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MEMORANDUM OF AGREEMENT ON TERMS AND CONDITIONS OF EMPLOYMENT Between CARBACID (CO2) LIMITED And KENYA CHEMICAL & ALLIED WORKERS’ UNION

1. SUBJECT MATTER

The terms and conditions of employment set out in this Agreement shall be observed by both parties and shall apply to all employees/workers covered by the Joint Recognition Agreement.

2. EMPLOYEES IN ACTING CAPACITY

An employee temporarily acting in a higher grade job for a period of fourteen consecutive days or more in any one calendar year shall receive the agreed salary for that grade for those days he/she occupies the position.

3. GENERAL WAGE INCREASE

(a) Employees in service as of 1st August 2013 shall earn a wage increase as follows;

Year 1 (Aug 2013 – July 2014); 10%

Year 2 (Aug 2014 – July 2015); 8%

Year 3 (Aug 2015 – July 2016); 9%

(a) House Allowance

Employees in service as of 1st August 2013 and who are not housed by the Company shall earn a house allowance of 15% of their salary.

4. WORKING HOURS

An employee shall normally be required to work, whether on shift or otherwise, a total of forty two (42) hours spread over six (6) days per week exclusive of the meal break hours, provided that an employee who is required to work in excess of such hours will be paid for such excess hours at the appropriate rate as provided by Clause (5) of this Agreement.

5. OVERTIME RATES

Overtime rates shall be as follows:-

(a) For hours worked on weekdays in excess of hours set out in Clause (4) – Time and half.

(b) For hours worked on Saturdays in excess of hours set out in Clause (4) – Time and half.

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

6. GAZETTED PUBLIC HOLIDAY

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 for double time as provided by overtime Clause (5).

7. ANNUAL PAID LEAVE

After each period of twelve consecutive months with an employer an employee shall be entitled to annual leave for a period covering twenty-six (26) working days with full pay. Leave to be taken at the employer’s convenience. In the event of statutory Public Holidays falling within the leave period, such holidays shall be added to leave entitlement.

8. COMPASSIONATE LEAVE

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

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

9. SICK LEAVE

An employee shall be entitled to sick leave up to a maximum of fifty (50) days with full pay, and thereafter to sick leave up to a maximum of thirty (30) days with half pay, in each period of twelve months continuous service. Subject to the employee producing a certificate of incapacity covering each period of sick leave claimed, signed by a Medical Practitioner or person acting on his behalf in charge of a dispensary or medical aid centre.

10. INJURY BY ACCIDENT

In case of an injury to an employee where the Work Injuries Benefit Act (WIBA) requires the payment of not less than half salary for any period of temporary incapacity, the employee shall receive full salary. In case this guiding Act is repealed, then the terms of any new Act in force and amendments thereof will apply.

11. SAFARI ALLOWANCES

An employee who is required to perform work away from his principal place of employment shall be entitled to be paid subsistence allowance as set out in Clause 26: -

(a) For any such period of duty lasting up to 12 hours, not including a night stop.

(b)For any such period of duty lasting over 12 hours but not exceeding 24 hours, not including a night stop.

(c)For any such period of duty covering 24 hours and including a night stop.

12. DRIVER & TURNMATES TRIP ALLOWANCES

Drivers and Turn mates will not normally be paid safari allowances or overtime when making Bulk CO2 deliveries but will be paid a consolidated trip allowance to each destination.

In the event of excessive delays on the journey due to circumstances entirely beyond the control of the driver appropriate additional compensation will be made in accordance with a, b or c above.

When Drivers and Turn mates work overtime at their base they will be compensated at normal rates.

13. CERTIFICATE OF SERVICE

On termination of employment, an employee may request the Company for a certificate stating the period for which he/she has been employed. This will be issued in accordance with the Employment Act, Section 51.

14. TERMINATION OF SERVICE

Employment after the probationary period shall be terminable by not less than one month’s notice to be given by either party or otherwise by payment by either party, in lieu of notice, of not less than one month’s pay, except where an employee is summarily dismissed for gross misconduct or other lawful cause as prescribed in the Employment Act.

15. 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 twelve months from the date of issue. If, within the twelve months period the employee commits a similar or any other offence which does not warrant dismissal, he will be issued with a final letter of warning which will make him liable to summary dismissal for any other offence which he may commit 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 shall be sent to the General Secretary of the Union.

16. PROBATIONARY PERIOD

The first three months of employment shall be treated as probationary period. During such probationary period, services shall be terminable by either party by giving seven days notice or pay in lieu.

17. MATERNITY & PATERNITY LEAVE BENEFITS

(i) Subject to the employee producing a certificate signed by a medical practitioner in charge of a dispensary, or medical practitioner in charge of a medical aid centre, or by a person acting on his behalf, a female employee shall be entitled to Three months maternity leave with full pay.

Provided that:-

(a) Childbirth in respect of a female employee shall not be deemed to be sickness as provided for under Clause (8) of this Agreement and the employer shall not be required to meet medical costs incurred thereon.

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

(ii) A male employee will be entitled to 14 days paternity leave in respect of child birth by a legally married partner.

18. LEAVE TRAVELLING ALLOWANCE

An employee upon taking his annual leave shall be entitled to a leave travelling allowance at a flat rate of Kshs. 7,500 once per annum.

19. RECALL ALLOWANCE

An employee recalled to duty while one his annual leave will be paid a recall duty allowance of Kshs. 4,000 to carter for the expenses of travelling back to work

20. UNIFORMS AND OVERALLS

An employee who is required to wear uniform or overalls by nature of his/her work or in accordance with the provisions of The Occupational Safety and Health Act, 2007 , shall be issued with two pairs of uniforms or overall, one (1) pair of safety boots and personal protective equipment (PPE). Kagwe staff shall in addition obtain one (1) sweater, with security guards obtaining a raincoat each. The company shall also provide two (2) bars of soap per month to all employees for cleaning.

21. MEDICAL TREATMENT

Employees shall be provided with medical care as per the prevailing Company medical scheme and in line with the provisions of the Employment (Medical Treatment) Rules 1977. Any amendments to this rule shall also be observed.

22. REDUNDANCY

In the event of redundancy the following principles shall apply:-

(a) The union shall be informed by the employer of the reasons for and the extent of the intended redundancy.

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

(c) The redundant employee shall be entitled to the appropriate period of notice or pay in lieu.

(d) The redundant employee shall be entitled to severance pay on the basis of twenty (20) days for each completed year of service.

(e)“ 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 an employee are superfluous, and the practices commonly known as abolition of office, job or 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.

23. BAGGAGE ALLOWANCE

Upon redundancy, retirement on medical grounds or otherwise an employee shall be eligible for a Baggage Allowance of Kshs. 15,000 to assist the employee ferry his/her belongings to the place of retirement.

24. GRATUITY OR SERVICE BENEFITS

An employee in Service before 31st October 2001 and leaves employment of the company by way of retirement on attaining the age of 60 years, retired on medical grounds, terminated or resigns on his/her own accord shall be paid 17 days for each completed year of service for the years served prior to 31st. October 2001. The parties agreed that the Gratuity benefits for such employees shall be settled as follows; 75% to be transferred to the Carbacid Provident Fund and 25% to be paid out to the employee. The gratuity payment shall be computed based on the wage rate as at 31st July 2011.

25. SHIFT DIFFERENTIAL

In addition to the basic wages/salaries, employees working a 24 hours or less shift cycle as a team will be paid a shift differential (as stipulated below) to compensate them for the inconvenience involved in performing shift roster work. Will earn a Shift Differential Allowance at 15% of their basic wages, this shift differential will not be included in the basic wage and accordingly will not be taken into account when calculating Provident Fund contributions and overtime pay. The shift differential is intended to compensate individuals for the inconvenience involved in shift roster work, it will therefore not be paid when an employee is sick or on leave, or if shift work is not performed on any day for any other reason unless the change to day work has been occasioned by the Management on that week in which the employee has worked at least one shift. In order to ensure continuity of operation all shift employees will continue working until permitted to leave by the Manager or Supervisor in charge.

26. FUNERAL EXPENSES

If an employee dies, whilst in the service of the Company, an amount of shs.80,000/- will be paid to the next of kin to assist with the cost of burial. The next of kin shall be a person listed in an employee’s personal detail form prior to his/her demise

27. BASIC RATES PER MONTH - FOR THE PERIOD 1ST AUGUST 2013 to 31ST JULY 2016

ITEM

Wage Increase (rounded)

Out going

13%

13 _ 14

10%

14 _ 15

8%

15 _ 16

9

Wages Group 1 - Nbo

Wages Group 2 - Nbo

Wages Group 3 - Nbo

Wages Group 4 - Nbo

Housing Group 1 - Nbo

Housing Group 2 - Nbo

Housing Group 3 - Nbo

Housing Group 4 - Nbo

Wages Group 1 - Kagwe

Wages Group 2 - Kagwe

Wages Group 3 - Kagwe

Wages Group 4 - Kagwe

Housing Group 1 - Kagwe

Housing Group 2 - Kagwe

Housing Group 3 - Kagwe

Housing Group 4 - Kagwe

Trip – Nairobi/Ruaraka

Trip – Machakos/Nakuru

Trip – Nyeri

Trip – Kericho

Trip – Eldoret

Trip – Kisumu

Trip – Kisii

Trip – Arusha

Trip – Moshi

Trip – Mombasa

Trip – Mwanza

Trip – Kampala

Trip – Mbarara

Trip – Dar es Salaam

Trip – Gisneyi

41,336.00

36,595.00

30,731.00

26,882.00

6,200.00

5,489.00

4,610.00

4,032.00

38,894.00

34,414.00

28,843.00

25,255.00

5,834.00

5,162.00

4,326.00

3,788.00

995

1,900

3,760

4,720

5,695

6,135

6,620

7,430

7,825

9,420

11,295

11,795

13,920

14,095

18,795

45,470

40,255

33,804

29,570

6,825

6,040

5,071

4,436

42,783

37,855

31,727

27,781

6,418

5,678

4,759

4,167

995

1,900

3,760

4,720

5,695

6,135

6,620

7,430

7,825

9,420

11,295

11,795

13,920

14,095

18,795

49,108

43,475

36,508

31,936

7,366

6,521

5,476

4,790

46,206

40,883

34,265

30,003

6,930

6,133

5,140

4,501

995

1,900

3,760

4,720

5,695

6,135

6,620

7,430

7,825

9,420

11,295

11,795

13,920

14,095

18,795

53,528

47,389

39,794

34,810

8,029

7,108

5,969

5,222

50,365

44,562

37,349

32,703

7,555

6,684

5,602

4,905

995

1,900

3,760

4,720

5,695

6,135

6,620

7,430

7,825

9,420

11,295

11,795

13,920

14,095

18,795

No Unionisable Employee of the Company will get less than the increase agreed upon between the parties.

28. EFFECTIVE DATE AND DURATION

This Agreement shall be effective as from 1st August 2013 and shall remain in force for a period of three years. Thereafter, the agreement shall continue in force until it is amended, provided that the party desiring to amend it gives one month’s notice in writing setting in details of the amendments so required.

For and on behalf of the Company

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

HON. MAINA WANJIGI, EGH

CHAIRMAN

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

G. MASESE

CHIEF OPERATING OFFICER

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

A. JIVANJEE J.WEKESA

FINANCE & ADMIN MANAGERHUMAN RESOURCES OFFICER CARBACID

For and on behalf of the Union

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

W. D. OGUTU OGW

NATIONAL GENERAL SECRETARY

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

HEZRON O ANYUOJAMES O OBURA

DEPUTY NATIONALAREA SECRETARY

GENERAL SECRETARYNAIROBI, CENTRAL & EASTERN

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

P.WAMUTORO H.SHITEMIJ.J. OKELLO

SHOPSTEWARDSHOPSTEWARDSHOPSTEWARD

In the presence of

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

G.R. AMBUCHE

EXECUTIVE OFFICER - F.K.E.

SIGNED ON .............................OF ............................. 2014 at Nairobi

APPENDIX “B”

GROUP 1Senior Clerk (Chief)

Artisan – Grade 1

Driver – Heavy Commercial Vehicle

Senior fitter

GROUP 11Junior Clerks

General Fitter

Artisan – Grade 11 & 111

Driver

Machine Operator

GROUP 111Cylinder Filler

Assistant Machine Operator

Driver’s Mate

Watchman

GROUP IVGeneral Labour

KEN Carbacid (CO2) Limited - 2013

Start date: → 2013-08-01
End date: → 2016-07-31
Name industry: → Manufacturing
Name industry: → Manufacture of chemicals and chemical products
Public/private sector: → In the private sector
Concluded by:
Name company: →  Carbacid (CO2) Limited
Names trade unions: →  COTU - Kenya Chemical and Allied Workers Union

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 36 %
Maximum days for paid sickness leave: → 80 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
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: → 
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
Adjustment for rising costs of living: → 0

Wage increase

Wage increase: → 8.0 %

Extra payment for annual leave

Extra payment for annual leave: → KES 7500.0

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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