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COLLECTIVE BARGAINING AGREEMENT (C.B.A) BETWEEN DHL SUPPLY CHAIN INTERNATIONAL LIMITED AND UGANDA BEVERAGE TOBACCO & ALLIED WORKERS’ UNION - 2015

Period: April 2015 - March 2017

MEMORANDUM OF AGREEMENT BETWEEN DHL SUPPLY CHAIN INTERNATIONAL LIMITED (HEREINAFTER REFERRED TO AS THE COMPANY) AND UGANDA BEVERAGE TOBACCO & ALLIED WORKERS’ UNION (HEREINAFTER REFERRED TO AS THE UNION)

DHL Supply Chain International Ltd

Plot 8/8A, Kome Close Portbell, Luzira

15 MAY 2015

1. Introduction

This agreement shall only apply to all Permanent Unionisable employees of the Company. Specific terms and conditions not covered by this agreement and currently existing in the individual terms and conditions shall still apply without reference to them herein.

2. Probation

On first appointment, all employees will initially be employed on a probationary period of six (6) months. Upon satisfactory completion of the probation period the employee will be confirmed in writing. The immediate manager, with the involvement of the employee will review progress on training and job familiarization during this period. In the event that an employee is found to be unsuitable or unable to attain the required standard, the probation period may be extended for a further period up to a maximum of six months, in writing, to the employee and copied to the Union, at the absolute discretion of Management.

During the probationary period, either party may terminate the contract by giving not less than fourteen days’ notice of termination, or by payment, by either party, of seven days wages in lieu of notice.

3. Medical Examinations prior and during employment

New recruits for employment will be required to undergo a medical examination conducted by a doctor appointed by the Company before being effectively employed should they operate in an environment involving exposure to hazards. It is the Company’s prerogative to request for medical examinations from time to time to ensure employees are fit for their duties.

4. Salaries/Wages

All permanent employees that were in the service of the company on 31st December of the preceding year will be eligible for a salary increase as follows:

I. 10% of the Basic pay for the 1st year of this CBA for the period 1st April 2015 - 31st March 2016

II. 10% of the Basic pay for the 2nd year of this CBA for the period 1st April 2016 - 31st March 2017

Permanent employees who joined in the period of 1st Jan - 31st March of any year will not be eligible for a CBA salary increase that year. Employees will be notified in writing of any changes to their salaries.

5. Leave Travel allowance

Leave travel allowance shall be paid to employees proceeding on annual leave at the rate of 3.5% of annual basic pay. This amount will be pro-rated in the event that an employee proceeds on annual leave before a full year was worked since the last leave allowance was earned. This amount is payable once per annum, it will

not be transferred to the next leave period and cannot be paid if leave is not taken. It is the employee’s responsibility to agree with his/her annual leave with his/her Line Manager and in the event that leave cannot be taken due to business requirements a cancelled leave form MUST reach the HR department to enable accurate calculation of the leave at the point when the employee takes his /her leave.

6. Night Shift Allowance

Employees who may be required to work night shifts will be paid at a flat rate of Ushs. 60,000/= per month upon working 8 nights and above in any given month. Should the employee work less than 8 nights, the allowance will be prorated to the actual number of nights worked.

For purposes of this CBA ‘Night Shift’ is defined as the period between 7.00 pm at night (19:00) and 7.00 am in the morning (07:00).

7. Gazetted Public Holidays

Hours worked on gazetted Public Holidays shall be paid at the rate of double times the hourly rate as governed by the Employment Act of Uganda 2006.

8. Safari/Accommodation and Lunch Allowance

a. A driver sent on an official trip by the Company shall be entitled to a trip allowance as currently stipulated & provided for by the Company. The Company have the right to review these allowances from time to time and to request proof of spending thereof when required.

b. Employees who are not receiving a trip allowance and who execute their duties out of their duty stations or on sites that may not access canteen services, shall be paid a lunch allowance at the prevailing canteen rate.

9. Overtime and Working hours

The Employee shall be scheduled to work not more than forty eight hours (48) in a week.

■ The employee will be entitled to a 1 (one) hour lunch break respectively on each day. Lunch times are scheduled to ensure continuity of the operations.

■ Site access control systems might be deployed to monitor reporting and departure times. Employees will be required to oblige with the rules of these systems. Reports from these systems will be used to calculate and verify total hours worked per week and month.

a) Employees other than drivers:

An overtime allowance is payable if the Company requires the employee to work additional hours over and above the stipulated working hour limit. For employees (other than drivers) the hours worked in excess of 48 (Forty eight) hours per week, excluding a daily meal break of one hour shall be properly calculated and paid as follows:

■ Hours worked in excess of 48 hours per week on normal working days of Monday to Saturday shall be paid as overtime at the rate of one and a half times the hourly rate i.e. (1.5)

■ Hours worked on Rest days (Off days/ Sunday) and Gazetted Public holidays shall be paid overtime at the rate of double time the hourly rate. i.e. (2.0)

The above will not apply to employees who are working on a shift pattern where hours worked on these days are included in the normal Forty Eight hours per week.

b) will be paid a sixth and seventh day allowance after working through 5 continuous days as follows:

■ Sixth & Seventh day allowance - Ushs. 23,000/=

■ Gazetted Public Holiday allowance - Ushs. 40,000/=

Working on Sixth and Seventh days are discouraged as observing rest days are an important part of the Company’s Health and Safety policy.

10. Final Dues and Payments on Termination of Employment

Where the service of an employee ends under the circumstances listed below final dues will apply as stated.

On termination of a contract of employment for any reason below the Company shall provide an employee with a Certificate of Service with the final dues payment.

10.1 Retirement

Retirement age for the Company shall be upon attainment of sixty (60) years. An employee may also retire on proven medical grounds subject to verification by the Company doctor. Upon retirement an employee is eligible for retirement benefits as follows:

a. 25 days basic pay for every completed year of service

b. 30 bags of cement and 30 iron sheets or its equivalent in monetary terms

c. Pending leave days in accordance with the prevailing leave policy

d. Travel allowance of Ushs. 300,000/=

All these payments and allowances will be subject to the relevant taxes in force at the time of retirement. The Travel Allowance is paid in lieu of the repatriation provision of the Labour Law.

A retired employee will not be entitled to any other gratuity payment over and above the Retirement Benefits as stated in the CBA.

10.2 Redundancy

An employee who has been declared redundant due to operational requirements (structural and economical changes or a change in the client requirement) shall be paid severance pay as follows:

a. Payment in lieu of notice according to the notice period provisions stipulated in the Labour Legislation at the time.

b. 30 days basic pay for each completed year of service

c. Any other payment/allowance owing up to the day of redundancy including outstanding leave according to the leave policy in force at the time.

d. Repatriation will only apply under the provision of the definition of repatriation in the Labour Law.

All payments will be subject to the relevant taxes in force at the time of redundancy.

10.3 Involuntary Termination by the Company

In the event that the contract of service is ended by the Employer with notice for any involuntary reasons other than redundancy, retirement or disciplinary action, dues will be paid as follows:

a. Payment in lieu of notice according to the notice period provisions stipulated in the Labour Legislation at the time

b. Pending leave days according to the prevailing leave policy

c. Any payment/ allowance owing up the day of termination

d. Repatriation will only apply under the provision of the definition of repatriation in the Labour Law.

e. 15 days pay for each completed year of service

Payment for every completed year of service (e) and repatriation allowance (d) shall only be applicable to the involuntary terminations based on medical grounds.

Employees whose services are terminated due to disciplinary action (other than summary dismissal) will only be entitled to payment in lieu of notice as stipulated in (a) above and prorated pending leave days as in(b).

All these payments and allowances will be subject to the relevant taxes in force at the time of termination.

10.4 Summary Dismissal

An employee who has been summary dismissed according to the provisions of the CBA and the Labour Law will be entitled to:

a. Pending leave days in accordance with the prevailing leave policy

b. Any payment/allowance owing up to the day of Dismissal

c. Salary up to date of dismissal

d. A dismissed employee shall not be entitled to payment in lieu of notice

e. A dismissed employee shall not be entitled to any gratuity payments.

f. A dismissed employee shall not be entitled to repatriation under the Labour Law

All these payments and allowances will be subject to the relevant taxes in force at the time of dismissal.

The company reserves the right to recover from the employee any loss or damages resulting from his/her misconduct or any other outstanding obligations with the Company. This will be recovered from the employee’s final dues.

10.5 Voluntary Termination by way of resignation from Employee

An employee may resign from employment at any time by giving the appropriate notice in writing to the company or without notice by paying the company the equivalent salary in lieu. Upon resignation an employee shall be paid as follows:

a. Pending leave days in accordance with the prevailing leave policy

b. Any payment/allowances owing up to the day of resignation/ last working day

c. Salary up to date of resignation/last working day

e. Repatriation will only apply under the provision of the definition of repatriation in the Labour Law.

d. In the exceptional event that an employee’s personal domestic circumstances leaves him/her no choice but to resign and that there is significant evidence over a sustained period of time to support such a decision, it is up to Managements’ discretion to determine whether any gratuity will be payable.

All these payments and allowances will be subject to the relevant taxes in force at the time of resignation.

11. Death Benefits

The Company has taken appropriate insurance cover for permanent employees. This entails Group Life Assurance benefits (payable when death is as a result of illness) and Group Personal Accident benefits (payable when death is as a result of an accident while on duty). Both these payments are subject to the provisions of the insurance policy, and relevant investigations and the insurance company’s decision is final.

12. Burial

When an employee passes away while in service, the Company shall contribute Ushs. 1,500,000/= towards funeral expenses.

The Company shall facilitate transport for approved staff representatives to attend the burial of a fellow staff member.

The company through its medical service provider has negotiated a contribution of 1,000,000/= to cater for the registered dependants in case of death. This is dependent on the policy arrangements in force which are reviewed on an annual basis.

13. Personal Protective Equipment (PPE) and Identity Cards

The company will provide suitable PPE for employees who by nature of their employment are required to wear PPE.

All PPE remains the property of the Company and should only be used for the business of the company. Replacements shall only be made upon wear and tear and with the return of the old PPE.

In the event that PPE is lost an employee is required to report to the line manager immediately. If the loss is as a result of negligence, the employee shall be charged.

The company shall provide Identity cards to all employees and each employee is required to wear the card while on Company premises. In event of damage due to neglect, the employee may be asked to pay the cost of replacing the card.

The card is the property of the Company and is not transferable and must be returned to the company upon termination, retirement or resignation.

14. Acting Allowance

Employees might be required to perform duties over and above their current responsibilities in order for the business to meet its requirements. In such cases these additional duties will be communicated in writing, and an Acting Allowance will be paid to compensate for the additional work.

a. Where an Acting employee is required to work for a period of not less than fifteen days in an occupation or grade higher than the Acting employee’s current position, the Acting employee shall be paid an acting Allowance at a rate of 15% of his/her basic wage. On the 15th day of performing these additional duties, the Acting Allowance will be paid in full and not prorated. When Acting continues after the 1st month, days worked which are less than 15 will be paid on a prorated basis while on the 15th day the Acting Allowance for the month will be paid in full without prorating.

b. Period of time, he/she shall be paid an Acting Allowance at a rate of 10% of his/her basic wage. On the 15th day the Acting Allowance will be paid in full and not prorated.

When an employee is required to act and Acting continues after the 1st month, days worked which are less than 15 will be paid on a prorated basis while on the 15th day the Acting Allowance for the month will be paid in full without prorating.

c. Where an employee acts successfully in a vacant position for six months consecutively, the employee shall be entitled to be confirmed to that position.

15. Absence through Sickness or Injury

a. An employee may be granted two month’s sick leave with full pay and two month’s sick leave with half pay upon hospitalization and producing a certified authorization from a recognized medical practitioner. Sick leave may be extended beyond this period at the discretion of the company.

b. If you are absent from work as a result of sickness or injury, you or someone on your behalf must notify your Manager 3 hours prior to your normal starting time on the first day of your absence.

c. Thereafter, at regular intervals, as specified by your Manager, you must keep the Company informed of your condition whilst your absence continues and of the likely date of your return to work, a medical certificate must be produced to your Manager, after more than two consecutive days of absence from work.

d. On your return to work you may be expected to attend a return to work interview, which would be conducted with yourself and your manager.

e. An employee may be granted not more than a month of casual sick leave (21 working days) in any 12 months. This must be brought to the attention of the HR Department and the Direct Line Manager and an off duty form approved.

A medical certificate from a certified practitioner has to reach the Company within 48 hours from the first day of absence.

f. The Company reserves the right to require you to attend an additional medical examination by a Doctor it nominates to determine your capability to perform your duties.

g. If you fail to notify the Company in accordance with the provisions of the above paragraph, it will be assumed that you are absent without authority and disciplinary action can be taken against you or the Company reserves the right not to pay you for any days on which proper notification is not given.

16. Disciplinary Procedure

An employee whose work or conduct is unsatisfactory or who otherwise commits a misconduct which, in the opinion of the Company does not warrant instant dismissal shall be warned in writing and the following procedure shall apply: -

a. the first and second warnings shall be entered in the employee’s file and the shop steward shall be informed accordingly;

b. the second warning shall be copied to the union representatives office;

c. if an employee who has already received two warnings commits a third misconduct he/she shall be liable to summary dismissal.

Provided that where an employee completes twelve months from the date of the second warning without further misconduct any warning entered in his file shall be expunged

d.Where, following due investigation, an employee is deemed to have committed an act of gross misconduct, he/she may be summarily dismissed from employment.

The following are some of the offences considered to be gross misconduct as outlined in the Company’s Terms and Conditions and the DPDHL Code of Conduct:

- Theft Attempted theft

- Fraud

- Assault/Fighting in the company premises Acts of indecency

Malicious damage to company property Serious breaches of Health and Safety requirements

Refusal to carry out contractual or reasonable instruction from the Management (insubordination)

Unauthorized use of company vehicles

Offensive conduct towards colleagues or client representatives Racial or tribal abuse Sexual harassment

Failure to report on duty for more than ten consecutive days as a result of

lawful imprisonment

Breach of statutory regulations

- Carrying unauthorized passengers in company vehicles.

Breach of substance misuse policy

Serious breach of Transport Safety Requirements

However, this list is NOT exhaustive and there may be other grounds for Summary Dismissal.

e. Where an employee is suspected to have committed an offence, he/she may be suspended to facilitate investigations. The suspension will be with half pay and would not normally exceed 30 days. Employee is required to remain available and reacheable at all times in case of any enquiry.

17. Grievance Procedure

The purpose of the procedure is to provide the means by which grievance issues arising between the company and employees individually or collectively can be resolved rapidly and effectively whilst ensuring the continuity of the business operations.

Stage 1

a) In the case of an individual grievance, the employee should raise the matter with his/her immediate superior, in writing.

b) Where the grievance affects a group of employees, a representative of the group will act on their behalf in raising the matter with the appropriate Line Manager, in writing.

c) If the matter is not resolved within one week (or longer if mutually agreed) the issue is then referred to Stage 2.

Stage 2

The Chief Shop Steward will hear the grievance from the individual employee or a representative of the group in case of a collective grievance. If the matter is not resolved within two weeks (or longer if mutually agreed), the issue is then referred to Stage 3.

Stage 3

The meeting will be convened, normally within two weeks, between the relevant HR Manager; the individual or up to two representatives of the group and the Chief Shop steward, in the case of a collective grievance, in a final attempt to resolve the problem. Where necessary the relevant Line Manager and Contract Manager will be invited to sit in the panel.

Should the matter remain unresolved, the issue will be referred to the Country Manager.

This procedure is capable of resolving all matters of dispute between the Company and employees; therefore, at no time will there be any disruption to the normal Business operations and activities. It is clearly recognised by all parties that Industrial Action of any kind will be regarded as a breach of the Contract of Employment, which could result in dismissal.

18. Alcohol Level Assessment

As part of our commitment to ensure that all employees work in a safe environment, all employees are prohibited from entering the company premises under the influence of alcohol. Therefore there is a zero tolerance for alcohol usage. Any employee in breach of the foregoing shall be in breach of the Company policy and will be subjected to appropriate disciplinary action which includes summary dismissal.

The Company reserves the right to request employees to participate in an alcohol level measurement at any time including upon entry on the premises, exit of the site premises and during the execution of duties.

This procedure applies to all employees, contractors and third parties conducting activities, assignments and tasks on behalf of DHL on all sites.

19. Election of Committee Members

The union shall hold elections to vote on committee members every 5 calendar years. The voting shall be done by DHL registered union members.

20. Annual General Meetings

The union shall in each calendar year, hold a general meeting as its annual general meeting on addition to any other meetings in that year. The trade union shall keep records of all the meeting proceedings and will be signed off by the committee members.

21. Membership to the Union

All non-management permanent employees will be considered members of the union (UBTAWU) once the company has received their written approval to deduct union (UBTAWU) contributions. For withdrawal a union member shall be required to give one month’s written notice to the Union General Secretary who will then inform the Company to seize deductions.

22. Roles and Responsibilitiesof the Union

Although the Union looks after the interests of their members, there is need to also realise the importance of working in partnership with the employer through;

a. Negotiating collective agreements:Union representatives bargain about the

terms and conditions of employment of workers

b. Representing workers at disciplinary and grievance hearings: The Union representative accompanies worker at a hearing and protects the worker against unfair dismissal and other issues relating to employment legislation

c.Collective Responsibility:Management will communicate their targets &

performance expectations through the union representatives who will drive the entire team for the company to achieve better performance results.

Signed

- DHL SUPPLY CHAIN INTERNATIONAL LIMITED

- UGANDA BEVERAGE TOBACCO & ALLIED WORKERS’ UNION

Date: 15 MAY 2015

DHL Supply Chain International Limited - 2015

Start date: → 2015-04-01
End date: → 2017-03-31
Ratified by: → Other
Ratified on: → 2015-03-05
Name industry: → Transport, logistics, communication
Public/private sector: → In the private sector
Concluded by:
Name company: → DHL Supply Chain International Limited
Names trade unions: → Uganda Beverage, Tobacco and Allied Workers’ Union

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 50 %
Maximum days for paid sickness leave: → 120 days
Provisions regarding return to work after long-term illness, e.g. cancer treatment: → Yes
Paid menstruation leave: → No
Pay in case of disability due to work accident: → Yes

EMPLOYMENT CONTRACTS

Trial period duration: → 180 days
Severance pay after 5 years of service (number of days' wages): → 150 days
Severance pay after one year of service ((number of days' wages): → 30 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: → 48.0
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: → 10.0 %
Wage increase starts: → 2015-04

Once only extra payment

Once only extra payment: → 15 %
Once only extra payment due to company performance: → Yes

Premium for evening or night work

Premium for evening or night work: → UGX 60000.0 per month
Premium for night work only: → Yes

Extra payment for annual leave

Extra payment for annual leave: → 3.5 % of basic wage

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Premium for Sunday work

Premium for Sunday work: → 200 %

Meal vouchers

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