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MEMORANDUM OF RECOGNITION AGREEMENT BETWEEN FIRST ALLIANCE BANK (Z) LIMITED (hereinafter referred to as “Bank”) AND ZAMBIA UNION OF FINANCIAL INSTITUTIONS AND ALLIED WORKERS (hereinafter referred to as “The Union”)
PREAMBLE
The Bank and the Union, desiring to make the greatest possible contribution to the success and prosperity of the Bank , employees and the nation as a whole, hereby agree to subscribe to principles that the Bank operates at maximum efficiency, thereby contain as much as possible the operational costs. Therefore, the parties agree to accept practices which promote individual and collective efficiency.
1. RECOGNITION
The Bank agrees to recognise the Union as representative and bargaining agent for all eligible employees of the Bank for so long as the Union remains registered in accordance with the Laws of Zambia in force from time to time affecting labour laws, and for so long as both parties continue to observe the terms of this Agreement.
2. SCOPE OF THE AGREEMENT
Eligible employees shall be those who are on permanent establishment of the Bank with exception of the following:-
- an employee empowered to make management decisions (Officers and above);
- an employee entrusted with Personnel Management and Industrial Relations functions, or
- an employee reporting directly to the Chief Executive,
In terms of this Clause, it is understood that matters negotiated between the parties to this Agreement shall be confined to bona fide members of the Union, Full-time trainees who are not on the payroll of the Bank shall be excluded.
3. CONDITIONS OF THE AGREEMENT
(a) The Bank recognises the Union on the basis of the Constitution of the Union in force at the date of the execution of this Agreement, a copy of which is annexed hereto and initialled by the parties for identification purposes.
The Union agrees that any alterations or additions to the Union’s Constitution will be done in strict accordance with the Industrial and Labour Relations Act.
(b) The parties undertake to settle any or all industrial disputes according to the procedures as set out in the Agreement and as stipulated in Sections 75 to 78 of the Industrial and Labour Relations Act.
(c) The Union agrees that it will not initiate or support any action or proceedings designed or calculated to compel any employee to be or become a member of the Union against his or her will and that it will not support any strike or stoppage of work which is not taken according to the procedures of the Industrial and Labour Relations Act and this Agreement.
(d) The Union undertakes that employees who are Union official s/representatives will not leave
their places of work for the purposes of conducting Union duties without permission of the management through their appropriate superiors. Such permission shall not be unreasonably withheld provided a notice of not less than 48 hours is given.
(e) The Union recognises that it is the prerogative of the Bank to discipline its
employees for improper acts done in their capacity as employees provided that in the case of unionised employees, Union Branch officials are subsequently informed as soon as possible.
(f) The Bank undertakes that it will not discriminate against or victimise a representative or member of the Union on account of any legitimate activities in his/her
capacity as a Union official or as a member. The Bank acknowledges
that it is the prerogative of the Union to discipline its officials or members for unconstitutional acts done by them in their capacity as officials or members of the Union, The Bank further acknowledges that a fair disciplinary action by the management shall be based on conditions under which an employee works /supported by Agreements with the Union and the Industrial and Labour Relations Act) to ensure consistency of actions to all employees concerned.
(g) The Bank undertakes to afford such facilities to the officials of the Union
as are mutually agreed as being necessary for the latter to carry out their duties as representatives of the employees at various places of work.
(h) Both parties shall agree that it will do its best to avoid acts and/or conduct which
are likely to lead to industrial unrest and that it will not encourage or support lock -outs/strikes until all stages of settling the dispute as laid down in this Agreement and the Industrial and Labour Relations Act are exhausted.
(i) The Bank agrees to meet duly accredited representatives of the Union, as long as a notice is given sufficiently in advance, for the purposes of discussing matters concerning the terms and conditions of employment of such employees as the Union represents.
(j) The Bank agrees that matters negotiated between the parties to this Agreement shall only be confined to bona fide members of the Union.
(k) Management agrees with the Union that it will not discriminate on wages to employees on the basis of association but the principle of equal pay for equal work will apply.
4. ELECTION AND NOTIFICATION OF UNION OFFICIALS
(a) Union undertakes to notify the Bank in writing the names, designation, and areas
of operation of all local Branch and National officials elected as per Union Constitution.
(b) The Bank undertakes to notify the Union through the General Secretary in writing of the names and designation of its officials and to advise any changes in this regard.
(c) Normal rights of access to members and potential members shall be accorded to accredited
Union representatives for the purpose of Union business subject to prior notification to the Bank.
5. DEDUCTION OF UNION SUBSCRIPTIONS
(a) In accordance with Section 22 of the Industrial and Labour Relations Act, the Bank undertakes, with the consent of the employees who are members of the Union, to recover subscription fees at the rate of 2% of basic salary (or as amended by the appropriate body of the Union from time to time).
(b) The remittances referred to in (a) above shall be made by crossed cheque marked “Not Negotiable” and “Account Payee Only,” and sent to the Head Office of the Union.
6. JOINT NEGOTIATING COUNCIL
(a) In recognition of the fact that First Alliance Bank Zambia Limited provides a vital service for for the benefit of the common man, the parties agree that the negotiating machinery will be subject to the provisions of the Laws of Zambia in force from time to time affecting Labour Laws. A Joint Negotiating Council comprising Union’s Negotiating Team on one hand and Management Officials on the other, shall be formed and shall sit in Lusaka or any place it may deem convenient,
(b) The Constitution and Rules of the Joint Negotiating Council are set out in Appendix “A”.
(c) Subjects for Negotiations:-
It is hereby agreed that the subjects listed in Appendix “B” hereto are subjects for negotiations between the parties,
(d) Subjects not for Negotiations:-
It is hereby agreed that subjects mentioned in Appendix “C” shall not be subjects for negotiations except where the Union observes the infringement of this Agreement, Collective Agreements or elements of injustice in the action taken by management.
7. GRIEVANCE PROCEDURE
(a) Individual Grievance
Stage 1
An employee desiring to raise a grievance with which he/she is directly or indirectly or personally concerned shall in the first place raise it with his/her immediate superior.
Stage 2
If the employee is not satisfied with the answer to Stage 1, he/she will refer his/her complaint to the Branch Union officials who together with him/her if need be, shall raise it with the Branch Manager or his/her equivalent who shall give an answer within three (3) working days.
Stage 3
Should the issue remain unsolved at Stage 2, the Union Branch officials will arrange for a meeting with the Head Office Manager whichever is the case, to discuss the matter.
The management will be required to give an answer within three (3) working days.
The Organisation chart should be observed.
Stage 4
If the solution is not forthcoming at Stage 3, the Union Branch officials and management shall submit the case in writing to their respective Head Offices giving full details of the subject. A meeting of the Joint Negotiating Council shall be arranged as soon as possible.
Stage 5
If agreement remains unresolved and the employee and/his Union representative wishes to proceed with the matter which will be referred to the Executive Director. The Executive Director may arrange for the grievance enquiry. In the event of the matter being referred to the Executive Director, he will be required to make a decision as soon as possible and in any case within 10 days.
Stage 6.
If the Joint Negotiating Council fails to reach an agreement, either party shall give seven (7) days notice of the intention to declare a dispute. Should the other party fail to give a satisfactory reply, the aggrieved party will proceed with declaration of a dispute.
(b) Collective Grievances
These shall mean all grievances arising from a breach, real or alleged, of existing terms of service on the matters specified in Appendix “B” of this Agreement which may affect all unionised employees of the Bank, such grievances shall be raised by the Union’s National Executive Council at Stage 3 of the procedure laid down as Clause 7 (a) above and may proceed to Stages 4 and 5 if no solution is forthcoming.
8. AMENDMENTS TO AND TERMINATION OF THIS AGREEMENT
(a) This Agreement shall come into force on 21st February 2000 and shall remain in force until:-
(i) Terminated by mutual consent of both parties.
(ii) Amended and/or replaced by a new Agreement negotiated by the parties.
(iii) One or both parties ceases to be a legal entity.
(b) Either party wishing to amend or modify this Agreement shall give three (3) months notice to the other party of its proposed amendments or modification giving full details of the same.
IN WITNESS WHEREOF- We have hereunder set our hands this 21st day of February in the year 2000.
For and on behalf of FIRST ALLIANCE BANK (Z) LTD
- EXECUTIVE DIRECTOR
- CHIEF INSPECTOR
- FINANCE MANAGER
For and on behalf of THE UNION
- PRESIDENT
- GENERAL SECRETARY
- NATIONAL TRUSTEE
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APPENDIX A.
CONSTITUTION AND RULES OF THE JOINT NEGOTIATING COUNCIL
1. Membership
The membership of the Council shall not be more than twelve (12) with an equal number of representatives from both parties. The quorum shall be six (6) with equal representation.
2. Election of Chairman
(a) The Council shall elect the Chairman from among its members present at the meeting. The Chairman so elected shall remain in the chair until the negotiations so opened are concluded or otherwise.
(b) A representative from management will normally be Secretary but a Union representative may be appointed to be Secretary or either party may appoint its own Secretary.
3. Meetings
(a) Regular meetings of the Council will be held at intervals of not longer than three (3) months with either party giving thirty (30) days notice to the other. The meetings shall normally be held during working hours on the Bank Premises.
(b) Either party may call for an emergency meeting by giving seven (7) days notice to the other party and full details of the items on the Agenda shall be stated.
(c) Meetings called pursuant to provisions of Clause 7 (a) and (b) of this Agreement will take place within the period prescribed.
4. Minutes
Copies of the Minutes of every meeting shall be prepared by the Secretary and circulated to each member of the Council, two copies of which shall be submitted for approval at the next meeting.
5. Failure to Reach Agreement and Deadlock at Joint Negotiating Council
(a) If the two parties fail to agree on any matter referred to the Joint Negotiating Council the proposed difference or dispute shall be adjourned for a consideration at a further meeting to be held at a mutually convenient time but not later than two (2) weeks from the date of adjournment.
(b) If after a further meeting the Council is still unable to reach an agreement, either party may give notice in writing within three (3) weeks (twenty-one days) after the second meeting indicated in (a) above of their intention to refer the dispute to appropriate authority in accordance with the Labour Laws of Zambia in force at that time.
6. Agreements
(a) Agreements reached between the two parties shall be reduced to writing in English and signed by the duly authorised member(s) of each side of the Council. Copies shall be given to each party and registered with the appropriate authorities in accordance with the Labour Laws in force at that time.
(b) Agreements shall be implemented with effect from the date the decisions are taken or such date the Council may decide.
(c) Any Agreement reached by the Council regarding any proposal, difference or dispute referred to the pursuant to Clause 5 above, shall be binding upon each party. Each of the parties shall promptly do all such acts and things as are necessary or expedient to secure mutual agreement, settlement or determination on the matter.
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APPENDIX B
APPENDIX “B”
ITEMS FOR NEGOTIATIONS
1. Rates of Pay and Overtime.
2. Length of Annual Holidays and Attendant Conditions.
3. Hours of Work.
4. Principles of Redundancy/Restructurmg and Redundancy Package.
5. Uniforms and Protective Clothing.
6. Sickness Benefits.
7. Sick Leave.
8. Maternity Benefits.
9. Pension Schemes,
10. Funeral Grant.
11. Staff Loans.
12. Medical Scheme/Allowance.
13. Any other issues as may be deemed appropriate by both parties.
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APPENDIX "C"
1. Management methods but Clause 6(d) of this Agreement shall apply where necessary.
2. Provident Fund.
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APPENDIX “D”
ITEMS FOR DISCUSSION:
1. Conditions on Premises
2. Social and Sports Activities
3. Occupational Health and Safety'
4. Housing Loan
5. Education Allowance
6. Transport Allowance DEFINITIONS In this Agreement:-
“Joint Negotiating Council” means bargaining unit or negotiating team representing the Bank and the Union.
“Collective Agreement” means an agreement by an appropriate bargaining unit in which the terms and conditions affecting the employment and remuneration of employees are laid down. “Collective Dispute” shall be construed in accordance with the Industrial and Labour Relations Act.
“Eligible Employee” means a unionisable employee other than a member of management. “Employee” means any person who has entered into a contract of employment with the Bank
“Member” means a member of the Union.
“Proper Officer” means a Labour Officer defined in the Industrial and Labour Relations Act.
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PROPOSAL TO AMEND CLAUSE 2 OF THE MEMORANDUM OF RECOGNITION AGREEMENT
In accordance with Clause 8(b) of the Memorandum of Recognition Agreement between ZUFIAW and First Alliance Bank Zambia, we hereby notify you of our proposal to amend Clause 2 of the Memorandum of Recognition Agreement by deleting the entire paragraph and replace it with the following new paragraph:
"Employees eligible for representation by the Union shall be employees who are not in management in accordance with the industrial and Labour Relations Act CAP 269 of the Laws of Zambia.
The rationale for this proposed amendment is to align the Clause with the Employment Act which defines an employee as follows:-
"employee" means any person who has entered into or works under a contract of service, whether the contract is express or implied, is oral or in writing, and whether the remuneration is calculated by time or by work done, or is in cash or kind, but does not include a person employed under a contract of apprenticeship made in accordance with the Apprenticeship Act or a casual employee
As a follow up, Section 5 of the Industrial and Labour Relations Act, confers the employee with the following rights:
’Notwithstanding anything to the contrary contained in any other written law and subject only to the provisions of Constitution and this Act every employee shall have the following rights:
(a) the right to take part in the formation of a trade union;
(b) the right to be a member of a trade union of that employee's choice; ’'
The implication of the law as quoted above is that Clause 2 of our memorandum of Recognition Agreement is in conflict with the Employment Act and the Industrial and Labour Relations Act.
However, Section 3 of the Industrial and Labour Relations Amendment Act No. 8 of 2008 defines management as follows:-
a) Head of an institution or undertaking and has authority to hire, suspend, promote, or demote an employee of the institution or undertaking
b) Head of a department in an institution, or undertaking and has authority in the financial, operational, human resource, security, or policy matters of the institution or undertaking
c) Decision making authority in the financial, operational, personnel, or policy matters of an institution or undertaking and who represents and negotiates on behalf of the institution or undertaking in collective bargaining or negotiations with any trade union;
d) Or with institutional authority to perform the functions referred to in paragraph a, b, c
It is our considered view that after the agreement is amended, the decision to belong or not to belong to a trade union shall be based on individual choice.
We look forward to convening of the Bargaining Unit in accordance with the notice in order to conclude this matter.
Peggy Mubanga (Ms)
ASSISTANT GENERAL SECRETARY ORGANISATION & ADMINISTRATION
FOR/GENERAL SECRETARY
Cc Branch Secretary, First Alliance Bank ZUFIAW Branch, Lusaka, Ndola, Kitwe