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RECOGNITION AND PROCEDURAL AGREEMENT Between CBI LOW VOLTAGE - LESOTHO and FACTORY WORKERS UNION (FAWU)

1. INTENTIONS

The parties to this agreement agree to regulate and formalise the relationship between them at the Company's premises according to the terms and conditions as set out in this agreement. They further wish to regulate all negotiations on all terms and conditions of employment of Union members at the premises. The Union will represent its members in terms of this agreement.

(The intention of the parties hereinafter will be referred to as the “subject Matter of the agreement).

2. DEFINITIONS

2.1 “The Premises” shall mean the business premises of the Company, situated at Site 22, Ha Nyenye, Industrial Site, Maputsoe, Lesotho.

2.2 “Manager” shall mean any person carrying on management or supervisory responsibilities . “Managerial position” shall have corresponding meaning.

2.3 “Union members” shall mean employees of the Company employed at its premises who are members of the Union, and in good standing.

2.4 “Constituency” shall have the meaning attributed to it in Annexure A and covering all members.

2.5 “Shop steward shall mean a shop steward elected in terms of Clause 8 of this agreement.

2.6 “Union official” shall mean a full time official in the employ of the Union.

2.7 “Industrial action” shall mean any collective action by the Union members which affects the business of the Company and shall include, inter alia, go-slow actions, sit-ins, refusal to work and product boycotts.

3. GENERAL PRINCIPLES

3.1 The Union and the Company, being parties to this agreement, are bound by the terms and conditions of the agreement which shall be enforceable by law.

3.2 The Union and the Company endorse the principles of freedom of association and the parties recognise that each employee of the company has the right therefore to associate, disassociate and not to associate with the Union.

3.3 While their interests may be different, the Union and the Company should and shall, wherever possible, attend to reconcile such differences through dialogue, discussion and negotiations.

3.4 The Company shall not victimise any shop steward because of the reasonable performance of his duties in terms of this agreement.

4. RECOGNITION

4.1 The Company recognises the Union as the representative of Union members which representation will be regulated solely by the procedures and provisions as set out in this agreement.

4.2 The Union recognises the prerogative of the Company’s management to manage and administer the affairs of the Company, (subject to the requirements of the law and their legal obligation) in accordance with good business practice.

4.3 Negotiations between the company and union will only be dealt with via worker / employer associations at national level.

5. ACCESS

5.1 Access to the company premises shall be granted to union officials to meet with shop stewards and or union members after prior arrangement with management and should be limited to the times and days agreed. The notice period of such meetings can be short but should be reasonable.

5.2 Upon arrival union officials will notify management of their presence.

5.3 Union officials may attend meetings between management and shop stewards on prior arrangement with management.

6. NOTICE BOARDS

6.1Subject to the provisions of sub 6/2 below, the Company shall permit the use of a Company notice board for the display of bona fide Union notices relating to matters affecting Union members.

6.2 No Union notice shall be displayed on the notice board without first having been approved by the Manufacturing Executive or his nominee, which approval shall not be unreasonably withheld.

7. UNION SUBSCRIPTIONS

7.1 Subject to the provisions of the law, the Company agrees to deduct Union subscriptions from the salaries of Union members provided that each Union member shall provide the Company with written authorisation to do so.

7.2 A Union member may revoke the written authorisation referred to in sub paragraph 7.1 by giving the Company one months written notice.

7.3 The Union shall not be entitled to require the Company, nor is the Company obliged, to deduct arrear Union subscriptions, entrance fees, penalties or fines from members’ salaries.

7.4 In the event of a change in the rate of subscription in terms of its constitution, the Union shall cause each Union member to authorise the Company to effect such new deductions by submitting to the Company, at least 1 (one) calendar month prior to the date on which the new deductions are to be implemented.

8. ELECTION OF SHOP STEWARDS

Shop stewards shall be elected in accordance with the Union Constitution and

subject to the provisions of this clause.

8.1 Shop stewards shall be elected annually by secret ballot.

8.2 A representative of the Company shall be entitled to act as an observer at all such election proceedings.

8.3 One shop steward shall be elected for each constituency as outlined in Annexure A hereto.

Accordingly -

8.3 A Union member may not be nominated for election as a shop steward of the union for a particular constituency unless he is employed in that constituency,

8.3.2 Those Union members who are nominated for election as shop

stewards are to be elected by the Union members employed in the respective constituencies.

8.4 No employee may be nominated as a shop steward unless he is a Union member and has been in the Company’s employment for an uninterrupted period of 12 (twelve) months immediately prior to nomination. This clause will only come into effect on 1 January 2009)

No employee may be nominated as a shop steward if he/she holds the position of management as defined in 2.2

8.5 Shop stewards shall be elected for I (one) year. Should a shop steward cease to hold office in terms of 8.7 (Clause 8.7.4 excepted) and no

replacement shop steward is elected as contemplated in 8.7.3, or not be available by reason of the fact that he -

8.5.1 is absent from the premises whilst performing his employment duties elsewhere or

8.5.2 is absent because of illness

8.5.3 or is absent on leave;

then the alternate shall perform his functions until such time as that shop steward becomes available or until the election of another shop steward in his place, whichever is the earlier.

The election of shop stewards shall be conducted on the premises during: lunch breaks at a date and time acceptable to both parties.

A shop steward shall cease t:o hold office:

8.7.1 if he ceases to be a shop steward of the Union pursuant, to the provision of the Constitution of the Union;

8.7.2 if he resigns as a shop steward;

8.7.3 if he is transferred to another constituency or if he is appointed to a managerial position. He shall be entitled to decline or accept during his current term of office such transfer or appointment. In either event, he shall remain in office until a replacement shop steward is elected for his constituency provided, however, that such election shall be held within I (one) month from date of his transfer or appointment;

8.7.4 on receiving notice of his resignation supported by a majority of the members in his constituency;

8.7.5 if he ceases to be employed on the premises.

The parties acknowledge that the shop steward shall be the representative of the Union at the premises and shall at all times be deemed to be acting in that official capacity, unless the contrary is proved.

The employee nominated as a shop steward in a constituency who receives the second highest number of votes in an election in that constituency will become the alternate shop steward.

9. SHOP STEWARD’S COMMITTEE

9.1 The elected shop stewards shall constitute the Shop Steward Committee.

9.2 A senior shop steward shall be elected by the shop stewards from their number.

9.3 The functions of the Shop Stewards Committee shall be:

9.3.1 To represent Union members in terms of the existing disciplinary and grievance procedures and in terms of this agreement.

9.3.2 To endeavour to establish and maintain good relations and industrial peace between Union members and the Company.

9.3.3 To hold regular monthly meetings with the company representatives in accordance with this agreement.

9.3.4 To take all reasonable steps to ensure that Union members adhere to the terms of this agreement.

9.3.5 To report back to Union members on meetings held between the Shop Stewards Committee and the representatives in terms of this agreement, but subject to Company approval.

9.3.6 To foster a spirit of co-operation between Management and Union workers.

10. MONTHLY MEETINGS

10.1 Monthly meetings between management and the Shop Stewards Committee shall be held to discuss matters concerning working conditions of members, but these meetings shall not be used to bypass normal company channels of communication.

10.2 Each monthly meeting shall be preceded by a caucus meeting of the Shop Stewards Committee to take place between at the date and time as arranged with management, and to be held 3 (three) days prior to the monthly meeting.

10.3 The purpose of each caucus meeting shall be to prepare items for the agenda for the next monthly meeting, which agenda shall be submitted to the Manufacturing Executive or his nominee not later than 2 (two) days before the next monthly meeting, and shall be limited to specified items and nor “general”. The Company shall be entitled to add items to the agenda, after which the completed agenda shall be returned to the senior shop steward.

10.4 By mutual agreement between the management and the Shop Stewards Committee a Union official may be invited to attend any monthly meeting provided that the name of this official shall be given to the Manufacturing Executive or his nominee in general control of the business at the premises before each meeting.

10.5 The steward shall be entitled to report back to the members on the day following each meeting. The report back shall take place in the morning before normal working hours at the location provided by the Company, and subject to normal Company security regulations.

10.6 The Company shall record the proceedings at monthly meetings and distribute to the shop stewards the typed minutes thereof after each monthly meeting. Minutes shall be submitted for approval at the next monthly meeting and if approved shall be signed by the representatives of the parties.

11. VICTIMISATION

The Company shall not victimise any shop steward because of the reasonable performance of his duties in terms of this agreement.

12. GRIEVANCE AND DISCIPLINARY PROCEDURES

12.1 Grievances shall be dealt with in accordance with the existing grievance procedure, as amended from time to time.

12.2 The existing disciplinary procedures, as amended from time to time, shall be followed so as to ensure fair treatment of ant Union member involved in disciplinary proceedings coupled with the maintenance of discipline and the due performance of that Union member’s duties as an employee of the Company.

13. PRESS RELEASES

The Union and the Company undertake not to issue unilateral press statements concerning or arising from the operation of this agreement, prior to exhausting the procedures provided for in this agreement.

14- PAYMENT AND LEAVE

14.1 Shop stewards shall be paid at normal rates for any working time spent on performing any of the acknowledged functions in terms of this agreement.

14.2 Each shop steward shall be entitled to three working days leave per annum to attend seminars and training conducted by the Union, provided that such leave is to be taken on a date to be approved by the Company, having regard to avoiding disruption of the business of the Company,

Such leave shall not accumulated and the Company shall not be liable to make any payment in lieu of such leave. Application for any such leave shall be made at least 2 (two) weeks prior to the proposed leave date,

15. DEFINITION OF DISPUTE

Disputes shall be categorised as disputes of right or disputes of interest, or other disputes, according to the following definitions:

15.1 Disputes of right shall be disputes arising out of;

15.1.1 the interpretation of agreements between the parties and individual contracts of Union members; and

15.1.2 dismissals of and final warnings to individual Union members in terms of the Company’s Disciplinary Procedures (excluding collective dismissals).

15.2 Disputes of interest shall be all disputes relating to Conditions of Employment.

15.3 Other disputes shall be all disputes which may arise between the parties. These disputes are dealt with in terms of the grievance procedure and are not disputes envisaged by Clause 15.1 and 15.2.

16.DECLARATION OF A DISPUTE

16.1 Either party shall be entitled to declare a dispute in respect of a particular issue only after the procedures prescribed herein in respect of that issue or, in the case of an individual disciplinary matter referred to in 15.1.2, after the company’s Disciplinary Procedure then in existence, have also been exhausted; or in the case of other disputes referred to in Clause 15.3, after the Company ‘s grievance procedure then in existence also has been exhausted.

16.2 A party entitled to declare a dispute may do so by way only of a written

notice to the other party, which notice shall set out the relevant particulars of the issue in respect of which the dispute was declared.

17. DISPUTE SETTLING PROCEDURE

17.1 In the event of a drspute being declared by either party, the parties shall meet within 7 (seven) days of receipt by the other party of the notice of dispute to endeavour to resolve the dispute.

17.2 Should such a dispute not be resolved at the meeting contemplated in 17.1 the parties shall meet again within 7 (seven) days thereof and at that farther meeting shall make further endeavour to resolve the dispute, failing which the parties shall, at that further meeting endeavour to agree on a suitable means of resolving the dispute,

17.3 Where a dispute of right is in question and the parties fail to resolve that dispute at a meeting in terms of Clause 18.2, the dispute shall be resolved as per the Labour Code Order no 24 of 1992.

17.4 Where other disputes are in question and the parties fail to resolved the issue at a meeting in terms of 17.2

17.4.1 Either party shall be entitled by written notice to the other party to require that both parties submit to mediation;

17.4.2 if agreed by both parties, the matter will be referred to arbitration.

17.5 Where a dispute of interest is in question and the parties fail to resolve that dispute at a meeting in terms of Clause 17.2, and further, fail to agree on a suitable means of resolving that dispute:

17.5.1 Either party shall be entitled by written notice to the other party to require that both parties submit to mediation. The parties shall agree or endeavour to agree upon a mediator for assisting the parties in resolving the dispute.

17.5.3 The parties shall continue to try to resolve the dispute by mediation or negotiation for a period of 30 (thirty) days from the date of the further meeting contemplated in Clause 17.2 or such longer period as they may agree, and shall hold at least 3 (three) meetings within that period which meetings shall be held on separate days.

17.4.4 Should the dispute remain unresolved for the period of 30 (thirty) days or agreed longer period, each of the parties may act unilaterally and take appropriate legal steps to resolve the matter.

17.6 Neither party shall initiate or support any industrial action unless same is provided for in terms of the procedures contained in this agreement or in the event of disputes of interest while the procedures contained in this agreement are being followed.

18. PEACE OBLIGATION

18.1 The Union undertakes not to initiate, participate in or support any industrial action against the Company and to take all reasonable steps to ensure that Union members do not take part in any such industrial action unless such action takes place in accordance with the procedures provided for in this agreement and have utilised all communication channels prescribed by the Company, The Company undertakes to honour the procedures laid down in this agreement

18.2 In the event of any legal industrial action:

18.2.1 The Company shall not victimise any Union member because of his participation in such industrial action;

18.2.2 the Union shall take all reasonable steps to assist the Company n bringing to an end such industrial action and settling any dispute which may have caused such industrial action.

19. COMMUNICATION

Nothing contained in this agreement shall affect the right of the company to

communicate directly with its employees at any time.

20. SCOPE OF AMBIT OF AGREEMENT

20.1 This document constitutes the sole record of the agreement between the parties in respect of the subject matter hereof

20.2 No party shall be bound by any representation, understanding, warranty, agreement, promise, rights or obligations, or the like pertaining to the subject matter, or to any other matter which is not recorded herein.

21. TERMINATION OF THIS AGREEMENT

21.1 In the event of a breach of this agreement and in addition to such remedie as may be available in law, the aggrieved party shall be entitled:

21.1.1 To call on the offending party, by notice in writing stipulating the nature of the breach, to remedy that breach; and

21 .1.2 should the offending party fail to remedy the breach within a

period of 1 (one) month after receipt of such notice, to cancel this agreement by written notice to the offending party.

22. DOMICILIUM

22.1 The parties hereby choose as their respective domicilium citandi et executandi for all purposes the following:

The Company: Site 22, Ha Nyenye, Industrial Site, Maputsoe, Lesotho

The Union: Manonyane Centre, 1st Floor 9, Pitso Groung Road, Southern Africa

22.2 Any notice despatched by prepaid registered post to or delivered by hand at the addresses referred to in 23 above, will be deemed to have been received by the addressee 3 (days) from the date of posting and on the date of delivery respectively.

22.3 Either party may change its domicilium address by giving the other party 14 (fourteen) days written notice of such change of address.

Signed at ...............on this 25 day November,2008

Signed on behalf of the Union and authorised thereto:

SIGNED:

DATE:

WITNESSES:

WITNESSES:

CBI Low Voltage - Lesotho - 2008

Start date: → 2008-11-25
End date: → Not specified
Name industry: → Manufacturing
Public/private sector: → In the private sector
Concluded by:
Name company: → CBI Low Voltage - Lesotho
Names trade unions: → Factory Workers Union [FAWU]

TRAINING

Training programmes: → Yes
Apprenticeships: → No
Employer contributes to training fund for employees: → No

GENDER EQUALITY ISSUES

Equal pay for work of equal value: → No
Discrimination at work clauses: → Yes
Equal opportunities for promotion for women: → No
Equal opportunities for training and retraining for women: → No
Gender equality trade union officer at the workplace: → No
Clauses on sexual harassment at work: → No
Clauses on violence at work: → No
Special leave for workers subjected to domestic or intimate partner violence: → No
Support for women workers with disabilities: → No
Gender equality monitoring: → 
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