MEMORANDUM OF SETTLEMENT BETWEEN DADEX ETERNIT LTD AND DADEX ETERNIT LTD WORKERS UNION - 2009

UNDER SECTI0N 42 (2) OF INDUSTRIAL RELATIONS ACT - 2008.

(YEAR- 2009-2011)

NAME OF THE PARITES.

1. M/s. DADEX ETERNIT LTD

MANGHOPIR, KARACHI

2. M/s. DADEX ETERNIT LTD WORKERS UNION

MANGHOPIR, KARACHI.

1. REPRESENTATIVES OF EMPLOYER.

1. Mr. S. Munawar Abbas Rizvi... General Manager Operations CC.

2 Mr Rizwan-ul-Haq Faisal....Manager Operations Plastics.

3. Mr. Mohammad Akram Khan....Sr. Manager HR Administration.

4. Mr. Mohammad Ishaq Farooqi....Corporate I.R. & Factory Manager.

REPRESENTATIVES OF EMPOYEES.

1. Mr Asad Khan...Chairman.

2. Mr Ghulam Haider....President.

3. Mr Umer Khan...Vice President.

4. Mr Shaukat Iqbai....General Secretary

5. Mr Ali Mohammad...Joint Secretary.

6. Mr.Moula Buksh...PropagandaSecretary.

7. Mr. Mohammad Yousuf...Treasurer.

SHORT RECITAL OF THE CASE.

The GeneraL Secretary of Dadex Eternit Ltd. Workers Union [hereinafter referred to as CBA UNION] served on the Management of Dadex Eternit Ltd Manghopir, Karachi [hereinafter referred to as COMPANY] with a Chárter of Demands bearing reference No.DEL/WU/786/03/09 dated 01.07.2009 under Section 42 (1) of Industrial Relations Act 2008. Since the said workers union is the sole Collective Bargaining Agent of the said factory, dialogues were started with CBA Union at the factory situated at Manghopir, Karachi. As well as the management of Dadex Eternit Limited also served its Charter of Demands vide letter vide letter No 786/KF/P&IR/Union/07/09 dated 1st July, 2009. After a series of bilateral negotiations, unfortunately Agreements could not be finalized between both the parties.

Thereafter, the CBA Union served a strike notice dated 23.10.2009 and requested the conciliator of the area to conciliate as provided under the law. Similarly the Management also served the Notice of Lock out dated 23-10-2009 on its Chárter of Demand Again after a series of meetings in Factory and as well as in Conciliator's Office, both the parties agreed to an amicable settlement and settled all the differences/disputes of CBA & Management Chárter of Demands, which are enumerated hereunder

All the followinq increases are effective from 01.07.2009

1. INCREASE IN BASIC WAGES/SALÀRY.

2. ALLOWANCES.

c. Canteen Allowance.

The management has agreed that an increase of Rs.162/- [Rupees One Hundred and Sixty two only] per month in Canteen allowance will be given.

3. PRODUCTIVITY

Due to above increases in wages and allowances, the CBA Union / workers have agreed that Productivity targets of CC & R Division will be minimum as under,

GREEN AREA.

Sheet Plant

CC sheet per shift on an average = 3750 m2n/5mm

PM-1 Plant:

CC Pipes per shift on an average = 2100m2n/5mm

PM -2 Plant

CC Pipes per shift on an average = 2600 m2n / 5mm

FINISHING AREA

Pipes Finishing PM-1 side= 2600 m2n / 5mm

Pipes Finishing PM - 2 side= 3500 m2n / 5mm

RUBBER PLANT

Production per Press per shift = 70 kgs per press

4. VALIDITY OF AGREEEMNT/PERIOD OF OPERATION.

It is agreed that this settlement will come into operation with effective from 01.7.2009 except in case where the effective date is shown against each demand and shall be binding upon both the parties for period of 2 years i.e up to 30-06-2011.

GENERAL:

a. It is agreed that all the other demands, sub-demands and other points raised by the CBA Union in their Chárter of Demand No.DELA/VU/786/03/09 dated 01.72009, from Sr No.3 to 26 have been withdrawn unconditionally. The CBA Union/Workers will not re-agitate or raise any financial or non-financial demands

during the operation of this Memorandum of Settlement.

It is further agreed that the CBA Union shall not raise any other fresh or further

demands having any financial implications or otherwise upon the Company during the operation of this Memorandum of Settlement i.e. up to 30-06-2011.

b. It is agreed by both the parties that any change in the status of the union or its , Office bearers or creation of any body or Collective Bargaining Agent or any change in setup of the Union will not in any way affect this Memorandum of settlement and will continue to remain valid upon the Union/Workers and Company during the period of this settlement i.e. up to 30-06-2011.

c. It is agreed that CBA Union and Management shall hold productivity meetings regularly to discuss productivity and quality improvement plans and its

implementations.

specifically agreed that the CBA and Workers will extend their full cooperation and support on all matters and initiatives focused to improve the productivity, maintenance of plant and equipments, House keeping, Safety, Health/Environment, access control, time management and discipline etc.

ÁDJUSTMENT.

If the Government declares an increase in wages, emoluments or any allowance during the period of this Settlement such increase shall be adjusted or set off by the

management strictly as per Gazette Notification.

This memorandum of settlement has been signed by the representative of both the parities on 10th March, 2010.

REPRESENTING EMPLOYER

1. Mr. S. Munawar Abbas Rizvi... General Manager Operations CC.

2. Mr Rizwan-ul-Haq Faisal....Manager Operations Plastics.

3. Mr. Mohammad Akram Khan....Sr. Manager HR Administration.

4. Mr. Mohammad Ishaq Farooqi....Corporate I.R. & Factory Manager.

REPRESENTING EMPLOYEES.

1. Mr Asad Khan...Chairman.

2. Mr Ghulam Haider....President.

3. Mr Umer Khan...Vice President.

4. Mr Shaukat Iqbai....General Secretary

5. Mr Ali Mohammad...Joint Secretary.

6. Mr.Moula Buksh...PropagandaSecretary.

7. Mr. Mohammad Yousuf...Treasurer.

SIGNED: 16/03/2010

ASSISTANT DIRECTOR OF LABOUR AND CONCILLIATOR.

GOVERNMENT OF SINDH

WEST DIVISION, KARACHI