MEMORANDUM OF AGREEMENT BETWEEN THE TIMBER INDUSTRIES EMPLOYERS ASSOCIATION (HEREINAFTER REFERRED TO AS THE "ASSOCIATION/EMPLOYER") OF THE FIRST PART AND KENYA BUILDING, CONSTRUCTION, TIMBER FURNITURE AND ALLIED INDUSTRIES EMPLOYEES' UNION (HEREINAFTER REFERRED TO AS THE "UNION") OF THE SECOND PART

IN MATTERS OF MINIMUM RATES OF WAGES AND TERMS AND CONDITIONS OF EMPLOYMENT IN TIMBER INDUSTRY IN THE REPUBLIC OF KENYA

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PREAMBLE

WHEREAS by terms of Recognition and Negotiating Procedure Agreement signed between the Association and the Union on 30th June, 1989 it was agreed that the Association has recognised the Union as a properly constituted body and sole labour organisation representing the interests of the employees in the Timber Industry and;

WHEREAS it was agreed that the rates of wages and general terms and conditions of employment to be and provided to employees in the Timber Industry shall be as negotiated and agreed between the Association and the Union.

NOW THEREFORE, the Association and the Union having successfully concluded negotiations at their Joint Industrial Council agree as stated hereunder:-

b) GENERAL WAGE INCREASE

PART II: - OTHER TERMS AND CONDITIONS OF SERVICE

1. APPLICATION

This Agreement shall apply to all employees in timber and wood industries but shall exclude employees as may be defined in the Industrial Relations Charter Appendix 'C' as amended from time to time.

2. INTERPRETATION

All clauses, paragraphs and parts as contained in this Agreement shall be taken to mean as they read.

3. SENIORITY

4. HOUSING ALLOWANCE

(a) Every employee will be provided with free and satisfactory house by his or her employer. In case of dispute, the matter may be referred to the health authority by either party.

(b) An employee who is not provided with free and satisfactory house by his or her employer shall be entitled, in addition to his or her basic minimum wages, to a housing allowance equal to 15% of the employee's monthly wages. Provided that no employee shall receive housing allowance of not less than the amount shown in the table below:-

(c) Daily housing allowance shall be monthly housing allowance divided by 30.

HOUSE ALLOWANCE

FIRST YEAR (01.07.13 TO 30.06.14)............................................................................................................................2ND YEAR (01.07.14 TO 30.06.15)

5.HOURS OF WORK

(b) The normal working week for "Day Watchmen" shall consist of 48 hours work to be spread over 6 days of the week.

(c) The normal working week for "Night Watchmen" shall consist of 60 hours of work spread over 6 shifts of the week.

(d) Where a 24-hour duty roster is operative, a normal working week shall consist of not more than 44 hours of work spread over six (6) days of the week. For the purpose of this sub-clause, the employees may work less or more hours than 44 per week in any given week or month at the employer's discretion. In case an employee works for more than 190 hours per month, he shall be paid overtime for the excess hours worked at the end of the month.

(e) An employee who is stopped from working by the employer without prior consultation with the employee's representatives for reasons other than disciplinary measures and for circumstances not beyond the employer's control shall be entitled to full rate of wages per day or per month as the case may be.

6. PAYMENT OF OVERTIME

(iii) Day and Night Watchmen (Security Guard) shall be paid overtime at the rate of one and a half times for any time worked in excess of forty eight (48) and sixty (60) hours respectively during any one week.

(a) For the purpose of calculating overtime for employees other than watchmen the hourly rate of wages shall be deemed to be not less than one-hundred and ninety (1/190) of the employee's monthly wage.

(b) For the purpose of calculating payment of overtime in respect of day watchman, the hourly rate of wages shall be one-two hundred and eight (1/208) of the employee's monthly wage.

(c) For the purpose of calculating payment of overtime in respect of night watchman, the hourly rate of wages shall be one-two hundred and sixty (1/260) of the employee's monthly wage.

(iv) No employee shall refuse to work overtime if he/she is requested to do so by his/her employer.

7. PAYMENT OF WAGES

(i) Wages shall be paid in arrears and shall become due and payable on or before the second day of the following month and shall be paid in the currency of Kenya.

(ii) Should the end of the month fall on a Sunday or a Gazetted Public Holiday, wages shall be paid prior to such day.

(iii) An employee is entitled to be shown the computation of his/her monthly wages, including overtime and deductions.

(iv) In respect of employees employed for a period less than one calendar month, wages shall become due and payable on termination of employment.

(v) Payment of wages shall be made on a working day and during the working hours and at the place of employment.

Provided that the method or mode of payment of wages shall in no way prejudice the right of an employee to enjoy any or all fringe benefits stipulated in this agreement and, for this purpose and no matter how an employee is employed or paid such an employee shall be entitled to all fringe benefits earned by him/her.

(vi) Where an employer pays wages outside working hours the time spent in paying wages shall be regarded and paid for as overtime in accordance with provision of clause 4 of this Agreement.

(vii) For the purpose of calculation of daily rates of wages an employee's daily rate shall be deemed to be employee's monthly rate divided by 26.

8. ANNUAL LEAVE AND LEAVE TRAVELLING ALLOWANCE

(b) Where employment is terminated before completion of any twelve months' leave earning period, an employee shall be entitled to pro-rata leave pay for each completed month of service at the rate of 2 1/4 days per each completed month of service.

(d) An employee shall be entitled to leave pay at least one day before commencement of annual leave.

(e) Annual leave shall not be accumulated for more than two years, except by mutual agreement between the employer and the employee.

9. GAZETTED PUBLIC HOLIDAYS

(b) Any employee required by his employer to work on a Gazetted Public Holiday shall do so and shall be paid overtime at the appropriate overtime rate, i.e. Double time.

10. RELIGIOUS HOLIDAYS

Any employee desirous to take time off for religious purposes shall be granted such time off without pay, or alternatively, such employee shall have the option of having the number of days taken for religion set off against his/ her annual leave entitlement.

NOTE:For the purpose of this clause, an employee shall be deemed to be a member of one religion only.

11. MATERNITY LEAVE

12. SICK LEAVE

Provided that:

Where an employee is under full time hospitalisation for a longer period than above the payment of sick leave shall be extended by another 30 days on full pay and 30 days on half pay.

(b) Any employee claiming sick leave as provided for by paragraph (a) of this clause, must produce a certificate of incapacity covering the period claimed and such certificate must be signed by a qualified medical practitioner or a person acting on his behalf in charge of a dispensary or medical aid centre.

(c) Where an employee considers it necessary due to serious injury or sickness, an injured or sick employee shall be transported to the nearest dispensary/hospital and back from such dispensary/ hospital to the employee's place of employment or residence.

(d) No employee shall be eligible for sick leave or transport in respect of any incapacity due to gross neglect on his own part.

(e) Generally, employers will be responsible for Medical Treatment in accordance with the Law.

(f) Where an employee (if any) who is paid housing allowance separately is absent from work due to illness or other physical incapacity, he shall continue to be paid such housing allowance in full until the expiry of the period stipulated in paragraph (1) of sub-clause (a).

13. INJURY ON DUTY

14. SAFARI ALLOWANCE

Note: Where the employer provides accommodation and meals the above will not apply.

15. PROTECTIVE CLOTHING

Employees required to wear protective clothing will be provided with two Nos. of such clothing in accordance with the provisions of the Occupational Safety and Health Act, 2007. These will also include the following:-

(a) HEAVY OVERCOATS

Watchman

(b) OVERALLS

1. Engine Attendants

2. Saw Doctors

3. Saw Doctors' Assistants

4. Mechanics

5. Welders

6. Painters

7. Assistant Mechanics

8. Sawyers

9. Tractor Drivers

10. Lorry Drivers

11. Drivers' Mates

12. Electricians

13. Sawyers' Assistants

14. Boiler Operators

15. Boiler Assistants

16. Glue Spreader Operators - with protective shoes

17. Assistant Glue Spreader Operators – with protective shoes

18. Sweepers (latrines)

19. Celcure Plant Operators

20. Planning/Moulding Machine Operators

21. Asst. Planning/Moulding Machine Operators

22. Peeler Machine Operators

23. Assistant Peeler Machine Operators

24. Press Machine Operators

25. Assistant Press Machine Operators

26. Veneer Machine Operators

27. Straight Edger Machine Operators

28. Cross Cutter

29. Nail Machine Operators

30. Stone Crushing Operator and Labourer

31. Splitter Machine Operator

32. Chipper Operators

33. Pulp Mixing Machine Operator and Assistant

34. Router Press Machine Operator

35. Forming Press Machine Operator

36. Hot Press Machine Operators and Assistants

37. Grinding Mill Operators

38. Slicing Machine Operators

39. Assistant Slicing Machine Operator

40. Panel Sizer Operator

41. Assistant Panel Sizer Operator

42. Knife Sharpening Machine Operators

43. Digester Operators

44. Carpenter

(c) APRONS

1. Splicer Machine Operator

2. Clipper Machine Operator

3. Sander Machine Operator

4. Dryer Machine Operator

5. Cutting Machine Operator & Assistant

6. Folding Machine Operator

7. Notching Machine Operator

8. Hand Folding Machine Operator

9. Clips Machine Operator

10. General Workers Working with 2 - 5 above

(d) LIGHT OVERJACKET OR COATS

1. Foreman

2. Dressers

3. Quality Controller

4. Storeman

5. Tally Clerks

6. Saw Dust & Waste Carriers with caps for those who want

(e) LONG TROUSERS AND JACKETS (OF ANY COLOUR)

1. Chauffeurs (with caps)

2. Office Messengers (without caps)

(f) GUM BOOTS

During the rainy season, any employee working under headings listed below will be provided with one pair of gum boots once every 2 years provided that the employee is exposed to wet weather:

(i) Log Breakdown

(ii) Boiler

(iii) Log Loaders

(iv) And other forest employees/workers.

(g) Safety Boots

- Employer to provide safety boots in accordance with provisions of the occupational Safety and Health Act 2007.

(h) Provided the uniforms/protective clothing so issued shall be replaced as and when they become unserviceable due to normal tear and wear. The item so replaced will be returned to the employer by the employee concerned.

(i) An employee who is issued with uniform/protective clothing, shall be provided with one (1) bar of soap covering a period of six (6) weeks or one (1) standard cake of soap per week for cleaning purposes.

(j) Provided that an appropriate protective clothing/ uniform/equipment will be supplied to all employees involved in the operation of any timber machinery not mentioned above.

16. COMPASSIONATE LEAVE

17. REDUNDANCY

It shall be a condition in every contract that where the employment of an employee is to be terminated on account of redundancy, the following principle in addition to the requirement of the relevant provisions of the Trade Disputes Act, shall apply:-

(i) The Union shall be notified of the reasons for and the extent of the intended redundancy prior to the issue of the notice.

(ii) Discharge for redundancy will be effected on the basis of "Last In, First Out" and all other factors shall also be put into consideration in any section to be affected by the redundancy.

(iii) Any redundant employee with less than four years continuous service with an employer shall be entitled to one month's notice or one month's wages in lieu of notice. An employee with four or more years continuous service shall be entitled to two months' notice or two months' wages in lieu of notice.

(v)Any leave due to any employee declared redundant shall be paid for in cash.

18. RETIREMENT (GRATUITY) TERMINAL BENEFITS

(a) For every complete one year of service with an employer an employee shall be entitled to twenty (20) days pay for each completed year of service to be based on the employee's wages at the time of termination of service.

(b) An employee who resigns for reasons other than certified ill health or old age shall not be entitled to gratuity.

(i) In the event of any dispute as regards resignation on medical grounds, the verdict of a qualified medical practitioner shall prevail.

(ii) An employee who attains 47 years of age shall be entitled to retire with full benefits.

(c) In case of death of an employee, the retirement benefits shall be paid by the employer to the lawful heirs of the deceased.

19. TERMINATION OF EMPLOYMENT

The first two months of employment with the employer shall be treated as probationary period, and during such period the contract may be terminable by not less than seven days' notice in writing to be given by either party, or otherwise by payment by either party or by payment by either party in lieu of notice of not less than seven days wages.

(i) In the case of an employee who has completed two months but less than five years' continuous service with an employer, the contract shall be terminable by not less than one month's notice in writing to be given by either party, or otherwise by payment by either party in lieu of notice of not less than one month's wages.

(ii) In the case of an employee who has completed five years continuous service with an employer, the contract shall be terminable by not less than two months' notice in writing to be given by either party or otherwise by payment by either party in lieu of notice of not less than two months' wages.

(iii) After successful completion of the probationary period an employee will be confirmed as a permanent employee of the company.

(iv) In the case of an employee being terminated at the initiative of an employer after completion of one year’s service, such employee will be entitled to gratuity as per Clause 18 of this agreement.

Provided that an employee who resigns or loses his job on disciplinary grounds will not be entitled to receive any gratuity.

(v) Nothing in this paragraph shall prejudice the right of either party to terminate a contract summarily for established lawful cause.

20. LETTER OF APPOINTMENT

21. WARNING PROCEDURE

An employee whose work or conduct is unsatisfactory or who commits an offence which does not warrant instant dismissal shall be warned in writing and the following procedure shall apply:-

(i) The first and second warnings shall be recorded in the employee's employment record card with copies of such warnings to the shopsteward and Branch Secretary. Such warnings shall remain valid for twelve months from the date of issue.

(ii) If within this twelve months' period the employee commits a further offence which does not warrant instant dismissal he will be issued with a further warning which will make him liable for instant dismissal for any other act he commits after the third warning. A copy of the final warning shall be copied to the area Branch Secretary and the General Secretary of the Union.

(iii) Should an employee complete twelve months from the date of the final warning without committing a further offence, the warnings issued or recorded in his employment record shall be deemed to have automatically lapsed.

22. ACTING ALLOWANCE

Where an employee is required to work in full acting capacity for a period of not less than fourteen days in an occupation or grade for which the minimum wage prescribed in Part I of this Agreement is higher than the minimum wage normally earned by the employee, he/she shall be paid acting allowance at the rate of not less than the difference between such higher rate and his normal wage.

23. CERTIFICATE OF EMPLOYMENT

Every employee shall be given a certificate of service by his employer upon the termination of his employment unless such employment has continued for a period of less than four consecutive weeks, and every such certificate shall contain:-

(a) (i) the name of the employer and his postal address;

(ii) the name of the employee;

(iii) the date when employment commenced;

(iv) the nature and usual place of employment;

(v) the date when employment ceased; and

(vi) such other particulars as may be prescribed.

(b) Subject to sub-clause (a) above, no employer is bound to give to any employee testimonial, reference or certificate relating to the character or performance of an employee.

(c) Any employer who willfully or by neglect fails to give an employee a certificate of service in accordance with clause (a) above, or who in a certificate of service includes a statement which he knows to be false, shall be guilty of an offence.

24. WORKING TOOLS

The employer will provide working tools and other working equipments to an employee. Such tools and or equipments are and shall remain the property of the employer.

Provided that where tools are provided no employee will bring his own tools into the employer's premises.

Where tools are not provided by the employer, the employee shall be paid a tool allowance of Shs.553.00 per month for the 1st year and Shs.614.00 for the second year if he has tools as specified in the list of N.I.TA. or the employee has the necessary tools required by the employer for the work assigned to the employee.

Any tools or equipments damaged or lost through the employee's neglect may be recovered by the employer as provided by the law.

25. LABOUR LINE

The employer will provide adequate sweepers for keeping the sanitary in the labour lines clean. The cleaning of individual or private family sanitary shall be the responsibility of the employee.

26. RECORD OF WORKERS

All the workers' names shall be properly written in the Muster Roll Book.

27. CHECK OFF SYSTEM (UNION DUES)

The Labour Relations Act 2007 shall apply.

28. NIGHT SHIFT ALLOWANCE (EXCLUDING WATCHMEN)

(a)Where regular shift work is in operation and overtime is not payable, night shift allowance shall be payable to the employees working on shift between 6.00 p.m. and 6.00 a.m.

29. TRANSFER ALLOWANCE

Where an employee is permanently transferred to a branch of the employer's business or to a place within or outside the District such employee shall be:-

(a) Provided with satisfactory transport by his employer (to transport himself, his family, if staying with him, and his personal household effects).

(b) Notified of the intended transfer at least two months in advance, and shall be paid transfer allowance as shown below

•1st year =Kshs. 3,166.00

•2nd year =Kshs. 3,514.00

(c)Shall be entitled, if he so wishes to take an advance of at least a half month's pay.

30. SUPPLY OF MILK

The employees working in Spray Painting Section shall be provided with ½ litre of milk per day for prophylactic purposes.

31. NOTICE BOARD

The employer will provide a properly enclosed water proof Notice Board in a convenient place for the posting by accredited Union officials of materials and notices for the conduct of Union affairs, provided such materials or notices will only be posted with prior approval of the Management.

32. SALE OF BUSINESS

In cases involving transfer or sale of all or part of a business that is presently under a Collective Agreement, Management will recommend to the buyer continuation of Collective Agreement particularly in respect to protection to unionisable employees.

33. BENEFITS ENJOYED ABOVE THE AGREEMENT

It is mutually understood that this Agreement shall not prejudice any arrangements or benefits to any employee that supersede the benefits stipulated therein, i.e. any employee who is recently enjoying benefits of any kind which are in excess of this Agreement shall remain effective.

34. LEAVE OF ABSENCE

Leave of absence without loss of pay shall be granted to employees for the purpose of attending Union Conference or Seminar, if mutually agreed between the employer and the Union. The Union will apply for such leave to the employer on behalf of the employees at least 15 days prior to the commencement of such Conferences or seminar.

35. SUSPENSION

(a) Where an employee is suspected to have committed a breach of discipline or gross misconduct he may be suspended from duty with or without pay pending investigation. No suspension period shall exceed 30 consecutive days except when the matter is sub-judice.

(b) If it is established that an employee is guilty of a breach of discipline or gross misconduct, such disciplinary measures as appropriate shall be taken against that employee.

(c) In such cases the Union shall have the right of appeal in accordance with the Grievance Procedure.

(d) If the breach of discipline or misconduct is not proved, the employee shall be allowed to return to his place of work and shall be assumed to have been on duty during the time he was on suspension.

36. HEALTH AND SAFETY

37. DEATH OF AN EMPLOYEE

38. INCREASE TO EXISTING UNAFFECTED EMPLOYEES

(i)Any employee whose monthly wage was before 1st July, 2013 higher and above that specified in the expired agreement shall retain that higher wage personal to himself/herself and no deduction of wages shall be made on his/her wage.

Such an employee shall and despite his/her higher wage be entitled to a wage increase on top of his/her wage at a rate of 11% for the first year and 11% for the second year.

(ii)Any unionisable employee whose job is not categorised in this Agreement and was in employment of the employer on 30th June, 2013 shall be entitled to wage increase on top of his/her wage of not less than 11% for the first year and 11% for the second year.

39. MEDICAL ATTENTION

40. EFFECTIVE DATE AND DURATION OF AGREEMENT

This Agreement shall be effective from 1st July, 2013 and shall remain in force for a period of two years up to 30th June 2015. After the expiry date, the Agreement shall continue in force until it is amended by mutual consent. The party wishing to amend any clause or clauses of the Agreement shall give one month's written notice to the other party setting out in detail their proposed amendment.

SIGNED: FOR AND ON BEHALF OF THE ASSOCIATION:

..............................

CHETAN SHAH

CHAIRMAN

.................................

MOSES OBURA

VICE-CHAIRMAN

....................................

DANIEL WENANI

COMMITTEE MEMBER

...........................

RICHARD NYAMWALO

COMMITTEE MEMBER

SIGNED: FOR AND ON BEHALF OF THE UNION:

...................................

FRANCIS MURAGE

GENERAL SECRETARY

.............................

WILLIAM KIBIRI

ASST. GENERAL SECRETARY

..........................…….

GEORGE MOSETI

BRANCH SECRETARY-ELDORET

………………………

KENNEDY OKETCH

BRANCH SECRETARY - MOLO

...........................…

JULIUS MAINA

BR. SECRETARY – SOUTHERN NRB

……………………

GEOFFREY LOKPAPA

BR. SECRETARY - NAKURU

……………………………..

SAMSON MARUBE

BR. SECRETARY – NBI CENTRAL

……………………………..

MWANGI KINYUA

NATIONAL CHAIRMAN

IN THE PRESENCE OF:

........................................................

L.W. KARIUKI

HEAD OF INDUSTRIAL RELATIONS SERVICES

Signed at Nairobi this ...................... day of ............................................. 2013

APPENDIX A1

B: CLASSIFICATION AND GROUPING AS REVISED AND AGREED BETWEEN THE ASSOCIATION AND THE UNION AT A JOINT NEGOTIATING MEETING HELD ON 4TH NOVEMBER 2009 - EFFECTIVE DATE: 1ST JULY 2009

APPENDIX A2

APPENDIX A3

APPENDIX A4

APPENDIX A5

APPENDIX A6

APPENDIX A7

APPENDIX 8(A)

NOTE

(a) Production Charge Hand – shall be in charge of six or more employees – Group XI Mill Column refers

(b) General Clerk – shall be capable of carrying out the duties of any or all of the clerical duties for Groups VII and X –FOREST SECTION Administrative

column refers.

(c) Senior Tally Clerk – is a responsible person and supervises the work of Tally Clerks, etc

(d) Ungraded Artisan – carries out simple repairs and maintenance work. Should be capable of handling tools, having acquired limited skills in particular works or trades although deemed to be unqualified and not in possession of any trade test certificate – Group IV Mill Column refers