MEMORANDUM OF AGREEMENT BETWEEN GLAXOSMITHKLINE PAKISTAN LIMITED AND GLAXOSMITHKLINE PAKISTAN EMPLOYEES’ UNION - 2013

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FORM ‘X’

(Under Clause 2 (xxix) and section 35 of the Industrial Relations Act, 2012)

NAME OF PARTIES

a) GlaxoSmithKline Pakistan Limited having its Head Office at Sykes Building, 35 Dockyard Road, West Wharf, Karachi, hereinafter referred to as the ‘Company’ (which expression wherever the context so admits shall mean and include its successors and assigns).

AND

b) GlaxoSmithKline Pakistan Employees’ Union having its office at Plot No. F/268, S.I.T.E, Karachi hereinafter referred to as the C.B.A (fWPL workers) of fWPL CBU (which expression wherever the context so admits shall mean and include its successors, assigns or the next C.B.A and all workers employed or to be employed by the Company).

REPRESENTING EMPLOYERS

- Mr. Shahid M. Qureshi

- Ms. Pouruchisty Sidhwa

- Mr. Rizwan Ahmed Khokhar

- Mr. Hammad Khalid

- Mr. Muhammad Ali

- Mr. Rashid Ali Khan

- Mr. Khalid Mehmood Shaikh

- Ms. Shumaila Amir

REPRESENTING WORKERS

- Mr. Amir Jamal

- Ms. Ghazala Shakir

- Mr. Muhammad Saeed

- Ms. Uzma Siddiqui

- Ms. Rubina Tanzeem

- Mr. Nasrullah Baig

- Ms. Seema Naeem

- Mr. Muhammad Azharul Haq

- Ms. Ayesha Khatoon

- Mr. Ziauddin Shaikh

WHEREAS the C.B.A submitted a notice of termination under clause 29 of the agreement dated 14-02-2011 vide their letter dated 27-12-2012 and also requested for waiving off the two months’ notice period (photocopy of the said letter is annexed hereto and marked ‘A’).

AND WHEREAS the company vide letter dated 28-12-2012 (photocopy of which is annexed hereto and marked ‘B’) considered the request of the C.B.A and waived off two months notice period as requested. The C.B.A and the management under section 35 of the Industrial Relations Act, 2012 exchanged their charter of demands both dated 01 Jan 2013 (photocopies of which are annexed hereto and marked ‘C’ and ‘D’).

AND WHEREAS the bilateral negotiations of the representatives of C.B.A and company commenced on 09-01-2013 and subsequently several meetings held with a view to reaching an amicable collectively bargained agreement. As a result of discussions, bilateral negotiations and collective bargaining, parties have reached the following agreement taking into consideration the cost of living allowances being paid by the company in accordance with provisions of the Employees’ Cost of Living (Relief) Act, 1973 as amended up to date and to meet the inflationary trends and present and future increases in the cost of living and in FULL AND FINAL settlement of all the demands contained in the said charter of demands and all other demands raised by the C.B.A.

NOW, THEREFORE, this agreement witnesseth as under:

TERMS OF AGREEMENT

The increases in salary & benefits as agreed under this agreement shall be applicable to all fWPL permanent workers only, of fWPL CBU who were on company’s payroll as on or after 1 Jan, 2013.

1. BASIC SALARY

It is agreed that all workers who were on the payroll of the company as on January 1, 2013 or after will be granted a flat increase of Rs. 950/- per month in their basic salary w.e.f. January 1, 2013 after the annual increment for the year 2013 and will also be applicable to those who have been appointed after the said date.

2. HOUSE RENT ALLOWANCE

a. It is agreed that effective January 1, 2013 House Rent Allowance for all workers will be increased as follows:

GRADES APPOINTED UPTO 31-12-2005 APPOINTED ON OR AFTER 1-1-2006
EXISTING (RS.)

INCREASE (RS.)

REVISED (RS.)

EXISTING (RS.)

INCREASE (RS.)

REVISED (RS.)

I 5,835/- 900/- 6,735/- 3,175/- 1,750/- 4,925/-
II 5,835/- 900/- 6,735/- 3,475/- 1,750/- 5,225/-
III 5,860/- 900/- 6,760/- 3,775/- 1,750/- 5,225/-
IV 5,890/- 900/- 6,790/- 4,075/- 1,750/- 5,825/-
V 5,890/- 900/- 6,790/- 4,475/- 1,750/- 6,225/-

b.It is further agreed that due to enhancement of Basic Salary the exceeding amount of COLA particular and Special Allowance as per laws will be merged in the above House Rent Allowance for the workers appointed on or after 1 January, 2006.

3. UTLITIES/DEARNESS ALLOWANCE

It is agreed that the Utilities/Dearness Allowance will be increased by Rs. 850/- for all workers w.e.f. January 1, 2013 appointed.

i.Up to 31-12-2005 revising from Rs. 4,915/- to Rs. 5,765/- and

ii.On or after 1-1-2006, as applicable

4. TRANSPORT/CONVEYANCE ALLOWANCE

a.It is agreed that the existing monthly Transport/Conveyance Allowance will be increased by Rs. 550/- for all workers w.e.f. 1 January, 2013.

b.It is agreed that for calculating overtime, full respective conveyance allowance, as applicable, will be taken into account for all workers as usual.

All other terms and conditions as already agreed under the previous agreements/ settlement/ award will remain unchanged.

5. LEAVE FARE ASSISTANCE

It is agreed that Leave Fare Assistance to workers will be increased as follows w.e.f. 1 January, 2013.

a. By Rs. 1,000/- per annum from the exiting Rs. 8,404/- to Rs. 9,404/- for workers appointed up to 31-12-2005.

b. By Rs. 1,300/- per annum from the existing Rs. 5,734/- to Rs. 7,034/- for workers appointed on or after 1-1-2006.

All other terms and conditions pertaining to the payment of Leave Fare Assistance will remain unchanged as already settled under previous agreements/ settlements/award.

6. ALLOWANCE

It is agreed that the following allowances to workers for relevant designations/ departments wherever and whichever applicable, will be revised w.e.f. 1 January, 2013 as under:

a. Checker Allowance to female and male workers will be increased by Rs. 50/- and the revised allowance will be from Rs. 505/- to Rs. 555/- per month and from Rs. 200/- to Rs. 250/- per month respectively.

b. Manufacturing Process Allowance payable to Production Workmen and Production Workmen/Operators will be increased by Rs. 30/- and the revised allowance will be from Rs. 430/- to Rs. 460/- per month.

c. Special Allowance to workers of Injectable Department will be increased by Rs. 30/- and the revised allowance will be from Rs. 415/- to Rs. 445/- per month.

d. Special Allowance to workers exclusively working on Ophthalmic Ointment Filling Machine & Powder Filling (Cicatrin) will be increased by Rs. 30/- and the revised allowance will be from Rs. 415/- to Rs. 445/- per month.

e.Special Allowance to General Workmen of Bottle Blowing will be increased by Rs. 30/- and the revised allowance will be from Rs. 200/- to Rs. 230/- per month.

f. It is agreed that Special Allowance (Overprinting) payable to Over Printers will be increased by Rs. 25/- and the revised allowance will be from Rs. 290/- to Rs. 315/- per month.

g. It is agreed that Machine Operating Allowance payable to Machine Operators, operating packaging or production machines will be increased by Rs. 30/- and the revised allowance will be from Rs. 260/- to Rs. 290/- per month.

7. SERVICE AWARDS

a. It is agreed that w.e.f. signing of this agreement, Service Award will be increased as follows:

S. No. Length of Service

Existing (Rs.)

Increase (Rs.)

Revised (Rs.)

i 5 years 3,000/- 2,000/- 5,000/-
ii 10 years 7,400/- 1,600/- 9,000/-
iii 15 years 10,500/- 1,000/- 11,500/-
iv 20 years 11,500/- 1,500/- 13,000/-
v 25 years 13,000/- 3,000/- 16,000/-
vi 30 years 18,000/- 1,500/- 19,500/-
vii 35 years 21,000/- 1,000/- 22,000/-
viii 40 years 24,000/- 1,000/- 25,000/-

All other terms and conditions pertaining to service awards will remain unchanged as per previous agreements/settlement/award.

8. CANTEEN

It is agreed that workers contribution to canteen (to be deducted from monthly salary) will be increased by Rs. 100/- and the revised amount will be Rs. 300/- per month w.e.f. 1 January, 2013 or as applicable.

All other terms and conditions as already agreed under previous agreement/ settlement/ award will remain unchanged.

9. LUNCH ALLOWANCE – SALES OFFICES

It is agreed that Lunch Allowance of Sales offices workers (out stations) will be increased by Rs. 130/- w.e.f. 01 January, 2013 and the amount is revised from Rs. 1,190/- to Rs. 1,320/- per month.

10. MARRIAGE GIFT

a. On Leaving the Company

It is agreed that the amount of Marriage Gift is increased by Rs. 2,000/- and it is now revised from Rs. 8,000/- to Rs. 10,000/- which will be paid only to those workers who leave the company on their marriage.

b. Continuing the Service

It is agreed that the existing marriage gift given to workers on their first marriage will be increased by Rs. 3,000/- and is revised from Rs. 5,000/- to Rs. 8,000/-

11. SCOOTER/MOTORCYCLE/TV/REFRIGERATOR/MULTI-PURPOSE

a. It is agreed henceforth the company will increase the existing total loan/rolling amount and the individual loan limits as follows:

GENDER

EXISTING (RS.)

INCREASE (RS.)

REVISED (RS.)

MIXIMUM LIMIT (RS.)
Male 19,68,000/- 1,50,000/- 21,18,000/- 80,000/-
Female 18,20,000/- 1,00,000/- 19,20,000/- 60,000/-
Total 37,88,000/- 2,50,000/- 40,38,000/- -

b. It is agreed that upon completion of all installments or full lump sum payment of previous loan, the worker will be eligible for another loan through normal Ballot procedure OR as allowed the management as a special case.

c. It is agreed that Workers for following categories will eligible for participation in Loan Ballot.

i. Have completed 3 years continuous service in the company from the date of their joining and;

ii. Are left with at least 3 years in their retirement on superannuation.

All other terms and conditions as already agreed under the previous agreement/ settlements/ award will remain unchanged.

12. WELFARE LOAN

It is agreed that the company will increased existing Welfare loan amount by Rs. 50,000/- and is revised total Welfare Loan amount from Rs. 400,000/- to Rs. 450,000/- from the date of signing of this agreement.

All other terms and conditions as already agreed under the previous agreements/ settlement/ award will remain unchanged.

13. DISTANCE ALLOWANCE

Distance Allowance will be revised w.e.f. 1 January, 2013 as follows:

DISTANCE EXISTING (RS.) INCREASED (RS.) REVISED (RS.)
Up to 3 KM 220/- p.m. 30/- p.m. 250/- p.m.
More than 3 KM & up to 5 KM 280/- p.m. 40/- p.m. 320/- p.m.
More than 5 KM 340/- p.m. 50/- p.m. 390/- p.m.

14. PERFORMANCE OF HAJJ

It is agreed that number of workers selected for Hajj through open balloting will remain unchanged and the company will bear Hajj expenses of 3 workers per year under the Government Regular Hajj Scheme.

All other terms and conditions as already agreed under previous settlements/ agreements/ award will remain unchanged.

15. SUBSTITUTE HOLIDAY

It is agreed that henceforth in case of gazette/public holiday falling on Saturday or Sunday following or preceding working day to be observed as holiday in lieu thereof, instead of a leave is added to the leave account of those remain present on duty on that day and un-availed substitute holiday is en-cashed next year with January salary.

16. ENCASHMENT OF CASUAL & SICH LEAVE WITH FINAL DUES

It is agreed that henceforth balance Casual and Sick Leave will be en-cashed with the final dues of outgoing workers.

17. MEDICAL BENEFITS

a. It is agreed that w.e.f. 1 January, 2013 the annual O.P.D medical entitlement of permanent workers appointed up to 31-12-2005 will be increased as under:

EXISTING P.A (RS.)

INCREASE (RS.)

REVISED P.A (RS.)

Married 11,600/- 1,400/- 13,000/-
Un-Married 8,200/- 1,200/- 9,400/-

b. It is further agreed that w.e.f. 1 January, 2013 the annual O.P.D medical entitlement of permanent workers appointed on or after 01 January, 2006 will be increased as under:

EXISTING P.A (RS.)

INCREASE (RS.)

REVISED P.A (RS.)

Married 7,600/- 1,400/- 9,000/-
Un-Married 5,700/- 1,200/- 6,900/-

c. It is agreed that henceforth the company will also bear expenses of Caesarean operation of female workers.

d. It is further agreed that henceforth company will bear/reimburse expense of Root Canal Treatment with Porcelain Crowing to all workers for self (Male/Female) and dependents of male workers. Gold/Silver or any metal filling will not be allowed.

e. It is agreed that henceforth in respect of coverage under company’s medical scheme the age limit of children of the male workers has been enhanced as follows:

i. Sons up to the age of 23 years.

ii. Un-Married daughters up to the age of 28 years and in case of marriage will be excluded whichever will come first.

f. It is agreed that henceforth in case of transplant/Implant of any organ of male/female workers, the one-time expenses will be borne by the company on management’s discretion, on case to case basis, as exceptional requirement.

g. It is agreed that henceforth the husband and children of female workers who cannot afford expenses on treatment of chronic diseases such as Hepatitis, Bypass/Open Heart Surgery, Dialysis etc. will be allowed treatment on company’s account as a special case upon prior approval of the company on sole management’s discretion.

h. It is agreed that the existing amount for purchase of eye-sight optical of workers of their dependents will be increased by Rs. 450/- making a total from Rs. 350/- to Rs. 800/- per annum.

c. It is agreed that henceforth the company will also bear expenses of Caesarean operation of female workers.

d. It is further agreed that henceforth company will bear/reimburse expense of Root Canal Treatment with Porcelain Crowing to all workers for self (Male/Female) and dependents of male workers. Gold/Silver or any metal filling will not be allowed.

e. It is agreed that henceforth in respect of coverage under company’s medical scheme the age limit of children of the male workers has been enhanced as follows:

i. Sons up to the age of 23 years.

ii. Un-Married daughters up to the age of 28 years and in case of marriage will be excluded whichever will come first.

f. It is agreed that henceforth in case of transplant/Implant of any organ of male/female workers, the one-time expenses will be borne by the company on management’s discretion, on case to case basis, as exceptional requirement.

g. It is agreed that henceforth the husband and children of female workers who cannot afford expenses on treatment of chronic diseases such as Hepatitis, Bypass/Open Heart Surgery, Dialysis etc. will be allowed treatment on company’s account as a special case upon prior approval of the company on sole management’s discretion.

h. It is agreed that the existing amount for purchase of eye-sight optical of workers of their dependents will be increased by Rs. 450/- making a total from Rs. 350/- to Rs. 800/- per annum.

i. PANEL HOSPITAL

i. It is agreed that workers will be entitled for Open Heart/Bypass Surgery also at Agha Khan Hospital and Tabba Heart Hospital, for self only, on company’s expense on management’s sole discretion.

ii. It is further agreed that workers and dependents of male workers also be entitled for treatment at East Side Hospital, Main Korangi Road, Sector 23, Korangi, Karachi which is now on company’s panel.

All other terms and conditions governing this scheme will remain unchanged as per previous agreements/ settlements/ award.

18. GRATUITY

It is agreed that management will give due consideration to revoke the existing condition of maximum limit of 30 months basic salary on completion of 30 years service or more and after it to the extent of actual years of service i.e. beyond 30 months, subject to approval from all competent authorities and effectiveness.

All other terms and conditions governing to Gratuity scheme will remain unchanged as per previous agreements/settlement/award.

19. BONUS

a. It is agreed that on the close of company’s financial years 2013 & 2014 (January – December) the permanent workers having completed 12 months continuous service in the respective financial year will be paid from the profits of the company, bonus equivalent to seven months’ average basic salary drawn in 2013 and 2014 including statutory cost of living allowances except set off allowed under previous agreements/ settlements/award and excluding of statutory cost of living allowances set off/has been merged in the House Rent Allowance for the workers appointed on or after 01 January 2006 as agreed under clause 2 (b) of this agreement.

b. All bonuses (except 10-C) will be paid on prorate basis to workmen having less than 12 months service in the respective financial year.

c. The said bonus will be inclusive of one month’s profit bonus payable under Standing Order 10-C of the Industrial & Commercial Employment (Standing Orders) Ordinance, 1968 and that the workmen would receive said seven months profit bonus in full satisfaction of the company’s liability to pay bonus payable under the said Standing Order Ordinance, 1968.

d. It is agreed that all Muslim permanent workers with more than six months’ service will be given an advance equivalent to 2 months’ basic salary including cost of living allowance along with the salary of the month immediately before the month of Ramzan. This advance would be adjusted from the said seven months’ profit bonus which the company, as agreed to above, would pay along with March salary each year following the close of company’s financial year so that those workers who have already received the said 2 months advance before the month of Ramzan would be paid the said bonus adjustment of the said advance for the financial year 2013 & 2014.

20. GOOD ATTENDANCE BONUS

It is agreed that effective 01 January, 2013 the monthly Good Attendance Bonus will be increased by Rs. 50/- as follows:

a. Full attendance without late in a calendar month from Rs. 350/- to Rs. 400/-.

b. On availing half day casual/sick leave and/or one late in a calendar month from Rs. 250/- to Rs. 300/-.

21. LUNCH ALLOWANCE

a. It is agreed that existing Lunch Allowance of Rs. 60/- per day being paid to those workers (including drivers) at Karachi who cannot return from local supply by 1.00 p.m. to take lunch will now be paid @ Rs. 65/- per day.

b. It is agreed that existing Lunch allowance of Rs. 40/- per day being paid to drivers (Admin) who cannot return from outdoor duty by 1.00 p.m. to take lunch will now be paid @ Rs. 43/- per day.

22. RETIREMENT GIFT

It is agreed that the existing Retirement Gift of Rs. 8,000/- given to workers on retirement on superannuation will be increased by Rs. 2,000/- and the revised amount will be Rs. 10,000/- with retirement shield.

23. RETIREMENT AGE

It is agreed that w.e.f. 20 December, 2013 Retirement Age of female workers will be enhanced from 58 years to 60 years becoming equivalent to male workers.

24. FUNERAL EXPENSES

It is agreed to increase the existing Funeral Expenses of Rs. 21,000/- by Rs. 4,000/- and the revised amount will be Rs. 25,000/-. This will be paid to the parents/next of kin/ legal heirs of deceased workers who dies during the course of his/her employment with the company.

25. OTHER BENEFITS

a. Meal Allowance paid to workers doing overtime for 3 hours or more in continuation of his/her normal daily working hours will be increased by Rs. 17/- and the revised allowance will be from Rs. 33/- to Rs. 50/- per day.

b. It is further agreed that workers doing overtime continuously for 3 hours of more on holidays will be paid meal allowance of Rs. 50/- per day from the existing Rs. 33/- per day and if canteen facilities are made available to them, Rs. 30/- per day from the existing Rs. 27/- per day will be deducted from their above meal allowance. This will be effective from 1-1-2013.

c. Conveyance Allowance paid to workers who are required to do overtime work beyond normal working hours will be increased by Rs. 9/- and the revised allowance will be from Rs. 31/- to Rs. 40/- per day (if transport is not provided by the company) w.e.f. 1 January, 2013. This benefits is available only to those workers who avail company’s transport.

d. Conveyance Allowance paid to workers who are required to do overtime on other than normal working days i.e. Saturdays or any other holidays will be increased by Rs. 10/- and the revised allowance will be Rs. 70/- per day (if transport is not provided by the company) w.e.f. 1 January, 2013.

e. Night shift allowance will be increased from Rs. 160/- to Rs. 180/- per night shift worked w.e.f. 1 January, 2013.

f. Eid-e-Milad-un-Nabi

i. The amount for celebrating Eid-e-Milad-un-Nabi will henceforth be increased from Rs. 120,000/- to Rs. 140,000/-

ii. It is agreed that production operations in Pharma Block will be stopped at 2:30 p.m. to attend Mehfil-e-Milat.

26. RAMZAN FAIR PRICE SHOP

It is agreed that the rolling amount of Fair Price Shop will be increased Rs. 10,000/- and the revised amount will be Rs. 180,000/- effective from the month of Ramzan falling in the year 2014.

27. EDUCATION AWARD

It is agreed that the existing Education Award of Rs. 2,500/- given to workers on passing graduation or Master degree examination from any Government University will be increased by Rs. 500/- and the revised Education Award will henceforth be Rs. 3,000/-

28. CHILDREN EDUCATION AWARD

It is agreed that effective signing of this agreement the company will increase No. of awards and an amount of Children Education Award for workers’ children, on merit, every year on passing examination of the following levels from the recognized School/Board/ University/Institution as under:

EDUCATIONAL LEVEL NO. OF AWARDS EXISTING (RS.) INCREASED (RS.) REVISED (RS.)
Lower Secondary School (Class 6th to 8th) 15 1,500/- 500/- 2,000/-

Secondary School (Class 9th & 10th)

15 2,000/- 500/- 2,500/-
Intermediate, Equivalent Diploma & Graduation

(Class 11th to 14th)

10 2,500/- 500/- 3,000/-

All other terms and conditions as already agreed under the previous agreement will remain unchanged.

29. APPLICABLITY

This agreement shall be applicable to all permanent fWPL workers of fWPL CBU working at F/268 S.I.T.E, West Wharf, Karachi and all Sales Offices located at Karachi, Multan, Lahore, Islamabad, Peshawar, and/or workers transferred to any other site.

30. DURATION

It is agreed that this agreement will remain in force and be binding on the parties for a period of two years from January 1, 2013 to December 31, 2014 and will continue to be binding on the parties after the expiry of the aforesaid period until notice is given as per law and until new concluded.

31. FINALITY

a. It is agreed that this agreement is in full and final settlement of all the demands contained in respective Charter of Demands submitted by both the parties. The demands not specifically mentioned in this agreement but contained in the respective charters of demands will be deemed not to have been accepted.

b. It is agreed that during the above period the C.B.A will not submit and/or raise any further demand/demands covered by this agreement and/or demands having any direct or indirect financial/non-financial implications.

c. It is agreed that all the existing terms and conditions of service regulated through earlier agreements/settlements/award for all workers will continue to be in force except where modified by this agreement.

d. The C.B.A will support the management in letter and spirit to curtail absenteeism and also ensure discipline at work place & punctuality by the workers at the start of work in day/night shifts till closing hours and beyond as well as during break times.

e. The C.B.A will ensure that there will be industrial peace, harmony and they will not resort to any strike. There will also be no reduction in production through slow down or any other reason. The company expects that the workers, during the period of operation and thereafter of this agreement will ensure increase in production.

In witness whereof the parties as aforesaid have signed hereunder at

Karachi this the 24th June, 2014

*****

Memorandum of Agreement between Glaxosmithkline Pakistan Limited and Glaxosmithkline Pakistan Employees’ Union - 2013

Start date: → 2013-01-01
End date: → 2014-12-31
Ratified by: → Other
Ratified on: → 2014-06-24
Name industry: → Manufacturing
Name industry: → Manufacture of basic pharmaceutical products and pharmaceutical preparations
Public/private sector: → In the private sector
Concluded by:
Name company: →  Glaxosmithkline Pakistan Limited
Names trade unions: → 

TRAINING

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

WORK AND FAMILY ARRANGEMENTS

Job security after maternity leave: → 
Prohibition of discrimination related to maternity: → 
Prohibition to oblige pregnant or breastfeeding workers to perform dangerous or unhealthy work: → 
Workplace risk assessment on the safety and health of pregnant or nursing women: → 
Availability of alternatives to dangerous or unhealthy work for pregnant or breastfeeding workers: → 
Time off for prenatal medical examinations: → 
Prohibition of screening for pregnancy before regularising non-standard workers: → 
Prohibition of screening for pregnancy before promotion: → 
Facilities for nursing mothers: → No
Employer-provided childcare facilities: → No
Employer-subsidized childcare facilities: → No
Monetary tuition/subsidy for children's education: → Yes

WAGES

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

Wage increase

Wage increase: → PKR 950.0
Wage increase starts: → 2013-01

Once only extra payment

Once only extra payment due to company performance: → Yes

Extra payment for annual leave

Extra payment for annual leave: → PKR 7034.0

Allowance for commuting work

Allowance for commuting work: → PKR 550.0 per month

Allowance for seniority

Allowance for seniority: → PKR 5000.0 per month
Allowance for seniority after: → 5 years of service

Meal vouchers

Meal allowances provided: → Yes
→ 1320.0 per meal
Free legal assistance: → No
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