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Feroze1888 Mills Limited - 2012

Start date: → 2012-07-01
End date: → 2014-06-30
Name industry: → Manufacturing
Name industry: → Manufacture of textiles
Public/private sector: → In the private sector
Concluded by:
Name company: → Feroze1888 Mills Limited
Names trade unions: → Feroze1888 Mazdoor Dost Union

GENDER EQUALITY ISSUES

Equal pay for work of equal value: → No
Discrimination at work clauses: → No
Equal opportunities for promotion for women: → No
Equal opportunities for training and retraining for women: → No
Gender equality trade union officer at the workplace: → No
Clauses on sexual harassment at work: → No
Clauses on violence at work: → Yes
Special leave for workers subjected to domestic or intimate partner violence: → No
Support for women workers with disabilities: → No
Gender equality monitoring: → 

WORKING HOURS, SCHEDULES AND HOLIDAYS

Paid annual leave: → 14.0 days
Paid annual leave: → 2.0 weeks
Provisions on flexible work arrangements: → 

WAGES

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

Wage increase

Wage increase: → 5.0 %
Wage increase starts: → 2012-07

Meal vouchers

Meal vouchers provided: → Yes
Meal allowances provided: → No
Free legal assistance: → 
Nuovo

MEMORANDUM OF SETTLEMENT

Under and Read with Section 2(xxix) & 35 (2) of Industrial Relations Act 2012

1st July 2012 to 30th June 2014

Name of parties:

1. Feroze1888 Mills Limited, having its registered office at Plot No. H-23/4A, Scheme No.3, Landhi industrial Area, Karachi, hereinafter referred to as “the Employer” (which expression wherever the context so admits shall mean and include its successors and assigns)

AND

2.Feroze1888 Mazdoor Dost Union, an Industry-wise Registered Trade Union having Registration No. 19/2009 dated 17.08.2009 and certified as CBA by the NIRC vide Certificate No. 15/2009 dated 16 09.2009 having its office at 11- 23/A4, Scheme No.3, Landhi Industrial Area, Karachi-22, hereinafter referred to as “the CBA” (which expression wherever the context so admit shall include its successors, assigns and all permanent workmen in actual employment or to be employed by the Employer)

WHEREAS in terms of Scheme of Arrangements / Amalgamation approved by the Honourable Sindh High Court vide Orders dated 24.09.2012, the legal entity of Feroze Textile Industries (Pvt.) Limited stood merged and vests into Feroze1888 Mills Limited, which is the surviving entity.

AND WHEREAS the former Feroze Textile Industries (Pvt.) Limited, consisted of the following factories/establishments which are now part of Feroze 1888 Mills Limited

1.B-4/A, SITE, Karachi (Head Office).

2.C-3, SITE, Karachi.

3.A-5/D, SITE, Karachi.

4.F-125, SITE, Karachi.

5.F-342, SITE, Karachi. 6S-81, Deh Machko, Tappo Gabopat, Northern by pass, Karachi. 7.D-14, HITE, Hub. Baluchistan.

Negotiating Teams

Representing the Employer Representing the CBA
1. Mr. Abdul Aleem 1. Mr. Sher Muhammad
2. Mr. Muhammad Shahid 2. Mr. Husain Shah
3. Kazi Anisur Rehman 3. Malik Muhammad Nazeer

Short Recital of the Case

WHEREAS the CBA had served a Charter of Demand dated 23.12.2011 received by the Management on 30.12.2011 U/s 35 (I) of IRA 2012.

AND WHEREAS Bilateral Negotiations were held between the parties on both the aforesaid Charter of Demands; the settlement was required to be renewed with effect from 1st of December 2011, as per previous settlement increments were awarded with effect from December 2009. The management again awarded 10 % increments from 1st of July 2010 and again 13 % from July 2011. Keeping in view the increment history, it was mutually agreed between the parties that the increments will be awarded from 1st of July 2012, it was further agreed that the effective period of the settlement will be from July 2012 to June 2014 to meet the financial period of the Company which starts from July.

AND WHEREAS the CBA pleaded inflation and rise in the cost of living as justification for their Charter of Demands.

It is also considered necessary to bring on record that the overall package settlement on the aforesaid Charter of Demands has been rechecked keeping in view of inflation and rise in the cost of living, rationalization of facilities, capping of hidden costs and the assurance given to the Employer that the workers shall work with more devotion and commitment and shall enhance their productivity;

AND WHEREAS alter detailed deliberations and exhaustive discussion and negotiations, the Management and the CBA have arrived at a Settlement being in full and final settlement of all the demands contained in the aforesaid Charter of demands, which is noted as settled against each of the Demand:

Terms of the Settlement:

GENERAL:

1.It is hereby agreed that the Terms of this Memorandum of Settlement shall be effective for Two years i.e. from July 2012 to June 2014.

2.It is also agreed that during the operation of the Settlement, Feroze1888 Mazdoor Dost Union and/or any succeeding CBA shall not raise any demand(s), financial or otherwise, on the Employer.

IN WITNESS WHEREOF, the parties above named have signed this Memorandum of Settlement at Karachi, on 12th day June 2012.

Representing the Employer Representing the CBA
1. Mr. Abdul Aleem 1. Mr. Sher Muhammad

Demand No. 1 (Haj Leave)

This demand has been withdrawn by the Union, however the management agreed to grant Haj Leave with pay within the limit of 40 days to a worker with minimum three years service, who proceeds to perform Haj at his own. This benefit will be permissible only once in the total employment period of a worker.

Demand No. 2 (CIoths on Eids)

It was mutually agreed that on Eidul Fiter cloth will be given to the workers who have completed 3 months employment with the Company.

Demand No. 3 (Transport)

This demand has been withdrawn by the Union.

Demand No. 4 (Attendance Allowance)

It was mutually agreed that the attendance allowance will be paid in various departments. The list of the departments where the attendance allowance will be applicable and rates of attendance allowance is annexed hereto and marked as Annexure “A".

Demand No.5 (Increments)

The Management agreed for 5 % raise in the basic wages of workers with effect from 1st July 2012.

Demand No.6 (Production Allowance)

It was mutually agreed to motivate and increase the production, production allowance will be given to weaving, sizing and warping departments as per Incentive Plan annexed hereto as Annexure “A/1" & “A/2”

Demand No.7 A, B, C & D (Leaves)

A, B, C. It was mutually agreed that 14 days Earned Leave, 10 days Casual Leave and 8 days Sick leave with pay per annum will be allowed to the workers.

D. It was agreed that THREE days leave with pay will be allowed to worker in case of death of his immediate family member (parents, spouse, children, brother or sister) weekly or public holidays falling in between or at the end will be excluded.

Demand No.8 (Loans)

This demand has been withdrawn by the Union.

Demand No.9 (Dependence Help)

It was mutually agreed that in case death of worker the Management will pay an Amount of Rs. 10000/- to the dependent of worker as funeral expenses.

Demand No.10 (Marriage Grant)

This demand has been withdrawn by the Union

Demand No. 11A, B & C (Canteen)

The Union and Management mutually agreed. The Management assured to improve food and furniture quality, to provide sufficient crockery and to provide food against reasonable rates

Demand No. 12 A & B (Uniform)

A. The Management agreed to provide 2 pairs uniform and 1 pair shoes to Drivers, Peons, Security & Safety Guards and Maintenance workers per annum.

B. This demand has been withdrawn by the Union.

Demand No. 13 (Quilt/Blanket)

The Management agreed to provide quilt to workers with minimum 3 months service with the Company, well before the start of winter.

Demand No. 14 A to E (Facilities for Union)

A. Mutually agreed.

B. Mutually agreed.

C. This demand has been withdrawn by the Union.

D.It was agreed that the Jasarat news paper will be arranged for Union office only for Monday.

E.This demand has been withdrawn by the Union.

Demand No. 15 A to D (Medical facilities)

A.Mutually agreed to arrange Dispensary in the Factory however Doctor will be available once in a week.

B.Mutually agreed that the Management will replace Ambulance with necessary accessories.

C.Management agreed to treat injured worker on duly or to insure payment of leave encashment front Sindh / Baluchistan Employees Social Security Institute.

D. Mutually agreed once a year.

Demand No. 16 A to G (Miscellaneous)

A Mutually agreed once per annum.

B. This demand has been withdrawn by the union.

C. It was mutually agreed that the towels will be provided on concessional rates to

D. Mutually agreed once a year.

E. Mutually agreed.

F. Mutually agreed.

G. Mutually agreed.

GENERAL TERMS AND CONDITIONS

1.

It has been specifically agreed by both parties that this settlement shall continue to remain in force during the operative period of this settlement, which is valid from 1st July 2012 and shall continue to remain operative and valid up to and after 30th June 2014, and until it is replaced by fresh settlement.

2.

The Union hereby binds it self and all the workers of the Company that it shall not raise any demand having non-financial and/or of financial implications for the Company or re-agitate any of the demands which has been finally dropped by the Union or which has not been considered in this settlement, during the operative period of this settlement.

3.

In token of acceptance of various demands of the Union, the Company expects harmonious relationship between the workers and the Management of the Company to avoid any industrial unrest so as to achieve the corporate objectives of optimum production, minimum wastage and higher profitability which will enable the Company to honour and full fill the aforesaid terms and conditions of the settlement.

UNDERTAKING BY THE UNION/WORKERS

1.

The union has undertaken that it will render full co-operation to the management of the Company in the matters of discipline and good conduct of all the workers.

2.

The Union further undertaken on behalf all the workers that the workers will not leave their places of duty/work during duty hours to sleep inside or outside the mill premises or otherwise cause willful damage to production either in its quality or product or damage to machinery or raw material and/or reduction in normal production efficiency. The Union has agreed to cooperate with the company to improve the production.

3.

The Union has undertaken and assured the Management of the Company that it will not allow any worker or Union office bearer to indulge in any form of threat, physical assault, pressure, abuse and or otherwise commit any other unfair labour practice either inside the mill premises, either during the duty hours or when not on duty.

4.

The Union has undertaken on behalf of all the workers that they will not interfere in any way or prevent the Management of the Company or other personnel from implementing Polices of the Company which may be introduced from time to time.

5.

The Union has undertaken not to interfere in any way with the Company directions or right to employ or not to employ workers and / or members of the staff and to transfer them from one Section or Department or Location to another and / or terminate the services by way of discharge, dismissal, retrenchment or to effect lay-off and / or otherwise take such disciplinary action against any workman found guilty of an act of misconduct under Schedule 15(3) of the Standing Order Ordinance and/or committing any criminal offence which is penal in nature of the Criminal Procedure Code and / or of Pakistan Penal Code.

6.

The Union has undertaken to keep the industrial atmosphere peaceful and to cooperate fully and efficiently with the Management in its effort to increase efficiency, productivity and economy of the Company.

7.

The Union has undertaken that during the operative period of this settlement there shall be no illegal strike, work stoppage and curtailment of production for any reason or cause arising out of the terms and conditions of this settlement and/or for any cause of any nature whatsoever.

8.

The Union has undertaken not to hold any unlawful gate meetings or gatherings in the premises of the Mills raising and/or painting of slogans and/or using abusive languages and/or instigating the workers against the Management of the Company.

9.

The settlement shall become effective and come into operation with effect from 01.07.2012 and shall remain operative and binding upon the parties for a period up to 20.06.2014 and there after shall continue to be binding and effective upon the EXPIRY of two months from the date of which either party hereto informs the other in writing of its intention no longer to be bound by this settlement.

REPRESENTING THE EMPLOYERS REPRESENTING THE WORKERS
MR. ABDUL ALEEM CHIEF FINANCIAL OFFICER MR. SHER MUHAMMAD PRESIDENT
MR. MUHAMMAD SHAHID GM & FACTORY MANAGER MR. HUSAIN SHAH GENERAL SECRETARY
KAZI ANISUR REHMAN

SENIOR MANAGER LEGAL AFFAIRS

MALIK MUHAMMAD NAZEER JOINT SECRETARY

CRITERIA FOR ATTENDANCE ALLOWANCE

Department Weaving D&P

QC Dyeing

Central Cutting

Stitching & Packing
Designations

&

Criteria

Asst. Wrapper, Asst. Weaver, Back Sizer, Beam Carrier, Beam Coolly Beam Getter, Creel Boy, Recipe Mixer (Rs. 1000)

B.D. Opt., Sizer, T,F,O Opt., Weaver, Wrapper, Jacquard Weaver (Rs. 2000)

Over Lock Operator (Rs. 2000)

Operator

(Rs. 2000)

Trainee Operator/Helpers (Rs. 1000)

Q.C. Checker

(Rs. 1000)

Helper (Rs. 500)

BD Operator

(Rs. 2000)

Singer Operator (Rs. 2000)

For P-1 Grade

(Rs. 500)

For P-2 & Above

(Rs. 1000)

INCENTIVE PLAN FOR VAMATEX WEAVING

Average RPM = 310

As per efficiency = 65%

Weavers:

- Target picks for shift "A" is 90675 picks/loom. (07.30 am to 03.00 pm)

- Target picks for shift "B" is 90675 picks/loom. (03:00 pm to 10:30 Pm.)

- Target picks for shift "C" is 108810 picks/loom (10.30 pm to 07.30 am).

- Looms will be assigned 04 / weaver.

- Every 1000 picks after targeted picks shall be rewarded Rs. 1/=.

Beam Gaiter / Sr. Weaver:

- Target picks for shift "A" is 90675 picks/loom. (07:30 Am to 03:00 Pm.)

- Target picks for shift “B” is 90675 picks/loom.(03:00 Pm to 10.30 Pm.)

- Target picks for shift “C” is 108810 picks/loom.( 10:30 Pm to 07:30 Am )

- Looms will be assigned 24 / shift.

- Every 1000 picks after targeted picks shall be rewarded Rs. 0.30/=.

Shift Incharge:

- Target picks for shift “A” is 90675 picks/loom.(07:30 Am to 03:00 Pm.)

- Target picks for shift “B” is 90675 picks/loom.(03:00 Pm to 10:30 Pm.)

- Target picks for shift “C” is 108810 picks/loom.( 10:30 Pm to 07:30 Am.)

- Looms will be assigned 48 / shift.

- Every 1000 picks after targeted picks shall be rewarded Rs. 0.20/=.

Other Departments Incentive Plan:

An additional amount of the above Weavers incentive amount shall be distributed among the following personals/departments according to following percentage:

Asstt. /Trainee Weaver 10%
Sizing / warping 10%
Prod. General shift 10%

NOTE

Picks data will be used from INZ software

INCENTIVE PLAN FOR SULZER WEAVING

As per efficiency =60 %

UNIT TABLE

Shift Time 7.5 Hours Shift 9 Hours Shift
Loom #

Loom Type

Loom Width

Avg. R.P.M

100 % Units

90% Units

80% Units

70% Units

60% Units

100 % Units

90% Units

80% Units

70 % Units 60%

Units

101 To 105 Dobby 153" 310 140 126 112 98 84 167 151 134 117 100
201 To 203 Dobby 130" 260 117 105 94 82 70 140 126 112 98 84
204 To 205 Dobby 130" 150 113 101 90 79 68 135 122 108 95 81
206 Dobby 130" 260 117 105 94 82 70 140 126 112 98 84
301 Dobby 130" 230 104 93 83 72 62 124 112 99 87 75
302 To 304 Dobby 130" 220 99 89 79 69 59 119 107 95 83 71
305 Dobby 130" 250 113 101 90 79 68 135 122 108 95 81
401 To 406 Dobby 130" 280 126 113 101 88 76 151 136 121 106 91
501 To 506 Dobby 130" 250 113 101 90 79 68 135 122 108 95 81
601 To 606 Dobby 130" 260 117 105 94 82 70 140 126 112 98 84
701 To 705 Dobby 153" 240 108 97 86 76 65 130 117 104 91 78
801 To 805 Dobby 153" 240 108 97 86 76 65 130 117 104 91 78
901 To 905 Dobby 153" 240 108 97 86 76 65 130 117 104 91 78
Loom #

Loom Type

Loom Width Avg. R.P.M 100 % Units

90% Units

80% Units

70% Units

55% Units

100 % Units

90% Units

80% Units

70% Units

55% Units

1001 To 1004 Jacquard 130" 260 117 105 94 82 64 140 126 112 98 77
1101 To 1103 Jacquard 130" 260 117 105 94 82 64 140 126 112 98 77
1104 Jacquard 130" 260 117 105 94 82 64 140 126 112 98 77
Rate (Rupees) 1 1 1 1

Weavers

- Units after 60% is rewarded as Rs. 1.00/= per unit.

- Assigned looms 03 /weaver. (153” Width & Jacquard)

- Assigned looms 04 /weaver. (130” Width).

Beam Gaiter /Sr. Weaver

- 10% of weaver's amount per shift “Beam Gaiter”.

Shift In-charge

- 10% of weaver's amount.

Sizing / warping 10 %
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