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THE REPUBLIC OF UGANDA COLLECTIVE BARGAINING AGREEMENT BETWEEN FRESH HANDLING LTD AND THE UGANDA HORTICULTURAL AND ALLIED WORKERS UNION ON TERMS AND CONDITIONS OF SERVICE FOR THE UNIONISABLE EMPLOYEES OF THE COMPANY

ARTICLE 1:AFFIRMATION

a) This Collective Bargaining Agreement is made between Fresh Handling Ltd. here-in-after referred to as “the Company” and Uganda Horticultural and Allied Workers’ Union (UHAWU), here-in-after referred to as “the Union”.

b) This Agreement shall govern the Terms and Conditions of Service of all unionisable employees of the Company.

c) In entering this agreement it is mutually agreed that it is in the interest of Fresh Handling Limited and the Uganda Horticultural and Allied Workers’ Union to have stability of operations and continuous reliable employment for the mutual benefit of employees, management and all stakeholders. To attain this objective, it requires expeditious and peaceful resolution of issues that may arise in the course of management/employee relations. Both parties therefore hereby agree to resolve any differences that so arise, through the process of collective bargaining and/or as may be otherwise agreed between both parties.

ARTICLE 2 - COMMITMENTS AND OBJECTIVES

a) In concluding the agreement, both parties hereto agree to be always guided by the following:

i. Attaining the improved workers’ working conditions and ensuring the protection of the environment.

ii. Attaining continuous improvement in workers’ earnings and generally to safe guard the social and economic objectives of the workers.

iii. Safe guarding the interests of the Company particularly with regard to improvements in productivity and efficiency.

iv. Taking into account the workers’ standard of living.

v. Enable the Company to create a good working environment for its employees and to regulate and promote good working relations with the union, the company and all the employees.

vi. To enable Fresh Handling Ltd to attract and retain high quality employees.

vii. To provide a basis for proper Human Resources Management and development.

b)In the event of any difference in the interpretation of any part of this agreement, such matters shall be settled through the Grievance Procedure or in accordance with the Labour Disputes (Arbitration and Settlement) Act and in accordance with any similar legislation which may ensue.

c)All disputes shall be dealt with in accordance with the machinery laid down in this agreement and the Recognition Agreement between the Company and the Union.

ARTICLE 3:ENGAGEMENT

a) All vacancies in the Company shall be advertised internally followed by external advertising where no suitable candidate has been located through the internal advertisements.

b) After attending an interview the successful candidate will be engaged subject to passing a pre-placement medical examination by the Company doctor.

c) Upon engagement a letter of appointment shall be given to the successful candidate. The letter shall briefly describe the appointee’s duties, salary and other terms and conditions of service as appropriate. The appointee shall be expected to notify the Company of his/her acceptance of the appointment within two weeks from the date of receiving the letter of appointment.

ARTICLE 4:CATEGORIES OF EMPLOYMENT

The categories of employment into the service of the Company are as follows:

a) Permanent Employee

Is an employee who has been confirmed in his/her appointment upon successful completion of his/her probation period at a salary within the Company’s salary scales.

b) Contract Employee

Is an employee engaged for a specific period and terms provided for in the contract. No contract should exceed 6 months without review and renewal

c) Seconded Employee

Is an employee engaged under an agreement between the Company and his/her principal employer.

d) Temporary Employees

Is an employee engaged under a letter of temporary appointment to handle work whose volume or nature in the medium term may not necessitate permanent employment. No contract should exceed 6 months without review and renewal.If there are suitable vacancies, such an employee should be taken on by the Company, subject to successfully passing the requirements of Article 3.

e) Casual Employee

Is an employee engaged under a letter of casual appointment and paid a weekly wage to handle work whose volume or nature in the short term would not necessitate permanent employment. No contract should exceed 6 months without review and renewal. If there are suitable vacancies, such an employee should be taken on by the Company, subject to successfully passing the requirements of Article 3.

ARTICLE 5:PROBATION

a) A newly recruited employee will be required to serve a probation period of six (6) months. During this period the Section Head shall assess the employee’s performance and suitability for confirmation.

b) During the probationary period either party may terminate employment in accordance with the termination clause herein.

c) If the Company finds it necessary to extend the probation period of the employee, then this period shall not exceed an additional six months.

ARTICLE 6:CONFIRMATION

The Human Resources Officer shall seek confirmation of an employee on probation at least one month before the date of expiration of the probation. Should the Company not raise any case against the confirmation of an employee by the date on which his/her probation expires, the employee shall be deemed confirmed in his/her employment and shall start enjoying all benefits due to a permanent employee of the Company with effect from the due date.

ARTICLE 7:INDUCTION

a) A newly recruited employee shall be given an appropriate induction course to be followed by necessary on-the job training and/or other courses of training that will enable the employee to perform his/her duties satisfactorily.

b) The Human Resources Officer shall ensure that this procedure is carried out promptly before the employee commences his/her duties.

ARTICLE 8:TRAINING

a)The Company shall draw up a Training and Development programme and Policy for all employees.

b)The training programme shall take into consideration the promotional requirements and aspirations of employees.

ARTICLE 9:PROMOTION

a)Upon availability of a vacancy, the Company shall first advertise the same internally.

b)Promotion shall be based on merit and shall be open to all employees of the Company.

c)The Human Resources Officer shall inform the concerned employee about the promotion in writing, stating the effective date.

ARTICLE 10: PERFORMANCE MANAGEMENT PROGRAMME (PMP)

a) The Company shall institute and maintain a Performance Management Programme (PMP) that shall, among other objectives, aim at improving the employee’s performance and contribution to the Company.

b) At the beginning of each year, the Company Objectives shall be cascaded through the organisation and by end of Q1, all employees will have discussed and agreed their objectives for the year with their Supervisor. These objectives will be put on a Staff Appraisal Form

c) At the end of the year, the Supervisor will complete the employee’s Staff Appraisal Form and will hold a meeting with the employee where the Assessment will be discussed and the employee will be given the opportunity to comment and record in writing on the Appraisal form their views on the appraisal. The appraisal shall be used to determine the employees Annual Bonus and, if appropriate, any merit increase

ARTICLE 11: GENERAL INCREASE

a)All Employees shall receive an annual general increase within their salary scales unless stopped for disciplinary action. Any such action taken shall be conveyed in writing to the concerned employee. The annual General Increase will be determined by the Company undertaking a market review of the labour rates prevailing in the local industry.

b)Merit salary awards for exemplary performance may be granted to an employee at the discretion of the Company and employee shall be informed of any such merit awards in writing.

ARTICLE 12: ANNUAL BONUS

Subject to the satisfactory financial performance of the Company, the Company will set aside a sum to be distributed to employees at the end of the year as an Annual Bonus. This bonus shall be distributed on the basis of the PMP Appraisal rating, the employee’s individual performance and contribution to the Company.

ARTICLE 13 HOURS AND PLACE OF WORK

a) Administration and Finance Staff

i.) Administration and Finance are required to work a 5 day 40 hour week

b) Operations Staff

i.) Operations Staff are required to work a 5 day 48 hour week

ii.) Fresh Handling operates in the Aviation transportation industry where the ability to provide continuous 24 hour coverage, 365 days per year may be required in response to operational needs.

iii.) Due to the size of the Company and the varying nature of the business operations cycle, the Company and Union recognises that establishing a regular 24 hour shift pattern is neither efficient nor cost effective.

iv.) To meet the demands of the business, a flexible shift pattern has been designed as follows:

v.) All Operations staff are rotated through the Early Shift and the Afternoon shift on a rolling cycle.

a) The Early Shift is from 8am – 5pm with one hour off for lunch

b) The Afternoon shift is from 2pm to the time the last plane is loaded and has departed, with one hour off for supper.

vi.) Due to the variation in the plane departures, it is not possible to fix a standard finish time to the Afternoon Shift. However, the Shift Roster will ensure:

a) Shift workers, will be rostered according to the operational requirements of the Company and shall enjoy two days’ rest per week.

b) The standard working hours shall not, on average, be more than ten (10) hours per day or forty eight (48) hours per week spread over a 3 week cycle.

c) No employee will work more than fifty six (56) hours in any one week

ARTICLE 14: OVERTIME AND PAYMENTS

a)Hours of work shall be as set out in article 13 of this Agreement.

b)Overtime work is a practice that should be discouraged. However, where an employee works more than an average of 48 hours per week spread over a 3 week cycle, overtime payment will be 50% on top of the basic hourly rate.

ARTICLE 15: RATES OF PAY/SALARY SCALES

Each employee shall receive the rate of pay corresponding to the salary scale of his/her grade as designated by the Company and the salary scales shall be amended from time to time. (See Appendix A)

ARTICLE 16: LEAVE GENERAL

a)Leave is authorised absence from duty and shall be taken by all staff whenever due. Leave may be classified as: Annual, Sick, Maternity, Paternity, Compassionate and Unpaid.

b)All employees of the Company are entitled to leave.

c)Management shall, in consultation with the employees, schedule annual leave and display the schedule for information of employees.

ARTICLE 17: ANNUAL LEAVE

a)Every employee of the Company shall be entitled to a normal annual leave of 21 working days per year.

b)No employee shall be allowed to accumulate leave beyond the year of entitlement, except where such accumulation is within the limits of the laws of the country.

ARTICLE 18: ANNUAL LEAVE ALLOWANCE

An employee proceeding on annual leave shall be entitled to payment of an amount of money equal to 50% of his/her monthly salary in addition to the normal salary payments for that month.

ARTICLE 19: SICK LEAVE

An employee who, on account of sickness is unable to report on duty for continuous period shall be entitled to the following:

i.) Full salary for the first two (2) months.

ii.) Half salary for the next month following (i) above.

iii.) Following (ii) above, Management may consider terminating the employee’s services with the Company on medical grounds after consulting the Company Doctor, an Employee’s nominated Doctor and in the case of any dispute, a Government appointed Doctor

ARTICLE 20: SICKNESS WHILE ON LEAVE

a) Sickness contracted during leave, will not affect the leave but at the expiry of the leave the days of absence necessitated by the sickness if certified by the Company Doctor will be treated as sick leave.

b) The employee shall be required to produce proof of the sickness while on Leave to the Company from an accredited Medical Practitioner

ARTICLE 21: MATERNITY LEAVE

a) Any female employee of the Company shall be entitled to sixty (60) working days with full pay as maternity leave. The leave may be taken fifteen (15) days prior to the expected date of delivery or any such date as prescribed by the doctor.

b) Should the employee require her due Annual leave after the expiry of maternity leave, she shall be allowed to take it.

c) Should the employee require additional leave after (a) and (b) above, Management may consider and grant such leave as leave without pay.

ARTICLE 22: PATERNITY LEAVE

A male employee will be entitled to five (5) working days as paternity leave when his registered spouse delivers or develops complications during her confinement.

ARTICLE 23: LEAVE FOR SPECIAL REASONS

Leave with full pay shall be granted under special circumstances as follows:

a) Death of a member of immediate family (spouse or child) – five (5) working days.

b) Death of close relative (father, mother, sister, brother, father/mother-in-law) – three (3) working days

c) Marriage – five (5) working days

d) Other reasons – the authorised days to be offset from annual leave

ARTICLE 24: ABSENCE WITHOUT OFFICIAL LEAVE (AWOL)

a) A Company employee shall not absent himself/herself from duty without prior permission or just cause. Should the employee do so, for a continuous period of seven (7) days he/she shall be regarded as having forfeited his/her employment on the grounds of abscondment with effect from the first day of such absence.

b) Where an employee fails to report on duty after leave or off-duty the seven (7) days of absence referred to above shall commence from the date he/she was supposed to report for duty.

ARTICLE 25: GAZETTED PUBLIC HOLIDAYS

a)Gazetted Public Holidays shall be with full pay at the expense of the employer.

b)In the event of a permanent employee being required to work on a public holiday, the Company shall pay him/her a premium of 50% on top of the normal hourly rate for the time worked. At a convenient time the employee will also take a day off in-lieu.

c)The following public holidays, plus any other days as may from time to time be declared as so by Government shall be observed by the Company:

• The New Year’s day...................1st January

•NRM Victory day ...........................26th January

•Women’s day.................................. 8th March

•Idd el Adhuha.................................(As shall be gazetted)

•Idd el Fitr.......................................(As shall be gazetted)

•Labour day .......................................1st May

•Uganda Martyrs’ day...........................3rd June

•Heroes’ day......................................... 9th June

•Good Friday.............................................. **

• Easter Sunday................................................**

•Easter Monday.............................................. **

•Independence day .....................................9th October

•Christmas day.............................................. 25th December

•Boxing day ...................................................26th December

**Dates change every year.

ARTICLE 26: DISCIPLINARY POLICY AND PROCEDURE

DISCIPLINARY POLICY

a)Both Management and Union believe that as adults, we should self-regulate our behaviour and actions.

b)In order to harmonize our actions however, both Management and the Union have put in place some basic guidelines on what we can do and what we cannot do while at work. The main theme of these guidelines is the assumption that as rational human beings, we are capable of differentiating between individual concerns and organizational interests.

c)The immediate supervisor of an employee represents management at that level. The supervisor therefore has the primary duty of developing, assisting, coaching, counselling and if necessary, disciplining the employee.

d)Notwithstanding the foregoing generalities, the Company shall be guided by the following principles in the application of disciplinary measures and proceedings:-

i.) Disciplinary action to be taken promptly

The objective of a disciplinary action is to bring about change in the undesirable behaviour. It therefore follows that action on the part of the supervisors and the Disciplinary Procedure must be taken promptly and in line with the alleged offence.

ii). Formal Disciplinary Hearings

Charges for any offence that warrants a disciplinary action other than a verbal reprimand must be presented at a Formal Disciplinary Hearing. The employee must be told what alleged offence he/she has committed and invited to attend a Formal Disciplinary Hearing, together with his/her TU representative. The HR Officer must be in attendance at the Disciplinary Hearing when the employee is given the opportunity to respond to the charge. Disciplinary action will only be imposed in respect of an offence for which an employee has been charged and found guilty.

iii.) Penalties to be Progressive

Penalties should be commensurate to the seriousness of the offence. However, for minor offences, penalties imposed for disciplinary offences should normally be progressive and severe penalties will not normally be imposed unless the employee concerned has previously received a written warning letter concerning his / her conduct. This shall however not apply to any proven instances of Gross Misconduct

iv.) Right to appeal

Every employee shall have the right to appeal to a higher level of management any disciplinary charges and to appeal to against any disciplinary decision and penalty imposed upon him/her.

DISCIPLINARY PROCEDURE

Disciplinary Offences

Disciplinary Offences can be broadly categorised into Standard Offences and Gross Misconduct.

a) Standard Offence

i.) Offences such as; short term absence without permission; late coming; refusal to follow a Supervisors Instruction; failure to carry out standard operating procedures, horseplay, sexual harassment, offensive behaviour etc.

ii.) A standard offence would ordinarily attract a Recorded Oral Warning, Written Warning or Suspension without Pay, depending on the severity of the offence. However, under the Progressive Disciplinary policy, repeated offences will attract more severe penalties up to and including termination. Up to a maximum of three warnings can be issued and thereafter termination would be contemplated.

b) Gross Misconduct

i.) An employee will not be dismissed for a first offence unless that offence amounts to gross misconduct. Instances of gross misconduct are:

Wilful destruction or theft of property belonging to the Company or another employee; assault; being under the influence of drink or drugs; wilfully endangering others; taking part in unauthorised activities when he/she should have been working; falsification of records or documents upon which salary or other payments are calculated and prolonged unauthorised absence. This list is not exhaustive however and other serious departures from acceptable behaviour (including breach of important rules and instructions) may amount to gross misconduct in the circumstances of the case.

ii.) Disciplinary dismissals whether for one act or an accumulation, will be without notice or payment in lieu. If an incident has occurred which might warrant dismissal, on its own or when taken with previous offences, an employee may be suspended on half-pay until a decision can be made.

iii.) If a matter involving dishonesty or misconduct is to be the subject of a prosecution in a Court of Law, the Company may await the outcome before deciding what disciplinary action is appropriate. But the Company may take disciplinary action before Court proceedings are opened or completed if there is, in the Company's view, sufficient information about the circumstances of the particular case to arrive at such a decision.

iv.) Conviction in a Court of Law for an offence not directly connected with employment may lead to an employee being dismissed if the matter affects his/her suitability as an employee of the Company. In any case where a Court conviction has been a factor in the Company's decision, the Company will, if a subsequent judicial appeal is successful, and the employee desires, reconsider the case with a view to re-engagement or reinstatement.

c) Disciplinary Actions

Where an employee commits an offence, which is not serious enough to warrant summary dismissal from the Company, the following disciplinary actions may be applied, depending on the nature of the offence:-

i.) ROW – Recorded Oral Warning – stays on the record for 12 months Should an identical or similar minor offence be committed by the same employee within 12 months then a 1st Written Warning may be issued

ii.) Ist Written Warning – stays on the record for 24 months Should an identical or similar offence be committed by the same employee within 24 months then a 2nd Written Warning may be issued.

iii.).2nd Written Warning – stays on the record for 24 months Should an identical or similar offence be committed by the same employee within 24 months then a Final Written Warning may be issued

iv.) Final Written Warning - Should the employee commit an identical or similar offence the third time following the 2nd warning, the Human Resources Officer shall issue a final warning letter with a copy to the Union. After the final warning letter has been issued to the employee and he/she commits another offence his/her services with the Company may be terminated by the Company.

v.)Suspension Without Pay – If an employee commits an offence that is considered very serious, but does not amount to gross misconduct, suspension without pay my be given for 1, 3 or 5 days

ARTICLE 27: SUSPENSION FROM DUTY

a) The Company may suspend any employee from duty on suspecting him/her to have committed a serious offence that requires investigation.

b) Suspension shall be in writing, specifying the cause.

c) During suspension period an employee shall be paid half of his/her salary. After completion of the investigations by the Company, if appropriate, the Disciplinary Procedure as contained in Article 26 shall be followed.

d) Whenever an employee on suspension is re-instated, his/her dues withheld because of suspension shall be paid to him/her unless stopped as a result of disciplinary action.

e)Should it become necessary to terminate the services of an employee who has been on suspension, the effective date of termination shall be the date when the suspension started.

f) No employee shall suffer suspension for more than thirty (30) days. Should the Company fail to come with its final findings and action within two months of suspension or fail to have any good reason for the delay the employee shall immediately be re-instated to his / her duties without loss of any benefit.

ARTICLE 28: TERMINATION OF SERVICE

a) Either party may terminate the contract of employment between an employee on permanent terms and the Company by giving the other party written notice of intention to terminate the contract in a manner specified hereunder or by payment of the equivalent in lieu of notice

i) Two weeks if the service has lasted less than twelve months.

ii) One month if the service has lasted at least one year but less than five years.

iii) Two months if the service has lasted at least five years but less than ten years.

iv)Three months if the service has lasted at least ten years.

b) Following reasons shall, inter-alia constitute grounds for termination of services:-

i.) Inefficiency in performance of duties.

ii.) Breach of Company Rules and Regulations.

iii.) Gross Misconduct (Summary Dismissal)

iv.) Abscondment (Summary Dismissal)

v.) Failure to obtain the necessary qualifications (after being sponsored by the Company), which are required for proper performance of the job.

vi.) Voluntary resignation.

vii.) Medical unfitness.

c) Upon termination of services the employee shall be entitled to the following Terminal Benefits:

i) Salary and due to allowances up to the date of termination.

ii) Annual leave prorated up to the date of termination. Such payment shall include all allowances.

iii) Terminal Benefits at a rate of a half months salary per each completed year of service.

iv) In addition, in case of termination on medical grounds, any additional provisions under Article 32 Retirement will be applicable.

ARTICLE 29: SUMMARY DISMISSAL

a) The Company may summarily dismiss from its services an employee who shall be guilty of Gross Misconduct as defined in Article 26.

b) Upon summary dismissal, the employee shall lose all terminal benefits payable by the Company except the following:

i.) Salary and allowances due up to the date of dismissal.

ii.) Annual leave prorated up to the date of dismissal. Such payment shall include all allowances.

iii.) Any long service awards earned but not yet received by the employee.

ARTICLE 30: GRIEVANCE PROCEDURE

Any employee, or group of employees, may raise an individual or collective grievance with the Company by following the procedure below. However, if the issue is already covered under the Collective Bargaining Agreement, the grievance will be rejected, any such cases will be notified to the Union.

a) Stage 1 - An Employee who wishes to raise an issue in which he is directly concerned shall first discuss it with this immediate Supervisor.

b) Stage 2 - If the issue is not settled to the satisfaction of the Employee he may refer it to his Union Representative, who will discuss it with the Employee's Section Head If the issue is not settled at Stage 2, the Section Head will complete a Procedure Report Form and submit it to HR Officer and copy the Union Representative.

c) Stage 3 - If there is no agreement the Employee and Union Representative may then raise the issue with the General Manager .

d) Stage 4 - If the matter is not resolved after Stage 3, the Union Representative may refer it to the Joint Negotiating Committee (JNC)

.

e) Stage 5 - If the matter is not resolved after Stage 4, the Union Representative may refer the matter to the General Secretary of the Trade Union, who may, if necessary, request a meeting with the appropriate Company Representatives. The local Union Representatives and the Employee(s) concerned will be invited to attend any such meeting between the General Secretary and the Company.

f) Unless otherwise agreed between the parties the Procedure must be completed within ten working days of its being formally recorded on the Procedure Report Form.

g) If the matter is not resolved after Stage 5, the Procedure will be considered exhausted and the General Secretary may take up the matter with the Trade Disputes (Arbitration and Settlement) Act 2006 and/or any other relevant statutes in force at the time.

ARTICLE 31: STANDARDS OF CORPORATE CONDUCT

Fresh Handling Ltd of Uganda is a responsible corporate citizen and, to assure that integrity in business practices is never compromised, has established Standards of Business Conduct. The Company expects employees to act in strict compliance with the letter and spirit of the law and of the Company's policy. The Company's commitment to integrity has real substance only when its employees have their personal commitment to integrity. Corporate integrity always begins and ends with the individual. Employees should not only avoid un-ethical business practices but also should avoid conduct that might be misinterpreted by others or provides any basis for question as to its propriety. Employees may not engage in any act that could possibly be construed as giving or receiving a bribe that involves a conflict of interest.

The policy covers giving or receiving gifts or favours, social amenities, reporting of certain financial interests, and other relationship matters. If in any doubt about any of the matters covered in this document, please seek advice from your HR Department, a Board Member or the General Manager.

A. Giving and Receiving of Gifts or Favours

• No employee may solicit, either directly or in-directly any gift or favour from an organisation with which the Company does Business or that seeks to do business with the Company.

• No employee may accept or give a gift that exceeds a maximum value of UGX 20,000/=.

• Gifts given or received should bear the giving Company's name, have publicity value and be for office use (pens, diaries etc.)

• Gifts received with a value exceeding the established maximums should be returned or submitted to Human Resources for appropriate disposal.

B. Social Amenities

Business-connected social contacts can be in the best interest of the Company when properly conducted on a limited basis. Examples include the acceptance or giving of refreshments or meals before or after a business meeting. Employees should make every effort to ensure that there is not the slightest reason for a third party to view the relationship as improper. Prior approval of the General Manager is required.

C. Reporting of Certain Financial Interests

The Company has no desire to interfere with the personal financial affairs of its employees unless an outside interest concerns an organisation with which the Company does business. No employee may, either directly or indirectly, have a financial interest in an organisation with which the Company does Business without a special exception. Each employee shall report, for information purposes, the details of any financial interest held either directly or indirectly by any employee or by any family member in an organisation with which the Company does business.

Unauthorised disclosure of confidential information can damage the Company's competitiveness and reputation. Therefore, no employee may disclose confidential information to any outside organisation or individual prior to receiving proper authorisation. This includes, for example information about a supplier quote, specification, future business plans, pricing, financial data etc.

No employee may perform work or render service for an Organisation with which the Company does business or that seeks to do business with the Company without prior written approval of the Board of Directors.

Administration

All employees must sign a Standards Of Business Conduct declaration form indicating that ;

1.They have read, understood and agreed to the Company's Standards of Business Conduct Policy and;

2. Neither they, nor any member of their family, have any financial interest in an organisation with which the Company does business.

Any such financial interests must be reported and will be reviewed by the Board of Directors for appropriateness. Any employee who knowingly violates this policy shall be subject to disciplinary action, including possible dismissal.

The signed form must be returned to the HR Officer and this will be placed in your personal dossier. It is Company policy to regularly ask employees to reaffirm their acceptance of the Company's Standards of Business Conduct.

ARTICLE 32: RETIREMENT

a) Retirement shall be considered under the following:

i.) Voluntary retirement after a minimum service of twenty (20) years.

ii.) Early retirement with benefits will be granted at the discretion of Management. Payments of benefits in this case may be deferred/delayed by six (6) months.

iii.) Retirement on medical grounds.

iv.) Compulsory retirement after an employee has attained the statutory age of 60 years.

b) Upon retirement for any of the above, the employee shall be entitled to the following benefits:

i.) Three months written advance notice or salary and allowances in-lieu of notice of retirement.

ii.) Annual leave prorated up to the date of retirement.

iii.) Salary and allowances due up to the date of retirement.

iv.) Terminal Benefits at a rate of a half months salary per each completed year of service.

v.) Any outstanding long service awards in accordance with Article 33

ARTICLE 33: LONG SERVICE AWARDS

a) In order to show appreciation for services rendered by an employee and as an incentive to employees to work diligently so as to serve the Company for a long time, the Company shall make the following Long Service Awards:

i) After five (5) years of service the employee will receive a bicycle or its equivalent in value at that time.

ii) After ten (10) years of service the employee shall receive forty (40) pieces of three (3)-metre pre-painted corrugated iron sheets of gauge twenty eight (28) and one (1) ton of cement or their equivalent in value at the time.

iii) In addition to the various awards mentioned above the Company shall, at each of the stages, issue the employee with a Certificate of Long Service stating the period served.

ARTICLE 34: TERMINATION BY DEATH & DEATH OF DEPENDANTS

a) When an employee dies while in the service of the Company, the Company shall provide UGX 500,000/= as contribution to funeral and burial expenses. Thereafter all terms of Article 32 will apply.

b) In the event of death of a registered spouse shall provide the family with a sum of UGX 500,000/=.

c) In the event of death of a registered child the company shall provide the family with a sum of UGX 400,000/=

d) In the event of death of a parent the company shall provide the family with a sum of UGX 300,000/=.

ARTICLE 35: REDUNDANCY

a) For the purpose of this article “Redundancy” shall mean termination of employment of an employee or a group of employees by the Company due to operational or financial problems beyond the Company’s control, but including restructuring and reorganisation. Such a step shall normally come as a last resort to be taken by the Company only after having failed to avert such problems and after consultation with the Union.

b) Selection for redundancy will in the main be determined by seniority, but will include an assessment of the relative skills, merit and ability of employees.

c) Should it become necessary for the Company to select employees for redundancy, no employee shall be at a disadvantage because of his/her membership to the Union.

d) Should there be need to fill any vacancy after redundancy, priority in recruitment shall be given to employees who were affected by the redundancy.

e) Any employee being declared redundant shall be paid as follows:

i) Three months written advance notice or salary and allowances in-lieu of notice of redundancy.

ii) Annual leave prorated up to the date of redundancy.

iii) Salary and allowances due up to the date of redundancy.

vi.) Terminal Benefits at a rate of a half months salary per each completed year of service.

i) Any outstanding long service awards in accordance with Article 33.

ARTICLE 36: GROUP ACCIDENT INSURANCE

The Company shall provide insurance cover against any injury to all its employees while at work or on Company Business

ARTICLE 37: RIGHT TO STOP AND SEARCH

a)Both parties recognise the importance and right of security personnel of the Company to carry out the “Stop And Search” practice.

b)However, the act of carrying out this practice should be done in the most humane and professional manner possible so as to avoid causing embarrassment to the person being searched.

ARTICLE 38: UNIFORM AND PROTECTIVE WEAR

a) The Company shall provide uniforms and/or necessary protective wear/gear to all employees whose duties require their use in line with the uniform policy.

b) The number, type and life of uniform and protective wear/gear shall be considered according to requirements. Any such items issued shall remain the property of the Company as provided for under uniform policy.

c) Employees issued with Company uniforms and/or protective wear/gear shall be obliged to respect and keep them in good order and shall ensure that they are not abused in any way.

ARTICLE 39: MEDICAL BENEFITS

a) The Company shall provide and maintain free of charge to the employee, one (1) registered spouse and one (1) registered dependant a designated clinic to attend for medical problems. Registration of employee dependants shall be reviewed on an annual basis or updated on an as need basis

b) In case the patient’s problems cannot be effectively handled by the Company clinic, the patient shall be referred to a hospital or other medical centre at the Company’s expense by the Company Doctor only.

c) In case hospitalisation becomes necessary the Company shall, in consultation with the Company Doctors, make arrangements with appropriate hospitals.

d) The Company shall not meet bills related to accommodation in hospitals privately arranged by the employee.

e) The Company’s responsibility for medical attention and treatment in case of continuous sickness of an employee shall cover the period of sick leave provided for under Article 19.

f) The Company shall refund costs of delivery up to a maximum of 750,000/= of the costs incurred by a female or male employee in connection with child delivery.

ARTICLE 40: HEALTH AND SAFETY COMMITTEE

a)A Health and Safety Committee consisting of not more than five (5) members drawn from Management and the Union shall be formed to deal with matters concerning health and safety at work the Union shall be represented by three (3) members nominated by the Union.

b)Among other things the Committee shall be charged with the responsibility of drawing up guidelines on Occupational Health of employees and safety at workplace as may be provided for in the Factories Act and other relevant Government or International regulations/statutes.

ARTICLE 41: HIV/AIDS AND THE WORKPLACE

i) Realising the negative effects HIV/AIDS has caused to humanity world over and to Uganda, both the Company and the Union agree to establish and maintain a work place HIV/AIDS policy to protect and safe guard employees against the scourge and its related stigma.

ii) The policy shall:

a) Establish a non-discriminatory environment in which employees living with HIV/AIDS are able to be open about their status without fear of stigma or rejection.

b) Promote the understanding that HIV and Aids shall be treated like any life threatening condition and that employees living with HIV/AIDS have the same rights and obligations.

c) Ensure that where cases of prejudice and victimization occur due to one’s health status, management shall take disciplinary action against those concerned.

d) Ensure that no applicant for employment shall be discriminated against in the selection process on account of his/her HIV/AIDS status

e) No employee shall be dismissed because he/she has been identified as an AIDS victim.

f) No employee shall be removed from their normal place of work or from their normal duties, or isolated because on account of their HIV/AIDS status.

g) Employees affected by HIV/AIDS may under exceptional circumstances, and only on the advice of a medical practitioner be retired on medical grounds or transferred to an alternative section when and if the employee concerned has been identified as a risk to others in the work place or where his/her health interests would be better in an alternative function.

h) Put in place measures including education, training, and awareness creation and counselling to ensure that transmission of HIV/AIDS at the workplace is minimized or avoided.

iii) Employees shall be counselled and notified that no HIV/AIDS victim shall be treated unfairly with regard to:

a) Recruitment procedures, advertising and selection and appointment criteria.

b) Remuneration, employment benefits and terms and conditions of employment.

c) Training and development

d) Performance evaluation systems, promotion, transfer and demotion.

e) Job assignments

f) Disciplinary measures.

iv) HIV/AIDS testing and confidentiality

a) The Company shall neither require any employee to be tested for HIV/AIDS nor demand that medical examination be taken on any person to ascertain the HIV/AIDS status before employment.

b)Where testing is done at the initiative of the employee and the employee contacts management for assistance, the company shall engage the services of an AIDS resource centre such as TASO, which shall provide the necessary medical care at the company’s cost.

c)All employees living with HIV or AIDS shall have the right to privacy.

d) An employee, who may discover that he/she is HIV+, is under no obligation to inform management.

e) An employee with symptoms of HIV or full-blown AIDS may be advised to seek the services of a Counsellor employed by the Company for advice on the ‘wellness programme’ entailing diet and life style, which is designed to bolster the health and longevity of employees suffering from different ailments.

f) Any breach of confidentiality in regard to HIV/AIDS or any other health status shall be followed by an immediate dismissal and possible prosecution of the officer involved.

ARTICLE 42: MEALS PROVISION

a) The Company shall provide meals to employees while on Company duty.

b) The meals include break-tea/coffee, lunch or supper.

c) These meals will be provided at no cost to the employee.

ARTICLE 43: STAFF TRANSPORT

The Company shall provide transport to all its employees reporting for and off duty and while on official duties within the vicinity of Entebbe Municipality. The furthest pick up/drop off point for transport to and from duty will be the Mpala taxi stage on the Kampala to Entebbe highway.

ARTICLE 44: STAND-IN ALLOWANCE

a) Whenever a post falls temporarily vacant for more than 2 weeks, a competent employee may be asked to stand-in.

b) If the position grade is of a higher grade than the individual standing-in, a stand-in allowance will be paid. If the position is one grade higher, the allowance will be 10% of monthly salary, if 2 grades higher, the allowance will be 20% of monthly salary.

c) If the vacancy still exists beyond the six months period, the employee who will have acted for that period will be appraised and confirmed in the position or reverted to his/her former position if found unsuitable.

ARTICLE 45: WARM CLOTHING ALLOWANCE

An employee proceeding on duty/training to a country where temperate and cold climatic conditions prevail shall be given a warm clothing allowance of three hundred US dollars (US $ 300) provided that the allowance shall not have been given to the employee in the preceding two years.

ARTICLE 46: SALARY ADVANCES

Salary advances shall be granted at the discretion of management in the event of unplanned or emergency circumstances. The advance shall not exceed one month’s gross salary and shall be recovered in a maximum of six equal instalments. No advance will be granted while a previous one is not yet fully recovered.

ARTCLE 47: RETENTION OF PARTIALLY INCAPACITATED EMPLOYEES

If an employee becomes partially incapacitated arising out of an occupational hazard/accident the Company shall retain the employee in service provided the advice of the Company Doctor is in conformity with such a decision. The employee will have to perform as any other staff in the new job.

ARTICLE 48: CHANGE/TRANSFER OF COMPANY/UNION DESIGNATION

a)In the event of the Union re-registering with the Registrar of Trade Unions under another name or transfers its members to another trade union during the term of this agreement, the agreement shall continue to apply and remain binding on the successor workers organisation.

b)In the event of the Company re-registering under another name or transferring its business or part of it to another employer during the term of the Agreement, the agreement shall continue to apply and remain binding on the successor employer. The existing employee shall however retain the option to continue with a new employer or to be retired on the existing terms. Thereafter, the employee shall be free to enter a new contract of employment with the incoming employer.

ARTICLE 49: COMPANY FACILITIES

a) The Company shall be responsible for providing equipment and facilities necessary for the proper conduct of its business.

b) It is agreed that every worker shall be accountable for the tools/facilities accorded to him/her by the Company that are needed for the proper conduct of work.

ARTICLE 50: NEW TECHNOLOGY

a)Management shall provide all the necessary literature for information on the operation and safety features of any new technology.

b)Management and Union shall ensure that any new technology is introduced for the sole purpose of improving on the quality and productivity of the Company.

c)Any employees who may be affected by the introduction of new machines will be retrained and deployed in other departments if fit for a new job.

ARTICLE 51: CERTIFICATE OF SERVICE

When an employee retires or leaves the Company services either on his/her own accord or his/her services being terminated under the provisions of this agreement he/she shall be issued with a certificate of service.

ARTICLE 52: RECREATION

The Company shall with time develop recreation activities and sports for its employees.

ARTICLE 53 - SEXUAL HARRASMENT POLICY

a) The Company and the Union agree to establish and always maintain a zero tolerance policy against sexual harassment in the Company.

b) A supervisor, manager, union representative or an employee who seeks for sexual intercourse, contact or any other form of sexual activity shall have committed an offence of sexual harassment if his/her actions contains any or all of the following ;

i) Implied or express promise of preferential treatment in employment

ii) Implied or express threat of detrimental treatment in employment.

iii) Use of language written or spoken of a sexual nature

iv) Uses visual material of a sexual nature or demonstrates behaviour of a sexual nature.

c)Any manager, supervisor, union representative or an employee who sexually harasses any company employee shall upon proof be dealt with in accordance with the Disciplinary Procedure. Sexual Harrassment is considered a Serious breach of discipline.

d)An employee who feels sexually harassed shall have the right to report the matter and have it addressed through the grievance procedure or the Disciplinary Procedure established in this agreement.

ARTICLE 54 - GENDER AND EQUALITY

a)Realising the important roles that both the male and female gender play in sustainable development, and considering that women have severally been marginalized as a result of the established customs and practices, both the company and the union agree to establish and maintain a gender and equality policy to ensure proper balance of these roles.

b)Both the union and the company shall establish a joint gender and equality sub-committee of the JNC, composed of two representatives each and chaired by a neutered technical staff agreeable to both parties to study gender and equality issues and to inform/advise the JNC accordingly.

ARTICLE 55: GENERAL

a) The Company and the Union agree to adhere to and always make reference to this agreement when handling employee issues.

b) The Company and the Union desire that every employee of the Company is familiar with the provisions of this agreement and his/her rights and duties provided by the agreement.

c) The Company shall provide a copy of the agreement to each employee.

ARTICLE 56: MODIFICATION AND AMENDMENT

a) This Agreement that first came into force on the 18th day of April 2011 and shall remain in force until again amended.

b) Either party wishing to amend or modify the agreement shall give the other a one-month written notice detailing the proposed amendment/modification. In the event of failure to reach mutual agreement to the proposed amendment/modification of the agreement, either party may refer the matter to the Ministry in charge of labour matters for further action.

c) Notwithstanding the foregoing provisions, the agreement shall remain in force until otherwise agreed upon by both parties, and shall not be affected by actions of any third or other party.

IN WITNESS HEREOF the representative of the parties hereto have set their signatures and seals this 18th day of April 2011

SIGNED FOR AND ON BEHALF OF

FRESH HANDLING LTD

NAME.………………………………………………………………

TITLE.………………………………………………………………

IN THE PRESENCE OF

NAME.………………………………………………………………

TITLE.………………………………………………………………

SIGNED FOR AND ON BEHALF OF

THE UGANDA HORTICULTURAL AND ALLIED WORKERS UNION

NAME.………………………………………………………………

TITLE.………………………………………………………………

IN THE PRESENCE OF

NAME.………………………………………………………………

TITLE.………………………………………………………………

APPENDIX "A": FHL Job Grades and salay scales

Effective 1 january 2011

Grade Job Titles Salary Ranges Midpoint % Progression
Min Mid Max
1 Cargo Handlers

Trainees

Cleaners

200,000 250,000 300,000
2 Technicians

Security Wardens

Clerks

Drivers

250,000 325,000 400,000 30%
3 Ramp Drivers

Assistant Supervisors

Mechanics

300,000 425,000 550,000 31%
4 Quality Controllers

Cargo Handling Supvrs

Security Officer

350,000 500,000 650,000 18%
5 Section Heads;Clearing

Quality , Maintenance

400,000 650,000 900,000 30%
6 IT Officer

Accounts Assistants

Operations Officer

500,000 750,000 1000,000 15%
7 Assistant Accountants 700,000 950,000 1,200,000 26%
8 Accountant 900,000 1,200,000 1,500,000 27%
9 Booking Coordinator

Human Resource Officer

1,200,000 1,500,000 1,800,000 25%

FRESH HANDLING LTD - 2011

Start date: → 2011-04-18
End date: → Not specified
Name industry: → Agriculture, forestry, fishing
Name industry: → Growing of crops, market gardening, horticulture
Public/private sector: → In the private sector
Concluded by:
Name company: → FRESH HANDLING LTD
Names trade unions: → Uganda Horticultural and Allied Workers′ Union

TRAINING

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

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 42 %
Maximum days for paid sickness leave: → 90 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: → 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
Paternity paid leave: → 5 days

GENDER EQUALITY ISSUES

Equal pay for work of equal value: → No
Discrimination at work clauses: → Yes
Equal opportunities for promotion for women: → No
Equal opportunities for training and retraining for women: → No
Gender equality trade union officer at the workplace: → No
Clauses on sexual harassment at work: → Yes
Clauses on violence at work: → Yes
Special leave for workers subjected to domestic or intimate partner violence: → No
Support for women workers with disabilities: → No
Gender equality monitoring: → 

EMPLOYMENT CONTRACTS

Trial period duration: → 365 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 day: → 10.0
Working hours per week: → 48.0
Paid annual leave: → 21.0 days
Paid annual leave: → 4.0 weeks
Paid bank holidays: → Christmas Day (December 25), Togo's Day of the Martyrs / Bolivia'a Andean New Year (21st June), Easter Monday, Army Day / Feast of the Sacred Heart/ St. Peter & Paul’s Day (30th June), Chile Independence Day (18th September), Good Friday
Provisions on flexible work arrangements: → 

WAGES

Wages determined by means of pay scales: → Yes
Wages specified according to skill level: → No
Wages specified according to job title: → Yes
Provision that minimum wages set by the government have to be respected: → 
Adjustment for rising costs of living: → 1

Payment for standby work

Payment for standby work: → 10 % of basic wage
Payment for standby work Sundays only: → No
Payment for standby work all days per week: → Yes

Extra payment for annual leave

Extra payment for annual leave: → 50.0 % of basic wage

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Allowance for commuting work

Allowance for seniority

Allowance for seniority after: → 5 years of service

Meal vouchers

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