The 12th Collective Agreement Concluded Between HORIZON-ADDIS TYRE S.C And Horizon-addis Tyre S.C Basic Trade Union

Dec 2011

Article 1. Purpose of the Agreement

This collective agreement shall have the following main objectives with the agreement of the organization, and the trade union to make it practical.

1.1 To insure the rights and obligations given and to be given by the collective agreement, any issues that agreed by the organization and the trade union in the future, other rules and regulations proclaimed by the government

1.2 As much as possible to enhance efficiency and productivity for producing quality products since the organization is competing in the market.

1.3 As the organization is importing raw materials with high foreign currency, to assure the materials are transferred to the purposeful production and to control and keep the factory properties.

1.4 To make the factory profitable through applying new and improved systems and timely formulated strategies by eliminating extravagance and making high productivity by minimizing cost.

1.5 .To make efforts for maintaining good work relations between employees and between the factory and employees.

1.6. To design means of incentives among and within the workers in order to be competitive, productive and creative.

1.7. To improve productivity through maintaining the performance improvement program and skill promotion programs available for employees.

Article 2. Short Title

This collective agreement can be cited as the 12th collective agreement made and done between Horizon Addis Tyre S.C and Horizon Addis Tyre Basic Trade Union.

Article 3. Definition

In this collective agreement:

3.1"Organization” or "Factory" or "Administration" means Horizon Addis Tyre S.C. Administration

3.2 "Trade Union" or "Union" means Horizon Addis Tyre S.C. basic trade union.

3.3 “Worker” means as stated in the labor proclamation no. 377/2003 article 2. No 3.

3.4 "Scale" means the description table containing factory workers job title with the corresponding salary amount, which is proposed by external consultant and approved by the organization's Board of Directors.

3.5 "Work rules" means internal rule regarding general working conditions subject to labor Article 2 No. 5 of Labor Proclamation No. 377/2003.

3.6 "Proclamation" means labor proclamation no. 377/2003.

3.7 "Employer" means as stated in labor proclamation No. 377/2003 article No. 2/1.

3.8 "Recruitment" means the procedure made to fill a vacant post through advertisement and selection process from the labor market outside the organization in the absence of worker in the organization who fits the position.

3.9 "Transfer" means change of job title with the same grade and salary without promotion.

3.10 "Grievance" means complaint arises from contract of employment by one worker in particular or all workers referred by the agreement.

Article 4. Beneficiary parties

In accordance with this collective agreement, labor proclamation no. 377/2003 and other government regulations, only the organization and trade union shall make collective discussion or bargaining or agreement concerning general working conditions.

Article 5. The Scope of application

This agreement shall be applicable to members of the Horizon Addis Tyre S.C. in accordance with article 3.3 of this collective agreement

However, it shall exclude Directors, Senior Department Managers; Service Managers and Department Managers who are directly accountable to Directors in accordance with the proclamation No. 377/2003 Article 3 no. 2.

Article 6. Rules and directives

Government regulation shall be applicable if it benefits the workers than stated in the collective agreement.

Article 7. Interpretation of Disputes

Any dispute arises between the parties regarding the interpretation of this agreement will be settled by a committee selected by the organization and the Trade Union.

It may be better if members of the committee selected by both parties are among people who were bargaining in collective agreement. If the two parties do not agree, the dispute shall be forwarded to the concerned legal body.

Article 8. Obligations of the Organization

8.1. To pay any deductions from employees' salary concerning membership fee of trade union, Saving & Credit Association, Idire, and Sport contribution within 5 days of the beginning of every month for the concerned association.

8.2. Any warning or termination fetters referring the worker shall be notified to the Trade Union through carbon copy. Others like internal directives or letters shall be done as necessary .

8.3. To give the information on production and sales performance quarterly, biannually and annually to the Trade Union.

8.4. To make the union to have good participation in relation to the work and workers.

8.5 For the strengthening of sport activities in the organization, the Company will work in collaboration with the Basic Trade Union.

8.6 The company will back the Basic Trade Union by considering its own capacity.

8.7 The organization shall not give special benefit for any worker who is member or not member of the trade union.

Article 9. Rights Reserved to the organization

9.1. The organization has full right to exercise government laws, rules, regulation, to define jobs and standards according to the collective agreement, to direct, to recruit workers, to promote workers, to transfer, to take disciplinary measures, to suspend, to terminate, to change job, to add work, to use new system and instrument, to change working hours as necessary, to keep security.

9.2. Following governmental laws and rules under the study of concerned officials the organization has the right to decide reserve, change and cancel policies, work rules, regulations in a way that doesn't oppose the obligations of this collective agreement.

9.3. When it is necessary to reduce employees resulted from the alteration of the organization's working methods, it shall be executed as per art 28& 29 of proclamation no. 377/2003,

9.4. The organization shall strictly control workers who take alcoholic drinks, intoxicated and self uncontrollably come to work. When such behavior of workers is identified by the guard, it shall be confirmed by the guard shift leader and immediate boss of the worker.

9.5. The company shall exercise its rights as it is stipulated under article 18 sub article 5, 6, 19 & 21 of the Labor Proclamation 377/2003 where there is full or partially suspension due to force majeure of the activities of the company for a period of not less than 10 (ten) consecutive days or where there is financial problem, not attributable to the fault of the company, that requires the suspension of the activities of the company for not less than 10 (ten) consecutive days. However, considering the existing living standards of the workers and taking into account the future industrial relations, the company and the Basic Trade Union of the company shall discuss upon the issue and agrees to stay workers on annual leave until the problem is resolved. The granted leave shall be deducted from their upcoming leave in the future and in turn pay salary to workers at leave as long as the financial position of the company is healthy. Nonetheless, if any worker, other than those who shall be retired at the age of 60 or deceased, shall be terminated at any circumstances, arc forced to reimburse all amount of money, they might be paid without work, to the company.

Article 10. Obligation of the Trade Union

10.1 The union is responsible for any articles issued under its seal,

10.2 For the strengthening of sport activities in the organization, the Basic Trade Union will jointly work with the Company.

Article 11. Rights Reserved to the Trade Union

11.1 The organization shall not transfer, suspend, and terminate the trade union leaders from permanent job in case of request for aid from concerned offices or organizations to prosecute the organization. The list of officials of the Trade Union valid for co-determination makes annex No 2 of this agree¬ment.

11.2 The union shall recommend to the organization to take action on issues presented by the trade union, based on the sugges¬tion given by different committees under the trade union.

11.3 The trade union, for the improvement of organization's work activity, shall participate in planning, accomplishment, fol¬low up and evaluation according to the government regulation.

11.4 The Basic Trade Union should first fulfill all preconditions set by the government to enter into the activities of distributing company's product. After ensuring the fulfillment of the legal obligations, the matter shall be seen as equal as other distributors.

11.5 The notice board prepared for the Trade Union in the premises of the company will be administered jointly by the HRA and Trade Union.

a) Technical Directorate like:

Winders, all preventive maintenance workers, carpenters, plumbers, painters, Workshop store clerk, all fitters, heads, supervisors, grease boys, etc.

b) Production like:

Production clerks, who handed over and receive production, heads, supervisors, factory cleaners, etc,

c) Quality Assurance Department like:

Chemists, all laboratory workers, heads and supervisors.

d) Stores Department like:

Stores (warehouse) workers raw materials preparation workers, forklift operators, etc,

e) Local Sales Department

All store keepers, clerks, laborers, etc.

f) Human Resource Administration Department

Gardeners, Dry waste burners, Guard (Female), Service car drivers, etc.,

12.5 The working hours of office janitors shall be from Monday up to Saturday from 6:00 a.m.-2:00 p.m.

12.6 Working hours for Teklhaymanot shop and warehouses shall not exceed eight hours per day and 48 hours per week. From Monday up to Friday, it shall be from 8:30 a.m.-5:00 p.m, and on Saturday it is from 8:30 a.m.- 4:00 p.m.

12.7 Working hours to curing (vulcanizing) workers, in connection with meal hours, shall be effective based on the result of the study that the company will reach. For the timing being, it will continue as it is.

12.8 Meal Hours

A. Every worker of the enterprise shall have meal time not exceeding an hour.

B. The lunch time of the workers of the enterprise shall be from 12:00 noon up to 1:00 p.m.

C. The dinner time of 2nd shift workers shall be from 8:00 PM up to 9:00 PM in the evening.

D. From 2:00 AM up to 3:00 AM at night shall be the mealtime for 3rd shift.

12.9 Fourth shift could be organized because of the nature of the work or for technical reasons, if interrupted or postponed could cause difficulties or damages as stipulated in the Labor proclamation No.377/2003 Article 70/c.

Article 13. Delegation (Acting)

13.1 Whenever there is a need to replace a worker who is at any reason absent from permanent work for a month and above, the concerned Director shall submit requisition to the HR Director in advance.

13.2 Any temporary assignment shall be from lower grade to higher grade which must be related to the job. However, if it is impossible to assign in this condition, other candidates with the same job title can compete for it.

13.3. Human Resource Director shall investigate and approve whether the request is based on sub article no. 13.2 to give letter of replacement for the delegate.

13.4. The replacing worker shall earn the benefit allocated to the position. Moreover, s/he shall be paid 75% the difference of scale calculated in relation to the replaced worker, Nevertheless, if the salary of the replacing worker exceeds that of the replaced one, s/he shall get the next one salary scale. Hence, the payment should not exceed Birr 200.

13.5 In what so ever condition, replacement period shall not ex¬ceed 6 months. However, this article shall not be applicable unless an evidence of work-related illness or medical unfit¬ness report is presented.

13.6 The replacement allowance will be paid if only the delegation is for 30 days and more.

Article 15. Various Leave

15.1 Family Leave

15.1.1 Four (4) days leave with pay shall be given only for once to any worker for marriage accomplishment.

15.2 Leave for Trade Union to accomplish various activities

15.2.1 Trade Union leaders are granted leave with pay for the following different activities

A. To labor litigation, negotiate collective agreement, attend associations' meeting, and participate in seminars and training

B. The above stated leave under 'a' shall be given and the number of participant be determined upon the agreement of the organization and the trade union in a manner that the work shall not negatively be affected

C. The meeting date of the trade union leaders shall be determined by the agreement of the organization and the trade union where it is found necessary

D. The Basic Trade Union shall have three days in a week for the work of the trade union activities. Thus, only one of the representatives of the trade union shall be granted two working days in a week for the work of the trade union.

The third day will be granted for two representatives of the trade union. However, if others shall be called for can be engaged in the work of the trade union by notifying the organization and get consent in advance from the organization.

The worker shall be given leave with pay as per the proclamation when to carry out labor litigation, to appeal to court employer - employee laws executed, struggle for the respect of its civil rights and accomplish its obligations.

15.3 Leave without pay

Every worker shall be granted leave without pay not more than 30 days in a year if he/she notifies in advance to his immediate boss and approved by the company administrator.

15.4 Leave for court, police station or Public enterprise affairs When a worker gets summons from court or any other legal body to appear as wittiness, s/he shall be given leave with pay. By evaluating the distance of the place where the worker is requested to appear, the enterprise shall determine the length of time for leave. Hence s/he has to request for leave before the appointed date.

15.5 Leave for urgency

If a worker of the enterprise encounters an urgent matter and his/her immediate boss is convinced of the urgency of the matter s/he shall be given two hours leave with pay with in a month.

15.6. Leave for exams

15.6.1 Leave for exam.

A. For any worker leave with pay shall be given only for national examinations when necessary document is presented & accepted by the Company

B. If necessary document is submitted from any government educational institutions or from institutions accredited by the government leave for exam will be given to workers that will be deducted from their annual leave.

15.7 Education fee coverage

15.7.1 If any worker wants to improve his profession through education, and join Government owned institutions or private education centers which are authenticated by Government, and the field of study has direct relationship with what he is doing in the Company, the Co. shall cover education fee if the following conditions are fulfilled:

A. If the field of study is upward and not parallel, that is, from certificate to diploma, from diploma to degree, or from first degree to second degree; and if he/she submits official request to the company and get approval by the General Manager for same, the education fee shall at full be covered by the company based on the student copy (result) that the worker shall submit to the company together with settlement request.

B.The worker should submit a document which confirms that he/she has passed the examination given.

C. At completion of education, the company shall not offer promotion for the mote reason that he/she has completed the education and awarded with testimony. Promotion shall be given only when there is vacant position and applied a request for that position to compete as a candidate with others for that position and finally get best result.

D. If there may be any one who is engaged in education without prior approval of the company, the education fee shall not be covered by the Company.

E. After completion, those who are graduated in Diploma should serve the company for 4 year, with degree for 8 years and with 2nd degree for 10 years, otherwise, they will pay back the money to the Company with its interest, f. Any worker of the Company who is a shift worker & learning in the evening program can make an arrangement with his shift mate who has similar position, title and salary grade. This would be effective only when approved in advance by the Company.

Article 19. Incentive/Motivation

19.1 The established incentive/motivation system was not able to improve productivity and couldn't measure the efficiency of workers. It doesn't benefit both the company and workers to the level of expectation. Thus, it shall be reviewed in a way that can increase the capacity of workers for further productivity, initiative, and efficiency of workers and thereby both the company and workers will be benefited from it. Such review and study of motivation system will be conducted with the involvement of the Basic Trade Union. However, until the new envisaged motivation system is going to be reviewed and being practiced after it is endorsed by the negotiating parties, the existing motivation system will remain valid and continue as it is.

19.2 The motivation system is driven by variable salary. The payment of the variable salary depends on collective or individual performance achievements or accomplishments of personal tasks or assignments depending on the nature of the work and where the case might be appropriate.

19.3 The amount of variable salary allocated to workers and the criteria is attached in annex no. 1.

f) If the net profit of the budget year of 2011 after tax is lower than the amount slated under 'e' of this agreement, it will be determined through negotiation between the Company and the Trade Union. However, the result of the negotiation shall not be more than the amount stated under sub article 18.4 (e).

20.1.1 Bonus shall be calculated based on the basic salary of December 31, 2011 of every individual worker.

20.1.2 The amount of bonus is recalculated by ratio representing the portion of non-work off time on the planned working time

20.1.3 Non work-off time is:

a) Day off or vacation (leave) without remuneration

b) Absence

c) Medical examination that took 16 working hours and more in higher referral hospitals

20.1.4 Bonus for the year 2011 shall be paid in 2012 after external audit report is submitted and approved by Board of Directors and Shareholders meeting.

20.1.5 Entitlement for bonus shall be:

A. To workers who are registered in Human Resource record as of 31 December 2011. However, proportional bonus payment shall be made for workers whose terms of employment is terminated or who might leave after serving the company for 9 (nine) or more months in 2011.

B. To both permanent and contractual workers

C. For legally beneficiary/inheritor of the worker if the date of death in the year is specifically identified

D. For those who shall be retired at the age of 60, proportional bonus shall be made for the time they serve in 2011.

20.1.6 No bonus shall be paid for newly employed workers in 2011 unless they serve the Company at least 6 months. How¬ever, if they serve for six months and above and is ascertained that they are with the Company at the end of December 2009, they will be entitled for proportional bonus payment.

20.1.7 Bonus shall not be paid to workers whose terms of employment is terminated due to breach of Company's rules and regulations specified in the working rule document, and to those who shall be reinstated under valid last step written warning after being excused by the Company even though he/she is committing disciplinary cases for the second time which may result in termination of contract. Besides, bonus shall not be paid for any worker, who shall resign the Company before December 31,2011 and not serving the Company for nine months in 2011,

20.2 Bonus for the year 2012 and 2013 will similarly be negotiated and decided between the Company and the Trade Union every year in similar fashion and will be annexed to the Collective Agreement. The negotiation shall be concluded on or before September 30 of the respective year.

20.3 For the celebration of Ethiopian New Year, considering the tradition and other factors, the management of the Company shall pay special bonus of 50% of one month basic salary to workers at the end of August or first week of September every year. The bonus shall be effective upon the fulfillment of the following preconditions.

a) Special bonus shall be calculated and be effective based on the basic salary of end of December of the preceding year of effec¬tive budget year of every individual worker. For newly employed worker in the effective budget year, it shall be calculated based on the initial basic salary of the worker. Such payment shall base none of the Company's performance result.

b) Special bonus shall be paid to both permanent and contractual workers

c) Special bonus shall not be paid for any worker whose employment shall be terminated at any reason on or before 31 August of every year and for whom who may request resignation in September of every year owing to different reasons.

d) The worker has to pay back the special gift that he/she might receive to the Company in the event that the worker is requesting for resignation after having the bonus, where the resignation shall be effective before September 30, of every year. If the resignation is submitted before the effectiveness of the payment, the bonus shall never be effective to the worker.

e) No bonus shall be made unless the newly employed worker in the effective budget year is successfully completing the probation period.

Article 21. Allowances payment

21.1 Factory shall pay a minimum of Birr 120.00 and a maximum of Birr 200.00 for every worker who may travel for com¬pany duty out of Addis Ababa.

This shall be calculated as;

If monthly salary is less than or equal to Birr 1200.00 If monthly salary is from Birr 1201.00-1500.00 If monthly salary is from Birr 1501.00-1800.00 If monthly salary is from Birr 1801.00-2100.00 If monthly salary is from Birr 2101.00-2400.00 If monthly salary is from Birr 2401.00-2700.00 If monthly salary is from Birr 2701.00-3000.00 If monthly salary is from Birr 3001.00-3300.00 If monthly salary is greater than Birr 3300.00

21.2 Factory shall pay Birr 30.00 per day for every worker who may travel out and come in Addis Ababa for company duty.

21.3 Birr 50 shall be paid as transport and meal allowance for foil day training, seminars, workshops and meetings that will be convened at Addis Ababa.

21.4 If the costs of accommodation including, food and entertainment are to be included in the training fee, and the trainer shall offer those services accordingly, Birr 20.00 per day shall be given for transport allowance.

21.5 Birr 20 shall be paid as transport allowance for half-day training, workshops, seminars and meetings that will be convened at Addis Ababa.

21.6 For workers who spend their lunch time outside of the factory for Company's duty, lunch allowance of birr 30.00 shall be paid upon the approval of the concerned authorized person.

Article 23. Piece rate payment

At increment of sales or request of additional product, the organization can consult external professionals or with the agreement of the organization and the union, the work can be done based on piece rate.

Article 24. Pay day and salary credit

24.1 Salary shall be paid in European calendar and this shall be done in the middle and end of the month.

A. For urgent or force major the enterprise shall offer to worker up to three month salary credit which is interest free. This will be strictly handled by the top management and the trade union and a guideline will be prepared by the company.

B. For emergency situations and problems beyond control, the Company shall allocate Birr 12,000.00 (Twelve Thousand Birr) as advance salary and shall pay where it deemed necessary.

Article 25. Duplicating and Distributing Agreement

25.1 After this collective agreement is signed between the organization and the trade union, the organization shall duplicate and distribute it to the concerned offices as well as workers of the factory.

Article 26. Validity Period of the Agreement

26.1 This collective agreement shall be effective up on the date it is signed as per proclamation No. 377/2003 art. 133 and will be valid for 3 year from the date of signature.

26.2 Both parties can alter or revise the collective agreement up on their agreement.

26.3 After it is signed by both parties, the copy of the collective agreement shall be sent to Addis Ababa City Administration Akaki-Kality Sub City Civil & Social Affairs Department for registration.

Article 27. Annexes

All annexes are valid and considered as part of the Collective Agreement and bind both parties.

1. Human Resources Management

2. The list of trade union officers valid for codetermination

3. Working calendar

4. Work Rules

Date of signature: December 20,2011

For organization

Ato Belay Dechassa, General Manager

For Trade Union

Daniel Tadele, Chain

Witness by the side of the Company

1. Ato Melkie Belew

2. Ato Bedri Jebril

3. Ato Mareye Mandefro

Witness by the side of the Trade Union

1. Ato Daniel Tadele__________

2.Ato Yerga Yerom_________

3. Ato Bekele G/Wold________

HORIZON ADDIS TYRE S.C.

Standard No.

HUMAN RESOURCES MANAGEMENT

Approved by: Ato Belay Dechassa General Manager

Date of issue: December 20, 2011

1. Standard issue scope

This standard defines basic practices of management the human resources in Matador Addis Tyre S. C. Addis Ababa.

2. The scale of validity

This standard is valid for all workers of the organization and managers of Matador Addis Tyre S.C. where the latter manage the work groups, teams and departments

3. Related documents

Proclamation Work Rules

Register of job activities Collective Agreement

4. Activity description

4.1 Recruitment

1. Wherever appears a vacant post, the organization shall advertise to the workers internally for a period of 7 days by giving a copy to the labor union. Recruitment/Promotion shall take place as an open competition. The organization shall give the competitors verbal, written exam or practical test as it is necessary through the recruitment/promotion committee. If the workers) from internal fails to meet the requirements, the organization considers application, of external candidates.

2. Any recruitment shall be made after it is executed by recruitment

and promotion committee of the Company and approved by the general manager. The trade union will have representative In this recruitment and promotion committee

3. Newly recruited worker shall take general medical examination with the expense of the organization.

8. Severance pay and compensation to be given for a worker who is dismissed being unfit for the job during his probation period shall be effected in accordance with labor proclamation.

9. The probation period of the newly employed worker starts from the first day of employment even if the company is not able to assign him in the particular position to perform his work.

10. If a worker on probation period continues to work after the expiry of the probation period, the contract of employment for the intended type of work shall be considered as it has been signed and concluded even if he/she is not given a letter of permanent employment.

11. A worker who is re-employed for the same job shall not be placed on probation period.

4.2 Performance evaluation

1. The organization shall take performance appraisal of employees twice a year, on December and June.

2. Performance appraisal should be free from personal biasness, and hatred, it should be focused on the discharging of duties and task accomplishments as well as with company discipline. Every head should have a well organized record of his/her subordinates that enable him/her to rationally evaluate.

3. Performance appraisal (evaluation) shall be done before the following measures are taken.

- Before permanent employment

- Before proposing for promotion

- Before transfer is made

- Before taking disciplinary measures

- Before contract of employment is terminated

- Before getting training

- Before the provision of annual salary increment and bonus

4. Performance evaluation shall be approved by the concerned sector manager after it is completed by immediate supervisor to the next higher supervisors.

5. Performance evaluation shall be out of 4 with the evaluation result of the following:

- From 1.4 -1.99 Poor

- From 2.0 - 2.4 Satisfactory

- From 2.41-2.99 Good

- From 3.0-3.49 Very good

- From 3.5-4.0 Excellent

6. Where the average result of (one year) successive performance evaluation of every permanent employee is below 1.4 point, the organization shall decide in accordance with the Article 28 of Labor Proclamation No.377/2003.

7. Disciplinary measures shall be taken upon the worker if he/she shall not be willing to sign on the performance appraisal report produced by his immediate head and requested to do by stating his/her feelings, comments and opinions.

4.3 Transfer

(1) Whenever a medical board or physician (doctor) orders to temporarily place a worker to light work for definite period which is out of contract of employment because of illness, the company, if possible, shall transfer him/her to similar salary grade and job. Otherwise, the company shall transfer the worker to any job position by keeping the salary of the worker as it is until the light work period is lapsed. He/she shall also be entitled only for a benefit of temporary assigned position. However, unless he/she submits additional medical order issued by the medical board or doctor for light work, he/she shall be returned to his/her former job position.

(2) The working conditions of pregnant workers shall be effective in accordance with Labor Proclamation No. 377/2003.

(3) In accordance with this standard, permanent transfer made by the organization shall be based on efficiency, to increase pro¬ductivity and to match work with the worker. Any other type of transfer shall take place by competition. However, transfer resulted from disciplinary cases shall be executed out of this procedure. Due to special circumstances, transfers shall be made through a committee.

(4) The organization can temporarily transfer any worker. However, the transfer must be based on the same job classification, not repeatable and not more than 3 months, this shall be given to the worker by written. Any benefits, salary and grade remain the same with respect to the transfer.

(5) Any permanent workers transfer in the organization shall take place by the HRA-Department with the consultation of the HRD and the respective Director or directly by the Hu¬man Resource Director where it deemed necessary and the approval of the General Manager.

(6) Salary and grade can not be lowered in a permanent transfer. The worker shall get all benefits at the transferred job title.

(7) A written transfer order shall be given to the worker in advance whenever a worker is transferred. Job title and allowance shall be described in the transfer order. However, any transfer out of Addis Ababa to branch offices shall be notified to the worker in written before 30 days. If this is not fulfilled, the transfer will not be considered as valid.

4.4 Procedure for promotion

1. Promotion shall be given if there is a vacant post left by a worker or a newly vacant post opened to develop the organi¬zation, which is not placed by any worker.

2. In accordance with the condition stated above if there is a vacant post, a chance shall be given to a worker who meets the requirement in order to promote from a lower job classification and salary,

3. It is the organization that decides whether to fill a vacant post or not. The required education and work experience shall be according to the organization's structure. However, if it is new job classification not included in the structure, it shall be seen by a committee organized by the organization or external consultant.

4. After investigation of vacant post the administration shall advertise on notice board the job title, salary, and job grade according to the structure within 7 days,

5. All workers who can meet the criterion and requirements must be registered within 7 days at administration office.

3.The factory shall arrange transport services to work- related injured worker who follows medical treatment in out patient department, but only if the injury is serious that does not allow the injured to use public transport.

(2)A worker who fails to get a doctor at the hospital shall be granted a leave if he submits certificate from the hospital administration.

(3)Medical leave shall be considered in accordance with Article 85 (2) of the labor proclamation No. 377/2003.

4.5.5 Medical expense

1.The enterprise shall reimburse the cost of medication fully for any medical expense presented by the worker and approved by the company medical Dr.

2.The enterprise shall cover the cost of medicines starting from first step examination.

3.A worker who requires admission to hospital shall be treated in the hospital where the organization has credit agreement with it. However, if the disease is approved to be dangerous for his life by the doctor and is referred to higher referral hospital, the worker shall be treated in any governmental hospital or any private medical institute that has credit agreement with the organization.

4.If the doctor recommends the worker to be admitted in a special place he can be admitted to whichever level.

5. When a worker gets sight problem and prescribed by the doctor for eye glass, the organization shall cover the cost of eye lenses up to Birr 100.00 and for the cost of frames up to Birr 200.00. The total cost to be covered by the company for Loth lens and frame shall be up to Birr 300.00 (three hundred birr) as per the receipt that would be submitted by the worker.

5.Payments be made for physical damage and harm shall be accomplished as stated in Article 99 and 109 of the proclamation.

6.For injury that occurs due to work, payment shall be made as p a the proclamation.

7.If the company's oar is collided and damaged because of the fault of the worker, maintenance cost shall be covered by the insurance company. However, 15% of an excess claimed by the insurer shall be covered by the defaulter (worker) while the remaining 75% is covered by the company.

8.The enterprise shall provide milk to workers mentioned in those positions and the worker shall use the milk property. However, during fasting seasons of Nenewe and Hudade, Friday and Wednesday and other fasting seasons, the enterprise shall provide replacement tor milk at its club.

9.All workers should consume the value of milk replacement coupon during fasting date on same date on which the coupon is given. If there may be a worker who shall never be consumed the coupon on same date he received, he/she shall never be given next days coupon.

4.7 Work clothes and sanitation equipments

4.7.1 The company shall provide working clothes and shoes on time twice a year as per the table attached herewith (annex no.6)

4.7.2 Even though there are lists of working clothes like shirt, trouser, coat and over coat in any of the job title in the table and where both male and female workers are working in the same job title due to the nature of the work, it does not mean that all these four type of clothes shall be given to one worker. Rather if there is female worker who is assigned for same job, she will be entitled for only two pairs of trousers and two overcoats. And if there are some entitled for 3 working clothes, it will be handled in similar fashion.

4.7.3 Safety/working clothes, eye shield, mask, leather gaum, etc shall be given on time

4.7.4 Working clothes and sanitation materials shall be given only for work provided that the worker is attending his/ her work. If the worker is absent from work for more than one month owing to any reason, shall not be entitled for sanitary material to that particular month(s).

4.7.5 Mask for mouth coverage shall be given to GIP & GOP workers at curing section

4.7.6 Milk shall be given to GIP & GOP workers similar to Rubber Solution workers.

4.7.7 Once in every three years cold-protection overcoat (caport) will be given for only shift workers that include: guards, water pump operators, drivers, time control workers, milk distributors, and safety and fire protection workers

4.7.8 Cleaners at Laboratory shall get same and similar soaps to that of factory cleaners.

4.7.9 A pair of leather gaunt shall be given to Electric & Instrument workers once every six months. However, the entitled worker should hand over the old one so as to get the new.

4.7.10 One guan (over coat) shall be given to cashiers once in a

year.

4.7.11 The organization shall provide soaps as pet the table

4.7.12 One rolled soft paper shall be given to all workers

4.7.13 For those assigned once in a year for machinery maintenance, 2 packets of 400 gm. powder map and two pieces of 145 gm. soap shall be given for only once

4.7.14 Two pieces of 145 gm. Soap shall be given once per month for all office workers.

4.7.15 Motor driver shall be given bard and strong cape whenever it is wearing out and one leather jacket once in every 3 years.

4.7.16 Working clothes given to foreman and supervisors will

have different color from workers just for the purpose of easy identification.

4.7.17 For documentation center workers, 2 white over coat, whereas one white and one blue over coat shall be given for research and development workers

5. Responsibility

To ensure the execution and observance of the provisions of this standard of internal legislation, the company and individual employees are responsible as defined in the text of this standard annex No ....

For checking the observance of this standard of internal legislation, the company is responsible. The General Manager of the company together with the defined individuals in this standard of internal legislation of the company is responsible

to check the effectiveness and observance of this regulation. Besides, he is responsible to make a decision whenever there is disagreement.

Unless and otherwise both parties agree, this document is to be amended yearly and attached to the main agreement

Horizon Addis Tyre S.C.

Standard No.

WORK RULES

Approved by: Ato Belay Dechassa

Date of issue: December 20, 2008

Work Rules shall be implemented after it is approved by Basic Trade Union of Horizon-Addis Tyre S.C.

1. Standard issue scope

Work rules are collection of rules, modifying labour-law, organizational and disciplinary conditions of workers of Horizon Addis Tyre S.C. These sets (collections) are binding to HORIZON ADDIS TYRE S. C. (thereinafter only company). It is a control standard, which distributes these conditions into labour-law and other workers-company relations in accordance with Proclamation. Articles of association, Organizational and Signature rules of the company. Thus, all workers should know this standard of work rules.

2. Scope of validity

Work rules are valid for the company and all worjkers, as the workers have direct work relationship with the company. Work rules are legally binding as per the agreements for workers working in the company and for the works executed out of labor relations' agreement regarding work birgade. Work rules are valid from the date of its declaration. All workers of the company have to be informed about the Work Rules and they have to be open to them.

3. Related documents

1.Proclamation

2.Company rules/Policy

3.Collective Agreement

4.Organizational rules

5.Signature rules

6.Signature rules

4. Activity description

4.1 Obligations of the Organization

1.To execute in accordance with conditions cited in Labor Proclamation No. 377/2003, in this collective agreement, rules and regulations concerning work and that is shown in the contract of employment.

2.Unless and otherwise it is stipulated in the contract of employment, provides the worker with implementing tools and raw materials necessary for the performance of the work.

3.To pay salary to the worker who is entitled for salary payment in accordance with the contract of employment even if the worker is not working the whole day because of failure to provide materials and implements in accordance with sub article 2 of this article or any failure which is not caused by the worker.

4.To take and observe all the necessary occupational safety, health measures, and respects the workers dignity. To abide by the standards and directives given by the appropriate authorities.

5.To prepare appropriate safety equipment and uniforms in order to keep the workers health and prevent him from accident.

6.To cover the cost of medical examination for the newly recruited workers.

8.To keep records of employment date, amount of salary, number of leaves, health condition and the like in a table that shows it clearly.

9.To pay agreed salary and allowance on time. Directly or indirectly, the organization can not unlawfully deduct any benefit the worker got by law or this collective agreement,

10.To prevent disagreement between the organization and the worker or the organization and the trade union.

11.To prepare notice board and suggestion box to serve the worker.

12.To arrange a vehicle serving for any accident or injury sickness during working hours.

13.To cover the cost of medical examination, whenever such medical examination is required by law or appropriate authority.

14.To accept the workers with the previous amount of salary per their previous position whenever every worker is imprisoned for personal case and can be found in

his duty in not more than 3 months.

15.To give job description for workers to be placed in a new job title by transfer or promotion.

16.To provide office and notice board in the premises of the organization for the trade union and to cooperate for the success of the trade union.

17.The organization shall notify immediately to the trade union regarding promulgated laws, rules and regulations which are issued by government or concerned body. The organization shall observe laws, rules, government regulations and directives which are included in this collective agreement.

18.Whether the organization can give procedural directives about change of programs or not, the union shall recommend proposals if it believes that problems may occur at work. If the organization agrees on the recommendation, the recommendation shall be applied. However, the change can not oppose or reject the obligation described in this agreement.

19.When every worker wishes to see his own personal file, the administration shall make the worker to fill a form which is prepared for this purpose and the worker can see at the presence of administration head or his delegate. This shall be permitted once in a year.

20.The organization shall not inflict on any worker any suspension, which is not recognized by law, Proclamation no 377/2003, Work Rules or this collective agreement.

21.The company shall pay the holdup salary and reinstate to work if it is proved that the worker is free from violation of working rules after being suspended from work because of allegedly breaching company's working rules.

22.Any disciplinary measures should be charged by superiors with concrete evidence. If the charged disciplinary matter is without substantial facts, disciplinary measures shall be taken against the superior as per this collective labor agreement.

4.2 Obligations of the worker

1.To observe, exercise and follow articles stipulated in the labor proclamation and this collective agreement. To observe this collective agreement fully, amendment agreements; and amendments.

2.To keep company's and personal dignity and secret at all time.

3.To handle with due care all instruments, tools and uniforms entrusted to him for the purpose of keeping him safe

4.To take health examination and vaccination rendered by the organization.

5.To reserve from any act, which may endanger himself or his colleagues.

6.The worker shall not come and try to pass the gate in to work in a manner of drinking alcohol, should not get intoxicated or shall not position himself uncontrollable and argue with security guards due to alcoholic drinks.

7.Unless otherwise permitted by the organization in advance, the worker shall not take any property, which doesn't belong to him.

8.The worker shall not distribute and post illegal documents or transmit false information which disturbs the relation of the organization and the worker; and he should not activate and coordinate workers out of collective agreement and rules of the union.

9.Any worker shall observe directives given by the organization heads and work leaders.

10.Every production worker, under normal circumstances, is obliged to fully produce the minimum standard set by production Director and approved by the General Manager.

11.The worker shall not be absent from work or leave out the work without permission or acceptable reason.

12.The worker should report to his boss whenever the boss wants to discuss with him at work place and issues related to work. The worker should receive any written document given by the boss.

13 . To observe the organization working hours.

14.The worker shall participate to work with full capacity and force, to perform the works specified in the contract of employment.

15.The worker shall make effort and cooperate to improve productivity, quality and efficiency.

16.The worker shall observe and execute any advertisement by the organization, which doesn't oppose laws and the col¬lective agreement.

17.Every worker or other person incoming and out going shall be inspected at the gate of the premises.

18.Every worker shall cooperate to protect any accident on the organization and a person and to help when an accident happened.

19.It is forbidden to organize a group for mob and conspiracy, to stop work for promoting conspiracy, etc with a mere alleged reason of “demanding for right” without getting permission or recognition from the company or the trade union. If any worker shall commit such illegal acts, shall be penalized as per the Collective Labor Agreement.

20.Every worker has the obligation to work on over time in accordance with art. 67 No. (1) of labor proclamation No. 377/2003.

21.A worker shall inform immediately any serious matter or probable accident on the organization's property or person to the concerned body. He must give the necessary cooperation.

22.Every worker must attach educational testimonials, work experience certificates, pension forms and other important documents to his personal record.

23.Disciplinary measures shall be taken against any worker who violates the obligations stated in this collective agreement.

4.4 Disciplinary measures and procedure

1.The organization shall take administrative measures against employees who commit disciplinary mistakes as indicated in the attached table of Annex No. 5.

2.Despite this fact it shall take banning or directly dismissing measures against an employee with out the table when it is recognized by the disciplinary committee and decided and approved by the General Manager.

3.However, if the offence is serious, the administrator can take immediate action like suspension and informs to trade union. Subsequently, it shall form ad-hoc disciplinary committee.

The committee shall investigate the alleged breaching of company's regulation and submit proposal or suggestion to the administration. After the suggestion of the committee the company can take additional measures it may be to suspend, terminate or any improved action.

4.Measures mentioned in the table shall be executed at each level by the administration. Any warning shall stay effective for one year starting from the date that the measure is taken.

5.For the offence not indicated under the table, by comparing and relating to the table of annex 5 as their simplicity and seriousness, the organization will take immediate disciplinary action and will inform to the Trade Union immediately.

6.Before taking measures other than suspension for serious offences, it shall be first confirmed by the committee whether the worker has committed the said mistake by collecting and proving evidences.

7.Those disciplinary measures that will be added, amended or revised will be included after being studied by the company & trade union jointly.

4.5 Approach to Complaint procedure and the system of presentation

1.Primary purpose

If the organization and the union can not solve tine grievance arises between them the grievance shall be handled by neutral party or arbitration/conciliator as indicated in Article 141, 143 and 145 of proclamation No. 377/2003.

2.Complaint shall be presented to Department Head Director

Motivation, training and Development Department Human Resource Director or General Manager First Instance Court of Region or Decisive Board of Labor Affairs

3.Complaint handling and presentation procedure

A. 1st Level

A worker who has complaint against the letter or punish¬ment he received from his immediate boss or superior boss shall complain by writing to the concerned head as soon as possible.

B. 2nd Level

If the worker is not satisfied with the decision given under step one, he may appeal to Motivation, Training and Development department head. The head by consulting the Director shall respond with in 4 days after investigation of the case. However, this shall not include cases to be investigated by committee.

C. 3rd Level

If the decision rendered at step two is unsatisfactory to the worker, the worker shall submit this grievance in written to the general manager through the union with in 4 days. The general manager shall give response within 5 days.

D. 4th Level

If the reply of the general manager is unsatisfactory, the employee shall take the issue to the concerned legal body as per sub- no B of this article.

Unless and otherwise force major is happened, any complaint not presented with in the above-mentioned period of time shall not be acceptable.

4.Complaint procedure

ft is the obligation of the worker and the decision maker to respond orally for orally presented complaint and in written for written complaint within the stated time.

As stated above, personal complaint procedure shall start from Motivation, Training and Development Department

Complaint presented by the trade union shall start from the G/Manager.

If the worker, the union or the organization wants to be protected from some disciplinary measures, time limits and steps to be taken for complaint procedure in this collective agreement shall be applicable. Time limits taken in this complaint procedure must be working days.

4.6 Receiving and transmission of message

(1) Intra city call

A.When there are private cads for each worker the telephone operator shall write the message on message correspondence paper and shall deliver it to the worker through messenger.

B.If the message is about accident, death, or illness the telephone operator shall get telephone address, and make the number get to the worker to make call.

C.Telephone message transferred on the second and third shift shall be communicated to the concerned division by recording in logbook through security office.

D.There shall be public telephone in the premises of the enterprise. E. Postal service shall be established in the premises of the enterprise by discussing with the head office.

(2) Non- Intra-city calls

A.If it is inter-urban call, or a call from abroad, the call shall be transmitted to the nearby available extension line for the receiver.

B.Every international calls privately made from the enterprise should be recorded by the operator.

C.The user shall pay for phone calls privately made to a destination out of the city.

D.In order to make the enterprise be able to transfer messages and the worker to be beneficiary of the service, the extension lines shall be installed in the sub-divisions if the capacity of the PBX allows,

2.All workers have to arrange annual leave program with their respective Directorates in every budget year and officially make aware Human Resource Directorate.

3.The annual leave shall be permitted in three phases:

A.Where it is found necessary, six days leave shall be given in different days, with the approval of immediate boss,

B.One-third of the remaining leave shall be given at once when a worker gets problem and requests formally

C.The rest (remaining balance) of the leave will be granted as per the pre-planned program and based on the schedule that will be prepared by the Company. However, administration can schedule or reschedule leave programs according to the nature of the work

4.The company can postpone the annual leave because of force major but cannot postpone for more than two years.

5.When a worker wants to take annual leave by a special problem, he must report before three days.

6.If a worker gets sick while on leave and produces medical

certificate of leave from any legal hospital, his/her annua! leave shall be extended.

7.If the worker from leave has to be appeared on duty for unpredicted reason, the enterprise can call up on the worker on leave as per the proclamation.

8.No leave is valid unless the administration knows and approves it. And yet, if the worker fails to attend duty due to force major depending on the type of problem and if the administration is convinced shall accept and sign annual leave.

9.When a worker is on leave or on medical leave the benefits for the position shall be considered based on the proclamation.

10.Annual leave shall be given with advance salary provided that the worker shall take annual leave of more than ten days and submit a request for the payment of salary.

4.8 Funeral Ceremony and Mourning Leave

1. A worker shall be granted Mourning leave in the following condition:

A.when spouse, ascendants (mother, father or children) of a worker dies or spouse's ascendants( mother and father) dies and if it is approved by the workers Idir or community Idir or locality kebele - 4 days

B.when descendants (sister, brother) of the worker or spouse's

descendants (sister, or brother) dies and when other corpse is found on his home and when it is approved by the workers Idir or community Idir or locality kebele - 3 days.

C.When relatives other than 'a' and 'b' of article 4.8 (1) like grand parents, aunt, uncle, niece and nephew of the worker, or spouse's grand parents, aunt, uncle, niece and nephew die, two days mourning leave for each shall be given but the total morning leave in this case shall not be more than 6 days in a year. The mourning leave in this case will be given if the worker shall bring legally accepted documents only from community Idir or locality kebele. It will also be accepted only if it is signed and approved by Human Resource Director, or his delegates.

2. List of relatives registered by workers for mourning leave purpose is invalid and has no use by this work rules.

4. When a worker who is on duty out of Addis Ababa dies, the organization shall bring the dead body with its own expense.

5. Responsibility

1.For execution and observance of the provisions of this standard of internal legislation, the company and individual workers are responsible as defined in the text of this standard annex No..

2.For checking the observance of this standard of internal legislation, the company is responsible. The General Manager of the company together with individuals defined in the provisions of this standard of internal legislation of the company is responsible to check the implementation and observance of this regulation. Besides, he is responsible to make a decision whenever there is disagreement.

3.Unless and otherwise both parties agree, this document is to be renewed yearly and attached to the main agreement

Annex 2 List of Trade Union Leaders

As per the collective agreement Article 11 Sub article 11.1, the list of Trade Union Leaders is listed as indicated below:

A.Executive Committee Members

1.Ato Daniel Tadele - Chairman

2.Ato Abayneh G/Michael - V/Chairman

3.Ato Yerga Yerom - Secretary

4.Ato Bekele G/Wold - Accounts Officer

5.Ato Seife Feleke - Cashier

6.Ato Nigusu Haile - Member

7.Ato Zelalem Mengistu - Member

8.Ato getaneh Hailu - Member

9.Ato Fikadu Nida - Member

10.W/t Wubeshet Ayele - Member

B.Audit Committee Members

1.Ato Demere Mersha - Chairman

2.Ato Mesfin Abebe - Member

3.Ato Ayalew Tibebu - Member

Annex 4 Transport line

Annex 5 Disciplinary measures

Annex 7

Types of damages that resulted in termination of

contract of employment without notice

The following disciplinary cases result in termination of contract and those committing the under listed work rules shall not be entitled for bonus.

S/NTypes of damages that result in termination of contract of employment without notice

1 Physical attack at work place

2 Gambling

3 Theft

4 Firing at prohibited area

5 Entry with unauthorized material to the factory

6 Disfiguring the insignia of the company

7 Damaging of Company's property intentionally

8 Submitting false document and certificates

9 Entry with any type of armaments to the factory

10 Illegal utilization of annual or any other leaves

11 Punching another workers' time card intentionally