COLLECTIVE BARGAINING AGREEMENT BETWEEN MOFED TANZANIA COMPANY LIMITED AND COMMUNICATION AND TRANSPORT WORKER’S UNION OF TANZANIA

1.0 PREAMBLE

1.1 Status quo:This Collective Agreement is made between Mofed Tanzania

Company Limited (hereinafter referred to as the “EMPLOYER” forming the first part to the Agreement and the Communication and Transport Workers’ Union [COTWU (T)] of Tanzania (hereinafter referred to as the Union), forming the second part of the Agreement.

1.2 Status quo:The agreement embraces. “Negotiations and Consultations” on

the rules and procedures through which negotiations and consultations shall be conducted, with respect to Salaries and Wages, other Terms and Conditions of Employment applicable to workers employed and confirmed by the Company except those on probation and daily paid workers.

1.3 Status quo:In this agreement however, where any word or clause

contravenes the provisions or requirements of any of the existing Labour Laws or Regulations or Orders of the Country or Offers relatively inferior treatment or terms to those provided for; then the laws or Regulations shall apply.

2.0.0PRODUCTIVITY PERFOMANCE AND EFFICCIENCY.

Status quo: It is agreed that after successful conclusions of these discussions, the Union shall assist the employer in:-

2.1Status quo:Ensuring that the proper plans to increases productivity

are implemented as drawn by the Employer.

2.2 Status quo:Preventing employees from indulging in acts which are

detrimental to productivity (e. g. waste of materials, theft, negligence lateness, absenteeism, insubordination etc.) and reporting such acts or any other threats against the company and/ or its properly and advising the management on how to handle such situations should they arise.

2.3 Status quo:Take necessary measures to prevent negligent and destruction

of company property.

3.0.0 CHANGES IN LABOUR LEGISLATION

3.1Status quo:In the event of any change, directive, new law, etc, the

Company and the Union shall meet as soon as possible to change, amend or remove that part of the Agreement which is in conflict with the respective Labour Legislations. It is agreed that such changes or amendments shall be to render the Agreement legally acceptable.

4.00 COMMUNICATION TO EMPLOYEES:

4.1Status quo:Management shall undertake to inform all employees of any policy changes affecting them as communicated to them by relevant authorities expect for privileged confidential and private information.

5.0 DEFINITIONS AND INTERPRETATION:

In this agreement, unless the context otherwise requires:-

5.1 “Employer/Company”

Status quo – Shall mean MOFED TANZANIA LIMITED.

5.2 “Union”

Status quo - Shall mean the COMMUNICATION AND TRANSPORT WORKERS UNION OF TANZANIA [COTWU (T)].

5.3 “Country”

Status quo - Shall mean the Sovereign State Geographically known as Tanzania Main Land.

5.4 “CEO”

Status quo - Shall mean the Chief Executive Officer of Mofed Tanzania Limited.

5.5 “Management”

Status quo – Shall mean Chief Executive Officer, CFO and COO as Management Head of Departments.

5.6 “Chairperson”

Status quo - Shall mean the Chairperson of the Communication and Transport Workers’ Union of Tanzania [COTWU (T)] or any other Officer or Officers duly authorized and delegated by him to act or carry out official functions on his behalf.

5.7 “Union Representative”

Status quo – Shall mean the General Secretary of the Communication and Transport Workers’ Union of Tanzania [COTWU (T)] or any other Officers or Officers duly authorized by him to act or carry out Union functions on his behalf.

5.8 “Employee”

Status quo – Shall mean any person or persons employed by Mofed Tanzania Limited under the permanent conditions only or as defined under the labour laws or Regulations of the Country

5.9 “Union Member”

Status quo – Shall mean any employee of the Company who is a member of the Union and as defined by the Law of the Country.

5.10 “Commissioner”

“Status quo” – Shall mean the Commissioner dealing with labour matters.

5.11 “Labour Court of Tanzania”

Status quo - Shall mean the Labour court of Tanzania. Labour Division established under labour act No. 7.

5.12 “Joint industrial council”

Status quo- Shall mean the Management/Union within Mofed Tanzania Limited through wich the Management and Union meet to negotiate for improvement of salaries and other terms of conditions of service.

5.13 “Salaries and Remunerations”

Status quo – Shall mean salary, wages rates, overtimes and any other allowance.

5.14 “Others Terms and Conditions of Service”

Status quo - Shall mean work rules and/ or regulations, hour and places of Work, leave packages, travel concessions, meals and other catering concessions, pensions and other related retirement emoluments that may be agreed upon between the parties from time to time and or Regulations or any other agreement reached by the parties through similar means.

5.15 “Grievance”

Status quo – Shall mean a complaint or complaints and/ or a feeling or feelings of dissatisfaction by either an employee (s) or employer, against any action or treatment or occurrence considered unfair by the party complaining.

5.16 “Labour Dispute”

Status quo – Shall mean any dispute or difference or disagreement Misunderstanding between an employee or employees on salaries or wages or other terms and conditions of employment or as defined under the laws of the country.

5.17 “Grievance Settlement Procedures”

Status quo –Shall mean any procedures and or procedures laid down by the parties to cater for the settlement of grievance or settlement of disputes and as define under the provisions of the Laws of the Country

5.18 “Strike”

Status quo – Shall mean cessation of work performance by a body or group of persons employed to carry out that function, acting in combination or consented refusal or a refusal under a common understanding of any number of persons employed or a concerted interruption of work performance compelling their employer or any person on body of persons employing them to accept or not to accept terms or conditions affecting employment or as defined by the law of the land.

5.19 “Lock Out”

Status quo – Shall mean the right of an employer to lock out an employee or employees in respect of a dispute of interest as defined by Law of the Land.

5.20 “Appendix”

Status quo – Shall mean an attachment or addendum to this Agreement and shall be read as part of the Collective Agreement.

5.21 “Gender”

Status quo – Gender Shall include or apply to both male female and genders, unless specifically applied

5.22“Retrechment”

Status quo – Shall mean reduction of manpower, arising from compulsory re-organization of employees established to strengthen department, or a section or unit of operations, owing to economic circumstance beyond the control of the employer and as defined under relevant articles of the Labour Laws.

4.23 “Dependant”

Status quo – Shall mean spouse and any four (4) children of an employee (whether biological or legally adopted) under 18 and in formal and continuous school.

5.24“Repatriation Allowance”

Status quo – Shall mean transportation costs of an employee, his immediate family members and his personal affects up to the place of domicile.

5.25 “Place Of Domicile”

Status quo – Shall mean place of birth of an employee or any other place Permanent dwelling place.

5.26 “Acting Allowance”

Status quo – Shall mean an allowance paid to an employee who is appointed to act in a higher position.

5.27 “Acting Appointment”

Status quo – Shall mean an approved appointment of a serving employee to a higher position with a view to confirmation, for which acting allowance is payable.

5.28 “ACT”

Status quo - Shall mean the Employment and Labour Relations ACT No. 6 of 2004

5.29 “Sick Leave”

Status quo – Shall mean an approved absence from duty caused by illness of an employee as recommended by a recognized medical practitioner.

5.30 “Medical Examination”

Status quo – Shall mean an examination of an employee of the company carried out by recognized medical practitioner.

6.0.0 RECRUITMENT/APPOINTMENT AND METHOD.

6.2Status quo - In order to avoid discontent by either party any time during

or after a contract, each contract of service shall, as far as possible specify the salary and wages and other terms and conditions attached to the post and that, all this information shall be briefly made in writing.

6.3.0 Generally, there shall be two (2) types of contract of service as spelt out hereunder:-

6.3.1 Special contract of Service”

Status quo -Whereby appointment or engagement period shall be specified, with a provision for renewal (if any). This type of contract shall have no regard to any age limit, provided always that the person taking up the employment is not below the age required by the law of the Country. However this group is not entitled to collective bargaining benefit.

6.3.2Permanent and Pensionable Contract of service”

6.3.3 Status quo - In all case any person employed by the company shall be provided with a job description.

7.0 EMPLOYEE/EMPLOYER OBLIGATIONS.

7.1 Status quo - For the purpose of good employee/employer relations and the fulfillment of legal requirement, both parties are expected to adhere strictly to their obligation.

7.2 Status quo - The main obligation by either party in relation to paragraph 7.1 above are total adherence to:-

7.2.1 Status quo - The requirement and/or provision of the Labour Laws or Rules or Regulations of the Country.

7.2.2 Status quo - The requirement and/or provision of the Collective Agreement and any other matters mutually agreed between the parties.

7.2.3 Status quo - The requirement of any Company written rules or the Labour Laws or regulations known to the union.

8.0 WORKING HOURS

8.1 The company shall observe the following:-

•Status quo – Now employee to work more than twelve (12) hours in any day even under agreement.

8.2 Status quo - Work shall commence at 8.00 hours to 17.00 hours and lunch break shall be between 12:30hours to 13:30hours. However, on Saturday work shall commence at 08:00 hours and close at 14:00 hours.

8.3 Status quo -If an employee works on a public holiday specified in the Public Holidays Ordinance, the employer shall pay the employee double the employee’s basic wage for each hour worked on that day.

9.0 STAFF SERVICE REGULATIONS

9.1 Status quo - There shall be written rules which stipulate almost all what is required of an employee as Guidance which forms part of this agreement. The regulations shall be prepared by the management and agreed by the union. The rules set out in Appendix 1 shall form part of this collective agreement.

10.0 EMPLOYMENT REMUNERATION

11.0 OVERTIME PAYMENT

11.1 Status quo - This is compensation to workers for work done beyond normal working hours serve for heads of departments and shall be paid as follows:-

11.1.1 Ordinary Overtime

Status quo - No more than 3 overtime hours in any given day (normal is 9 working day hours).

11.1.2 Double Overtime

12.0.0 REMUNERATION

13.0 ALLOWANCES

13.1 Acting allowance

Status quo - Where an employee is required to temporarily perform a job in

A more senior or higher position for a minimum of one (1) months which increases the employee’s workload, the employee will be communicated to in writing by Management. And, by virtue of the new duties, the employee shall be paid an acting allowance which is the difference between the basic wage of the senior grade and the acting employee’s grade.

13.2 Limit of Acting

Status quo – The employee should be allowed to act in one post for a period of not more than three months consecutively; otherwise he/she should be promoted to the post, or reverted to his/her substantive post.

13.4 Responsibility Allowance

Status quo – Employees, who are not entitled to overtime payments, shall be entitled to responsibility allowance which will be determined by Management.

13.5 Travel on Company business

13.5.1 Definition

Status quo – Where an Employee undertakes a business trip to a location outside Dar es Salaam and /or abroad, the employee will be regarded as being on an official visit.

13.5.2 Choice of route

Status quo – Unless there is a good reason to do otherwise, a trip must always be made by the shortest route: by air, road or rail as the case may be.

Fares shall be paid for employees as follows:-

•Air Travel

Status quo – All employees will travel by economy class when on an approved company business.

•Rail Travel

Status quo – Second class will apply

•Road Travel

Status quo – Shall be paid fare to and from the Dar es Salaam by economic means of transport, or use of a pool utility vehicle, which ever may be suitable or the next best available alternative.

13.5.3 SUBSISTENCE ALLOWANCE FOR LOCAL BUSINESS TRAVEL

•An employee traveling locally on approved company business, and the employee opts not to take meals from the hotel where the employee is accommodated, the employee is entitled to claim the following:-

CategoryIn the Country TSHS

-Breakfast 5,000/= per day

-Lunch 10,000/= per day

-dinner10,000/=per day

•A local subsistence allowance equivalent to TZS 80,000/=per day will be paid to an employee where it involves an overnight stay away from Dar es Salaam.

•No subsistence allowance shall be paid in respect of absence from Dar es Salaam not involving an overnight stay, except meal allowances as (a) above.

13.5.4 SUBSISTENCE ALLOWANCE ON FOREIGN BUSINESS TRAVEL

Status quo - Other considerations may be given when traveling to a region where cost of living is known to be very high and accommodation may cost more than the regular subsistence allowance.

Status quo - Payment of airfares, visa costs, affiliation fees, airport departure tax and transportation will be met by the company.

Status quo - No excess baggage costs will be met by the company

Status quo -If a business trip is concluded in a day, reasonable actual expenses may be claimed.

14.0 HOUSEING ALLOWANCE

All employees who are not entitled to company houses shall be paid Housing Allowance equivalent to 50 % of their monthly basic wage.

15.0 CANTEEN

16.0 YEAR END BONUS

17.0 TERMINATION OF SERVICE

15.1 Status quo - Termination of service shall mean discontinuation of service of an employee by the employer.

17.0 NOTICE

17.1 Status quo - The employer shall write a letter for the action stating elaborately the reasons for termination of service with a copy to the Union Field Branch Committee provided the employee is a unionized member.

17.2 Status quo - The employee shall give 30 days notice or payment of one month’s basic salary in lieu of the notice.

18.0 TERMINAL BENEFITS ON TERMINATION OF EMPLOYMENT BY EMPLOYER OTHER THAN TERMINATION FOR DISCIPLINARY ACTION

19.0 RETRENCHMENT PROCEDURE

19.1Status quo - Both parties agree to do their level best to make sure this does not happen.

19.2 Status quo – This shall mean the discontinuation of employee’s service through reduction of company labour force after necessity to do so has been established as mutually agreed.

19.3 Status quo – The Management must do the following before this exercise takes place.

• Explain clearly in writing to the union two months (2) before implementation of the intended exercise.

• Spell out the number of employees to be affected.

20.0 RETRENCHMENT

20.1 Both parties agree to the criteria which shall be followed:-

•First in Last out (FILO) method

•Voluntary redundancy/departure

•Weaker performer and unqualified employees

•The Management shall prepare the list and consult the Union branch Committee before implementation of the exercise.

21.0 RETRENCHMENT TERMINAL BENEFITS

21.1The company shall pay the following:

21.2Status quo - Give one month notice to the employee or payment of one months salary in lieu thereof

21.3 Status quo - Pay one (1) months gross salary for completed year service as compensation for unexpected loss of employment up to the maximum of 10 years.

21.4 Status quo - Transport of the employee and his personal effects to the place of domicile.

21.5 Status quo – Severance pay as per Employment and Labour Relations Act 2004; section 42.

22.0 FUNERAL ASSISTANCE

23.0 COMPULSORY RETIREMENT

23.1Compulsory retirement age for all permanent employees shall be 55 years and either party shall give three (3) months notice of intention to retire.

23.2 RETIREMENT PACKAGE

23.2.1Status quo – One month salary in lieu of notice

23.2.2 Status quo – Leave days due.

23.2.3 Status quo – Transport of the employee and his personal effects to the place of domicile or shs 3,000,000/= repatriation allowance which ever is greater

23.2.4 Status quo – Severance pay.

23.2.5 Paid a “golden handshake” of two and a half months basic salary for each completed year of service

23.2.6 A retiring employee shall also be awarded.

•5 tones of cement

•50 three meters, twenty eight gauge iron sheets

•Other building materials worth 2,000,000/= or cash equivalent.

24.0 EARLY RETIREMENT

24.1 Status quo – Provided an employee has served the company for at least 10 years, or is 50 years of age, the employee may be entitled to apply for early retirement.

24.2 Status quo – The employee shall give three (3) months notice to the Employer

24.3 Status quo – Shall be paid salary and leave days accrued to the day of retirement with two months salaries as travel allowance for him with his family.

24.4 Status quo – The company shall render assistance for settlement of Social Security fund (NSSF) and other pension scheme’s benefits.

254.5 Transport to the place of Domicile.

25.6 Shall be paid a “golden handshake” of two months basic salary for each completed year of service.

25.7 Severance pay of twenty days salary for each year of Service.

26.0 TERMINATION OF SERVICE ON MEDICAL GROUNDS

26.1 Status quo -This is discontinuation of service as a result of ill-health, physical or mental incapacitation

26.2 Status quo – Termination shall be as per the provisions of the Labour Act.

26.3 Status quo – Other benefits as stated in clause 18 above

27.0 SICK LEAVE

28.0 LEAVE

28.1 Status quo – Leave Accrual

28.1.2 Status quo – Employees who have served the employer less than six (6) months are not entitled to annual leave.

28.1.3 Status quo – Annual leave shall not accumulate for more than 2 years, unless requested by the employee and agreed by the employer.

28.1.4 Status quo – Any employee who proceeds on leave shall be paid his salary in advance if the pay day falls during the leave period.

28.154 Status quo – If an employee wishes to go on leave he shall make an application on the prescribed form.

28.2 Leave Travel

28.3 Maternity/Paternity Leave

28.3.4 Normal annual leave of the employee shall not be Forfeited.

An employee shall be entitled to 10 working days leave which is not deducted from annual leave. Compassionate leave shall be granted upon death of spouse, father/mother, direct brother/sister and direct dependant.

29.0 MEDICAL SERVICE

30.0 HIV/AIDS

31.0 ACCIDENTS, COMPENSATION AND DEATH BENEFITS

32.0 LOANS AND ADVANCES

32.1 Status quo – The Company may provide loans to permanent employees after considering the financial position of the company and the ability of the employee to repay the loan amount.

32.2 Type of loans that may be accessed:

•Status quo – Motor vehiclerepayment period: 3 years

•Status quo – School fees/Study loanrepayment period: 2 years

•Status quo – Furniture loanrepayment period: 2 years

•Status quo – house loan repayment period: 3 years

32.3 Status quo – The company shall introduce an employee who wishes to get loans from lending Banks and other financial institutions.

33.0 PROTECTIVE CLOTHING/UNIFORMS

34.0 LONG SERVICE AWARD

35.0 BEST WORKERS AWARDS.

35.2.1 Status quo – There shall be a system of selecting and awarding the workers annually as follows:-

•Overall best worker 3 months salaries

•Department best worker one months salary.

•

35.2.2Status quo – The Union shall determine the departmental best workers. The names of the selected four (4) best workers will be given to management, who shall select the overall best workers

35.2.3 Status quo – The overall best workers shall receive cash award which will be paid during the May Day Celebrations.

36.0 STAFF TRAINING/DEVELOPMENT AND JOB APROPRIATION/SUCCESSION

37.0 CERTIFICATES OF SERVICE AND RECORD REQUIRED

37.1Status quo – On termination of service (section 24 above) an employees shall be issued with a certificate of service stating:-

37.1.1 Status quo – Name of Employer

37.1.2 Status quo – Name of Employee

37.1.3 Status quo – Date of Engagement

37.1.4 Status quo – Nature of employment (position held)

37.1.5 Status quo – Salary and grade on termination

37.1.6 Status quo – Date of termination, and reason for termination

38.0 TERMINAL BENEFIT RESERVE

Status quo – The Company shall reserve adequate funds in a special account each year to be used for paying terminal benefits of retrenched, retired and terminated employees.

39.0 ARBITRATION PROCEDURE

39.1 Status quo – Where a party to this agreement is not in agreement with an action by the other party on matters of Industrial Relations of the Company, or where either party feels that the other is acting contrary to provisions of this Agreement, the party so dissatisfied shall seek the assistance of the Commission for Medication and Arbitration (CMA) to arbitrate in the Labour dispute.

39.2Status quo – However, before a party takes the action discussed under the preceding paragraph, it shall give not be less than 21 days written notice to the other party and shall give a brief explanation of the grounds of discontent.

40.0 AMENDMENT AND PROCEDURE

40.1 Status quo – Any clause and or provision within this agreement may be amended or modified at the request of either party, provided always that the party so seeking amendment shall give written notice of not less than 3 months to the other part of the intention to do so and that such amendment shall be mutually discussed and agreed by the parties.

41.0 CONFIDENTIALITY

41.1 Status quo – All information, however communicated or recorded and whatever form it takes, provided by both parties in connection with this Agreement shall be for the others exclusive use and many not be divulged by either party to any natural or legal person (save as may be required under this Agreement), in which case either party shall ensure that such person undertakes to be bound by the terms similar to this clause, such action shall not be taken without the prior written consent of the other, which consent shall not be unreasonably withheld.

41.2 Status quo – The restriction referred to in 41.1 shall not apply to information, which is now, or hereafter enters the public domain other than as a result of breach by one party of its obligations in terms of clause 40.

42.0 EFFECTIVE DATE, DURATION

42.1 This Agreement comes into force on …………..day of …………..…...and shall run for 2 years ………………………….………………….

42.2Status quo - Not withstanding paragraph 42.1 above, this Agreement shall remain in force until it is replaced by another.

42.3 Status quo – Parties undertake to effect negotiations on a new Agreement 3 months before expiry of this Agreement.

42.4 The Parties hereto have set their hands in Dar es Salaam on this ………………………………………………….. In the presence of subscribing witnesses:

For and on behalf of

MOFED TANZANIA LIMITED

NAME ……………………………………………………..…..

SIGN ……………………………………………………..

POSITION……………………………………………………..

Date ……………………………………………………..

NAME ……………………………………………………..…..

SIGN ……………………………………………………..

POSITION……………………………………………………..

Date ……………………………………………………..

For and on behalf of

COMMUNICATION ANDTRANSPORT WORKERS UNION OF TANZANIA “ COTWU (T)”

NAME ……………………………………………………..

SIGN ……………………………………………………..

POSITION……………………………………………………..

Date ……………………………………………………..

NAME ……………………………………………………..…..

SIGN ……………………………………………………..

POSITION……………………………………………………..

Date ……………………………………………………..

SIGN ……………………………………………………..

POSITION……………………………………………………..

Date ……………………………………………………..