MEMORANDUM OF SETTLEMENT BETWEEN HELIX PHARMA PVT LTD AND HELIX PHARMA (PVT) LTD EMPLOYEES UNION - 2014

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FORM-W (RULE – 69)

NAME OF PARTIES;

1. M/S, Helix Pharma (Pvt. Ltd., A/56, S.I.T.E. Karachi (Employer)

2. Helix Pharma (Pvt.) Ltd. Employees Union, C/o, A/56, S.I.T.E. Karachi – (C.B.A.)

REPRESENTING EMPLOYERS:

1. Mr. Athar Noman Khan - (C.O.O.)

2. Mr. Qaiser Jamal - (Director Finance)

3.Dr. Obaid Siddiqui - (G.M. Quality Operations)

4. Mr. Tanweer Ahmad - (Sr. Manager HR & Admn.)

5. Mr. Mohammad Amir Khan - (Sr. Manager Accounts)

REPRESENTING WORKERS (C.B.A.)

1. Mr. Imran Aziz - (President)

2. Mr. Hayatuddin - (Sir. Vice President)

3. Ms. Rashida Rehman - (Vice President)

4. Mr. Bakht Zamin Khan - (General Secretary)

5. Mr. Farhad Ali - (Sr. Joint Secretary)

6. Mr. Mohammad Raza - (Joint Secretary)

7. Mr. Mohammad Hassan - (Finance Secretary)

8. Mr. Rasheed Khan - (Press / Propaganda Secretary)

SHORT RECITAL OF THE CASE:

This settlement is arrived on this 2nd day of June, 2014 at Karachi between M/s Helix Pharma (Pvt.) Ltd. (herein after called “ COMPANY” and Helix Pharma (Pvt.) Ltd. Employees Union (herein after called “ THE C.B.A. UNION”), which expression wherever applicable for the purpose of this settlement shall include and mean their successors assigns.

Whereas the said CBA Union through its General Secretary Submitted a charter of demands dated January 01, 2014, U/S. 35(1) of SIRA 2013. While the management has also severed a Notice of demand under section 35(1), SIRA 2013, simultaneously to the CBA Union vide letter dated 01. 01. 2014. Various meetings for bilateral negotiations were held between the parties but due to adamant attitude of CBA office bearers, no settlement could be arrived at between the parties and the General secretary, CBA Union issued a Notice of Strike dated 28.01.2014 under section 35(3) SIRA, 2013 to the management, while thee management has also issued a Notice of Lock out dated 03.02.2014 under section 35(3) SIRA, 2013 to the General Secretary CBA Union with copies endorsed to Area Conciliator and others were after, several conciliation meeting were held before the Area Conciliator and demands raised by the CBA Union and the management were discussed at length. Lastly a joint meeting of parties in presence of Area Conciliator was held on 27.05.2014 and the CBA Union realizing the present situation have mutually agreed and in consequences whereof the following settlement has been arrived between the parties being full and final settlement of the afore-mentioned demands raised by the CBA Union as well as by the management in their afore-said charter of demands and the settlement has been concluded between the parties which as follows.

TERMS OF SETTLEMENT

1. SALARY / WAGES:

Taking into consideration the present inflation which has been increased considerably and as pointed out by the CBA, the management has agreed to grant an increase of Rs. 2900/- per month on the basis that 50% of the said increase will be credited in the basic salary/wages while the remaining balance of 50% of present increase will be adjusted in other allowances with effect from 01.01.2014 to all permanent Workmen who were on the payroll of the company on 1st January, 2014 and who have completed 12 months continuous service on the said date as workmen and are still in the employment of the company on the date of signing of this Settlement.

2. ANNUAL INCREMENT:

The Management has agreed to enhance the existing rate of Annual increment from 10% to 11% according to the following schedule. Applicability and calculation of such increment will be subject to completion of 12 months of continuous confirmed service as on the date of increment as mentioned below:

YEAR RATE OF INCREMENT
W.E.F. 1st July, 2014 11%
W.E.F. 1st July, 2015 11%

3. ATTENDANCE / PUNCTUALITY ALLOWANCE

a) Attendance / Punctuality Allowance has been increased from Rs. 600/- to Rs. 700/- (Seven hundred only) per month.

b) A total grace time of 5 minutes per day will be allowed to all workers.

c) If any worker is late for more than 5 minutes grace time, for 5 days during a month, then one half-day leave / wages will be deducted. Such worker will not be eligible for Attendance / Punctuality Allowance during that particular month.

d) Worker availing more than one sick leave or casual leave (One half-day additional leave in case of extreme eme4rgency) in a month will disqualify himself/ herself for Attendance / Punctuality allowance during that particular month.

e) Worker reporting late for more than one hour after duty time will not be allowed to perform duty for that day.

f) Relaxation may be given in case of public strike any natural calamity or any untoward situation in the city at the sole discretion of the management. However, habitual late comers will not be eligible for any relaxation.

4. EMERGENCY RELIEF

The Management has agreed to revise Emergency Relief from Rs. 15,000/- (Fifteen Thousand Only) to Rs. 25,000/- (Twenty Five Thousand Only) which will be given to the legal heirs of deceased workman who has died while in the employment of the company. However, it shall not be treated as precedent in future.

5. APPRECIATION REWARD

A workman who has full attendance in a year and does not avail any leave during the financial year will be given an Appreciation Letter apart from cash reward which has been increased from Rs. 1500/- (Fifteen hundred only) to Rs. 2,000/- (Two thousand only)

6. GRATUITY

The Management has agreed that if any worker having 22 years or more service, retires, resigns or his services are terminated by the employer other than for misconduct will be paid Gratuity of 43 days (30 days on gross and 13 days on basic plus COLAs)

The quantum of payment of gratuity will be according to the following schedule:

NO. OF YEARS IN CONTINUOUS SERVICE GRATUITY APPLICABLE
Up to 10 years 30 days
From 11 – 21 years

36 days (30 days on gross & 6 days on Basic + COLAs)

22 years and above 43 days (30 days on gross & 13 days on Basic + COLAs)

7. PROFIT BONUSES

The management has agreed to pay annual Bonuses for the year ended 30th June 2014 and 30th June 2015, in the event of profit only in accordance with the following schedule/formula:-

a)One and half Bonus on gross wages on financial year closing salary will be paid during the 4th week of Shaban.

b)Bonus under Standing Orders 10-C of the Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 equal to one month’s gross wages & half month gross wages / salary on financial year closing salary as bonus will be paid during early 1st week of Zil-hajj.

NOTE: Due to situation arises during the month of June, 2014, when the company has to pay bonus as mentioned at Sr. No. (a) above during the fourth week of Shaban while the financial year shall be completed on 30.06.2014, when the holy month of Ramzan shall be commenced, the matter has been discussed between the parties and it has been amicably settled that the afore-said bonus mentioned at (a) may be distributed amongst the workers as advance in anticipation of declaring profit and in case the company sustains financial loss, such amount of bonus would be recovered in easy installments from the monthly salary of workers.

8 – Health Insurance through Insurance Company.

It has been agreed by the management that all eligible workers including their family members (spouse & children) shall be insured for health insurance viz hospitalization with any insurance company of Pakistan for which the eligible workers shall supply authentic documentary proof of their spouse and children viz. Registration form issued by NADRA and in absence whereof no claim in this regard shall be entertained.

9- Umrah

It has been agreed by the management that only one worker shall be selected through balloting to perform Umrah for a period of 07 days in each financial year in the event of profit for which the company shall bear such expenses while the worker concerned should provide his passport and other required antecedents to fill-up the requisite formalities. However, selection of tour operators shall be the sole discretion of the management.

10- SET OFF

a)Since the increase in wages and other allowances has been given and increase in attendance allowance has been allowed due to rise in cost of living and present inflation, therefore, in the event of any indexation of wages and any other allowance such as Special Allowance / Additional Special Allowance or any other payment including that of Cost of Living Allowance that may be introduced / granted / awarded whether by Federal / Provincial Government and / or any Competent Authority in future by way of Legislation, Ordinance, Directive or Order etc. or in any other manner whatsoever, the MONETARY BENEFITS ALLOWED UNDER THIS SETTLMENT SHALL BE SET – OFF.

b) Any raise / increment allowed by the management in the past due to any consideration or any settlement including the present increase being allowed under this settlement shall not be quoted as practice or precedence in future.

c) Financial benefits / increase given in Terms 1 & 2 above under this settlement will be applicable / calculated for the purpose of salary / wages. Overtime payment, gratuity, bonus and leaves only.

d) That the existing facilities which are enjoyed by the workmen before this settlement will continue to be enjoyed unless altered, modified by this settlement.

11. MAINTAINING OF DISCIPLINE AND PRODUCTIVITY OF THE FACTORY

a. It has been agreed that the CBA Union shall exercise its influence upon workers in extending full co-operation to the company for maintaining discipline in the Factory.

b. CBA Union will also exercise its influence upon workers in curtailment of late coming, absenteeism and loss of time by the workers on false and frivolous pretext and shall co-operate to increase the productivity and efficiency amongst the workers.

c. The CBA Union has further agreed to maintain industrial peace and harmony in the factory and shall not give any cause of complaint to the management for loss of time and they shall maintain discipline amongst the workers.

d. The CBA Union further undertakes not to resort to Go-slow, illegal strike or damage to any machinery or property of the factory and to assist the management in controlling theft and further assure to support the management and curtailment of production due to any cause whatsoever.

e. The CBA Union shall not interfere in the acts of Administration vis-à-vis transfer of workers and in the matters of disciplinary cases etc. against the workers in any manner whatsoever and they should maintain discipline and avoid creating any unrest amongst the workers on any pretext.

f. The CBA Union will also exercise its influence in curtailment of short leaves and the same should be restricted only in unavoidable circumstances.

12. SETTLEMENT CONCLUSIVE

a.It has been agreed that this settlement is full & final in respect of all demands raised by the said CBA Union as well as by the management vide their Charters of Demand dated 01st January, 2014 respectively, which followed with Notice of Strike dated 28. 01. 2014 and Notice of Lock-out dated 03.02.2014 and nothing remains to be settled between the parties in any manner whatsoever.

b.Any move in respect of the said demands raised by the Union as well as by the management or which could have been raised and such of the demands that are not raised are covered by the said settlement and shall be deemed to have been given up by the CBA Union and shall not raise any demand financial or otherwise during the currency period of this settlement and they shall abide by the terms of the present settlement in letter and spirit.

13. TENURE OF SETTLEMENT

That aforesaid Settlement shall come in to operation w.e.f. 1st January, 2014 and shall be binding on both the parties, their heirs, successors or assigns and or any other Union herein after so determined as CBA for a period of at least 2 years i.e., up to 31st December, 2015 and shall continue to be binding for a period even thereafter unless terminated by any of the party bound by the terms of the said Settlement. It has been further decided that the next demands will be effective from 1st January, 2016.

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Memorandum of Settlement between Helix Pharma Ltd and Helix Pharma Ltd Employees Union - 2014

Start date: → 2014-01-01
End date: → 2015-12-31
Ratified by: → Other
Ratified on: → 2014-05-02
Name industry: → Manufacturing
Name industry: → Manufacture of basic pharmaceutical products and pharmaceutical preparations
Public/private sector: → In the private sector
Concluded by:
Name company: →  Helix Pharma Ltd
Names trade unions: →  Helix Pharma Ltd. Employees Union

WAGES

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

Wage increase

Wage increase: → 11.0 %
Wage increase starts: → 2014-07

Once only extra payment

Once only extra payment due to company performance: → Yes

Allowance for seniority

Allowance for seniority after: → 10 years of service

Meal vouchers

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