MEMORANDUM OF SETTLEMENT BETWEEN UNILEVER PAKISTAN LIMITED AND UNILEVER EMPLOYEES’ FEDERATION OF PAKISTAN - 2012 to 2013

New3

Under the provisions of Industrial Relations Act, 2012

Islamabad,

26th March, 2013

NAME OF THE PARTIES

A.Unilever Pakistan Limited (UPL) having its registered office at Avari Plaza, Fatima Jinnah Road, Karachi (which expression wherever the context so admits shall mean and include their successors and assigns)

AND

B.Unilever Employees’ Federation of Pakistan (UEFP) having its registered office at Labour Welfare Society, ‘D’ Block, Shershah Colony, Karachi, hereinafter called the ‘C.B.A’ (which expression wherever the context so admits shall mean and include its successors, assigns and all categories of workmen in permanent position, employed or to be employed).

**Representing Employer

AHMED ALI ZIA - HR – DIRECTOR

AMAR NASEER - LEGAL DIRECTOR & COMPANY SECRETARY

MOHSIN NISHAT - HR – BUSINESS PARTNER – SC & FINANCE

FOUZIA ISHAQUE - NATIONAL EMPLOYEE RELATIONS MANAGER

UMAR FAROOQ HASHMI - WORKS MANAGER – RYK

ISHTAQ AHMED - WORKS MANAGER – ICF

MOHAMMAD IQBAL - HR – CONSULTANT

IMTIAZ JALEEL - COMMERCIAL MANAGER

MOHAMMAD WASEEM - FINANCE CONTROLLER HPC

MOIZ IDRIS RAJPUT - FINANCE BUSINESS PARTNER

TAZEEM TAHA - HRBP – HPC & BEVERAGE MFG

SHAH MOHAMMAD AMEEN - HRBP – KWL

**Representing Federation

TASEER DAR - PRESIDENT

MASOOD TARIQ - GENERAL SECRETARY

ARSHAD KAMRAN - SENIOR VICE PRESIDENT

ABDUL MUNEER - VICE PRESIDENT

AZMAT ALI - SR. JOINT SECRETARY

QAMAR SULEMAN - JOINT SECRETARY

PERVEZ ABBASI - PROPAGANDA SECRETARY

ASLAM HUSSAIN - CENTRAL EXEC. COMM. MEMBER

ABDUL SATTAR - CENTRAL EXEC. COMM. MEMBER

A. SHORT RECITAL OF THE CASE

Whereas the last SETTLEMENT dated 11th February, 2011 signed with the Unilever Employees’ Federation of Pakistan expired on 31.12.2011

The Federation in its capacity as Collective Bargaining Agent (C.B.A) served the Charter of Demands dated 24.03.2012 (Annexure -A-1). on the Company. The Company also served Charter of Demand dated 27.04.2013 (Annexure-A-2) on the Federation. Bilateral Negotiations on the above Charter of Demands commenced and various meeting were held from time to time and ultimately bilateral negotiations concluded satisfactory and the following settlement has been reached between the parties.

B. NOW THEREFORE THIS SETTLEMENT WITNESSETH UNDER:

The following benefits of the SETTLEMENT, which have been mutually agreed, will be distributed amongst the PERMANENT STAFF herein after termed as ‘STAFF’.

1. BONUS FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2011

The Company explained the Annual Reports & Accounts for the period January 01, 2011 to December 31, 2011.

It has been mutually agreed that an amount of Rs. 136,942,719 (Rs. One hundred thirty-six million, nine lacks, forty-two thousand and seven hundred nineteen only) will be paid as profit bonus for the financial period 01.01.2011 to 31.12.2011 to eligible staff of UPL. This payment will be complete discharge of Company’s obligation under section 10-C of West Pakistan Industrial & Commercial Employment (Standing Orders) Ordinance, 1968. The above amount is to be distributed as under:-

To pay 20 (Twenty) months basic salary plus one COLA for the above said period to all Staff of UPL who were on the payroll of the company on December 31, 2011. To determine the quantum of bonus it has been agreed that the basic salary and COLA as on December 31, 2011 will be taken for the purpose of calculating the amount of bonus for each staff.

Staff who were in the employment of the Company for 90 days or more but less than the complete year will be paid the amount of bonus on pro-rata basis as follows except for the Staff who retired on superannuating or terminated on account of restructuring of business or died in service any time during the period January 01, 2011 to December 31, 2011 who will be paid full entitlement of bonus disregarding the period they were not in the Company’s employment because of the above said reasons.

Continuous duration of service Pro-rata entitlement of said Bonus
Full year of service Full entitlement
Less than 3 months Nil
3 months or above but less than 6 months 1/3 (one third)
6 months or above but less than 9 months ½ (one half)
9 months or above but less than 12 months 2/3 (two third)

Advance against bonus paid to the staff during 2011-12 at each location will be deducted from their respective entitlement of Bonus.

The deduction on account of absenteeism as detailed under clause 1(a) and (b) of the Settlement signed on 10.02.1986 shall be made and the amount so deducted shall be paid to the Unilever Employees Federation of Pakistan.

In order to embed performance culture and align ourselves with other Unilever operating companies and high performing organizations in the country. It was agreed in the settlement dated 11th February, 2011 that w.e.f. the profit bonus for the financial year 2011 (pay in 2012) a reasonable portion of the agreed amount of profit bonus will be paid to employees based on their annual performance. Same approach was taken in settlement date 12.08.2003. to achieve this objective a committee for this purpose was constituted. Based on the recommendations of the committee, in the settlement dated 18.10.2011 signed between the Management and the Federation, location wise performance matrix was agreed for implementation for the financial years 2013 & 2014. Amount equivalent to one bonus out of the total settlement of Bonus for pertinent year will be paid on the basis of performance matrix for each site which are annexed as Annexure B1 to B4 with the settlement dated 18.10.2011. the agreed performance matrix is applicable from 1st January, 2013 onwards. It has further been agreed that performance matrix and the share of Profit Bonus attached will be reviewed for Profit Bonus 2014 with the objective of bringing positive improvement in the scheme.

It has also been agreed that efforts will continue to further improve upon and strengthen the culture of performance based reward.

2. BASIC SALARY

The basic salary of all Permanent Staff in the employment of the Company on the date of signing of this settlement (including those who have retired on superannuating or died since 01.01.2012) will be increased by Rs. 1,460/- (Rs. One thousand four hundred and sixty only) per month w.e.f. 1st January, 2012 or their date of joining whichever is later.

The above increase in basic salary will be first added to basic salary as on then annual increment will be added on 01.01.2012 in accordance with the revised basic salary scales attached as Annexure-B with this settlement.

It has also been agreed that system of appraisal will be implemented in letter and spirit for the annual increments to be allowed from January 2013. Any change in the existing system if needed will be discussed with the Federation before implementation.

3. ATTENDANCE ALLOWANCE

Attendance Allowance has been increased from Rs. 1,100/- to Rs. 1,300/- per month w.e.f. 01.01.2012. existing terms and conditions for payment of monthly attendance allowance will remain unchanged.

4. ATTENDANCE AWARD – (GOOD ATTENDANCE AWARD)

w.e.f. January 1, 2012 the value of Award has been increased as under. Staff shall be eligible for any one Good Attendance Award only in a calendar year.

Award Criteria (Condition Applicable) Amount of award (any one, per annum)
If a staff does not proceed in a calendar year for more than 5 days sick/casual leave except annual leave of 12 working days or more at a time – for staff working on 06-days basis Increased from Rs. 5,800/- to Rs. 7,200/-
If a staff does not proceed in a calendar year for more than 5 days sick/casual leave except annual leave of 10 days working days or more at a time – for staff working on 05 days basis. Increased from Rs. 5,800/- to Rs. 7,200/-
Should have worked 270 days in a calendar year for staff working on 06 days basis Increased from Rs. 4,550/- to Rs. 5,950/-
Should have worked 215 days in a calendar year for staff working on 05 days basis Increased from Rs. 4,550/- to Rs. 5,950/-
Should have worked 260 days in a calendar year for staff working on 06 days basis Increased from Rs. 4,000/- to Rs. 5,400/-
Should have worked 208 days in a calendar year for staff working on 05 days basis Increased from Rs. 4,000/- to Rs. 5,400/-

5. BREAKFAST/LUNCH/DINNER ALLOWANCE

w.e.f. 1st January, 2012 the above allowances have been increased from Rs. 85/- to Rs. 100/- each for Breakfast/Lunch/Dinner respectively. Other terms and conditions qualifying for the payment of above referred allowance shall remain unchanged.

6. BURIAL EXPENSES

With effect from 1st January, 2012 the existing Burial expenses have been increased from Rs. 60,000/- to Rs. 70,000/-. All other existing conditions relating to this payment remain unchanged.

7. CANTEEN MEAL ALLOWANCE

With effect from 1st January, 2012 the existing Canteen Meal Allowance of Rs. 80/- per day worked will be increased to Rs. 100/- per day worked and will be paid to all permanent staff who are employed at locations where canteen facilities are not available.

8. COLD STORAGE ALLOWANCE

With effect from 01.01.2012 allowance for Forklift/Cold Storage operations deployed to work inside Cold Storage of the Wall’s Ice Cream Factory – Lahore has been increased from Rs. 95/- to Rs. 115/- per shift worked. It has been mutually agreed that no other allowance related with shift work at any location will be affected due to this change.

9. CONVEYANCE ALLOWANCE

With effect from 01.01.2012 it has been agreed to add Rs. 12/- per day worked in the existing conveyance allowance. Thus the revised conveyance allowance for each category of Factory Staff will be as under:

Location SOA, OA & F Grade Rs. Factory Staff of other grade – Rs.
Rahim Yar Khan (06 days basis) From 60 to 72 From 59 to 71
Rahim Yar Khan (05 days basis) From 63 to 75 From 62 to 74
Other location except ICF – Lahore From 62 to 74 From 61 to 73
ICF – Lahore (Availing Co. transport) From 49 to 55 From 49 to 55
ICF – Lahore (Not availing Co. transport) From 62 to 74 From 62 to 74

With effect from the date of signing of this SETTLEMENT conveyance allowance (paid in case of medical reference) will be increased from Rs. 100 to Rs. 150. Other conditions related with this payment as are currently in force would remain unchanged.

10. DEATH & TOTAL PERMANENT DISABILITY COMPENSATION

The heirs of a staff, who dies while in Company’s service are presently entitled to receive compensation of Rs. 800,000. It has now been agreed that w.e.f. 01.01.2012 the amount of death compensation will be increased to Rs. 1,000,000.

In the event of permanent total disablement, the amount will also be increased from Rs. 800,000 to Rs. 1,000,000 w.e.f. 01.01.2012. The payment of compensation for disability will be made upon the conditions where such disability results in loss of job.

The above compensations are inclusive of compensation payable under Section 10(B) of Standing Orders Ordinance, 1968.

11. GUR AND MILK ALLOWANCE

With effect from 01.01.2012 the existing Gur/Milk Allowance paid to eligible staff has been increased from Rs. 28 to Rs. 40 per day worked. Existing terms and conditions will remain unchanged. Keeping in view the peculiar conditions at ICF Lahore, this allowance will be paid on per shift worked basis.

12. RETIREMENT AWARD

The Retirement Award of Rs. 45,000 has been increased to Rs. 60,000 w.e.f. 01.01.2012 and will now be available to employees retiring from Company service after having completed 15 years of service or more.

13. HAJJ ASSISTANCE

10 Hajj seats have been added in the total annual Hajj seats number. The revised location quota will be as under and will be applicable from the Hajj to be performed in year 2013. It has further been agreed 5 seats from each location quota will be reserved for Factory Staff who are 59 years of age for ICF and 55 years of age for RF & KWL at the time of ballot and have not yet been elected in ballot to perform Hajj will be allowed to perform Hajj within the location quota without ballot, in such situation the ballot will be held for the remaining number of seats if any.

In case the employee whose name has been elected in the company ballot is not elected in the Government ballot, he shall refund the amount paid to him for performance of Hajj within a week’s time the amount is refund to him by the Government and or concerned bank. Similarly, in such cases the advance paid facilitate performance of Hajj to an immediate family member shall refund within a week’s time the amount is refunded to him by the Government concerned bank.

All other existing terms and conditions attached with the Hajj benefit will remain unchanged.

Location No. of seats
Head office & Establishment NIL
Rahim Yar Khan Factory 27
Ice Cream Factory – Lahore 16
Khanewal Tea Factory 11

14. MARRIAGE ASSISTANCE TO MINORITIES

In lieu of Hajj assistance which is not available to Non-Muslim, one staff from the minority community shall be paid (child) marriage assistance of Rs. 75,000 subject to the conditions detailed in the settlement signed on 09.10.1994. This amount has now been increased by Rs. 20,000 and thus the revised amount comes to Rs. 95,000. This revised amount will be applicable for the ballot to be held in a year 2013 on national basis. Furthermore, conditions attached to this facility as detailed above will remain unchanged. In addition, Non-Muslim are also allowed to have this facility availed for visit their religious place in lieu of child marriage assistance for which documentary evidence for the visit have to be submitted.

15. HEAVY DUTY ALLOWANCE

Heavy Duty Allowance paid to eligible staff will continue @ Rs 250 per month. Existing terms and conditions of payment will remain unchanged. It has further been agreed that this allowance shall be withdrawn and shall not be compensated once the qualifying conditions do not remain applicable.

16. LEAVE FARE ASSISTANCE

With effect from January 1, 2012 the existing Leave Fare Assistance shall be increased from Rs. 10,250 per annum to Rs. 12,250 per annum.

17. MOTOR CYCLE LOAN & COMPUTER LOAN

With effect from signing of this SETTLEMENT revolving fund for Motor Cycle & Computer Loan has been enhanced as follows:

Fund position Motor Cycle Loan Computer Loan
Present Revolving Fund 4,810,000 1,590,000
Increased amount 1,200,000 NIL
Revised Revolving Fund 6,010,000 1,590,000

Location-wise distribution of the above amounts are as follows:

Location Motor Cycle Loan Computer Loan
Head Office & Est. 65,000 35,000
Rahim Yar Khan Factory 2,415,000 700,000
Ice Cream Factory – Lahore 1,895,000 470,000
Khanewal Tea Factory 1,635,000 385,000
Total 6010,000 1,590,000

Individual loan amount for the purchase of motorcycle Rs. 60,000 and for Computer Rs. 35,000 will remain unchanged.

Conditions applicable for eligibility to loan entitlements and recovery of the loan will be the same as detailed in IR Notice No. 03 dated 12.01.1993 and presently in practice. These conditions will also be applicable to Computer Loan as well. Staff will be entitled to any one of the above two loan at any time.

18. OFFICIATING ALLOWANCE

With effect from 01.01.2012 following officiating allowance based on per day worked will be revised and applicable as under:

From Grad To Grade Rs. (per day worked)
A B From 35 to 44
B C From 41 to 51
C D From 48 to 60
D E From 54 to 68
E F From 60 to 75
F GA From 73 to 91
GA GB From 35 to 44
GB GC From 48 to 60
GC OA From 54 to 68
OA SOA 30% of OA’s basic salary
SOA JM 30% of SOA’s basic salary

Officiating period will be a minimum of one full day for any staff. Existing terms and conditions of payment will remain unchanged.

19. REHABILITATION ALLOWANCE

With effect from 1st January, 2012 the existing Rehabilitation allowance (on retirement) has been increased from Rs. 45,000 to Rs. 60,000. All other existing conditions relating to this payment remain unchanged.

20. SCHOLARSHIP FOR CHILDREN OF EMPLOYEES

With effect from July 01, 2012 the scholarship amount, which at present is Rs. 1,800 per month, has been increased to Rs. 2,000 per month. The location wise quota given below will remain unchanged.

For the year 2012 Nos.
Head office & Establishment 4
Rahim Yar Khan Factory 39
Ice Cream Factory – Lahore 25
Khanewal Tea Factory 22
TOTAL 90

If at any location, any seat is available, scholarship for second child will be considered in accordance with the existing rules.

If at any location number of scholarships availed are less than the allotted quota, balance number will be available for other locations.

It has been also agreed that within the quota mentioned above, scholarship will also be allowed for masters’ degree and or professional qualification undertaken in government approved universities. The period of scholarship will be four years, renewable each year on production of documentary evidence that student has passed in the class in which he was studying.

Other terms and conditions relating to eligibility to the Scholarship and availing this facility will continue to be the same as of now.

Five scholarships introduced w.e.f. 1st July, 2006 for SPECIAL CHILDREN will continue and these scholarships will be on national basis and benefits will be in line with the existing scheme. The selection of special children will be made in consultation with C.B.A.

21. SHIFT ALLOWANCE

With effect from 01.01.2012 Shift Allowance has been increased as under based on per day worked:

Staff working in 02 shifts – increased from Rs. 40 to Rs. 50 per day worked

Staff working in 03 shifts – increased from Rs. 47 to Rs. 57 per day worked

Other terms and conditions qualifying for the payment of above referred allowance shall remain unchanged.

22. SPECIAL ALLOWANCE FOR FACTORY CLERICAL (SOA/OA) STAFF WORKING ON 06 DAYS BASIS

With effect from 01.01.2012 the existing special allowance paid to eligible SOAs and OAs will be increased as follows:

Senior Office Assistant (SOA) – increased from Rs. 955 to Rs. 1,205 per month

Office Assistant (OA) – increased from Rs. 870 to Rs. 1,120 per month

23. TRAVELLING ENTITLEMENTS AND DAILY ALLOWANCE

The following shall be the revised travelling entitlements & daily allowance with effective from 01.01.2012 for the categories of factory staff.

Grades of Factory Staff Travelling Entitlement (Railway) Daily Allowance
Union office bearers ACC Sleeper Rs. 4,800 per day
SOA, OA, F & E grades Lower AC Rs. 2,800 per day
All other grades First class sleeper Rs. 2,800 per day
In case of sickness when journey is approved by FMO (for all grades) Lower AC Rs. 2,800 per day

24. MEAL ALLOWANCE IN CASE OF HOSPITALIZATION

In cases of hospitalization in hospitals where meals are not provided, presently meal allowance is paid @ Rs. 400.00 per day, w.e.f. the date of signing of this SETTLEMENT, this allowance will be increased from Rs. 400 to Rs. 500 per day.

25. TEA ALLOWANCE

With effect from January 1, 2012 Tea allowance available for Staff where one cup of tea is provided in a day free of cost & not more has been increased from Rs. 30 to Rs. 37 per day worked. Other existing terms and conditions governing this allowance applicability will remain unchanged.

26. TONGA ALLOWANCE

With effect from January 1, 2012 Toga allowance paid to children of RYK factory staff residing in the estate will be increased from Rs. 400 per month to Rs. 500 per month. Other terms and conditions applicable for eligibility and payment of this allowance will remain unchanged.

27. UTILITY ALLOWANCE

With effect from January 1, 2012 utility allowance has been increase from 38% of basic salary to 45% of basic salary.

28. WHEAT ALLOWANCE

With effect from January 1, 2012 existing wheat allowance is increased from Rs. 700 to Rs. 1,000 per month.

29. DRIVERS’ ALLOWANCE

The existing allowance paid @ Rs. 160 p.m. will be increased to Rs. 300 per month w.e.f. January 1, 2012.

30. 15 YEARS & 25 YEARS LONG SERVICE AWARD

It has been agreed that the value of 15 years award will be increased from Rs. 15,000 to Rs. 20,000 and value of 25 years award will be increased from Rs. 35,000 to Rs. 38,000. These increases will be applicable to employees who will be completing 15 & 25 years service in 2012 and will be given awards in 2013.

31. ESSENTIAL SERVICES ALLOWANCE

The existing allowance paid at ICF to eligible employees @ Rs. 1,000 per month has been increased to Rs. 1,250 per month w.e.f. 1st January, 2012.

F. GENERAL CLAUSE

This SETTLEMENT shall remain in force and binding on the parties up to December 31, 2013 and after the expiry of the aforesaid date it shall continue to be binding until the expiry of two months from the date on which either party inform the other party in writing in writing of its intention no longer to be bound by the Settlement.

It is agreed between the parties that this SETTLEMENT has finally settled all the demands included Charter of Demands (Annexure A-1 & A-2 hereto) and also all the matters raised or could have been raised and discussed in the dialogue proceedings and the Federation agrees and undertakes that it will not raise during the aforesaid operation of this SETTLEMENT.

a. Any of the demands contained in Annexure A-1 & A-2 and / or resolved by the SETTLEMENT or resolved in any other manner whatsoever or which is deemed to have been dropped or withdrawn and/or.

b. Any further or fresh demand involving financial implications for the company except Profit Bonus for the financial year from January – December 2012.

All other conditions of employment save as modified herein shall continue to be in force together with any right guaranteed under Law.

In increase given in wages by the Government to the workers during the operative period of this Settlement and if Government so provides that such increase in wages will be adjusted against the amounts given by the employers under a Settlement during the said prescribed period the same will be adjusted by the Company.

THIS SETTLEMENT has been executed on this 26th day of February, 2013 at Islamabad and representatives of both the parties hereto set their respective signatures as a token of acceptance.

*****

Memorandum of Settlement between Unilever Pakistan Limited and Unilever Employees’ Federation of Pakistan - 2012

Start date: → 2012-01-01
End date: → 2013-12-31
Ratified by: → Other
Ratified on: → 2013-03-26
Name industry: → Manufacturing
Name industry: → Manufacture of beverages
Public/private sector: → In the private sector
Concluded by:
Name company: →  Unilever Pakistan Limited
Names trade unions: →  Unilever Employees’ Federation of Pakistan

WORK AND FAMILY ARRANGEMENTS

Job security after maternity leave: → 
Prohibition of discrimination related to maternity: → 
Prohibition to oblige pregnant or breastfeeding workers to perform dangerous or unhealthy work: → 
Workplace risk assessment on the safety and health of pregnant or nursing women: → 
Availability of alternatives to dangerous or unhealthy work for pregnant or breastfeeding workers: → 
Time off for prenatal medical examinations: → 
Prohibition of screening for pregnancy before regularising non-standard workers: → 
Prohibition of screening for pregnancy before promotion: → 
Facilities for nursing mothers: → No
Employer-provided childcare facilities: → No
Employer-subsidized childcare facilities: → No
Monetary tuition/subsidy for children's education: → Yes

WAGES

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

Wage increase

Once only extra payment

Once only extra payment: → PKR  %
Once only extra payment due to company performance: → Yes

Extra payment for annual leave

Extra payment for annual leave: → PKR 12250.0

Allowance for commuting work

Allowance for commuting work: → PKR 1650.0 per month

Allowance for seniority

Allowance for seniority: → PKR 20000.0 per month
Allowance for seniority after: → 15 years of service

Meal vouchers

Meal allowances provided: → Yes
→ 100.0 per meal
Free legal assistance: → No
Loading...