MEMORANDUM OF AGREEMENT BETWEEN FUTEHALLY CHEMICALS (PRIVATE) LIMITED AND FUTEHALLY CHEMICALS MEHNATKASH UNION - 2013

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FORM – X

Under Sindh Industrial Relations Act 2013,

From 1st July 2013 to 30th June, 2015.

NAME OF PARTIES

1. Employer:

Futehally Chemicals (Private) Limited incorporated in Pakistan, having its registered office and factory at Plot No. D-86, S.I.T.E., Manghopir Road, Karachi, hereinafter referred to as “Company” (which expression wherever the Context so admits shall include and mean its successors and assigns).

AND

2. Collective Bargaining Agent:

Futehally Chemicals Mehnatkash Union bearing Registration No. 4855, hereinafter referred to as “CBA UNION” (which expression wherever the context so admits, shall include and mean its successors, assigns and all permanent workmen employed or to be employed by the Company at Karachi) as per payroll of the Company.

Representing the Employer: Futehally Chemicals

1. Mr. Muhammad Sadiq Bukhari - Senior Advisor to CEO

2. Mr. Ghulam Abid Lakhani - Chief Financial Officer & Company’s Secretary

3. Maj. Mustehsen Ahmed Vahidy - Notified Factory Manager / Manager Administration & Security

Representing the CBA Union / Workers: Mehnatkash Union

1. Mr. Hazrat Amin - President

2. Mr. Sultan Ahmed - Vice President

3. Mr. Nazir Ali - General Secretary

4. Mr. Minhaj ud din - Joint Secretary

5. Mr. Anwar Kamal - Finance Secretary

SHORT RECITAL OF THE CASE:

WHEREAS Futehally Chemicals Mehnatkash Union the CBA Union as a Collective Bargaining Agent of the workmen employed with the Company served upon the Company a Charter of Demands dated July 01, 2013 under section 24 of the Sindh Industrial Relations Act, 2013. A copy of the Charter of Demands is enclosed herewith and marked Annexure “A”.

AND WHEREAS both parties held several meetings which were extended by mutual consent from time to time and as a result of the discussions, bilateral negotiations and collective bargaining on the said Charter of Demands, the CBA Union and the Company have reached the following agreement taking into consideration specifically the inflationary trends and expected rise in Cost of Living in the future in full and final settlement of all the demands and claims of the CBA Union contained in the said Charter of Demands dated 1st July 2013.

TERMS OF THE AGREEMENT:

1. INDUSTRIAL PEACE AND PRODUCTIVITY

It is understood and agreed that in view of the signing of this Agreement:

a. The CBA Union has agreed to continue to maintain industrial peace and harmony so that both the workers and the company devote their full attention and endeavor towards obtaining further and better results through improvement in productivity and maximizing production which is undisputedly accepted as the needed of the hour.

b. The CBA Union and all the workers shall continue to extend full cooperation to the Company for maintaining discipline at all times and undertake not to resort to strike or go slow in any manner whatsoever.

c. In order to achieve the above objective, the CBA Union has given categorical assurance to the Company that it will extend full cooperation for minimizing absenteeism, improvement of punctuality, devoting of full working time and efforts towards improvement of production / overall increase in productivity, maintain discipline and for a continued understanding and goodwill at all levels.

d. The CBA Union has agreed that all the workers will accept the standard work allocation laid down or to be laid down from time to time by the Company, will not loiter during their shifts / working hours and will remain at their places of work producing normally until the end of their shifts. At the end of their shifts they will properly handover the charge of their jobs to their relievers and then they should leave the place of their duty (without any loss of production). Workers abandoning their place of work without reasons or permission by their departmental heads will be subject to disciplinary action.

e. The CBA Union has agreed that during the tenure of this Agreement the Union shall make all efforts to improve productivity, quality, efficiency, discipline, housekeeping, cleanliness, adherence to starting & closing time of work and attendance of workman.

f. The CBA Union office Bearers, either signatories of the agreement or those who by legal process replace them during the validity of this agreement, agree to refrain from using their elected post as an excuse for wandering around the factory premises and not working. They also agree, in their primary capacity as workmen, to request and obtain leave before leaving their places of work and to report back to the person in-charge when they return from the said leave.

2. APPLICATION & ADMISSIBILITY OF THE BENEFITS OF THE AGREEMETN / SETTLEMENT:

It is agreed and understood that:

a. This agreement is confined to and covers only the regular permanent non management staff and workers who are employed by the Company and were on its payroll as on 1st July, 2013 or who have retired due to old age from service after 1st July, 2013 or expired while in service after 1st July, 2013 or may join subsequently but within the period of this agreement remains in force.

b. Except as otherwise provided in any clause, this Agreement shall come into force from 1st July 2013 and shall be binding on both the parties mentioned above for a period of two years from 1st July 2013 to 30th June, 2015.

c. All benefits / facilities and conditions of service existing as on the date of signing of the agreement and not covered or modified in the Agreement shall continue to remain unchanged subject to the terms and conditions of this Agreement.

3. INCREMENTS

Due to rise in cost of living the Company has agreed to allow an increase of 15% w.e.f. 1st July 2013 in existing Basic Salary of all permanent non management staff members and workers in Grade 2a, 2b, 3a, 3b, 4a, 4b, 5a, 5b, 6a, 6b, 7a and 7b. However increase of 16% w.e.f. 1st July 2013 in Basic Salary is allowed for all permanent non management staff members and workers in Grade 8a and 8b.

The above increase is allowed once as a special case without quoting as precedence in future to all permanent non management staff members and workers in their existing grades as mentioned above.

4. ADDITIONAL PROFIT BONUS / RAMADHAN EIDI

It has been mutually agreed between Company and CBA Union that with effect from 1st July 2014 to allow one Gross Salary as additional Profit Bonus / Ramdhan Eidi to all permanent staff members and workers after agreeing on the withdrawal of 4 (four) Optional Holidays and Reduced working hours in the holy month of Ramadhan in all shifts detailed as under:

It has been mutually agreed between Company and CBA Union that the following Optional Holidays earlier agreed through settlements now stands withdrawn with immediate effect:

- 1st January

- New Year

- 15th Shaban

- Shab e Barat

- 21st Ramadhan

- Shahadat Hazrat Ali A.S.

- 20th Safar

- Chehlum Imam Hussain A.S.

And now all the above days will be treated as normal working days.

It has been mutually agreed that the Reduced working hours agreed through earlier settlements now stands withdrawn with effect from Ramadhan 1435 H for all shifts. As such now Ramadhan working hours in all shifts will be same as of the other eleven months.

However shift timings for Ramadhan shall be mutually agreed between CBA Union and the Company for 2 shift operations one month before the next Ramadhan.

The aforesaid additional Profit Bonus / Ramadhan Eidi of one Gross Salary shall be paid to all those permanent staff members and workers who are on Company’s payroll at the time of its declaration during the month of Ramadhan and having completed one year’s continuous service. Those permanent staff members and workers having completed three months continuous service but less than one year will be entitled for the aforesaid additional Profit Bonus / Ramadhan Eidi on pro-rata basis.

Further the aforesaid additional Profit Bonus / Ramadhan Eidi will not form part of wages for payment of Bonus, Provident Fund, Gratuity, calculation of overtime, encashment of leaves etc.

5. GROUP INSURANCE

It has been mutually agreed between Company and CBA Union that with effect from 1st November 2013 the individual sum assured and principal amount of compensation under Group Life Insurance coverage for natural death to all permanent non management staff members and workers is enhanced from Rs. 300,000/- to Rs. 400,000/-, which is inclusive of Group Insurance under Standing Order 10(B).

6. GOOD MANUFACTURING PRACTICES

Both CBA Union and all the workers have expressed their commitment to Good Manufacturing Practices, thereby maintain the equipments and production areas neat and clean, following all the Company procedures to ensure high quality product and discouraging improper clad and careless working habits.

7. GENERAL CONDITIONS

The CBA Union hereby agrees that this Agreement is full and final settlement of all their demands contained in the Charter of Demands dated July 01, 2013. Those demands or disputes not specifically mentioned herein but covered or raised by the said Charter of Demands or in the course of discussions, shall be deemed to have been settled, modified and / or withdrawn in accordance with and / or in consideration of the benefits given in this Agreement. Any demands not specifically mentioned / settled herein have been withdrawn by the CBA Union.

It has been agreed between the CBA Union and the Company that all other terms and conditions of employment and provisions of the 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 the employment and enforcement of the relevant laws.

In consideration of the increase in wages granted to all the permanent non management staff and workers the CBA union under take not to re-agitate demands that have been raised and disposed off by this Settlement or raise any further demands whether having financial or non financial implication on the Company upto 30th June, 2015.

The CBA Union and all the workers agree and accept that above benefits have been given and agreed by the Company keeping in view specifically the inflationary trends and expected rise in Cost of Living in future. Any benefits, increase or allowance that are given during the operative period of this agreement by the Federal or Provincial Government under the Worker’s Cost of Living, the Sindh Worker’s Special Allowance or any other law, rules or notification under any head or name whatsoever, are hereby deemed to have been granted in terms of the provisions of this Settlement and shall be set off accordingly. However if there is no set off clause than the said amount would be withdrawn from this agreement accordingly.

It is mutually agreed and understood that with the development of cordial and mutual confidence amongst the Management and all the workmen concerned the Company will be in a position to attain and maintain an optimum level of productivity and efficiency. This is turn will enable the Company and all its workmen, to contribute effectively and meaningfully towards the Company’s objectives of improving the efficiency and productivity.

It is further agreed by the CBA Union / workers that during the tenure of this agreement, there shall be no strike and work stoppage, slow down, curtailment of production, for any cause whatsoever. The CBA Union undertakes to fully support the Company’s efforts to increase production and efficiency and to fully cooperate with the Company in maintaining strict discipline.

It has also been agreed by the CBA Union that it will make every endeavor towards maximizing production, avoiding waste of working hours in non-productive and un official work and encourage workers towards higher productivity and excellence of discipline and will increase the present production positively.

It is further agreed that CBA Union will fully support the Company’s efforts in enforcing Safety, Security and Hygiene on site. The CBA Union will also extend the fullest cooperation at all stages of the implementation of productivity and efficiency schemes; as well as Company’s effort to implement Quality Management and Environmental Management Systems.

IN WITNESS WHEREOF the parties as aforesaid have signed hereunder at Karachi at this the 2nd day of December, 2013.

*****

Memorandum of Agreement between Futehally Chemicals (Private) Limited and Futehally Chemicals Mehnatkash Union - 2013

Start date: → 2013-07-01
End date: → 2015-06-30
Ratified by: → Other
Ratified on: → 2013-12-02
Name industry: → Manufacturing
Name industry: → Manufacture of chemicals and chemical products
Public/private sector: → In the private sector
Concluded by:
Name company: →  Futehally Chemicals (Private) Limited
Names trade unions: →  Futehally Chemicals Mehnatkash Union

WAGES

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

Wage increase

Wage increase: →  %

Once only extra payment

Once only extra payment due to company performance: → No

Meal vouchers

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