MEMORANDUM OF SETTLEMENT BETWEEN PHILIP MORRIS PAKISTAN LTD AND PAK EMPLOYEES UNION - 2013

FORM ‘X’ (RULE 77 OF THE PUNJAB INDUSTRIAL RELATIONS RULES, 1973)

**Representing workers of Philip Morris Pakistan Ltd

1- Javaid Bhatti, Patron in Chief

2- Muhammad Aslam, General Secretary

3- Muhammad Irshad, Senior Vice President

4- Muhammad Ashfaq, Vice President

5-Muhammad Nasir, Member

**Representing Philip Morris Pakistan Ltd

1- Aamir Malik, Factory Manager – Sahiwal

2- Farooq Ahmed Hashmi, National Employees Relation Manager Head Office – Karachi

3- Amjad Bashir Bhatti, Industrial Relations Manager – Sahiwal

SHORT RECITAL OF THE CASE

Whereas, Pak Employees Union (herein called C.B.A), representing workers of Philip Morris Pakistan Ltd. Sahiwal Factory, has served a “Charter of Demand” upon the management under cover of its letter dated 10th October, 2012 for review and revision of certain existing terms and conditions of employment.

AND WHEREAS, negotiations were held between C.B.A nominated bargaining committee and the Management on the said charter of demands, which were extended from time to time with mutual consent to enable the parties to arrive at an amicable settlement.

AND WHEREAS, the Company maintains that existing wages, allowances and other terms and conditions of employment of its permanent workers compares favorably with other comparable industrial in the area.

AND WHEREAS, the C.B.A recognized and appreciated the need for improving labor productivity, reducing wastages, absenteeism, maintaining the discipline and industrial peace, assured the Company of its fullest co-operation and support in implementing effective measures for improving productivity performance and company policies, yet it demanded increase in wages and improvement in other terms and conditions of employment of permanent workers to provide them relief against the rise in the cost of living.

AND WHEREAS, the parties hereto arrived at the settlement, in the course of bargaining on the terms and conditions hereinafter appearing in this memorandum of settlement.

NOW THEREFORE, the following has been agreed between the parties hereto:

3. TERMS OF AGREEMENT

3.1OFFER AND ACCEPTANCE

a) The Company offers improvement in allowances and other terms and conditions of employment of its permanent workers as specified in this settlement.

b) The C.B.A accepts the offers made by the Company as set out in this Settlement and withdrawn all other demands made vide charter of demands submitted under cover of its letter dated 10th October 2012, in consideration of an overall settlement of its demands, assures the company of its fullest cooperation and undertake not to make any demand of financial nature or otherwise or raise any fresh demand on matters covered by the terms of this settlement during its operative period.

1. C.B.A Demands for the term from 1st April, 2013 to 31st March, 2015

Demand No.	C.B.A Demand	Agreement
1	50% salary raise for each worker and all old workers to be made operators.	Increase of Rs. 1,200/- per month in gross salary will be made effective 1st April, 2013. The basic salary will be 65% of total gross salary. As per Company Policy, workers will move up in the career ladder based on their overall performance, attitude & behavior.
2	Since we have delivered more production, than why 5% was not given. If Company is in loss than why people are being inducted on higher salaries.	As per Law
3	All labour related issues should be brought into knowledge of President & General Secretary.	Withdrawn
4	Social Security System to be looked into and a Doctor to be appointed in factory.	Medical Officer will be appointed and First Aid facility will be provided in the factory
5	Transport facility should be made available for all otherwise charges should be paid	Withdrawn
6	Union should be provided with a vehicle & Office President & General Secretary should be allowed to come in General shift. President should be allowed to come other than timings. Allotment of Room	Withdrawn
7	Need a beautiful mosque and every month recitation program of Holy Book to take place	Withdrawn
8	Workers should be given prizes on performance, in appreciation and increase in production	Withdrawn
9	PPD & Leaves Godown workers should be given Rs. 500/- per month as dust allowance	Withdrawn
10	All night duty workers should be paid Rs. 20/- per night allowance	Withdrawn
11	Old daily workers to be made permanent	Eid Milan will be organized on both Eid occasions.
12	Company should provide School, Hospital & Labor Colony.	withdrawn
13	Company should provide School, Hospital & Labor Colony.	withdrawn
14	Interest free Motorcycle loans should be given	withdrawn
15	Apart from Hajj facility, two Umrah tickets should also be provided	withdrawn

The C.B.A Union has agreed and accepted the aforementioned offers and withdraws rest of the demands mentioned in its charter of demands.

GENERAL

a) The process for monitoring of tea/lunch breaks will be implemented & strictly followed as per prescribed timings laid down by the Company from time to time to improve the productivity.

b) The C.B.A agreed to extend its fullest cooperation in improving and implementing various measures for productivity, quality, safety of man, machines and material including leaf and also controlling of wastages and absenteeism. It is understood that ensuring quality and safe working practices would fall within the purview of job responsibilities of workers and to utilize the workforce at the optimum.

c) Use of personal protective equipment (PPEs) such as ear plugs, safety shoes and uniform is mandatory. Workers are bound to keep the PPEs in safe custody in available lockers provided by the Company. They are not allowed to carry these PPEs outside the factory.

d) Similarly, issuance of work permit and use of proper tools would be mandatory as per requirement of the job. Non observance of safety parameters would make liable for strict disciplinary actions as per law.

e) C.B.A will fully ensure commitment & dedication to achieve monthly performance targets including but not limited to Production, Safety, Quality and Cost.

f) Cell phones are strictly prohibited to use in the factory premises except canteen and can be used only during lunch/tea breaks. Smoking will be restricted to authorized areas only.

g) In the event, the Provincial or Federal Government announce/have announced or enacts/has enacted any law during the operative period of this agreement, giving any increase in wages, allowances and/or benefits by way of cost of living/inflation, the Company shall set off the same against the increase given under this settlement subject to conditions entailing by such notification.

FINALITY

A- The C.B.A agreed to maintain industrial peace and abide by this settlement under the law for the operative period of this settlement and further agreed in consideration of the benefits and increases given as per this settlement and that the C.B.A Union shall not raise or pursue directly or indirectly any demand or dispute covered by this settlement on the said charter of demands and / or any other fresh demands or disputes whatsoever involving financial implications or otherwise upon the Company during the operative of this settlement.

B- Agreed that this settlement is full and final of all demands raised by the C.B.A in charter of demands, hereinbefore, referred including such and those other demands not specifically mentioned in this charter of demands, shall be deemed to have settled.

C- Agreed that this settlement supersedes any past usage, practice, customs and all previous settlements/agreements/conditions not incorporated in this settlement.

SCOPE

It is mutually agreed that this settlement shall apply to all workers on the permanent roll of PMPKL Sahiwal as on the date of execution/signing.

It is further agreed that no individual clause of this settlement shall be interpreted in isolation without reference to the over-all benefits granted under this settlement which from the consideration for the terms agreed under any individual clause of this settlement.

PERIOD OF OPERATION OF SETTLEMENT

It has been agreed mutually, that the period of operation of this settlement shall be for (02) two years w.e.f. 1st April, 2013 to 31st March, 2015 and shall continue to be binding after the expiry of the aforesaid period until the expiry of two months from the date on which a notice in writing of an intention to terminate this settlement is given by one of the party to the other party or parties hereto:

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