Memorandum of Settlement between Murree Brewery Company Limited and Muree Brewery Workers Union - 2013


Under Industrial Relation Act, 2012

Murree Brewery Company Limited is a trans-provincial establishment as defined U/S 2(xxxii) of Industrial Relation Act 2012 having its Registered Office at National Park Road. Rawalpindi, herein after referred to as “the Company” which expression wherever the context so admits shall mean and include its successors and assignees, on the one part.


Muree Brewery Workers Union, Acting as Collective Bargaining Agent having its registered office at Murree Brewery Company, Rawalpindi, herein after referred to as “the C.B.A” which expression wherever the context so admits shall mean and include its successor and assignees, on other hand

Short Recital of the Case.

On 01.07.2013 the C.B.A served Demand Notice under section 35 of the IRA 2012 to the Company. The Company arranged various meetings with the representatives of the C.B.A with a view of reaching an agreement on the demands through the process of dialogue. After various meetings between the parties following settlement/agreement arrived at and resultantly this agreement signed on 01.01.2014 by the following representatives of both the above parties.

* The Company’s Representatives

1. Mr. M. Zaffar Iqbal - (Co. Secretary) - Chairman Works Council

2. Mr. Muhammad Javad - (GM. Brewery) - Member

3. S. Tanveer H. Kazmi - (GMHR) - Secretary works council

4. Maj. (Rid) Sabih-ur-Rehman - (SA to CX) - Member

5. Rizwan Arshad - (Ch.Acctt-B) - Member

* Union Representatives.

1. Ch. Muhammad Saleen - (President C.B.A) - W.C Member

2. Syed Nazar Hussain Shah - (General Secretary ““) - V/C Works Council

3. Mr. Raja Muhammad Parvaiz - (Vice President ““) - W.C Member

4. Syed Ather Mehmood - (J/S““) - W.C Member

5. Shabbir Hussain Khokhar - (Chairman““) - W.C Member

Terms of Settlement

A. This agreement shall be valid for a period of two years effective from 1st July, 2013 to 30th June 2015 and shall be applicable / confined to only existing regular permanent employees in grade I-X As on 1.7. 2013 The C.B.A agreed not to raise any financial demand what so ever till the expiry of this agreement; in general all workers and / or staff members of the Company will not be eligible/entitled to any financial benefit till the expiry of this agreement.

B. It is further agreed that in case of any change/revision in liquor policy by the Federal or Provincial and Local Governments through which production of Liquor is effected or sale decreases due to this policy, benefits/allowances, bonuses and other incentives granted under current or pervious Agreements / Settlements will be reviewed by both the parties and the CBA will have no objection.

C.That the C.B.A unconditionally and irrevocably indemnifies company against claims or actions arising out the same from any of the worker (s) for and on behalf of which it is acting and executing this agreement.

D. It has been agreed that this agreement is full and final settlement of all the demands raised by the C.B.A as per their Charter of Demands attached as “Annex – A” and demands not mentioned in this agreement shall be treated as withdrawn by the CBA. Both the parties agreed to maintain industrial peace and abide by the settlement.

E. In view of this settlement the C.B.A undertakes that its office bearers and workers will work whole heartedly and improve their efficiency for attaining the production targets and avoid malingering and wasteful working. The C.B.A office bearers also undertake to maintain peace during the currency of this settlement and not to take recourse to any illegal steps disturbing the smooth running of the Company and the C.B.A further undertakes not to take part in. Facilitate and or abet or backing in any activity that may result in go slow down, strike or stoppage of production in any manner or to any extent whatsoever and howsoever.

F. In view of this settlement, the C.B.A also undertakes whole heartedly not to support malingerers. Thieves, habitual sick-leavers, under – employed workers. Time wasters and not to indulge in political activities during working hours. The C.B.A will fully cooperate with the management to improve productivity / disc pline and will prove themselves as exemplary workers like other employees in the organization. There are some employees, who take medical leaves and are found working somewhere else. Such employees will be earmarked by the management and the C.B.A will convince the workers not to follow this illegal practice and will also take up the matter with the Social Security Doctor to stop such practice and will not to support the workers in any case before any legal forum.

G. It is agreed between the parties that subject to the terms and conditions incorporated in this Memorandum, all other terms and conditions of service, facilities and benefits (not addressed / modified / revised herein and / or remain unchanged) in terms of earlier signed with the union and existing / unchanged as on the date of signing this Memorandum will continue to remain applicable in the same manner and conditions.

Benefits/ Allowances Being Granted under this Settlement

1) Increase in Pay:

Agreed that Rs. !2,000/- (Rupees twelve thousand only) as Special Dearness Allowance (S.D.A) per worker per month will be paid to all the existing regular/permanent employees Grade I - × w.e.f. 1st July, 2013 and the settlement will not be applicable to the employees confirmed in regular service after 1.7.2013.

i. Bonus only for 10C (one Bonus) - 1st July 2013

ii. Gratuity - 1st July 2014

iii. Annual Increment (for FY 13-14) - 1st July 2015

iv. Overtime - 1st July 2015

v. Leave Encashment - 1st July 2015

vi. The above allowances shall not part of wages for any other incentive, payment, benefits, bonuses/ex-gratia or any other relief whatsoever.


SERVICE AFTER 1st July 2011

Agreed that effective July 2013 employee confirmed in regular service after 1st July 2011 (Presently drawing five bonuses+ 10C= Six Bonuses) will be paid sixteen Bonuses + one 10C (Total seventeen bonuses) like all other regular employees. Payment of sixteen bonuses will be made on Basic Pay + Govt allowances i.e. COLA + CLR + CLA + Fed COLA. Whereas 10C bonus will be paid on gross pay less House Rent, Regularity, Conveyance Allowance, Shave Allowance, Heat Allowance.

It is further agreed that employees attaining status of confirmed on regular employment after 1st July 2013 will be eligible only for the One 10 C Bonus (on Gross pay less House Rent. Regularity, Conveyance Allowance, Shave Allowance and Heat Allowance) plus five Bonuses on Basic pay + Govt Allowance i.e. COLA+CLA+CLR+Fed COLA till 30th June 2016.

3) Payment of Gratuity:

Agreed that effective July 1st 2014, calculation of Gratuity will be made on last drawn Gross Pay less conditional allowances i.e House Rent. Attendance/Regularity Allowance, Heat Allowance, Shaving Allowance and Conveyance Allowance. It is agreed that this gratuity scheme is provided under company’s policy and various settlement with the C.B.A and in addition to Provident Fund established by the Company wherein the employees/union members are equal contributor as such Gratuity scheme provided under Standing orders 12 (6) of the Punjab Industrial & Commercial Employment (standing orders) Ord. 2013 would not be applicable or attracted by any mean.

4) Death Grant

Effective July 2014 Death Grant will be paid as under:-

In case of employees own death - Rs. 35,000/-

In case of employees dependents - Rs. 20,000/-

5) IDDAT Allowance

In case of employee’s death, Iddat Allowance of Rs. 10.000/- per month will be paid effective July 2014 to the widows equally nominated by the deceased employer for a maximum period of 4 months from date of death of employee.

6)House Building Loan:

Agreed to enhance House building loan from Rs: 150,000/- to Rs: 200,000/- per annum as per other terms and condition of existing house building loan policy

7) Annual Increment

Agreed that next Annual Increment due on 01. 07. 2014 will be made 4% of Gross Salary less conditional allowances i.e (House Rent, Conveyance. Regularity/Attendance Allowance, Shaving Allowance, Heat Allowance) of eligible employees as per our appraisal policy of the company and increase will be added in Basic Pay of an employee but relief of Rs. 12.000/- will not be a part of wages till 30th June 2015.

8) Over Time Payment

Agreed that effective July 2014, payment of overtime will be made on Gross pay less conditional allowances i.e House Rent, Conveyance, Regularity/Attendance Allowance, Shaving Allowance, Heat Allowance, Formula for Overtime calculation would be Gross pay less above mentioned excluded Allowance × 2 × O.T hrs – 208/216 Hrs of Month.

9) Un-availed Annual , Earned and Casual Leave Encashment

Agreed that effective July 2014 (un-availed Annual/Earned, Casual leave encashment for the year ending on 30. 06. 2014) will be made on Gross Pay less Conditional Allowances i.e House Rent, Conveyance Allowance. Heat Allowance, Regularity Allowance, Shaving allowance and relief of Rs. 12,000/- (S.D.A), but effective July 2015 the relief of Rs. 12,000/-(S.D.A) will be part of wages for Leave Encashment.


Memorandum of Settlement between Murree Brewery Company Limited and Muree Brewery Workers Union - 2013

Start date: → 2013-07-01
End date: → 2015-06-30
Ratified by: → Other
Ratified on: → 2014-01-01
Name industry: → Manufacturing
Name industry: → Manufacture of beverages
Public/private sector: → In the private sector
Concluded by:
Name company: →  Murree Brewery Company Limited
Names trade unions: → 


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

Wage increase

Wage increase: → 4.0 %
Wage increase starts: → 2015-07

Once only extra payment

Once only extra payment due to company performance: → Yes

Premium for overtime work

Meal vouchers

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