LABOR LAW[1] orignal

8/7/2019 LABOR LAW[1] orignal

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12th

April, 2011

Industrial Relation & Labor Law

Submitted TOSir. Gulam Mustafa

Submitted by

Khadija Aftab 8443

Sehrish CH 8509

Ali.vajdan 8510

Falak Naz

F I N A L P R O J E C T


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TABLE OF CONTANT

DescriptionPage

#

Introduction and brief history of

packages.

4

Mission

statement..

5

Organizational

hierarchy

6

Industrial relationdepartment

7 to 15

Human Resource

operations....

15

Employee details 16

Benefit of working for management

staff..

16


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Benefits of working for unionized or workers

staff..

17-18

Mutual benefits of working for employees and

workers

18-20

Total unions, name of unions and name of

CBA..

20-21

Major challenges 21

Working conditions of employment for unionized

staff.

21

Steps comply to factories act..

22-23

Recommendations23


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INTRODUCTION OF PACKAGES

BRIEF HISTORY

Packages Limited was established in 1957 as a joint venture between the Ali Group of

Pakistan and Akerlund & Rausing of Sweden, to convert paper and paperboard into

packaging for consumer. Industry.

Over the years, the Company continued to enhance its facilities to meet the growing

demand of packaging products. Additional capital was raised from sponsors, International

Finance Corporation and from the public in 1965.

Packages commissioned its own paper mill in 1968 having production capacity of 24,000

tones of paper and paperboard based on waste paper and agricultural by-products i.e.wheat straw and river grass.With growing demand the capacity was increased periodically

and in January 2003 was nearly 100,000 tons per year.

Since 1982, Packages Limited has a joint venture with Tetra Pak International in Tetra PakPakistan limited to manufacture paperboard for liquid food packaging and to market Tetra

Pak packaging equipment. In 1993, a joint venture agreement was signed with MitsubishiCorporation of Japan for the manufacture of Polypropylene films at the Industrial Estate in

Hattar, NWFP. This project, Tri-Pack Films Limited, commenced production in June, 1995

with equity participation by Packages Limited, Mitsubishi Corporation, Altawfeek Company

for Investment Funds, Saudi Arabia and general public. Packages Limited owns 33% of Tri-

Pack Films Limited's equity. In July, 1994, Coates Lorilleux Pakistan Limited, in which

Packages limited, has 55% ownership, commenced production and sale of printing inks. In

1996, a joint venture agreement was signed with Printcare (Ceylon) Limited for the

production of flexible packaging materials in Sri Lanka. This project Packages Lanka

(Private) Limited commenced production in 1998. Packages Limited now owns 77% of this

company. In 1999-2000 Packages Limited has successfully completed the expansion of the

flexible packaging line by installation of new rotogravure printing machine and theexpansion of the carton line by a new Lemanic rotogravure inline printing and cutting

creasing machine. In addition a new 8 color flexo graphic printing machine was also

installed in flexible packaging line in 2001.

Packages Limited has also started producing corrugated boxes from its plant in Karachi

from 2002.


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MISSION STATEMENT

To be a leader in the markets we serve by providing quality products and

superior service to our customers, while learning from their feed back to set

even higher standards for our product.

To be a company that continuously enhances its superior technological

competence to provide innovative solutions to customer needs.

To be a company that attracts and retains outstanding people by creating aculture that fosters openness and innovation, promotes individual growth,

and rewards initiative and performance.

To be a company which combines its people, technology, management

systems, and market opportunities to achieve profitable growth whileproviding fair returns to its investors.

To be a company that endeavors to set the highest standards in corporate

ethics is serving the society.


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Organizational hierarchy of Packages

BOD

Chairman

Advisor Managing Dir. Executive

Board

GM

IRManagerLiaison &

Admin

ManagerHRDManager


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Industrial Relations DepartmentIndustrial relations department has 4 wings, which perform different tasks regarding

factory workers as well as employees of other grades, these sections are as follows

1. Compensation and establishment wing

2. Workers welfare wing3. Legal wing

4. Canteen wing

All these sections are interlinked and work in collaboration with each other like a team to

perform their duties efficiently and effectively. They are doing their best to improve

individual as well as departments productivity.

Roles ofIR Department Maintaining and updating Personnel record Monitoring Payroll Process

Monitoring Attendance record

Planning work for Employees Training and Development

Conducting Performance Evaluation and Appraisals Handling legal aspects

LaborWelfare

Roles ofIR Manager

Roles of IR Department are as follows,

To maintain check and control all the workings of IR Department

To maintain peace within the organization Maintain peace to resolve the conflicts among workers and employees and to

maintain and improve productivity.

To deal with different Govt agencies like social security, EOBI etc.


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Compensation and Establishment wing

Mr. Imran Elahi is performing his duties as an assistant manager compensation and

establishment. He controls all the workings of compensation and establishment section,

supervise and verify the work that is conducted in Compensation and establishment

section.

Establishment Section

Mr. Imtiyaz is handling the workings of establishment section. He assists Mr. Imran Elahi as

a personnel officer.

Establishment section has a responsibility of maintaining personal file of each and every

employee of packages, means from day one when employee start the job to the day he

leaves the company contains all the information of each person in packages. The file is

maintained by IR department contains all the details about employee like his qualification,

family background, employee number that is assigned to him by packages, the departmentin which he is performing his duties.

Establishment section also maintains employment cards for workers and employees of

packages, internship certificates and stipend to internees.

Compensation Section

Compensation section is an important part of compensation and establishment section.Mr. Rais is performing his duties as a personnel officer and he also assist Mr. Imran Elahi.

The daily attendance of all employees and workers of Packages is checked regularly by this

wing. For maintaining and updating daily attendance properly, Limton Attendance systemof card swiping and TimeWizard of Time management system are used that works parallel

with SAP.

Compensation section also contains detail about time wizard, time in and time out of

employees in organization.

Time In: means that on what time employee reaches in packages. The work force is very

punctual about the timings a margin of 10 minutes is given to all but if anyone will be late

by 11 minutes than it will affect their salary.

Time out:

Means that on what time the employee leaves package. If the employee will stay in

organization after office time than the company will provide over time increments.

LIMTON software is being used for the checking of time in and time out. Employees enter

or leave the organization by swapping the employment card and machine read the basicdata and after processing send it to the concerning department.


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SAP

SAP is software which is being used for record maintenance in packages limited.

On Sap Company do all type of working like if any employee does off from office without

informing to supervisor than company deduct some amount from their salary like salary is

deducted on the basis of annual leave or medical leave.But on the basis of casual leave there will be no deduction from employee salary. Because

casual leave means the leave which is made after informing the supervisor.

Incentives provided to the employees

Packages provide incentives if the employees will perform more work and do moreproduction according to the required limit while using the limited resources and time.

Incentives are given to the employee after checking the production cards, and if there will

be increase in production than packages provide incentives to the employees.

Packages provide workers a good facility of overtime which is paid double as compare toworking hours like if workers do overtime of 4 hours than he will get overtime wage of 8

hrs.

Pay Roll Section

Pay roll section is also an important section of compensation section, which comprises of

salary and wage section. Accuracy in payment is ensured here because the pay of employee

is directly proportional to the time worked.

Salary Section

All salary related issues of X2 officers, are monitored in this section. Before salary running,

absences are checked; daily amendments in the leaves are checked. It also deals with the

process of taking leaves by employees. If an employee do off from office without giving

application than the company deduct their one day salary.

But if they do off by giving application than the company do not deduct their salary. During

running the salaries mess deduction is also done by this section from the salaries of the

workers or employees depending upon their grade.

Wages Section

This section deals with the wages of X1 workers category. All wage related issues and gate

pass checking (X1 workers) are monitored over here.

This section also contains the detail about taking leaves by workers and employees, if a

worker do off from duty than company deduct their wages on hourly basis, shift wise.


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Workers Welfare wing

Workers welfare section perform the activities for the welfare of company`s workers.

Mr. Wasim is performing his duties in workers welfare section as an assistant worker

welfare manager, and Mr. Khalid and Mr. Sohail assist him.

RESPONSIBILITIES OF WELFARE WING

Labor welfare wing is consisting of many responsibilities that are as follows:

SOCIAL SECURITY

Social security is an institution which provide medical facility in case of normal sickness,

accidents, injury, and severe diseases like tuberculosis, cancer etc to employees and

workers.

EMPLOYEE OLD AGE BENEFITS INSTITUTION (EOBI)

This institution has been established since 1976. The main purpose of this institution is to

provide facilities to old age employees after retirement like

Pensions

Reduced Pensions

Invalidity Pensions

WORKERWELFARE BOARD

This board provides facilities like marriage grant, death grant, and scholarships to their

workers and their dependents.

Marriage grant

Death grant

Scholarships

ANNUAL COMPARISON AND ANALYSIS OF DEATH GRANT FROM WWF LAST FIVE

YEARS

We have conducted an analysis of last five years (2005-2009) for death grants which we

have availed from worker welfare board. It has been clearly shown through graphs that

how much we have differences in amount per year. Total No. of cases and amount per yearare shown by following table


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Note: Amounts are in millions

ANNUAL COMPARISON AND ANALYSIS OF MARRIAGE GRANT FROM WWF LAST FIVE

YEARS

We have conducted an analysis of last five years (2005-2009) for marriage grants which we

have availed from worker welfare board. It has been clearly shown through graphs that

how much we have differences in amount per year. Total No. of cases and amount per year

are shown by following table

Note: Amounts are in millions

Due to the cessation ofmarriage grant in 2007 there was no grant availed in 2007

DEATH GRANTS

YEARS 2005 2006 2007 2008 2009

no of

cases 6 8 8 3 1

amount 150,000 200000 200000 200000 300000

6*150000 8*200000 8*200000 3*200000 1*300000

AMOUNT 0.9 1.6 1.6 0.6 0.3

YEARS 2005 2006 2007 2008 2009

no of

cases 53 120 nil 62 59

amount 30000 30,000 nil

50000 ,

70000 70,000

53*30,000 120*30,000 nil

950000 +

3010000 59*70000

AMOUNT1.59 3.6 nil 3.96 4.13


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ANNUAL COMPARISON AND ANALYSIS OF SCHOLARSHIPS FROM WWF LAST FIVE YEARS

We have conducted an analysis of last five years (2005-2009) for scholarships which wehave availed from worker welfare board. It has been clearly shown through graphs that

how much we have differences in amount per year. Total No. of cases and amount per year

are shown by following table

Note: Scholarships cases of 2009are still pending

ANNUAL COMPARISON AND ANALYSIS OF PENSIONS FROM EOBI LAST FIVE YEARS

We have conducted an analysis of last five years (2005-2009) for PENSIONS which we have

availed from EOBI. It has been clearly shown through graphs that how much we have

differences in amount per year. Total No. of cases and amount per year are shown by

following table

YEARS 2005 2006 2007 2008 2009

category

noof

cases amount

noof

cases amount

noof

cases amount

noof

cases amount

noof

cases amount

1 47 9600 41 9600 36 12000 48 19200 nil nil

2 29 13800 16 13800 37 16800 28 30000 nil nil

3 8 18000 6 18000 12 42000 nil nil

4 6 22200

AMOUNT 90 1128600 63 722400 73 1053600 88 2265600 NIL NIL

PENSIONS

Years Amount Cases

2005 166523 111

2006 153621 99

2007 153721 73

2008 217090 92

2009 125246 43


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ANNUAL COMPARISON AND ANALYSIS OF SOCIAL SECURITY FROM SOCIAL SECURITY

INSTITUTION LAST FIVE YEARS:

We have conducted an analysis of last five years (2005-20009) for SOC.SEC which we have

availed from SOC.SEC INSTITUTION. It has been clearly shown through graphs that how

much we have differences in amount per year. Total No. of cases and amount per year areshown by following table

There are two types of cases in soc.sec that are normal sickness and accidental cases. Theamount paid on normal sickness is Rs.150 per day and on accidental cases is Rs.200 per

day. If there is only medical certificate M1 is attached to soc.sec leave then it will not be

paid and if there is medical certificate M2 is also attached with M1 in soc.sec leave then it

will be paid.

FAIR PRICE SHOP

Now days the inflation is going high and high. To compensating their employees Packages

provide the facility of fair price shop. The operation of this price is on no profit and no loss

basis. To avail fair price shop facility workers must get a form and fill it. They will get a cardnamed as Ration card. Employees/workers can get food items at subsidize rates.

MURREE REST HOUSES:

Packages have three rest houses in Murree. This facility is only for executives and

managers. This facility is totally free for them.Welfare section maintains the record of allthe expenses like the pays of employees who are working there like servants, gardeners,

and watchman, expenses of repair and maintenance.

SOCIAL SECURITY SERVICES

Social security services are provided by company to the workers to give them medical

facility. Company pay 6% of minimum wages to the social security services institution andthen workers can get free of cost medical treatment.

Like in case of any injury, illness, or accident social security service institution give free

medical facility to the workers.

NORMAL

SICKNESS

years

NO OF

CASES AMOUNT

2005 157 38.26

ACCIDENTS

YEARS NO OF CASES AMOUNT

2005 9 1.785


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Marriage Grant

Company gives marriage grant to its workers, in case of marriage ceremony of his

daughters. Company give Rs 70000/= as a marriage grant to its workers to bear the

expenses of marriage ceremony.

Death Grant

It is an amount which is paid by packages to its workers in case of death of his worker.

Company give Rs 20000/= as a death grant to the widow of expire worker so that she canbear the expenses.

Legal wing

Legal section means the legal activities which are held by legal wing of IR Department.

Mr. Imran Adil works as an assistant law manager, he deals with all the legal activities

which are held in packages.

Like in case of any offensive behavior conducted by worker first IR Department issue a

cause letter to the legal wing in which IR Manager give complete details about the illegal

activity.

Than legal department send a warning letter to the worker and say him not to repeat this

type of behavior again. And if, the worker again does misbehave with his supervisor or anyother senior officer than legal adviser conduct legal action and in some cases company

dismiss the worker.After issuing show cause letter the legal section issue an inquiry letter to the supervisor of

worker if the worker file a suit against company that the company did bad with him. Sothan the supervisor give complete detail about the worker`s behavior and give completedetail about that misbehave which is conducted by the worker. Than supervisor again send

inquiry letter back to the legal advisor of packages.The workers who file suit against company send a Grievance Notice to the company.

And if company do not response to the grievance notice than the worker send a Grievance

Petition to the Labor Court.

After that both parties means company and worker collect their evidences and than

present their evidence in front of labor court. And after hearing the complete scenario/case

and seeing evidence of both parties court takes its decision

Legal section is responsible for the legal issues and labor union policies. All

the legal and disciplinary actions are conducted by this section. The main

important functions of this section are following:

To deal with external cases and internal cases of the company internal cases

mean the cases of misconduct of the workers are also inquired in this section.

To manage and update the all court cases files on regular basis


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To deal with the purchase of the land for Packages Limited and also to keep

with all sort of requirements regarding sales and purchase of land inside and

outside the Packages

To prepare all the agreements of contractors working with Packages Limited

and Bulleh Shah paper Mill Kasur

To prepare the different legal documents of workers like letter of charge,show cause notice, enquiry notice etc.

HR Operations in packages

HRD was established in 1995 and MR. Nayab Baig was first HR manager. In 1997 Mr. Nayab

Baig left Packages and Mrs. Asma javed took charge as HR manger. Currently four peoples

are running HR dept.

OP

ERATIONS OF HR DEP

ARTM

ET

Following are the operations of HR dept.

Recruitment and selection Succession planning

Performance appraisal

Training and development Assigning projects to internees

Publishing Hello magazine

Employee details in packages


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Benefits of working for management employees

Benefits of working for management employees are as follows:

Conveyance allowance (paid to confirm un-unionized employees up to grade

(P3-5)

Car allowance (confirm employees from E3 and above) Utility allowance (all employees in V grade and above)

Special allowance (Grade 3 and above) Telephone Allowance: Employees of Ex 3 and above are entitled to this

allowance.

Muree rest houses

Management Staff Pension fund

JE to above become member of management staff pension fund.

A. For membership 4.5% of salary is contributed every year

B. After retirement or death the pension is given to him or his heirs.

C. In case of death 50% of the amount is given to widow, Children under the age of

21year get 20% each to the maximum of 40%.

Employee contributoryWelfare fund

All permanent employees are eligible for it.

To become member the employee contributes a nominal amount towards the fund andcompany contributes the same amount to it.

In case of sick leave without pay, total permanent disablement and death the member ordirect dependent can get financial assistance for the period of 4 years or up to his

retirement which is earlier

Benefits of working for unionized staff or workers

All workers up to grade 5 can get cycles on early installment.

All workers and employees up to junior executive are eligible to take loan for

bikes from this scheme on seniority basis

Social security

Fair price shop

Marriage and death grant

Scholarships for workers childrens

Very Low price caf food

Milk at the price of 10 paisas per day


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Attendance allowance

All workers and employees up to Junior Executive can get attendance allowance,

Which is not given if,

A. Late 15minutes more than three days a month.B. More than 3 casual leave in a month.

C. Availed leave without pay or 5 sick leaves.

D. Absent for any day in a month.

Production incentive

Production incentive is given if the production exceeds the production target. It is for the

production staff workers.Compensatory leave

Up to grade 3 to grade 1 work full 8 hours at off day or any gazette holiday, so that workeris entitles to one compensatory leave

Workers participation fund

All employees fall under it they are paid a part of profit as specified under

Supervisory Allowance

This allowance is for the Supervisors and grade IV, V and Junior Executives.

Night Shift allowance

Workers/employees up to JE (junior executive) are entitled to night shift allowance while

performing night shift duty.

Recreation Allowance

Every worker and employee up to JE get transport fair to their desired destination in

Pakistan in terms of recreation fair.

Shoe Allowance

Production workers and employees up to JE and office employees up to grade V are

allowed for the shoe allowance at July every year.Workers are provided safety shoes everyyear


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Cash handling allowance

This allowance is for the cash disbursement in factory.

Mutual benefits for workers and all employees of packages

Basic pay House rent allowance (house rent to workers and employees is 60% of the basic

pay)

Cost of living allowance (all employees)

Statutory special allowance (all workers and employees) Utility allowance (all employees in V grade and above)

Special allowance (Grade 3 and above)

Remunerations

Increase in remuneration

Annual increment:Annual increment is made on annual bases at 1st or April every year according to

performance. If education is increased than allowed increment is increased.

Promotion:

Merit & Suitability

Employment benefitsBonus:

According to profit on 31st December. Bonus is paid on the pro-rata basis on the basis ofwage salary, which is earned by an employee during the financial year and is calculated on

the basis of average salary.

Provident Fund:

Permanent employees get provident fund which is 10% of their basic pay and cost of living

earned. An annual amount is accredited by the name of employee from company.

Loans

Six month basic salary maximum as refundable loan in case of marriage and illness.

36months basic salary from provident fund for residential plot or construction. On separation every employee is paid the full amount of company and self

contribution along with the interest incurred.

Group insurance

Group insurance is made of every permanent employee from the company.


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Gratuity

In case of death, resignation, termination, retirement is paid on the basis of last basic pay

and after 10 years of service. Its not for the terminated employees.

Ex-GratiaThis the amount paid to the employee at the time of retirement, and it is as following

A. Less than 5 years nil

B. 5years services but less than 71/2 years one month salary

C. 71/2 year to less than 10 year 11/2 month

D. 10 year service and above 3 month

E. In case of death 3 month

Employee old age scheme

All employees covered under this, set up by the Government for the employees at the age of

58. The company contributed 6% of an employee wages/salary as employer share and 1%

of minimum wages as employees share.

CanteenCanteen is almost free for employees company deducts following amounts in terms of

canteen charges from salary

A. Worker 65p per meal

B. Supervisor 1 Rs 1/- rupee per mealC. Supervisor 2 Rs 2/- per meal

D. Senior mess Rs 132/- per month

Leave PolicyAnnual leaves

Workers 14 days, Employees 15 days

Casual Leaves

10 per year and can be enchased up to Junior Level Executive employees

Sick Leaves

8 leaves per month


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Hajj leave

One month leave with pay

Compensatory leave

Up to grade 3 to grade 1 work full 8 hours at off day or any gazette holiday, so that workeris entitles to one compensatory leave.

Medical

Medical coverage by company. And if any employee doesnt want the medical coverage he

can get medical allowance.

Disbursement of Pay

Pay is disbursed every month on the last day including incentives and hourly workers are

also paid on monthly basis.

Names of unions

There are 3 unions in packages Ltd.

Packages worker union

Muthada federation union Akbar group

Tariq Lateef and Abdur Rehman group. This union has a slogan of star (*)

Name of CBA in packages

Packages worker union is CBA in packages Ltd.

Packages worker union negotiates with management on the behalf of workers. It

represents all the workers of packages Ltd.

Issues Faced During the last year

No issues were faced during the last year regarding union. IR manager told that it is very

seldom when they have any conflict or issue with any of the union. They encourage their

employees to form union or take part in union because it not only helps employees to put

there issues in front of management but also enables management in smoothen the

operations. And rather than asking every employee about their problems they can ask CBA

about the issues.


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Working conditions of employment for unionized staff

Working Conditions of employment for unionized staff are as follows:

Maximum work period is 6 days per week and minimum rest period is 1 day in aweek

Minimum paid annual leaves are 14

Temporarily or contact employment in packages is usually 85 days after this if anyone find excellent then his contract may extend for next 85 days or make that

worker permanent. Minimum rates of pay is 6000 RS per month, n overtime is paid double to per hour

amount of work.

All workers should wear uniform and safety shoes provided by company All workers have to work 8 hours per day, shifts may rotate from morning to

evening and night.

Lunch break of 1 hour is provided to each n every worker. Workers are allowed 10 casual and 8 medical leave per year.

Steps are taken to comply with factories ACT by packages Ltd.Following are some steps taking by packages Ltd to comply with Factories Act.

Step 1: CleanlinessPackages provide clean environment to its workers. There is a complete round o clock

system of cleanliness. Trained sweepers are hired for this purpose.

Step 2: Disposal of wastes

Packages recycle most of its material and for those which cannot recycle they work on that

and make it completely harmless to society.

Step 3: Drinking water

Clean drinking water is available within each department for the workers.Water purifier

systems are fitted in each n every department so that each n every worker can drink cleann healthy water. Cold water is also available in summer season for workers and employees.

Step 4: welfare officers

In packages there is a section of welfare in IR department consist of three persons and 1

Assistant manager who handles all the matters of workers as well as employees welfare

like social security, workers children scholarships, death grant, marriage grant ,apprantuihip training etc.


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Step 5: precautions in case of fire

In packages there is a separate department for precautions in case of fire. This department

has 2 ambulance and trained staff. Fire department staff also trains the 2 or 3 peoples from

every department so that in emergency they can take actions immediately before fire team

reaches on the spot so that they can prevent big loss.

Step 6: safety

In packages workers are provided by uniform and safety shoes for the purpose of their

safety. In printing related department they are also provided by caps and lab coat so that

colors may not harm their hairs and clothes.

Step 7: Daily hours

In packages workers work 8 hours daily.

Step 8: Intervals for restIn packages interval/ lunch break of one hour is provided to each n every worker.

Step 9: Extra pay for overtime

In packages workers are paid double then their ordinary rate of pay per hour.

Step 10: casual leave and sick leave

In packages 10 casual and 8 sick leaves (with pay) per year are provided to each and every

employee and they can avail it any time they want.

Recommendation for improvement of working conditions unionized

staff

Minimum salary should be increased to Rs7000/- as per Government policy.

Safety material should include gloves and protective glasses also.

Warning Boards should be in different workshops regarding safety measures.


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