COLLECTIVE BARGAINING AGREEMENT BETWEEN ATLAS HONDA LIMITED AND ATLAS HONDA LIMITED MEHNATKASH UNION - 2014

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FORM ‘X’ (RULE 70)

FORM OF AGREEMENT

NAME OF THE PARTIES:

M/s. Atlas Honda Limited, a Company having its office at F-36, Estate Avenue, S.I.T.E., Karachi, hereinafter called “The Company”.

AND

Atlas Honda Limited Mehnatkash Union and certified as Collective Bargaining Agent, having its office at F-36, Estate Avenue, S.I.T.E., Karachi, hereinafter called “The C.B.A.”.

REPRESENTING EMPLOYER:

1. Mr. Razi-ur-Rahman - General Manager HR, Admn & C.A.

2. Mr. Mr. Azmatullah Khattak - Manager Operation

3. Mr. Jamil A. Khan - National Manager Admn. & IR

4. Mr. Mushtaq Hussain - Section Manager Payroll

5. Mr. Rahimullah Shah-Manager Admin/IR &

Notified Factory Manager

REPRESENTING WORKERS:

1. Mr. Syed Fahim-ul-Hassan - President

2. Mr. Abdul Malik - Vice President

3. Mr. Muneeb ur Rehman - General Secretary

4. Mr. Syed Sarfraz ul Hassan - Office Secretary

5. Mr. Shahid Hamid - Finance Secretary

6. Mr. Mohammad Javaid - Propaganda Secretary

7. Mr. Mohammad Sohail - Member Managing Committee

8. Mr. Ejaz Butt - Member Managing Committee

9. Omer Gull - Member Managing Committee

SHORT RECITAL OF THE CASE

Whereas the CBA submitted a Charter of Demands on 01.08.2014 under Section 35 (1) of The Sindh Industrial Relations Act 2013 (Annexure ‘A’) and the Management also submitted a Charter of Demands on 01. 08. 2014 (annexure ‘B’) under Section 35(1) of The Sindh Industrial Relations Act 2013; and whereas pursuant to the said notices and Charter of Demands and mutual discussions and bilateral negotiations on both the Charter of Demands and in view of recurring rise in cost of living they have now reached an Agreement on the following terms:

NOW, THEREFORE, THIS AGREEMENT WITNESSETH AS FOLLOWS:

1. Increase in Basic Wages/Salary:

That with effect from 01.08.2014 the existing basic salary of every permanent workman, who is in the employment of the company on the date of signing of this Agreement will be increased by Rs. 380/- (Rupees three hundred and eighty only) per month. It is further agreed that the workman to be employed after the signing of this Agreement will not be entitled to receive this increase and will be given starting basic salary as per the scale.

2. House Rent Allowance:

That with effect from 01.08.2014 the existing rate of House Rent Allowance of every permanent workman, who is in employment of the company on the date of signing of this Agreement, will be increased by Rs. 2. 160/- (Rupees two thousand one hundred and sixty only) per month.

3. Conveyance Allowance:

That with effect from 01.08.2014 the existing rate of Conveyance Allowance of every permanent workmen, who is in employment of the company on the date of signing of this Agreement, will be increased by Rs. 2.160/= (Rupees two thousand one hundred and sixty only) per month.

4. Utility Allowance:

That with effect from 01. 08. 2014 the existing rate of Utility Allowance of every permanent workman, who is in the employment of the Company on the date of signing of this Agreement, will be increased by Rs. 1,400/- (Rupees one thousand four hundred only) per month.

5. Atlas Allowance:

That with effect from 01. 08. 2014 the existing rate of Atlas Allowance of every permanent workmen, who is in the employment of the Company on the date of signing of this Agreement, will be increased by Rs. 1,300/- (Rupees one thousand three hundred only) per month.

6. Attendance Allowance:

That effect from 01. 08. 2014 the existing Attendance Allowance will be increased by Rs. 150/- (Rupees one hundred and fifty only) per month to make a total of Rs. 1.150/- (Rupees one thousand one hundred and fifty only) per month, payable to permanent workman of the Company who will have full attendance during the month. (If 3 short leave in a month, he will be entitled for attendance allowance).

7. Recreation/ Traveling Fare Allowance:

That with effect from 01.08.2014 the existing rate of Recreation Allowance will be increased by Rs. 400/- (Rupees four hundred only) to make a total Recreation Allowance of Rs. 3,000/- (Rupees three thousand only) payable to the permanent workmen once in a year subject to the worker’s availing privilege leave for continuous 21 (twenty one) days in the year.

8. Meal Allowance:

(a) That with effect from 01.08.2014 the existing rate of meal charges will be increased from Rs. 70/-(Rupees seventy only) to Rs. 75/- (Rupees seventy five only). Other terms & conditions will remain the same.

(b) That with effect from 01.08.2014 the existing rate of breakfast charges for security guards, working in ‘C’ shift will be increased by Rs. 5/- (Rupees five only) per day, making a total of Rs. 75/- (Rupees seventy five only) per day.

(c) That with effect from 01.08.2014 the security guards, garden staff (Mali) and sanitation staff on duty will be entitled for Rs. 250/- (Rupees two hundred and fifty only) per day subject to maximum for three days on each of Eid-ul-Fitr and Eid-ul-Azha.

9. Ex-gratia Grant upon Death:

That with effect from 01.08.2014 the existing ex-gratia grant of Rs. 55,000/- (Rupees fifty five thousand only) will be increased by Rs. 3,000/- (Rupees three thousand only) so that a total of Rs. 58,000/- (Rupees fifty eight thousand only) will be paid as an ex-gratia to the legal heirs/dependents of the deceased workman to meet the funeral expenses.

10. Ex-gratia upon Marriage

That with effect from 01.08.2014, a sum of Rs. 16,000/- (Rupees sixteen thousand only) as Ex-gratia upon the marriage of one daughter of AHL permanent worker will be paid to him one time during his service with the Company.

11. Welfare Fund:

That the Company agrees to increase the amount of Welfare Fund from Rs. 650,000/- (Rupees six hundred fifty thousand only) to Rs. 700,000/- (Rupees seven hundred thousand only). Welfare loan will be deducted in 20 equal monthly installments. All other terms & conditions shall remain the same.

12. Canteen Facility:

(i)That the Company agrees to raise the existing subsidy from Rs. 1,480/- (Rupees one thousand four hundred and eighty only) to Rs. 1,680/- (Rupees one thousand six hundred and eight only) per workers/employees per month with effect from 01.08.2014 to 31.07.2015 and Rs. 1,880/- (Rupees one thousand eight hundred and eighty only) per workers/employees per month with effect from 01.08.2015 to 31.07.2016. The other terms & conditions shall remain the same as mentioned in Clause 16 of the Settlement dated 08.10.1981.

(ii)It is agreed that with effect from 01. 08. 2014 existing lunch subsidy paid to workers, where canteen facility is not available, will be raised from Rs. 1,480/- (Rupees one thousand four hundred and eighty only) to Rs. 1,680/- (Rupees one thousand six hundred and eighty only) per month with effect from 01.08.2014 to 31. 07. 2015 and Rs. 1,880/- (Rupees one thousand eight hundred and eighty only) per month with effect from 01.08.2015 to 31. 07. 2016

13. Fair Price Shop:

(a) That with effect from 01.08.2014 the Company agrees to increase the amount of Fair Price Shop Fund from Rs. 250,000/- (Rupees two hundred and fifty thousand only) to Rs. 270,000/- (Rupees two hundred and seventy thousand only).

(b) That with effect from 01.08.2014 the Fair Price Shop Handling Allowance will be increased from Rs. 2,800/- (Rupees two thousand eight hundred only) to Rs. 3,200/- (Rupees three thousand two hundred only) per month.

14. Best Attendance Award

That with effect from 01.08.2014 existing amount of best attendance award will be increased from Rs. 8,000/- (Rupees eight thousand only) to Rs. 10,000/- (Rupees ten thousand only) in a year. Other terms and condition shall remain the same as mentioned in ‘Addenda’ of the Agreement dated 30th August 2004.

15. Leave Encashment Calculation

Leave encashment amount of leaves will be calculated on the basis of Gross Salary as per pay slip of worker.

16. Grant of Annual Leaves

In case of grant of annual leaves, Off Saturday will be excluded for the purpose of calculating number of day’s leave granted/availed.

17. Gratuity

If an employee expires during his employment, he will be entitled to the Gratuity admissible to a worker who retires from service.

18. Bonus:

It is agreed that the Company shall pay bonus each year to its permanent workers as follows:-

(i) A fixed bonus amount equallent to ten (10) basic salaries 01.08.2014 of each permanent worker. An annexure ‘C’ to this effect is attached.

Bonus will be paid in the month of July of respective years.

(ii) For any subsequent employee the fixed amount will be equivalent to ten basic starting salaries.

(iii) It is further agreed that in consideration of stated herein above; one basic salary plus COLA will be paid as 10-C Bonus if company makes profit in any year. As agreed this will discharge the Company’s liability under Standing Order Ordinance for the payment of 10-C Bonus.

(iv) That no Profit Bonus shall be payable to any workman who has put in less than 90 days continues service in the financial year in respect of which the payment is to be made.

(v) That the bonus for any year shall be payable only to those workers who have completed at least 90 days continuous employment during each financial year, provided that the workmen, who were not in employment for the entire full period of each financial year shall be paid proportioned amount keeping in view the length of service in the year.

(vi) That it is specifically agreed that in consideration and in view of the above Agreement and even otherwise the Collective Bargaining Agent being totally satisfied with the accounts of the Company shall not subsequently dispute the same in any manner what so ever, for the purpose of bonus.

(vii) It is further agreed that CBA will not raise any demand in connection with bonus whatsoever for all times to come.

19. Uniform Washing Allowance

That with effect from 01.8.2014 the existing uniform washing allowance of sanitation workers will be creased by Rs. 125/- (Rupees one hundred and twenty five only) per month, making a total of Rs. 350/- (Rupees three hundred and fifty only) per month.

20. Hajj/Pilgrime

That the company agree to pay a lump sum Rs. 25,000/= (Rupees twenty five thousand only) to Non-Muslim, one permanent worker in each year to visit his/her holy places.

21. Productivity:

That the C.B.A. agreed to increase the existing per shift production, dispatches, issues and all other targets in each of the Shop/Department as per existing machine/equipment capacity so as to give okay production, dispatches, issues, etc. of any model of motorcycle or any product per shift with the stated manpower with effect from the date of signing of this Agreement as per schedule attached and marked “D”. it is further mutually agreed and accepted that the targets & capacities already herein above are subject, of course, to change in production and capacities due to Balancing / Modernization / Replacement / Up-gradation or otherwise. If a worker has a problem to give production he will be transferred with mutual consent of Union (CBA) and Management.

22. General:

A. That the C.B.A. agrees that C.B.A. and the workers will fully comply with all the previous Agreements/Settlements in the letter and spirit and remove all bottle-necks and irritants.

B. In consideration of the benefits allowed under this Agreement the C.B.A. agrees and undertakes that it will not raise, during the period of Agreement, any demand or industrial dispute involving financial implications, directly or indirectly for the Company or otherwise raise any other demand whatsoever,

That the C.B.A. further agrees that all other demands contained in the Charter of Demand dated 01. 08. 2014 as per Annexure ‘A’ or otherwise not specifically agreed to by the Company and/or not expressly dealt within this Agreement shall be deemed to have been withdrawn and the Management also agrees that all other demands contained in the Charter of Demand dated 01.08.2014 as per Annexure ‘B’ or otherwise not specifically agreed to and/or not expressly dealt within this Agreement shall be deemed to have been withdrawn.

C. Existing Terms & Conditions:

Except to the extent modified by this Agreement all existing terms & conditions of employment shall continue to remain the same.

It is specifically understood and agreed that all the benefits and concessions granted under this Agreement by the Company are in consideration of the Union/Workers maintaining the agreed production levels free from any defects whatsoever.

D. Discipline:

That the C.B.A. agrees that it shall observe all the rules and regulations of the Company, shall cooperate with the Management to maintain and improve discipline among the workmen, shall maintain industrial peace and harmony in the Establishment and shall cooperate with the Management :-

(i) To improve productivity;

(ii) To reduce cost;

(iii) To improve quality;

(iv) To reduce scrap/rejects/wastage; and

(v) To maintain the same rate of production per hour during overtime as during the normal shifts.

(vi) To ensure that no worker shall leave his workplace or assigned duty during working hours without proper authorization.

E. Education/Training:

That the C.B.A. agrees to co-operate with the Management for education and training of workers.

F. All benefits under this Agreement shall be payable and take effect from 01.08.2014 unless otherwise specifically stated in the relevant clause of the Agreement.

G. Period of Agreement:

This Agreement becomes effective and comes into force with effect from 01.08.2014 and shall be binding and shall remain in force up to 31.07.2016.

In witness whereof the parties hereto have hereunto set their respective hands this 20th day of August, 2014.

******

Collective Bargaining Agreement between Atlas Honda Limited and Atlas Honda Limited Mehnatkash Union - 2014

Start date: → 2014-08-01
End date: → 2016-07-31
Ratified by: → Other
Ratified on: → 2014-08-20
Name industry: → Manufacturing
Name industry: → Manufacture of motor vehicles, trailers and semi-trailers
Public/private sector: → In the private sector
Concluded by:
Name company: →  Atlas Honda Limited
Names trade unions: →  Atlas Honda Limited Mehnatkash Union

TRAINING

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

WORKING HOURS, SCHEDULES AND HOLIDAYS

Paid annual leave: → 21.0 days
Paid annual leave: → 3.0 weeks
Provisions on flexible work arrangements: → No

WAGES

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

Wage increase

Wage increase: → PKR 380.0
Wage increase starts: → 2014-08

Once only extra payment

Once only extra payment due to company performance: → No

Extra payment for annual leave

Extra payment for annual leave: → PKR 3000.0

Allowance for commuting work

Allowance for commuting work: → PKR  per month

Meal vouchers

Meal allowances provided: → Yes
→ 75.0 per meal
Free legal assistance: → No
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