MEMORANDUM OF SETTLEMENT BETWEEN BATA PAKISTAN LTD AND PAKISTAN BATA EMPLOYEES UNION - 2014

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This Memorandum of Settlement is made by direct negotiations between the Management of Bata Pakistan Ltd. P.O Batapur, District Lahore (hereinafter called the “Company”) and the workers of Bata Pakistan Ltd. P.O Batapur, District Lahore, represented by Pakistan Bata Employees Union (Regd.) C.B.A (hereinafter called the “Collective Bargaining Agent/C.B.A”) duly certified as Collective Bargaining Agent by the National Industrial Relations Commission, Government of Pakistan, Islamabad.

The following persons represented the Company and the C.B.A respectively.

1.Company, Bata Pakistan Ltd. P.O Batapur, District Lahore

Represented by (Messer)

1. Muhammad Rashid

2. Amjad Farooq

3. Tanveer-ul-Hassan

4. Iftikhar Bashir Dar

5. Rana Muhammad Ahmed

6. Hammad Raza Awan

7. Sheikh Muhammad Awan

8. Maqbool Ahmed

9. Naeem Saad Malik

10. Syed Asad Ali Zaidi

11. Raja Nauman Ullah Khan

12. Aziez Ahmed Hani

13. Rizwan Ahmed Shah

14. Sharafat Hussain

2. C.B.A, Pakistan Bata Employees

Union (Regd.) C.B.A, P.O Batapur, District Lahore

Represented by (Messer)

1. Malik Saif-ur-Rehman

2. Nadir Hussain

3. Nazir Ahmed

4. Jamat Ali

5. Zulifqar Ali Tarar

6. Tauqeer Hussain

7. Mian Muhammad Tahir

8. Ghulam Hussain

9. Muhammad Latif

10. Karam Hussain Shah

Whereas, Pakistan Bata Employees Union (Regd.) C.B.A P.O Batapur, District Lahore, the Collective Bargaining Agent through the Assistant General Secretary, vide letter dated 14th April, 2014, served a Charter of Demands to the Company for settlement.

Whereas, in order to negotiate and to arrive at an amicable settlement, the Management arranged several meetings with the representatives of the C.B.A. All the demands, as given in the Charter of Demands were discussed at a greater length and after negotiations, in full and final, a mutual Settlement is arrived at, between the parties (the Management and the C.B.A). The terms thereof are as follows:

Demand No. 1

i. To arrange a (well qualified) religious head for Batapur Mosque as the present head has been retired.

Settlement

The demand was discussed and it was agreed that the decision will be taken as per the Company’s policy.

ii. The amount for the Christian community should be increased by 100%.

Settlement

The C.B.A agreed to drop this demand.

iii. To decide Good Friday leave for Christian community.

Settlement

The demand was discussed in greater length and it was decided that the Management will abide by the laws in this connection.

Demand No. 2

i. Weekly salary may be increased by 25%.

Settlement

In view of the rise the cost of living, it was mutually agreed to increase the basic wages of piece-rate workers Grade 1 to 10 by 15% during the 1st year and 15% during the 2nd year of Agreement.

ii. Hourly fix salary to be increased by 30%.

Settlement

The Management agreed to increase the wages as under:

a) Holy Fixed Staff

1st Year.....5 increments[As per

2nd Year.....5 incrementsexisting rates]

iii. To increase the Quarterly Bonus from 28% to 45%. Production Bonus should also be increased by 30% and it should be separated from the salary.

Settlement

The demand was not agreed upon by the Management.

iv. To increase the Night Allowance from 22% to 50%.

Settlement

The demand was discussed but was not agreed upon by the Management.

v. Bonus of fixed staff may be increased.

Settlement

The Management did not agree to this demand.

Demand No. 3

To increase the value of Annual Free Shoes Card at least by Rs. 1,000/- (Rs. One thousand only) and it should be same for Factory and Sales staff. Otherwise one pair of free shoe should be given on Eid.

Settlement

It was agreed to increase the value of Annual Free Shoes Card from Rs. 499/- to Rs. 599/- for the employees of the factory as well as Sales staff.

Demand No. 4

In case of death of an on-duty employee, his son or brother should be employed by the Company and the same should be offered for the employee who becomes medically unfit.

Settlement

The Management explained to the C.B.A that the decision of recruitment for any position/vacancies is the prerogative of the Management and any step taken in this regard involves the overall present and future strategy of the Company and the actual requirement of manpower. It is therefore not possible to accept this demand. Hence, the company will continue its present recruitment policy.

Demand No. 5

To provide either free electricity to the Colony residents or they should be granted free electricity units.

Settlement

The Management informed the C.B.A that in the present circumstances it is not possible to extend further subsidy to workers on the residential electricity bills as the Management is already bearing a huge amount in this connection, hence the demand is not acceptable.

Demand No. 6

To recognize piece-rated and hourly-fixed staff working on regular operations.

Settlement

The demand was discussed and the C.B.A was told that the Management is already binding by the labour laws in this respect.

Demand No. 7 (GENERAL)

i. Upper sewing should be done inside the factory instead of outstanding.

Settlement

The C.B.A was told that it is prerogative of the Management to use the economic means for such matters. Hence, the demand was not agreed upon by the Management.

ii. Night Allowance may be increased.

Settlement

It was discussed and agreed between the Management and the C.B.A to drop this demand.

iii. Incentive rate of Godown Shoe Packers may be increased.

Settlement

The C.B.A agreed to drop this demand.

iv. Quality Checkers and Packers should also be given Plan Booking Incentive.

Settlement

The demand was discussed and the Management agreed to increase the incentives of Quality Checkers and Manipulates as under:

Category.................Present.................New

Quality Checkers...Rs. 45 per week...Rs. 50 per week

Manipulates.....Rs. 2.80 per plan....Rs. 3.10 per plan

v. To start 10 years’ Long Service Award

Settlement

The Management did not accept this demand.

vi.To increase the cash amount of 15 & 20 years’ Long Service Award

Settlement

It was agreed to increase the payment of Long Service Awards as under:

Service...Present Rate...New Rate

15 years...Rs. 2,400...Rs. 2,700

20 years...Rs. 2,700...Rs. 3,000

vii. To approve 21” TC or an LCD instead of 14” TV on retirement.

Settlement

The demand was discussed but was not agreed upon by the Management.

viii. TA/DA should be increased for Transport Department.

ix. All allowances should be increased by 10% keeping in view the rise in prices.

x. Meal Allowance of Drivers and Cleaners may be doubted.

xi. To increase Mileage Allowance of Drivers and Cleaners.

Settlement

The above four demands were discussed in detail and the Management agreed to increase the Mileage, Meal and Night Allowances as below:

Drivers’ Mileage Allowance ...from Rs. 15 to Rs. 18 per 100 km

Cleaners’ Mileage Allowance...from Rs. 11.50 to Rs. 13.50 per 100 km

Drivers’ & Cleaners’ Meal Allowance...from Rs. 100 to Rs. 150 per day

Drivers’ Night Allowance...from Rs. 50 to Rs. 60 per night

Cleaners’ Night Allowance...from Rs. 50 to Rs. 60 per night

xii. At the time of opening of a new Bata shop, presence of Union representatives should be a must.

Settlement

The Management did not agree to this demand.

xiii. Incentive should be given in 654 department.

Settlement

The demand was not accepted by the Management.

Demand No. 8 (SALES STAFF)

i. To recruit Matriculates in the Sales staff.

Settlement

The C.B.A was told that priority is given to the available candidates having higher education whereas lower. Hence, it is not advisable to recruit candidates with less education.

ii. Rs. 1,000 (Rs. One thousand only) should be fixed as weekly salary and the same should be increased by 10% on yearly basis.

Settlement

The Management is agreed to increase the wages of Sales staff as under:

(a) Retail Salesmen Grade III, II & I

1st Year 2nd Year
10 increments - House Allowance

- Conveyance Allowance

Rs. 30 per week

Rs. 30 per week

(b) Wholesale Salesmen and Stock Keepers

1st Year 2nd Year
10 increments - House Allowance

- Conveyance Allowance

Rs. 30 per week

Rs. 30 per week

iii. Grade II & III Salesmen should be promoted to Grade I & II respectively.

Settlement

The above demand was discussed at greater length and the Management agreed that between 50 to 55 Salesmen from Grade-III to II and 6 to 10 Salesmen from Grade-II to I will be promoted on merit during two years of this Agreement.

iv. Overtime should be given in case of increase in price, campaign or a visit.

Settlement

The Management told the C.B.A that the Company is already making payment of overtime as per law.

v. Weekly holiday should be divided by 6 days instead of 7 days.

Settlement

The C.B.A was told that the Management is abiding by the law in this connection and the present practice will continue.

vi. Instead of leave-in-lieu, overtime should be given in case of working on holiday.

Settlement

The Management did not accept this demand.

vii. Fixed salary should not be reduced in case of promotion.

Settlement

The C.B.A was told that the salary of Salesmen mainly depends on commission hence commission automatically increases in case of their promotion. Hence, the Management did not agree to this demand.

viii. Sale of temporary Salesmen may in any case not be deducted more than 10%.

Settlement

The Management did not agree to this demand.

ix. Promotion Policy for Sales staff should be made.

Settlement

The C.B.A was informed that the Promotion Policy for Sales staff already exists and promotions are made accordingly.

x. Request of U/T Manager to designate them as Salesmen may be accepted (if they apply so).

Settlement

The demand was not agreed upon by the Management.

xi. Manager of the Month Award should also be given to Salesmen besides Managers.

Settlement

Discussed and agreed between the Management and the C.B.A to drop this demand.

xii. Every Salesmen should get minimum sale of Rs. 30,000 to Rs. 35,000 per day.

Settlement

The C A agreed to drop this demand.

xiii. Shop and Depot timings should be fixed and overtime may be paid in case of additional working.

Settlement

The C.B.A was informed that the Management is already binding by the laws in this connection.

xiv. Commission of Wholesale Salesmen and Stock Keeper may be separated.

Settlement

The demand was discussed but was not agreed upon by the Management.

xv. Wholesale commission may be increased.

Settlement

The Management did not agreed to this demand.

xvi. Re-packing rate for Wholesale Packer may be increased from Rs. 0.50 to Rs. 5.00

Settlement

The demand was not accepted by the Management.

xvii. Wholesale TA/DA may be increased.

Settlement

The demand was not agreed upon by the Management.

xviii. Eidi for Wholesale should be from Rs. 2,000 to Rs. 5,000.

Settlement

The demand was discussed in detail and the Management agreed to increase the Eid Bonus once a year as below:

- Salesmen (Wholesale)from Rs. 3,500 to Rs. 4,000

- Stock Keepers of Depotsfrom Rs. 3,000 to Rs. 3,500

xix. No shop should be run without permanent Salesman.

Settlement

It was discussed and agreed between the Management and the C.B.A to drop this demand.

xx. Average should be divided by grand-total instead of sub-total.

Settlement

The C.B.A agreed to drop this demand.

xxi. Loading/Unloading Allowance may be given at every shop.

Settlement

The Management did not accept this demand.

Demand No. 9

To re-instate 15-20 employees discharged due to forced Retirement Scheme Flats may be constructed in Maraka Brank Factory.

Settlement

The demand was discussed but was not agreed upon by the Management.

OTHER TERMS AND CONDITIONS

1. It is mutually agreed that the C.B.A/Union, the workers and the Sales staff shall put in every effort to maintain estimated production & sale with high quality merchandize, cooperate with the Management in smooth running of the factory, shops & depots and to generally improve the quality, discipline, efficiency and introduction of new processes in production. The demands not agreed or accepted by the Management have been deemed to be waived off by the C.B.A and the C.B.A undertakes not to raise them before any forum, whatsoever, before and after the expiry of this Memorandum of Settlement.

2. The C.B.A/Union assured that all its members will cooperate with the Management in improving the efficiency and productivity of the Company and shall abide by all labour laws enforced from time to time and the rules and regulations of the Company.

3. It is agreed that in case of any dispute or grievances pertaining to SPMs, the normal grievance procedure will be followed up, as per the law.

4. It is assured that the timings for opening and closing of retail stores in various areas, where Bata shops are situated shall observed as per the Company’s policy.

5. It is mutually agreed that the attendance plus timing schedules shall be strictly observed and the movements of the employees would be checked and it is assured by the C.B.A/Union that no such violations shall be committed by the workers.

6. The C.B.A/Union agreed to the necessity of reducing the factory-seconds and fully assured the Management to extend their fullest cooperation in this regard.

7. The C.B.A/Union further agreed that it will support the measures and actions to be taken by the Management for the reduction of factory-seconds.

8. The C.B.A/Union agreed to cooperate to the full extent in minimizing the average payments being made to workmen in the factories at the time of change of construction from close to open and vice versa.

9. The C.B.A/Union agreed and realized without any doubt that it is the prerogative of the Management to decide and fix the rates for all operations.

10. A committee of two members from each side shall be formed to re-study all such cases of loose rates and will place its recommendations to the Managing Director for appropriate changes, whose decision shall be final.

11. It is agreed that the C.B.A and the workers would not raise any Industrial dispute in any Court pertaining to these demands and would not file any Industrial dispute petition, under the provision of Industrial Relations Ordinance, on the ground of changed circumstances during the currency of this settlement.

12. It is agreed that no further increase in the Wages/Allowances will be made or asked for until the Government by legislation enhances the Wages/Allowances agreed upon by this Settlement and the enhancement supersedes or is more than the Wages/Allowances agreed upon by this Settlement. The Wages/Allowances paid under this Settlement shall be set off against any increase in wages and/or Special Allowance(s) of any kind of whatever called, announced by the Government through Gazette Notification, if any.

13. It is agreed that the arrears for the benefits agreed upon under Settlement shall be paid w.e.f. 9th of March, 2014.

14. This Memorandum of Settlement and all its clauses shall remain in force for two years w.e.f. 23rd of June, 2014 to 22nd of June, 2016 during which period, Pakistan Bata Employees Union (Regd.) C.B.A, P.O Batapur, District Lahore, workers and the Sales staff shall not raise any further demand(s) in any form(s) whatsoever. The C.B.A/Union shall be bound by the commitments and obligations on their part as mentioned in this Memorandum of Settlement and the Rules & Regulations of Bata Pakistan Ltd. enforced from time to time and shall remain peaceful at all times and will maintain discipline as well as smooth working conditions as per the policy of the Company. This Memorandum of Settlement supersedes all previous settlements.

In full acceptance and recording their agreement to the above Terms of Settlement, the representatives of the parties have signed their names below on this 23rd day of June, 2014.

*****

Memorandum of Settlement between Bata Pakistan Ltd and Pakistan Bata Employees Union - 2014

Start date: → 2014-06-23
End date: → 2016-06-22
Ratified by: → Other
Ratified on: → 2014-06-23
Name industry: → Manufacturing
Name industry: → Manufacture of leather and related products
Public/private sector: → In the private sector
Concluded by:
Name company: →  Bata Pakistan Ltd 
Names trade unions: → 

WAGES

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

Wage increase

Wage increase: → 15.0 %

Once only extra payment

Once only extra payment: → 30 %
Once only extra payment due to company performance: → Yes

Premium for evening or night work

Premium for evening or night work: → 50 % of basic wage
Premium for night work only: → Yes

Allowance for seniority

Allowance for seniority: → PKR 2700.0 per month
Allowance for seniority after: → 15 years of service

Meal vouchers

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