INDUSTRIAL RELATIONS MACHINERY 2008 MEMORANDUM OF RECOGNITION AN1) COLLECTIVE BARGAINING AGREEMENT MADE BETWEEN RIFT VALLEY RAILWAYS (UGANDA) LTD (RVR U) HEREAFTER REFERRED TO AS THE COMPANY OF THE FIRST PARTY AND UGANDA RAILWAYS WORKERS UNION (URWU) H EREA FTER REFERREI) TO AS THE UNION OF THE SECONI) PARTY

 

  

ARTICLE 1: SCOPE AND INSTRUMENTS

i. This agreement made between Rift Valley Railways (Uganda) Ltd (RVR-U) and Uganda Railway Workers’ Union (URWU) embodies the spirit and intent of the Laws of Uganda The Uganda Constriction of 1995, Employment Act 2006, The Labour Union Act 2006, The Labour Dispute (Arbitration and Settlement) Act 2006, Occupational Safety and Health Act 2006, Workmen’s Compensation Act 2000, RVR(U) Human Resource Manual 2007, and Partnership principles in formulating formal Trade Union Recognition and Collective Bargaining underpinned by clear guiding principles.

ii. Whilst the wording of this agreement is most important it that the spirit and intention of those involved will be importance, any strengthening of existing ties will be readily accepted by both parties.

ARTICLE 2: OBJECTIVES:

i. Both RVR (U) and URWU are committed to a partnership that will deliver.

ii. Both RVR (U) and URWU share the common objective of ensuring excellent workplace relations in order to deliver the best quality service to customers.

iii. Both RVR (U) and URWU shall be mindful that RVR(U) conducts its business within a highly competitive sector and shall need to respond efficiently and effectively to changes in the market

iv. Both RVR (U) and URWU shall be fully committed to the success of the customer and shall work together to ensure that the company continues to grow its operations.

v. Both RVR (U) and URWU accept that good industrial relations are primarily about people rather than processes. To this end, both parties will facilitate the maximum degree of informal contact and exchange of information in order to anticipate and deal with issues as speedily as possible.

vi. Both RVR (U) and URWU seek to enhance the quality of working life and to encourage an atmosphere where diversity in the workforce is valued.

ARTICLE 3: RECOGNITION:

i. RVR (U) recognizes URWU as official representative of unionized RVR employees.

ii. RVR(U) recognizes the rights of RVR(U) unionized staff to belong to URWU and the right of URWU as official representative of RVR(U) unionized employees.

iii. The URWU recognizes the rights and responsibility of management of the Company in the best interest of shareholders, and employees.

iv. RVR(U) agrees to negotiate and discuss with URWU all issues that affect the terms and conditions of service of their unionized members.

v. All negotiations and discussions agreed upon between RVR(U) Management and URWU shall be conducted by mandated party representatives.

vi. The parties to this agreement agree that prior notification shall be made to other patty on mandated representatives who shall participate in Collective Bargaining.

vii. RVR(U) commits to ensuring that URWU representation of interests of unionized staff are fully considered and taken into account and all procedures involved in discussing and finalizing such staff interests shall be honoured according to the relevant laws.

viii.RVR(U) shall deduct from salaries/wages of unionized staff their monthly union contributions and have it remitted to URWU in accordance with the Check - Off System arrangement.

ix. RVR(U) shall notify URWU of new joiners and leavers. In case of new employees, management shall inform The National General Secretary of URWU of such employees as part of the routine induction procedures.

x. RVR(U) will make venue facilities available to employees who become URWU representatives as and when necessary for the purpose of union meetings.

ARTICLE 4: THE PARTNERSHIP:

i. The parties recognize that the needs and requirements of customers and shareholders will constantly evolve and become more sophisticated. It is therefore agreed that RVR (U) and URWU shall work jointly to ensure that RVR(U) successfully meets these changing requirements as well as adapting quickly and effectively to technological change.

ii. The URWU is committed to a positive attitude to change and where necessary regular joint dialogue shall take place regarding the Company’s business development plans.

iii. The URWU shall be consulted on all contractual terms and conditions of service of unionized staff, including salaries/wages, pensions, overtime, attendance arrangements, job security, redundancy, safety, and any other related employment issues in accordance with applicable legislation.

iv. In reaching this agreement, both parties agree that excellent industrial and human relations are necessary for the provision of excellent service to RVR(U) stakeholders.

ARTICLE 5: COLLECTIVE BARGAINING

i. Both management and Union shall form a Negotiating Committee that will be responsible for Collective Bargaining in respect to wages, salaries and other terms and conditions of employment for unionized staff.

ii. Both Management and Union shall observe the need for good industrial relations in the Company and ensure a conducive working environment.

iii. The Company and the Union undertake that negotiations and consultations between the Company and the Union on behalf of the unionized staff shall be conducted in accordance with this Agreement

iv. The union shall be represented by not more than six (6) members of whom The Union National General Secretary shag be The Union Spokesperson.

v. Management shall be represented by at least six (6) members of whom The Human Resource Manager shall be the The Spokesperson.

PRTICLE 6: BARGAINING PROCEDURES

i. The Negotiating Committee composed of management and u1Ofl representatives shall meet every four months to deal with issues of unionized staff.

ii. Either party may request the Chairman to convene a Special or Consultative meeting to deal with urgent issues that affect unionized staff which may arise from time to time.

iii. Matters for discussion at meetings other than Individual or collective grievance between the Company and the Union shall be submitted to the Committee Secretary not less than fourteen days prior to the date of the meeting.

iv. On receipt of the memoranda from the parties, the Secretary shall draw an agenda for the meeting to be communicated to the members of the Committee.

v. Any matters other than those on the agenda shall not be considered at the relevant meeting unless it is with the consent of the Chairman or both parties.

vi. Minutes f meetings shall be circulated to members within five (5) working days of the meeting.

vii. Both parties agree that agreement(s) reached during negotiations shall be recognized by both parties and put in writing and shall become binding between employees and the Company over employees’ terms and conditions of service.

viii. Should a party decide to give information to the press, radio or any media prior or during any discussion, negotiation or arbitration between the parties, prior notice of two (2) days should be given to the other party asking it to give its consent in writing.

ix.There shall be a Chairman and Secretary. The Chairman shall come from RVR(U) the Secretary from the Union. The Chairman shall be responsible for chairing meetings and the Secretary for writing minutes and distributing them to members.

ATICLE 7: STRIKES AND LOCKOUTS

Both RVR(U) and URWU undertake that, there shall be no strikes/lockouts or any attempt to hinder the operations of the Company in respect of any matter under dispute until full negotiating procedure for settlement of disputes as laid down in Labour Disputes (Arbitration and Settlement) Act 2006 have been exhausted and all necessary conditions met.

ARTICLE 8: DISPUTE SETTLEMENT

For all cases of Trade Disputes, both parties recognize the importance of settling disputes as expeditiously as possible according to the laws of Uganda and The Human Resource Manual.

ARTICLE 9: CHECK OFF SYSTEM

The Company shall institute and maintain Check Off System for purposes of effecting monthly deductions of subscription fees from unionized staff and remitting it to URWU by cheque. The Company shall continue remitting unionized staff monthly subscription fees as long as the agreement (consent) signed between union and its member(s) is still in operation.

ARTICLE 10: AMENDMEMT

Any amendment to this agreement shall be jointly determined and agreed upon by both parties. No party shall review, amend or alter this agreement without the consent of the other party and if it so happens will be null and void.

ARTICLE 11: PROVISO

It is hereby recognized and declared that all matters provided for in this Agreement shall be the subject to the provisions of the relevant laws of Uganda and Company rules from time to time as may be amended.

ARTICLE 12: EFFECTIVE DATE

This Agreement shall come into effect from the 1st December 2008 until both parties determine otherwise1 The parties recognize their mutual obligations during the life of this Agreement whilst in force.

ARTICLE 13: SIGNATORIES

IN WITNESS HEREOF the Representatives of the parties hereto have appended their signatures and seals this------------------ day of ------------------------------- 2008

SIGNED FOR AND ON BEHALF OF:

RIFT VALLEY RAILWAYS (Uganda) LTD UGANDA RAILWAY WORKERS’ UNION

NAME: CHRISTINA S. WADULO

FOR MANAGING; DIRECTOR

NAME: SAMUEL A. WUMA

NATIONAL GENERAL SECRETARY

AGREEMENT FOR REDUNDANCY PAY OF RVR (U) STAFF BETWEEN RIFT VALLEY RAILWAYS (U) LTD AND UGANDA RAILWAY WORKERS UNION

PREAMBLE

WHEREAS, the parties have held a comprehensive meeting this 27th November, 2012 in regard to the redundancy plan initiated by RVRU.

WHEREAS, both parties agree that the meeting was held in pursuit of a lasting solution with intent to arrive at a middle point for the redundancy package.

IT IS NOW AGREED THEREFORE;

1.

The redundancy packages for all affected staff will be computed as follows;

a) Two (2) month’s salary for every year of service.

b) Payment in lieu of notice in line with the Employment Act.

d) Repatriation allowance at a rate of Ush. 3.000/= per km from your current duty station to the Headquarters of your registered District and a lump sum of Ush. 300,000/= from the registered District Headquarters to your home.

e) Golden handshake at a rate of Ush. 1,450,000/=.

f) Payment of your Alexander Forbes Retirement Fund savings in accordance with the rules governing the fund.

g) Training in Business up skilling and counseling.

h) A certificate of service.

2.

Both parties agree that the package pay out in this agreement shall apply to all redundancies implemented by RVR (U). For the avoidance of doubt, employees who opt for early voluntary retirement and/or normal retirement shall be paid in accordance with the same formula applicable to redundancy.

3.

That the effective date of this agreement is 27 November, 2012.

Dated at Kampala this ____ day of November, 2012

_______________________________________________

Helen Mbugua

Chief Human Resource Officer, RVR

Vincent Makombe

President, URWU

________________________________________________

Mark Rumanyika

General Manager – Western, RVR

Victor Byemaro

General Secretary URWU

________________________________________________________

Raymond Adriko

Federation of Uganda Employers (FUE)

Peter Christopher Werikhe

National Organization of Trade unions (NOTU)

INTERIM PARTIAL COLLECTIVE BARGAINING AGREEMENT RIFT VALLEY RAILWAYS (U) LTD (RVRU) AND UGANDA RAILWAYS WORKERS UNION (URWU)

Whereas the parties are engaged in the process of negotiating a CBA with the union having forwarded a draft CBA on 9th July, 2011 and RVRU having mad its comments on 14th July, 2011

Whereas in the interim and before finalization of the draft CBA referred to herein above the parties have reached an agreement on Job Evaluation and grading implementation together with an average of 15% salary review/increment.

The parties agree as follows:

1.

That Job Evaluation and Grading exercise be implemented by management to give effect to:

a.An approved job grading structure for all staff

b.An approved salary structure for all staff

2.

4.

Both parties agree that the increments granted under this agreement shall, be regarded as annual salary increment and will be treated in the same manner as they would have been, had they been agreed following fully fledged CBA negotiations.

5.

The effective date of above agreement shall be 1st March, 2012 and arrears of the March salary to be paid alongside the salary of the month of April 2012.

Dated the 3rd April 2012

Signed -------------------------

_______________________

Dunca Onyango

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