FOR 2016 -2018
MEMORANDUM OF COLLECTIVE AGREEMENT BETWEEN FIRST ALLIANCE BANK (Z) LIMITED (Hereinafter referred to as the “BANK”) AND ZAMBIA UNION OF FINANCIAL INSTITUTIONS AND ALLIED WORKERS (Hereinafter referred to as the “UNION”)
Representing employees eligible for representation in terms of clause 2 (SCOPE OF THE AGREEMENT) of the MEMORANDUM OF COLLECTIVE RECOGNITION AGREEMENT signed between the two parties i.e. the bank and the union on 21st February, 2000.
Duration of this Collective Agreement shall be for a period of 2 years commencing on 1st June, 2016 provided that:
a) At any time after 9 months of commencement of this agreement, either party will give to the other, six weeks notice in writing of its desire for an agreement to continue in force for further period to be agreed upon, or of its intention to terminate.
b) In the event of emergency cases, both parties shall endeavor to meet as soon as possible but not later than 14 days of request to meet.
c) The term of this agreement shall be in accordance with the prevailing labour legislations.
d) The provisions of this Agreement shall be valid only so long as the Recognition Agreement between the Bank and the Union remains in force.
e) Pending the signing of the new Collective Agreement, the present Agreement shall continue in force.
Application for a change or Amendment
It is agreed if the Bank or Union consider that any part of this Agreement should be changed or amended and if it is also considered such a change is mutually beneficial to both the Union and the Bank provided it is clearly seen to be a valid reason to recommend such a change or amendment to this agreement, it should be undertaken in the following manner;
i) The Bank or Union will indicate by Letter its intention to discuss a change or amendment to the Collective Agreement.
ii)Such a letter indicated in (i) above will not be considered by the Bargaining Unit unless it is accompanied by written information/evidence or any other communication considered necessary to validate the intention to change or amend the Collective Agreement.
iii) The party requesting the change or amendment shall allow the other party fourteen (14) days, to consider the request. The Bargaining Unit shall after 14 days, but not later than 21 days after date of the original letter agree to meet to discuss the change.
1.0 REMUNERATION.
1.1.1 SALARY
The current total salary shall be increased basing on the revised salary structure as follows:-
Gross Salary shall be increased by K640 across the board which includes 35% of basic pay as housing allowance and 25% as medical allowance.
1.1.2 HOUSING ALLOWANCE
Housing Allowance shall be paid at rate of 35% of the employee's monthly basic salary.
2.0 MID MONTH PAY
2.1.1 Employees may on request draw 30% of their basic salary at mid month as salary advance without giving reasons.
2.1.2 The mid month pay shall not be effected earlier than 10th day of each month.
2.1.3 Repayment of such advance will be done in full by deducting from the employees immediate succeeding salary payment.
3.0 ALLOWANCES:
3.1.1 OUT OF TOWN DUTY ALLOWANCE
Where the Bank request a member of staff to stay away from place of domicile, either in course of duty or on training course, over night accommodation, including breakfast, will be provided by the Bank. In addition an evening meal allowance of K120/- per day may be claimed to cover out of pocket expenses.
3.1.2 Where an employee wishes to make his or her own accommodation arrangements, then the Bank will pay K275/- per night to cover accommodation and meals. In addition a further K 100/- per day may be claimed to cover out of pocket expenses.
3.1.3When an employee is attending a training course and lunch is not provided, an allowance of K100/- per day may be claimed.
3.2.0 ACTING ALLOWANCE
Acting allowance will be paid when an employee who has been informed in writing by the Bank carries out the duties of a higher graded employee for a period not less than 14 calendar days.
3.2.1 The acting allowance shall be 10% of the acting employee's monthly basic salary (current basic salary) or the difference between the entry point of basic salary of incumbent employee and the acting employee's monthly basic or whichever is higher salary. If the employee acts in the same position within six months for the second time the bank shall pay acting allowance for the period not less than seven calendar days.
3.2.2 Where the basic salary of the employee acting is already higher than the entry grade then a notch increase shall be paid as acting allowance.
3.3.3 UPSET/DISTURBANCE ALLOWANCE
When an employee is transferred at the Bank's request from one town to another, the equivalent of one month's gross salary that is basic plus housing allowance to be taxed shall be paid, plus five (5) working days special leave, to enable the employee find a suitable accommodation.
3.4.1 LUNCH ALLOWANCE
When an employee is requested by the Bank to work throughout lunch break, such an employee shall be paid K25 as lunch allowance
3.4.2 SUPPER ALLOWANCE
When an employee is requested by the Bank to work after 19:00 hours, such an employee shall be paid K25 as supper allowance.
3.4.3 When an employee is working after 19:00 hours he/she will be entitled to use a taxi when returning home and shall have the equivalent of the taxi fare refunded to him/her by the Bank on production of a receipt.
3.5.1 ANNUAL LEAVE ALLOWANCE:
An employee on annual leave shall be paid annual leave allowance at the rate of 100% of the Monthly basic salary.
3.5.2 Annual leave allowance will be paid on the last working day preceding the annual leave and only for employees going on leave for more than 7 days.
3.5.3 Leave allowance for leave accrued, including during a probation period will be paid to the estate of the employees in the event of death of the employee.
3.5.4 Monthly Transport allowance will be paid to all eligible employees at all levels at K235/- gross month end.
3.5.5 Monthly Education allowance will be paid to all unionized eligible employees as follows on pay roll (Gross Taxable):-
| Supervisors- | K260/- |
| Clerical- | K220/- |
| Non-Clerical- | K185/- |
3.5.6 Monthly lunch allowance will be paid at the month end to all eligible employees on pay roll at the rate of K 235/- gross taxable per month.
4. 0 FUNERAL GRANTS
4.1.1 In the event of the death of a direct employee, spouse, dependent child, dependent parent, the following funeral grants shall be paid by the Bank-
| Direct Employee | K 3,500 Inclusive of funeral service expenses. |
| Spouse | K2,200 |
| Dependent Child | K2,200 |
| Dependent Parent | K1,900 |
4.1.2 In addition, the Bank will pay for a standard coffin of a maximum of K2,500/- but such a payment will be made by the Bank direct to the supplier against production of a pro-forma invoice.
4.1.3 The Bank will not grant for a coffin in respect of death of a parent but in the case of the spouse working in an organization where a coffin is provided, the surviving spouse will be at liberty to choose either the Standard coffin from the Bank or the Coffin/ its entitlement from the employer of the deceased.
4.1.4 The Bank will not provide any transport or firewood.
5.0 LEAVE
5.1.1 Annual leave entitlement will be 24 working days per annum.
5.1.2Working days are classified as being Monday to Saturday with the exclusion of Sundays and Public Holidays.
5.2.1 Sick leave will be granted for 3 months on full pay and thereafter at half pay for a further 3 months at the discretion of the Bank.
5.2.2 If an employee continues on sick leave for more than three months, service of such an employee may be discharged by the Bank upon the recommendation of a registered physician.
5.2.3 Sick leave will only be granted upon production of a medical certificate issued by a qualified doctor at hospital or clinic. The Bank reserves the right to ask for medical certificate at any time from a physician appointed by the Bank.
5.3.1 Compassionate leave will be granted on death of a spouse or child at 10 calendar days and in respect of father, mother, blood brother, blood sister for 7 calendar days irrespective of the fact that the burial occurring within town of residence or outside town of residence.
5.3.2 The Bank may ask for documentary evidence to support the compassionate leave application.
5.3.3 Compassionate leave will not be granted if the employee is already on leave.
5.4.1 Female employees will be entitled to one day's absence from work each month for mother's day without having to produce a valid medical certificate. This is subject to the submission of a leave application form.
5.4.2 Mother's Day leave is not cumulative.
5.5.1 Study leave will be granted by the Bank to an employee studying for the Chartered Institute of Bankers (C.I.B) Examinations and approved Courses as listed below upon completion of the three levels of C.I.B Examinations. On Production of documentary evidence the Bank will allow three days leave per subject including the day of Examination to such an employee. The Bank would reimburse Examination Fees only upon successful completion of each of the three levels of C.I.B. Examination.
Study Leave will also be granted for the following courses:
1. Accounting
2. Human Resource Management
3. Business Administration
4. Secretarial
5. Business Law and Commerce
6. Information Technology
7. Customer Service
8. Prevention of Money Laundering and Frauds
9. Office Administration
10. Marketing
5.5.2 The period of study leave will be granted as near to the examinations as work pressure permit but may not necessarily be immediate prior to the examination date.
5.6.1 Special leave will be granted to an employee who is required to attend court proceedings as a state witness for the number of days such an employee is required.
5.6.2 A female employee shall be granted leave to nurse a sick child as per the Minimum Wages and Conditions of Service Act 276 Statutory instrument No.1 of 2011- Section 6. (2).
5.6.3 Female employees shall be allowed one hour to breast feed their babies once per day during working hours provided the baby is not older than six months.
5.7.1 Unpaid leave may be granted at the Bank's discretion to an employee who has served a continuous minimum period of 2 years.
5.7.2 The period of unpaid leave shall not exceed two years and is to be taken without payment of benefit of any kind.
5.8.1 Maternity leave will be granted to female employees for a maximum period of 120 days. Paid maternity leave will be subjected to the following conditions:
a) The employee should have at least completed (2) years continuous service.
b) There should be a gap of at least two years between one maternity leave and
another.
5.8.2 If an employee returning to work from maternity leave is found to be medically unfit to resume her duties, such an employee shall be treated in accordance with the rules governing sick leave.
5.8.3 Employees who do not qualify for paid maternity leave may be considered for unpaid maternity leave at the discretion of the Bank.
5.9.1 Unauthorized leave - If any employee takes leave without authority of the Bank, the Bank may terminate the employee's service if such an employee remains absent from work for 10 calendar days or more.
6.0 HOURS OF WORK.
6.1.1 The Bank agrees that working hours shall consist of 44 hours per week. This figure is arrived at by excluding one hour each day for Lunch, Monday to Friday inclusive.
6.1.2 Hours worked in excess of 8 hours per day Monday to Friday inclusive and 4 hours on Saturday shall be considered as overtime.
6.1.3 Overtime shall be one and half times the hourly rate of pay on ordinary days and double the hourly rate on Sunday and Public holidays.
6.1.4 Public holidays as stipulated and gazetted by the Government of the Republic of Zambia shall be observed as such by the Bank and its employees.
7.0 PROBATION
7.1.1 The probation period for an employee shall be for the period of six months although the Bank reserves the right to increase or decrease this period.
7.1.2 Termination of the service during the probation period can be effected by either party giving one day's notice.
8.0 WORKING CONDITIONS IN BANK PREMISES
8.1.1. The Bank will provide a suitable room to be used by the staff as lunch/rest room and will provide a refrigerator, stove, kettle, glasses, cups and cutlery etc.
8.1.2 The employees shall manage the affairs of the lunch/rest room based upon the co-operative principle.
8.2.1 Staff loans shall be sanctioned in appropriate cases by way of personal Loan to a maximum of 35% of annual gross Salary i.e. annual basic salary plus housing allowance. The staff loans shall attract interest of 18%P.A. up to K10,000.00; 20% P.A. above K10,000.00 & up to K50,000.00 and 22% P.A. above K 50,000.00 plus actual legal/registration charges. In case the interest rate changes, Management and Union shall discuss such changes in the rate of interest on staff loans. Management shall introduce annual loan review reforms to review them yearly in consultation with the Union.
8.3.1 The personal loan shall be repaid within 24 months subject to a condition that the net take home pay remains at least 50% of the net salary ( AFTER meeting statutory deductions like PAYE,NAPSA, Union Subscription etc.)
8.3.2 In exceptional cases, such as hospitalization of the employee or immediate family, the Bank at its discretion may consider extending Personal Loan by 15% on annual gross salary and the repayment period to 24 months.
8.3.3 If a staff member who is confirmed desires to purchase consumer durables in the form of hire purchase from recognized vendors of consumer durables the Bank will accept standing instructions in writing from the staff member requesting the Bank to pay directly to the hire purchase vendor the monthly payments by deducting the same from the employee's salary on the salary day. However the Bank will have no financial obligation to settle the monthly payments to hire purchase vendor in the event of the employee being dismissed or in the event of the employee deciding to leave the service of the Bank. The hire purchase agreement will be strictly between the employee and the vendor and the Bank will not get involved on any correspondence in this regard.
Only one standing instruction per employee for deducting of hire purchase payment will be permitted at any given point of time.
8.3.4 House loans shall be granted to employees at the discretion of the Bank, who have clocked 5 years of continuous service at 60 months of basic salary at Bank's Rate, subject to security and deductions not exceeding salary take home as per Labour Laws. Loan to be disbursed in phases in relation to progression in construction. However since the Bank cannot give loans to all employees, employees will be assisted to obtain loans from other Financial Institutions by giving consent letters for eligible employees.
8.4.1 Medical allowances shall be availed to employee of the Bank and their immediate families at the rate of 25% of the basic salary every month on pay roll pending the introduction of the medical scheme for all unionized employees on permanent and pensionable conditions of service. Once mutually agreed and the medical scheme is introduced, the medical allowance would cease.
8.4.2 If the employee leaves the service of the Bank he/she will not be entitled to even pro rata benefits
8.5.1 Annual bonus will be paid by the Bank to confirmed employees at the rate of one month's basic salary.
8.5.2 For the calculation of the Annual Bonus the basic salary will be deemed to be that ruling to an employee on 1st December annually.
8.5.3 An employee who leaves the Bank's services during the course of the year will neither be entitled to leave Allowance nor Annual Bonus nor Medical Allowances.
8.5.4 Annual Bonus shall be paid along with the salary for the month of December.
8.5.5 REDUNDANCY PACKAGE:
In case of redundancy, the Bank shall give notice of 30 days and shall pay to the staff redundancy benefits as under:
3.5 months Basic Salary for each completed year from the date of permanent employment of the employee.
In addition to the above, the bank shall pay transport expenses to the staff from the place of last posting to the place of original posting at the bank.
8.5.6 Retirement and early retirement will be dealt with under the existing labour laws as amended from time to time.
IN WITNESS WHEREOF WE HAVE HEREUNDER SET OUR HANDS ON THIS 21ST DAY OF JULY, 2016.
For and on behalf of FIRST ALLIANCE BANK (Z) LTD.
* MR. CYRIL PATRO
MANAGING DIRECTOR
MR .YOGESH BHANDARI
CHIEF OPERATIONS MANAGER
MR. MATHEW PIKITI
BRANCH MANAGER- NDOLA
For and on behalf of ZAMBIA UNION OF FINANCIAL INSTITUTIONS AND ALLIED WORKERS,
* MR.CHINGATI MSISKA
GENERAL SECRETARY
* MR.CHRISTOPHER MUKANGWE
DELEGATION LEADER
* MS. FRIDAH MBEWE
SECRETARY- NDOLA