VOLUNTARY AGREEMENT NO.05 OF 2015/2017 BETWEEN KAGERA SUGAR LIMITED AND TANZANIA PLANTATION AND AGRICULTURAL WORKERS UNION (TPAWU)

KAGERA SUGAR LIMITED

1. PREAMBLE

We, Kagera Sugar Limited, of Missenyi district, hereby referred to as the “EMPLOYER" on one part, and the Tanzania Plantation and Agricultural Workers Union hereby referred to as “TPAWU" on the other part, do hereby confirm in writing that we have voluntarily agreed to enter into this agreement that sets out the conditions of employment of KSL employees including remuneration of wages, fringe benefits, scheme of service, health and safety etc. We hereunder agree that both Parties will benefit if they join hands in safeguarding the sustainable development of the Company and its employees. On this basis therefore the two parties agree that benefits such as wages and other incentives as stipulated in this agreement should be linked to productivity and the financial capacity of the Company.

It is also agreed that TPAWU and management shall commit to encouraging all workers to meet production targets so that the company can have the capacity to meet the various costs agreed to in this and future agreements. Both parties also agree that company property and the environment shall be cared for by all employees and that damage to or theft of company property is not acceptable under any circumstances.

2. ACKNOWLEDGEMENT / RECOGNITION

(a) The Employer recognizes and respects TPAWU as the sole voice and negotiator of the statutory rights of all workers employed by Kagera Sugar Limited on all matters related to conditions of employment, scheme of service and other remunerations.

(b) TPAWU on the other hand recognizes and respects Kagera Sugar Limited as the sole Employer of all workers of the Company concerned with this Voluntary Agreement.

3. SCOPE OF THIS AGREEMENT

This agreement is applicable to all permanent and seasonal employees who are members of TPAWU and all those employees who pay TPAWU service fees in accordance with clause 3:4:1 of the 2013 TPAWU constitution except:

(a) Members of the senior management who are in grade KSL 10 and above.

(b) Employees with special overseas contracts and non-Tanzanian citizens.

4. TPAWU MEMBERSHIP

Any employee of Kagera Sugar Limited (permanent and seasonal) and all newly recruited employees are free to be members of TPAWU as soon as he/she joins the Company on permanent or seasonal terms. It is in the interest of both parties to have capable; enlightened and strong TPAWU leader ship. It is in this regard therefore agreed that as long as an employee joins and pays TPAWU fee, he is eligible to contest any TPAWU leadership post irrespective of his cadre in KSL grade".

The Employer shall deduct entrance fee from new TPAWU members and monthly subscription fees of 2% on the basic wages from all members of TPAWU of Kagera Sugar Limited and 90% of which will be remitted to TPAWU headquarters in accordance with applicable legislation or as advised by TPAWU headquarters from time to time. The balance of 10% will be for the use of Kagera TPAWU branch. TPAWU to submit forms of acceptance from the new members Finance dept.

6. PROBATION PERIOD

7. WAGES AND SALARIES:

8. WORKING HOURS

9. OVERTIME PAYMENT

10. TASK DEFINITIONS:

(a) Cane Cutters

Task shall depend on average density of cane in that particular field. Harvesting supervisor shall allot the task on daily basis.

- A person should be required to cut cane not less than 5 (five) Mt per day. The task is area based and will be determined on stand of cane.

- All measurements will be done using ropes

- Cut cane shall be piled in heaps to facilitate easy loading as per department’s directives.

(b) Weeders

- Two inter-rows or 600m

- More than two inter-rows or 600 m where average weed density is not high

(c) Sugar Cane Planting

- Open Furrows

- Placing seed cane stalks in two rows or 600m, cutting the stalks into three knots and covering the seed-cane with soil.

(d) Fertilizer Application.

- Apply mineral fertilizer to an area of one hectare per person per day including loading and off-loading the day's fertilizer load.

(e) Herbicides Application.

- Uniform application of herbicide to an area of 1 hectare including mixing the herbicides and filling it in knapsack sprayers.

- Employer should make herbicides applicators aware that herbicides could be poisonous.

11. SAFETY MEASURES

12. MANAGEMENT AUTHORITY AND RESPONSIBILITY

(a)The Employer will have the authority and responsibility of planning, assigning and supervising duties with the objective of increasing productivity and profitability

(b)The employer will formulate Company policies and procedures, Organization structure, scheme of service and staff regulations.

(c)Employees should abide by regulations and procedures set by employer from time to time

13. EDUCATION AND WORK EFFICIENCY

(b) Work Efficiency

In order to raise the level of productivity at place of work, the Employer shall:

(i) Ensure that workers use working tools carefully to avoid unnecessary breakdowns.

(ii) Ensure that proper utilization of safety gears at places of work and institute disciplinary measures in accordance with labor laws in force in case of default.

(iii) Ensure proper utilization of working hours

(iv)Ensure that health and safety conditions prevail at work places.

(c) Housing

Depending on availability and entitlement, the housing committee shall discuss and allocate accommodation to the employees. It has been agreed that construction of new housing facilities shall be considered on phases.

14. OFFICIAL SPOKESPERSON:

General Manager shall be the chief spokesman of the Company. Nobody else will be allowed to give out Company information to the mass media on behalf of the Company or any other person on behalf of the Company.

15. INCENTIVES AND WORKERS PARTICIPATION

(a) The employer in collaboration with TPAWU will nominate best workers in each department every year that will be presented with best workers’ certificate. The employer will award each of the nominated best workers an amount of Tshs 250,000/- (Tshs Two hundred fifty thousand only).

(b) An Employee nominated as an overall best worker of the Company and first and second Runner up will be presented their award by the Guest of Honor at the Regional May Day Celebrations and award an amount of Tshs.700,000/-(Tshs seven hundred thousand

only) and 500,000/-(Tshs five hundred thousand only) respectively and certificate of recogination.

(c) The employer shall make available a board of honor for records on which names and photographs of all best workers will be publicly displayed in their honor each year.

(d) Employer will call for a meeting with KSL TPAWU Branch (Executive committee) once in three months for a discussion if need is felt.

(e) Employer in collaboration with TPAWU will play an advisor role in educating employees on the importance as well as successful operation of SACCOS. Employees will contribute on monthly basis from their wages to the fund and extend loan facilities to their members.

(f) Both parties have agreed to implement certain incentives and details of the same are given in the annexure-ll.

16. SOCIAL SECURITY FUNDS:

17. MEDICAL EXAMINATION AND MEDICAL TREATMENT:

(a) Referrals:

Whenever Company’s medical Officer refers a patient to outside medical treatment, the Patient will be given a fare to and from the prescribed destination. A fixed amount not exceeding Tshs 30,000/- (Tshs thirty thousand only) will be paid to assist the escortee / caretaker if there is a need to send with the patient.

16. ANNUAL LEAVE

17. COMPASSIONATE LEAVE

18. MATERNITY AND PATERNITY LEAVE

(d) Female employee residing far away from their work places will be released one and half hour before the official closing lime for a period of 18 months.

19. SICK LEAVE

20. WORKERS UNIFORMS

(a) An employee will put on uniforms and use protective devices as directed by the Employer. He/ She will also be responsible for keeping the uniforms clean and in good condition

(b) Uniforms will remain the property of the Employers who reserve the right not to issue new ones unless on presentation of old ones.

(c) Employer shall have the responsibility of ensuring the availability in time and proper use of Personal Protective Equipment (PPE). Used uniforms shall not be provided to employees covered by this agreement.

21. TERMINATION OF EMPLOYMENT AND JOB DESCRIPTION

(i ) Kagera Sugar Ltd will comply with ILO regulations with regard to child labor particularly conventions 138 & 182.

(ii ) The employer shall not terminate the services of an employee unless there are good reasons to do so and comply with Labor laws.

(iii) The following shall not be reasons for terminating the services of an employee:

(a) Being a member of TPAWU and carrying TPAWU activities outside working hours and during working hours with the permission of the Employer.

(b) Contesting any position in the trade union or being Chairman, Secretary or member of the TPAWU branch committee.

(c) Complaining against or participating fully in giving evidence against the Employer or Employer’s representative in a case involving the breaking of laws

(d) An employee's tribe, race, color, religion, gender, political ideology and personal activities provided that they do not affect work efficiency.

22. WORKERS RETRENCHMENT / REDUNDANCY

If the employer experiences financial constraints, and a need is felt to restructure the organization to improve the productivity and efficiencies to meet business challenges, it is necessary to implement the process of retrenchment of workers. Both parties have agreed to observe the following.

(a) The Employer win give sufficient reasons to TPAWU branch at the earliest regarding his intention to retrench by stating the number of workers to be retrenched in a phased manner during this period of agreement Criteria for selecting employees for retrenchment will be:

- Excess manpower

- Change in Technology

- Physical fitness

- Productivity /Performance

- Approach towards work and co-workers

(b) Employer will pay retrenched employees an amount of 60% of basic month salary (last drawn) for every completed year of service from the date of permanent employment with Kagera Sugar Limited after privatization and 125 kgs of sugar.

(c) Fare to his/her home town will be paid for employee, spouse and up to 4 children (legal) provided children are under the age of 18 years or up to a maximum of 25 years in case the children are attending formal education

(d) Fare for luggage to hometown will be paid as under;

KSL 1 - 9: Tshs 1,000 per KM (minimum payment will be Tshs 250,000/-)

23. RETIREMENT

(a) An employee will go on compulsory retirement at the age of 55 years

(b) Subject to prior approval of the Employer, an employee may decide to go on a voluntary retirement at the age between 50 and 54 years

(c) An employee intending to retire before attaining the age of voluntary retirement (50 years) shall give a written three months’ notice of his/her intention to retire. If Management approves his/her request, he/she will be entitled to half of the retirement benefits.

(d) The two parties have agreed that an employee going on compulsory or voluntary retirement will be entitled to the following benefits depending on the number of years he has served the Company after privatization on permanent basis.

(i) An employee will be given 68% of one month basic salary for each completed year of service with Kagera Sugar Limited and 125 kg of sugar.

(ii) An employee who will retire on medical grounds will be entitled to 62% of one month basic salary for each completed year of service with Kagera Sugar Ltd and 100 kgs of sugar.

(iii) Fare to his/her home town will be paid for employee, spouse and up to 4 children (legal) provided children are under the age of 18 years or up to a maximum of 25 years in case the children are attending formal education.

(iv) Fare for luggage to hometown will be paid as under:

KSL 1 - 9: Tshs 1,000 per KM (minimum payment will be Tshs 250,000/-)

(v) All the payment shall be done within three months (90 days) from the date of expiry of notice period.

(vi) If the employer fails to pay the company’s retirement benefits within the stipulated time, he will be responsible to pay % of the last month's basic salary as subsistence allowance until the employer Finalizes his benefits.

(vii)The employee will continue to enjoy normal medical treatment and stay in his/her Company's house until benefits is fully paid.

(a) The two parties have agreed that at any time if an employee of the Company passes away whether within the employers’ premises or outside the Employer’s premises or while on annual leave and provided that the employee has been in service of the Employer for more than one year, then the employer will bear the cost for the coffin, and pay Tshs 600,000/- (Tshs six hundred thousand only) in case of normal death and Tshs 850,000/- (Tshs eight hundred fifty thousand only) in case of fatal accident while on duty as condolence or bereavement grants to the bereaved family.

In case of the death of a seasonal employee, the employer will meet the cost of coffin, and pay 50% of the above benefits, i.e. Tshs 300,000/- (Tshs Three hundred thousand only) in case of normal death and 425,000/- (Tshs four hundred twenty five thousand only) in case of fatal accident while on duty as condolence or bereavement grant to the bereaved family.

The employer shall give 100kg of sugar to the bereaved family in the case of death of a permanent employee, and 50 kg of sugar in the case of death of a seasonal employee

(b) The Employer shall pay Tshs 350,000/- (Tshs three hundred fifty thousand only) as condolence to a permanent employee on the death of his/her spouse, father, mother and children (legal).

The employer shall give 75 kg of sugar to the bereaved family

The Employer shall pay Tshs. 175, 000/-(Tshs One hundred seventy five thousand only) as condolence to a seasonal employee and 25 kgs of sugar on the death of his/her spouse, father, mother and children (legal) provided that the said seasonal employee has been in the service of the employer continuously for a period of not less than 10 months.

(c) The employer will pay 35% of a month's salary for each completed year of service of a deceased permanent employee to the bereaved family

27. MAAFA OR BEREAVEMENT FUND

28. SPORTS & GAMES DEVELOPMENT

(a). There shall be various sports and games like football, netball, cultural dancing troups etc for entertaining workers that will be promoted by the Employer.

(b). The employer will involve KSL TPAWU in organizing sports and games which are meant for workers.

29. TRAVELLING SERVICES.

a) The employer will meet cost of transport and related expenses for an employee on official duty or performing duties for the interest of the employer.

b) Employees on official duty outside Kagera Sugar Ltd will not be entitled to overtime payment. Instead, the employer will pay out of station allowance (night allowance) for work related trips as indicated in the following table:

KAMPALA TRIP:

30. LABOUR DISPUTES

All labor disputes between Employer and Employee, which can be resolved under the labor Law of No. 6 of 2004 and 2007 amended accordingly.

However, other disputes and differences that do not fall under the labor law No. 6 of 2004 and 2007 amended will first be deliberated between employer and employee and TPAWU branch with the objective of reaching a consensus.

If no consensus is reached, the dispute will be referred to higher authorities and if still no consensus is reached at this level, the handling of the dispute will follow the procedures as laid down in the labor law of no.6 of 2004 and 2007 amended.

For the purposes of resolving labor disputes which may occur at work places both parties have agreed that TPAWU branch will serve as the link between the employer and workers.

31. SEASONAL EMPLOYEES

By acknowledging that cane cutters and other workers are recruited on seasonal basis during the harvest for a period of 3 and 10 months every year, the two parties have agreed to recognize that these employees form a vital group of the workforce of the company and that they are also TPAWU members. Their conditions of employment will therefore be as follows:

(a) In collaboration with TPAWU, the employer will arrange an induction program for these employees at work places, residential places, dangerous areas, safety precautions and recreational centers.

(b) A cane cutter will be provided with a suitable accommodation.

(c) Uniforms and working tools will be issued to a cane cutter depending on the nature of the work and the tools will remain the property of the employer.

(d) Where the employee is required to have an identity card, the employer will meet the cost for acquiring it for the first time.

(e) Seasonal employees will be entitled to 7 days leave for every three months of service which will be paid at the end of the contract in cash in lieu of leave. But those who terminate their contracts before the end of the season will forfeit any leave due.

(f) The minimum wage for cane cutter will be equal to the one approved by the employer, but will not be below the statutory minimum wage announced by the Government from time to time.

32. DATE OF COMMENCEMENT AND DURATION OF THE AGREEMENT

(a)The two parties have agreed that the effective date of commencement of this agreement will be from 01.10.2015 and that it will remain in force for a period of 24 months i.e. up to 30.09.2017.

(b) Nevertheless, this agreement may be amended by either party provided that the party wishing to do so gives the other party a one-month notice regarding his intention to do so.

(c)This Voluntary Agreement shall remain in force all the time until a new one is signed by both parties.

32. LABOUR LAWS

The two parties have agreed that there is no clause in this Voluntary Agreement intended to contravene any labor Law of No. 6 of 2004 and 2007 amended applicable either to the employer or employee. Wherever any clause in this agreement is in dispute with any labor legislation, then such clause shall stand to be replaced and hence amend the Agreement to read consistent with the law.

IN WITNESS WHEREOF the parties in this Voluntary Agreement have endorsed the Agreement with their seals and signatures on the date and in the year and in the manner hereafter.

Date: 15.12.2015

For and on behalf of: KAGERA SUGAR LIMITED 

Human Resource Department

Chief Executive Officer.

For and on behalf of: TPAWU

SECREATARY TPAWU FIELD BRANCH (KSL)

CHAIRMAN TPAWU FIELD BRANCH (KSL)