International Foundation & Garments (Pakistan) (Pvt.) Ltd - 2014

Start date: → 2014-07-01
End date: → 2016-06-30
Name industry: → Manufacturing
Name industry: → Manufacture of wearing apparel
Public/private sector: → In the private sector
Concluded by:
Name company: → International Foundation & Garments (Pakistan) (Pvt.) Ltd
Names trade unions: → International Foundation & Garments (Pvt.) Ltd United Workers Union

WAGES

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

Wage increase

Wage increase: → Rs. 2000.0
Wage increase starts: → 2014-07

Once only extra payment

Once only extra payment: → Rs. 900.0 %
Once only extra payment due to company performance: → No

Meal vouchers

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

FORM 'X'

(RULE 70)

MEMORANDUM OF SETTLEMENT

NAME OF PARTIES

1-International Foundation & Garments (Pakistan) (Pvt.) Ltd,

Plot No L/8, Block-22, F. B. Area, Karachi

2-International Foundation & Garments (Pvt.) Ltd United Workers Union, a duty registered trade union (Registration No 5647) and is the CBA of workmen having its registered office at 628, Mashriq Center, Gulshan-e-Iqbal, Block-14, Near Hassan Square, Karachi

REPRESENTATIVE OF THE EMPLOYER

1-Mr M. Jehangir Saleem, General Manager,

2-Mr. Hilal Ahmed, Manager Finance,

3- Mr Mehmood Ali Khan, Jr. Executive Officer (Admn.),

REPRESENTATIVE OF THE UNION/WORKERS

1- Mst. Shahnaz Mubeen, Chairman,

2- Mst. Naseem Altaf, President.

3- Mst. Rubina Rahim, Sr. Vice President

4-Mst. Deeba Saleem, General Secretary.

5. Mst. Afshan Riaz, Treasurer.

SHORT RECITAL OF THE CASE

The Genual Secretary, International Foundation & Garments (Pvt.) Ltd United Workers Union, (CBA) submitted a charter of demand dated 20.10.2014 consisting 07 demands under Section 35 (1), SIRA, 2013, due to frustration and dejection amongst the old workers who would not be benefitted by the new minimum wage limit of Rs. 12,000 pm announced by the Sind Govt as their wages were already around this unit due to long period of service but each new worker would receive an increase of Rs.2000 pm although both were badly hit by inflation equally. Besides, the CBA Union has further stressed that although the provincial government announced enhancement of minimum wages effective 01.07.2014, but no notification has so far been issued and therefore, the management did not increase the wages and since the management has taken the said request of CBA into consideration and at the same time, the CBA has categorically agreed that in case the management increase the wages of workers at the par of expected increase in the minimum wages during the year 2014, they shall not demand any further increase particularly to enhance the salary/wages of the workers if the same is not less than the proposed and incoming increase in the Minimum Wages. This matter was also discussed between the management and CBA Union who have further agreed the formula to increase wages/salaries of old workers who were on the roll of the company on 31.12.2012 and new recruited workers effective 01.01.2013 till date with some difference. Due to present situation, the CBA felt deeply concern which has also badly effecting the day to day production and in such situation, the management also intend to overcome and give some relief to the workers so as to maintain cordial atmosphere in the factory and maintain good and harmonious relations with the CBA Union and workers as well. Since the CBA Union after receipt of afore-mentioned notice of demand has vigorously approached the management to cope up with such situation and particularly for the reason that the old workers may not be deprived due to the said proposed increase in wages, joint meetings between the management and representatives of CBA Union held wherein the matter was discussed at length and taking into consideration all pros and cons of the matter, the management has agreed to sign a new agreement of settlement which would be effective from 1st July, 2014 to 3rd June, 2016, to which the CBA Union has also agreed. Apart from above during the course of joint meetings, the whole charter of demand submitted by CBA Union was discussed in the light of financial constraints of the company due to enormous increase in the overall cost of production due to various other factors including the proposed enhanced minimum wages. The management, however, realizing need for allowing reasonable increase in wages of all workers due to ever increasing cost of living as a result of high inflation, agreed to enter into an agreement of settlement. Finally, both the parties agreed in the meeting held on 11th November, 2014, to the following terms of settlement which should take place from 1st July, 2014, for a period of two years i e., up to 3rd June, 2016. The benefits under this agreement will accrue to all the workers of the factory who are in service of the company at the time of signing of this Agreement, i.e. on 13th November, 2014.

NOW THIS SETTLEMENT WITNESSTH AS FOLLOWS

TERMS OF SETTLEMENT

DEMAND NO.1.

The management has agreed to increase wages/salaries of all the workers of the factory in the following manner:-

Old workers who are on the roll on 31.12.2012 New recruited workers from 01.01.2013 onwards
Basic Rs. 1,140/- Rs. 1,135/-
House Rent Rs. 510/- Rs. 465/-
Conveyance Rs. 500/- Rs. 500/-
Total Rs. 2,150/- Rs. 2,000/-

Note: The above increase shall be effective from 01.07.2014 and the same would be payable to the workers over and above of their present salary/wages.

DEMAND NO.2

This demand has been withdrawn by the CBA Union.

DEMAND NO.3

This demand has been withdrawn by the CBA Union.

DEMAND NO.4

The management has been pleased to increase a sum of Rs. 20,000/- towards for annual picnic in respect of workers/employees of the factory and the said amount would now be payable is Rs. 135,000/- instead of Rs. 115,000/-

DEMAND NO.5

This demand has been withdrawn by the CBA Union.

DEMAND NO.6

This demand has been withdrawn by the CBA Union.

DEMAND NO.7

The management has agreed to enhance the existing EIDI on the eve of Eid-ul-Fitre from Rs. 800/- to Rs. 900/- to each worker which would be payable only once during a year.

GENERAL

a) In case the federal or provincial government allows any increase in the wages/salaries and/or allowances during the currency of this settlement, the same shall be adjusted and the workers/employees would not be paid less amount to that of minimum wages so allowed by the said government.

b) The Company and CBA Union have settled all the demands raides by the CBA Union vide their Charter of Demands dated 20.10.2014 as mentioned hereinabove.

c) The demands of the CBA Union which are not specifically agreed to in this settlement shall be deemed to have been withdrawn for which the union agreed not to press the same in any manner whatsoever.

d) All other terms and conditions and benefits presently enforced which are not altered, changed and/or modified by this settlement, will continue binding as per existing and prevalent terms and conditions.

e) The CBA Union and through it, all employees/workmen employed and working in the factory hereby undertake that they shall extend full cooperation to the management in maintaining the discipline, punctuality, daily attendance, industrial peace, good order/conduct and also to increase production and to maintain production target at their best and further try to increase the same so far as possible.

f) The CBA Union has also undertake thatl in case the required production/standard and/or the target IS not maintained and achieved, the management is at its discretion to take appropriate action and to proceed and initiate disciplinary action against who so ever would be involved in such matter which may also result in termination of their services in accordance with the provisions of law.

g) The CBA Union has also agreed to ensure the punctuality in attendance and also to avoid absenteism or late attendance by the employees/workmen.

h) Since this agreement is being entered between the CBA Union and the management purely as a special ease and circumstances, the union shall not quote this as a precedent in future.

i) The CBA Union has further undertakes not to raise ot submit any demand(s) to the management having financial implications/ impact or otherwise during currency of this settlement.

j) The CBA Union has further agreed not to interfere in the acts of administration. However, the office bearers of the CBA Union may discuss with management such issue(s) concerning the employees/workmen which need to be addressed.

PERIOD OF SETTLEMENT AND APPLICABILITY

This settlement shall come into force with effect from 01.07.2014 and shall continue for a period of two years i.e. upto 30.06.2016, and it shall be applicable only to the permanent employees/workmen employed/working in International Foundation & Garments (Pakistan) (Pvt.) Ltd, Karachi and or in the employment of the company on the date of signing of this agreement i.e., 12.11.2014.

In witness whereof, the parties have signed this settlement on 13th November, 2014.

SIGNATURE OF PARTIES

REPRESENTATIVE OF THE EMPLOYER

1- Mr. M. Jehangir Saleem, General Manager

2-Mr. Hilal Ahmed, Manager Finance

3-Mr Mehmood Ali Khan

Jr Executive Officer (Admn.).

REPRESENTATIVE OF THE UNION/WORKERS

1 - Mst. Shahnaz Mubeen, Chairman

2-Mst. Naseem Altaf, President

3-Mst. Rubina Rahim, Sr. Vice President

4-Mst. Deeba Saleem, General Secretary

5-Mst. Afshan Riaz, Treasurer

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