters shall be given to the Chief Shopsteward and a final warning letter shall be copied to both the Union and FKE (Federation of Kenya Employers).

e) Should any employee disclose the company's secrets of manufacturing data, he/she would be dismissed immediately without notice, the same applies to any employee who is stealing company's properties.

12. REDUNDANCY

a)For the purpose of this agreement, redundancy shall mean loss of employment through no fault of the employee concerned occasioned by re-organisation, mechanisation or lack of orders, imported raw materials to be processed, etc.

b) Alternative Employment

In an effort to avoid redundancy, the company will endeavour to arrange suitable alternative employment within the company. If alternative employment is not acceptable to the employee concerned, he will be classified as redundant and therefore, be eligible for the entitlement outlined in clause F.

c) In the event of redundancy, the company undertake 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 employees 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, 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 an employee being declared redundant, he will be entitled to:-

1) Appropriate notice or pay in lieu of notice as defined in the Agreement will be inclusive of house allowance.

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

3) Pro-rata leave and leave allowance entitled in accordance with the agreement.

4) The redundant employee shall be entitled to severance pay at the rate of 24 days per each completed year of service plus 11 days gratuity for every completed year of service. Payment in respect of complete years/months will be calculated on pro-rata basis.

13. ABSENTEEISM

Any employee who is absent for seven (7) consecutive days or a total of ten (10) days in any one calendar year without permission be deemed to have left his/her employment and will not be allowed to return to his work except when he produces satisfactory evidence that absence was warranted.

14. SUSPENSION

When an employee is suspended due to misconduct or gross negligence on his/her part, the suspension will be 14 working days without pay. If the employee is reinstated he/she will be paid for the period he/she has been on suspension.

15. PROTECTIVE CLOTHING

All employees whose nature of work necessitates the wearing of protective clothing shall be provided with two pairs of uniforms per year and two bars of soap per month by the employer at his own expense.

The protective clothing shall remain the property of the employer but the employee shall be responsible for the cleaning of the uniform issued to him.

16. ACTING ALLOWANCE

An employee who is required to act in a higher grade for a period of seven days or more shall be paid his own salary plus 25% of the basic salary of the person for whom he is acting or the difference whichever is less.

17. RETIREMENT/PENSION SCHEME

i) An employee who retire or be retired on reaching the retirement age of 60 years or on medical ground approved by a qualified medical practitioner.

ii) Either party shall give appropriate notice on retirement or shall pay in lieu of the appropriate notice which shall be inclusive of the house allowance.

b) All unionisable employees shall be automatically enrolled as members of the Welding Alloys Ltd Pension Scheme after satisfactory completion of their probationary period stipulated in their contracts of employment.

18. BASIC MINIMUM EXCLUDING HOUSE ALLOWANCE

1st year (Kshs.) 2nd year (Ksh.)
Category I

Cleaners, Sweepers, Gardeners, House Servants, Tea Makers, Day Watchman

10,281.00 10,760.00
Category II

Turnboys, Waiters, Cooks

11,064.00 11,620.00
Category III

Night Watchman

11,412.00 12,003.00
Category IV

Machine Attendants, Chemical Weighers

11,586.00 12,195.00
Category V

Drivers – Light Van, Shop,

Assistant, Ungraded Artisan

13,702.00 14,522.00
Category VI

Artisans Grade III,

Forklift Drivers, Medium Sized vehicles

17,103.00 18,263.00
Category VII

Receptionists, Storekeepers, Telephone Operators

15,565.00 16,572.00
Category VIII

Artisan Grade II1

8,432.00 19,725.00
Category IX

Cashiers, Salesmen,

Artisan Grade I, Heavy commercial vehicles

22,571.00 24,278.00

19. GENERAL WAGES INCREASE

a) All employees who are in service prior to 1st August, 2013 will receive a wage increase of 12% for the 1st year and 12% for the second year.

20. HOUSING ALLOWANCE

Every employee who is not provided with the house accommodation by the company shall be entitled to a house allowance of Kshs.3,800/= for the 1st year and Kshs. 4,000 for the second year..

21. DEATH OF AN EMPLOYEE

(a) In the event of the death of an employee, the Company shall contribute up to Fourty Two thousand only (Kshs.42,000/-) towards funeral expenses.

22. UNION TRAINING

The Company will grant union officials time off with full pay to attend union training provided such permission is requested from the company within 1 week notice.

23. SHIFT ALLOWANCE

All employees working on night shift will be paid shift allowance of Kshs.20/- per night.

24. BAGGAGE ALLOWANCE

An employee who retires from employment, or is declared redundant or is relocated to another branch shall be entitled to baggage allowance of Kshs. 4,300/=.

25. DURATION AND EFFECTIVE DATE

This agreement shall be effective as from 1st August, 2013 and it shall remain in force for a period of two years. Thereafter it shall remain in force until it is amended by mutual agreement between the parties, provided that the party intending to amend it gives one month notice prior in writing setting out in details all the amendments required.

SIGNED: FOR AND ON BEHALF OF THE COMPANY

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

J.V. PATELD.

MANAGING DIRECTOR

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

J. PATEL

DIRECTOR

FOR AND ON BEHALF OF THE UNION

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

JUSTUS MAINA OTAKWA

GENERAL SECRETARY

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

WASHINGTON OKWARA

DEP. SECRETARY GENERAL

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

GEOFFREY RONO

CHIEF SHOPSTEWARD

WITNESSED BY:

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

G.R. AMBUCHE

INDUSTRIAL RELATIONS OFFICER

SIGNED IN NAIROBI THIS ................ DAY OF .................... 2013

/jan

KEN Welding Alloys Limited - 2013

Start date: → 2013-08-01
End date: → 2015-07-31
Name industry: → Manufacturing
Name industry: → Manufacture of basic metals
Public/private sector: → In the private sector
Concluded by:
Name company: →  Welding Alloys 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): → 25 %
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: → 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: → Not specified 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: → 29.0 days
Paid annual leave: → 5.0 weeks
Paid bank holidays: → Christmas Day (25th December), 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)
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: → 12.0 %
Wage increase starts: → 2013-08

Premium for evening or night work

Premium for evening or night work: → KES 20.0 per month
Premium for night work only: → Yes

Extra payment for annual leave

Extra payment for annual leave: → KES 3500.0

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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