MEMORANDUM OF SETTLEMENT BETWEEN RECKITT BENCKISER PAKISTAN LIMITED AND RECKITT BENCKISER PAKISTAN WORKER UNION - 2012

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(Under Section 42 read Section 46(4) and Section 2(xxv) of the Industrial Relations (R&A) Act, 2010)

NAME OF PARTIES

1. Reckitt Benckiser Pakistan Limited

QM Building, 9th Floor, Plot No. BC 15, Block 7, Clifton, Karachi

2. RB Pakistan Workers Union

Sindh Labour Welfare Centre, “D” Block, Shershah Colony, Karachi

REPRESENTING EMPLOYERS

1. Mr. Syed Fida-e-Asghar Zaidi - (Factory Manager Pharma)

2. Mr. Saad Islam - (Factory Manager House Hold)

3. Mr. Sameer Suleman Usman - (Supply Finance Manager)

4. Mr. Muhammad Junaid Ghaffar - (Compensation & Benefits Manager)

5. Mr. Syed Shahid Ali - (Production Manager-HM)

REPRESENTING WORKERS

1. Mr. Liaquat Khan - (President)

2. Mr. Mukhtar Awan - (General Secretary)

3. Mr. Muhammad Ashraf - (Vice President)

4. Mr. Sultan Jan - (Vice President)

5. Ms. Yasmeen Shabbir - (Joint Secretary)

6. Mr. Faisal Saeed - (Treasurer)

7. Abdul Shakoor - (Vice President)

SHORT RECITAL OF THE CASE

Where RB Pakistan Workers’ Union Sindh hereinafter referred to as the “Union” in its capacity as Collective Bargaining Agent served a Charter of Demands dated 1st January, 2012, under Section 42(1) of the IR(R&A) Act, 2010 on the Management of Reckitt Benckiser Pakistan Limited, hereinafter referred to as the “Company” and the Company also served a Charter of Demands dated 10th January, 2012, on the Union under the said Act pertaining to its Factory located at Plot No. F/18, SITE, Karachi. Photostat copies of the aforesaid two Charters of Demands are annexed herewith and are marked A & B respectively. Thereafter the C.B.A served a strike notice dated 12.1.2012 on the Management under Section 42(3) of the said Act. Photostat copy of the aforesaid strike notice is annexed herewith and is marked C. Upon receipt of the said strike notice the Conciliator issued letter date 14.1.2012. Conciliator took place on both the Charter of Demands from time to time and that as a result of these meetings and discussions on both the Charter of Demands, the following Settlement/Agreement has been reached:

TERMS OF SETTLEMENT

The Union and the Company have signed this Settlement in full and final Settlement of all the Demands submitted by them through Annexure ‘A’, ‘B’, & ‘C’ hereto as under:

1. Basic Wages

The Company has agreed to increase the existing basic wages at a flat rate on a one time basis by Rs. 767/- (Rupees Seven Hundred Sixty Seven only). (After increment for the year 2012) effective 1st January, 2012.

Provided that the aforesaid increase shall be adjusted against any increase toward Cost of Living that is allowed and/or granted hereafter by the Federal and/or Provincial Governments by an enactment or otherwise, if such adjustment is permissible under the law.

2. House Rent Allowance

The Company has agreed to increase the existing House Rent Allowance by Rs. 450/- (Rupees Four Hundred Fifty only) per month. Accordingly, the revised House Rent Allowance effective 1st January 2012, would be Rs. 4,285/- (Rupees Four Thousand Two Hundred Eight Five only) per month.

3. Conveyance Allowance

The Company has agreed to increase the existing Conveyance Allowance of all male and female workers by Rs. 300/- (Rupees Three Hundred only). Accordingly, the revised Conveyance Allowance effective January 1st, 2012 would be Rs. 2,150/- (Rupees Two Thousand One Hundred Fifty only) per month for male stop and Rs. Rs. 2,060/- (Rupees Two Thousand Sixty only) for female staff. Other terms and conditions shall remain the same.

4. Utility Allowance

The Company has agreed to increase the existing Utility Allowance by Rs. 125/- per month (Rupees One Hundred Twenty Five only). Accordingly, the revised amount of Utility Allowance would be Rs. 800/- (Rupees Eight Hundred only) per month effective 1st January, 2012.

5. Attendance Bonus

The Company has agreed to increase the existing Attendance Bonus by Rs. 700/- per month (Rupees Seven Hundred only). Accordingly, the revised amount of Attendance Bonus would be (higher side) Rs. 1,020/- (Rupees One Thousand Twenty only) per month from January, 2012. Other terms and conditions shall remain the same.

6. Common Annual Increment Date

Currently we have three group of employees so far as the annual increment is Concerned i.e. one group of workers are given the annual increment from January, the second group from April & the third group from July. The management agreed that in order to have common date of annual increment for all the workers, the workers having increment date of 1st April & 1st July will be given prorata increment from January, 2012. For example, if the increment % is 9 for a worker who is entitled to increment from April will get 6.75% from January & the one who is entitled to increment from July will get 4.5% from January. This is applicable for 2012 annual increment only and from 1st January, 2013 all the workers will be given annual increment on the performance based %. (………….)

7. Group Life Insurance Coverage Revision

The Group Life coverage for each worker has been revised from Rs. 500,000/- to Rs. 700,000/- w.e.f. January 1st, 2013.

8. Medical through Health Insurance Company

It is agreed that w.e.f. January 1st, 2013 all the workers, their spouse & Children will be provided Medical coverage for hospitalization through Health Insurance company and an allowance of Rs. 800/- per worker per month will be given in monthly salary as OPD allowance. In view of the this the direct medical facility available to 34 workers and their families will be withdrawn and the RB surgical Scheme facility available for 154 workers and their families will also be withdrawn.

9. Productivity

In order to cope with the challenges posed by increased commodity prices and increased energy cost; Company needs a strong commitment and result from C.B.A to increase productivity on all lines. A minimum out put on all production lines is agreed with C.B.A and is mentioned in annexure ‘1’.

• Machine break downs due to any engineering problem or material shortage will be considered while monitoring the per shift output.

• A ‘Productivity Committee’ is formed, which has the representations of the both Company & Union. Production of all lines will be monitored as per this agreed output by the productivity committee fortnightly. Permanent members of the committee will be Factory Manager House Hold & Factory, Manager Health Care, Production Manager – House Hold and Production Manager Health Care.

& respective Engineering Managers, Plant HR Manager & the General Secretary C.B.A. Respective people of the production line can be invited into the review meeting whenever required.

• Any modification/work design change in the production lines, which results into the increase in Production, will be considered and the per shift output will be increased accordingly.

• In the case of disagreement, the matter under consideration will be referred to the General Secretary and the Supply Chain Director who would give a patient hearing to both the sides and their decision in the matter will be final.

10. Employment

It has been decided that the discussions on the employment of Son/Daughter of the retired employee will continue.

11. Manning

Total requirement for Factory manning based on current work load is 188 permanent workers. It may change depending upon the requirement.

12. General

12.1 That both the Union and the Company have agreed to accept above offers in full and final settlement of all their demands contained in Annexure ‘A’, ‘B’ & ‘C’ respectively for the operational period of this Settlement.

12.2 That it is mutually agreed that the benefits agreed under Settlement shall apply to all the permanent workers of the factory located at F/18, SITE, Karachi and shall be effective from 1st January, 2012 unless provided otherwise in the relevant clauses of this Settlement.

12.3 That it is further agreed that the Settlement shall be effective from 1st January, 2012 for a period of two years expiring on 31st December, 2013 during which period the Company and the Union undertakes not to raise any demands financially or otherwise having direct or indirect financial implications for the Company.

12.4 That the Union and the Company further undertake to maintain industrial peace, not to take any action on account of legal Trade Union activities, not to cause cessation/go slow of work on any pretext including canteen operation and wherever possible increase the level of productivity, efficiency when based on mechanical improvements, process modification or new techniques as and when these are implemented. The Union also undertakes to impress upon workers to maintain desired quality standards, adhere to GMP requirements so as to vie for awards for safe and efficient work facility.

12.5 All other terms and conditions of employment already existing but not modified through this Settlement shall continue.

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Reckitt Benckiser Ltd - 2012

Start date: → 2012-01-01
End date: → 2013-12-31
Ratified by: → Other
Ratified on: → 2012-01-01
Name industry: → Manufacturing
Name industry: → Manufacture of basic pharmaceutical products and pharmaceutical preparations
Public/private sector: → In the private sector
Concluded by:
Name company: →  Reckitt Benckiser Pakistan Limited
Names trade unions: →  Reckitt Benckiser Pakistan employee union

WAGES

Wages determined by means of pay scales: → No
Provision that minimum wages set by the government have to be respected: → No
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → PKR 767.0
Wage increase starts: → 2012-01

Once only extra payment

Once only extra payment: → PKR 700.0 %
Once only extra payment due to company performance: → No
Once only extra payment takes place: → 2012-01

Allowance for commuting work

Allowance for commuting work: → PKR 2150.0 per month

Meal vouchers

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