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COLLECTIVE BARGAINING AGREEMENT BETWEEN SCANIA TANZANIA LIMITED AND TANZANIA UNION OF INDUSTRIAL AND COMMERCIAL WORKERS (TUICO)

Collective Bargaining between Scania Tanzania and TUICO of 2012, 22nd March 2012

1. AGREEMENT

We, the Tanzania Union of Industrial and Commercial Workers called “TUICO” and Scania Tanzania Limited hereinafter called “the Employer” do hereby recognise and subscribe our joint signatures on this Collective Bargaining Agreement regarding working terms and conditions in accordance with the relevant National Policy.

Both parties agree to actively enable this agreement to be in force.

This agreement supersedes all previous agreements, written or oral, concerning everything covered by this Collective Bargaining Agreement.

It is hereby agreed that the agreement shall be in English language and that a Kiswahili translation shall be annexed to the agreement. In case of conflict the English version shall prevail.

2. RECOGNITION

The Employer agrees and recognizes TUICO to be the sole and exclusive bargaining Agent for all TUICO members employed by the company concerning their working terms and conditions.

3. APPLICATION

3.1.This Agreement applies to all TUICO members employed by The Employer except those in Managerial positions namely:

(i)Managing Director

(ii)Acting Managing Director

(iii)Departmental/Section Managers

For the avoidance of doubt a Senior Managerial position is one that includes the right to hire, promote, suspend or discharge employees; to direct the work of employees and to establish operating policies.

3.2.This Agreement is applicable only in the United Republic of Tanzania.

4.VALIDITY OF THE AGREEMENT

4.1

Both parties agree that this Agreement shall come into force on the 1st of April 2012 and shall remain valid for four (4) years up to the 31st March of 2016. During first year any party wishing to have any clauses of this Agreement revised shall have to follow the procedure laid down under the provisions of The Employment and Labour Relations Act, 2004 [act No 6/2004], Furthermore, upon expiry of this Agreement and in the event of absence of a substitute new Agreement the expired Agreement shall remain in force until replaced by a new one within six months of its expiry. If no such agreement is reached within the said six months, the default terms shall be those specified under the existing labour laws of the country.

4.2

Either party wishing to terminate the agreement shall give the other party 3 month notice of termination of the agreement.

4.3

The parties also agree that in the event of any problems in the application of this agreement during the said life time of 48 months, both parties shall meet to review and rectify the situation amicably. Any such review shall take into account the laws applicable to employment in Tanzania.

5. APPOINTMENT

Any newly employed employee shall be subjected to a probationary period of three (3) months and may be confirmed upon the completion of the said period upon manifested satisfactory performance and proven capability. The Employer reserves the right to extend the probationary period for a further term not exceeding twelve months depending on the nature of engagement.

Following the probation period an employee may be offered an employment contract in accordance with the Employment and Labour Relations Act of 2004.

6. TERMINATION/RESIGNATION

This Clause applies to permanently employed employees other than employees with fixed contracts whose terms and conditions shall be stated in the respective contract.

6.1

.Subject to clause 5 above during the probationary period any party may issue a 30 day notice of intention to resign or terminate the contract or pay the corresponding wage in lieu of the said notice as the case may be.

6.2

.The period of notice and the rates of wage payable upon resignation will be as per Tanzania Labor Law notice period: one (1) month.

6.3.

Termination should follow the procedures laid down under the law.

Any employee should not be terminated for the following reasons:

i.To be a TUICO member or member of any party which is in cooperation or affiliated with TUICO, or because of taking part in TUICO's activities after working hours or during working hours with permission from the employer.

ii. Airing grievances or giving evidence against the Employer.

6.4

The termination benefits shall be in line with the Employment and Labour Relations Act, 2004.

7. RETRENCHMENT & RE-FILLING OF VACANCY

This Clause is applicable to permanent employees only.

7.1

.Employee retrenchment may be done if the Employer gives notice and consults with TUICO in accordance with the relevant Labour laws. After an agreement is reached, the employer shall have the right to act on the retrenchment plans unless there is any disagreement and then reference can be made to the Commission for Mediation and Arbitration (CMA).

7.2.

If Employee retrenchment is agreed then the following criteria may be taken into account to select retrenches where all other factors are equal:

i.Work requirements

ii.Work performance, skills and discipline at work

The retrenched employee shall be given priority of re-employment in case a suitable vacancy arises.

8. WORKING HOURS

Normal working hours may not exceed 40 hours per week.

9. EMPLOYEE SALARIES

9.1.

Both parties have agreed that the employer shall review employee salaries and allowances every year for the purpose of adjusting them according to various factors including performance of the individual.

9.2

.Any minimum salary level will be equal to or exceed what is set down in Tanzania Labour Law

10. MEALS

It is hereby agreed, in principle that The Employer shall provide a subsidized lunch for employees to be taken at the work place from Mondays to Fridays.

11. TRAVELLING ALLOWANCE

11.1

.For domestic travel the Employer undertakes to cover the cost of normal accommodation, meals and in addition, a per diem allowance, in accordance with applicable company guidelines.

11.2

.A cash advance taken for business travel shall be retired within 48 hours after returning to base. Failure to do so shall amount to misconduct, the Employer reserves the right to take necessary disciplinary action including but not limited to deduction of wages in such cases.

11.3

.For International business related travel all legitimate business related expenses and reasonable cost of living expenses will be covered by the Employer upon presentation of receipts.

12. ACTING ALLOWANCE

When an employee member is asked in writing by his employer to act in a job at a higher position, he/she shall be paid an allowance as agreed between employer and employee.

13. UNIFORMS

All relevant employees will be provided with working uniforms. The Employer will provide washing of workshop and warehouse employee uniforms. All relevant employees will be obliged to wear such uniforms at work. Uniforms are the employer's property and the Employer will have the right to demand their return if the employee changes job function or leaves the company.

14. MEMBERSHIP FEE

Parties have agreed that the employer, upon notification in writing, will deduct from consenting eligible employees, TUICO membership fee’s and submit the same to TUICO headquarters.

15. ANNUAL LEAVE

All employees are entitled to annual leave break of 28 days (20 working days) per full year of employment or on a pro rata basis; and all leave must be taken within 12 month of falling due. A leave allowance equivalent to one month’s salary shall be paid in the month of the annual leave being taken by the employee.

16. EMPLOYEE TRAINING

Wherever there is a training need, employees will be trained so as to promote efficiency and productivity at their respective workplace. The employer shall maintain suitable plans in order to implement and achieve that goal.

17. TRANSPORT

A transport allowance which is determined by the employer will be paid to eligible employees via their salary.

18. MEDICAL TREATMENT, SICK LEAVE AND DEATH

18.1.

Parties have agreed that all workers, their spouse and a total of four children up to the age of 18 years and/or for those above 18 and up to 21 years of age, provided they have proof of dependency required by the insurers, shall be provided with medical treatment as per the Employer’s medical insurance scheme. The Medical care facility extended under this section shall be provided at a Hospital or Dispensary approved by the employer or the employers approved medical scheme.

18.2. Sick leave

Where a permanent employee is unable to attend to his/her normal duties due to illness, she/he shall be entitled to a salary in accordance with Tanzania Labour Law or for a period of twelve months as follows:

(i)First six monthsFull salary

(ii)Second six monthsHalf salary

Payment of salary during the period of illness shall only be authorised if the concerned employee produces a medical certificate duly signed by an approved Medical Officer.

On the expiry of the period of twelve (12) months, The Employer shall be at liberty to continue with or discontinue the employment contract on Medical grounds and pay termination benefits as required under the Tanzanian Labour Law.

Should written Medical certification subsequently be produced to the effect that the employee has fully recovered from her/his illness the Employer may re-employ the worker subject to availability of vacancy.

18.3. Maternity leave shall be as per Tanzanian labour law.

When an employee gives birth, the employee will be entitled to leave of 84 days and 100 days in cases of multiple births. At all times Scania Tanzania Limited will comply with the relevant Tanzania labour laws.

18.4. Death

a)Both parties agree that if an employee dies in service and the relatives wish to transport the body to the deceased’s village for burial, the company shall provide transport and shall contribute TZS 800,000/= to the family.

b)Should the Management decide to send an official delegation to the burial ceremony, this will be done in consultation with TUICO branch.

c)If an employee’s spouse or own child under the age of 18 dies or their biological parent, the employer shall contribute TZS 400,000/= to the family. Where the Employer demands evidence that the deceased is the employee’s own child or parent, the employee must produce such evidence to the satisfaction of the Employer.

18.5. Other Leave

All other leave will be as per relevant Tanzanian Labour Law.

19. LOANS AND CREDIT SOCIETY

19.1

.Both parties agree that the Employer, in consultation with TUICO, will facilitate collections from employees who borrow and contribute to their Credit and Savings Societies or Co-operative ventures. The Employer undertakes to assist in this endeavor to the best of its ability.

19.2.

Were an employee requires the employer to provide evidence of employment for the purpose of obtaining a bank loan or credit loan the employer will provide such evidence in a timely manner.

Any dispute or grievance by any employee shall be dealt with in accordance with the provisions of the Employment and Labour Relations Act, 2004 (or as updated) and any rules made there under.

20. DISPUTES RESOLUTION

21. RETIREMENT

Both parties have agreed that a permanently employed employee may retire in accordance with relevant labor law or under the following conditions:

a.Upon attaining 55 years of age voluntarily and at the request of the employee.

b.Compulsorily at 60 years.

Provided that, if the employer is in need of the services of a retired Employee a separate and new arrangement may be contracted between the employer and the Employee.

c.A retired employee is entitled to a bus fare or a second class fare for a train and ship for themselves, their spouse and up to four children under 18 years of age (or who are still in school or college and are recognized by the government and the Employer). The fare should be enough to take the employee to their home village or other location mentioned in the contract of employment.

d.A retired employee shall be entitled to transportation of up to 2000 kilograms of household personal effects to their home village or any other location specified in the contract of employment. The company shall arrange to transport the personal effects.

A retired employee will be paid retirement benefits of 5 months basic salary plus 1 month basic salary for each year served as recognition of their service to the company.

22. JOB TRANSFER/RELOCATION

The Employer shall bear the cost of relocation of the employee from one place of work to another for the employee and his/her immediate family.

23. LONG SERVICE AWARD

The Employer shall give long service awards, in kind or in monetary equivalent, to all employees engaged permanently with the Company in accordance with the length of service as per table below.

Length of service Award
10 Completed years 1 Month gross salary
25 Completed years 2 Months gross salary

24. PRODUCTIVITY

Both parties agree that they shall consult and guide the employees on matters of productivity for the purpose of employee participation and contribution in the company’s better achievement.

25. OCCUPATIONAL HEALTH, SAFETY AND ENVIRONMENT

Both parties agree that the employer shall provide personal protective equipment (PPE) to all relevant employees and the employer will meet the requirements set out in the Occupational Health and Safety Act no. 5 of 2003 and the relevant Scania Tanzania Occupational Health Safety and Environment Policy

26. CONCLUSION

This agreement has been concluded and signed between Scania Tanzania Ltd and Tanzania Union of Industrial and Commercial Workers (TUICO), this 22nd day of March 2012.

On behalf of:

Tanzania Union of Industrial and Commercial Workers (TUICO)

Gwido Mgfcdunde Branch TUICO Chairman

Geoffrey Mgallo Branch TUICO Secretary

Willy Kibona

TUICO - Regional Secretary llala

Scania Tanzania Limited - 2012

Start date: → 2012-03-22
End date: → 2016-03-31
Ratified by: → Ministry
Ratified on: → 2012-03-22
Name industry: → Transport, logistics, communication
Name industry: → Passenger rail transport, interurban
Public/private sector: → In the private sector
Concluded by:
Name company: → Scania Tanzania Limited
Names trade unions: → Tanzanian Union of Industrial and Commercial Workers (TUICO) Field Branch of Tpcc
Name other signatories from employees' side: → Scania Tanzania Limited

TRAINING

Training programmes: → Yes
Apprenticeships: → No
Employer contributes to training fund for employees: → No

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 100 %
Maximum days for paid sickness leave: → 365 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: → 12.0 weeks
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: → 

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: → 40.0
Working days per week: → 5.0
Paid annual leave: → 28.0 days
Paid annual leave: → 4.0 weeks
Provisions on flexible work arrangements: → 

WAGES

Wages determined by means of pay scales: → No
Adjustment for rising costs of living: → 0

Extra payment for annual leave

Allowance for commuting work

Allowance for commuting work: → TZS  per month

Allowance for seniority

Allowance for seniority after: → 10 years of service

Meal vouchers

Meal vouchers provided: → Yes
Meal allowances provided: → No
Free legal assistance: → 
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