MEMORANDUM OF SETTLEMENT BETWEEN UNILEVER PAKISTAN LIMITED AND UNILEVER EMPLOYEES’ FEDERATION OF PAKISTAN -2010
Under the provision of Industrial Relations Laws BETWEEN UNILEVER PAKISTAN LIMITED AND UNILEVER EMPLOYEES’ FEDERATION OF PAKISTAN PROFIT BONUS FOR THE FINANCIAL YEAR 2010 (Period 1st January to 31st December – 2010)
Lahore, 18th October, 2011
NAMES OF PARTIES
A.Unilever Pakistan Limited (UPL) having its registered office at Avari Plaza, Fatima Jinnah Road, Karachi (which expression wherever the context so admits shall mean and include their successors and assigns)
AND
B.Unilever Employees Federation of Pakistan (UEFP) having its registered office at Labour Welfare Society, ‘D’ Block, Shershah Colony, Karachi, hereinafter called the ‘C.B.A’ (which expression wherever the context so admits shall mean and include its successors, assigns and all categories of workmen in permanent position, employed or to be employed).
| Representing Employer | Representing Federation |
| MOHSIN NISHAT
CORPORATE EMPLOYEE RELATIONS HEAD |
TASEER DAR
PRESIDENT |
| MOHAMMAD IQBAL
HUMAN RESOURCE CONSULTANT |
MASOOD TARIQ
GENERAL SECRETARY |
| AWAIS AKMAL
HR MANAGER – ICF, LAHORE |
ARSHAD KAMRAN
SENIOR VICE PRESIDENT |
| ABDUL MUNEER
VICE PRESIDENT |
|
| MUSTAFA KHAN
FINANCE SECRETARY |
|
| FAHIM YOUNAS
CENTRAL EXEC. COMM. MEMBER |
|
| QAMAR SULEMAN
JOINT SECRETARY |
|
| MOHAMMAD ASLAM
CENTRAL EXEC. COMM. MEMBER |
SHORT RECITAL OF THE CASE
The Federation in its capacity as Collective Bargaining Agent (C.B.A) served the Charter of Demand dated 06-04-2011 (Annexure ‘A’) on the Company respect of Profit Bonus for the Financial period 1st January, 2010 to 31st December, 2010.
Bilateral Negotiation commenced and various meeting were held from time to time and ultimately bilateral negotiations concluded satisfactory and the following settlement has bee reached between the parties.
BONUS FOR THE FINANCIAL YEAR ENDED DECEMBER 31ST, 2010
In order to embed performance culture and align ourselves with other Unilever operating companies and high performing organization in the country, it is felt that we need to have a structured program for enhancing individual performance and reward people accordingly. The same approach was taken in the settlement dated 12th August, 2003, however, implementation was deferred at the request of the federation. To achieve this objective, in the settlement dated 11th February, 2011 it was agreed that w.e.f. the profit bonus for the financial year 2011 (payable in 2012) a reasonable portion of the agreed amount of profit bonus will be paid to employees based on their annual performance. To achieve this objective a committee for this purpose was constituted. Based on the recommendations of the Committee, it has been agreed between UPL and the C.B.A that for the financial years 2012 & 2013. Amount equivalent to one bonus out of the total settlement of Bonus for the pertinent year will be paid on the basis of performance on matrix for each site which are annexed as Annexure B1 to B4. The agreed performance matrix will be applicable from 1st January, 2012 onwards. It has further been agreed that performance matrix and the share of Profit bonus attached will be reviewed for Profit Bonus 2014 with the objective of brining positive improvement in the scheme.
The Company explain the Annual Report & Accounts for the period January 1st, 2010 to December 31st, 2010.
It has been mutually agreed that a total amount of Rs. 114,514,647 (Rupees Eleven Crores Forty Five Lacs Fourteen Thousand Six Hundred and Forty-Seven only) which will be paid as profit bonus for the financial period 01.01.2010 to 31.12.2010 to eligible Permanent Factory Staff of UPL. This payment will be in complete discharge of Company’s obligation under section 10-C of West Pakistan Industrial & Commercial Employment (Standing Orders) Ordinance, 1968 or any other pertinent law for the time being in force. The above amount is to be distributed as under:
To pay 19.50 (Nineteen point five zero) months basic salary plus one COLA for the above said period to all Staff of UPL who were on the payroll of the Company on December 31st, 2010. To determine the quantum of bonus, it has been agreed that the basic salary and COLA as on December 31st, 2010 will be taken for the purpose of calculating the amount of bonus for each Staff.
To pay an amount equivalent to 1 (One) month BONUS for the above said period to Factory Staff of UPL who were on the payroll of the company on December 31st, 2010 and have qualified to receive this bonus in proportion to their performance evaluated in terms of performance matric detailed in Annexure B1 to B4 of this settlement. This proviso will not be applicable to profit bonus for the financial years 2010 and 2011 as the performance matrix were not applied during this period and bonus equivalent to 1 Month BASIC SALARY will be paid to all eligible factory staff to whom 19.5 months basic salary is being paid as bonus for the financial year 2010.
Staff who were in the employment of the Company for 90 days or more but less than the complete year will be paid the amount of both bonuses detailed above for on prorate basis as follows except for the Staff who retired on superannuating or died in service any time during the period January 1st, 2010 to December 31st, 2010 who will be paid full entitlement of bonus disregarding the period they were not in the Company’s employment because of the above said reasons.
| Continuous duration of service | Pro-rata entitlements of said Bonus |
| Full year of service | Full entitlement |
| Less than 3 months | Nil |
| 3 months or above but less than 6 months | 1/3 (one third) |
| 6 months or above but less than 9 months | ½ (one half) |
| 9 months or above but less than 12 months | 2/3 (two third) |
Advance against bonus paid to the Staff against Profit Bonus 2010 at each location will be deducted from their respective entitlement of Bonus.
The deduction on account of absenteeism as detailed under clause 1(a) and (b) of the Settlement signed on 10.02.1986 shall be made and the amount so deducted shall be paid to the Unilever Employees Federation of Pakistan.
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