MEMORANDUM OF AGREEMENT BETWEEN PAKISTAN CABLES LIMITED AND PAKISTAN CABLES EMPLOYEES UNION - 2014

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January 01, 2014 to December 31, 2015

NAME OF PARTIES:

This MEMORANDUM OF AGREEMENT under the applicable law is entered into on this 29th day of June, 2015 between PAKISTAN CABLES LIMITED, a Company in Pakistan under the Companies Act 1913, and having its registered office at B/21, Pakistan Cables Road, Sindh Industrial Trading Estate Karachi and establishments in more than one province; hereinafter referred to as “The Company” (Which expression wherever the context so admits shall include and mean its successors and assigns).

AND

PAKISTAN CABLES EMPLOYEES UNION (REGN. NO. 278) the Collective Bargaining Agent for the Workers employed by the Company at its establishment B/21, Pakistan Cables Road, S.I.T.E., Karachi, hereinafter referred to as “The CBA Union” (Which expression shall include and mean its successors and assigns of the CBA Union and all the present perment workers working on machines employed by NEGOTIATING TEAMS

REPRESENTING THE EMPLOYER:

1. Mr. Hasan Irfan - General Manager Operations

2. Mr. Zarrar Nasir Khan - General Manager HR & Admin

3. Mr. Kashif Zahidi - Sr. Manufacturing Manager

4. Mr. Noor-ul-Hasnain Malik - Production Manager

5. Mr. Waqas Mehmood - Manager Finance

6. Mr. Zeeshan Syed - Manager Planning

7. Mr. Sirajuddin Rafiuddin - Assistant Manager IR

REPRESENTING THE CBA:

1. Mr. Qamoos Gul Khatak - President

2. Mr Muhammad Anwar - Vice President

3. Mr. Shakil Ahmed - General Secretary

4. Mr. Khalid Khan - Joint Secretary

5. Mr. Muhammad Rizwan - Legal Advisor

SHORT RECITAL OF THE CASE

WHEREAS the CBA Union has submitted a Charter of Demands to the Company vide its letter PCEU/008/14 DATED March 01, 2014, which Charter of Demands is hereinafter referred to as “Union Charter of Demands” and is attached hereto as Annexure “A”

Whereas the bilateral negotiations were initiated and whereas the period of bilateral negotiations was extended with mutual consent

AND WHEREAS the Company and the CBA Union continued their discussions and negotiations in a friendly atmosphere and as a result of these negotiations, discussions and collective bargaining, the Company and the CBA Union with a view to maintain industrial harmony have mutually arrived at this agreement under the applicable aw on the terms and conditions stated hereinafter in full and final agreement of all demands directly and/or indirectly made or specified in the Charter of Demands and/or raised during negotiations and collective bargaining.

TERMS OF AGREEMENT

1. BASIC PAY:

The basic pay of all permanent workers will be increased by Rs. 400/- (Ruppes Four hundred only) per month with effect from 01.01.2014. It is agreed that any increase in wages announced by the Federal or Provincial Governments under any law for the time being enforce including, Workers Minimum Wages Ordinance during the period of agreement shall be adjusted/set off against the above amount.

2. INCREMENT IN CURRENT PAY SCALES

One Time Increment

It is agreed that effective from 1st January, 2014 an increment of Rs. 15/= (Fifteen Only) will be added in all the current pay scales. This increment will be a onetime increment for the years 2014-2015. It shall not be made the basis of any future demand (s).

All permanent workmen who exhaust their entire annual leave entitlement and in addition are absent for more than 14 days shall not get this fixed increment.

All permanent workers who avail leave without crossing the ceiling of their total annual entitlement of leaves will be granted a full increment of the onetime pay scale increment mentioned above.

All permanent workers who exhaust their entire annual leave entitlement and in addition are absent up to a max of 14 days will only be allowed a 5% increment of the onetime pay scale increment mentioned above.

No increment would be allowed to those workers who exhaust their entire annual leave entitlement and are additionally also absent for more than 14 days.

All permanent workmen against whom any disciplinary action is pending shall only be awarded the above increment after the final outcome of the disciplinary action. In case any workman is dismissed as a consequence of the pending disciplinary action, he shall not be paid this increment at the time of his final settlement.

Provided that the outcome of the disciplinary action shall not exceed a period of thirty (30) days, after issuance of Charge Sheet. In case the delay is on the part of management, the increment which was kept pending shall be paid to the workman facing disciplinary action. In case the delay is on part of the workman, increment amount will only be paid after the decision of the disciplinary action and the condition of 30 days mentioned above shall not apply.

3. PROFIT BONUS

It is agreed that the Company will pay Profit Bonus equal to 6 months basic wages/salary including statutory Cost of Living Allowance (excluding COLAS Rs. 100/- effective 1.9. 1993, Rs. 50/- effective 1.4.1994 and Rs. 100/- effective 11.12.2000) and one profit bonus under Section 10-C equal to one month’s basic wages/salary and Statutory Cost of Living Allowance (including Rs. 100/- Rs. 50/= and Rs. 100/-) plus a lump sum amount of Rs. 8,650/- (Rupees Eight thousand six hundred fifty only) per worker per annum to all permanent workmen having one year or more service on 31. 12. 2013 and 31. 12. 2014

The above profit bonuses include Statutory Profit Bonus payable under Standing Order 10-C of the West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance 1968.

The Profit Bonus for the Year 2014 is based on the wages/salary drawn on 31.12.2013 and for the year 2015 on the basis of the wages/salary drawn on 31.12.2014. Permanent workmen who have not completed 12 months service in any of the above financial years will receive the Profit Bonus on a pro-rata basis. The amount of profit bonus already paid as advance including the one covered under Section 10-C will be adjusted while making this payment. Workers having less than 90 days of service will not be entitled to this payment.

It is agreed that Bonus shall not be paid to the permanent employees Who have remained absent on leave without pay, except;

• For a period of up to 5 working days (up country leave without pay) in a year.

• Those who have been absent on leave without pay up to maximum of 14 days in a year.

Bonus shall not be paid to those permanent employees against whom any disciplinary action is pending. Bonus will only be paid after the final outcome of the disciplinary action. In case any workman is dismissed as a consequence of the pending disciplinary action, he shall not be paid this bonus at the time of his final settlement. But this shall not curtail the right of a workman to approach the court of law for redressal of his grievance.

Provided that the outcome of the disciplinary action shall not exceed a period of thirty (30) days, after issuance of Charge Sheet. In case the delay is on the part of management, the bonus which was kept pending shall be paid to the workman facing disciplinary action. In case the delay is on part of the workman, bonus amount will only be paid after the decision of the disciplinary action and the condition of 30 days mentioned above shall not apply.

It is also agreed that hence forth, profit bonus will be paid after the conclusion/signing of the Charter of Demand for the first year and in the second year of the COD, if the circumstances so permit, bonus will be paid in the month of January.

4. CONVEYANCE ALLOWANCE:

It is agreed that the existing Conveyance Allowance in respect of clerical/A class permanent workers shall be increased by Rs. 275/- (Rupees Two hundred seventy five only) and B Class/subordinates shall be increased by Rs. 275/- (Rupees Two hundred seventy five only) which shall be payable as under with effect from 01.01.2014:

Clerical and “A” Class StaffRs. 1,932/-p.m. (Rupees One thousand nine hundred & thirty two only)

Subordinates and “B” Class Rs. 1,857/-p.m. (Rupees One thousand eight hundred & Fifty seven only)

5. FAMILY MEDICAL ALLOWANCE:

It is agreed that the existing Family Medical Allowance payable to all permanent workmen will be increased by Rs. 555- (Rupees Five hundred fifty five only) with effect from 01. 01. 2014. The revised Family Medical Allowance after the above increase will not be Rs. 3,655/= (Rupees Three thousand six hundred & fifty five only) per month.

6. MOTORCYCLE LOAN:

It is agreed that the Company will provide Motorcycle Loan of Rs. 60,000/- (Rupees Sixty thousand only) for up to forty eight (48) permanent workers, having put in a minimum of five years of service in the Company. However, if any permanent worker wishes to buy a motorcycle (criteria for this will be the same as that for loan), the Company will arrange the purchase of Motorcycle Honda CD70 assembled in Pakistan. No Sale or Transfer of Motorcycle shall be permitted till the entire loan has been repaid.

The above Motorcycle Loan for up to forty eight (48) permanent workers is for the entire duration of this Agreement (up to 24 permanent employees per year for the years 2014 and 2015). The Loan will be repayable in 60 equal monthly installments. All other terms and conditions will remain unchanged.

7. LEAVE FARE ASSISTANCE:

It is agreed that the existing Leave Fare Assistance payable will be increased by Rs. 2,950/- (Rupees Two thousand nine hundred fifty only). The revised Leave Fare Assistance will now be Rs. 9,950/- (Rupees Nine thousand nine hundred fifty only) per annum with effect from 1.7.2014. It is also agreed that the amount of LFA shall be paid once in a financial year to all the permanent workers of the Company. It is further agreed that irrespective of availing the leave the LFA will be paid in the salary of July each year.

8. FUNERAL AND BURIAL EXPENSES:

It is agreed that the existing amount payable towards funeral and brutal expenses upon the death of a permanent workman will be revised and shall be payable as under:-

Within Karachi - Rs. 35,000/- (Rupees thirty five thousand only)

Up-Country - Rs. 45,000/- (Rupees forty five thousand only).

9. LONG SERVICE AWARD:

It is agreed that the Long Service Award shall be paid only once as per following schedule to only those permanent workers who are on the role of the company on the date of this agreement:-

a 10 years service Rs. 3,500/-(Rupees three thousand five hundred only)
b 15““ Rs. 5,500/-(Rupees five thousand five hundred only)
c 20““ Rs. 11,700/-(Rupees eleven thousand seven hundred only)
d 25““ Rs.14,000/-(Rupees fourteen thousand only)
e 30““ Rs.15,500/-(Rupees fifteen thousand five hundred only)
f 35““ Rs. 18,000/-(Rupees eighteen thousand only)
g 40““ Rs. 19,000/-(Rupees Nineteen thousand only)

10. CO-OPERATIVE STORE:

It is agreed that the amount payable to Co-operative Store will be increased from Rs. 14,000/- per month to Rs. 15,500/- (Rupees Fifteen thousand five hundred only) per month.

11. MONTHLY GOOD ATTENDANCE ALLOWANCE:

It is agreed that Monthly Good Attendance Allowance for being present on job throughout the month will be increased from Rs. 2,200/= per month to Rs. 2,390/- (Rupees two thousand three hundred ninety only) per month as per conditions given hereunder:

On availing one Leave ………..Rs. 100/- will be deducted.

On availing two leaves ………..Rs. 200/- will be deducted.

On availing three leaves ……… No payment of the above allowance shall be made.

12. ANNUAL GOOD ATTENDANCE AWARD:

It is agreed that the amount of Annual Good Attendance Award will be increased from Rs. 9,000/- per annum to Rs. 10,200/- (Rupees ten thousand two hundred only) per annum. Other conditions will remain unchanged.

13. GAZETTED HOLIDAYS FALLING ON SUNDAY:

a) It is agreed that henceforth, if any gazette holiday falls on a Sunday the next working day would be deemed as an off day, provided that if the management at its discretion decides to call any or all worker(s) to work, they shall be paid overtime for working on that day. After the signing of this COD, no leave in lieu of a gazette holiday falling on a Sunday shall be awarded to any worker.

b) The workers who are called for working on Gazetted Holiday falling on Sunday, their per day Conveyance Allowance is increased to Rs. 125/- (Rupees one hundred twenty five only) per day for B class workers and Rs. 125/- (Rupees one hundred twenty five only) per day for A class workers.

c) Meals shall be provided on Gazetted Holidays falling on Sunday, irrespective of the number of workers present on that day through the company canteen. In case the food is not provided, the reimbursement against such meal will be Rs. 120/= (Rupees one hundred twenty only) for each worker

14. SAFETY SHOES & JERSEY:

It has been agreed that as the company is providing safety shoes free of cost to all workers, hence the cash amount equivalent to one pair of shoes for all permanent workers which was being paid previously by the company will not be paid anymore.

It has been further agreed that the purchase price of Woolen Jersey, which is provided once in two years, will be increased by Rs. 450/-(Rupees four hundred fifty only) and as such the revised payment of Jersey be Rs. 2,000/- (Rupees two thousand only) for the period 2014-15.

15. DAUGHTER’S MARRIAGE LOAN:

It has been agreed that in the event of wedding of the eldest maiden daughter of a permanent worker, the Company shall pay Rs. 50,000/- (Rupees fifty thousand only) as loan which shall be repaid in 50 equal installments on the following criteria. Only a maximum of up to 20 workers for two years (up to ten workers for each year) will be allowed to avail this facility, during the operation of this agreement i.e. within the period (2014-15). This facility has been extended for two years period only and would expire at the end of this agreement. Other conditions and criteria for availing this loan will remain unchanged.

16. EDUCATION OF DAUGHTERS:

Any permanent worker, whose daughter successfully passes her Matric exam after 1st January 2014, will be entitled to an award according to the Grade achieved. For “A” Grade Rs. 16,500/- (Rupees Sixteen thousand five hundred) “B” Grade Rs.13,000/- (Rupees thirteen thousand only) & “C” Grade Rs. 10,500/- (Rupees ten thousand five hundred only) will be paid. This is restricted to two (2) eldest daughters per worker and minimum grade achieved is “C” and there has been sufficient exposure to internationally taught subjects which may also include English. This clause is valid for a period from 1st January 2014 to 31st December 2015.

Any worker whose daughter successfully passes her Graduation exam after 1st January 2014, will be entitled to an award of Rs. 17,000/- (Rupees seventeen thousand).This is restricted to only one eldest daughter per worker. This clause is only valid for a period from 1st January 2014 to 31st December 2015.

17. LUNCH & DINNER ALLOWANCE:

All Non – Muslim permanent workers will be entitled for Rs. 120/- (Rupees one hundred twenty only) against lunch / dinner allowance in the month of Ramzan provided lunch/dinner break falls during their duty timings.

18. RAMZAN IFTAR ALLOWANCE:

It is agreed that the Ramzan Iftar allowance be increased from Rs. 60/= to Rs. 80/= per day.

19. CHEMICAL ALLOWANCE:

It is agreed that the chemical allowance will be increased from Rs.35/- (Rupees thirty five only) to Rs. 40/- (Rupees forty only) per shift.

20. OFFICIATING ALLOWANCE:

a)It is agreed that officiating allowance will be increased by Rs. 5/- (Rupees five only) for each grade with effect from 01.01.2014.

b)Promotion cases for workers working on officiating basis shall be considered by the company on case to case basis in due course of time.

21. OPERATIONAL EFFICIENCIES:

In light of the emerging/competitive situation, the Union recognizes the need to improve operational efficiencies, and assures the Management that it will direct its members to increase productivity, reduce wastage of time and material, maintain discipline and minimize rejections. Operational efficiency level will be determined by the management and will be deemed as final. CBA has agreed to ensure that the operational efficiency level determined by the management is achieved immediately on signing this agreement.

22. PRODUCTIVITY:

Productivity will be increased in relation to present capacity of the machines. The minimum increase agreed by CBA are mentioned in Annexure “B” (attached) which has to be immediately implemented. However further improvements will be carried out on continuous basis and any BMR, electrical or mechanical improvement or process improvement will be determined by the management. It is further agreed that the running time of the machine will be increased to full shift time and time will not be wasted.

It is agreed by both the parties that in case there is a short fall of minimum agreed production as stated in Annexure “B”, the same will try to be recovered by putting extra efforts to meet the monthly targeted production plan.

CBA undertake to ensure that the minimum requirement as mentioned in Annexure “B” pertaining to productivity is achieved.

23. UTILITY ALLOWANCE

It is agreed that the existing Utility Allowance shall be increased by Rs.297/- (Rupees Two hundred ninety seven only) per month.

24. INDIVIDUAL / COLLECTIVE GRIEVANCE(s)

It has also been mutually agreed that in case of an individual grievance of a workman or in case of disciplinary action by the management against a workman, no collective reaction will be shown by the workers or group of workers.

25. HEALTH SAFETY ENVIORNMENT (SHE) REQUIREMENTS

It is agreed that all permanent workers shall wear the Personal Protection Equipment (P.P.E) including safety shoes as provided by the company from time to time. CBA undertakes to ensure adherence to safety rules and procedures by all permanent workers and shall in this regard monitor and point out the permanent workers who are not adhering to the above. All other terms and conditions will remain unchanged.

GENERAL:

In light of the prohibitory order dated 03.04.2014 issued by the Hon’ble Bench of Commission of National Industrial Relations (NIRC) Islamabad in case No. 4A(39)/2014K, CMA 24(39)/2014K against the strike notice dated 18.03.2014;

It has been agreed that as this agreement has been signed the strike notice has become infructuous.

THIS AGREEMENT under the applicable law is full and final agreement of all Demands raised by the CBA/Union in the Charter of Demands and disputes in existence up-to the date of signing of this Agreement and any demands not specifically mentioned in this Agreement but raised in the Charter of Demands shall be deemed to have been withdrawn/dropped settled in consideration of this Agreement.

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; as well as Company’s effort to implement Quality Management and Environmental Management Systems.

THE CBA UNION agrees to maintain industrial peace and abide by this Agreement under the law for the operative period of this Agreement and further agrees that the CBA Union will not raise or pursue any demand covered by this Agreement or the said Charter of Demands and or any other demand involving financial implications or otherwise whatsoever during the term of this Agreement i.e. upto 31.12.2015.

EXISTING FACILITIES:

IT IS AGREED THAT:

a) All existing terms and conditions of service, facilities, amenities, privileges and previous clauses (barring practices) specifically agreed upon etc. shall continue to remain in force save to the extent of those that have been modified, changed or altered by this agreement.

b) It is agreed that the benefits provided in this Agreement will be applicable to all permanent workers on the Payroll of the Company as on 01.01.2014.

c) It is agreed that all the benefits and facilities under this Agreement shall be effective from 01.01.2014 except as otherwise specifically provided in the Agreement.

DURATION OF AGREEMENT:

It is agreed that this Agreement will come into operation with effect from 01.01.2014 and will remain in force and binding upon the parties’ up-to two years.

IN WITNESS WHEREOF THE PARTIES AS AFORESAID HAVE SIGNED THE DAY AND YEAR FIRST ABOVE WRITTEN.

*****

Memorandum of Agreement between Pakistan Cables Limited and Pakistan Cables Employees Union - 2014

Start date: → 2015-12-31
End date: → 2014-01-01
Ratified by: → Other
Ratified on: → 2015-06-29
Name industry: → Manufacturing
Name industry: → Manufacture of electrical equipment
Public/private sector: → In the private sector
Concluded by:
Name company: →  Pakistan Cables Limited
Names trade unions: → 

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 400.0
Wage increase starts: → 2014-01

Once only extra payment

Once only extra payment due to company performance: → Yes
Once only extra payment takes place: → 2014-12

Extra payment for annual leave

Extra payment for annual leave: → PKR 9950.0

Allowance for commuting work

Allowance for commuting work: → PKR 1857.0 per month

Allowance for seniority

Allowance for seniority: → PKR 3500.0 per month
Allowance for seniority after: → 10 years of service

Meal vouchers

Meal allowances provided: → Yes
→ 120.0 per meal
Free legal assistance: → No
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