MEMORANDUM OF SETTLEMENT BETWEEN MULLER & PHIPPS PAKISTAN (PVT) LTD AND MULLER & PHIPPS PAKISTAN (PVT) LTD EMPLOYEES’ UNION - 2013

(under the provision of the Industrial Relation Act, 2012 and the Rules framed there under)

NAME OF THE PARTIES

1.Muller & Phipps Pakistan (Pvt.) Ltd., Uzma Court, First Floor, Main Clifton Road, Karachi, hereinafter called “Company”.

2.Muller & Phipps Pakistan (Pvt.) Ltd. Employees’ Union, and having been certified as Collective Bargaining Agent by National Industrial Relations Commission, for and on behalf of the workmen employed by the Company hereinafter called the “Union”.

REPRESENTING THE COMPANY

1.Mr. Asghar Ali QadriHead of Human Resources

2.Mr. Jawed MasoodIndustrial Relations Coordinator

REPRESENTING OF THE UNION

1.Mr. Muhammad Sultan KhanPresident

2.Mr. Adnan HussainVice PresidentKarachi – CPD

3.Mr. Tariq MehmoodVice PresidentRawalpindi

4.Mr. Mujahid AliVice PresidentFaisalabad

5.Mr. Altaf KhanGeneral SecretaryPeshawar

6.Mr. M. IslamAdd. General SecretaryLahore – 2

7.Mr. M. AyubFinance SecretaryLahore CPD

8.Mr. Waheed AhmedJoint SecretaryMultan

9.Mr. Ajmal KhanPress & Publication SecretaryPeshawar

10.Mr. Muzaffar AliExecutive MemberSargodha

11.Mr. Abdul GhaffarExecutive MemberCentral Warehouse

12.Mr. Amir Qayyum KhanExecutive MemberIslamabad

13.Mr. Akbar AliMemberMardan

Short Recital of the Case

Whereas the Union along with its letter dated: 01-01-2013 submitted to the Company a Charter of Demands in accordance with the provision of the Industrial Relations Act, 2012 and the Rules framed there under.

And whereas pursuant to the aforesaid and the Charter of Demands, Industrial Disputes having arisen a number of meetings were held between both the parties during the period extended up to 30-08-2013.

And whereas during the bilateral negotiations the Union pleaded inflation and rise in the cost of living as a basis and justification for the acceptance of their demands which fact was also recognized by the Company.

And whereas the Company and the Union in full and final settlement of all their demands and claims raised or which could have been raised by the Union and the Company in the above referred to Charter of Demands date: 01-01-2013 and during the bilateral negotiations have settled all the disputes as per following Agreement:

NOW THEREFORE THIS AGREEMENT WITHESSETH AS FOLLOWS:

TERMS OF THE AGREEMENT

The following has been mutually agreed upon between the Company and the Union:

1. BASIC PAY, HOUSE RENT ALLOWANCE AND CONVEYANCE ALLOWANCE

Keeping in view and the rise in cost of living, all workers on payroll as on the date of signing of this Agreement will be given an increase in their Basic Pay, House Rent Allowance and Conveyance Allowance w.e.f. 01-01-2013 or date of joining as the case my be, as per details given below:

b. HOUSE RENT ALLOWANCE

From Rs. 1,300/- to Rs. 1,725/- (increase of Rs. 425/-)

It is further agreed that this would be a onetime increase and C.B.A/Workers shall neither demand nor quote as precedence in future.

2. SPECIAL UP-COUNTRY DAILY ALLOWANCE

a. (Up-Country Deliverymen only – with night stay)

The Company will give Up-Country Deliverymen a Special Up-Country Daily Allowance and the same will be paid at the flat rate of Rs. 215/- (Rs. Two hundred fifteen only) instead of Rs. 185/- (Rs. One hundred eighty-five only) per actual days worked, when according to the tour program an over-night stay at the town from their head-quarters/base town is involved.

b. (Up-Country Drivers only – with night stay)

The Company will give to Up-Country Drivers a Special Up-Country Daily Allowance and the same will be paid at the flat rate of Rs. 215/- (Rs. Two hundred fifteen only) instead of Rs. 170/- (Rs. One hundred seventy only) per actual days worked, when according to the tour program an over-night stay at the town away from their head-quarters/base town is involved.

c. (Up-Country Deliverymen and Drivers only – without night stay)

The Company will give to Up-Country Deliverymen and Up-Country Drivers a special Up-Country Daily Travelling Allowance and the same will be paid at the flat rate of Rs. 170/- (Rs. One hundred seventy only) instead of Rs. 140/- (Rs. One hundred forty only) per actual days worked, when according to the tour program they are not required to make an over-night stay.

d. (Marketing Allowance – Local Deliverymen and Drivers only)

The Company will give Local Deliverymen and Drivers a Local Daily Allowance and the same will be paid at the flat rate of Rs. 365/- (Rs. Three hundred sixty-five only) instead of Rs. 325/- (Rs. Three hundred twenty-five only) per month on actual days worked.

e. It is also agreed that in addition to above an amount of Rs. 150/- (Rs. One hundred fifty only) instead of Rs. 140/- (Rs. One hundred forty only) per days worked will also be paid to local driver and delivery man, who make market deliveries within the town of posting, provided that the one-way distance to the furthest market outlet, covered from the base depot to the market exceeds 25 km.

3. LATE WORKING ALLOWANCES

a. (Local Deliverymen and Drivers only)

The Company will give to Local Deliverymen and Drivers a Late Working Allowance for working late after normal hours to complete the work assigned to them for the day and the same will be paid at the flat rate of Rs. 750/- (Rs. Seven hundred fifty only) per month, instead of Rs. 660/- (Rs. Six hundred sixty only) per month.

With this payment, the Union and/or the workers concerned will have no further right to claim any additional payment whatsoever for working late after normal working hours.

The Deliverymen and Drivers will ensure that the work assigned to them for the day is completed without fail.

b. i. (Up-Country Deliverymen only)

The Company will give to Up-Country Deliverymen a Late Working Allowance and the same will be paid at the flat of Rs. 500/- (Rs. Five hundred only) per month, instead of Rs. 450/- (Rs. Four hundred fifty only) per month.

With the payment, the Union the/or the workers concerned will have no further right to claim any additional payment whatsoever for working late after normal working hours.

The Deliverymen shall ensure that the work assigned to them as per scheduled in completed without fail.

ii. (Up-Country Drivers only)

The Company will give to Up-Country Drivers a Late Working Allowance and the same will be paid the flat rate of Rs. 400/- (Rs. Four hundred only) per month instead of Rs. 360/- (Rs. Three hundred sixty only) per month.

With this payment, the union and/or the workers concerned will have no further right to claim any additional payment whatsoever for late after normal working hours.

The Drivers will ensure that the work assigned to them as per schedule is completed without fail.

c. This Late Working Allowance is payable on the basis of actual days worked by the concerned staff and will not be paid in case of absence from duty for any reason i.e. Casual Leave, Sick Leave, Privilege Leave and Leave without Pay etc.

4. OVERTIME ALLOWANCE

5. ACCIDENTAL INSURANCE

6. UNIFORMS, SHOES/SOCKS

7. WASHING ALLOWANCE

The Company will continue the existing arrangement for getting the uniforms washed at the Head Office, Karachi. At other Establishments, the Company will pay Rs. 280/- (Rs. Two hundred eighty only) per month instead of Rs. 245/- (Rs. Two hundred forty-five only) per month as Washing Allowance to those workers who are entitled to uniforms.

8. GRATUITY

9. LOAN FOR MOTORCYCLE

a.The Company will grant loan for the purchase of new motorcycle to Eighteen (18) permanent workers every year to the extent of Rs. 40,000/- (Rs. Forty thousand only). The Union and the Company will select (18) workers entitled to this loan. The concerned workers must have minimum of ten years of continuous service to be entitled to this facility. The loan will be deducted in 40 monthly equal installments. The Road Tax, Insurance Maintenance Charges, etc. will be borne by the concerned worker. The motorcycle will be registered in the name of the Company till the loan is repaid in full by the worker. The Company will disburse the loan of Rs. 40,000/- (Rs. Forty thousand only) after selected worker has deposited the balance amount required to purchase a new motorcycle a worker will be eligible to the motorcycle loan only once in service. Unpaid loan amount shall be adjusted against his legal dues in case of retirement, termination of service, dismissal or death.

b. LOAN IN LIEU OF MOTORCYCLE

If a selected worker requested in writing to allow him to utilize Rs. 40,000/- (Rs. Forty Thousand only) for any other purpose, instead of purchasing motorcycle, he will be paid Rs. 40,000/- (Rs. Forty thousand only) as loan on the same terms and conditions for payments as mentioned in Clause-9(a), provided he has no outstanding loan from Provident Fund. The Provident Fund of such worker will be treated as a security for such loan and the worker opting for this facility will not be entitled to obtain any other loan from the Provident Fund during the period such loan is outstanding. In case such worker insists on loan from Provident Fund, the loan from Provident Fund would be granted only after the balance amount of the loan granted under the provision of this article is repaid.

Such worker will not be granted any other loan from the Company till the amount of Rs. 40,000/- is fully paid by him.

The workers will be required to execute an agreement and/or surety bond as per requirement of the Company from time to time.

This loan will be given to a worker only once during his service. Unpaid loan amount shall be adjusted against his legal dues in case of retirement, termination of service, dismissal or death.

10. INTEREST FREE LOAN OF SMALL AMOUNT

It is mutually agreed that the fund allocated for the interest free small loan is Rs. 80,000/- (Rs. Eighty thousand only). The maximum amount of loan to a worker at a time will not exceed Rs. 4,000/- (Rs. Four thousand only) and this loan will be given only those permanent workers who have completed at least three-years continuous service. The workers who have not completed three-years continuous service are not entitled to avail this facility. This loan will be deducted in 10 equal monthly installments. It is also agreed that this loan will be given to a worker only once during the tenure of this Agreement i.e. from 01-01-2013 to 31-12-2014.

11. TRANSFERS

a. The worker will be entitled to a one-time payment of Rs. 3,800/- (Rs. Three thousand eight hundred only) instead of Rs. 3,600/- (Rs. Three thousand six hundred only) when the Company on its own discretion, transfers him form on city to another city.

b. However, it is agreed that workers will not be entitled to this Allowance if a transfer is made on their own request.

12. DURATION OF AGREEMENT

It is agreed by both the Company and the Union that this Agreement will remain in force and biding upon the parties and their successors for a period of two-years commencing from 01-01-2013 and ending on 31-12-2014.

13. EFFECTIVE DATE OF BENEFITS

All benefits, facilities and terms of employment conferred under the agreement will be effective from 01-01-2013, unless and except as specifically provided otherwise.

14. FINALITY

a. It is agreed that the benefits under this Agreement is the total financial burden taken by the Company during the operative period of this Agreement and this Agreement has taken in view the anticipated increase in wages, the Cost of Living Allowance, special allowance or otherwise which may be allowed by the Government by any order or law during the operation of this Agreement and the same shall be set off against the benefits of this Agreement and only the difference, if any, after such set off/adjustment shall be payable to the workers and this condition forms the basis of giving benefits by the Company to the workers under this Agreement.

b. This Agreement is in full and final settlement of all the demands raised or could have been raised by the Union in the respective Charter of Demands, dated 01-01-2013 and/or raised during the course of bilateral negotiations. The demands not specifically mentioned in this Agreement but raised in the said Charter of Demands and also such demands and/or disputes not raised in the said Charter of Demands but raised during the course of bilateral negotiations will be deemed to have been settled, satisfied, and/or withdrawn.

c. The Union undertakes and agrees that during the period this agreement is in force and effective, they will not raise and/or submit any demands of any nature and/or raised in the attached Charter of Demands, dated 01-01-2013 and/or raise or could have been raised during bilateral negotiations nor will the Union raise or submit any fresh and/or further demands having any direct or indirect financial bearing or implications on the Company in any form whatsoever.

15. DUPLICATION OF BENEFITS

The rights and benefits conferred herein are in modification of the corresponding rights and benefits, conferred if any, under the existing laws and/or previous agreements/ settlements and practices and nothing herein shall be constructed as entitled the workers to claim dual benefits.

16. GENERAL

That in consideration of the financial and other benefits granted by the Company under this Agreement, the Union: -

a. Agrees to undertake to keep industrial peace, cooperate with the Company in its efforts to increase efficiency and not to resort to any action involving curtailment of supply, indiscipline and inefficiency etc.

b. It is further agreed that if at a future date/time, any trade union either provincially registered or registered as an industry-wise trade union, is declared to be a “Collective Bargaining Agent” if a new union is formed or any other trade union comes into existence or the Union loose its character of collective bargaining agent, the finality, validity and sanctity of this Collective Agreement shall neither be adversely affected nor shall it be challenged directly or indirectly by the workmen, in any manner whatsoever.

c. The Company as a gesture of goodwill and inconsideration of the Union arriving at a peaceful Agreement has agreed to make a one-time payment of Rs. 100/- (Rs. One hundred only) to all the permanent workmen on payroll of the Company on the date of signing of this Agreement.

17. THE BINDING PROVISION

It is also agreed that during the operation of this settlement, the Union and or any other succeeding C.B.A; whether industry-wise or Provincial shall not raise any demand(s), financial or otherwise, on the Company.

IN WITNESS WHEREOF THE PARTIES hereto have hereunto set their hands on this 13-09-2013.

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