MEMORANDUM OF AGREEMENT/SETTLEMENT BETWEEN ABBOTT LABORATORIES (PAKISTAN) LIMITED AND ALL PAKISTAN ABBOTT LABORATORIES EMPLOYEES UNION - 2014

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FORM X

From January 01, 2014 to December 31, 2015

(Under section 2(xxviii) & 35 (2) of the Sindh Industrial Relations Act 2012)

NAME OF PARTIES:

i) Abbott Laboratories (Pakistan) limited, Landhi Plant, having its registered office at Hyderabad road, Opposite Radio Pakistan Transmission Centre, Karachi, hereinafter referred to as the “Company” (Which expression wherever the context so admits shall mean and include its successors and assigns),

AND

ii) All Pakistan Abbott Laboratories Employees Union, having its registered office at D-112/3, Gulistan Colony, Quaidabad, Landhi, Karachi, hereinafter called “CBA” which expression wherever the context so admits shall include and mean its successors, assigns or the next CBA and all eligible permanent workmen employed or to be employed by the Company on its permanent roll.

NEGOTIATION TEAMS

REPRESENTING EMPLOYER

1. Mr. Shahrukh Masood - Human Resources Director

2. Mr. Syed Anis Ahmed Shah - Operations Director

3. Mr. Rana Anjum Latif - Director Manufacturing

4. Mr. Malik Saadat Ullah - Asstt. Director Finance & Company Secretary

5. Mr. Muhammad Tanweer Alam - HR Business Consultant (EPO,ADD& ADC)

REPRESENTING WORKMEN

1. Mr. Sartaj Ahmed Nadeem - Chairman

2. Mr. Muhammad Shareef - President

3. Mr. Jahangir Khan - Sr. Vice President

4. Mr. Arshad Mehmood - Vice President

5. Mr. Manzoor Hussain - General Secretary

SHORT RECITAL OF THE CASE

WHEREAS the last settlement singed on 11th February, 2013 between the CBA and the Company which expired on December 31 2013.

AND WHEREAS the CBA and the Company under section 35 of the Sindh Industrial Relations Act 2012 exchanged their charter of demands both dated January 01, 2014 (Photocopies of which are annexed hereto and marked “A” and “B”).

AND WHEREAS the parties above mentioned held several joint meetings to have bilateral negotiations on CBA and Company’s Charter of Demands, the period of which was extended from time to time with a view to resolve the dispute and to reach an amicable Agreement.

AND WHEREAS the intent and purpose of this agreement is to further promote working atmosphere, the existing cordial and amicable industrial relations between the company and the Union to achieve the highest level of employees’ performance and output.

The parties have reached the following agreement taking into consideration the cost of living allowance being paid by the company in accordance with the provisions of the Employee’s Cost of living (relief) Act 1973 as amended up to date and to meet the inflationary trends and in FULL AND FINAL settlement of all the demands contained in the said charter of demands and all other demands raised by the CBA, it has, however, been agreed between the Company and CBA that neither this agreed period of the Agreement nor the quantum of benefits awarded under this Agreement will ever be quoted as precedence in future.

NOW, THEREFORE, this Agreement witnesses as under:

1. PAY SCALE FOR NEW ENTRANTS:

It is mutually agreed to revise the pay scales in the basic salary with minimum and maximum as per following defined Grade of workers.

Revised Grade Pay scale

Eligibility Service Yrs

Grade VIII = Rs. 4,000 to Rs. 110,000 40 Years
Grade VII = Rs. 3,500 to Rs. 100,000 35 Years
Grade VI = Rs. 3,000 to Rs. 90,000 30 Years
Grade V = Rs. 2,500 to Rs. 80,000 25 Years
Grade IV = Rs. 2,000 to Rs. 70,000 20 Years
Grade III = Rs. 1,500 to Rs. 60,000 10 Years
Grade II = Rs. 1,000 to Rs. 50,000 05 Years
Grade I = Rs. 500 to Rs. 40,000 Joining

2. WAGES AND ALLOWANCES:

It is mutually agreed that all permanent workmen on the payroll of the Company on the date of signing of this Agreement shall be given a one time flat increase into their allowances, effective January 01,2014 as follows:

Salary Breakup Increased By
Basic Wages 3,600.00
House Rent 800.00
Utilities Allowance 800.00
Conveyance Allowance 400.00
TOTAL 5,600.00

3. LEAVE FARE ASSISTANCE (LFA):

It is mutually agreed to increase LFA to Rs. 6000/- from Rs. 5000/- (an increase of Rs. 1000/-) to all permanent workmen once in a year.

4. JERSEY & SHOES ALLOWANCE:

It is mutually agreed to increase Jersey & Shoes allowance to Rs. 2950/- from Rs. 2700/- per worker (an increase of Rs. 250/-) once in a year. (i.e. Rs. 1475/- for each allowance).

5. REFRESHMENT ALLOWANCE

It is mutually agreed to increase refreshment allowance to Rs. 100/- from Rs. 90/- ( an increase of Rs. 10/-) per worker for working 2 hours over time after normal working hours i.e. till 7:00pm

6. OUTDOORS LUNCH ALLOWANCE/CLOSURE OF CANTEEN

a. It is mutually agreed to increase meal allowance to Rs. 300/- from Rs. 250/- (an increase of Rs. 50/-) per permanent worker in case of canteen closure (except in the month of Ramzan) and when performing the official duty outside the factory premises assigned to them by their concerned supervisors provided, that the workers remain on outside duty during their respective lunch hours or perform duty during public and gazzeted holidays. Increase to Rs. 300/- from Rs. 250/- in dinner allowance while performing duty outside the city during working hours or work in night shift.

b. Increase to Rs. 75/- from Rs. 50/- in Breakfast Allowance for all permanent workers

Depot Workers only

c. Night stay allowance for depot workers only increase to Rs. 600/- from Rs. 500/- per worker/per night. (Increase Rs. 100/-).

7. SHIFT ALLOWANCE:

It is mutually agreed to increase shift allowance to Rs. 125/- from Rs. 110/- (an increase of Rs. 25/-) per permanent worker worked other than general shift.

8. IFTAR ALLOWANCE:

It is mutually agreed to increase Iftar Allowance to Rs. 150/- from Rs. 125/- (an increase of Rs. 25/-) per permanent worker per day if one stays till iftar time.

9. ANNUAL PICNIC:

It is mutually agreed to increase Picnic allowance to Rs. 1000/- from Rs. 700/- (an increase of Rs. 300/-) per worker once in a year; in addition Rs. 50,000/- would be given as Hut fare (increase of Rs. 10,000/-) along with the transport that is already being provided by the Company.

10. UMRAH

It is mutually agreed that total cost for Umrah be increase to Rs. 600,000/- from Rs. 450,000 for the specified permanent workers selected through balloting once in a year. (Increase of Rs. 150,000/-).

11. LONG SERVICE AWARD:

It is mutually agreed that Long Service Award for eligible qualifying permanent workers should be as follows:

Award on Completion of Years of services

Existing Award amount in Each Category

Revised Award amount in Each Category

Increase

5 Years 6,000 6,000 -
10 Years 8,000 8,000 -
15 Years 12,000 13,000 1,000
20 Years 17,500 20,000 2,500
25 Years 29,000 31,500 2,500
30 Years 37,500 40,000 2,500
35 Years 42,500 45,000 2,500
40 Years 47,500 50,000 2,500

12. GOOD ATTENDANCE ALLOWANCE:

a) Yearly

It is mutually agreed that Annual good attendance allowance for permanent workers be revised as follows:

i. Half-day leave availed throughout the year, - Rs. 18,000/- (Increased Rs. 2000/-)

ii. One-day leave availed throughout the year, - Rs. 14,000/- (Increased Rs. 2000/-)

iii. Two-days leave availed throughout the year, - Rs. 10,000/- (Increased Rs. 2000/-)

iv. Three-days leave availed throughout the year, - Rs. 08,000/- (Increased Rs. 2000/-)

v. Award for 5 consecutive years - Rs. 30,000/- (Increased Rs. 5000/-)

b) Monthly

It is also mutually agreed to increase Rs. 50/-on each category of monthly good attendance allowance.

i. No leave or ½ day availed during the month. - Rs. 350/- (Increased Rs. 50/-)

ii. One-day leave availed during the month. - Rs. 300/- (Increased Rs. 50/-)

13. CBA VISIT TO NIRC (ISLAMABAD)

It is mutually agreed to pay Rs. 30,000/- per trip once in a calendar years as fixed travelling allowance for two (02) persons nominated by CBA from office bearers and Rs. 1500/- as daily allowance per person along with leave of 05 working days (01 week) to appear before NIRC, Islamabad, subject to providing summon/notice from NIRC. Leave request may be considered for extension of further one (01) week on management’s discretion if the date of hearing is extended subject to court’s (NIRC) order.

14. CBA VISIT TO UPCOUNTRY DEPOTS (LAHORE, ISLAMABAD & MULTAN)

It is mutually agreed to pay Rs. 30,000/- per trip once in a calendar year as fixed travelling allowance for two (02) persons nominated by CBA from office bearers and Rs. 1500/- as daily allowance per person along with leave of no more than 05 working days (01 week) to visit upcountry depots if required to appear in any inquiry or any matters of workers related to Govt. agencies.

15. INEREST FREE LOAN:

It is mutually agreed that loans of all categories available for permanent worker be merged for both the plants which are as follows:

•Worker Loan (Rs. 50,000/ each worker)

Enhanced to Rs. 5.5mm from Rs. 4.5 mm. (Increase of Rs. 1.0 mm)

•House Loan (Rs. 50,000/ each worker)

Enhanced to Rs. 6.5mm from Rs. 5.5mm (increase of Rs. 1.0mm)

•Motorcycle Loan

28 male workers only Rs. 65,000/- each worker

•Refrigerator Loan

30 female workers Rs. 40,000/each worker

•TV Loan

70 workers Rs. 25,000/- each worker

16. MEDICAL FACILITY:

a) COLLAR FOR NECK AND BELT FOR BACKACHE:

Collar for neck and belt for backache will be covered through health facility only on recommendation of Orthopedic / Neuro Surgeon to employees and eligible dependent family members.

b) MATERNITY:

An increase of Rs. 5000/- in each delivery package as mentioned for 4th and 5th maternity. Maternity means from the first day the period from conception to birth, so all type of medical treatment and lab tests related to maternity will not be provided beyond 3rd maternity, for 4th and 5th maternity only delivery package will be followed.

Normally delivery - Rs. 35,000/-

Cesarean delivery - Rs. 45,000/-

17. RETIREMENT DURING PENDENCY OF AGREEMENT:

Any worker who retires / resigns during pendency of agreement/settlement, his/her computed value of pension and monthly pension to be revised for the cases that are brought forward by the individual himself/herself or by the CBA. Since, the said procedure is subjected to the actuaries approval, will take little long.

18. ANNUAL PARTY:

a) SERVICE AWARD:

It is mutually agreed to increase service award to Rs. 80/- from Rs. 60/- once in a year (an increase of Rs. 20/-) per served year.

b) KIDS MONEY:

It is mutually agreed to increase kids money to Rs. 180/- from Rs. 150/- (an increase of Rs.30/-) to all eligible children of an employee upto the age of 21 years.

c) LUCKY DRAW:

It is mutually agreed that gifts worth of Rs. 550,000/- (increase of Rs. 50,000/-) will be distributed among the workers through lucky draw on the day of annual function once in a year. (Gifts items will be decided in a discussion between management & the CBA).

Also an amount of Rs. 100,000/- in addition of lucky draw amount will be made part of “Party Expenses” and to be distributed among all the workers as described under “Entertainment Allowance”.

d) ENTERTAINMENT ALLOWANCE:

It is mutually agreed that in the event of discontinuation of Annual party the “Party Expenses” (paid last year to each worker) + Rs. 100.000/- (amount drawn from Lucky Draw) would be distributed annually among all workers and eligible dependent family members (spouse, children upto 21 years) and the amount will also be inflated by 10% each year.

19. PROMOTION:

It is mutually agreed to revise promotion increment to Rs. 300/- in basic wages (an increase of Rs. 100/-) as per eligible criteria for year of service mentioned above but no increase during change of department.

20. GROUP LIFE INSURANCE:

It is agreed that in case of death of any permanent workman during employment, heirs of such deceased will get an extra Rs. 250, 000/- (an increase of Rs. 50,000/-) in addition to normal sum insured.

21. SALARY ADVANCE:

Salary advance may be given to the workers for the reasons described as follows:

a) Wedding of Son/Daughter or Self.

b) Payment of tuition fee of his/her own child.

c) Pilgrimage of Hajj / Umrah.

d) Parent’s treatment:.

5 Basic wages which does not exceed Rs. 250, 000, will be given in the month of Feb and deductions will be made on a monthly basis @ Rs. 5,00/- per month, rest of the amount would be adjusted out of his November payments.

22. APPLICABILITY:

This agreement is applicable only to permanent workmen in the Grade Scale (I – VIII) mentioned above on the payroll of the company as on January 01, 2014.

23. DURATION OF AGREEMENT

It is agreed that this settlement will come into effect from January 01, 2014 and remain binding on both the parties up to December 31, 2015 (2 years)

SHAVING OF EXISTING TERMS AND CONDITIONS:

a.All terms and conditions including the terms agreed to in all previous agreements between the Company and the CBA and which have not been modified through this agreement will continue to remain in force.

b. Any changes in the composition of the Management or Union or tis office bearers will not effect the operation, sanctity and terms of this agreement.

c. All dues, if any, under this agreement will be payable from the operative date of this settlement. i.e. January 01, 2014

24) FINALITY

a) It is mutually agreed that this agreement is in full and final settlement of all the demands raised by the union in aforesaid charter of demands dated January 01, 2013 which agreement will remain in force and binding on both the parties from January 01, 2014 to December 31, 2015 that in consideration of benefits allowed by the company to the workmen under this settlement, The union hereby agrees and undertakes that during and/or for the period covered by this settlement, It shall not raise any fresh demand/demands whatsoever, financial or otherwise, or re-advance any demand which were already included in their respective charter of demands during the currency of this Agreement.

b) It is mutually agreed that the CBA will continue to maintain industrial peace and harmony within the Company and also to cooperate with the Company in its efforts to increase productivity, maintenance of discipline, improvement of production plans and facilities, and improvement in efficiency and shall not resort to any action involving curtailment of production and/or efficiency.

IN WITNESS WHEREOF THE PARTIES AS AFORESAID HAVE SIGNED HEREUNDER ON THIS DAY OF 28th MAY, 2014.

SIGNATURE OF PARTIES

*****

Memorandum of Agreement/Settlement between Abbott Laboratories (Pakistan) Limited and All Pakistan Abbott Laboratories Employees Union - 2014

Start date: → 2014-01-01
End date: → 2015-03-12
Ratified by: → Other
Ratified on: → 2014-05-28
Name industry: → Manufacturing
Name industry: → Manufacture of basic pharmaceutical products and pharmaceutical preparations
Public/private sector: → In the private sector
Concluded by:
Name company: →  Abbott Laboratories (Pakistan) Limited
Names trade unions: →  All Pakistan Abbott Laboratories Employees Union

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 500.0
Adjustment for rising costs of living: → 

Once only extra payment

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

Extra payment for annual leave

Extra payment for annual leave: → PKR 6000.0

Allowance for commuting work

Allowance for commuting work: → PKR 400.0 per month

Allowance for seniority

Allowance for seniority: → PKR 6000.0 per month
Allowance for seniority after: → 5 years of service

Meal vouchers

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