MEMORANDUM OF SETTLEMENT BETWEEN RAFHAN BEST FOODS LIMITED AND RAFHAN BEST FOODS LIMITED EMPLOYEES UNION KASUR - 2012
UNDER INDUSTRIAL RELATIONS ACT, 2012
Effective from 1st April, 2012 to 31st March, 2014
REPRESENTING MANAGEMENT
Ahmed Ali Zia – HR Director
Amar Naseer – Legal Director & Company Secretary
M. Irfan Bhatti – Works Manager
Mohsin Nishat – HRBP – SC
Fouzia Ishaque – NERM
Imtiaz Jaleel – Commercial Manager
Mohammad Waseem – Controller
Ruhkaam Kariamian – Factory HRBP
Moiz Idris Rajput – Finance Business Partner
Tayyab Siraj – JM – HR
REPRESENTING WORKERS
Iftikhar Ahmed Anjum – President
Muhammad Aslam – General Secretary
Richard Patrick – Joint Secretary
Muhammad Bilal – Joint Committee Member
Muhammad Asif – Joint Committee Member
SHORT RECITAL OF THE CASE
The Employees Union – Rafhan Best Foods Limited Kasur (Regd.), the Collective Bargaining Agent (hereinafter called ‘C.B.A’ of Rafhan Best Foods Ltd. submitted the Charter of Demands (Annexure – A) vide their letter No. Nil dated July 18th, 2012 to Unilever Pakistan Foods Ltd. (Formerly Rafhan Best Foods Ltd.) (hereinafter called the “Company”).
A series of meetings were held between the representatives nominated by the C.B.A and the company for bilateral negotiation and collective bargaining. Finally, the following Agreement has been arrived at in full and final settlement of the above Charter of Demand which shall remain on both the parties w.e.f. 1st April, 2012 to 31st March, 2014 for a period of two years.
(Points 1 & 2 are missing)
The committee will decide the ratio of bonus to be linked with performance and also formulate a mechanism for determining individual/team performance which will be linked with the apportioned ration of bonus to be distributed on the agreed basis.
The committee will meet as many times as may be necessary, and all efforts will be made to finalize its recommendation not later than 31st July, 2013 incorporating the following.
• Performance matrix to be applicable to every member of the factory staff.
• Ratio of bonus to be apportioned to be linked with performance.
• Criteria for payment of performance bonus with rates will be applied for payment of bonus.
The employees union undertakes that on finalization of the above scheme, it will be its responsibility to communicate the same to all factory staff. It is also agreed that the implementation of the decide mechanism will be done once the hiring of new entrants is completed and the newly hired employees are deployed on their jobs.
3. UMMRA, NON – MUSLIMS RELIGIOUS ZIARAT AND HAJJ
The company has agreed to pay Rs. 100,000/- (Rupees one thousand hundred only) to permanent employees for the purpose of performing Ummra/Religious Ziarat (in case of Non-Muslims) for 2 persons per annum. However, they have to provide proof of such Umrah/Ziarat to the satisfaction of company. The person will be chosen through balloting and he will be entitled for 15 days leaves with pay. A person who has once been selected for this purpose through the company balloting process and has availed the facility shall not be eligible for the future balloting.
In addition, 1 seat has also been introduced for Hajj at the rate prescribed by the Government. The procedure for selection of the eligible candidate has been discussed and agreed with C.B.A. Moreover, the number of days spent on Hajj will be allowed as special leave with pay.
4. COMPNAY LOAN FUND
It has been agreed that the company will provided total company loan fund of Rs. 60,000/- (Rupees sixty thousand only).
The maximum amount to an individual will be paid the basis of maximum 3 salaries i.e. (Basic pay, Cola 205 & 18% indexation). To be eligible for such loan, the individual must be a permanent employee of the company for 5 years. The loan will be paid back to the company in eighteen instalments without interest.
5. HOUSE BUILDING/MOTORCYCLE/COMPUTER LOAN
It is agreed that the total amount of Rs. 1,600,000/- will be available for permanent employees as House Building loan with maximum loan of Rs. 80,000/- per permanent employee. The interest will be charged @ 9% for five years. The loan will be returned in sixty equal instalments (50% deduction from salary + 50% from bonus). To be eligible for such a loan, the individual must be a permanent employee of the company for 3 years and the registry of the property must be valid. The above facility will also be available for purchase motorcycle and computer, however, an employee can exercise this option only once for either house building, motorcycle or computer.
6. COMPUTER ALLOWANCE
It has been agreed that permanent employees operating computers will be given an Allowance of Rs. 250/- per month provided that they are spending at least 75% of their time on the computer.
7. MONTHLY POD
Purchase of company products of worth Rs. 1800/- (Rupees eighteen hundred only) at 50% discount per month. UPFL permanent workers can also buy product of the affiliate company, Unilever Pakistan Ltd.
8. BURIAL EXPENSES
It has been agreed that the company will pay Rs. 15000/- (Rupees Fifteen thousand only) as funeral expenses on the death of a permanent employment to the widow of employee and if the widow is not surviving to the legal eldest child of permanent employee.
9. ANNUAL LEAVES
It has been agreed that 21 leaves will continue as per previous practices.
10. LONG SERVICE AWARD
The Management agrees to give the following Service Award to permanent employees on completion of their respective service periods:
| Service Period | Award |
| 10 Years | Rs. 7000/- |
| 15 Years | Rs. 14000/- |
| 20 Years | Rs. 16000/- |
| 25 Years | Rs. 18000/- |
11. EDUCATION SCHOLARSHIP
The company agrees to grant 10 scholarships to the children of permanent employees of the company which will be allowed as following amount.
a) Matric Rs. 400/- per month plus Rs. 200/- on securing 60% or more marks.
b) Intermediate Rs. 450/- per month plus Rs. 200/- on securing 60% or more marks.
c) Graduation Rs. 500/- per month plus Rs. 200/- on securing 60% or more marks.
d) Post-Graduation Rs. 550/- per month plus Rs. 200/- on securing 60% or more marks.
12. MARRIAGE ALLOWANCE
It has been agreed to pay to permanent employees an amount of Rs. 10000/- (Rupees ten thousand only) on marriage of ex-gratia for marriage of self, daughter and dependent sister. An employee can have a maximum of 02 cases per annum. In total, there can be a maximum of 07 such double cases in a calendar year. The left over double cases can be carried forward in the next year. It has also been agreed that claims will be disposed-off on monthly basis. In case an employee is left out of the double case during the calendar year due to the completion of double cases, the individual must be a permanent employee of the company for 2 years. In all 14 single cases or 7 double cases will be entertained in each calendar year.
13. MEDICAL FACILITY
It has been agreed that medical facility will be continued as per pervious practices for those employees who are not covered under social security scheme.
These permanent employees will be paid allowance of 07% of basic salary + COLAS + 18% indexation + House Rent + Conveyance allowance + Special allowance (Rs. 450/-).
The 07% medical allowance will also be admissible at the close of the year at the actual earning of night and evening shift allowances.
14. NIGHT/EVENING/FOOD ALLOWANCE
It has been agreed to pay an evening shift allowance of Rs. 25/- and night shift allowance of Rs. 50/- per shift.
15. OVERTIME
It has been agreed that overtime will be paid to all permanent employees on the basis of basic + colas + 18% indexation + house rent + conveyance allowance. Prior approval from supervisor and / or other authorized personnel is required for overtime as per previous practices.
16. PROVIDENT FUND STATEMENT
Provident Fund annual statement will be arranged for factory staff.
17. RECREATION/PASSAGE ALLOWANCE
It is agreed that Passage Allowance for permanent employees will be paid inclusive of (basic salary, COLAS and 18% indexation) x 1.07. However, it will be admissible up to eight absences during the year.
18. WHEAT ADVANCE
It has been agreed that Government applicable price will be final for advancing loan to permanent employees, for buying 20 mounds of wheat. This amount will be deducted from employee’s salary every month in 12 equal installments without any interest.
19. COLAS
No change in previous practices. Follow law of the land.
20. CONVEYANCE
It has been agreed that the company will provide conveyance to permanent employees travelling from Lahore during the regular shift. It is expected that not more than 13 employees will avail this facility. In case the number increase, C.B.A will inform the company accordingly well in advance in order that the appropriate conveyance can be arranged. It has been further agreed that factory management and C.B.A will sit together and optimize the route for existing transport facility to accommodate patoki as well in the existing route throughout the shifts. It will be insured that the cost remains within the budgeted amount.
This agreement will continue to remain in force up to 31st March, 2014 and can be terminated by either party by giving two months notice in writing to the other party communicating their intension to be no longer bound by the settlement.
It is agreed between the parties that this SETTLEMENT has finally settled all the demand included in Charter of Demand (Annexure ‘A’ hereto) and also all the matters raised or could have been raised or could have been raised and discussed in the dialogue proceedings and the C.B.A agrees and undertakes that it will not raise any demand during the aforesaid operation of this SETTLEMENT.
The C.B.A undertake and guarantee good behavior and full cooperation for maintenance of discipline and industrial peace during the tenure of the Settlement and agrees to the development of work force from time to time and as and when considered expedient by the Company according to the work requirements. The C.B.A further undertakes that in case of any different it would seek redress of grievances in accordance with provision of law and will not indulge in discipline or disturbance o industrial peace and will ensure that there is no stoppage of working on the part of workers nor will they adopt any go-slow tactics.
This settlement has been signed on June 07, 2013 at Lahore.
*****
