COWU

CENTRAL JOINT COUNCIL

AGREEMENT REACHED AT THE 7TH CENTRAL JOINT COUNCIL MEETING BETWEEN  COMMUNICATION WORKERS UNION (COWU)

 AND

 THE MANAGEMENT OF TELKOM KENYA LIMITED

37 items were discussed, agreed and signed by both parties on the 6th of May 2008.

DF: 6868

 6th May, 2008

MANAGING DIRECTOR

AGREEMENT REACHED AT THE 7TH CENTRAL JOINT COUNCIL MEETING BETWEEN 

COMMUNICATION WORKERS UNION (COWU)

AND

THE MANAGEMENT OF TELKOM KENYA LIMITED

The following items were discussed and agreement reached as follows:

1. MATERNITY LEAVE
It was agreed that the item be implemented as per the new Labour Laws.

2.  TERMINATION/RESIGNATION
It was agreed that the item be implemented in accordance with the new
Labour Laws.

3.  IN-PATIENT MEDICAL ENTITLEMENT
The Union demanded unconditional cover of the spouses and that emergency cases be treated at any nearest medical institution.
It was agreed that the current position be retained and cases of emergency be handled at the nearest recognized medical institution.

4.  OVERTIME
It was agreed that the item be retained in accordance with the Current Agreement.
5.  CAR AND MOTORCYCLE LOAN
 The Union demanded an increase in the rates as follows:
SCALES                    CURRENT         PROPOSED 
                                 KSHS               KSHS
8 -9                           350,000         1,000,000
10                             300,000            750,000
11                              300,000           600,000
It was agreed that the item be suspended and Management’s proposal for a replacement with Financial Institution loan through a check-off system be facilitated through issuances of a Personnel Circular.

6.  CAR OVERHAUL ADVANCE
The Union demanded an increase in the advance from Kshs.30,000 to Kshs.80,000

It was agreed that the item be suspended and Management’s proposal for a replacement with Financial Institution loan through a check-off system be facilitated through issuance of a Personnel Circular.

7.  DEVELOPMENT LOAN
The Union demanded that the loan granted to an employee shall not exceed six years salary and shall be paid direct to the applicant.
It was agreed that the item be suspended and Management’s Proposal for a replacement with Financial Institution loan through a check-off system be facilitated through issuance of a Personnel Circular.

8.  HOUSE PURCHASE LOAN
The Union demanded an increase in the rates as follows: SCALES
 CURRENT  PROPOSED
 KSHS  KSHS
8 - 9  1,400,000    2,000,000
10     1,200,000     1,800,000
11     1,000,000     1,500,000

It was agreed that the item be suspended and Management’s Proposal for a replacement with Financial Institution loan through a check-off system be facilitated through issuance of a Personnel Circular.

9.  DOMESTIC LOANS

The Union demanded an increase in the rates as follows:

ITEM          CURRENT (KSHS)     PROPOSED (KSHS)
FURNITURE         35,000                  50,000
REFRIGERATOR   25,000                  40,000
COOKER             25,000                   30,000
TELEVISION        50,000                   60,000

It was agreed that the item be suspended and Management’s Proposal for a replacement with Financial Institution loan through a check-off system be facilitated through issuance of a Personnel Circular.

10.  JOB EVALUATION

The Union demanded as follows:
· Job evaluation and grading for all the remaining staff
· That both the Union and Management be involved in the exercise.
The Management proposed that since the exercise was carried out by
consultants (Price Water House) and the report accepted/adopted by the Management, same be retained.

AGREED: It was agreed that the Management has accepted and implemented the Price Water House recommendations.

11.  STAFF EMPLOYED ON NIGHT DUTIES

The Union demanded that staff employed on night duties be paid at the rate of
ten (10) minutes for every hour worked.
The Management proposed to retain the current system.
It was agreed that the Policy continue to operate.

12.  SALARY ADVANCE
The Management proposed that since it was KRA requirement that any money advanced be recovered within three months, same be agreed subject to KRA rules.
It was agreed that same be retained subject to KRA requirement.

13.  HOUSE OWNERSHIP SCHEME
It was agreed that the item be suspended and Management’s Proposal for a replacement with Financial Institution loan through a check-off system be facilitated through issuance of a Personnel Circular.

14.  TRANSPORT POLICY
It was agreed that where official transport is not available especially for staff
on official transfer, alternative means will be sought,.

15.  TRAINING POLICY
It was agreed that training will be continued to be conducted but will be based on the training needs in relevant centers.

16.  HEALTH SAFETY AND ENVIRONMENT
It was agreed that the Company Policy will continue to operate but any changes deemed adequate will be incorporated and relevant HR circulars be issued and the Union given a copy of the policy.

17.  HIV/AIDS
It was agreed that the current Policy on HIV/AIDS is one of the best and same continue to operate and be further enhanced through issuance of relevant circulars and Union availed with a copy of the policy.

18. COUNSELLING SERVICES
The Union demanded that before disciplinary action is instituted to persistent offenders, they be counselled.

· It was agreed that:
The Company continues with current counseling services both from within and external
· Staff with behavioral difficulties be counseled before being punished.

19.  COMPANY SPORTS AND RECREATIONAL POLICY
The Union demanded rejuvenation in the existing Company Sports clubs and budgets for funds to be used in such recreation facilities and in addition grant paid leave of absence to players participating in approved sporting activities.
The Management proposed to retain the current policy and enhance upon the same.

It was agreed that the current policy be retained and Management enhance on
it.

20.  ACTING ALLOWANCE
Management proposed to retain the item as per existing Agreement
The Union had lowered its demand from 50% to 30%

AGREED: It was agreed that on satisfactory completion of acting period of five months, the employee be confirmed to higher post.

21.  SALARY
AGREED: It was agreed that salary for unionizable staff be increased at the rate of 24% percent across the board on consolidated package with effect from 1st April 2008.

22.  LEAVE TRAVELLING ALLOWANCE
The Union demanded an increase in the rates as follows:-

SCALES             CURRENT          PROPOSED
                           KSHS                 KSHS
8—9                  9,000               21,000
10-11                8,000               20,000

AGREED: It was agreed that the current rates be retained. It was further agreed that for staff deployed in hardship areas the first payment of the allowance be effected on consolidated package while the second half of the payment be paid on the anniversary date of the first appointment date as is applicable currently.

23.  OUT-PATIENT MEDICAL TREATMENT
The Union demanded an increase in then rates from Kshs.24,000 per year which includes Kshs.8,000 spectacle allowance to Kshs.40,000.
The Union lowered its demand from Kshs.40,000/= to Kshs.30,000.
Management proposed to retain the current rates.

AGREED: It was agreed that the rates be increased from the current
KShs.24,000/= per annum to KShs.28,000/= per annum.

24  BURIAL ALLOWANCE
The Union demanded that the allowance be increased from Kshs.20,000 to
Kshs.40,000 for adults and from Kshs.15,000 to Kshs.30,000 for children.
The Management proposed to retain the current rates.
AGREED: It was agreed that the current rates be retained

25.  NIGHT SUBSISTENCE ALLOWANCE WHILE ON DUTY IN KENYA

The Union demanded as follows:Scales
8 to 10 -Kshs.3,000 - from Kshs.1,700, 1,500 to 3,000, 1400 to 3000
and Scale 11 - Kshs.2,500 from Kshs.1,300

The Management proposed to retain the current rates.
AGREED: It was agreed that the rates be increased as follows:

SCALES                   CURRENT      AGREED
                                  KSHS           KSHS
8                              1,700           2,500
9                              1,500           2,500
10                            1,400           2,300
11                            1,300           2,300

27.  DRIVING ALLOWANCE
The Union demanded Kshs.3,000/= per month up from the current Kshs.800/=. Management proposed to retain the current rates of Kshs.1,800/=

AGREED: It was agreed that the current rates be retained.

28  DRIVERS ALLOWANCE
The Union demanded Kshs.3,000/= per month up from the current Kshs.800/=.
Management proposed to retain the current rates of Kshs.800/.

AGREED: It was agreed that the allowance be increased from KShs.800/= to  KShs.1,S00/= per month.

29.  HARDSHIP ALLOWANCE
The Union demanded Kshs.5,000/= up from the current fixed rate of Kshs.2,500/=.

30.  LUNCH ALLOWANCE FOR SPORTS MEN/WOMEN
The Union lowered its demand as follows:-

Participants half day release from Kshs.500/= to Kshs.300/= up from 100/=
Full day release from Kshs.800/= to Kshs.500/= up from Shs.250/
Officials attached to teams from Kshs.800/= to Kshs.500/ up from Shs.300/=-
(Full day)
Official (half day) from Kshs.600/= to Kshs.300/=
Management proposed to retain the current rates
AGREED: It was agreed that the current rates be retained as

Management gives consideration on enhancing the same.

31.  MILEAGE ALLOWANCE WHILE ON DUTY
The Union demanded as follows:-
       
                                                  CURRENT                     PROPOSED
ENGINE CAPACITY                      KSHS.                         KSHS.
1701cc & ABOVE                        32.75                          60.00
1501 cc — 1700 cc                     28.75                          45.00
1301 cc — 1500 cc                     25.70                          50.00
1201 cc — 1300 cc                     23.70                          35.00
1200 cc & Below                        22.30                          30.00
MOTOCYCLE&SCOOTERS           15.95                          25.00

Management proposed to implement the current “AA” rates.

AGREED: It was agreed that the current Auto Mobile Association of Kenya (AA) rates be adopted.

32.  MAINTENANCE ALLOWANCE ON TRANSFER
The Union demanded an increase on the rates as proposed on night
subsistence allowance item No.10 and an increase in the number of days from
15 to 30 days.

Management proposed to retain the current rates.
AGREED: It was agreed that the allowance be increased in-line with the revised rates of night subsistence allowance. It was further agreed that the current payment period of fifteen (15) days be retained.

33.  RISK ALLOWANCE
The Union demanded an increase to Kshs.2,000 per month
Management proposed to retain the current rate of Kshs.1,200 per month.
AGREED: It was agreed that the allowance be increased from the current
KShs.1,200/= to KShs.2,000/= per month.

34.  STAFF RATIONALIZATION
AGREED: It was agreed that the Management and the Union will discuss and agree on modalities, packages and implementation process before any further staff rationalization.

35.  CENTRAL JOINT COUNCIL SITTING ALLOWANCE
AGREED: It was agreed that the allowance be paid at a competitive market rate.

36.  UNION SUBSCRIPTION
AGREED: It was agreed that an agency fee according to the newly introduced
Labour Relations Act No.14 of 2007 section 49 be effected.

37.  EFFECTIVE DATE
The Union demanded that the effective date be 15t July 2007 the date the Agreement was due.

Management proposed to have the effective date as 1st May 2008.
AGREED: This agreement takes effect from 15t April 2008 and covers a period of one year i.e. 315t March 2009. Other terms and conditions of service, as agreed in the previous Collective Bargaining Agreements (CBA) and not covered in this Agreement, shall continue to apply.

Dated and signed this 6th day of May, 2008
  

J.K. TANUI

CHIEF HUMAN RESOURCES OFFICER

OFFICIAL SIDE LEADER

GENERAL SCRETARY (COWU)

STAFF SIDE LEADER

APOLLO NZANO
CHAIRMAN

H.I. RWEYA
OFFICIAL SIDE SECRETARY

STAFF SIDE SECRETARY