MEMORANDUM OF AGREEMENT BETWEEN DYNEA PAKISTAN LIMITED (HUB UNIT) AND DYNEA PAKISTAN LABOUR UNION - 2014

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FORM OF AGREEMENT: FORM “X” RULE 71 OF THE INDUSTRIAL RELATIONS (BALUCHISTAN) RULES, 1973

NAME OF PARTIES

1) DYNEA PAKISTAN LIMITED (HUB UNIT), a company incorporated under the Companies Ordinance 1984, having its registered office at 1st floor, Siddique Sons Tower, 3-Jinnah Co-operative society, Block No. 7/8, Main Sharea Faisal, Karachi 75350 (Sindh Province) and its factory located at Plot No. A-101, A-102, A-103, A-105, A-134, A-135 & A-136, Hub Industrial Trading Estate, Hub District Lasbela (Baluchistan Province).

AND

2) DYNEA PAKISTAN LABOUR UNION a registered Trade Union and certified Collective Bargaining Agent in respect of workmen of the Company employed at its factory at Hub Industrial Trading Estate, Hub, District Lasbela, Baluchistan, hereinafter referred to as the C.B.A.

REPRESENTING EMPLOYER

1) Mr. Shabbir Abbas - Chief Executive Officer

2) Mr. Muhammad Shakeeluddin - Chief Finance Officer

3) Mr. Syed Minhajuddin - G.M. (works)

4) Mr. Adnan Husseini

Head of Internal Audit

5) Mr. Muhammad Hanif Lasi

Deputy Manager Industrial Relations

REPRESENTING WORKERS

1) Mr. Abdul Rasheed - President

2) Mr. Ayub - Vice President

3) Mr. Muhammad Siddique Lasi - General Secretary

4) Mr. Lashkar Khan - Joint Secretary

SHORT RECITAL OF THE CASE

Whereas Dynea Pakistan Limited Labor Union a registered Trade Union and Certified Bargaining Agent representative workers of Dynea Pakistan Ltd. (Hub Unit) submitted a Charter of Demands under Section 42(1) of the Baluchistan Industrial Relations Act 2010 to the Company under cover of its letter dated August 11, 2014 after expiry of the Memorandum of agreement dated October 09, 2012 (Annexure-I).

AND WHEREAS bilateral negotiations initiated on the said Charter of Demands under Section 42(2) of the Baluchistan Industrial Relations Act 2010 were extended from time to time with mutual consent to enable the parties to arrive at an overall settlement.

AND WHEREAS as a result of bilateral negotiations held between the parties and in consideration of rise in the cost of living, a full and final settlement of all the demands contained in the said charter of demands has been arrived at the terms and conditions specified hereunder:

NOW THEREFORE, the following has been agreed between the parties hereto:

TERMS OF AGREEMENT

Due to rise in the cost of living and in consideration of full and final settlement of all the demands contained in Annexure “A” hereto the Company and C.B.A hereby agree to the following:

1) BASIC PAY

That the Basic Pay of all those workers of the company who were in permanent employment of the company on 11-08-2014 shall be increased by Rs. 1350/- (Rs. One thousand three hundred fifty only) per month w.e.f. August 11, 2014.

2) HOUSE RENT ALLOWANCE

That the House Rent Allowance will continue to be paid at the rate of 30% of the basic pay. Consequently, there will be an increase of Rs. 405/- (Rs. Four hundred five only) per month in House Rent Allowance in respect of all those permanent workers who were in employment of the company on August 11, 2014 due to increase of Rs. 1350/- (Rs. One thousand three hundred fifty only) per month in the basic pay in accordance with clause 1 above.

3) CONVEYANCE ALLOWANCE

That the existing Conveyance Allowance of Rs. 560/- (Rs. Five hundred sixty only) being allowed to eligible permanent workers will be increased by Rs. 110/- (Rs. One hundred ten only) per month to that of Rs. 670/- (Rs. Six hundred seventy only) per month w.e.f. August 11, 2014.

4) MILK ALLOWANCE

That the existing Milk Allowance of Rs. 316/- (Rs. Three hundred sixteen only) being month to that of Rs. 366/- (Rs. Three hundred sixty six only) per month w.e.f. August 11, 2014. All other terms and conditions for payment of this allowance will however remain unaltered.

5) WASHING ALLOWANCE

That the existing Washing Allowance of Rs. 160/- (Rs. One hundred sixty only) being allowed to permanent workers will be increased by Rs. 30/- (Rs. Thirty only) per month to that of Rs. 190/- (Rs. One hundred ninety only) per month w.e.f. August 11, 2014. All others terms and conditions for payment of this allowance will however remain unaltered.

6) LEAVE FARE ASSISTANCE

That the existing Leave Fare Assistance of Rs. 10,000/- (Rs. Ten thousand only) payable once in two years to permanent workers will be increased by Rs. 1000/- (Rs. One thousand only) to that of Rs. 11,000/- (Rs. Eleven thousand only) w.e.f. August 11, 2014 once in two years.

7) HEALTH INSURANCE COVER

After expiry of the existing Insurance Policy for hospitalization inpatient medical cover of permanent workers employed at Hub, the company shall renew insurance policy for hospitalization inpatient medical cover of permanent workers at Hub in accordance with the exiting terms and conditions of insurance. However, the existing hospitalization inpatient medical cover of Rs. 30,000/- (Rs. Thirty thousand only) per confinement per person shall be increased to Rs. 40,000/- (Rs. Forty thousand only) per confinement per person.

8) SHIFT ALLOWANCE

That the existing Shift Allowance of Rs. 20/- (Rs. Twenty only) per month being allowed to eligible permanent workers will be increased by Rs. 10/- (Rs. Ten only) per month to that of Rs. 30/- (Rs. Thirty only) per month w.e.f. August 11, 2014. All other terms and conditions for payment of the said allowance will however remain unaltered.

9) NIGHT SHIFT ALLOWANCE

That the existing Night Shift Allowance of Rs. 20/- (Rs. Twenty only) per shift being allowed to eligible permanent workers will be increased by Rs. 10 (Rs. Ten only) per shift to that of Rs. 30/- (Rs. Thirty only) per shift w.e.f. August 11, 2014. All other terms and conditions for payment of the said allowance will however remain unaltered.

10) WORKERS PICNIC

That henceforth assistance being provided to workers for arranging picnic for themselves will be allowed to the maximum amount of Rs. 170,000/- (Rs. One hundred seventy thousand only) per annum.

11) GENERAL

i. The C.B.A hereby agrees that in consideration of the benefits given by the company under this Agreement, all the remaining demands, whether covered by the Charter of Demands or not shall be construed to have been dropped and/or withdrawn by the Union under this agreement and thus will be deemed to have been settled and/or satisfied.

ii. It has also been agreed that between the C.B.A and the Company that all other terms and conditions of employment & previous Agreements/Settlements not covered or modified by this agreement shall continue unchanged subject to the Company’s right to amend the service rules and other terms and conditions of employment and enforcement of relevant laws.

iii.That in consideration of the benefits allowed the Company under this Agreement the C.B.A agrees and undertakes not to raise or pursue directly or indirectly any demand or dispute involving any direct or indirect financial commitment on the part of the Company, during the operative period of this Agreement.

iv. Since the monetary benefits under this Agreement have been granted with a view to providing relief due to ruse in the cost of living, hitherto, notified and/or announced by the Government as well as such rise which may occur during the operation of this Agreement, it is specifically agreed by the C.B.A that in the event of the Company being compelled by any law or any mandatory Government directive to pay any amount to the workers over the course of period kept in view of this settlement, then in that event, the workmen will not remain entitled to the monetary benefits under this Agreement to the extent of the amount which they shall receive under the law or mandatory Government directive.

v. It has also been agreed by the C.B.A that it will make every endeavor towards maximizing production, improving efficiency and quality, avoiding waste of working hours in non-productive and non-official work and encourage workmen towards higher productivity and betterment of discipline.

12) PERIOD OF OPERATION OF AGREEMENT

This agreement will be deemed to have come into operation w.e.f. August 11, 2014 and will continue to remain in force for a period of twenty two months from the date of signing of this agreement.

Signed on December 15, 2014 (Fifteen December Two Thousand Fourteen) at Hub, Baluchistan.

*****

Memorandum of Agreement between Dynea Pakistan Limited (Hub Unit) and Dynea Pakistan Labour Union - 2014

Start date: → 2014-08-11
End date: → 2016-08-10
Ratified by: → Other
Ratified on: → 2015-12-15
Name industry: → Manufacturing
Name industry: → Manufacture of chemicals and chemical products
Public/private sector: → In the private sector
Concluded by:
Name company: →  Dynea Pakistan Limited
Names trade unions: → 

WAGES

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

Wage increase

Wage increase: → PKR 1350.0
Wage increase starts: → 2014-08

Once only extra payment

Once only extra payment: → 30 %
Once only extra payment due to company performance: → No
Once only extra payment takes place: → 2014-08

Premium for evening or night work

Premium for evening or night work: → PKR  per month
Premium for night work only: → Yes

Extra payment for annual leave

Extra payment for annual leave: → PKR 11000.0

Allowance for commuting work

Allowance for commuting work: → PKR 670.0 per month

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → No
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