MEMORANDUM OF SETTLEMENT BETWEEN ATLAS BATTERY LIMITED AND THE ATLAS GROUP OF COMPANIES WORKERS’ UNION - 2015

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UNDER THE PROVISION OF I.R.A 2013 (SINDH)

NAME OF PARTIES

1. Messrs. Atlas Battery Limited

D-181, Central Avenue, S.I.T.E, Karachi – 29

2. The Atlas Group of Companies Workers’ Union

Atlas Battery Limited

D-181, Central Avenue S.I.T.E., Karachi – 75730

REPRESENTING EMPLOYERS:

1. MR. NEHAL ASGHAR - GENERAL MANAGER PLANT

2. MR. AHMAR WAHEED - HEAD OF HUMAN RESOURCE

3. MR. YOUSUF ALI - MANAGER ACCOUNTS

4. MR. MUHAMMAD AYAZ

MANAGER ADMN & IND. RELATION

REPRESENTING WORKERS

1. MR. MAQBOOL KHAN - PRESIDENT

2. MR. MUHAMMAD RIAZ ABBASI - GENERAL SECRETARY

3. MR. SHER NABI KHAN - VICE PRESIDENT

4. MR. ABDUL SATTAR - MEMBER MANAGING COMMITTEE

SHORT RECITAL OF THE CASE

The Atlas Group of Companies Workers Union (hereinafter) referred to as the Collective Bargaining Agent i.e. C.B.A) served Atlas Battery Ltd. S.I.T.E. Karachi-28 (hereinafter referred to as “Company”) a Charter of Demands dated 1st January, 2015 under Section 35(1) of IRA 2013 (Sindh). Copy of the same attached hereto and is marked Annexure-A. The Company also submitted Charter of Demand dated 1st January, 2015 to the C.B.A under Section 35(1) & (2) of the Industrial Relations Act 2013 (Sindh). Copy of the same is attached hereto and marked Annexure-B.

The Collective Bargaining Agent and the Company mutually extended the bilateral negotiations. During the course of these proceedings various meetings were held between the parties on the Charter of Demands and taking in view the recurring rises in the cost of living, the following settlement has been reached in full and final settlement of all the demands contained in Annexure-A and B.

TERMS OF AGREEMENT

That w.e.f. 1st January, 2015 the basic salary and emoluments of the permanent workmen who are in the employment of the company on the date of execution of this agreement will be increased as follows:

a) Basic Rs. 450 per worker per month.

b) House Rent Rs. 3155 per worker per month.

c) Conveyance Allowance Rs. 3155 per worker per month.

d) Atlas Allowance Rs. 900 per worker per month.

e) Attendance Allowance Rs. 345 per worker per month.

f) Recreation Allowance Rs. 200 per worker per month.

g) Shoes subsidy Rs. 200 per worker per year.

h) There is no change in Canteen subsidy. All other conditions will remain the same as contained in Clause 18 of the agreement dated 24th March, 1981.

i) That the Company has agreed to increase the existing rate of gratuity by 2 (two) days basic wages last (drawn) making a total of 10 days, all those permanent workmen who are in the employment of the Company on the date of execution of this completion of 15 year continuous service, however, in case of resignation eligibility period for gratuity will be 20 years continuous service.

j) BONUS

i) That the Management has agreed to give 9(nine) months average basic wages for the year 2015 as Bonus and one month basic plus cost of living allowance will be paid as a bonus for the year ending 31st December, 2015 to all permanent workmen who will complete one year continuous service of 31st December, 2015.

ii) That the Management has agreed to give 9(nine) months average basic wages for the year 2016 as Bonus and one month basic plus cost of living will be paid as a Bonus for the year ending 31st December, 2016 to all permanent workmen who will complete one year continuous service on 31st December, 2016.

iii) That the Bonus to be paid for the years 2015 and 2016 as agreed above shall include and discharge the Company’s liability under Standing Order 10-C of the West Pakistan Industrial and Commercial Employment (Standing Order) Ordinance, 1968 and no profit Bonus in case of profit, will be payable to workmen in addition to the above agreed Bonus.

iv) For the purpose of calculating monthly average basic wage/salary, the total basic wage/salary earned in the respective year will be taken into consideration.

v) That the C.B.A/workmen have agreed not to raise any further demand in respect of Bonus either under Standing Order 10-C or any other manner what-so-ever for the years ending 2015 and 2016.

vi)That the Bonus for the year 2015 shall be payable by 31st March, 2016 while the Bonus for the year 2016 will be payable by 31st March, 2017.

GENERAL

a) The C.B.A agrees to increase the existing level of production w.e.f. 01.01.2015. The shop-wise details indicating the production of components etc. as agreed by the C.B.A is attached as per Annexure-C.

b) That the C.B.A having accepted the position that the regulation/fixation of shift timings is the Management’s exclusive right. All other condition will remain same as contained in agreement 2005.

c) That the C.B.A agrees that no Union activities shall be carried out during working hours save and except as permitted under the law.

d) That the C.B.A has further that the standard, quality, quantum and rate of the production will be maintained at all times, whether in normal working hours and or during overtime.

e) The C.B.A also agrees to maintain the same rate of production per hour during overtime as during the normal shift.

f) The C.B.A also agrees that it shall co-operate with Management.

i) To improve productivity as advised from time to time.

ii) To reduce cost as advised from time to time.

iii) To reduce scrap/wastage as advised from time to time.

iv) To up-keep the machines as advised from time to time.

v) To co-operate in punctuality of time.

It is mutually agreed and undertaken by the Union that the Union/workers shall observe all the rules of the Company, co-operate with the Management of the Company in helping in maintenance of discipline among the workers and industrial peace in the establishment and to ensure to achieve the budgeted planned production for the financial years 2015-16 and 2016-17.

1. FINALITY OF DEMAND

In consideration of the benefits allowed under this Agreement the Union agrees and undertakes that it will not raise, during the operation of this settlement, any demand or industrial dispute involving financial implications directly or indirectly or otherwise for the Company as the case may be.

2. FINALITY OF AGREEMENT

Subject to what has been agreed above it has further been agreed that all other demands contained in the Charter of Demands Annexure-A will be deemed to have been dropped and/or withdrawn by the Union as having finally settled and will not be raised again in any from what-so-ever.

3. DUPLICATION OF BENEFITS

The rights and benefits herein agreed to and given are in modification of the corresponding rights and benefits, conferred if any, under any settlement or laws and nothing herein shall be construed as entitling the workers to claim dual benefits.

4. TERMS AND CONDITIONS OF EMPLOYMENT

The existing terms and conditions of employment shall continue, except to the extent modified in this Agreement.

This agreement will be applicable to the workers employed at KARACHI establishment only.

5. EFFECTIVE DATE OF AGREEMENT

This settlement becomes effective and comes into operation w.e.f. 1st January, 2015 and shall be binding and remain in force up to 31st December, 2016.

IN WITNESS WHEREOF the parties have signed this Agreement of the 22nd January, 2015.

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Memorandum of Settlement between Atlas Battery Limited and the Atlas Group of Companies Workers’ Union - 2015

Start date: → 2015-01-01
End date: → 2016-12-31
Ratified by: → Other
Ratified on: → 2015-01-22
Name industry: → Manufacturing
Name industry: → Manufacture of electrical equipment
Public/private sector: → In the private sector
Concluded by:
Name company: →  Atlas Battery Limited
Names trade unions: → 

WAGES

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

Wage increase

Wage increase: → PKR 450.0
Wage increase starts: → 2015-01

Once only extra payment

Once only extra payment due to company performance: → No

Allowance for commuting work

Allowance for commuting work: → PKR 3155.0 per month

Meal vouchers

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