MEMORANDUM OF SETTLEMENT BETWEEN KARAM CERAMICS LTD AND KARAM CERAMICS LTD EMPLOYEES UNION - 2015

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UNDER SECTION 42(2) OF INDUSTRIAL RELATIONS ACT, 2012

A meeting was held on 02-01-2015 between the Management and C.B.A/CBU to negotiate/ settle the Charter of Demands for the period from January 01, 2015 to December 31st, 2016.

NAME OF PARTIES

M/s Karam Ceramics Ltd. having its Factory at 295/311 Deh Halkani, Manghopir, Karachi, hereinafter called as the Company which expression, wherever the context so admits or permits shall, mean and include its succession and assigns.

AND

Karam Ceramics Ltd. Employees Union (Collective Bargaining Agent) and CBU for Sindh and Punjab Provinces, having its office at plot no. 295/311 Deh Halkani, Hub Dam Road, Manghopir, Karachi hereinafter called as the Union which expression wherever the context so admits or permits shall mean and include its successors, assigns replacement and all eligible workers employed permanently by the company to its regular payroll.

REPRESENTING EMPLOYERS

Mr. Irshad Ali S. Kassim.....Vice Chairman

Mr. Munawar Ali S. Kassim.....Chief Executive

Mr. Robert.....Notified Factory Manager

Mr. Aftab Ahmed.....Sales Manager

REPRESENTING WORKERS

Mr. Mir Alam.....President

Mr. Sean Samson.....General Secretary

Mr. Rehmat Karim.....Joint Secretary

Mr. Amin JanataliOffice Secretary

Mr. Akhtar Mehmood.....Propaganda Secretary/ Information Secretary

Rana M. Sajjad.....Propaganda Secretary/ Finance Secretary

Mr. Rehman Ziarat Gul.....Member Managing Committee

Mr. Saqib Ali.....Member Managing Committee

SHORT RECITAL OF THE CASE

Whereas the C.B.A under its covering letter dated 31st December, 2014 submitted a Charter of Demands to the Company under section 42(2) of I.R.A, 2012.

Whereas the parties hereto held series of meetings in this behalf and discussed the said charter of demands and other matter of mutual interest including company’s financial and market condition.

AND

Whereas after series of bilateral negotiations held in between the representatives of the company and office bearers of the Collective Bargaining Agent /CBU over the issues of demands, taking into consideration in the rise of cost of living, Company’s financial position, market conditions and other matter of mutual interest the Union and the company have reached at the following full and final settlement of all demands and claims as contained in the charters of demands dated 31st December, 2014.

RE: UNION’S CHARTER OF DEMANDS

DEMAND NO. 1: HAJJ

It is mutually agreed that the Company will bear the cost/ expenses in respect of three permanent workers every year for the Hajj and one worker for Umrah for every year by air (economy class which cost/expenses will include fare, boarding and lodging as per government Hajj policy). This facility shall only be claimed and availed by the workers who have already completed all travel formalities, obtained government permission as prescribed by government/competent authority Hajj/Umrah shall not be eligible to avail this facility.

DEMAND NO. 2: BASIC PAY

It is mutually agreed that effective from 1st January, 2015 the Company will allow one-time flat increase of Rs. 600/- (Rupees Six Hundred only) in the basic pay of its every permanent worker who will be on the Company’s regular payroll on the date of signing of this agreement.

DEMAND NO. 3: ALLOWANCES

It is mutually agreed that in the following allowances one-time flat increase will be allowed effective from 1st January, 2015 to every entitled permanent worker who will be on Company regular payroll on the date of signing of this agreement.

House Rent Allowance Rs. 420/-
Attendance Allowance Rs. 30/-
Washing Allowance Rs. 60/-
Gur Allowance Rs. 60/-
Heat Allowance Rs. 30/-
TOTAL Rs. 600/-

DEMAND NO. 4: BONUS

BONUS FOR THE SETTLEMENT PERIOD

The permanent workers who will be on Company’s regular payroll at the time of distribution will be entitled to the following bonuses subject to earning of net profit by the company and on achieving of target fixed by the Management. In case of losses the company shall not be liable to pay any bonus. In case of entitlement of bonuses only the permanent workers who will be on the company’s regular payroll at the time of distribution will be paid such bonuses as under:

• One bonus equivalent to 30 days of basic salary plus House rent and cost of living allowance of the permanent worker may be paid in the month of May, 2015.

• One bonus equivalent to 45 days of basic salary plus House rent and cost of living allowance of the permanent worker may be paid in the month of July, 2015 (Eid ul Fitr).

• One bonus equivalent to 30 days of basic salary plus House rent and cost of living allowance of the permanent worker may be paid in the month of September, 2015 (Eid ul Azha).

• One bonus equivalent to 30 days of basic salary plus House rent and cost of living allowance of the permanent worker may be paid in the month of May, 2016.

• One bonus equivalent to 45 days of basic salary plus House rent and cost of living allowance of the permanent worker may be paid in the month of July, 2016 (Eid ul Fitr).

• One bonus equivalent to 30 days of basic salary plus House rent and cost of living allowance of the permanent worker may be paid in the month of September, 2016 (subject to appearance of Eid ul Azha Moon).

It is mutually agreed and clearly understood between the parties hereto that the aforesaid bonuses shall be inclusive of the bonus payable understanding order 10-c of the West Pakistan Industrial & Commercial Employment (Standing Order) Ordinance, 1968 and the amount mentioned and accordingly the Company shall be absolutely and fully absolved of any liability under the standing order referred to herein above for the settlement period or on any ground whatsoever.

DEMAND NO. 5: UNIFORM

It is mutually agreed that the Company will give two sets of uniform of average quality (maximum cost Rs. 400/- each) (Shalwar Kameez or Pant Shirt) to every permanent worker who will be on Company’s regular payroll on the signing date of this agreement. Uniform for the year 2015 will be provided in 2016 to its permanent workers who will be on Company’s regular payroll on the day of distribution of uniform in this behalf. It is also mutually agreed that when workers wil be in the factory for work they must be in uniform.

DEMAND NO. 6: SHOES

It is mutually agreed that the Company will provide once in a year one pair of shoes, on the sole discretion of the Management, to its every permanent worker who will be on Company’s regular payroll at the time of distribution. The shoes for the year 2015 will be given in 2016 (Maximum cost of the shoes that will borne by the company would be Rs. 400/- per pair).

DEMAND NO. 7: EID-E-MILAD-UN-NABI (S.A)

It is mutually agreed that the Company will pay the amount of Eid-e-Milad-un-Nabi (S.A) from existing Rs. 100,000/- (Rupees one hundred thousand only) per annum.

DEMAND NO. 8: OPERATION PERIOD OF SETTLEMENT

It is mutually agreed that the operation period of this agreement shall be from 1st January, 2015 to 31st December, 2016 and the settlement date shall be binding on both the parties hereto, their successors, assigns, replacement, nominees and representatives including workers of the factory. It is mutually agreed that all the benefits and provision as contained in this settlement shall be paid effective from the date of signing of the settlement or as mentioned against each.

DEMAND NO. 9: PRODUCTION

It is mutually agreed that subject to the benefits so agreed in settling the demand rose by the C.B.A/CBU Union the workers will increase target production of Tiles in Glost as follows from the date of signing of this agreement.

6500 m2 of 8x8 tiles (working days 30 per month)

6500 m2 of 8x12 tiles (working days 30 per month)

6500 m2 of 10x13 tiles and all sizes.

It is further agreed that the production in the factory will be a continuous process twenty-four hours, with no shift change over breakdown. Shift change-over will take place inside the factory in their effective department.

It is also further agreed that in the interest of production, the C.B.A/CBU union assured that the CBU/C.B.A Union and Workers will cooperate with the management to produce quality products, minimum 90% Prime and Standard quality.

Other Production Targets:

65 cars from Kiln per day

65 cars from Glaze line per day

6500 m2 per day from press

6500 m2 per day from Biscuit Kiln

It is also mutually agreed the Glaze, Engobes etc. for the increased production target and incentive also.

It is mutually agreed that department will work to achieve the increased production. Likewise, all other departments shall also increase the existing production proportionately.

It is mutually agreed Tiles Ware House workers will deliver first one vehicle without over time.

It is also mutually agreed that increase in Basic Wages as per Demand No. 2 and other Allowances as per Demand No. 3, of the Charter of Demand and production targets, (attendance) allowance will be subject to Production Target as set above. In case production is decreased below target, the workers will get benefits accordingly and their Basic Pay and other allowances as well as production target will be decreased in proportionate with decrease in production.

DEMAND NO. 10: CATEEEN

Canteen rates to be increased as per list attached.

GENERAL

The Union has given assurance to cooperate with the management to minimize overtime in the factory in order to reduce cost of production.

It is mutually agreed that the workers going of factory will obtain written permission from head of department or manager and will also deliver attendance card in gate office.

The Union of behalf of worker hereby undertake to give full cooperation and support to the Company/ Management for maintaining industrial peace and discipline and achieving increase in production & improvement in quality, the union shall ensure that all the workers including union office bearers shall attend to their duties whole heartedly and shall at their respective work place and perform work/duty during the working hours so as to maximize production and improve the quality of the production. All the Union activity i.e. meeting/ discussions be carried out after duty hours. The Company / Management on its part also undertakes to continue to give its full cooperation/ support to the growth of healthy trade unionism in the company within the limits of law.

It is mutually agreed that the Union will cooperate with Management so that the canteen hours be strictly observed and any worker found sitting in canteen in off hours will be dealt with according to law.

The Company/ Management will also consider job application of the legal heir of the deceased worker for employment provided he attains the age of 18 years and suitable for the job available.

It is mutually agreed that this agreed is in full and final settlement of all the demands and claims up to date including Union Charter of Demands. The existing facilities and obligations as mentioned in earlier settlement & not improved/ modified herein will continue and shall be binding on both the parties hereto.

The C.B.A Union and Workers hereby undertake not to raise or pursue the operations period of this settlement any demand including special increment having financial implications or otherwise directly or indirectly on the Company up to 30th June, 2015.

It is mutually agreed that all other demands contained in the said charter of demands date 31/12/2014 and not specifically mentioned in this agreed shall be treated as withdrawn and dropped.

*****

Memorandum of Settlement between Karam Ceramics Ltd and Karam Ceramics Ltd Employees Union - 2015

Start date: → 2015-01-01
End date: → 2016-12-31
Ratified by: → Other
Ratified on: → 2014-12-31
Name industry: → Manufacturing
Name industry: → Manufacture of bricks, tiles, glass, ceramic goods, and alike
Public/private sector: → In the private sector
Concluded by:
Name company: →  Karam Ceramics Ltd
Names trade unions: → 

WAGES

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

Wage increase

Wage increase: → PKR 50.0
Wage increase starts: → 2015-01

Once only extra payment

Once only extra payment due to company performance: → Yes
Once only extra payment takes place: → 2015-05

Meal vouchers

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