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COGNITION AND PROCEDURAL AGREEMENT BETWEEN CGM GROUP “THE COMPANY” AND FACTORY WORKERS UNION [FAWU] “THE UNION” - 2004

1. PREAMBLE

This Agreement shall regulate the relationship between the company and

The parties agree and accept that;

1.0 sound and fair management/worker relations are essential of goodwill and economic well-being of the company and

1.1 while their interests may be different, the company and the union should, where possible, attempt to reconcile such differences, taking cognizance of the union member's interests, and that of the company;

1.2 it is to their mutual advantage to formalize and regulate their relationship and to have clearly stated and workable Rules and Procedures that will reduce the possibilities of management/worker Conflict;

1.3 the union has the right to conduct it’s own affairs in accordance with it's Constitution and Policy/Resolutions. However, where Company is affected, in this regard, agreed Rules, Procedures and Codes shall be followed by the union and its members;

1.4 the company agrees to recognize the union, its Officials, Office Bearers and elected Shop Stewards as the representatives of the union members who are employed by the company for as long as the union remains representative of the company's employees;

1.5 the union recognizes that the company has the sole and exclusive right to manage, plan and organize it's operation and to direct and utilize it's Human Resources at it's own discretion with regard to the sound, financially viable and effective operation of it's business, as well as the maintenance of recognized fair work standards and acceptable quality and output of work. Work standards will be discussed between the parties from time to time;

1.6 the parties undertake to ensure that no discrimination or victimization of any nature takes place as a result of an individual employee’s race, colour, religion, sex, national origin, job status or membership of any organization;

1.7 the parties shall negotiate/bargain/consult in good faith [as the case may be] in seeking reasonable and satisfactory solutions to the disputes that may arise between them;

1.8 Both parties support the right of freedom of association and non- association as entrenched in section 6 of the Lesotho Labour Code Order of 1992, acknowledging that the company’s employees have the right to decide for themselves whether or not belong to a union. The company has the right to decide for itself whether or not to join an Employer’s Organisation;

1.9 the union acknowledges the company’s right to communicate and/or consult with it’s employees,, including any union members and that nothing in this agreement shall restrict, curtail or hinder the company from such communication, provided that such consultation or communication does not undermine the substantive issues that are negotiated between the union and the company this Agreement and all it’s Annexes shall be legally binding upon the parties hereby regulating of all aspects of their relationship;

2. DEFECTIONS

2.0 For the purpose of this agreement, the male shall include the female and the singular shall include the plural and vice-versa.

2.1 Unless the context indicates otherwise:

2.1.1 “Code” means the Labour Code Order no. 24 of 1992 and its Amendments;

2.1.2 “Agreement” means this Recognition and Procedural Agreement and all its annexes;

2.1.3 “Company” means CGM Group [PTY] Ltd.

2.1.4 “Company Representative” means a person nominated by the company to represent it in dealings with the union, its officials and members;

2.1.5 “Union Official” means a permanent, full time official of the union designated to conduct union business;

2.1.6 “Office Bearer” means a member of any committee established in terms of the union constitution excluding an official;

2.1.7 “Union” means the Factory Workers Union or FAWU in short; 

2.1.8 “Majority” means 50% plus 1 [one] of all permanent employees in the Company;

2.1.9 “Constituency” means areas as agreed to between the parties from time to time at a particular workplace in the Company;

2.1.10 “Shop Steward” means a union member elected in terms of Annexure A to this Agreement;

2.1.11 “Alternate” means a member of the union in the same constituency as the Shop Steward for whom she is elected as alternate. Such alternate shall only act as Shop Steward and be entitled to the rights reflected in this Agreement when the relevant Shop Steward is not available.

2.1.12 “Disciplinary Procedure” means the procedure dealing with the discipline of employees;

2.1.13 “Grievance Procedure” means the procedure dealing with grievances raised by the employees,

2.1.14 “Retrenchment Procedure” means the procedure dealing with the redundancy and retrenchment affecting the company employees;

2.1.15 “Day” means the normal working day exclusive of Public Holidays Saturdays and Sundays;

2.1.16 “Management” means any person nominated by the company to be responsible for the supervision or direction of an employee, or group of employees, who has the authority to employ or dismiss, and who may be involved in the negotiations and consultations for the company with the union;

2.1.17 “Union Member” Means a permanent employee [as defined] of the company who is a paid-up member in terms of the union constitution.

2.1.18 “Employee” means any person who is employed by or working for the company and who receives or entitled to receive renumaration from the company in terms of his conditions of Employment or Contract of employment excluding casual or part-time employees, and any person employed on a fixed Term Contract by the company for a period of less than 6 (six) moths;

2.1.19 “Parties” means the company and the union;

2.1.20 Premises” means the place Where the business operations of the company are conducted;

2.1.21 ‘Supervisor” means an employee of the company who may initiate disciplinary action, subject to the disciplinary code.

“Industrial Action” means any form of work disruption and includes but is not limited to, strikes and lock-outs, work stoppages, go slows, overtime bans, work to the rule, collective interruption of the operation and includes promoting any one of or combination of these actions;

“Negotiating Committee” means a Committee consisting of representative of the company and the union in terms of this Agreement for the purpose of creating a forum whichissues affecting the members will be negotiated on an

annual basis.

“Shop Steward Committee” means union members elected in terms of the union constitution.

“Work Place Meeting” means monthly meeting between the management Shop Stewards in the company. A union Official may also attend these meetings from time to time by invitation and prior arrangements with Management.

“Casual employee” means any person who is engaged by the company for not more than 3 (three) consecution days in any week, provided that the nature of the job does not require more than 4 (four) weeks to complete.

“Fixed term Contract” means a contract of employment in terms of which a person is engaged by the company for a mutually agreed period in excess of 3 (three) days or for a particular task which contract may not be re-newed more than once.

“Work place” means the place or places where employees of the company perform their duties.

“Strategic Business Unit” means a business reflected in clause 25 of this agreement.

“Region” means the Sovereign State of Lesotho.

Organization rights' means the rights of the union to recruit members, have meeting, elect Shop Stewards, use Notice Boards, have access to the company premises and implement Stop orders facilities, excluding the right to negotiate substantive matters.

“Collective Bargaining” means negotiations between the parties relating to substantive interest issues including amendments to this Agreement.

“Disputes of interest” mean any dispute not involving existing rights of union members such as new procedures or conditions of services, substantive benefits etc., and interest issues shall have a corresponding meaning.

“Disputes of rights” means any disputes regarding existing rights of union members such as alleged unfair dismissals, breaches of contract, and alleged unilateral changes to conditions of services.

3. SCOPE OF RECOGNITION

3.1 The company recognizes the union as the sole collective bargaining representative of it’s members only;

3.2 Recognition extended to the onion respect of members each job category shall in the discretion of the company lapse in respect of the job category concerned if the union membership in that category falls below 50% plus (one) of the total number of employees in that category;

3.3 The onus shall be on the union to prove it’s membership and general representivity upon legitimate challenge to representivity in the following manner:

3.3.1Representivity shall be conducted on the premises of the company under joint supervision of the company and the union;

3.3.2 The ballot shall be given conducted on the premises of the company under joint supervision of the company and the union;

3.3.3 The union shall be given thirty (30) days written notice of the intention to conduct a ballot and the reasons for the ballot;

3.3.4 The union shall be entitled to have present at the conducting of the ballot a maximum of 2 (two) full-time Officials of the union;

3.4 In the event of union membership falling below 50% plus 1 (one) in any category after the due process numerated in 3.3 above having been completed, the company may withdraw it’s right of union recognition in that category forthwith;

3.5 The union shall provide the company with copy of it’s Constitution and any amendments there to upon request by the Company;

3.6 All negotiations between the company and the union and all representations by the union to the company shall take place in accordance with the provisions of this agreement. This agreement and its Annexes substitute all previous Agreements that may have existed between the union and the company of workplace under the control of the company, an shall be, from date of operation of such Agreement to regulate the relationship between the company and work place on the one hand, and the union on the other;

3.7 Both parties endorse the right of freedom of association.

4. Undertake by the Company

4.1The Company recognizes the Union and it’s team made up of its officials and shop stewards elected in terms of Annexure A as representing the union and its members for the purpose of consultation in terms of the procedures contained in this Agreement.

4.2The Company agrees to negotiate substantive agreements with the union through the following organizations in respect of issues listed below:

Issues:

a) Wages

b) Other conditions of Employment.

a) The Employers Association to which the company is a member.

b) The Lesotho Textile Exporters Association to which the company is a member.

c) In case of inability to return a settlement thru (a) and (b) above, the Company can approach the Wages Board to which the company or Union can refer the

5. UNDERTAKINGS BY THE UNION'

5.1the union records and undertakes that

5.1.1in view of its acknowledgement of the rights of the company to manage and control its affairs, the union conduct its relationship with the company I such a manner so as not to jeopardize the continuity and sound operation of the company and to ensure industrial peace;

5.1.2 it shall at all times conduct its business in an orderly and responsible fashions, and in accordance with such procedures as may mutually be agreed from time to time and freedom of choice to job it, and accepts that employees have freedom of choice to join or not to job the union;

5.1.3 it shall not by word or deed attempt, through intimidation or by other improper means, to include employees who are not union members to job it, and accepts that employees have freedom of choice to job or not to join the union;

5.1.4 it shall be liable for illegal actions of union members and undertakes to compensate the company for any damages the company may suffer due to any breach of tbs agreement caused directly by a union official, pursuant to discussion or correspondence pertaining to the company.

5.1.5 nothing contained in this agreement shall affect the rights of the company to communicate directly with any or all of their employees at any time in any manner that they may seen fit;

5.1.6 it recognizes and approves the principles of freedom of association. In particular it acknowledges the right of employees to:

a) Job any union of their choice

b) Refrain from participating in union activity;

c) Remain unaffiliated to any union;

d) Participate in the companies internal channels of communication free of any fear of intimidation by the union, through tbs officials, officials bearers, representatives or members; provided that the communication does not undermine the union’s structure.

5.1.7 it is the company’s rights and duty to maintain discipline amongst its employees I

terms of the disciplinary code and procedure

6. UNDERTAKING BY MEMBERS

6.1 The union agrees that upon signature of tbs agreement, it shall be the union’s responsibility to relay the contents of this agreement to members,

6.2 by virtue of the union’s undertaking in 6.1 above, members shall automatically be

bound by tbs agreement.

7. PEACE OBLIGATION

7.1 the union undertakes not to support, instigate, encourage or organize any industrial action against the company, their products or services contrary to the provisions of the Dispute Settlement Procedures contained herein.

7.2 the above obligation will extend during the full period of this agreement and any substantive agreement between the parties reached of this agreement, which have been reduced to righting,

7.3 the union. It’s officials and office bearers, shall neither authorize nor sanction members to damage or interfere Unlawfully with the property of the company NOR TO INFLICT INJURY UPON ANY PERSON. In the event of any such activity either being about to take place or taking place, the union shall immediately take all reasonable steps to restrain its members from commencing or continuing with such activity.

8. ORGANIZATIONAL RIGHTS

The parties agree to negotiate and incorporate the following Annexes to this Agreement;

8.1.1 Annexure “A”

Agreement regarding election, termination, rights and duties and training of shop stewards;

8.1.2 Annexute “A1 ”

Shop steward Accreditation;

8.1.3 Annexure “A2”

Request for training leave and/ or official duties;

8.1.4 Annexure “B”

Agreement regarding Stop Order deductions;

8.1.5 Annexure “Bl”

Terminating of stop order deductions;

8.1.6 Annexure “B2”

Authorization to deduct stop orders,

9. ACCESS ON UNION BUSINESS

9.1 The company agrees that upon request, it shall grant up to 2 (two) union officials access to the premises for the purpose of meetings with members individually on union business during these members own time, provided that the conditions of such access shall be pre-determined by the company.

9.2 no such unions official may have access to members at the workplace or restrooms unless otherwise agreed to by the company

9.3 The union shall give the company a minimum of 4 (four) days prior notice of such meeting, and it is recorded that the company shall not unreasonably withhold such access. In the event of a legitimate reason, the notice period may be waived

9.4 Access may be denied if production time will be lost by any employee attended such meeting, unless otherwise agreed to by the company.

9.5 The company shall be given the names, union status, business addresses and

telephone numbers of any union Official who utilize its facility. Such union official shall comply with all safety, security and other company regulations, and all statutory requirements as contained in the code at all times.

9.6 Should the activities and business of the union exceed the time for which the meting are provided for, the company reserves the right to vary or withdraw that access, pursuit to a request for intervention by the union Executive.

10. NOTICE BOARD PRACTICE

10.1 the company shall provide a notice board for the purpose of displaying union leaflets and notices provided that the display of such leaflets and notices shall be authorized by the company. Such authorization shall not be unreasonable withheld.

10.2 any notice, announcement, communication, pamphlets, documentations or written piece, which the union or its shop stewards or union members wish to attach the notice board or wish to distribute shall be considered to be trade union literature.

10.3 any union or employee literature, for the purpose of attaching to notice boards or for distribution, shall have the prior approval of the C.O.O/M.O.O and will append the company stamp to the literature and will sign it.

11. STATEMENT TO THE MEDIA

11.1Both parties agree that no statement will be made by either party to the media*

on maters currently under discussion between the two parties, without

agreeing upon and signing a joint statement;

11.2 any statement to the media by the union concerning the company shall only be made with the approval of the company.

11.3 In the event of there being a dispute as to the content of a statement, the parties agree that both versions will be presented simultaneously. No independent statements will be issued.

12. MEETING WITH SHOP STEWARDS

12.1 the shop stewards and the company representative shall meet once a month, during working hours in order to discuss and consult on matter concerning the working conditions of members, if such meeting is requested either by the company or shop stewards.

12.2 The shop stewards may meet with members during their own time to prepare agenda items for the regular meeting referred to in clause 12.1 above. The date, time and place of such meeting shall be arranged with the company.

12.3 The shop stewards and the company shall exchange agenda items for a meeting 5 (five) working days prior to such meeting. Only specific items may be included on such agenda. There shall be no general items. The items submitted by the shop stewards committee and the company will together constitutes the agenda for the meeting.

12.4 The company on its nominee shall act as chairperson at the meeting between the company and the shop stewards;

12.5 In the event of urgent problems for negotiation or discussion, which in the opinion of both parties cannot be held over for scheduled meeting, meetings shall be arranged at the earliest possible date and not later than 1 (one) working days after such meeting has been requested.

12.6 Any agreement reached between the parties after negotiations at these meetings

shall be reduced to writing and signed, by both parties subject to ratification by the union.

13. Negotiation Procedure

13.1 The parties agree to negotiate annually in the month of August with a view to finalization on or before on (1st) October on issues defined in clause 4.2 through the following organizations.

a) The Employers Association.

b) Lesotho Textile Exporters Association

c) In case of inability to reach a settlement thru (a) & (b) above, the parties can

approach the DDPR.

13.2 All negotiations except the annual wage increase and conditions of employment and all representation by the union to the company shall take place in accordance with the provisions of this agreement.

13.3 The parties may submit to one another in writing for such negotiations (except the annual wages and conditions of employment) together with proposals in writing so as to enable the other party to prepare for the meeting and to obtain a mandate from its principals).

13.4 Within a period of thirty days after receipt of the proposals in terms of clause 13.3 above, the company shall convene a meeting with the union for the purposes of negotiating proposals (except the annual wage increase and condition of employment) which meeting may be adjourned and reconvened from time to time by mutual consent between the company and union.

13.5 Any agreement reached by the parties after negotiations (except the annual wage increase and condition of employment) shall be reduced to writing, and be signed by both parties before the adjournment of that meeting, and shall therefore become binding on the company, the union and its members.

13.6 In the event of the parties failing to reach agreement during negotiations in terms of this clause, either party may declare a dispute by written notice to the party setting out following matters;

13.6.1 the nature of the disputes

13.6.2 the recorded proposed terms of the settlement; and

13.6.3 the reasons for that party’s proposal.

13.7 Upon receipt by a party of the notice in which the other party has declared a dispute, the matter shall be dealt with in terms of clause 14 below.

14. DISPUTE SETTLEMENT PROCEDURE

14.1 in this clause disputes of right shall mean disputes;

a) Arising out of disciplinary action or termination of employment in respect of any member in terms of the company’s disciplinary procedures; or

b) Concerning the breach, meaning or interpretation of the terms of any agreement between the union and the company

14.2 Disputes of interest shall mean disputes;

a) Declared in terms of clause 13.6 of this agreement; or

b) Concerning any other work/employment related matter at the premises concerning members but not being a dispute of right.

14.3 In this clause strike and lock-out shall bear the respective meaning assigned in section 3 of the code.

14.4 The party wishing-to declare a dispute shall do so in writing by notifying the other party of the nature of the dispute and requesting the meetings referred to in clause 14.5 below.

14.5 The parties shall meet at least twice (with no meetings being on the same day) within a period of 7 (seven) days of receipt of the written notification of the dispute referred to in point 14.4 above, in order to resolve the dispute or to agree to other suitable means of resolving the dispute.

DISPUTES OF RIGHTS/RES0LUTION

14.6 Disputes of rights shall if not resolved in terms of clause 14 above be referred at the election of the disputant as follows;

14.6.1If agreed by the other party, to mediation by a mutually agreed upon mediator, whose cost shall be bom equally by parties; or

14.6.2 If agreed to by the other party, to arbitration in terms of the arbitration procedures annexed to this agreement; or

14.6.3 To the Directorate of Dispute Prevention and Resolution (DDPR); or

14.6.4 To the Lesotho Labour Court;

14.6.5 In the event of the parties choosing to refer the matter to the DDPR or the Lesotho Labour Court, the parties specifically consent to the utilization of legal representative during the course of proceedings.

DISPUTES OF INTEREST- RESOLUTION

14.7 Should the parties fail to resolve or agree on the suitable means for resolving a dispute of interest at the meeting held in terms of clause 14.1 -14.6 then they shall nevertheless continue to seek resolution for a period of 14 (fourteen) days after lapse of the 7 (seven) day period referred to clause 14.5 above;

14.8 During the 14 (fourteen) day prior referred to in clause 14.7 above, either party shall be entitled oh written notice to the either to request that both parties submit to mediation. Provided that the request is acceptable, the parties shall agree upon the mediator, and the cost of mediation shall be shared equally.

14.9 If the union and the company declared a dispute in terms of clause 14.5 and pursuant to the 14 (fourteen) day prior referred to in clause 14.7 above, and the event of the dispute qualifying as trade; dispute, the definition shall be brought to the attention of the directorate of dispute prevention and resolution in terms of the code.

14.10 In the event of the matter being referred to arbitration in terms of the code, the parties specifically consent to the utilization of legal representation by either of the parties to the dispute,

14.11 In the event of either party refusing consent to arbitration, the notice refusing arbitration, shall contain a statement of intention to declare a strike, or as the case may be, a lock-out in furtherance of the disputed. In the event of such a notice being served, the time limits and provisions of section 225,226 and 227 of the code shall be followed, provided that;

14.11.1 The union member have compiled fully clause 14.1, -14.6,14.7, 14,8 and 14,10 above; and

14.11.2 The union has given the company in writing five (5) clear working days notice of the date and time upon which the strike is due to commence; and

14.11.3 the strike commences within 48 (forty eight) hours of a secret ballot and is uninterrupted, the company will not dismiss any members merely for organizing or participating in such strike. However, the company may take disciplinary action against the employees who commit any offence concerning misconduct during the strike and shall not be obliged to pay the employees who were on strike.

14.11.4 The union both on its own behalf and behalf of the members undertaken not to encourage, organize or participate in any industrial action against the company, their products or services, except in terms of clause 14,7 above.

14.11.5 Notwithstanding clause 14.11 above, the company will be entitled in its sole discretion to take such steps, as it may consider necessary to keep its business operational.

I5. INDUSTRIAL ACTION RULES

15.1 In the case of any industrial action it is agreed;

a. That workers will confine themselves to a place (s) to be allocated by the

company after consultation with the union and that no unacceptable conduct or any form of intimidation or threatening action whatsoever, in respect of co- workers, clients of the company or any other person shall take place;

b. That workers will leave the premises of the company upon request by management, after consultation with the union with a view to reaching agreement;

c. That striking workers will not interfere in any way whatsoever with any temporary employees who may be employed by the company;

d. That any press statement Will not only be made by either Party after consultation with the other;

15.2 In the event of picketing it is agreed that;

a) Not more than 30 days striking employees shall be entitled to picket at a place to be agreed upon, provided that such action must be peaceful and non-disruptive;

b) Picket shall not be used to intimidate non-strike or any other person;

c) Picketing shall not interfere in any way with the access and entrance of any personal vehicle wishing to enter upon, or leave the company premises;

d)Picketers shall not interfere with security personnel carrying out their normal duties.

16. SECRET BALLOT

16.1 The secret referred to in clause 14.11.3 above shall;

16.1.1 Be conducted within 24 (twenty four) days of the declaration of the dispute referred to in clause 14.4 above

16.1.2 Have its results subject to a joint company and union audit;

16.1.3 Required members to express their votes on a question phrased jointly by the company and the union;

16.1.4 Not disrupt the normal activities of the company

17. ILLEGAL STRIKE/WORK STOPPAGE/ INDUSTRIAL ACTION

17.1 In the event of any strike or industrial action contravention of clause 14 above, whether countenanced by the union, its officials, office bearer and/ or members or not, and notwithstanding any other rights in may have, the company may dismiss in terms of the disciplinary procedures in place, all participating employees;

17.1.1 after the first 8 (eight) working hours from commencement of such strike or industrial action, during which period the union shall be afforded an opportunity to remedy the breach by its member;

17.1.2 instantly, if more than 1 (One) such strike or industrial action has taken place during period of 12 (twelve) months, in respect of the second or subsequent strike or industrial action.

PROCEDURAL AGREEMENTS

18. DISCIPLINARY CODE AND PROCEDURE

18.1 the parties consider that the establishment of a fair disciplinary procedure is essential for the efficient running of the company business, the safety and fair treatment of its employee, and sound industrial relations. The parties acknowledge that current procedure shall be observed and adhered to by employees and management.

18.2 The company’s current disciplinary code and procedure including disciplinary guidance hereby attached and the parties accept marked Annexure "C”.

19. GRIEVANCES PROCEDURE

19.1 The parties wish to improve morale and job satisfaction amongst employees and for this reasons a Grievance Procedure has been created.

19.2 The company’s current disciplinary code and procedure hereby attached and marked Annexure "D" is accepted by the parties.

20. RETRENCHMENT/ REDUNDANCY PROCEDURE

20.1 The parties agree in principle that there may be circumstances that are economical, technological or operational, in which it will necessary to reduce its workforce.

20.2 The parties agree that the current Redundancy and Retrenchment policy and Procedure hereby attached and marked Annexure "E” is accepted by the parties.

21. TERMINATION OF AGREEMENT

21.1 Should the company or the union breach any of the provisions of this agreement, the other party shall be entitled but not compelled, without prejudice to any other rights which it may have, to immediately cancel this agreement by written notice to the other, or

21.2 On l (one) months written notice given by either party provided that, if the parties are in dispute at the time of Such termination, the dispute settlements procedure provided for in clause 14 shall continue to be followed, and the rights and obligations of the parties under the disputes settlement procedure shall survive such termination for the purpose of that dispute.

22. DATE OF COMMEMCEMENT

22.1 This agreement shall come into operation on the date of signature hereof and shall remain in force until it is terminated in terms of the provisions of the proceeding clause.

23. AMENDMENTS AND DURATION OF AGREEMENT

23.1 The agreement may only be amend by written notice to the other party.

23.2 Rights accorded in terms of clause 3 of this agreement may be withdrawn by prior notice at least 30 days from the company to the union, should the latter no longer meet the required representative levels

23.3 No variation or amendment of this agreement shall be of any effect unless reduced in writing and duly signed by both parties,

24. DOMICILIA AND NOTICES

24.1 for the purpose of this agreement, including the serving of notices and legal processes, the company and the union choose their domicilium Citandi et executandi (domicilium) as follows:

THE COMPANY

CGM GROUP [PTY] Ltd

Private Bag A179 Thetsane

Industrial Area Maseru 100

UNION

Factory Workers Union

P.O Box 2288, Manonyane Centre,

First Floor, Room9, Maseru

24.2 Either the company or the union may at any time change its address by notice in writing provided that the new domicilium catandi et executandi is, or includes a physical address at which process may be served. The new domicilium shall be effective 10 (ten) days after the notice in question has been given.

24.3 Any notice given in connection with this agreement shall be;

24.3.1 Delivered by hand; or

24.3.2 Sent by pre-paid registered post; or

24.3.3 Sent by pre-paid telegram or cablegram; or

24.3.4 Sent by facsimile to the domiciliun chosen by the company or the union.

25. GENERAL PRINCIPLES

25.1 Communication channels and system other than those stipulated in

this agreement, operated by the company for the purpose of discussing and disseminating information to its employees, shall continue to function and the company may add or amend such channels and systems in its sole discretion. In addition it is the intention of this agreement not to prevent or discourage employees from having personal access to the company through its manager.

25.2 Any amendment of the union Constitution and rules thereto, made after signing hereof shall be communicated to the company by the union, the latter sending the former a copy of such agreement within 10 (ten) days of the approval by the National Congress of the union.

25.3 No relaxation or indulgence which the company or the union may grant the other party, shall constitute a waiver by the form of any rights under this agreement, or subsequent substantive and transformational agreements.

For the Union in his capacity 1

Being duly authorized to sign this agreement on its behalf by a Resolution of its Executive Committee.

Being duly authorized to sign this agreement on its behalf by a Resolution of its board of Directors.

ANNEXURE A: AGREEMENT BETWEEN CGM GROUP (the Company) AND FACTORY WORKERS UNION [FAWU] (THE UNION)

Regarding Election, Termination, Rights

Duties and Training of Shop Stewards

1. ELECTION OF SHOP STEWARDS

1.1 A shop steward shall be recognized to assist member in terms of the company’s Disciplinary Procedures, and to represent members at regular consultative meetings with the company in terms of Clause 12.1 of the Main Agreement, and annual negotiations in terms of Clause 13 of the Main Agreement.

1.2 A shop steward represents members in terms of the provisions of the Agreement.

1.3 The company shall recognize 1 (one) alternative.

1.4 It is pre-requisite to be elected as a shop steward, that the shop steward must:

1.4.2 Be permanent employees;

1.4.3 Preferably have at least 1 (one) year completed uninterrupted services with the company.

1.1 The following general provision are applicable to shop stewards;

1.5.1 A shop steward shall establish and maintain good relations between the members, the union and the company;

1.5.2 A Shop steward will not receive preferential treatment from management, nor will he be exempted from the provisions of the disciplinary code and procedure;

1.5.3 A shop steward shall cease to be recognize if the company has notified the union and the shop steward is working contrary to the best interests of the company, or contrary to the provisions of this or any agreement the company and the union, this pursuant to union intervention to attempt to remedy the situation;

1.5.4 A shop steward shall be recognized as such once he has signed an acknowledgement:

a) Setting out his functions;

b) That he has received a copy of the company's disciplinary code and procedure;

c) That he will abide by the term of the agreement, which acknowledgement shall be witnessed by he union.

1.2 The company and the Union will jointly conduct induction, responsibilities and the company procedure.

1.3 A shop steward will be entitled upon giving 2 (two) months notice to:

1.7.13 (three) days paid and 2 (days) unpaid leave per annum to attend union training course, provided that:

a) The contents of such courses have been approved by the company;

b) The dates of such training courses shall first have been sent to the company 2 (two) months in advance of such training course;

c) A full agenda of the training course is submitted to the company;

1.8.1 Either indirectly promote or participate in any union activity during normal working hours, except with the express prior written permission of the company Line Manager or Head of Department;

1.8.2 Interfere in any way the running of company operations;

1.8.3 Interfere with the performance of duties or the carrying out of instructions by members;

1.8.4 Give instructions to any member or countermand any instructions given to any member concerning the performance of his work;

1.8.5 Instigate and incite, command, aid, advise, encourage or procure any member to take part in or continue with any industrial action which is unlawful or which is contrary to the dispute settlement procedures contained in the Main Agreement.

1.8.6 Meets the basic standards for his/her specific job.

2. ELECTION OF SHOPSTEWARDS AND WITHDRAWAL OF RECOGNITION

2.1Shop steward shall be elected by a secret ballot for a period of 2 (two) years to represent the members and the union in terms of this agreement, subject to the following conditions:

2.1.1 The election of a shop steward shall be held in the company premises, and shall , not disrupt the company’s normal operations and smooth running;

2.1.2 The election date procedural detail for the election shall be agreed with the company at least 14 (fourteen) working days prior to the election date, and the company shall have the right to have an observer present at the election;

2.1.3 The number of shop stewards and the size and number of the constituencies they represent shall be in accordance with clause 1.3 of this agreement;

2.1.4 In the event of there being a tie in either the highest or the second highest number of votes cast by members in any constituency, a further ballot will be held respect of that constituency on a date to be determined by the parties;

2.1.5 Only members can nominate and vote and only members may be nominated and elected as shop steward;

2.1.6 For constituencies they work in;

2.1.7 Candidates must have an Aggregate of at candidate per constituency who draw the most votes shall be declared the elected shop steward and the candidate who draws the second most votes shall be his alternate;

2.1.8 The candidates per constituency shall be identified by a ballot box provided for such candidates. The ballot boxes will be at separate place;

2.1.9 There will be a company representative and a full-time union official in attendance at the election venue to supervise the election and subsequent counting of votes;

2.1.10 Candidates may only be nominated and elected at least 12 (twelve) months company services prior to their nomination.

Shop steward shall ease to be recognized as such in the event of the under mentioned provision being applicable and pursuant to notification to the union; Being appointed to a supervisory position or in a job category outside the membership criteria specified in clause 1.4 of this agreement. Should a recognized shop steward be appointed or promoted to a managerial position or to a job category outside of his constituency, he must resign as shop steward not later than the effective date of his appointment or promotion to the supervisory position;

The shop steward concerned shall be free to resign or accept the promotion and shall not be victimized as a result of declining of the promotion;

Being transferred to a constituency other than a constituency be was elected to represent;

Ceasing to be a permanent employee of the company;

Ceasing to be a member of the union;

Resigning as a shop steward;

2.2.7 Receiving a written request for his resignation supported by 50% plus 1 (one) of the members of his constituency;

2.2.8 The company withdrawing recognition in terms of clause 3.4 of the main

Agreement.

BINDING AGREEMENT DATED AT Maseru on THIS 20th DAY OF 2004

AS WITNESSES;

BINDING AGREEMENT DATED AT Maseru ON THIS 20th DAY OF 2004

AS WITNESSES:

the company in his capacity as

Being duly authorized to sign this agreement on its behalf by a resolution of its Board of Directors.

ANNEXURE A1

SHOP STEWARD ACCREDITATION CERTIFICATE OF CREDENTIAL USSUED TO

Who is entitled to act as SHOP STEWARD of the at

1. has been elected as shop steward in the ______________

and will act as such as of__(date).

2. The shop steward accepts the tights and duties provisions recorded in Annexure A of the agreement between the Company and the Union, and by sign below acknowledged he is in possession of and has read the contents of the same, A copy of annexure A of the Agreement is annexed hereon.

3. The Head of Department in section shall recognize copy of the

Certificate and records that they are in possession of, and have read the contents of Annexure A of the Agreement.

SINGED AT:ON THISDAY OF20

On behalf of FAWU 

Shop Steward

On behalf of Supervisor

ANNEXURE A2: REQUEST FOR TRAINING LEAVE AND/ OR OFFICIAL DUTIES

The representative must complete part A of this form and hand itto his immediate supervisor for authorization. Immediately alter completing his duties, upon his returning to work, he must complete part B and hand form to his supervisor.

P ART A

1. Name of representative:

2. I request permission to attend the following training programme. A copy of the curriculum is attached hereto.

Or

I request permission for unpaid leave to attend UNION activities.

Date fromto:

Shop steward

DATE:______

*Head of Department

PART B

I was away from the COMPANY for the periodto

7.1At least 1 (one) month’s written notice is given by the UNION to the COMPANY in this regard.

7.2The relevant members agree in writing to such deduction.

BINDING AGREEMENT SIGNED AT.... ON

THIS...... DAY OF day:2004

AS WITNESSES

for the union in this capacity as

being duly authorized to sign this agreement on its behalf by a resolution of its Execution Committee

BINDING AGREEMENT SIGNED AT ...ON THIS, DAY OF ...day 2004

ANNEXURE B1

TERMINATION OF STOP ORDER DEDUCTION FORM

TO; THE GENERAL SECRETARY

THE MANAGER

1.I the undersigned hereby request that deduction from salary be ceased with

effect from

2,I confirm that this is my own decision and that nobody has influenced me whatsoever in this regard.

Member

on behalf of supervisor

DATE

ANNEXURE B2

STOP ORDER FORM

Messrs

(Name & address of employers)

Witnesses;

1.

2.

STANDARD DISCLIPLINARY POLICY

AND PROCEDURE

1. DEFINITIONS

1.0In this disciplinary policy procedure, the singular includes the plural and vice versa, the masculine the feminine and he following words and expressions shall have the following meanings assigned to each and cognate expressions shall be similarly construed.

1.1 Discipline

1.1.1Discipline is any action initiated by management in response to an employee's unacceptable behavior or performance.

1.2 Education Action

2.1 Management make sure that an employee is aware that his/her behavior or

performance is unacceptable and that he/she may face consequences if he does not improve;

1.2.2 Employees and managers are provided with information, training and guidance with a view to ensuring that they understand the correct procedures, rule and regulations, methods, etc,

1.3 Corrective Action

1.3.1 Where educational action does not change the employee’s behavior or performance, the affected employee is given written warnings.

1.3.2 Employees are encouraged to accept the role and leadership of managers and supervisors and to respect and comply with the company rules and regulations.

1.4 Punitive Action

1.4.1 Where both educational and corrective actions are ineffective, the punitive action be applied.

1.4.2 in this approach, much emphasis is put on the punishment if an employee fails to comply instead of co-operation.

2. Responsibility for Discipline

2.1Management has a responsibility to implement and maintain the disciplinary process.

3. General Principles

3.1 Before implementing this disciplinary code and procedure, the rules and regulations as well as conditions' of employment will be communicated to all employees;

3.2 Disciplinary inquiries will be conducted during working hours wherein a clear evidence of a satisfactory behavior or performance will be established;

3.3 This disciplinary code and procedure is applicable to all the company employees including managerial employees;

3.4 Disciplinary action must be prompt, fair and firm.

3.5 Management reserves the right to take disciplinary action against employees in their absence if they refuse to attend or participate in the disciplinary proceedings.

3.6 The disciplinary action must be, and be seen to be, educative and corrective and not punitive.

3.7 A chairperson/presiding officer must be neutral/impartial. A person who laid the charges against the accused cannot be a chairperson/presiding officer.

4. Forms of Disciplinary Action

4.1 Counselling at workplace

4.2 Written warning

4.3 Final warning

4.4 Dismissal 

LEVEL 1

5. Informal Disciplinary Action: Written Warnings

5.1 Employees may from time to time commit offences which do not necessarily require formal disciplinary action but only educative or corrective action.

5.2 If the supervisor realizes that an employee’s behaviour or performance is unsatisfactory but at the same time does not warrant a written warning or summary dismissal, he/she will be given a verbal warning after explaining why the behaviour or performance is not acceptable.

LEVEL 2

6. Formal Disciplinary Action: Written Warnings

6.1 If the verbal warning fails to change the employee’s unacceptable behavior or performance, but at the same time the nature of the committed offence does not warrant dismissal. The supervisor must give the accused employee a written notice of the time, date and venue of the disciplinary inquiry (see Annexure A: notification of Disciplinary Inquiry).

6.2 The accused employee will be given a written warning which will be recorded on the prescribed misconduct form (see Annexure D:waming)

6.3 The supervisor must explain to the employee that the committed offence requires corrective action. The nature and description of the offence will be clearly recorded on the form.

6.4 The accused employee and his representative shall be requested to sign the warning as just an acknowledgement.

6.5 If the accuse employee and his representative refuse to sign the warning, others present in the inquiry shall be requested to sign as witness that the accused has refused to sign.

LEVEL 3

7. Disciplinary Inquiry: Final Warning or Dismissal

7.1 if the supervisor is still not satisfied with the employee’s behaviour or performance after a written warning and is of the opinion that the nature of his offence may warrant a final warning or dismissal, a fully fledged disciplinary inquiry shall be held. (See Annexure A Notification of Disciplinary Inquiry)

8. Those present at the Hearing

8.1 The chairperson/presiding officer

Any of the following persons may chair the disciplinary proceedings depending on the accused:

8.1.1 Managing Director

8.1.2 General Manager

8.1.3 Department/ Sectional Manager or Line Manager

8.1.4 Factory Manager

8.2 The accused

8.3 The accused representative

8.4 The accused representative

8.5 The witnesses of both the accused and complainant

8.6 The interpreter, if necessary

8.7 The human resources/ personnel/ industrial relations officer or their assistants

8.8 The secretary/recorder

9. Conditions of the Inquiry and Rights

The disciplinary inquiry focuses on two things namely; what happened and what to do about it.

The charge, time, date and venue as well as the rights of the employee facing disciplinary inquiry must be reflected on the approved disciplinary notification form. The employee must be given at least one (1) day to prepare his case.

The accused employee must acknowledge receipt of the notification to appear before the inquiry.

The accused employee may be suspended with pay pending the outcome of the disciplinary inquiry

The chairperson/presiding officer must familiarize the accused employee with the charges(s) against him all the rights he has and ask him whether or not pleads guilty, The complainant and his witnesses respectively will make statements. The accused employee and his representative may gross examine the complainant and his witnesses after giving evidence.

If the presiding officer finds it necessary to postpone the inquiry in order to obtain further information, the case may be adjourned to allow further investigations to be carried out.

The accused and his witness respectively will make statements at the end. They may also be cross-examined by the complainant.

9.lO. The presiding officer shall officially close the inquiry and consider all facts before him.

9.11 The presiding officer shall reconvene the inquiry within two days and inform the parties of his decision and reason for them.

9.12 If the accused employee is found guilty; the presiding officer must consider the following issues before deciding on the appropriate penalty;

9.12.1 The employee's service and disciplinary record,

9.12.2 Comments by the accused employee and his representative

9.12.3 Current warnings not expired

9.12.4 Provisions of the disciplinary guidelines

9.12.5 Any mitigation circumstances

9.13 The employee will be informed of the penalty and the reason for the penalty

9.14 The presiding officer will advise the employee that if he wishes to lodge an appeal;

this must be done within three (3) working days in accordance with the appeal procedure (see Annexure B)

9.15 If he found not guilty, he will be informed that the case is dismissed. The employee's disciplinary record will be cleared and he will be informed to go back to work as if nothing has happened.

9.16 Proper minutes of the disciplinary proceeding shall be kept. All the statements given must be read and signed. Clarifications, questions and answers must be written and signed.

9.17 Management must be consistent in the imposition of penalties. For example,

management should punish one employee for an offence and ignore the same offence

when it has been committee by another employee who is favoured by management.

9.18 The accused is innocent until he is proved guilty by the disciplinary inquiries

9.19 The disciplinary hearing must be held in a special or separate room in order to enable the complainant and the accused as well as their witnesses to give evidence without interference.

9.20 The witnesses shall wait outside and be called individually to come and give evidence.

9.21 If the accused employee refuses or fails to attend an inquiry without reasonable excuse, management shall have a right to take a decision in his absence.

10. Appeals

10.1 the employee shall have the right to appeal the outcome of a disciplinary inquiry under the following grounds:

10.1.1 if the hearing was not conducted according to the disciplinary code and

procedure;

10.1.2 if certain important facts were not taken account by the presiding officer;

10.1.3 If the penalty imposed is not in line with the disciplinary guidelines or the law.

10.2 The appellant must complete the appeal form in triplicate.

10.2.1 The first copy goes to the supervisor

10.2.2 The second copy goes to the goes to the head of the department;

10.2.3The third one goes to the personnel/industrial relations or human resources department.

10.3 The grounds for appealing and additional relevant information must be reflected on the appeal form;

10.4 The appeal must be lodged within three (3) working days to the higher level of management;

10.5 The personnel/industrial relations or human resources officer shall submit the appeal form together with the full disciplinary report to the next higher level of management for further action;

10.6 The next, higher level of management must arrange an appeal within two (2) working days of receiving the appeal form, unless otherwise agreed with the employee and or/his representative. The appellants must be given written notice of the inquiry (see Annexure C).

10.7 The same individuals who attended the disciplinary hearing with exception of the presiding officer are usually present at the appeal inquiry. The accused employee may choose another representative if he wishes.

10.8 If the former employee appeals against his dismissal, he will be still regarded as a dismissed employee and will not be entitled to any renumaration unless and until the original decision is turned down by the appeal inquiry;

10.9 The decision of the chairperson of the appeal or higher level of management shall be final and no further appeal will be granted.

10,.10 If fresh evidence is produced, which in the opinion of the chairperson might have changed the initial decisions, the case should be referred back to the chairperson who conducted the disciplinary hearing inquiry;

10.11 Out-of-time appeals will not be considered unless there is reasonable excuse for the delay;

10.12 The chairperson must record his decision on the appeal form and sign it. The appeal form is proof that they have been informed of the decision.

10.13 All the documents concerning the case must be given to the relevant department for filling and /processing.

11. The rights of an employee facing disciplinary inquiry

11.1 The right to know the nature of accusation

11.2 The right to be given an opportunity to state his case or to defend himself

11.3 The right to be disciplined timeously

11.4 The right to be given enough notice prior to the inquiry;

11.5 The right to representation

11.6 The right to call and cross-examine witnesses

11.7 The right to an interpreter acceptable to the employee

11.8 The right to a finding

11.9 The right to have previous service considered

1 l.lO The right to be given an opportunity to make representative on appropriate sanction 11.11 The right to be informed of the penalty imposed;

11.12 The right to appeal.

12. The Role of the Presiding Officer

12.1 To reach a decision after hearing all the facts;

12.2 To justify his/her decision on the basis of the fact

12.3 To take account of the law and facts and not to pre-judge the issue;

12.4 To control the disciplinary inquiry and to give inquiries and to give guidance on the proper procedure and rights.

12.5 To remain from outside influences but wait for sometime after the hearing to carefully consider the facts given by the accused and complainant as well as their witnesses;

12.6 To check whether notification was given few days before the inquiry;

12.7 To ensure that somebody is there for taking minutes if proceedings are not recorded;

12.8 To ensure that the charge is clear and understood by the accused

12.9 To find out whether an interpreter in needed

12.10 To find out whether the time, date and place are suitable for all parties including witnesses;

12.11 To ensure that the procedure to be followed in the hearing is known by everybody.

13. Issues to be taken account when deciding on an appropriate sanction

13.1 The Seriousness of the offence;

13.2 The circumstances of the offence;

13.3 The employee's circumstances;

13.4 The employer’s circumstances

13.5 Consistency in the imposition of penalties.

ANNEXURE A: NOTIFICATION OF DISCIPLINARY INQUIRY

Name of employeeCompany No

You are hereby notified to attend a disciplinary hearing on the(date) at

place -

At the said disciplinary inquiry, the following allegations will be brought against you:

The allegations is classified as serious misconduct/poor performance according to the company disciplinary code and procedure,

Your rights in terms of the disciplinary code and procedure are as follows:

1. the right to know the nature of accusation;

2. the right to be given an opportunity to state his case or to defend himself;

3. the right to be disciplined timenously

4. the right to be given enough notice prior to inquiry

5. the to representative

6. the right to call and cross-examined witnesses

7. The right to an interpreter acceptable to the employee

8. The right to a finding

9. The right to have previous service considered

10. The right to be given an opportunity to make representation on appropriate sanction;

11. the right to be informed of the penalty imposed

12. the right to appeal.

You are therefore suspended/not suspended with pay pending the outcome of the disciplinary inquiry (Delete what is not applicable)

Acknowledgement of receipt by employeeSignature of Witness

Date delivered:

Delivered by:

Note: Employee and Personnel Department should retain a copy of this form

ANNEXURE B: APPEAL FORM

(To be completed by Employee)

Name of Appellant: Company No:

Designation:

Nature of alleged offence:

Case heard by:;Date:

Designation:

Outcome of the hearing:.;

Penalty:

Statement grounds of appeal against the decisionDate:

Designation:;

My grounds of appeal against the decision are as follows:

Date

Date:.

Acknowledgement of receipt by Management

Note: attach a copy disciplinary proceedings including statement to this form.

ANNEXURE C

NOTICE OF THE APPEAL

Name of employee;

Following your appeal against your punishment after disciplinary inquiry be informed that the appeal hearing will be held on the.. (date) at

(time).........in the ;(venue).

Your rights are as follows:

1. The rights to representative;

2. The rights to motivate your grounds of appeal

3. The right to an interpreter acceptable to you

4. The right to know about the final decision.

EMPLOYEEREPRESENTATIVE

ACKNOWLEDGEMENT

SIGNATURE OF MANAGEMENT INCHARGE 

ANNEXURE D

WRITTEN WARNING

TO: COMPANY NUMBER:

EMPLOYEE’S SURNAME

DEPARTMENT:.....

This serves to confirm that the abovementioned employee was:

a) Counseled(not disciplinary action)

b) Given verbal warning

c) Given written warning

d) Given final warning

This action has been taken under the following reasons(s): the employee has been informed that failure to improve behaviour/performance may result in further disciplinary action being taken.

Date of offence:.

Expiry of offence:

Issued by:;(authorized Manager)

Received by:(employee)

Issued on the:(date)

In the presence of the following witnesses:

WITNESSES 1 

Does the employee wish to appeal?Yes/No:

STANDARD GRIEVANCE PROCEDURE

GRIEVANCE PROCEDURE

1. Definition

1.1 A grievance is any dissatisfaction, unhappiness or feeling of injustice that an employee may have relating to his/her job and employment situation that is brought to the attention of management at any level excluding disciplinary matters, collective grievances and wages and other substantive issues.

2. Purpose

2.1 The aim of this procedure is to outline the company’s practice I the handing of grievances.

3. Policy Statement

3.1 All the employees and management of the company agree that it is in their mutual interest to comply with this grievance procedure.

3.2 Employee are free to lodge grievances without fear of discrimination or victimization

3.3 A managerial employee responsible shall try his level best to resolve the grievance at the earliest possible stage and as speedily as possible.

3.4 Shop stewards/representatives are free to represent employees without fear of victimization.

4. Stages of the Grievance Procedure

4.1 Stage 1: Immediate Supervisor: 2 days

4.1.1 The aggrieved employee shall first raise his/her grievance verbally with

his/her supervisor or the latest supervisor in the event of a grievance against an immediate supervisor. It must be clear to the supervisor that the employee is lodging a formal grievance.

4.1.2 The supervisor shall investigate the grievance and attempt to resolve it within two (2) days

4.1.3 If the supervisor’s decision is not acceptable to the affected employee, the matter goes to stage 2.

5. Staged: supervisor: 3 Days

5.1 the employee may approach the supervisor who handled the grievances with his shop steward or representative and discuss the matter again.

5.2 The supervisor shall investigate the matter again and try to resolve it within three (3) working days

5.3 If no settlement reached, the matter goes to stage three.

6. Stage 3: Department Manager: 5 Days

6.1 The employee and his/her representative shall complete a grievance form hereby attached (Annexure A) and record all tjhe relevant details on the grievances form.

6.2 The grievance form shall be completed';

6.2.1 The original goes to the department manager

6.2.2 The first copy goes to the supervisor who handled the grievances

6.2.3 The second copy goes to the Human Resources or Personnel or Industrial Relation Department.

6.3 The employee together with his/her shop steward or representative must approach the department manager

6.4 The department manager shall convene an inquiry consisting of the aggrieved employee, his/her representative, and the supervisor and Industrial personnel Manager/Human Resources manager.

6.5 The parties shall attempt to resolve the matter within five (5) working days.

6.6 If the parties fail to resolve the matter, it goes to the last stage 4.

7. Stage 4: Company Manager: Seven Pays

The aggrieved employee and his/her representative complete the Grievance Appeal Form hereby attached and marked Annexure B.

A full written report of the grievances inquiry signed by the department manger and aggrieved employee must be given to the company manager to make final decision. The company manager may make his/her decision on the basis of the report or make further investigations

The company manager shall release his/her decision within seven working days At this stage the grievance procedure is exhausted and the decision of the company manger shall be final

If the aggrieved employee is still not satisfied she/h may refer the grievance to the labour Department, or handle it in accordance with provisions of the labour Code or other existing arrangement such as conciliation, mediation or arbitration.

NOTE:

a) If the matter is resolved at any stage; the settlement should also be recorded and signed by managerial employee handling the grievance and the aggrieved

employee.

b) The aggrieved employee and managerial employee concerned have a right to call witnesses and to receive document related to the grievances.

c) The parties handling the grievance may agree in writing to extend or shorten the time limits stipulated in this procedure, d) The company must make sure that all the employees know this grievance procedure.

ANNEXURE A

GRIEVANCE FORM

STAGE 3: Department Manager: 5 daysDate:

Company Name:1

Employee’s Name: .Company No:

JOB TITLE;

REPRESENTATIVE:COMPANY NO:

NATURE OF GRIEVANCE:

(ATTACHED ADDITIONAL SHEET OF PAPERS IF NECESSARY) SETTLEMENT DESIRED:

SIGNATURE OF EMPLOYEESIGNATURE OFREPRESENTATIVE

OUTCOME OF GRIEVANCE (IF NECESSARY, REASON FOR FAILURE TO REACH SETTUEMENT)

DATE: '

SIGNATURE OF DEPARTMENTAL MANAGER (OR SECOND LINE OF ,MANAGER)

Acknowledgement By:....

AGGRIEVED EMPLOYEEDATE

DISTRIBUTION AT THE END OF STAGE 3 TO:

Supervisor Department Manager

Human Resource/ Personnel for Industrial Relations Department

AMEXUBE B: GRIEVANCE APPEAL FORM LAST STAGE 4: Company Manager: 7 Days TO: THE COMPANY MANAGER

FROM;EMPLOYEE 'S NAME:COY NO

JOB TITLEDEPARTMENT:

REPRESENTATIVE:COY NO:

GROUND OF APPEAL AGAINST THE DECISION MADE BY THE DEPARTMENT MANAGER;'

1 FURTHER ATTACHED THE FOLLOWING REPORT OF THE GRIEVANCE AT STAGE 3. SETTLEMENT DESIRED:

SIGNATURE OF EMPLOYEESIGNATURE OF REPRESENTATIVE

OUT COME OF THE GRIEVANCE APPEAL (if necessary, give reasons for failure to reach settlement)

STAGE 4

OUTCOME OF GRIEVANCE AT FOURTH STAGE (IF NECESSARY, REASON FOR FAILURE TO REACH SETTLEMENT)

DATE:

SIGNATURE OF COMPANY MANAGER

DISTRIBUTE AT THE END OF STAGE 4 TO:

Supervisor

Departmental Manager

Human Resources/Personnel for Industrial Department

REDUNDANCY AND RETRECHMENT POLICY AND PROCEDURE 1 INTRODUCTION

Although every effort may be made by the company to ensure full and continuous employment, various factors can result in employee becoming retrenchment. These include restructuring, technological changes, closure of certain operations, balance of manpower levels to the demands of the market and efficiency improvements.

As such hiring, retrenchment and redundancy are recognized methods used to address the situation.

2. DEFLATIONS

For purpose of this policy and procedure, the terms redundancy, retrenchment, lay-off, company, union. Consultation and employer will have the following meanings;

2.1 Redundancy: means the state of no longer being needed. An employee whose job ceases to exist because there is no work for him due to technological reasons and not because of other reasons such as unsatisfactory behavior or performance.

2.2 Retrenchment: means the termination of an employee’s services by the company due to closure of certain functions in order to maximize efficiencies and contain overall costs.

2.3 Party: means either the company or the union/ worker representatives.

2.4 Lay-off: means to temporarily stop employing a person because there is no work for him to do. This temporary reduction in size of workforce may be accompanied by a specific date or event laid-off employee will return to work.

2.5 Company: means:

(Name of the company)

(Name of the recognized union)

2.7 Consultation: means the process by which the parties may seek the view, feelings and ideas of each other through their representatives or directly with non-union members.

2.8 Employer: means

(Name of Company)

2.9 Management: means persons employed by the company in managerial and supervisory position who are responsible for the management control of activities in the company.

2.10 Worker Representative: means an employee elected to represent other employees in accordance with, this agreement.

3. SUFFICIENT PRIOR WARNING OF THE PENDING RETRECHMENT

3.1 The company undertakes to give at least one (1) months’ notice of the pending retrenchment to a recognized Union or Democratically Elected Workers Committee where there is no union.

4. CONSULTATIONS

4.1The recognized union or workers committee shall be consulted in advance by the company in order to discuss ways and means of avoiding or minimizing retrenchment.

5. AVOIDANCE

5.1 Every endeavor shall be made to the extend possible and without defeating he objective highlighted in clause 1 above, to avoid and or minimize retrenchment. The company shall consider various ways and means of avoiding or minimizing retrenchment. In clause 7 below,

6. GENERAL

6.1 If retrenchments are unavoidable, they should be, and seen to be carried out by the company in fair, reasonable, equitable and sympathetic manner.

7. ALTERNATIVES TO AVOID OR MINIMIZE RETRENCHMENT

7.1 Where the prior warning of the pending retrenchment has been given in terms of

clause 3 above, the Union or Workers Representatives and Management will meet without delay to consider ways of avoiding or limiting the possible terminations without disturbing the efficiency and smooth running of the company of invoking unsound management practices.

3.1 The methods of limiting or avoiding terminations due to retrenchment will be

influenced by individual circumstances; The following alternative will, however, be considered.

3.1.1Restriction of hiring in the affected categories 7.2.2. Transfers within the company

7.2.3 Voluntary retrenchment; supplemented' by incentive severance package subject to management’s approval.

7.2.4, Attempts to transfer employees to associated companies

7.2.5 Investigations to secure employment with other employers

7.2.6 Inter-departmental transfers where there are specific skills

7.2.7 Spreading the workforce reduction over a certain period of time to permit natural reduction of the workforce

7.2.8 Training and re-training of existing employees where possible

7.2.9 Restriction of overtime and reduction of normal hours of work in the affected areas

7.2.10 Consideration of temporary lay-off if closure is for short period

7.2.11Granting of extended unpaid leave it closure is for short period

7.2.12 Dismissing casual/temporarily employees

7.2.13 Wherever possible, discussion should be held with a recognized union to find out whether there are other options for consideration in order to alleviate the problem

8 SELECTION OF EMPLOYEES TO BE RETRENCHED

8.1 Should measures to avoid retrenchment fail or be considered impractical, fair and objective criteria shall be specified and applied in the selection of employees to be retrenched, managements shall select employees in accordance with the following criteria:

8.1.1 Performance and conduct

8.1.2 Specialized skills of employment

8.1.3 Efficiency and performance of the employee

8.1.4 Conduct and behavior records

8.1.5 Last-In-First-Out (LIFO)

9 ASSISTANCE TO RETRENCHED EMPLOYEES IN RESPECT OF ALTERNATIVE EMPLOYMENT

9.1 The company undertakes to assist, to the extend possible, the retrenchment

employees in respect of alternative employment. It is prepared to provide documents such as Certificate of Service, Testimonial and other relevant documents.

10 PAYMENT OF REASONABLE SEPARATION BENEFITS

The company undertakes to pay the following terminal benefits or retrenchment packages;

[] CGM GROUP - 2004

Start date: → 2004-08-20
End date: → Not specified
Name industry: → Manufacturing
Public/private sector: → In the private sector
Concluded by:
Names associations: → CGM GROUP
Names trade unions: → Factory Workers Union [FAWU]
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