MEMORANDUM OF SETTLEMENT BETWEEN ARCHROMA PAKISTAN LIMITED AND ARCHROMA (PAK) EMPLOYEES UNION - 2014

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Form ‘X’ (Rule 70)

NAME OF THE PARTIES

1. ARCHROMA PAKISTAN LIMITED (Formerly Claraint Pakistan Limited), Petaro Road, Jamshoro having its registered office at 1-A/1, Sector 20, Korangi Industrial Area, Karachi hereinafter called the ‘MANAGEMENT” which expression wherever the context so admits shall include and mean their successors and assigns.

2. ARCHROMA (PAK) EMPLOYEES UNION, Petaro Road Jamshoro, a registered Trade Union (Registered No. H/R 1102/1478,96), as a Collective Bargaining Agent hereinafter called ‘UNION’ which expression wherever the context so admits shall mean its successors and assigns representing the permanent workmen employed at the Factory of Archroma Pakistan Limited, Petaro Road, Jamshoro.

MANAGEMENT REPRESENTATIVES:

1. MR. Mujtaba Rahim - (CEO & Country President)

2. Mr. Veqar Arif - (Chief Financial Officer)

3. Mr. Ali Gul - (Site Manager)

4. Mr. Naveed Kamil - (Head of HR)

5. Mr. M. Haroon - (Planniing Manager)

6. Mr. Mir Murad Ali Talpur - Manager Admin & HR

7. Mr. Ahsan Ahmed Siddiqui - Head of QA/QC

UNION REPRESENTATIVES:

1. Mr. Rahim Dino Baloch - (President)

2. Mr. Nazimuddin Solangi - (General Secretary)

3. Mr. Khalil Ahmed - (Vice President)

4. Mr. Muhammad Saleem Abbasi - (Joint Secretary)

5. Mr. Muhammad Nadeem - (Finance Secretary)

6. Mr. Zakir Hussain - (Office Secretary)

7. Mr. Muhammad Rasool Khan - (Propaganda Secretary)

SHORT RECITAL OF THE CASE:

WHEREAS, on the expiry of the Collective Bargaining Agreement dated 30.04.2014 the UNION under its Notice dated 30th April 2014 submitted a Charter of Demands under Section 35 (1) of the Industrial Relations Act 2013 Sindh (Revival & Amended) raising an industrial dispute upon the Management, the copy of Charter of Demands is attached herewith and marked Annexure “A” with a view to arrive at a new collectively bargained settlement.

AND WHEREAS, pursuant to the said Notices the representatives of the MANAGEMENT and the UNION held bilateral discussions and negotiation on the said Charters of Demands and other requests and proposals made during the course of negotiation in order to reach an amicable settlement through the process of collective bargaining.

AND WHEREAS, as a result of bilateral discussions and negotiations their final meeting on 20.06.2014 both the parties have arrived at a Collectively Bargained Settlement taking into consideration the rise in cost of living and all the demands and claims of the UNION and contained in the said Charter of Demands and other claims / demands for negotiations and discussions in the course of collective bargaining in full and final settlement as on the date of signing of this AGREEMENT.

NOW, THEREFORE, THIS AGREEMENT WITNESSES AS UNDER:

TERMS OF AGREEMENT:

1. BASIC SALARY

It is agreed that all permanent workmen (Selection Grade to Grade ‘E’) who are on Company’s payroll on the date of signing of this AGREEMENT would each be given an increase of Rs. 2.925/= per month in Basic Salary with effect from 1st May 2014 thereby increasing the Basic Salary accordingly per month.

2. HOUSE RENT ALLOWANCE

It is agreed that all permanent workmen (Selection Grade to Grade ‘E’) who are on Company’s payroll on the date of signing of this AGREEMENT would each be given an increase of Rs. 1,350/= per month in House Rent Allowance with effect from 1st May 2014 thereby raising the House Rent Allowance accordingly per month. The essential staff living in houses provided by the Company will also be entitled to this benefit.

3. UTILITY ALLOWANCE;

It is agreed that all the permanent workmen (Selection Grade to Grade ‘E’) who are on Company’s payroll on the date of signing of this AGREEMENT would be given an increase of Rs. 225/= per month in Utility Allowance with effect from 1st May, 2014 thereby raising the Utility Allowance accordingly.

4. RECREATION ALLOWANCE

It is agreed that with effect from 1st May 2014, the Recreation Allowance for all permanent workmen (Selection Grade to Grade ‘E’) who are on Company’s payroll on the date of signing of this AGREEMENT will be Rs. 20,760/= per annum on the following terms and condition:

a) Recreation Allowance will be paid to all the eligible permanent workmen on Eid-ul-Fitr each year.

b) This allowance will not be accumulated.

c) Recreation Allowance will not be paid in advance or in installments.

5. FAMILY MEDICAL ALLOWANCE:

It is agreed that with effect from 1st May 2014 the Family Medical Allowance is granted to all permanent workmen (Selection to Grade ‘E’) who are on Company’s payroll on the date of signing of this AGREEMENT. This allowance will be Rs. 9,060/= per annum for treatment of their immediate family members and will be paid on Eid-ul-Fitr.

6. CONVEYANCE ALLOWANCE

a) It is agreed that only those workmen who are living at Mubarik colony, Matiari, Phuleli, Hussainabad, Pucca Qila, Hala Naka , Tando Alayar, Kohisar & Gulshan-e-Zeal Pak Colony would be given an increase from Rs. 500/= to Rs. 550/= as Conveyance Allowance per month with effect from 1st May, 2014 for coming to pick-up /drop points. This will be in addition to prevailing facility of Company’s transport.

b) It is agreed that those workmen who are not using the company’s transport and the residing at Jamshoro Colony, LMC University and nearby villages would be given in increase in Conveyance Allowance from Rs. 400/= to Rs. 430/= per month with effect from 1st May, 2014.

c) It is agreed that in the absence of Company’s transport facilities the rate of rickshaw fare allowance in lieu thereof would be as follows with effect from date of signing this Agreement.

i) For those residing in Latifabad - Rs. 220/=

ii) For those residing in Hyderabad - Rs. 220/=

iii) For those residing in KotriRs. 170/=

iv) For those residing in Jamshoro Colony, Petrol Pump near Rs. 120/=

Railway Crossing Jamshoro and Chakar Khan Village

v) Qasimabad Bhittai Town - Rs. 220/=

7. SHIFT ALLOWANCE

It is agreed that only those permanent workmen who are required to work other than General Shift would be entitled to Shift Allowance as follows, with effect from the date of signing of this AGREEMENT.

i) Night shift - Rs. 200/= per shift

ii) All other shifts (other than General Shift) - Rs. 170/= per shift

8. FACILITIES DURING THE HOLY MONTH OF RAMAZAN

a) It is agreed that the Milk Allowance will increase from Rs. 35/= to Rs. 45/= per day per worker for all Muslim workmen.

b) It is agreed that the Tea Allowance for non-Muslim workmen will be increased from Rs. 450/= to Rs. 500/= per month.

9. MEAL ALLOWANCE

It is agreed that with effect from the date of signing of the AGREEMENT the Meal Allowance will be increased from Rs. 150/- to 170/- per meal for permanent workmen only. All other terms and conditions will remain the same

10. PICNIC

It is agreed that the Company will contribute towards workmen’s picnic a sum of Rs. 175000/= per year with effect from the year 2014 for the picnic to be organized for all the permanent workmen of the factory by the UNION.

11. UNIFORMS

a) JERSEY

It is agreed that permanent workmen who are at present entitled for jerseys will be provided once in a year a Jersey costing Rs. 1,700/= each during winter at the discretion of the MANAGEMENT. This will be effective from the year 2014.

b) SHOES

It is agreed that effective from the date of this AGREEMENT the cost of Shoes Slip will be issued twice in a year as under

Selection Grade = From Rs. 1,700/- per shoe slip

Grade ‘A’ to ‘E’ = From Rs. 1,300/- per shoe slip

12. LIVING AND TOUR ALLOWANCE

It is agreed that when a workmen is officially required to go on tour away from the Jamshoro factory, the following rates of traveling according to the grades will be paid with effect from the date of signing of this AGREEMENT.

Grade when a night Stopover is Daily Allowance Conveyance (per day) Traveling (by Rail)
Selection Rs. 290/= Rs. 240/= Rs. 250/= 1st Class
A to D Rs. 240/= Rs. 220/= Rs. 240/= 2nd Class
E Rs. 220/= Rs. 200/= Rs. 240/= 2nd Class

NOTE: Traveling Allowance for up and down journey to Karachi for all the workman is actual A.C. bus / van fare.

14. MARRIAGE LOAN

It is agreed that a marriage loan of Rs. 140.000/= will be granted to any four permanent workers in a year, once in a service period on the following terms and condition.

a) A worker must have completed 10 years of continuous service.

b) This loan will be granted on marriage of daughter / sister / son / or in case of self only in case of first marriage.

c) The loan will be recoverable in 5 years.

15. HOUSE BUILDING CONSTRUCTION / PURCHASE LOAN:

It is agreed that interest free loan of Rs. 150,000/= will be granted to 5 permanent worker once in a service period on the following terms and condition.

a) A worker must have completed 15 years of continuous service.

b) This loan is repayable in 60 Installment. In case of retirement / resignation or termination of service, the entire loan amount will be recovered in lump-sum from the final settlement of the employee.

c) This loan should be used only for the purchase / construction of a house / Flat. The ownership of the property should be in the name of worker or his spouse.

16. ANNUAL INCREMENT

It is agreed that with effect from 1st January 2015, the Annual Increment will be based on percentage of the basic salary and will be as follows:

a) 4% if absenteeism during the year is in excess of 3 Advance leaves.

NOTE:Once in three years 10 advance leaves are allowed when considering the absenteeism.

b) 8% & 9% depending on the performance to be decided by the management.

c) Annual Increment for the workers will be made at the same time as when the Salary Review for Executives takes place.

17. BONUS

It is agreed that with effect from 1st May 2014, amount paid as bonuses other than 10C will no longer be paid and will now be merged into the salary as per defined proportion in:

i) Basic Salary

ii) House Rent

iii) Utility Allowance

18. GENERAL

a) The UNION hereby agrees that in consideration of the benefits given to all permanent workmen by the MANAGEMENT under this AGREEMENT, all remaining demands appearing in Annexures ‘A’ and other claims raised during negotiation which have been dropped and/or withdrawn by the UNION and shall be deemed to have been settled to the UNION’S full satisfaction by this AGREEMENT.

d) It is agreed that the existing terms and conditions of service shall continue to remain the same except as altered/amended/modified by this AGREEMENT.

e) It is agreed that clauses/terms of this agreement will be applicable and binding on all the permanent workers at Jamshoro Plant at the time of execution of this settlement.

19. DURATION OF SETTLEMENT

It is agreed by the MANAGEMENT as well as the UNION that this AGREEMENT shall remain in force and binding upon both the parties for a period of two years commencing from 1st May 2014 and ending on 30th April, 2016

20. COST OF LIVING ALLOWANCE

It is mutually agreed that the increase in wages, various allowances and other benefits given under this AGREEMENT take into account rise in the cost of living including all COLA(s) announced between 1st May 2014 to 30th April 2016 under Employees Cost of Living (Relief Act – 1973) or any other Act, Ordinance, Order issued / to be issued by the Federal, Provincial or Local Government providing relief on account of actual or expected rise in the cost of living have been included. Consequently, it is further agreed upon that no increase whatsoever in wages, various allowances and other benefits etc. shall be considered till 30th April 2016 and this Collectively Bargained Settlement shall, therefore, be treated as final.

21. FINALITY CLAUSE

a) This AGREEMENT is in full and final settlement of and demands raised by the UNION in their Charter of Demands, attached as Annexure ‘A’ Accordingly, all the demands, whether they appear in their original or modified form or do not appear at all because of having been withdrawn by the UNION and shall be deemed to have been fully settled to the UNION’s full satisfaction by this AGREEMENT.

b) The UNION undertakes and agrees that, during the period this AGREEMENT is in force and effective, it shall not raise and/or submit any demand of any nature covered by this AGREEMENT or otherwise nor shall it (the UNION) raise or submit any fresh and /or further demand in any form/nature that shall have any direct or indirect financial impact or other implication on the Company’s operations during the currently of this AGREEMENT.

c) The UNION further undertakes to maintain industrial peace and to increase the level of production and to cooperate with the MANAGEMENT in improving discipline, productivity and efficiency and particularly when based on mechanical improvement or new techniques as and when these are implemented.

IN WITNESS WHEREOF, the parties hereto have set their hands on this 20.06.2014.

SIGNATURES OF THE PARTIES

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Memorandum of Settlement between Archroma Pakistan Limited and Archroma (Pak) Employees Union - 2014

Start date: → 2014-05-01
End date: → 2016-04-30
Ratified by: → Other
Ratified on: → 2014-06-20
Name industry: → Manufacturing
Name industry: → Manufacture of chemicals and chemical products
Public/private sector: → In the private sector
Concluded by:
Name company: →  Archroma Pakistan Limited
Names trade unions: →  Archroma (Pak) Employees Union

WAGES

Wages determined by means of pay scales: → No
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → 8.0 %
Wage increase starts: → 2014-05

Once only extra payment

Once only extra payment due to company performance: → No

Premium for evening or night work

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

Allowance for commuting work

Allowance for commuting work: → PKR 550.0 per month

Meal vouchers

Meal allowances provided: → Yes
→ 170.0 per meal
Free legal assistance: → No
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