MEMORANDUM OF SETTLEMENT BETWEEN GHANDHARA NISSAN LIMITED AND GHANDHARA NISSAN LIMITED WORKERS UNION - 2011

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FORM X

July 1, 2011 ending June 30, 2013.

(Under Section 2 (xxv) and Section 42 (2) of

Sindh Industrial Relations (Revival & Amendment) Act 2010 read with Rule 70

Of the Industrial Relations (Sindh) Rules 1973)

NAME OF THE PARTIES

1. Ghandhara Nissan Limited, a Company incorporated in Pakistan having its Registered Office at 109/2, Clifton, Karachi and Factories/Plants at Plot Survey No. 36, DehKhanto, KDA Scheme No. 25-A, Port Bin Qasim Road, Karachi and Plot Survey No. 362 & 112, Port Bin Qasim Road, Karachi hereinafter called as the “COMPANY” (which expression wherever the context so admits shall include and mean their successors and assigns).

AND

2. Ghandhara Nissan Limited Workers Union, a Union officially and legally registered with

Registration No. 5978 dated 26th June 1989 and certified by the Registrar of Trade Unions, Govt. of Sindh as CBA having its Registered Office at D-112/3, Gulistan Colony (Old Charagh Colony), Quaidabad, Landhi, Karachi, hereinafter called the CBA “UNION” (which expression wherever the context so admits shall include and mean its successors, assigns, replacements and all present and future permanent workmen employed or to be employed by the Company on its Factory’s payroll)

Representing the Employer

1. Mr. AltafHussain - Executive Director (Plant Ops)

2. Mr. Mohammad Younus - Sr. General Manager (P&A)

3. Mr. M. Rafiq Patel - General Manager (Plants)

4. Mr. Amir Hamid - Sr. Manager (P&A)

5. Mr. Pervaiz Arab - Sr. Manager (IR&P)

Representing the Employees

1. Mr. Mohammad Mairaj Khan - President

2. Malik SherZaman - Vice President

3. Mr. Mohammad Rasheed - General Secretary

4. Mr. Jehanzeb Khan - Finance Secretary

5. Mr. FidaHussain Shah - Propaganda Secretary

6. Mr. Sakhi Mohammad - Member, Managing Committee

SHORT RECITAL OF THE CASE

WHEREAS the Ghandhara Nissan Limited Workers Union, functioning as a Collective Bargaining Agent of the workmen employed by the Company served a notice under Section 42 (2) of the Sindh Industrial Relations (Revival & Amendment) Act, 2010 dated July 1, 2011 (a true copy attached hereto as Annexure “A”) along with a Charter of Demands (true copy attached herewith as Annexure “B”) raising demands with a view to reach a new collective bargained settlement;

AND WHEREAS pursuant to the said Charter of Demands an industrial dispute having arisen, the Company and the Union entered into bilateral negotiations under Section 42 (2) of the Sindh Industrial Relations (Revival & Amendment Act, 2010 and discussions which commenced in July 2011 and thereafter various meetings were held upto the signing of this settlement;

AND WHEREAS in the process of negotiations and collective bargaining, the Company and the union have arrived at an agreement contained hereinafter representing full and final settlement of all the demands directly or indirectly specified in the Charter of Demands, or proposals and requests otherwise raised from time to time during the course of negotiations between the Company and the CBA verbally or in writing leading upto the signing of this agreement;

AND WHEREAS, as a result of the said collective bargaining and negotiations, the CBA and the Company have reached the following settlement which includes clauses hereunder for enhancement in pay and other allowances to meet the rise in the cost of living, to further improve the standard of living and to increase the daily production. The Settlement covers all the demands and claims of the CBA contained in the Charter of Demands in full and final Settlement.

NOW THEREFORE THIS SETTLEMENT WITNESSETH AS UNDER:

TERMS OF SETTLEMENT

1. INCREASE IN BASIC WAGE

It is agreed that all permanent workers on the payroll of the Company covered under this Settlement will receive a flat increase of Rs. 1,000/- (Rupees One thousand only) effective July 1, 2011 in their basic monthly wage, (basic wage inclusive of all statutory allowances / payments payable under the related statute.

2. HOUSE RENT ALLOWANCE

It is agreed that subject to existing practice and terms and conditions pertaining to the House Rent Allowance, all permanent workers will receive a one-time flat increase of Rs. 500/- (Rupees Five hundred only) per month in their House Rent Allowance with effect from July 1, 2011.

3. CONVEYANCE ALLOWANCE

It is agreed that subject to existing practice, terms and conditions pertaining to the Conveyance Allowance, all permanent workers will receive a one-time flat increase of Rs. 500/- (Rupees Five hundred only) per month in their Conveyance Allowance with effect from July 1, 2011.

4. WASHING ALLOWANCE

It is agreed that all permanent workers will receive a one-time flat increase of Rs. 200/- (Rupees Two hundred only) per month in their Washing Allowance with effect from July 1, 2011.

The main purpose of giving washing allowance is that each and every permanent worker will wear neat and clean uniform during duty hours. CBA office bearers will ensure that every permanent worker during duty hours will wear neat and clean uniform i.e. shirt, trousers, shoes, cap, jersey etc. etc.

Management will take strict disciplinary action against those who will not be in proper working uniform in tidy condition during working hours.

5. UNIFORM MAINTENANCE ALLOWANCE

It is agreed that all permanent workers will receive a one-time flat increase of Rs. 150/- (Rupees One hundred fifty only) per month in their Uniform Maintenance Allowance with effect from July 1, 2011.

6. MEDICAL ALLOWANCE

It is agreed that subject to existing practice, terms and conditions pertaining to the Medical Allowance, all permanent workers will receive a one-time flat increase of Rs. 150/- (Rupees One hundred fifty only) per month in their Medical Allowance with effect from July 1, 2011.

7. UTILITIES ALLOWANCE

It is agreed that all permanent workers will receive a one-time flat increase of Rs. 300/- (Rupees Three hundred only) per month in their Utilities Allowance with effect from July 1, 2011.

8. DAILY ATTENDANCE ALLOWANCE

It is agreed that Rs. 44/- (Rupees Forty-four only) per month @ Rs. 2/- (Rupees Two only) per actual attendance will be increased in the Daily Attendance Allowance of all permanent workers. After this increase, the Daily Attendance Allowance will become Rs. 34/- (Rupees Thirty-four) per actual attendance with effect from July 1, 2011.

Daily Attendance Allowance, which is paid on the basis of actual attendance, will not be deducted when a worker will be on prior approved privilege leave henceforth.

9. SHIFT & TECHNICAL ALLOWANCE

It is agreed that Rs. 156/- (Rupees One hundred fifty six only) per month will be increased in Shift & Technical Allowance for all permanent shift works with effect from July 1, 2011. This allowance will not become a part of wages for the purpose of over time or for any other purpose.

10. LEAVE FARE ASSISTANCE

It is agreed that all permanent workers on the payroll of the company will be paid Leave Fare Assistance at the lumpsum rate of Rs. 2,300/- (Rupees Two thousand three hundred only) instead of Rs. 2,100/- (Rupees Two thousand one hundred only) once a year, subject to utilization of at least 12 consecutive days annual privilege leave with effect from July 1, 2011.

11. LUNCH TO PERMANENT WORKERS

It is agreed that with effect from the date of signing of this agreement, the Company will provide the same lunch which is cooked for Management staff at Plant to permanent workers present at the time of lunch. Every permanent worker who will purchase the lunch will pay Rs. 1/- as token money to the Canteen Contractor. One nominee of CBA will also be included in the Canteen Committee.

12. CANTEEN MEAL SUBSIDY

The existing Canteen Meal Subsidy of Rs. 25/- (Rupees Twenty five only) per day at Truck Plant and Rs. 22/- (Rupees Twenty two only) per day at Car Plant will continued to be paid and will not be linked with actual attendance of worker and will be paid for fixed 22 days, i.e. Rs. 550/- per month at Truck Plant and Rs. 484/- per month at Car Plant.

13. UNION OFFICE RENT

It is agreed that the Company will pay Rs. 3,000/- (Rupees Three thousand only) per month instead of Rs. 2,500/- (Rupees Two thousand five hundred only) per month to CBA on account of Union Office Rent with effect from July 1, 2011.

14. RECREATION GRANT

The company will pay a fixed amount of Rs. 40,000/- (Rupees Forty thousand only) per year instead of Rs. 35,000/- (Rupees Thirty five thousand only) per year as Recreation Grant to CBA Union for recreation purpose with effect from July 1, 2011. The CBA Union will be directly responsible for utilizing this grant and the company will, in no way, be involved in the administration of the grant. In addition, the Company will provide two buses free of cost to CBA Union for picnic of one day once a year.

15. DATES (KHAJOOR) & ONE BOTTLE OF SHARBAT IN THE HOLY MONTH OF RAMADAN

It is agreed that in the month of Holy Ramadan, the Company would provide 2kgs Dates (Khajoor) and one bottle of Sharbat (RoohAfza – standard size bottle) to all permanent workers on the payroll of the company on the date of signing of this agreement. The cost of these 2 items would not exceed Rs. 350/- (Rupees three hundred and fifty only) instead of Rs. 170/- agreed in the Memorandum of Settlement for the period July 2005 to June 2007.

16. JACKET

The Company provides one Jacket every alternate year to all permanent workers under Memorandum of Settlement 2003-05.

It is agreed that the cost involved for jacket would be increased to Rs. 850/- (Rupees Eight hundred fifty only) instead of Rs. 500/- (Rupees Five hundred only) per Jacket.

17. EID ADVANCE AS EIDI (NON-REFUNDABLE)

The Company provides an Eid Advance of Rs. 1,000/- (One Thousand only) each to all permanent workers on the occasion of Eid-ul-Fitr, which is presently deducted from the wages of the workers in three equal montly installments. It is now agreed that with effect from forthcoming Eid-ur-Fitr, this amount of Eid advance of Rs. 1,000/- (One Thousand only) will be paid to all permanent workers on the payroll of the company, and treated as Eidi (Non-refundable) on the occasion of Eid-ul-Fitr, after signing of the agreement.

18. HOSPITALIZATION FACILITY THROUGH MEDICAL INSURANCE COVER

It is agreed that all permanent workers will be provided hospitalization facility through medical insurance cover for self, one spouse and children upto the age of 24 years (for boy) and for girl till the time she remains unmarried. The annual hospitalization limit will be Rs. 50,000/- (Rupees Fity thousand only) instead of Rs. 40,000/- (Rupees Forty thousand only) at present. This facility will be provided with effect from the date of signing of the agreement.

19. IFTARI TO ROTATING SHIFT WORKERS

It is agreed that the Company will provide Iftari to all those permanent workers who perform their duty in rotating shifts and are on the duty at the time of Iftari during Ramazan with effect from forthcoming month of Ramazan. The cost of Iftari will be upto maximum of Rs. 100/- (Rupees One hundred only) per iftari, instead of Rs. 40/- at present.

20. FUNERAL EXPENSES

It is agreed that the in case of death of a worker, the Company will bear expenses for transportation of dead body to his native town along with one person by paying a total amount of Rs. 25,000/- (Rupees Twenty-five thousand only) out of which Rs. 20,000/- (Rupees Twenty thousand only) will be transportation charges, while Rs. 5,000/- (Rupees Five thousand only) will traveling expenses for the accompanying person for returning back to Karachi, either by train or by road, with special five days leave with pay.

21. EX-GRATIA PAYMENT

It is agreed that the Company will pay Ex-Gratia, equivalent to 30 days basic wage plus admissible Colas, under this agreement for the financial year 2011-12 and 2012-13, subject to profitability in the said financial years. This Ex-Gratia payment will not be treated as terms of employment or allowance for any purpose in future.

22. FINALITY

a) It is agreed that this settlement is full and final settlement of all disputes, demands and claims of the Union / Workmen contained in the Charter of Demands dated July 1, 2011

or otherwise mentioned above.

b) It is agreed that monetary increase in basic wage, house rent allowance, conveyance allowance, conveyance allowance, washing allowance, uniform maintenance allowance, medical allowance, utilities allowance, daily attendance allowance, shift & technical allowance, leave fare assistance, lunch to permanent workers, canteen meal subsidy, union office rent, recreation grant, dates &sharbat, Jacket, Eid advance as Eidi (non-refundable), hospitalization facility through medical cover, Iftari to rotating shift workers, funeral expenses and ex-gratia payment have been granted to meet rise in the cost of living during and /or for the period covered by this settlement and therefore if the Federal Government and/or the Provincial Government grant any monetary increases or grant any allowance which is intended to meet rise in the cost of living during and/or for the period of this settlement, then monetary increases granted under this settlement shall be set-off and/or adjusted against any monetary increases granted or may be granted by the Federal/Provincial Government, subject to the manner as may be specified by the Government in the statute or ordinance.

c) It is agreed that the benefits given hereinabove are also subject to that during the tenure of this settlement, the Union shall improve productivity, quality, efficiency, discipline and attendance of the workmen and shall keep and promote industrial peace and harmony and shall fully cooperate with the Company in its effort to increase efficiency and productivity and to achieve quality and economy. The Union assures their full support and cooperation to meet qualitative and quantitative production norms and standards as laid down by the Company from time to time. The Union also undertakes to cooperate with the Management in the productivity and efficiency improvement schemes as and when introduced.

d) The Union and the Company agree to maintain industrial peace and abide by this settlement under the law for the operative period of this settlement and even thereafter. It is further agreed that in consideration of the benefits and increase given as per this settlement that the Union will not raise or pursue directly or indirectly any demands covered by this settlement or the said Charter of Demands and/or any other demand whatsoever involving financial implications upon the Company, or otherwise during the period of this settlement.

e) All facilities and conditions of service existing as on the date of signing of this settlement and also those not altered or modified by this settlement will continue to remain unchanged.

23. SCOPE

It is agreed that all the increase and benefits provided under this settlement will be applicable to all permanent workers employed in the company who are on the permanent payroll as on the date of signing of this settlement.

24. DURATION OF THE SETTLEMENT

It is agreed that this settlement will remain in force and binding upon the parties for a period of two years commencing July 1, 2011 ending June 30, 2013.

IN WITNESS WHEREOF, the parties aforesaid have signed hereunder this 16th day of May 2012.

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Memorandum of Settlement between Ghandhara Nissan Limited and Ghandhara Nissan Limited Workers Union - 2011

Start date: → 2011-07-01
End date: → 2013-06-30
Ratified by: → Other
Ratified on: → 2012-05-16
Name industry: → Manufacturing
Name industry: → Manufacture of motor vehicles, trailers and semi-trailers
Public/private sector: → In the private sector
Concluded by:
Name company: →  Ghandhara Nissan Limited
Names trade unions: →  Ghandhara Nissan Limited Workers Union

WAGES

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

Wage increase

Wage increase: → PKR 1000.0
Wage increase starts: → 2011-07

Once only extra payment

Once only extra payment: → PKR 1000.0 %
Once only extra payment due to company performance: → Yes

Extra payment for annual leave

Extra payment for annual leave: → PKR 2300.0

Allowance for commuting work

Allowance for commuting work: → PKR 500.0 per month

Meal vouchers

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