MEMORANDUM OF SETTLEMENT BETWEEN SINGER PAKISTAN LIMITED AND SINGER INDUSTRIES LABOUR UNION - 2015

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UNDER SECTION 2 (XXVI) AND SECTION 35 OF THE SINDH INDUSTRIAL RELATIONS ACT, 2013 READ WITH RULE 70 OF THE INDUSTRIAL RELATIONS (SINDH) RULE, 1973

FORM ‘X’

[RULE 70]

FORM OF AGREEMENT

NAME OF PARTIES

Singer Pakistan Limited, Korangi Industrial Area, Karachi hereinafter referred to as the “Factory” (which expression wherever the context so admits in this Memorandum of Settlement shall mean and include its successors and assigns)

AND

Singer Industries Labour Union (Registration No. 694) Korangi, Karachi, hereinafter called “Union” (which expression wherever the context so admit in this Memorandum of Settlement shall mean and include its successors, assigns and all categories of workmen in permanent position, represented or to be represented or to be represented, employed or to be employed or to be employed in the Factory).

REPRESENTING
EMPLOYERS WORKERS
1. MR. U. R. USMANI

DIRECTOR HR & LEGAL AFFAIRS

1. MR. MOHAMMAD TOUQEER NO. (21177)

PRESIDENT

2. MR. QAISER PERVAIZ

DIRECTOR FINANCE

2. MR. JAHANGIR KHAN NO. (13533)

VICE PRESIDENT

3. MR. WAHIDUL HASSAN

FACTORY MANAGER

3. MR. ISLAMUDDIN USMANINO. (8024)

GENERAL SECRETARY

4.MR. SHAHBAZ ATHER SIDDIQUI

HUMAN RESOURCE & INDUSTRIAL RELATIONS MANAGER

4.MR. M. RIZWANUL HAQUE NO. (13538)

JOINT SECRETARY

SHORT RECITAL OF THE CASE

WHEREAS the Factory served upon the Union (Collective Bargaining Agent) a notice dated 1st January, 2015. Under section 35(1) of the Sindh Industrial Relations Act, 2013 forwarding therewith a Charter of Demands (Copy enclosed hereto marked as Annexure – A)

AND WHEREAS the Union, as collective bargaining agent, also served upon the Factory a notice dated 1st January, 2015, under Section 35(1) of the Sindh Industrial Relations Act, 2013, forwarding therewith a Charter of Demands (Copy enclosed hereto and marked as Annexure – B)

AND WHEREAS bilateral negotiations were held between the representatives of the Factory and the Union on the dates as agreed upon by them and bilateral negotiation failed on 22nd April 2015. Consequently, the Factory served upon the Union a Notice of Lock-Out dated 27th April 2015 and Union served upon the Factory Notice of Strike dated 9th June, 2015 under Section 35(3) read with Section 37 of the Sindh Industrial Act, 2013 (copy of said Notice of Lock-Out dated 27th April, 2015 & notice of Strike dated 9th June, 2015 are enclosed hereto and marked as Annexure – C & D respectively).

AND WHEREAS in pursuance to the said notice of Lock-Out dated 27th April 2015 & Notice of Strike dated 9th June 2015 the Conciliator of the Directorate of Labour, Government of Sindh (East Division) Karachi, intervened & initiated the conciliation proceedings which were extended from time to time with mutual consent of the parties.

AND WHEREAS recognize the effects of inflation which has effected all segments of our society, and more particularly the working class, the Company agreed to negotiate improvements in wages and allowances of workers and grant financial relief in anticipation of further rise in Cost of Living and/or grant of relief thereof in future by the Government.

AND WHEREAS negotiations were held between the representatives of the Factory and the Union with the good offices of the Conciliator on different dated and consequently an amicable settlement has been reached in full and final settlement of all the demands contained in the aforesaid Charter of Demands.

NOW THEREFORE THIS AGREEMENT WITNESSETH AS UNDER:

TERMS OF AGREEMENT

1. Basic Wages

Effective 1st January, 2015 the Factory agrees to an increase of Rs. 350/= (Rupees Three hundred & fifty only), on one time basic, in basic wages of all the permanent workmen in the employment of the Factory on the date of signing of this Agreement.

2. House Rent Allowance

Effective 1st January, 2015 the Factory agrees to allow an increase of Rs. 125/= (Rupees One hundred and Twenty five only) in House Rent Allowance thereby raising the same from Rs. 2050/= (Two thousand & fifty) to Rs. 2175/= (Rupees Two thousand and one hundred & seventy five only) per month to all the permanent workers.

All other existing terms and conditions to the eligibility etc. of the House Rent Allowance shall remain unchanged.

3. Conveyance Allowance

Effective 1st January, 2015 the Factory agrees to allow an increase of Rs. 125/= (Rupees One hundred and twenty five only) per month in the existing Conveyance Allowance raising same from Rs. 905/- to Rs. 1030/-, from Rs. 915/- to Rs. 1040/-, & Rs. 940/- to Rs. 1065/- per month to those workmen who reside at a distance of less than three miles and more than three miles but less than six miles and at a distance of six miles or more respectively.

All other existing terms and conditions pertaining to the eligibility etc. of Conveyance Allowance shall remain unchanged.

4. Annual Leaves

Effective 1st January 2015, Annual Leave shall now be 25 days per year instead of 21 days per year.

All other existing terms and conditions to the Privilege leave shall remain unchanged.

5. Encashment of Sick / Casual / Privilege Leave

The Factory agrees to take the Conveyance, Washing, Attendance & Meal Allowance into consideration while computing encashment of un-availed Sick, Casual & Privilege Leave. All others terms and conditions for encashment of leave will remain unchanged.

6. Discount on Company’s Product

Effective from date of signing of this Agreement, permanent workers will be eligible to purchase Company’s product on discount, as noticed by the Factory from time to time, after 2½ years instead of 5 years after their services.

All other existing terms and conditions to the Discount on Company’s Product shall remain unchanged.

7. Daughter Marriage Grant

The Factory agrees to upgrade / allow to give one Sewing Machine ZIG ZAG Model (8280) without accessories, instead of Standard Model No. 150-H, in the event of a worker’s daughter marriage as a gift, at the sole discretion of Management, effective from the date of signing of this Agreement.

8. Grade Re-structuring

Management & Union has agreed to merge the existing nine grades into three grades & introduce the new rates of annual increments, w.e.f. the date of signing of this Agreement.

EXISTING STRUCTURE
Sr. No. Workers Grade Basic Wage Annual Increment
1 I 1000 20
2 II 1050 22
3 III 1100 24
4 IV 1150 26
5 V 1200 28
6 VI 1250 30
7 VII 1300 32
8 VIII 1350 34
9 IX 1400 36

REVISED GRADES (MERGED)
Sr. No. Previous Grades New Workers Grade Basic Wage Annual Increment
1 I-II-III UN-SKILLED WORKERS (USLW) 2300 50
2 IV-V-VI SEMI – SKILLED WORKERS (SSLW) 2325 55
3 VII-VIII-IX SIKILLED WORKER (SKLW) 2350 60

9. Productivity/Production

(a) The Union agrees to undertake the productivity shall be increased from the date of signing of this Agreement over and above the existing production level. Standards will be revised by the Factory, at its discretion, in the event of change in technology, process or materials etc. take places.

(b) The Union also agrees to ensure production of quality products and minimizing wastages and scrap through-out the plant operations.

10. General

(a) The Factory and the Union voluntarily agrees that in case the Government announces any Cost of Living Allowance, Special Allowance, Additional Special Allowance, Adhoc Relief, Dearness Allowance or any other allowance or financial benefits etc., during the operative period of this Agreement it shall not be affected as a result of increase in wages granted to the workers under this Agreement. However, only differential, if any, shall be payable.

(b) The Union hereby undertakes to cooperate with the Factory in implementing measures for improving labour productivity, quality and reducing absenteeism and abide by all the work practices as establishment by the Factory.

(c) The Union hereby also agrees that, in consideration of the benefits provided by the Factory under this Agreement, all remaining demands covered by the Charter of Demands which have not been specifically mentioned in this Agreement shall be deemed to have been settled, satisfied and withdrawn.

(d) The Parties hereby agree that all such existing terms and conditions which have not been modified, altered of covered by this Agreement shall continue to be binding and operative.

(e) The parties hereby further agree that all such exiting terms and conditions regarding payment of various allowances/benefits provided under this Agreement and which have not been specifically mentioned and/or modified in this Agreement shall continue to remain unchanged.

(f) In consideration of the financial and non-financial benefits granted by the Factory under this Agreement, the Union hereby agrees and undertakes:

(i) Not to raise any financial demands or pursue directly or indirectly during period of operation of this Agreement, any demand or dispute involving financial burden on the Factory and also not to raise any demand whether covered by this Agreement or the Charter of Demands or any other financial or other fresh demand whatsoever during the operation of this Agreement.

(ii) Not to strike work or to instigate strike or go slow or lower production by any means and ensure that the workers do not indulge themselves in any activity.

(iii) Which may in any way adversely affect the production of the Factory or disturb the industrial peace.

(iv) Maintain industrial peace, to abide by the Agreement for the operative period hereinafter provided, to cooperate fully with the Factory in matters of discipline, good conduct and to reduce absenteeism and improve productivity and quality.

(g) It is the essence of this Agreement that the increases given hereinabove have been granted to the workers due to inflation and the rise in the Cost of Living.

(h) That this Agreement is in full and final Agreement of all the demands including those contained in the Charter of Demands as per Annexure [A and B] as enclosed herewith.

11. Duration of Agreement

The parties hereby agree that this Agreement will come into force w.e.f. the date of its signing and will remain operative and binding upon the parties for a period of two years commencing from 1st January, 2015 to 31st December, 2016 and shall continue to be binding and operative even after the expiry of the of two months from the date when either party informs the other party of its intention to be no longer bound by this Agreement.

12. Scope and application

(a) The Parties hereby agree that the benefits provided under this Agreement will be applicable to those permanent workers only who are in the employment of the Factory on the date of signing of this Agreement.

(b) The Parties hereby also agree that the monetary benefits provided under this Agreement shall be effective from the dates as mentioned hereinabove for those permanent workers only who are in the employment of the Factory on the date of signing of this Agreement.

IN WITNESS whereof the parties hereto have hereinto set their hands this 11th June, 2015.

*****

Memorandum of Settlement Between Singer Pakistan Limited and Singer Industries Labour Union - 2015

Start date: → 2015-01-01
End date: → 2016-12-31
Ratified by: → Other
Ratified on: → 2015-06-11
Name industry: → Manufacturing
Name industry: → Manufacture of electrical equipment
Public/private sector: → In the private sector
Concluded by:
Name company: →  Singer Pakistan Limited
Names trade unions: → 

WORKING HOURS, SCHEDULES AND HOLIDAYS

Paid annual leave: → 25.0 days
Paid annual leave: →  weeks
Provisions on flexible work arrangements: → No

WAGES

Wages determined by means of pay scales: → No
Provision that minimum wages set by the government have to be respected: → Yes
Agreed lowest wage per: → Months
Lowest wage: → PKR 1000.0
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → PKR 29.0

Once only extra payment

Once only extra payment: → PKR 2175.0 %
Once only extra payment due to company performance: → Yes
Once only extra payment takes place: → 2015-01

Allowance for commuting work

Allowance for commuting work: → PKR 1030.0 per month

Meal vouchers

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