AGREEMENT / SETTLEMENT BETWEEN ATLAS ENGINEERING LIMITED AND ATLAS ENGINEERING WORKERS UNION (CBA) - 2012

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(FORM – X )

(UNDER THE PROVISION OF IRA 2010 (Sindh)

NAME OF THE PARTIES:

1. Messrs: Atlas Engineering Limited, 15th Mile National High way, Landhi, Karachi-75120,

AND

2. Atlas Engineering Workers Union (CBA), 15th Mile, National Highway, Landhi, Karachi-75120.

REPRESENTING COMPANY / MANAGEMENT

1. Shakil Ahmed - Chief Financial Officer

2. ArshadSiddiqui - GM Plant

3. Rashid Ahmed - GM Supply Chain

4. Maj. Abdul Sattar (Retd.) - Head of HR & Admin

5. Syed. Shujaat Ali - Manager Radiator Products

6. Junaid Ahmed Siddiqui - Manager Al. Products

7. Sikander Ali - Manager Cl Products

8. Muhammad Nawaz - AM – ER

REPRESENTING CBA/UNION/WORKERS

1. Abdul Kareem - Chairman

2. Naseeruddin - President

3. Abdul Aziz - Vice President – 1

4. Allah Buksh - Vice President – II

5. M ZaffarAquil - General Secretary

6. Muhammad Gulab - Joint Secretary

7. Muhammad Saeed - Propaganda Secretary

8. AltafHussain - Treasurer

SHORT RECITAL OF THE CASE

Atlas Engineering Workers Union (CBA) (hereinafter referred to as the Collective Bargaining Agent i.e. CBA/Union/Workers) served the Management of Atlas Engineering Limited (hereinafter referred to as the Company) Charter of Demands dated 25th MARCH 2013, under the Section -42(1) of IRA-2010 (Sindh), copy of the same are attached hereto as Annexure-A.

And, whereas the Management (hereinafter referred to as the Company) served the CBA/Union of Atlas Engineering Workers Union (hereinafter referred to as the CBA) Charter of Demands dated 27th MARCH 2013, under Section-42(1) of IRA-2010 (Sindh, which Charter of Demands in hereinafter referred to as Annexure-B.

The Management/CBA called meeting and several bilateral meetings were held for discussions and negotiations of the Charter of Demands in order to come to an amicable Settlement/Agreement on Demands submitted by both the Management and the CBA. In view of recurring rise in cost of living, the following Agreement/Settlement has been reached in full and final settlement of all the demands in the Charter of Demands of both the parties:

1. BASIC PAY/WAGES:

That with effect from 1st DECEMBER, 2012, the monthly wage of all the permanent workers, who were in the employment of the Company on 30TH NOVEMBER,2012, and thereafter continued to be in the employment of the Company up to the date of signing of this Settlement, shall be increased by Rs. 175.00 (Rupees One Hundred Seventy Five Only) per month.

2.

The copy of revised Pay Scale is attached as Annex – C

3. HOUSE RENT ALLOWANCE:

That with effect from 1st DECEMBER, 2012, the existing rate of House Rent Allowance of Rs. 1,600.00 (Rupees One Thousand Six Hundred Only) per month of those permanent workers will be increased by Rs. 300.00 (Rupees Three Hundred Only) to make a total House Rent Allowance of Rs. 1,900.00 (Rupees One Thousand Nine Hundred Only) per month as per present Rules.

4. WASHING ALLOWANCE:

That with effect from 1st DECEMBER, 2012, the Company will increase the existing rate of Washing Allowance of Rs. 1050.00 (Rupees One Thousand Fifty Only) per month payable to those permanent workers by Rs. 300.00 (Rupees Three Hundred Only) per month to make a total washing allowance of Rs. 1,350.00 (Rupees One Thousand Three Hundred Fifty Only) per month. Rest of the terms and conditions would remain unchanged.

5. CANTEEN ALLOWANCE:

a. That with effect from 1st DECEMBER, 2012, the Company will increase the existing rate of Canteen Allowance of Rs. 1115.00 (Rupees One Thousand One Hundred Fifteen Only) per month payable to each those permanent worker by Rs. 300.00 (Rupees Three Hundred Fifteen Only) per month to make a total Canteen Allowance of Rs. 1415(Rupees One Thousand Four Hundred Fifteen Only) per month. Rest of the terms and conditions would remain unchanged.

b. It is also agreed by the CBA that workers will contribute Rs. 200.00 (Rupees Two Hundred Only) per month instead of Rs. 175/= (Rupees One Hundred Seventy Five only) towards canteen expenses which already deducted from monthly salary as agreed by CBA, w.e.f 1st September 2013.

6. ALLWIN SPECIAL ALLOWANCE:

That with effect from 1st DECEMBER, 2012, the Company will increase the existing rate of Allwin Special Allowance of Rs. 1,409.00 (Rupees One Thousand Four Hundred Nine Only) per month payable to those permanent worker by Rs. 315.00 (Rupees Three Hundred Fifteen Only) per month to make a total Allwin Special Allowance of Rs. 1,724.00 Rupees One Thousand Seven Hundred Twenty Four Only) per month. Rest of the terms and conditions would remain unchanged.

7. RECREATION ALLOWANCE:

That the existing rate of Recreation Allowance of Rs. 1,100.00 (Rupees One Thousand One Hundred Only) per annum will be increased by Rs. 500.00 (Rupees Five Hundred Only), per annum to make a total Recreation Allowance of Rs. 1,600.00 (Rupees One Thousand Six Hundred Only), per annum. The grant of this allowance will be given to those permanent workers only who have completed one-year’s continuous service and will be subject to the condition that the worker who proceeds on approved annual leave, whether with or without pay, does not extend his leave duration. In other words, if a worker over stays this originally sanctioned leave period for any reason whatsoever, he will not be eligible to receive this allowance.

8. LONG SERVICE AWARD:

The Management agrees also to pay in Long Term Service Cash Award to the workers on completion of 10, 15, 20, 25, 30, 35 & 40 years of services (Sheet attached herewith as annex-D). All other terms & conditions will remain same / unchanged:

9. UMRAH:

That with effect from signing of this agreement, the Company will increase the existing rate of UMRAH of Rs. 15,000.00 (Rupees Fifteen Thousand Only) to Rs20,000.00 (Twenty Thousand Only). Rest of the terms and conditions would remain unchanged.

10. ATTENDANCE REWARD:

That with effect from 1st DECEMBER, 2012, the Company will increase the existing rate of Annual Attendance Reward of Rs. 500.00 (Rupees Five Hundred Only) to Rs1000.00 (One Thousand Only). Rest of the terms and conditions would remain unchanged.

11. EX GRATIA UPON DEATH:

That in case of death of a permanent worker, company agrees to increase Ex-Gratia upon Death by Rs. 3,000.00 (Rupees Three Thousand Only) which totally comes to Rs. 15,000.00 ( Rupees Fifteen Thousand Only) as funeral expenses to the widow/legal heirs of the deceased worker with effect from signing date of this agreement. In case of death of wife of worker the amount for above mentioned purpose is increased from Rs. 8,000.00 (Rupees Eight Thousand Only). toRs. 10,000.00 (Rupees Ten Thousand Only) Other terms & conditions will remain same / unchanged.

12. FINANCIAL ASSISTANCE FOR WIDOW:

That with effect from signing of this Agreement, the Company will increase the existing rate of financial assistance for widow of Rs. 6,000.00 (Rupees Six Thousand Only) per month payable to the widow of deceased permanent worker in case of his death while in service with the company by Rs. 2,000.00 (Rupees Two Thousand Only) per month to make a total financial assistance for widow of Rs. 8,000.00 (Rupees Eight Thousand Only) per month. Rest of the terms and conditions would remain unchanged.

13. WORKERS DAUGHTER MARRIAGE GIFT:

THAT with effect from signing of this Agreement, the Company agrees to increase Worker Daughter Marriage Gift by Rs. 2000.00 (Rupees Two Thousand Only) which totally comes to Rs. 7,000.00 (Rupees Seven Thousand Only). All other terms & conditions remain unchanged.

14. HEAT, HAZARDOUS & NIGHT ALLOWANCE:

That with effect from 1st DECEMBER, 2012, the Company will increase the existing rate of Heat , Hazardous & Night Allowance by Rs2/= (Rupee Two Only) per attendance per Worker. Rest of the terms and conditions would remain unchanged.

15. LONG TERM LOAN:

THAT with effect from signing of this agreement the Company agrees to pay Four Salaries for Loan. All other terms & conditions remain unchanged.

16. TRANSPORT / BUS FACILITIES:

That with effect from 1st DECEMBER, 2012, the Company will increase the existing rate of Transport / Bus compensation from Rs. 51.00 (Rupees Fifty One Only) per attendance per worker (up / down) to Rs. 57.00/- (Rupees Fifty Seven Only) per attendance per worker (up / down) in lieu of providing transport This compensation would not be included or part of any other calculations, allowance or gross wages. Rest of the terms and conditions would remain same / unchanged.

17. PICNIC:

Under existing benefit the management agreed to enhance the picnic expenditure by Rs. 10000.00 (Rupees Ten Thousand Only) from Rs40,000.00 (Rupees Forty Thousand Only) to Rs. 50,000.00 (Rupees Fifty Thousand Only). Rest of the terms and conditions would remain same / unchanged.

18. BONUSES:

10-C BONUS / STATUTORY BONUS:

The Statutory Bonus, subject to provision of 10-C would be paid as per the law, on the basis of Company Annual profit (PBT), whenever declared so in the audited accounts of the Company.

ANNUAL BONUS:

Management agrees to pay Four Months & Eight Days (4M+8D) Bonuses, on yearly basis on the following terms, for the financial years ending 30th June, 2013 and 30th June, 2014.

• BONUS will be calculated on the basis of and equivalent to Monthly Basic pay as on 30TH JUNE of each financial year plus Statutory Cost of Living Allowance, if any, plus Compensatory Allowance to eligible workers, Company’s Dearness Allowance but excluding all other Allowances, whatsoever and/or Bonus(es)

and/or earnings, howsoever termed.

• ELIGIIBLE workers for the purpose of this Bonus will mean and include those permanent workers only who will have completed one-year’s continuous service in the Company on 30TH JUNE of each Financial Year.

• ANY eligible worker who has absented himself from duty without permission/leave will not be entitled to Bonus proportionate to the number of days he remained absent from duty in that Financial Year and the entitlement to the Bonus shall stand adjusted.

• THOSE permanent workers who will have less than one-year’s continuous service on the 30TH JUNE, but have completed Ninety (90) days continuous service on that year will be paid Bonus on pro-rate basis in each Financial Year.

• TWO advance wages against bonus shall be paid to all permanent workers during the month of Ramzan preferably in the First Week and two advance wages preferably in the First Four Days of Zil Hajj. Adjustment of advance wage shall be as per the prevailing terms and conditions.

THAT the CBA / Workmen have agreed not to raise any further demand in respect of Bonuses other than mentioned in this agreement.

19. SHOP SUPERVISORS / MONITORS:

That the company & CBA agree that all those permanent workers who are assigned with supervisory / monitory role (who do not have direct production targets) amongst the permanent workers may be considered for the position of permanent supervisors in executive cadre under following criteria.

• Period of Performance of duties as supervisor / monitor not less than one year.

• Performance as Supervisor should not be less than “Excellent”.

The above mentioned workers who do not fulfill or come up to the criteria would be liable to be reverted back to their respective work areas with individual production targets & removed from supervisory duties, with effect from signing of this agreement.

20. PRODUCTIVITY/PRODUCTION:

The CBA Union agrees and undertakes that productivity shall be increased as per capacity of the machine from the date of this Settlement. The schedule of capacity of production is annexed as Annex-E from pages No. 01 to 04. It is also agreed that the benefits granted here in above under this settlement are subject to the achievement of the requisite productivity / productions.

THAT the CBA has further agreed that the Standard, Quality, Quantum and rate of the production will be maintained at all times, whether in normal working hours and / or during overtime.

21. DISCIPLINE:

To maintain discipline within or around the factory premises is the entire prerogative of the Management and the CBA undertakes that it will neither create any obstacle nor interference by any means in exercise of the prerogative of the Management.

22. UNION’S ACTIVITIES:

THE CBA/Union/ Workers undertake(s) not to indulge in Union’s activities of any kind, whatsoever during working hours and/or within the factory premises.

CBA undertakes that the workers will strictly adhere to the factory timings and shall not early pack-up at the time of lunch and at the end of the shift. And shall also report to their duty place well in time even after the lunch break. The workers shall wear neat and clean uniforms and shoes and also observe all safety measures, like wearing of goggles, gloves etc. during the course of duty which facility is fully provided by the Management. In case any worker fails to adhere / use the safety measures and some accident occurs, the management should not be responsible for the consequences.

FIINALITY OF DEMANDS:

In considerations of the benefits allowed under the Settlement, Workers/Union/CBA undertake(s) and agree(s) that with effect from the date of signing of this Settlement, they will not raise any demand involving finances of any kind whatsoever whether direct or indirect during the pendency / operation of this Settlement.

FINALITY OF SETTLEMENT:

Subject to what has been agreed above, it has further been agreed that all other demands and/or any part thereof contained in the Charter of Demands of both the parties dated 25th MARCH 2013, As Annexure-A & B, respectively, will be deemed to have been finally settled and will not be raised again in any form whatsoever during the pendency / operation of this Settlement.

DUPLICATION OF BENEFITS:

The rights and benefits herein agreed to and given are in modification of the corresponding rights and benefits, conferred, if any, under the laws and/or Agreement / Settlement and nothing herein shall be construed as entitling the workers to claim dual benefits. The existing terms and conditions of employment shall continue, except to the extent modified by the Settlement.

AGREEMENT PERIOD AND EFFECTIVE DATE:

The Agreement becomes effective and comes into operation with effect from 1st DECEMBER, 2012, and shall be binding and remain in force up to 30th NOVEMBER, 2014.

Singed on 30th day of August,2013

*****

Agreement / Settlement between Atlas Engineering Limited and Atlas Engineering Workers Union (CBA) - 2012

Start date: → 2012-12-01
End date: → 2014-11-30
Ratified by: → Other
Ratified on: → 2013-08-30
Name industry: → Manufacturing
Name industry: → Manufacture of machinery and equipment
Public/private sector: → In the private sector
Concluded by:
Name company: →  Atlas Engineering Limited
Names trade unions: →  Atlas Engineering Workers Union

WAGES

Wages determined by means of pay scales: → No
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → PKR 175.0
Wage increase starts: → 2012-12

Once only extra payment

Once only extra payment due to company performance: → No

Premium for evening or night work

Premium for evening or night work: → PKR  per month
Premium for night work only: → No

Premium for hardship work

Premium for hardship work: → PKR 2.0 per month

Allowance for commuting work

Allowance for commuting work: → PKR 57.0 per month

Allowance for seniority

Allowance for seniority after: → 10 years of service

Meal vouchers

Meal allowances provided: → Yes
→ 1415.0 per meal
Free legal assistance: → No
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