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MEMORANDUM OF UNDERSTANDING BETWEEN NIEN HSING INTERNATIONAL [PTY] LTD AND C&Y GARMENTS [herein after referred as 'the employer”] and FACTORY WORKERS UNION [FAWU] [herein after referred as “the union”]

1. PREAMBLE

The purpose of this Memorandum of Understanding is to regulate the relationship between the Employer and the Union, to foster fair and equitable worker/management relationship.

2. GENERAL PRINCIPLES

The parties to this Memorandum of Understanding commit themselves to abide by the procedures set out in this Memorandum of Understanding and any other agreements entered into between the Union and the Employer. In the spirit of respect and mutual understanding the parties shall use their best endeavors to ensure that this Memorandum of Understanding is fully understood by their respective constituencies.

3. DEDUCTION OF TRADE UNION SUBSCRIPTION

3.1 The Employer agrees to deduct the Union’s membership subscriptions from the Union’s members to the union provided that such deductions are authorize by members in writing in the prescribed form and in accordance with the relevant legislation.

3.2 The union subscriptions will be transmitted to the Union not later than the 10th of the following month in which deductions were made, together with a list of names and clock numbers of members, on whose behalf deductions were made in respect of each individual.

3.3 The Employer will deduct a 5% administration levy on the overall monthly amount before transmission to the Union.

3.4 The Employer shall cease to deduct subscription from the Union members’ wages upon written notice by a member to the Employer instructing the Employer to cancel the deduction against his/her wages. The Union member shall give the Employer notice on or before die 15th of the month the deductions are to stop. However, if the majority of the members are not satisfied with their subscriptions to the Union, the Employer has the right to stop those deductions to the Union.

3.5 The Employer shall not be responsible for the collection of any subscriptions for which by any reason arrears may arise except through the Employer’s own fault.

3.6 In the event of any change in the rate of Union subscriptions the Union will notify the Employer about the changes in writing one month before the intended change is to takes place.

4. SHOP STEWARDS

4.1 Election of the Shop Stewards

4.1.1 The election of the Shop Stewards shall be conducted in terms of the Union Constitution.

4.1.2 The number of Shop Stewards and the constituencies shall not more than two hundred and fifty [250] workers per Shop Steward,

4.1.3 The Union will notify the Employer of the name(s) and or alternates and constituencies the said shop steward represents after election.

4.1.4 In the event of a vacancy occurring, by -elections shall be held in accordance with the provision of clause 4.1,1 the then elected Shop Steward(s) shall hold the Office until the next Shop Stewards election.

4.1.5 A Shop Steward may not be transferred out of his/her Constituency without the Union having first been notified in writing of the transfer. The Union may object on good cause to the shop steward’s transfer.

4.2 Shop Stewards Rights and Duties

4.2.1 The Employer shall recognize the rights of the Shop Stewards elected in terms of this Memorandum of Understanding to represent the members and negotiate on their behalf in terms of this Memorandum of Understanding, company rules and regulations and the Labour Code Order 1992.

4.2.2 Shop Stewards shall be entitled to:

4.2.2.1 Carry out their duties in terms of this Memorandum of Understanding company rules and regulations and the Labour Code Order 1992,

4.2.2.2 Investigate and endeavor to resolve grievances of members through procedures in this Memorandum of Understanding company rules and regulations and the Labour Code Order 1992,

4.2.2.3 Hold General Meetings with members of the Union during at any time other than normal working hours, the Employer shall provide reasonable facilities for such meetings.

4.2.2.4 Invite Union Officials in meetings or General Meetings by prior arrangement with the Employer in terms of this Memorandum of Understanding company rules and regulations and the Labour Code Order 1992.

4.2.2.5 Be granted permission by the immediate supervisor before leaving their place of work for a reasonable time to attend to grievances raised by their members within their Constituency, which permission shall not be unreasonably withheld,

4.2.2.6 Shop Stewards shall be provided with reasonable time to fulfill their duties in terms of this Memorandum of Understanding company rules and regulations and the Labour Code Order 1992.

4.3 Shop Stewards Time Off

4.3.1Shop Stewards shall, with the consent of the Employer be entitled to reasonable amount of time off work with pay, during normal working hours, for the purpose of receiving education or training which permission shall not be unreasonably withheld. The Union shall give two (2) weeks notice to the Employer of the proposed agenda of the training.

4.4 Meetings

4.4.1 The party requesting a meeting shall provide the other party with five [5] working days notice of the meeting together with a proposed agenda, only specific items may be included on such agenda, there shall be no general items.

4.4.2 Should either party be unable to attend on the day in question, the next possible date shall be agreed by the parties.

4.5 Dispute Procedure

4.5.1 In the event of either party declaring dispute, the party declaring dispute shall notify the other party in writing thereof stating the nature of dispute and the proposed terms of settlement.

4.5.2 Within five [5] working days of receipt of the declaration of the dispute, the parties shall arrange a meeting in order to consider and attempt to resolve the dispute.

4.5.3 The parties shall arrange further meetings as and when agreed upon.

4.5.4 Should the parties fail to resolve the dispute, either party may require that the dispute be referred to an independent Mediator who both parties will agree upon,

4.5.5 The parties shall jointly arrange the date, time and place of the mediation.

4.5.6 Should the dispute remain unresolved and should either party wish to take the matter further, such party shall invoke the dispute resolution mechanisms cited in the Labour Code Order 1992 or any other law.

5. DISPUTE OF RIGHTS

5.1 A Disputes of Right as defined in the Labour Code Order 1992 as amended shall be resolved by internal remedies as prescribed in the Employer’s regulations. Where a party is not certified with the outcome of the internal dispute resolutions (employers policies) then that party can refer the matter to be resolved as per the Labour Code Order # 24 of 1992 as amended.

6. DISPUTE OF INTEREST

6.1 A Disputes of Interest as defined in the Labour Code Order 1992 as amended shall be resolved by internal remedies as prescribed m the Employer’s regulations. Where a party is not certified with the outcome of the internal dispute resolutions (employers policies) then that party can refer the matter to be resolved as per the Labour Code Order # 24 of 1992 as amended.

7. PEACE OBLIGATION

7.1 The Union undertakes not. to support, instigate, encourage or organize any industrial action against the Company, its products or services and to take all reasonable steps to ensure that members do not partake in such industrial action, contrary to the provisions of the dispute settlement procedures contained herein or any other law. 

7.2 In the event of either party being in breach of clause 7.1, that part)' shall be afforded a period of twenty four (24) hours to rectify'such breach.

8. UNION’S UNDERTAKINGS

The Union acknowledges that Shop Stewards are first and foremost employees of the Company and will comply with the Rules and Regulations of the Company.

9. COMPANY’S OBLIGATION

It is duty of the Company to maintain discipline amongst its employees in terms of its Rules and Regulations,

10. TERMINATION OF MEMORANDUM OF UNDERSTANDING

10.1 This Memorandum of Understanding shall come to operation from the date of signature hereof and shall remain operational unless:-

i. Either party gives one [1] month notice to other of its intention to terminate the Memorandum of Understanding on good cause;

ii. Where either party contravenes the provisions of this memorandum of understanding or any other law, this memorandum can be terminated without notice.

11. SIGNATURES

FOR THE COMPANY

FOR THE UNION

ADDENDUM TO THE MEMORANDUM OF UNDERSTANDING BETWEEN NIEN HSING GROUP AND FAWU

Having negotiated improvements on the existing Memorandum of Understanding

between the parties. It is hereby agreed that the following sections/paragraphs are

amended as follows;

POINT 3.2

“Union dues from its members shall be paid over to the Union or collected by an

authorized Union Official on the last day of the month or on last Friday of the month

being pay day to be followed not later than Wednesday of the following week by a

list of names and work numbers of members showing deductions made and the total

thereof.”

2.

POINT 3.3

'"The Employer may deduct a 2% administration levy on the total amount deducted as union dues,”

3.

POINT 3.4

‘The Employer shall deduct union dues monthly from salary/wages of union

members on submission of an authorization form along the attached format, until

such rime as he receives a copy of a withdrawal form addressed to the Union and

copied to management to be effective thirty (30) days after receipt of such notice of

withdrawal as per attached format/’

4.

POINT 4

The employer undertakes to consult with the Union prior to transferring a

shopsteward from one work to another where such transfer removes that shopsteward

from her constituency to another.

THUS DONE AT MASERU THIS 10th DAY OF MARCH, 2006.

FOR THE EMPLOYER

FOR THE UNION

Nien Hsing International [PTY] LTD, C&Y Garments - 2006

Start date: → 2006-03-10
End date: → Not specified
Name industry: → Manufacturing
Name industry: → Manufacture of textiles
Public/private sector: → In the private sector
Concluded by:
Name company: → Nien Hsing International [PTY] LTD, C&Y Garments
Names trade unions: → Factory Workers Union [FAWU]
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