MEMORANDUM OF SETTLEMENT BETWEEN ADAMJEE ENGINEERING (PRIVATE) LIMITED AND ADAMJEE ENGINEERING WORKS EMPLOYEES UNION - 2014

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FORM ‘W’ RULE 69

1. NAME OF PARTIES

a) M/S. ADAMJEE ENGINEERING (PRIVATE) LIMITED

Plot # 1 & 16, Sector – 20, Korangi Industrial Area, Karachi, hereinafter called the “COMPANY”

b) ADAMJEE ENGINEERING WORKS EMPLOYEES UNION (Registration # 710)

Plot # 1 & 16, Sector – 20, Korangi Industrial Area, Karachi, hereinafter called the “C.B.A” (Collective Bargaining Agent) from workers employed in the Establishment.

2. REPRESENTATIVES

a .Management

1. Mr. Riazuddin Ahmad.....General Manager (P/M)

2. Mr. Abdur Rauf Karimi.....Dy. General Manager (Fasteners)

3. Mr. M. Zeeshan Khatri.....Manager (Factory Manager)

4. Mr. Muhammad Afzaal.....Officer (HR)

5. Mr. Bacha Rehman.....Officer (Admin)

b.C.B.A

1.Mr. Naveed Ahmed.....President

2.Mr. M. Adil Khan.....General Secretary

3.Mr. Afzaal Ahmed.....Joint Secretary

4.Mr. Muhammad Aamir.....Finance Secretary

3. BRIEF HISTORY

After expiry of last agreement on 30-06-2014 both parties (Management & C.B.A) furnished their Charter of Demands through notices dated 01-07-2014 for next tenure.

Further to the exchange of demands it was mandatory to find an amicable solution of this dispute. Therefore, the Management & C.B.A started bilateral negotiations to provide financial relief to the Company’s workmen due to rise in the cost of living. The settlement has now been finalized and all the demands/claims financial or otherwise, whether raised through the Charter of Demands or not are covered and settled in this agreement.

4. TERMS OF AGREEMENT

4.1 PRODUCTION TARGET

The C.B.A agrees and undertakes to give a minimum absolute Rolled Production of 34,000 Units per day or 884,000 units per month (26 working days) on the basis of two shifts of 16 hours per day (8 hours each shift) against existing machines.

Increase of decrease in the number of machines in existing setup will result in the formulation of fresh targets on the basis of machine production capacity and its efficiency.

4.2 PRODUCTION ALLOWANCE

The permanent workers shall only be eligible for Production Allowance on achieving monthly production targets. This Rolled Production should be up to the specified quality and within the standard wastage limits Production Allowance will be paid @ Rs. 850/- per month (Rs. Eight hundred fifty only) to all the permanent workers of Fasteners, Maintenance & Tools Room. However, it will be reduced proportionately in case of absenteeism / leave without pay.

4.3 ADDITIONAL PRODUCTION ALLOWANCE

To further motivate the employees and to provide additional financial benefits, the Management has allowed incentive against extra production @ Rs. 25/- every 2,500 Units. This additional production will be counted over and above the fixed monthly target.

Additional Production Allowance will be paid only to those employees working in the production line i.e. Fasteners, Maintenance & Tool Room.

Payment of Production Allowance shall be made on the monthly basis.

4.4 ANNUAL PRODUCTION BONUS

The Management agrees to pay Production Bonus equal to one month’s Gross Wages against achievement of Annual Production Target (i.e. Equal to 12 Months Production Target) for the Financial Years ending on 30-06-2016. Bonus payments shall be made in the month of September of the following year.

Above Bonus is apart from the statutory bonus under Standing Order 10-C of the Industrial & Commercial Employment (Standing Orders) Ordinance, 1968.

Payment of any additional bonus will be at the discretion of the Management and based on the Company’s financial position.

4.5 INCREASE IN WAGES

The Management accepts to increase minimum Gross Wages up to Rs. 12,000/- and maximum 10% increment in Gross Wages which vary due to length of service and performance against each worker w.e.f. 01.07.2014.

Wages Structure

•Basic.....55% of Gross Wages

•House Rent.....30% of Basic

•Utility Allowance.....20% of Basic

•Conveyance.....variable

•Cost of Living Allowance.....Fixed

•Special Allowance.....Fixed

•Punctuality Allowance.....Fixed

•Attendance AllowanceFixed

4.6 ANNUAL INCREMENT

The company agrees that all permanent workers shall be given Annual Increase 6% for year 2014-15 & 5% for the year 2015-16. This amount is other than above mentioned increase.

4.7 PERFORMANCE INCREMENT

The company agrees that permanent workers shall be given Performance Increase 1% to 8% for year 2014-15 & 1% to 7% for the year 2015-16 depending on the performance evaluation throughout the year. If the performance of any worker is 1% or below continually for two years the company will reserves the right to terminate the employment of the worker as per Section 15 of (Standing Order) Ordinance, 1968.

4.8 CANTEEN SUBSIDY

The company agrees to pay an adhoc relief towards workers’ canteen expenses @ Rs. 60,000/- (Rs. Sixty thousand only) except or the month of Ramadan-ul-Mubarak.

4.9 FUNERAL EXPENSES

The company accepts to pay consolidated amount of Rs. 35,000/- (Rs. Thirty five thousand only) to the heir/widow of a deceased permanent employee who dies whilst in the service of the company.

4.10 WINTER ALLOWANCE

A winter allowance of Rs. 800/- (Rs. Eight hundred only) per year will be paid to the all permanent workers.

4.11 OVERTIME ON GROSS

It has been mutually agreed that owing to conflicting interpretation on calculating overtime payment now finally agreed that overtime payment shall from the date of the agreement be calculated and paid on gross wages. The C.B.A or individual worker shall not claim or agitate the previous calculation and payment in any manner, whatsoever. The overtime payment will be paid accordance to Factories Act, 1934.

4.12 LEAVE ENCASHMENT ON GROSS

The Management agrees to pay Leave encashment on gross wages.

4.13 NIGHT SHIFT ALLOWANCE

Company has increased Night Shift Allowance and has decided to pay Rs. 75/- per night per head to all those workers who will be working only in night shift. All those workers who are performing overtime, night shift allowance shall not be paid to them.

4.14 DISABILITY ALLOWANCE

Disability Allowance is completely depending on the personal discretion of the Management. If, any worker meets with an accident inside or outside the factory premises the company reserve the right to compensate or not his medical expenses and leaves. It is not only based on the genuineness of injury or disablement but also the worker’s loyalty and dedication toward his job.

4.15 RETIREMENT

It is also agreed that the Prize Bonds or cash equivalent having value of Rs. 75,000/- (Rs. Seventy five thousand only) shall be given to the employee at the time of his retirement if he has served continuously 20 years or more with the company and Rs. 50,000/- (Rs. Fifty thousand only) shall be given to the employee at the time of his retirement if he served continuously 15 years or more.

4.16 LONG SERVICE AWARDS

Company agrees to continue Long Service Awards to the senior workers on the completion of 35, 25 and 15 Years’ service in recognition of their long association with the company.

Company has increased the prize money from Rs. 30,000/- to Rs. 35,000/- for those who have served the company continuously more than 35 years and from Rs. 22,500/- to 27,500/- for those who have served with the company continuously more than 25 years and from Rs. 15,000/- to Rs. 20,000/- for those who have served with the company continuously more than 15 years. These amount would be applicable for the two years of 2012-13 & 2013-14. These amount of all three categories would be increased by Rs. 5,000/- per person for the year 2014-15 & 2016.

4.17 MEAL ALLOWANCE

Company has increased Meal Allowance and has decided to pay Rs. 80/- per day per head to all those workers who will be working on Sunday. If the strength of workers will be more than fifty (50), company will arrange meal for all workers and Meal Allowance will not be paid.

4.18 UNIFORM

Company accepts and continues to provide uniform including two sets uniform (pant/shirt) one pair Safety Shoes and tea cup on yearly basis.

4.19 TENURE

This agreement is valid for two fiscal years i.e. 01.07.2014 to 30.06.2016.

4.20 REGULATION

The C.B.A agrees and accepts that above benefits have been given by the Company keeping in view the rise in cost of living. If as a relief due to rise in the cost of living, any benefits, increase or allowance that are given during the operative period of this agreement by the Federal or Provincial Government under the Employee’s Cost of Living (Relief) Act, 1974 or the Sindh Employees Special Allowance (Payment) Act, 1986 or any other law, rules or notification will hereby be deemed as having been granted in terms of the provision of this settlement.

It is further agreed that any benefits, increase or allowances announced by the Government (Federal or Provincial) the workers shall not be entitled to such benefits under the provision of this agreement and the same shall cease to apply.

The C.B.A further agrees that during the validity of this agreement & in consideration of the benefits and increases given as per this agreement, the C.B.A shall not raise or pursue directly or indirectly any further or fresh demands whatsoever, having any financial or non-financial implication on the Company.

It is also agreed that benefits as per previous settlements shall remain enforced except those which have been modified, altered under this settlement.

The parties agree that this agreement will be effective and binding on both parties from 01-07-2014 till 30-06-2016.

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Memorandum of Settlement between Adamjee Engineering (Private) Limited and Adamjee Engineering Works Employees Union - 2014

Start date: → 2014-07-01
End date: → 2016-06-30
Ratified by: → Other
Ratified on: → 2014-07-01
Name industry: → Manufacturing
Name industry: → Manufacture of machinery and equipment
Public/private sector: → In the private sector
Concluded by:
Name company: →  Adamjee Engineering (Private) 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: → 
Employer-provided childcare facilities: → 
Employer-subsidized childcare facilities: → 
Monetary tuition/subsidy for children's education: → 

WAGES

Wages determined by means of pay scales: → No
Provision that minimum wages set by the government have to be respected: → Yes
Agreed lowest wage per: → Months
Lowest wage: → PKR 12000.0
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → 6.0 %

Once only extra payment

Once only extra payment due to company performance: → Yes
Once only extra payment takes place: → 2017-09

Premium for evening or night work

Premium for evening or night work: → PKR  per month
Premium for night work only: → No

Extra payment for annual leave

Premium for overtime work

Allowance for commuting work

Allowance for seniority

Allowance for seniority: → PKR 20000.0 per month
Allowance for seniority after: → 15 years of service

Meal vouchers

Meal allowances provided: → Yes
→ 80.0 per meal
Free legal assistance: → No
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