MEMORANDUM OF SETTLEMENT BETWEEN PAKISTAN GUM INDUSTRIES (PRIVATE) LTD AND PAKISTAN GUM INDUSTRIES JEEWAY LABOUR UNION - 2013

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[UNDER SECTION 35(2) OF THE SINDH INDUSTRIAL RELATIONS ACT 2010 READ WITH RULE 71 OF THE INDUSTRIAL RELATIONS (SINDH) RULES, 1973].

NAME OF PARTIES:

1. M/s. Pakistan Gum Industries (Private) Ltd.

B-30, SITE, Estate Avenue, Karachi - (here in after referred to as the ‘Company’)

2. The Pakistan Gum Industries Jeeway Labour Union,

Karachi, D-Block, Shershah Colony, Karachi - (hereinafter referred to as the Collective Bargaining Agent i.e. to say (C.B.A)

REPRESENTING EMPLOYER

1. Mr. Ali Haji - Director

2. Mr. Adnan S. Haji - Chief Finance Officer

3. Mr. Shahid Jalal

Factory Manager

REPRESENTING WORKERS

1. Mr. Muhammad Naseer - President

2. Mr. Khaista Muhammad - Vice President

3. Mr. Muhammad Ajaz - General Secretary

4. Mr. Muhammad Naseem - Joint Secretary

5. Mr. Gul Muhammad Khan - Propaganda Secretary

6. Mr. Hazrat Hassan - Treasurer

SHORT RECITAL OF THE CASE

By its communication date 1st July, 2013 given under section 35(1) of the Sindh Industrial Relations, Act 2013 the C.B.A submitted to the company a Charter of Demands. In pursuance of this communication, several meetings were held between the parties. The period of bilateral negotiations was extended by mutual consent from time to time. Ultimately the parties have amicably resolved their differences accordingly this settlement is being executed between the parties.

A copy of the said Notice given by the C.B.A under Section 35(1) along with the Charter of Demands submitted there with are annexed hereto and marked ‘A’ & ‘B’ respectively.

TERMS OF AGREEMENT

As a result of discussions held between the parties keeping in mind the rise in the cost of living and in full and final settlement of all the demands contained in Annexure ‘B’ hereto, the Company and the C.B.A agree follows :-

1.

That all permanent workers in service as on 01-07-2013 will receive as increase of Rs. 950.00 per month in their basic wages/salaries.

2.

It has been agreed that the workers will be given an increase in House Rent Allowance of Rs. 730.00 per month.

3.

It has been agreed that the workers will be given an increase in Canteen Allowance of Rs. 225.00 per month; the said payment will be made to those workers who are getting the said allowance presently.

4.

It has been agreed that every permanent worker will be paid Rs. 225.00 per year as subsidy/assistance for purchasing a pair of shoes & socks. The subsidy/assistance for 2013-14 and 2014-15 shall be paid on or before 28th February, 2014 and 28th February, 2015. It has also been agreed that every permanent workman will continue to be paid Rs. 300.00 every two years as subsidy/assistance for purchasing a woolen jersey. This payment will be made on or before 31st October, 2014.

5.

The Gur Allowance presently being paid is hereby increased by Rs. 180.00 per month in respect of those categories who are getting the said allowance.

6.

The washing allowance is hereby increased by Rs. 180.00 per month in respect of all those categories who are getting the said allowance.

7.

It has been agreed that the workers will be given 4 cakes of Safe Guard Soap (small) per month.

Similarly, the workers will continue to get 2 towels per year as per existing practices.

8.

The company has agreed to declare and pay after the close of each financial year ending on 30-06-2014 and 30-06-2015 covered by this settlement, a profit bonus, the bonus thus payable will be inclusive of that payable under Standing Order 10-C and will be paid keeping in view the profits made by the Company in the relevant financial years.

Such profit bonus will be paid subject to the following conditions: -

a. If net profit as per balance sheet of the Company is more than Rs. 50 Lacs, bonus equivalent to six months basic wages of the workers concerned will be paid.

b. If net profit as per the balance sheet is Rs. 50 lacs or less, then bonus equivalent to three months basic wages of the workers concerned will be paid.

c. Full bonus due as above will be paid to those workers who have rendered 12 month’s continuous service during the bonus year.

d. Bonus will also be payable on a pro-rata basis to those workmen who have rendered service for 6 months or more in the relevant financial year. But no such worker will get less than the bonus amount payable in accordance with S.O. 10-C.

e. Workers who have rendered 90 days or more service but less than 6 months service in the relevant financial year will only be entitled to receive 10-C bonus.

f. With a view controversy in the matter it is specifically agreed that the above formula mutually agreed upon by the parties for payment of profit Bonus is more favorable in as much as the total bonus amount payable as above and the ex-gratia amount payable as per Sub-Clause (g) hereunder is much more than the bonus amount strictly payable in accordance with S.O. 10-C which includes Cost of Living allowance. Accordingly, it is agreed that by the above clauses the parties have modified S.O. 10-C to the advantage of the workers and therefore no claim will be made for payment of additional Profit Bonus with reference to the Employees Cost of Living (Relief) Act, 1973.

g. On payment of Bonus as above those workers who have rendered continuous service of 12 months in the Bonus year 2013-14 and 2014-15 i.e. the financial year of the company ending on 30-06-2014 and 30-06-2015 will be paid a sum of Rs. 660/- by way of an ex-gratia amount. However, those workers who have rendered 6 months or more service in the Bonus year will be paid the said amount on pro-rata basis. But it is reiterated that such payment will not be treated or cited as a precedent for the future.

9.

The gratuity will be paid according to the relevant provision of the law.

10.

All permanent male workers will continue to be given 3 pairs of uniforms yearly.

11.

The attendance allowance payable to the eligible workers will be increased by Rs. 185.00 per month and will continue to be paid on the same terms and conditions as are presently in force in accordance with the settlement dated 30th August, 1973.

12.

The conveyance allowance will be increased by Rs. 350.00 per month.

13.

The number of Earned Leaves, Sick Leaves and Casual Leaves will be continued as same. The arrangement regarding encashment of un-availed leaves will be as per Law.

14.

The rate of annual increment will be increased Rs. 20.00 in respect of the all concern workers.

GENERAL

1. The financial benefits will be payable w.e.f. 01-07-2013 to those employees only who are in service of the Company on the date of execution of Settlement. The Company and the C.B.A agree that no closed accounts relating to any period prior to the execution of the Settlement under any head/account and for any reason whatsoever will be reopened by the C.B.A/Workers. However, it has been agreed that new workers employed by the Company hereafter will be paid a gross salary of Rs. 10,000.00 per month only, which will include all government allowance, Federal and Provincial. They will thus not be entitled to any of the allowance/Basic Wages agreed under this Settlement. However, if they become permanent, their Basic wages will be increased by Rs. 500.00 per month.

2. The financial benefits have been granted under this settlement as a relief due to the rise in the cost of living.

3. All other conditions of Employment and benefits available to employees will continue to remain the same except where modified, amended or altered through this agreement.

4. Except as agreed above all demands in other respects as contained in annexure ‘B’ hereto deemed to have been withdrawn/dropped by the C.B.A

5. This Settlement shall become effective from 01-07-2013 and shall be binding on the parties up till 30-06-2015 and the C.B.A undertakes and declares that during the period of operation of the Settlement as aforesaid it will not raise.

a. Any of the demands resolved, dropped or withdrawn herein and/or

b. Any other demand having financial implications for the Company.

6. The C.B.A agrees and declares that any change in the office bearers of the Union or the formation of any other Union or the change in the name of the present Union or its membership with any Federation or any other Union emerging as C.B.A will not affect the binding nature of this Settlement which shall continue to remain in operation as aforesaid, and this settlement shall also be binding on new workers employed by the Company hereafter, subject to what has been agreed herein.

7. The C.B.A/Workers undertake to co-operate with the company in maintaining discipline, industrial peace and in increasing production. The Management will continue to cooperate with the Union in resolving day to day dispute. The better working conditions will continue to be maintained by the Company and C.B.A

8. IN WITNESS WHEREOF the parties as aforesaid have singed hereunder at Karachi this 04th day of December, 2013.

*****

Pakistan Gum Industries Pvt Ltd - 2013

Start date: → 2013-07-01
End date: → 2015-06-30
Ratified by: → Other
Ratified on: → 2013-07-01
Name industry: → Manufacturing
Name industry: → Manufacture of textiles
Public/private sector: → In the private sector
Concluded by:
Name company: →  Pakistan Gum Industries (Private) Ltd
Names trade unions: →  Pakistan Gum Industries Jeeway Labour Union

SICKNESS AND DISABILITY

Maximum days for paid sickness leave: → Not specified days
Provisions regarding return to work after long-term illness, e.g. cancer treatment: → No
Paid menstruation leave: → No
Pay in case of disability due to work accident: → No

WAGES

Wages determined by means of pay scales: → 
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → PKR 950.0

Once only extra payment

Once only extra payment due to company performance: → No

Allowance for commuting work

Meal vouchers

Meal allowances provided: → Yes
→ 225.0 per meal
Free legal assistance: → No
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