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AGREEMENT BETWEEN UGANDA BEVERAGE TOBACCO AND ALLIED WORKERS’ UNION (UBWATU) AND NILE BREWERIES (U) LTD - 2015

JULY 2015 - JUNE 2016

MANAGEMENT/UNION AGREEMENT 1ST JULY 2015 - 30TH JUNE 2016

PART 3:CONDITIONS OF EMPLOYMENT

Notwithstanding the date of signature, this revision of Part three of the Voluntary Collective Agreement will become effective from 1st July 2015 to 30th June 2016, and will remain in force until replaced by a negotiated revision. This revision supersedes all predated versions of this part of the Voluntary Collective Agreement.

3.1 WORKING HOURS

3.1.1 Normal hours of work are forty-five (45) hours a week, spread over five (5) days in any week for general shift workers. Saturday will be considered a normal working day for overtime calculation purposes as the case is with other operations.

3.1.2 Sundays and legislated Public Holidays shall be resting days and any worker required to work on those days will be compensated in accordance with the Public Holidays and Rest Days clause of this Agreement.

3.1.3 Days and Hours of Operation: The Company operates seven (7) days per week, twenty-four hours per day.

3.1.4 Management will determine hours of operation. Any changes will be communicated to the Union in advance.

3.1.5 Peak periods of operation are established by Management in response to market forces. Decisions regarding the determination of peak periods will be communicated to the Union in advance.

3.1.6 For the duration of this Agreement meal breaks and tea-breaks shall be paid provided that:

3.1.6.1 Meal-breaks shall not exceed thirty minutes per shift or day.

3.1.6.2 Continuous operations, such as beer packaging, are not halted.

3.1.6.3 The scheduling and implementation of meal and tea breaks are to be agreed at departmental level.

3.2 WORK CONFIGURATIONS

3.2.1 Three work configurations apply:

General Shift Work

Standard Shift Work

Continuous Shift Work.

3.2.2 Normal Working Hours

General Shift Work:

9 hours per day / 45 hours per week, spread over any five of the six days from Monday to Saturday.

Standard Shift Work:

Standard shift work refers to work in areas that do not work seven days per week. i.e. the work pattern is over a five day period with the possibility of overtime .

2x8 hours per day.

3x8 hours per day

2x 12 hours per day.

Combinations of 8 and 12 hour shifts.

Continuous Shift Work

This refers to work in areas that continue to operate seven days per week and twenty-four hours per day.

4x8 hours shifts

3x 12 hours shifts

Combinations of 12 hour shifts and 8 hour shifts.

3.2.3 It is agreed that, due to operational requirements, it may be necessary to change the number and type of shift configurations at any plant. Such changes shall be communicated to the trade union in advance.

3.3 PAY

The Company subscribes to the concept of a clean wage, whereby the employee is remunerated for services rendered, and has the freedom to allocate his / her earning according to his / her own needs.

3.3.1 Basis of Pay

Remuneration for all employees in the bargaining unit will be based on actual time worked, paid monthly in arrears.

3.3.2 Salary/Wages

Increment for 1st July 2015 - 30th June 2016

It was agreed to increase the Wages by 6% effective 1st July 2015 until 30th June 2016 as below:

Grade Current 2014/2015

USHS

2015/2016

USHS

A 923,181 978,571.86
B 976,629 1,035,226.74
C 1,041,100 1,103,566
D 1,101,897 1168010.82
E 1,183,070 1,254,054.2

3.3.3 Weekend Transport Refund

Transport refund will be payable where workers are expected to report for duty on Saturdays, Sundays or public holidays. This refund will be paid according to the official Taxi Rates as amended from time to time.

3.3.4 Night Subsistence Allowance

It was agreed that night subsistence allowance remains at UGX 55,000/= broken down as follow.

Accommodation 34,000=
Breakfast 5,000=
Lunch 8,000=
Dinner 8.000=
Total 55.000=

Safari Allowance

Where employees are required to do duties that necessitate their being away from their regular base, they shall be paid safari allowance which will be the cost of the relevant meal / s for the day as envisaged in clause 3.3.4. Or the employee can take imprest and account for it within 5 working days of return from a trip.

3.3.5 Lunch allowance within 6km radius of work station

Lunch allowance to remain at Shs 8,000/= per day.

3.3.6 Heavy Duty/Soot and Dust Allowance

To remain the same.

3.3.7 Leave Traveling Allowance

It was agreed that this allowance remains at UGX 350,000= per employee proceeding on Leave with effect from 1st July 2014.

3.3.8 Transfer/Disturbance Allowance

If a worker is permanently transferred to a new station he shall be entitled to transfer/disturbance allowance equivalent to double of leave travelling allowance. In addition the employee shall be transferred together with his family at the employer's expense. This does not apply to employees, who by their own volition, have applied for and are posted to a new role.

3.3.9 Acting Allowance

Applies where a worker is required to perform duties for another employee in a higher grade for a period exceeding two weeks. In this case the acting worker will receive a formal letter of acting appointment and will receive the difference between his / her monthly package and the package of the substantive holder of the post for the full period where he or she acts at the higher grade. A worker who is expected to act in a higher position for a period exceeding 6 months shall be confirmed in the higher position.

3.3.10 Free Beer Allowance

Each employee is to receive one crate (employees appointed before 1st June, 2008 will receive 25 bottles to Euro crate while employees appointed w.e.f. 1st June 2008 will receive 20 bottles equivalent to polish crate) per month plus one extra crate on Xmas day.

3.3.11 Night Shift Allowance

It was agreed that night subsistence allowance be increased from UGX 85,000/= to UGX 90,000/=per month per employee on shift with effect from 1st July 2014.

3.4 OVERTIME

3.4.1 Overtime is worked at Management's discretion. The nature of the business dictates the necessity for overtime to be worked regularly and workers are required to work overtime when requested to do so. Such requests will not be unreasonable and will give workers reasonable notice.

3.4.2 Overtime is any ore-authorized time worked in excess of the workers scheduled daily hours of work.

3.4.3 Overtime will be calculated on the workers basic rate.

3.4.4 Overtime will be paid as follows:

(a) Time and a half on normal work days.

(b) Double time on Saturdays, Sundays and Public Holidays.

All workers in Grades A to E qualify for overtime.

3.5 PROBATION

3.5.1 A new employee shall serve a probationary period of 3 (three) months. Permanent appointment to the position shall be confirmed provided the employee has satisfactorily completed the probationary period.

The probationary period may be extended at management's discretion, by no more than three (3) months if management is not completely satisfied with the probationary employee's general performance and or behaviour.

The Union shall be notified of circumstances underlying the extension of this period.

The probationary appointment may be terminated within fourteen days' notice at any time if the employee has been found not suitable for permanent employment. The union shall be notified of the circumstances surrounding the termination.

The Human Resource Operation Manager shall be responsible for monitoring probation periods and initiating the confirmation process when appropriate.

3.6 MEDICAL TREATMENT

The Company clinic will provide medical treatment for all workers, one registered spouse and four registered children as defined in the existing policy.

If necessary cases may be referred to a government hospital by the Company Doctor. In such cases the Company Doctor will be responsible to follow up and authorized treatment will be for the company account.

In line with legislation, all employees are required to undergo annual medical examinations. UBTAWU Nile Breweries' Branch will monitor the process to ensure it takes place and will assist in scheduling examinations. The results of such annual medical examinations shall not be used to unfairly discriminate against employees.

3.7 DEATHS AND FUNERALS

3.7.1 It was agreed that in case of death of an employee's dependant ( i.e. spouse, children) the company will provide the following

> Coffin (25 metres of cloth for Moslems)

> 10 metres of cloth (5 metres for child)

> 50 kgs of Rice (50 Kgs for child)

> 30 kgs of Meat (20 Kgs for a child)

> 05 kgs of salt

> Transport of the body to the burial site.

3.7.2 It was also agreed that in case of death of an employee, the company will provide the following:

> Provident Fund Benefits and any other Terminal Benefits due to the employee.

> Use a Funeral Service Company/ an equivalent to organize and execute the funeral arrangements.

> One month's gross salary of the employees to the bereaved family.

> Two Crates of Soda.

> 80kgs of rice

> 30kgs of meat

> Two (2) people, i.e. One Union representative and another fellow section worker to officially attend the burial and be paid day Safari, Lunch or Night Subsistence allowance, as the case may be.

3.8 PROTECTIVE CLOTHING AND WORKING TOOLS

All workers serving on permanent terms whose jobs require the use of protective clothing shall be provided with the appropriate clothing and equipment as instructed by management.

The careless use, loss or destruction of company issued clothing and equipment will result in disciplinary action.

Casual and temporary employees shall be provided with the minimum protective clothing and equipment consistent with safe and healthy work practices.

Employees shall use and wear the protective clothing and equipment issued. Failure to do so will be cause for disciplinary action.

Employees will each receive two bars of soap monthly for laundering protective garments.

3.9 HEALTH AND SAFETY

A health and safety committee has been established for the purpose of discussing health and safety issues and to resolve issues relating to health and safety in the plant.

The Union is be represented by three members and management is be represented by three members.

3.10 LEAVE

3.10.1 Annual Leave:

The timing of annual leave is at the discretion of the Company, with consideration given to workers personal wishes. Leave must be applied for and approved in advance. Leave should be applied for in Smart ESS, and will become valid only when it has been recommended by the workers supervisor and authorized by the Head of Department and Human Resource Operations Manager.

Leave will not normally be granted during peak periods as declared by management in accordance with clause 3.1.5.

Workers shall be entitled to thirty (30)-calendar days leave per annum.

Not more than one cycle's leave may be accumulated, so that the maximum outstanding leave for an individual employee cannot exceed 30 days.

Outstanding leave not taken within the time limit stipulated will be forfeited. Leave may only be carried forward from one leave year to the next with a director’s written approval.

Any leave earned, but not forfeited or taken, at the time of the termination of employment of a worker, will be paid out in full.

If leave is refused by Management and the worker combines that leave with the following year's leave, he will be entitled to each year's allowance at the respective year's rate provided he has a letter of refusal of leave signed by management.

Annual leave may only be enchased in exceptional circumstances and this is entirely at management's discretion.

If a worker gives notice of termination of service and that worker has leave due to him such leave may be taken within the notice period if he so wishes.

Leave wages and leave allowance shall be paid to the worker immediately prior to proceeding on leave.

3.11 MATERNITY AND PATERNITY LEAVE

Female and male workers are entitled to maternity and paternity leave respectively.

Maternity leave of 60 working days on full pay will be granted subject to,

• The provision of a medical certificate signed by an approved medical practitioner indicating the period of her confinement

• Male worker is entitled to 4 working days on full pay.

• Maternity and paternity leave shall be granted in terms of Sections 56 and 57 of the Employment Act of 2006.

3.12 SICK LEAVE

Sick leave will be paid at management's discretion, subject to the following conditions:-

3.12.1.1 An employee who is unable to report for duty because of illness or injury is eligible for paid sick leave subject to the following requirements,

• The employee must have satisfactorily completed his three month probationary period as envisaged in clause 3.5

• The Supervisor must be notified before the end of the first absent shift.

An absence of more than one (1) calendar day, for which an employee claims sick leave may only be paid after submission of an authentic certificate from a registered medical practitioner. Such a certificate must certify that the employee was unfit for duty during the period of absence and shall be produced within three days following the date of absence.

3.12.2 An employee who is absent from duty owing to ill health not caused by his negligence or misconduct is entitled to sick leave. Such leave is granted by the company on reasonable prospects of his eventual recovery and fitness for duty. Sick leave shall be granted on production of a certificate signed by an approved medical practitioner.

In the case of long term illness employees may be granted sick leave up to maximum of 90 days on full pay and a further 90 days on half pay in any one calendar year. Thereafter payment will cease although a further 90 days unpaid sick leave may be taken. Employees on probation maybe granted 60 days sick leave with full pay and a further 30 days with half pay in one calendar year. There after payment will cease. These provisions apply only if the case is pre-authorised by the company Doctor and the Director in Charge of the section where the employee works.

If any employee has been away from work for a period less than 270 days he may return to work. If an employee has been away for a period in excess of 270 days he may be terminated on terms which take account of his length of service and medical condition.

3.12.3 The Company reserves the right to obtain a second medical opinion if, in its view, an employee is utilising excessive sick leave or if the employee appears to be too ill to continue working.

3.12.4 Such sick leave may not be accumulated from year to year.

3.12.5 The employee shall not resume duty until certified fit by an approved medical practitioner or the Company Doctor.

3.13 UNPAID LEAVE

Granting of leave of absence other than annual leave is at the sole discretion of the employer. However, subject to operational constraints, up to three days unpaid leave a year may be granted to an employee for appropriate religious functions, holidays etc. Such leave will be unpaid or deductible from the annual leave.

3.14 COMPASSIONATE LEAVE

3.14.1 The Company will grant paid compassionate leave up to a maximum of seven (7) days per year in the event of, the death of a biologically related member of the employee's immediate family, i.e. father, mother, brother, sister, son, daughter, or the spouse of the employee.

3.14.2 Documentary proof of the need for the compassionate leave set out in clause 3.10.5.1 may be provided either before or after the employee proceeds on compassionate leave, but must be provided.

3.15 PUBLIC HOLIDAYS AND REST DAYS

3.15.1Public holidays are as announced through publication in the Government Gazette.

3.15.2 When a gazetted public holiday falls on a day which an employee is scheduled to work in term of his shift configuration, the employee will be paid as follows,

normal time for the day plus overtime as per clause 3.4.4 for hours actually worked if he / she works on that day;

normal time only if he/she is not required to work on that day.

3.15.3 The following categories of employees are required to work on all public holidays:- Engine room and boiler house employees;

Emergency staff during emergencies;

Security staff;

All continuous shift employees who are scheduled to work on that day.

Saturdays and Sundays refer to Clause 3.4.

3.16 PEAK PERIOD TRANSPORT

It was agreed that Shs 25,000= be paid for each day worked on the following days: Good Friday, Easter Sunday, Easter Monday, Christmas Day, Boxing Day and New years' holiday as top up on transport refund for the said periods for employees who will have worked for the respective days.

3.17 SHIFT TRANSPORT

Employees on shift willbe providedtransporttopick/ drop them in a radius of not more than 15kms of the brewery at night.

3.18 RESIGNATION FROMAND TERMINATIONOFSERVICE

3.18.1 In case of termination of service (provided it is not summary dismissal), for all employees

who have completed their probation and have been confirmed, the following terms will apply in accordance with the Employment Act 2006, section 58.

The notice required to be given by the company or employee under this section shall be—

(a) not less than two weeks, where the employee has been employed for a period of more than six months but less than one year;

(b) not less than one month, where the employee has been employed for a period of more than twelve months, but less than five years;

(c) not less than two months, where the employee has been employed for period of five ,but less than ten years; and

(d) not less than three months where the service is ten years or more.

Where the pay period by reference to which the employee is paid his or her wages is longer than the period of notice to which the employee would be entitled, the employee is entitled to notice equivalent to that pay period. Where the period of notice given by the employee to the company is less than that stated in 3.18.1 above, the employee will pay the company in lieu of the stated applicable notice period.

The confirmation of notice period or payment of salary in lieu of notice shall be in writing.

After completing the disciplinary process the Company reserves the right to summarily dismiss an employee for reasons recognized by law. These include:

Gross misconduct e.g. theft, fraud, assault, fighting on company’s premises or whilst on Company's business, etc.

absence without cause or permission for a period of seven (7) consecutive days; conviction in a court of law for a felony.

It is agreed that summary dismissal is a valid sanction which may be applied when a worker is found guilty of gross misconduct as a consequence of the disciplinary process.

Termination of service by the Company will follow the retirement, discipline or retrenchment procedures provided for in this Agreement.

3.19 FINAL TRANSPORT

It was agreed that this transport be maintained at Ushs.600,000/-.This however does not apply in case of summary dismissal.

3.20 RETIREMENT

The normal retirement age is fifty-five (55) years. An employee may volunteer for retirement at age fifty (50), subject to approval by the Company. A Nile Breweries Provident Fund (NBSPF) has been registered and certified in place of the Gratuity Scheme and the money from it has also now been put in the Nile Breweries Staff Provident Fund.

The NBSPF has transitioned from a defined benefit scheme to a defined contribution scheme and thus all contributions from the Company and employees (if any) will now be remitted in this fund. Employees who shall become members on completion of their probation shall be bound by the Trust Deed and Rules of the NBSPF.

A brief summary of the operations and benefits of the scheme is described below:

The name of the Fund is "NILE BREWERIES STAFF PROVIDENT FUND" (NBSPF). The Fund commenced on the 1st April 2008. The main purpose of the Fund is to provide retirement and other benefits for employees of Nile Breweries limited.

A board of Trustees was established and is responsible for the overall management of the Fund. The Board of trustees has appointed the following providers; Alexander Forbes as Administrator of the Fund, Pine Bridge as Fund Manager and Standard Chartered Bank of Uganda Limited as Custodian and PKF as Fund Auditor. The providers will be reviewed routinely and reappointed if necessary

3.20.1 CONTRIBUTIONS

Members are not required to contribute to the Fund. However, each member shall be permitted to make additional voluntary contributions at a rate of 0%, 3%, 5.0%, 10% or 12% with the concerned member's approval provided that such contribution will be set for a period of one (1) year and may not be amended without the consent of Nile Breweries Limited and Trustees.

Contributions by the Employer

Nile Breweries Limited shall contribute to the Fund for the benefit of Employees with staff grades A to E at the rate of 10.42 % (percentage) of Fund Salary, paid by Nile Breweries Limited monthly to the Fund.

Out of the amount paid above the balance, less the cost of the administration and general expenses of the Fund for the month concerned, shall be applied toward the Member's retirement benefit under Nile Breweries Limited's Portion.

Variation of Contributions:

Notwithstanding Nile Breweries Limited may on giving one year written notice to the Trustees, vary the rate of contributions to be made by Nile Breweries Limited. In such an event, the Trustees shall cause the Rules to be appropriately amended.

3.20.2 Currently other Terminal Benefits are payable as follows:-

• Below two years' service: At management's discretion individual cases may be considered on merit.

• More than two (2) years but less than ten (10) years of Service: Eighteen (18) Iron sheets (10 feet, 28 Gauge) and three (03) bags of cement.

• More than ten (10) years but less than fifteen (15) years of Service: Twenty three (23) iron sheets (10 feet, 28 gauge) and eight (08) bags of cement.

• More than fifteen (15) years of Service: Twenty eight (28) Iron sheets (10 feet, 28 gauge) and eight (08) bags of cement.

In line with the clean wage policy a consolidated package will paid.

The employee bears the Tax burden.

The Company may require an employee to take early retirement if the employee is within five (5) years of retirement, and in the company's opinion is no longer capable of performing his duties satisfactorily.

The Company may retain the services of an employee who has reached retirement age on a contract basis provided the employee agrees.

3.20.3 Contracts

o In the event of redundancy as a result of retrenchment / restructuring or retirement due to service age, management should sensitize the affected employees and give them priority when awarding contracts due for renewal.

o When an employee or group of employees is / are terminated or discontinued on medical grounds the company should do as above

o Affected employees should be able to express their interest in the contracts (i) above in writing to management

3.21 EMPLOYMENT PROCEDURES AND PRACTICES

Where appropriate, vacancies will be advertised internally first and then externally if no suitable candidates are available from the list of internal applicants. The most suitable candidate, whether internal or external, will be appointed.

3.21.1 Casual / Temporary workers may apply for advertised vacancies in terms of this clause.

3.22 CANTEEN SERVICE, MEALS AND TEA

A canteen service comprising Meals and Tea is to be provided at a subsidized cost to employees. It was agreed the contribution remains at Shs. 1000= per plate.

3.23 PERFORMANCE APPRAISALS

3.23.1It was agreed that an individual performance measurement system be introduced with a view of applying Performance Related Pay in future.

Employees in Grades A-E are to set individual goals starting with F13 in preparation for implementation of F14 salaries reviews based on final year end performance score ratings.

3.24 LOANS

3.24.1 A suitable loan scheme with an approved bank to be implemented.

*****

AGREEMENT BETWEEN UBTAWU AND NBL - JULY 2015 - JUNE 2016

Nile Breweries (U) Ltd - 2015

Start date: → 2015-07-01
End date: → 2016-06-30
Ratified by: → Other
Ratified on: → 2015-07-01
Name industry: → Manufacturing
Name industry: → Manufacture of beverages
Public/private sector: → In the private sector
Concluded by:
Name company: → Nile Breweries (U) Ltd
Names trade unions: → Uganda Beverages, Tobacco and Allied Workers′ Union

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 75 %
Maximum days for paid sickness leave: → 270 days
Provisions regarding return to work after long-term illness, e.g. cancer treatment: → Yes
Paid menstruation leave: → Yes
Pay in case of disability due to work accident: → Yes

WORK AND FAMILY ARRANGEMENTS

Maternity paid leave: → 8.5 weeks
Maternity paid leave restricted to 100 % of basic wage
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: → No
Paid leave per year in case of caring for relatives: → 7 days
Paternity paid leave: → 4 days
Leave duration in days in case of death of a relative: → 7 days

EMPLOYMENT CONTRACTS

Trial period duration: → 90 days
Part-time workers excluded from any provision: → No
Provisions about temporary workers: → No
Apprentices excluded from any provision: → No
Minijobs/student jobs excluded from any provision: → No

WORKING HOURS, SCHEDULES AND HOLIDAYS

Working hours per week: → 45.0
Working days per week: → 5.0
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: → No

WAGES

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

Wage increase

Wage increase: → 6.0 %
Wage increase starts: → 2015-07

Once only extra payment

Once only extra payment due to company performance: → Yes
Once only extra payment takes place: → 2008-06

Premium for evening or night work

Premium for evening or night work: → UGX 90000.0 per month
Premium for night work only: → Yes

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Premium for Sunday work

Premium for Sunday work: → 200 %

Allowance for commuting work

Allowance for seniority

Allowance for seniority after: → 2 years of service

Meal vouchers

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