The Republic of Uganda Collective Bargaining Agreement Between and on Terms and Conditions

THE REPUBLIC OF UGANDA COLLECTIVE BARGAINING AGREEMENT BETWEEN …AND …ON TERMS AND CONDITIONS OF SERVICE FOR THE UNIONISABLE EMPLOYEES OF THE COMPANY

ARTICLE 1: AFFIRMATION

a) This Collective Bargaining Agreement is made between (name of the Employer) here-in-after referred to as “the Company” and(name of the Trade Union), here-in-after referred to as “the Union”.

b) This Agreement shall govern the Terms and Conditions of Service of all unionisable employees of the Company.

c) In entering this agreement it is mutually agreed that it is in the interest of (…) and the (...) to have stability of operations and continuous reliable employment for the mutual benefit of employees, management and all stakeholders. To attain this objective, it requires expeditious and peaceful resolution of issues that may arise in the course of management/employee relations. Both parties therefore hereby agree to resolve any differences that so arise, through the process of collective bargaining and/or as may be otherwise agreed between both parties.

What the law says:

The Constitution of Uganda and the Labor Unions Act allow workers to bargain collectively through their representatives.

Collective agreement is a written agreement relating to the terms and conditions of employment concluded between one or more labour unions and one or more employers, or between one or more labour unions and one or more employer's organisation.

A person who acts against these provisions commits an offence and is liable to a fine up to 24 currency points or imprisonment up to one year or both.

The terms of registered collective agreement are incorporated in the employment contract of the workers.

Source: §40 of the Constitution of Uganda 1995 (revised in 2005); §3 of the Labour Union Act 2006, §3 &38-39 of the Labour Disputes (Arbitration and Settlement) Act 2006

ARTICLE 2 - COMMITMENTS AND OBJECTIVES

a) In concluding the agreement, both parties hereto agree to be always guided by the following:

i. Attaining the improved workers’ working conditions and ensuring the protection of the environment.

ii. Attaining continuous improvement in workers’ earnings and generally to safe guard the social and economic objectives of the workers.

iii. Safe guarding the interests of the Company particularly with regard to improvements in productivity and efficiency.

iv. Taking into account the workers’ standard of living.

v. Enable the Company to create a good working environment for its employees and to regulate and promote good working relations with the union, the company and all the employees.

vi. To enable ...... to attract and retain high quality employees.

vii. To provide a basis for proper Human Resources Management and development.

b)In the event of any difference in the interpretation of any part of this agreement, such matters shall be settled through the Grievance Procedure or in accordance with the Labour Disputes (Arbitration and Settlement) Act and in accordance with any similar legislation which may ensue.

c)All disputes shall be dealt with in accordance with the machinery laid down in this agreement and the Recognition Agreement between the Company and the Union.

What the law says:

Signed agreement must be lodged with the Registrar of Labour Unions within 28 days from the date the agreement is made.

Source: §40 of the Constitution of Uganda 1995 (revised in 2005); §3 of the Labour Union Act 2006, §3 &38-39 of the Labour Disputes (Arbitration and Settlement) Act 2006

ARTICLE 3:ENGAGEMENT

a) All vacancies in the Company shall be advertised internally followed by external advertising where no suitable candidate has been located through the internal advertisements.

b) After attending an interview the successful candidate will be engaged subject to passing a pre-placement medical examination by the Company doctor.

c) Upon engagement a letter of appointment shall be given to the successful candidate. The letter shall briefly describe the appointee’s duties, salary and other terms and conditions of service as appropriate. The appointee shall be expected to notify the Company of his/her acceptance of the appointment within two weeks from the date of receiving the letter of appointment.

What the law says:

Article 35 (1) of the Employment Act states that “every person employing an employee shall notify the district labour officer of any employment vacancy whenever it occurs

ARTICLE 4:CATEGORIES OF EMPLOYMENT

The categories of employment into the service of the Company are as follows:

a) Permanent Employee

Is an employee who has been confirmed in his/her appointment upon successful completion of his/her probation period at a salary within the Company’s salary scales.

b) Contract Employee

Is an employee engaged for a specific period and terms provided for in the contract. No contract should exceed 6 months without review and renewal

c) Seconded Employee

Is an employee engaged under an agreement between the Company and his/her principal employer.

d) Temporary Employees

Is an employee engaged under a letter of temporary appointment to handle work whose volume or nature in the medium term may not necessitate permanent employment. No contract should exceed 6 months without review and renewal.If there are suitable vacancies, such an employee should be taken on by the Company, subject to successfully passing the requirements of Article 3.

e) Casual Employee

Is an employee engaged under a letter of casual appointment and paid a weekly wage to handle work whose volume or nature in the short term would not necessitate permanent employment. No contract should exceed 6 months without review and renewal. If there are suitable vacancies, such an employee should be taken on by the Company, subject to successfully passing the requirements of Article 3.

What the law says:

Article 25 of the Employment Act recognizes both oral and written contracts for various categories of employees. Casual employee is defined in article 2 of the Employment Act as “a person who works on a daily or hourly basis where payment of wages is due after the completion of each day’s work”.

ARTICLE 5:PROBATION

a) A newly recruited employee will be required to serve a probation period of three (3) months. During this period the Section Head shall assess the employee’s performance and suitability for confirmation.

b) During the probationary period either party may terminate employment in accordance with the termination clause herein.

c) If the Company finds it necessary to extend the probation period of the employee, then this period shall not exceed an additional six months.

What the law says:

Article 67 (2) of the Employment Act provides that the maximum length of a probationary contract is six months.

ARTICLE 6:CONFIRMATION

The Human Resources Officer shall seek confirmation of an employee on probation at least one month before the date of expiration of the probation. Should the Company not raise any case against the confirmation of an employee by the date on which his/her probation expires, the employee shall be deemed confirmed in his/her employment and shall start enjoying all benefits due to a permanent employee of the Company with effect from the due date.

What the law says:

Article 67 (2) of the Employment Act provides that the maximum length of a probationary contract is six months. This means that an employee should be confirmed or advised to leave after the expiry of the probationary period.

ARTICLE 7:INDUCTION

a) A newly recruited employee shall be given an appropriate induction course to be followed by necessary on-the job training and/or other courses of training that will enable the employee to perform his/her duties satisfactorily.

b) The Human Resources Officer shall ensure that this procedure is carried out promptly before the employee commences his/her duties.

What the law says:

Article 2 of the Employment Act provides that an employer should take all the necessary measures to ensure that an employee is taught and acquires the knowledge and skills of that industry.

ARTICLE 8:TRAINING

a)The Company shall draw up a Training and Development programme and Policy for all employees.

b)The training programme shall take into consideration the promotional requirements and aspirations of employees.

c) The company shall provide opportunities for apprenticeship

What the law says:

Article 84 of the Employment Act provides that the continuity of employment of an employee shall not be affected by study or education leave.

ARTICLE 9:PROMOTION

a)Upon availability of a vacancy, the Company shall first advertise the same internally.

b)Promotion shall be based on merit and shall be open to all employees of the Company.

c)The Human Resources Officer shall inform the concerned employee about the promotion in writing, stating the effective date.

What the law says:

Article 6 of the Employment Act prohibits discrimination of any kind so an employer should take this into account while undertaking promotion.

ARTICLE 10: PERFORMANCE MANAGEMENT PROGRAMME (PMP)

a) The Company shall institute and maintain a Performance Management Programme (PMP) that shall, among other objectives, aim at improving the employee’s performance and contribution to the Company.

b) At the beginning of each year, the Company Objectives shall be cascaded through the organisation and by end of Q1, all employees will have discussed and agreed their objectives for the year with their Supervisor. These objectives will be put on a Staff Appraisal Form

c) At the end of the year, the Supervisor will complete the employee’s Staff Appraisal Form and will hold a meeting with the employee where the Assessment will be discussed and the employee will be given the opportunity to comment and record in writing on the Appraisal form their views on the appraisal. The appraisal shall be used to determine the employees Annual Bonus and, if appropriate, any merit increase

What the law says:

Article 66 of the Employment Act denotes that performance is a key issue and may form the basis for dismissal of an employee

ARTICLE 11: SALARIES AND WAGES

a.The existing salaries/wages of employees in salary grades ….. to ….. and …… and ….. shall be increased by 13.5% across the board.

b.The revised basic salaries/wages as per (a) above, will take effect from 1st July ……, for a period of two years i.e. up to 30th June ………….

c.That arrears will also be paid in respect of housing allowance and overtime for eligible employees in accordance with (a) above with effect from….

d) To ensure the principle of equal work for equal pay irrespective of one’s race, sex, creed and colour.

What the law says:

Article 40 of the Employment Act provides that it is the duty of the employer to provide work. Article 41 of the same Act provides that employees are entitled to their wages once they have worked and various payment options are acceptable.

ARTICLE 12: GENERAL INCREASE

a)All Employees shall receive an annual general increase within their salary scales unless stopped for disciplinary action. Any such action taken shall be conveyed in writing to the concerned employee. The annual General Increase will be determined by the Company undertaking a market review of the labour rates prevailing in the local industry.

b)Merit salary awards for exemplary performance may be granted to an employee at the discretion of the Company and employee shall be informed of any such merit awards in writing.

What the law says:

Articles 40 to 50 of the Employment Act addresses various issues related to wages. Salary increment is not directly addressed which implies that it is a matter of social dialogue between the employer and the workers.

ARTICLE 13: ANNUAL BONUS

Employees in continuous service with the employer shall qualify to get bonus at the rate of 7% of the employee’s total monthly earnings applicable to an employee that has worked with the company for a period of 4 to 9 years and 9% for employees that have worked for a Period above 10 years

What the law says:

Article 90 of the Employment Act prohibits an employer from using bonuses as part of severance pay.

ARTICLE 14: HOURS AND PLACE OF WORK

a) Administration and Finance Staff

i.) Administration and Finance are required to work a 5 day 40 hour week

b) Operations Staff

i.) Operations Staff are required to work a 5 day 45hour week

ii.) Fresh Handling operates in the Aviation transportation industry where the ability to provide continuous 24 hour coverage, 365 days per year may be required in response to operational needs.

iii.) Due to the size of the Company and the varying nature of the business operations cycle, the Company and Union recognizes that establishing a regular 24 hour shift pattern is neither efficient nor cost effective.

iv.) To meet the demands of the business, a flexible shift pattern has been designed as follows:

v.) All Operations staff are rotated through the Early Shift and the Afternoon shift on a rolling cycle.

a) The Early Shift is from 8am – 5pm with one hour off for lunch

b) The Afternoon shift is from 2pm to the time the last plane is loaded and has departed, with one hour off for supper.

vi.) Due to the variation in the plane departures, it is not possible to fix a standard finish time to the Afternoon Shift. However, the Shift Roster will ensure:

a) Shift workers, will be rostered according to the operational requirements of the Company and shall enjoy two days’ rest per week.

b) The standard working hours shall not, on average, be more than ten (10) hours per day or fortyfive (45) hours per week spread over a 3 week cycle.

c) No employee will work more than fifty six (56) hours in any one week

What the law says:

Article 53 of the Employment Act provides for a maximum of 48 hours per week or 10 hours pay day and 56 hours per week.

ARTICLE 15: OVERTIME AND PAYMENTS

a)Hours of work shall be as set out in article 13 of this Agreement.

b)Overtime work is a practice that should be discouraged. However, where an employee works more than an average of 45 hours per week spread over a 3 week cycle, overtime payment will be 50% on top of the basic hourly rate.

What the law says:

Article 53 of the Employment Act provides that overtime shall be paid at one and half times the normal rate or two times the normal rate in case it is worked during a gazetted public holiday.

ARTICLE 16: RATES OF PAY/SALARY SCALES

Each employee shall receive the rate of pay corresponding to the salary scale of his/her grade as designated by the Company and the salary scales shall be amended from time to time. (See Appendix A)

What the law says:

ARTICLE 17: LEAVE GENERAL

a)Leave is authorized absence from duty and shall be taken by all staff whenever due. Leave may be classified as: Annual, Sick, Maternity, Paternity, Compassionate and Unpaid.

b)All employees of the Company are entitled to leave.

c)Management shall, in consultation with the employees, schedule annual leave and display the schedule for information of employees.

What the law says:

Articles 54 to 57 (1) of the Employment Act provides for various kinds of leave including annual, sick, maternity, paternity, compassionate and unpaid.

ARTICLE 18: ANNUAL LEAVE

a)Every employee of the Company shall be entitled to a normal annual leave of 21 working days per year.

b)No employee shall be allowed to accumulate leave beyond the year of entitlement, except where such accumulation is within the limits of the laws of the country.

What the law says:

Article 54 of the Employment Act provides for 21 working days of annual leave.

ARTICLE 19: ANNUAL LEAVE ALLOWANCE

An employee proceeding on annual leave shall be entitled to payment of an amount of money equal to 50% of his/her monthly salary in addition to the normal salary payments for that month.

What the law says:

Article 54 of the Employment Act states that an employee is entitled to full pay while on annual leave.

ARTICLE 20: SICK LEAVE

An employee who, on account of sickness is unable to report on duty for continuous period shall be entitled to the following:

i.) Full salary for the first two (2) months.

ii.) Half salary for the next month following (i) above.

iii.) Following (ii) above, Management may consider terminating the employee’s services with the Company on medical grounds after consulting the Company Doctor, an Employee’s nominated Doctor and in the case of any dispute, a Government appointed Doctor

What the law says:

Article 55 of the Employment Act provides an employee is entitled to full pay for the first month of absence and termination may be considered by an employer upon the expiration of the second month the sickness of an employee continues.

ARTICLE 21: SICKNESS WHILE ON LEAVE

a) Sickness contracted during leave, will not affect the leave but at the expiry of the leave the days of absence necessitated by the sickness if certified by the Company Doctor will be treated as sick leave.