MEMORANDUM OF AGREEMENT BETWEEN UNIVERSAL MINES LAKHRA COAL MINES FIELD AND UNIVERSAL MINES WORKER’S UNION - 2009

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Dated: 15th October, 2009

Form – “W” (Rule No. 69)

NAME OF PARTIES

1. M/S UNIVERSAL MINES LAKHRA COAL MINES FIELD

Head Office: Plot No. 7-B, Commercial Area Unit # 6, Latifabad, Hyderabad.

Phone No. 022-3818361

2. UNIVERSAL MINES WORKER’S UNION KHANOTE

Head Office: 24, Circular Building, Risala Road, Hyderabad.

Phone #. 022-2785595 Fax #. 022-2784935

REPRESENTING EMPLOYER

Mr. Irshad Ahmed - General Manager, Universal Mines

REPRESENTATIVE OF EMPLOYEES

Mr. Qamoos Gull Khattak - General Secretary of Union

SHORT RECITAL OF THE CASE

WHEREAS, The Universal Mines Worker’s Union is the collective bargaining agent of the Employees/Workmen of M/s Universal Mines and the said C.B.A Union gave a charter of demands dated 8th August, 2009 to the M/s Universal Mines under section 43(1) of the I.R.A 2008 for direct bilateral negotiations and agreement and copies whereof sent to the concerned authorities including Deputy Director Labour (Conciliation) Hyderabad Region, Hyderabad.

AND FURTHER WHEREAS, on receipt of the above said notice the management of M/s Universal Mines start the negotiations relating to difference and disputes with C.B.A Union and the result of the negotiations this agreement is executed between the parties at Hyderabad on 15-10-2009.

TERMS AND CONDITIONS OF AGREEMENT

Demand No. 1: BONUS FOR FINANCIAL YEAR 2008-2009

Agreement

It is agreed between the parties that the Workmen/Employees of the M/s Universal Mines will be paid the aforesaid bonus for the financial year 2008-2009.

(a) All the monthly-rated and daily rated employees/workmen shall be paid bonus for financial year 2008-2009 equivalent to their thirty (30) days salary/wages which quantum of gross salary/wages they were getting as on 30-06-2009.

(b) It is also agreed that the coal cutters shall be paid bonus Rs. 12/- per ton.

Demand No. 2: ENHANCEMENT IN WAGES/SALARIES AND OTHER BENEFITS

Agreement

It is agreed between the parties that the Universal mines shall increase the rates of wages/salaries of the employees/workmen w.e.f. 1st July, 2009 as under:

(1) That an increase of Rs. 700/- per month will be made in wages/salaries of all monthly and daily rated employees/workmen.

(2) It is also agreed that the unskilled worker/employee will be paid wages Rs. 6000/- per month as minimum wages.

(3) It is agreed that the increase per ton will be made in the rate of Coal Cutter, as per Schedule “A”.

(4) It is agreed between the parties that the Jorisars commission, Material allowance and Amani allowance shall be increased as per schedule “B”.

(5) It is further agreed that the Jorisars will be paid of Rs. 10/- per ton as summer allowance from 1st April to 31st August every year.

(a) It is agreed that Coal Cutter will be paid summer allowance in the Category 1 Seam Rs. 15, Category 2 Rs. 20 & Category 3 Rs. 25 per ton from 1st May to 31st August every year.

(6) Special Summer Allowance for seam i.e. three feet or less than three feet.

i. It is agreed that, any Jori produce 400 four hundred to 450 four hundred fifty tons coal in a month shall be paid EXTRA Summer allowance at the rate of 25/- per ton w.e.f. 1st April to 31st August every year and Jorisar will be paid Rs. 10/- per ton.

ii. It is agreed that any Jori produce 451 four hundred fifty one to 500 five hundred tons coal in a month shall be paid EXTRA Sumer Allowance at the rate of 35/- per ton for the above said period and Jorisar will be paid Rs. 10/- per ton.

iii. It is further also agreed that, any Jori produce 550 five hundred fifty tons and above coal in a month shall paid EXTRA Summer allowance at the rate of 45/- per ton and Jorisar will be paid Rs. 10/- per ton.

Demand No. 3: That the Chappar Katai/Roof Cutting rate has been as under:

Agreement

(a) The rate of Chappar Katai/Roof Cutting of up to one ft. thickness will be Rs. 80/- per running ft.

(b) The rate of Chappar Katai/Roof Cutting up to two ft. thickness will be Rs. 12/- per running ft.

(c) The rate of Chappar Katai/Roof Cutting up to three ft. thickness will be Rs. 150/- per running ft.

Demand No. 4: It is agreed between the parties that the Katcha Khudai work/Footana rate will be as under:

Agreement

a. The rate of Katcha Khudai work/Footana in mines deep will be increased and fixed Rs. 1000/- per running ft. (Size 5x6x7)

b. The rate of Katcha Khudai work/Footana of wall 8x8 increase and fixed Rs. 1100/- per running ft.

c. The commission of Jorisar in Katcha Khudai works will be paid Rs. 60/- per running ft. and haulage driver gani bags and other material will be responsibility of the company.

d. The Jorisars will be paid Rs. 50/- per door in Katcha Khudai deep work.

e. Extraction rate and kharaba from mines will be paid Rs. 250/- per ton.

f. Haulage Driver Fotana will paid Rs. 6000/- per month.

g. It is also agreed between the parties that in case of water and stones coming in way of Katcha Khudai of well and deep or check and Chunae. The rate fixed in sub clause (1) and (2) of clause 4 shall automatically stand double. It is also agreed that company shall provide compressor for cutting of stones and generator for water extraction from mines in curse of Katcha Khudai.

Demand No. 5: Stopping Rates

Agreement

(a) FIRE STOPPING

(1) Stopping rates height up to Six ft. Rs. 1100/- per stopping.

(2) Stopping rates height above Six ft. up to Eight ft. is Rs. 1500/- per stopping.

(3) Stopping rates height above Six ft. up to eight ft. Rs. 2500/-

(b) WITHOUT FIRE STOPPING

(1) Stopping height to three ft. Rs. 600/- per stopping.

(2) Stopping height above three ft. up to six ft. Rs. 1100/- per stopping.

(3) Stopping height above six ft. up to eight ft. Rs. 1200/- per stopping.

(4) Stopping height above eight ft. up to Ten ft. Rs. 1600/- per stopping.

Demand No. 6: WAGES RATES OF THE COAL CUTTERS

Agreement

It is settled that the Rs. 200/- per day in total will be the rate of Gazette Holiday and Holiday and Gratuity for Coal Cutters.

Demand No. 7: RESIDENTIAL FACILITIES

Agreement

1. It is agreed between the parties that management shall provide to each and every workmen/employee free residential facilities with Barth-Rooms, Kitchen etc. and further that the repairs, white-wash of the residential premises/quarters of the workers shall be undertaken by the management each year, at its own cost in consultation with the C.B.A Union.

2. It is also agreed that management of Universal Mines already approached the Sindh Worker Welfare Board for allotment of Fifty (50) constructed houses at Universal mines Lakhra Coal Field for workers/employees. The down payment and monthly installment will be paid by Management of the Company on behalf of allotee worker/employees.

Demand No. 8: DISTRIBUTING FREE SEWING MACHINES/FANS

Agreement

It is agreed that M/s Universal mines shall distribute Sixty (60) sewing machines free of cost through C.B.A union.

Demand No. 9: MEDICAL FACILITIES

Agreement

(a) Rs. 5/- per ton will be paid by the company on production of coal every month to the Medical Treatment Committee, for the Mines site Hospital expenses salary of Staff and Doctors, Medicines and all requirement for treatment of workers at mines site hospital Lakhra only.

(b) In case the treatment of workers/employees is not possible at the arrangement of mines site under sub clause (a), those workers/employee shall be sent to those Hospitals which is agreed by the union on the company expenses.

(c) In case of accident the management of M/s Universal mines shall be liable and responsible for every kind of treatment and medical facilities at the all levels to such effected workers/employees at the company expenses including hospitalization, food, medicines and all kind of requirement.

Demand No. 10: PROVIDING TELEVISION SETS

Agreement

It is agreed that the management of M/s Universal Mines will distribute Ten (10) TV sets with batteries free of cost to the workers through C.B.A Union.

Demand No. 11: INCREASE IN SPORTS FUND

Agreement

It is agreed that Annual Sports Fund will be paid to the C.B.A union of Rs. 50,000/- (fifty thousand only).

Demand No. 12: PROVIDING FACILITIES FOR C.B.A UNION OFFICE

Agreement

It is agreed that M/s Universal Mines will provide Rs. 50,000/- (fifty thousand) for equipment’s of office to C.B.A union at Hyderabad.

Demand No. 13: PROVIDING NEW MINES TO JORISARS

Agreement

It is agreed between the parties that, Jorisars whose working the company will be provided new mines with the recommendation of C.B.A Union.

Demand No. 14: INCREASE IN GRATUITY

Agreement

It is agreed that M/s Universal mines shall pay gratuity to the workers/employers according the provision of West Pakistan Industrial & Commercial Employment Standing Order Ordinance 1968.

Demand No. 15: SENDING WORKMEN ON HAJJ

Agreement

It is agreed that M/s Universal Mines will sent Two (2) workmen/employees every year to Hajj by Air through C.B.A union on company expenses.

Demand No. 16: FAIR PRICE SHOP AT MINES SITE

Agreement

It is agreed that M/s Universal mines will provide a facility of Fair price shop for workers/employers at no loss no profit basis providing them maximum commodities of consumer goods, with the time to time concern of C.B.A Union.

Demand No. 17: PROVIDING MEAT ON EID-UL-AZHA OCCASION

Agreement

It is agreed that M/s Universal Mines will provide meat on the occasion of Eid-ul-Azha as per recommendation of C.B.A union.

Demand No. 18: WORKMEN COMPENSATION & GROUP INSURANCE

Agreement

It is agreed between the parties that all workers/employees shall be paid death and disability compensation and group insurance amount as under:

(a) Death compensation and disability compensation will be paid according workman compensation Act 1923 date 06 October 2001 Rs. 200,000/- (Rupees Two Hundred Thousand only).

(b) It is also agreed that in case of death and disability in case of mining accident EXTRA amount Rs. 50,000/- (Rupees Fifty thousand only) will be paid according previous Agreement/Settlement and also Rs. 2000/- (Two thousand only) per month shall be paid to legal heirs of the expired worker from the date of accident up to five (5) years.

(c) It is also agreed that the amount of group insurance will be paid with EXTRA amount in total Rs. 210,000/- (Rupees Two hundred & ten thousand only).

(d) It is also agreed that the expenses of dead bodies will be paid Rs. 50,000/- (Rupees Fifty thousand only) for those who died during the case of employment of this company.

(e) It is also agreed that workers/employees who are disable during the employment will be paid disability allowance Rs. 3000/- per month for life time.

Demand No. 19: SPECIAL ALLOWANCE FOR MINE SARDAR

Agreement

The clause is withdrawn by the union.

Demand No. 20: PROVIDING AMBULANCE SERVICE TO WORKERS

Agreement

It is also agreed between the parties that, Management shall provide an ambulance for the workers and the same shall in no case be used by the management except by the workers/employees for medical treatment etc.

Demand No. 21: VENTILATION OF MINES

Agreement

It is also agreed between the parties in order to improve working conditions in mines and to arrange proper ventilation for fresh air, Fans will be installed in all mines of company.

Demand No. 22: IMPROVING WORKING CONDITIONS IN SMALL SEAM MINES

Agreement

It is agreed between the parties that, management of the company will be bound to provide facilities to improve the working condition in the mines, as under:

i. Each mine will have two shafts with haulages, installed.

ii. Rail line will be provided in main centers.

iii. Fans will be provided to improve ventilation.

Demand No. 23: WELFARE FUND

Agreement

It is agreed between the parties that Welfare Fund will be paid at the rate of Rs. 10/- per ton on total coal production every month.

Demand No. 24: NALI KATAE RATE

Agreement

It is agreed between the parties that Nali Katae Fund will be increased and fixed Rs. 50/- per ft.

Demand No. 25: Eid-ul-Fitar Package

Agreement

It is agreed between the parties that all employees/workers including contact employees Jorisars, Munshi and Cook will be paid Rs. 1500/- (One thousand Five hundred only) whose work minimum 15 days in the month of Ramzan for Cloth and Shoes etc.

Demand No. 26: Ramzan Package

Agreement

It is agreed between the parties that the Company will provide ice and Rooh Afza for all employees/workers for aftari time.

Demand No. 27: GUARANTEES OF SUBSISTANCE OF PREVIOUS AGREEMENT AND SETTLEMENT TO REMAIN INFORCE

Agreement

It is agreed that M/s Universal mines will continue allowing/granting all rights, facilities and privileges which various earlier settlements, agreements and the law provided and conferred upon them and they shall not in any way be detailed or varies on amended diminished or changed to their determent and prejudice.

That this settlement shall remain in force for a period of one year w.e.f. 1st day of July 2009 till 30th June, 2010.

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PAK Universal Mines Lakhra Coal Mines Field - 2009

Start date: → 2009-07-01
End date: → 2010-06-30
Ratified by: → Other
Ratified on: → 2009-10-15
Name industry: → Extraction, mining, quarrying
Name industry: → Mining of hard coal
Public/private sector: → In the private sector
Concluded by:
Name company: →  Universal Mines Lakhra Coal Mines Field
Names trade unions: →  None

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

HEALTH AND SAFETY AND MEDICAL ASSISTANCE

Medical assistance agreed: → Yes
Medical assistance for relatives agreed: → No
Contribution to health insurance agreed: → Yes
Health insurance for relatives agreed: → No
Health and safety policy agreed: → No
Health and safety training agreed: → 
Protective clothing provided: → 
Regular or yearly medical checkup or visits provided by the employer: → 
Monitoring of musculoskeletal solicitation of workstations, professional risks and/or relationship between work and health: → 
Funeral assistance: → Yes
Minimum company contribution to funeral/burial expenses: → PKR 50000.0

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 6000.0
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → PKR 8400.0
Wage increase starts: → 2009-07

Once only extra payment

Once only extra payment due to company performance: → Yes

Meal vouchers

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