MEMORANDUM OF AGREEMENT BETWEEN THE SEARLE COMPANY LIMITED AND SEARLE (PAKISTAN) LTD EMPLOYEES UNION - 2014

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FORM – X

Under Rule 70 of the Industrial Relation Rules, 1973

Read with Section 35 of the Sindh Industrial Relations Act, 2013

FROM JULY 01, 2014 TO JUNE 30, 2016

NAME OF PARTIES

The Searle Company Limited having its Head Office at First Floor, NIC Building, Abbasi Shaheed Road, Karachi and its Factory situated at F-319, S.I.T.E, Karachi hereinafter referred as the “Company” (which expression wherever the context so admits shall mean and include its successors and assigns).

AND

Searle (Pakistan) Ltd. Employees Union, Registration No. 2758 (C.B.A), registered with Registrar of Trade Union, having its office at Awan – e – Itehad ST-37/4, Qasba Township, Manghopir Road, Karachi – 75890 at, hereinafter referred to as “Union” (which expression wherever the context so admits shall mean and include its successors assigns and all permanent Unionized workers employed in actual employment or to be employed by the “Company” at Plot No. F-319, S.I.T.E Karachi).

NEGOTIATION TEAMS

REPRESENTING “COMPANY”

Mr. Ayaz Abdullah - Director & General Manager

Mr. Athar Iqbal - Group Head Human Resources

Mr. Muhammad Shoaib - G.M. Plant Operations

Mr. Muhammad Sajid Hafeez - G.M. Disbursement & Planning

Mr. Ahmad Zaheer - G.M. Human Resources & Admin – Factory

REPRESENTING “UNION”

Mr. Muhammad Bachal Samtio - President

Mr. Aijaz Ahmed - General Secretary

Mr. Shahid Ali - Vice President

Mr. Arshad Ali - Joint Secretary

Mr. Shahid Shah - Finance Secretary

SHORT RECITAL OF THE CASE

WHEREAS the “Union” being the Collective Bargaining Agent, had served a Charter of Demands dated January 01, 2014 under Section 34 of the Industrial Relations Act, 2012 (although the Union being registered with the Registrar of Trade Union, Karachi, it should have been served under the Sindh Industrial Relation Act, 2013). Charter of Nineteen (19) Demands along with copy of the Notice is annexed hereto and marked as Annexure A;

AND WHEREAS during the course of negotiations/discussion and meetings held from time to time the parties considered the rise in the cost of living and inflation justification of the Union’s Charter of Demands while focusing improvement in productivity, better cordial relation and industrial peace.

AND WHEREAS the “Company” pleaded rationalization of certain facilities and capping of hidden costs as justification for their Charter of Demands;

It is also considered necessary to bring on record that the overall Package Settlement on aforesaid Charter of Demands has been reached keeping in view of inflation and rise in the cost of living, rationalization of facilities, capping of hidden costs and the assurance given to the Employer that the workers shall work with more devotion and commitment and shall enhance their productivity;

And Whereas as a result of a series of discussions, bilateral negotiations and collective bargaining considering the inflation, cost of living, the parties have reached to an Agreement for a period of two (2.0) years from July 01, 2014 to June 30, 2016 with arrears for the period from January 01, 2014 to June 30, 2014 being in full and final settlement of all the Demands served through Charter of Demands dated 01-01-2014, which is noted as settled against each of Demand and annexed herewith as Annexure-B. it has, however, been agreed between the “Company” and the “Union” that neither this agreed period of the Agreement nor the quantum of benefits/facilities extended to permanent unionized workers awarded under this Agreement will ever be quoted as precedence in future.

THIS TERMS THUS AGREED WHEREOF ARE GIVEN UNDER: -

1. BASIC SALARY

It is agreed that all the permanent unionized workers who are on the confirmed payroll of the “Company” on the date of signing of this Agreement will be given one-time flat monthly increase of Rs. 1550.00 (Rupees One Thousand Five Hundred Fifty only) in their respective Basic Salaries w.e.f. July 01, 2014. The Company shall however pay arrears for the period from January 01, 2014 to June 30, 2014.

2. HOUSE RENT

It is agreed that all the permanent unionized workers who are on the confirmed payroll of the “Company” on the date of signing of this Agreement will be given one-time flat monthly increase of Rs. 800.00 (Rupees Eight Hundred only) in their respective House Rent Allowance of December 31, 2013 thus making a total of Rs. 5700.00 (Rupees Five Thousand Seven Hundred only) per month w.e.f. July 01, 2014. The Company shall however pay arrears for the period from January 01, 2014 to June 30, 2014.

3. CONVEYANCE ALLOWANCE

It is agreed that all the permanent unionized workers who are on the confirmed payroll of the “Company” on the date of signing of this Agreement will be given one-time flat monthly increase of Rs.500.00 (Rupees Five Hundred only) in their respective Conveyance Allowance of December 31, 2013 thus making a total as under w.e.f. July 01, 2014.

a) Male Workers - Rs. 4000.00 (Rupees Four Thousand only) per month.

b) Female Workers - Rs. 3900.00 (Rupees Three Thousand Nine Hundred only) per month.

The Company shall however pay arrears for the period from January 01, 2014 to June 30, 2014.

4. UTILITY ALLOWANCE

It is agreed that all permanent unionized workers who are the confirmed payroll of the “Company” on the date of signing of this Agreement will be given one-time flat monthly increase of Rs. 250.00 (Rupees Two Hundred Fifty only) in their respective Utility Allowance of December 31, 2013 thus making a total of Rs. 1250.00 (Rupees One Thousand Two Hundred Fifty only) per month w.e.f. July 01, 2014. This Utility Allowance will, however, not from part of wages for any purpose, whatsoever. The Company shall however pay arrears for period from January 01, 2014 to June 30, 2014.

5. HEALTHCARE INSURANCE SCHEME

It is agreed that existing medical benefits of Annual Hospitalization coverage under Healthcare Insurance Scheme for the Permanent Unionized Workers who are not covered under Government’s Social Security Scheme have been already on July 01, 2014. It is further agreed that 50% enhancement over and above allowable hospitalization limit in Health Insurance shall be considered in genuine cases as the case may be.

It is reiterated that effective July 01, 2014, Health Insurance Scheme pertains to Medical Benefits under Hospitalization coverage will also be extended to all those permanent unionized workers who are covered under Government’s Social Security Scheme with the application of same and exiting benefits which are being availed by all other permanent unionized workers. It is further agreed that such Social Security Covered Permanent Unionized Workers SHALL NOT claim any benefit(s) or apply for leaves from Social Security Institution once they are registered under Company’s Health Hospitalization Insurance Scheme.

6. GROUP LIFE INSURANCE

While superseding all relevant previous settled/agreed clauses in respecting of group insurance, it is informed that effective date of signing of this Agreement Group Insurance for Permanent Unionized Workers shall be revised as under:

In case of Natural Death during the service-Rs. 1,000,000.00 (Rs. One Million only)

In case of Accidental Death during service-Rs. 2,000,000.00 (Rs. Two Million only)

However, any increase during currency of this Agreement, if conferred through legislative amendment, is liable to be set off.

7. NIGHT SHIFT EX-GRATIA

It has been agreed that effective July 01, 2014 those Permanent Unionized Workers who are required to work in full working night will be paid Night Shift Ex-Gratia @ Rs. 80.00 (Rs. Eighty only) per full working night instead of Rs. 65.00 (Rs. Sixty-Five only) per full working night. The Company shall however pay arrears for the period from January 01, 2014 to June 30, 2014.

8. FINANCIAL ASSISTANCE FOR EDUCATION OF WORKERS’ CHILDREN AT INTER/GRADUATION LEVEL

It has been agreed that the Company will provide Scholarship to six (06) children of permanent unionized workers in an academic year with following conditions which are required to be fulfilled:

• The Scholarship will be offered to children of permanent unionized workers who will enroll with their HSC or Graduation level studies with Government accredited colleges/Institution and obtain 70% marks in preceding examination.

• The amount of Scholarship to the children of permanent unionized workers will be 50% of the total fee or maximum up to Rs. 50,000/- per academic year or Rs. 25,000/- per semester in a year.

• The payment of Scholarship will be formalized upon production of Transcripts of all documents including Marks Statement, Provincial/Character Certificate, NADRA Registration Form, Fee admission/ admission receipts or any other document if required by the Company.

• After first year of academic session or at end of two semesters, renewal of this benefit will be subject to maintaining merit standards accordingly.

9. ACCIDENT DURING WORK

It has been agreed in principle that Company shall bear all expenses if a permanent union worker is met with an accident during working at Plant’s Workplace. However, in case of non-compliance/negligence or casual approach, if reported by Concerned Manager, a thorough investigation will be conducted.

10. ATTENDANCE ALLOWANCE

It is agreed that effective July 01, 2014, the Attendance Allowance for the permanent union workers shall be paid @ Rs. 500.00 (Rs. Five Hundred only) per month to each such permanent unionized worker who has not availed any leave or absence off his account during the calendar month.

It is agreed that effective July 01, 2014 Attendance Allowance @ Rs. 250.00 (Rs. Two Hundred Fifty only) per month will be paid to such permanent unionized worker(s) who avails maximum of a single half day Leave or absence during a whole calendar month. Any worker having leave or absence for more than a single half day in calendar month shall not be entitled for the attendance allowance. The Company shall however pay arrears for the period from January 01, 2014 to June 30, 2014.

11. WITHDRAWAL OF UNION DEMANDS

The rest of Union Demands served in the “Union” Charter of Demands dated 01-01-2014, which were not settled in negotiations between “Union” and the “Company” shall stand withdrawn by “Union” unconditionally. Furthermore, Demand No. 28 of Charter of Demands of 01-01-2012 which will still remain operative and both agree to leave Demand No. 28 on the decision of Full Bench of NIRC in Appeal No. 12(07)/2013-K CMA No. 24(06)/2013-K of 2013 to negotiate the same in the light of the decision of NIRC under due process of law.

12. COST OF LIVING ALLOWANCE

It has been agreed that any financial increase in future if made by the Government or awarded through any legislation during the currency of this Settlement, either in Salary/Cost of Living Allowance or in facilities increasing directly /indirectly the individual’s emoluments, shall be set-off /adjusted against the aforesaid increase made by the “Company” through this Settlement.

13. GENERAL

a) The “Union”, its office bearers and its members will use their best endeavors to protect the interest of the “Company”, work for Company’s prosperity and give services of highest equality with increased productivity. The “Union” will make all out efforts to increase the efficiency of workers and create harmony amongst the workers and Management for collective interest of the “Company” and its employees.

b) The “Company” and its management staff will play guiding role to motivate the workers to achieve best possible productivity and will look after for their betterment, welfare and dignity.

c) Any change in the composition of office bears of the “Union” (the C.B.A) of formation of a new union shall not affect the operation and binding nature of this Agreement.

14. FINALITY

It is agreed by the “Union” that they shall not raise any further demands whatsoever, having direct or indirect financial implications for the “Company” during the period covered by this Settlement and the benefits of this Settlement shall not be reduced during the validity period of this Settlement.

15. DISCIPLINE AND PRODUCTIVITY

It is also agreed by the “Union” that the “Union” itself, it’s office bearer and its members shall continue to educate/counsel their workers about all aspect of their personal discipline particularly late reporting to workplace, early leaving from workplace, intermittent unauthorized absences from work place during the working hours, unauthorized absences.

The “Union”, its office bearer and its members have also ensured that during currency of this Agreement they will not resort to illegitimate strike beyond the ambit of legal provisions, glow-slow, demonstration or agitation. The “Union” has also agreed to increase the productivity through improvement in attendance and strict observance of Current Good Manufacturing Practices (cGMP), Occupational Health & Safety Standards, and personal hygiene etc.

16. SAVING OF TERMS AND CONDITIONS OF EMPLOYMENT

All terms and conditions of employment as on December 31, 2013 applicable to all permanent unionized worker under previous agreement/settlements will remain effective and operative in so far as these are not repugnant to or inconsistent with the text and scope of this Settlement.

17. PERIOD OF OPERATION OF AGREEMENT

This Settlement is operative for Two (02) years for the period from July 01, 2014 to June 30, 2016.

IN WITNESSETH WHEREOF THE PARTIES above-named do hereby set their respective signatures and seals hereunder at Karachi on Friday, November 07, 2014.

*****

Memorandum of Agreement Between the Searle Company Limited and Searle (Pakistan) Ltd Employees Union - 2014

Start date: → 2014-07-01
End date: → 2016-06-30
Ratified by: → Other
Ratified on: → 2014-11-07
Name industry: → Manufacturing
Name industry: → Manufacture of basic pharmaceutical products and pharmaceutical preparations
Public/private sector: → In the private sector
Concluded by:
Name company: →  Searle Company Limited 
Names trade unions: → 

SICKNESS AND DISABILITY

Provisions regarding return to work after long-term illness, e.g. cancer treatment: → No
Paid menstruation leave: → No
Pay in case of disability due to work accident: → 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 1550.0
Wage increase starts: → 2014-07

Once only extra payment

Once only extra payment: → PKR 6000.0 %
Once only extra payment due to company performance: → Yes
Once only extra payment takes place: → 2014-07

Premium for evening or night work

Premium for evening or night work: → PKR 2400.0 per month
Premium for night work only: → Yes

Allowance for commuting work

Allowance for commuting work: → PKR 3900.0 per month

Meal vouchers

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