Memorandum of Agreement between GlaxoSmithKline Pakistan Limited and GlaxoSmithKline Pakistan Limited Labour Union Pakistan - 2011

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1st July, 2011 To 30th June, 2013

FORM “X”

MEMORANDUM OF AGREEMENT (Under Clause 2 (xxix) and section 35 of the Industrial Relations Ordinance, 2011)

NAME OF PARTIES

GlaxoSmithKline Pakistan Limited, a Company incorporated in Pakistan with its Registered Office at Sykes Building, Dockyard Road, West Wharf, Karachi, hereinafter called the ‘Company’ (which expression wherever the context so admits shall means and include its successors and assigns).

AND

GlaxoSmithKline Pakistan Limited Labour Union Pakistan, NIRC Registration No. 16/90, a Union registered as an Industry-wise Trade Union having its registered office at Karachi, as a Collective Bargaining Agent for all the fGlaxo workmen employed in the establishments of the company at West Wharf, F/268, Lahore Factory and Sales Offices throughout Pakistan, hereafter called the ‘Union’ (which expression wherever the context so admits shall include and mean its successors, assigns, replacement and all eligible regular workmen employed or to be employed by the company’s establishments at West Wharf, Lahore Factory and Sales Offices throughout Pakistan).

1. Mr. Shahid Mustafa Qureshi Legal, Corporate Affairs, I.R, Admin & Regulatory Affairs

Director/Company Secretary

1. Mr. Muhammad Babar

Chairman

2.Dr. Muzaffar Iqbal

Site Director, WW/Technical Director

2. Mr. Mazhar Jamil,

General Secretary

3. Dr. Amjad Aqeel

Site Director, Lahore Factory

3. Ms. Yasmeen Mazhar

President

4. Mr. Muhammad Hanif

Group Industrial Relations

4. Mr. M. Anwar Sabir

Vice Chairman

5. Mr. Rizwan Ahmed Khokhar

Site Operations Head, WW

5.Mr. Javed Ahmed

Vice Chairman

SHORT RECITAL OF THE CASE

WHEREAS on the expiry of the Agreement dated 7th July, 2009 for Lahore Factory and other establishments located in the Province of Punjab and for establishments of West Wharf Factory, F/268 at Karachi, the union served on the company a Notice dated 1st July, 2011 for the termination of Agreement signed on the above mentioned date under section 2(xxv) of the Industrial Relations Act, 2008 (Annexure-A), a Charter of Demands under cover of their Notice dated 1st July, 2011 (Annexure-B) with a view to reach a new collectively bargained agreement and also for the enhancement in salaries and allowances in view of the rise in the cost of living.

AND WHEREAS pursuant to the said Notices and the Charter of Demands the representatives of the company and the Union held bilateral negotiations with a view to reach to an amicable agreement so that an agreement in accordance with the provisions prescribed under the Industrial Relations Ordinance, 2011 can be entered into and duly executed between the parties. The C.B.A also held a General Body Meeting at Karachi/Lahore Factories and obtained permission from the workers to negotiate the above charter of demands with the management.

AND WHEREAS during the course of discussion and negotiations, the Union pointed out the increase in the cost of living and inflationary trends which factors the company and the Union took into consideration during the process of collective bargaining and negotiations on the demands relating to increase in salary and allowances contained in the said Charter of Demands. As a result of the said bilateral discussions, negotiations and collective bargaining on the said Charter of Demands, the union and the company have concluded the following agreement which includes clauses therein for the enhancement in salaries and various allowances including conveyance, cash family medical, house rent, utilities allowances and other allowances to meet the rise in the cost of living and expected future rise in the cost of living for period covered under this agreement and to further improve the standard of living of the workers. This agreement covers all demands and claims of the Union contained in the said Charter of Demands and other demands and issues brought for negotiations and discussion during the course of collective bargaining of the said Charter of Demands, in full and final agreement thereof;

AND WHEREAS wherever the expression ‘Lahore’ referred to in the agreement it would mean and include the fGlaxo employees of the company’s establishments located in the Province of Punjab.

AND WHEREAS wherever the expression ‘Karachi’ referred to in the agreement it would mean and include the fGlaxo workers of the company’s establishments located in the Province of Sindh either at West Wharf, F/268 or transferred at any other site.

NOW, THEREFORE, THIS AGREEMENT WITNESSTH AS UNDER:

TERMS OF AGREEMENT

1. SALARIES/WAGES

Basic Salary

It is agreed that the monthly Basic Salaries of all permanent workers (fGlaxo) as on 1st July, 2011 and on the payroll of the company as on that date shall be increased by 5% (five percent) of the Basic Salary of those workers as on 30th June, 2011 plus a further flat increase of Rs. 350/- (Rupees three hundred and fifty only).

ILLUSTRATION

Before this agreement
Basic salary as on 30th June, 2011 (say) Rs. 1500.00
10% Annual Increment as on 1st July, 2011 Rs. 150.00
Salary as on 1st July, 2011 Rs. 1650.00
After this agreement
Basic salary as on 30th June, 2011 Rs. 1500.00
5% increase in accordance with this Agreement Rs. 75.00
Flat increase of Rs. 350/- under this Agreement Rs. 350.00
Total Rs. 1925.00
10% annual increment on 1st July, 2011 Rs. 193.00
Salary as on 1st July, 2011 after annual}

Increment and increase under exiting agreement}

Rs. 2,118.00

2. HOUSE RENT ALLOWANCE

It is agreed that House Rent Allowance for all fGlaxo permanent workers as on 1st July, 2011 and on the payroll of the company as on that dated at Karachi and Lahore shall be paid as under:

42% of the Basic Salary plus Rs. 1715/- (Rupees One thousand seven hundred and fifteen only).

All others terms and conditions governing the House Rent Allowance shall remain unchanged.

3. CONVEYANCE/TRANSPORT ALLOWANCE

i) It is agreed that the Transport Allowance of all male workers at Karachi and Lahore shall be increased from the existing Rs. 1800/- per month to Rs. 1990/- (Rupees one thousand nine hundred and ninety) per month.

ii) It is also agreed that a sum of Rs. 1560/- per month presently being paid to the female workers at Karachi travelling in company’s vans will be increased to Rs. 1750/- (Rupees one thousand seven hundred and fifty only) per month.

iii) It is also agreed that the compensation for the female workers in Karachi for the expenses incurred by them in reaching upto pickup point for availing the company’s hired busses shall be increased from Rs. 1615/- to Rs. 1800/- (Rupees one thousand eight hundred) per month.

All the above revision in conveyance allowance shall be applicable for all permanent workers of fGlaxo who were on the payroll of the company as on 1st July, 2011.

4. MEDICAL FACILITIES

a) It is agreed that the Cash Medical Allowance for workers’ families shall be increased from Rs. 1715/- to Rs. 1885/- per month for Karachi and Lahore w.e.f. 1st July, 2011.

b) It is also agreed to increase the amount being reimbursement by the company to workers for purchase of spectacles from Rs. 550/- to Rs. 575/- (Rupees five hundred and seventy five only) once in a year w.e.f. the date of signing of this agreement.

c) It is agreed that Hepatitis is included in the treatment of chronic diseases.

All other terms and conditions governing medical facilities shall remain unchanged.

5. UTILITY ALLOWANCE

It is agreed to increase the utilities allowance by Rs. 50/- w.e.f. 1st July, 2011 to all the fGlaxo employees who were on the payroll of the company on that date at West Wharf Factory, Lahore Factory and at Sales office from the existing Rs. 400/- to Rs. Rs. 450/- per month.

6. MISCELLANEOUS ALLOWANCE

a) Shift Allowance

It is agreed to increase the rate of Shift Allowance for workers including Chowkidars (fGlaxo) employed at West Wharf, Lahore Factories and Sales Offices w.e.f. the date of signing of this agreement, as under:

i) ‘B’ SHIFT

From Rs. 40/- to Rs. 45/- per shift worked.

ii) ‘C’ SHIFT

From Rs. 145/- to Rs. 175/- per night shift worked.

All other terms and conditions governing this allowance shall remain unchanged.

b) Inconvenience Allowance

i) It is agreed to increase the existing rate of Inconvenience Allowance at Karachi/Lahore Factory from Rs. 16/- to Rs. 18/- per day worked from the date of signing of this agreement.

ii) It is agreed to raise the Inconvenience Allowance from Rs. 30/- to Rs. 35/- for Saturday, and Rs. 120/- for Sunday on account of food and tea (in case these are not provided by the company) from the date of signing of this agreement.

All other terms and conditions governing this allowance shall remain unchanged.

c) Meal Allowance

i) It is agreed to increase the Meal Allowance from Rs. 65/- to Rs. 70/- (Rupees seventy only) per meal for those works who are unable to avail the meal facility due to exigencies of work. This will be effective from date of signing of this agreement.

ii) It is also agreed to increase the Meal Allowance from Rs. 65/- to Rs. 70/- (Rupees seventy only) for Van Sircars and Van Drivers who go out Karachi, Lahore, Multan cities for delivery and return on the same day after completing delivery for such days only. This will be effective from the date of signing of this agreement.

All other terms and conditions governing this allowance shall remain unchanged.

d) Sterile Area

At Karachi and Lahore factories Sterile Area Allowance will be increased from Rs. 40/- to Rs. 45/- and will also be paid to Checkers and Inspectors from the date of signing of this agreement.

e) Over Night Stay Allowance

Overnight stay allowance for workers will be increased from Rs. 600/- to Rs. 650/- per night.

f) Heavy Duty Allowance

It is agreed to revise the heavy-duty allowance at Sales Offices from Rs. 50/- to Rs. 55/- per day worked as and when required.

g) Filling & Blowing Area Allowance

It is agreed to pay Rs. 45/- per day worked to the workers of Ceporex Department.

h) Outdoor conveyance charges

It is agreed to revise the conveyance charges from Rs. 6/- to Rs. 8/- per kilometer to workers who are deputed on outside company’s assignment.

The above allowances will be applicable from the date of signing of this agreement.

7. FUNDS

a) Compassionate Fund

b) Workers Family Medical Assistance Fund

It is agreed that the total grant under the aforesaid Funds remain unchanged for Karachi, Lahore factories and Sales Offices.

8. MOTORCYCLE/HOUSE HOLD APPLIANCE LOAN

It is agreed that the existing amount of above Funds will remains the same i.e. Rs. 2,300,000/- (Rupees twenty-three hundred thousand only). Household Appliances Loan, Motorcycle Loan, House Maintenance Loan, will now be available on completion of previous loans. The loan can be granted to a permanent worker having at least 4 years’ services to his credit or have four years’ remaining service to his retirement. It is also agreed that the loan amount will be recovered in 36 equal monthly instalments instead of 48.

9. FUNERAL EXPENSES

Subsidy towards funeral expenses is increased for Lahore/Karachi and upcountry funerals as under from the date of signing of this agreement.

a) From Rs. 23,000/-to Rs. 28,000/-(for Karachi/Lahore)

b) From Rs. 28,000/-to Rs. 33,000/-(for upcountry)

10. RAMZAN MEAL ALLOWANCE FOR KARACHI AND LAHORE FACTORY ONLY

It is agreed that the Ramzan Meal Allowance paid to the workers of Karachi and Lahore Factories (‘A’ shift only) during the Holy month of ‘Ramzan’ when the canteen facilities are completely withdrawn shall be increased to Rs. 650/- to Rs. 700/- per month w.e.f. 1st July, 2011. All other terms and conditions will remain unchanged.

11. RAMZAN ALLOWANCE

It is agreed that Ramzan Allowance being paid to the Security Staff during the Holy month of Ramzan shall continue to be paid @ Rs. 700/- w.e.f. the date of signing of this agreement.

12. LUNCH ALLOWANCE

It is agreed that the Lunch Allowance for the workers of Lahore Sale Office, Multan Sale Office and the Sales Counters where canteen facilities are not provided shall be increased form Rs. 750/- to Rs. 800/- per month from the date of signing of this agreement.

All other terms and conditions governing this allowance shall remain unchanged.

13. GOOD ATTENDANCE BONUS

It is agreed that the existing good attendance bonus is revised and increased by Rs. 10/- in all the slabs effective from the date of signing of this agreement.

14. LONG SERVICE AWARD

It is agreed that the amount of the Long Service Award is revised and paid as following w.e.f. 1st July, 2011:

- On completion of continuous service of 10 years.....Rs. 8000/-

- On completion of continuous service of 15 years.....Rs. 10000/-

- On completion of continuous service of 20 years.....Rs. 12000/-

- On completion of continuous service of 25 years.....Rs. 16000/-

- On completion of continuous service of 30 years.....Rs. 19000/-

- On completion of continuous service of 35 years.....Rs. 25000/-

- On attaining the age of superannuation award Rs. 25,000/- + shield subject to the conditions as explained below in para-A.

- A shield will continue to be presented to the retirees on reaching the age of superannuation. The company for the retirees will also arrange a tea party.

A) It is further agreed that those workers who are likely to be retired either voluntarily or on attaining the age of superannuation and have completed i.e. less than 35 years of service but more than 30 years, will receive retirement award equal to 35 years’ Long Service Award. Similarly, those employees who have completed less than 30 years of service but more than 20 years of service, will get retirement award equal to 30 years of Long Service Award. Likewise, those employees who have completed less than 20 years of service will get retirement award equivalent to 20 years of service award.

15. GRADES

It is agreed that the starting basic salary of grades effective from 1st July, 2011 for the workers of fGlaxo (Lahore/Karachi) will be as follows:

Old Grades New Grades

Starting Basic Salaries (Rs.)

G11 12600
00 G10 11100
A1 G09 9800
A G08 8600
B1 G07 7500
B G06 6500
C1 G05 5600
C G04 4800
D1 G03 4100
D G02 3500
E G01 3000

The job description of the above grades will remain unchanged unless revised by the management.

16. MARRIAGE GIFT

It is agreed to revise the Marriage Gift from Rs. 5000/- to Rs. 6000/- for those workers marrying first time. This payment will be made on submission of Nikahnama. The revision is effective from 1st July, 2011.

17. UPGRADATION OF WORKERS

Without forming precedence and as one time exercise, it is agreed that those workers who have not been given promotion for the last ten years or more, may be considered for promotion to the next grade w.e.f. 1st July, 2011 subject to clean record and conduct.

18. EXISTING TERMS AND CONDITIONS

All facilities and conditions of service existing as on the date of signing of this agreement and also those of previous settlements/agreements/award not altered or modified by this agreement will continue to remain unchanged.

19. FINALITY

The C.B.A and the company have agreed to maintain industrial peace, cooperate with the management in improving productivity and abide by this agreement under the law for the operative period of this agreement and further agreed that in consideration of the benefits and the increases given as per this agreement, the Union would not raise or pursue directly or indirectly any demand covered by this agreement or the said Charter of Demands and/or any other fresh demand or demands in any manner whatsoever involving financial implications or otherwise upon the company during the period this agreement is to remain in force.

20. SCOPE

It is agreed that the benefits provided under this agreement will be applicable to all permanent workers employed by the company and who are on the payroll of the company (fGlaxo) on the date of signing of this agreement and all future permanent workers of the company. Further, those permanent workers who have retired/died on or after 1st July, 2011 will be entitled to the benefits of this agreement except those benefits which apply from the date of signing of this agreement.

21. DURATION OF THE AGREEMENT

It is agreed that this agreement will come into force w.e.f. 1st July, 2011 and remain binding upon the parties for a period of two years i.e. up to 30th June, 2013.

IN WITNESSES THEREOF THE PARTIES HERETO SET THEIR HANDS THIS THIRTIETH DAY OF SEPTEMBER, TWO THOUSAND AND ELEVEN.

*****

Memorandum of Agreement between GlaxoSmithKline Pakistan Limited and GlaxoSmithKline Pakistan Limited Labour Union Pakistan - 2011

Start date: → 2011-07-01
End date: → 2013-06-30
Ratified by: → Other
Ratified on: → 2011-07-01
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: → 

WAGES

Wages determined by means of pay scales: → No
Provision that minimum wages set by the government have to be respected: → No
Agreed lowest wage per: → Months
Lowest wage: → PKR 3000.0
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → 5.0 %
Wage increase starts: → 2011-07

Once only extra payment

Once only extra payment: → PKR 700.0 %
Once only extra payment due to company performance: → No

Premium for evening or night work

Premium for evening or night work: → PKR 19500.0 per month
Premium for night work only: → Yes

Premium for Sunday work

Premium for Sunday work: → PKR 120.0 per Sunday

Allowance for commuting work

Allowance for commuting work: → PKR 1990.0 per month

Allowance for seniority

Allowance for seniority: → PKR 8000.0 per month
Allowance for seniority after: → 10 years of service

Meal vouchers

Meal allowances provided: → Yes
→ 40.0 per meal
Free legal assistance: → No
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