switch gears limited case study

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MEMORANDUM OF

SETTLEMENT(Reached on 28-12-2009)

Period:

(1-1-2010 to 1-1-2013)



FORM-J

Memorandum Of Settlement

Under Section 2(p) and 18(1) of the Industrial Disputes Act, 1947, read with Rule 68 of the

West Bengal Industrial Disputes Rules,1958

Name of the parties: Switchgears Limited

93/1 DumDum Road

Kolkata 700074(Here in referred to as the management)

AND

Their permanent workers represented by

Switchgears karmachari Congress(Regd. No. 10386) and

Switchgears Workers Union(Regd. No.10384),93/1 DumDum

Road

Kolkata 700074(herein referred to as the Unions )

Representing Employeeer: Representing Workmen

Mr. K . Majumdar Mr. Ashutosh Tiwary Mr.Hemant Upadhaya

President President

General Factory Manger Mr. Ramesh Kumar Mr. Chandan Dhekial

And General Secretary General Secretary

Mr. Shaymal Chakrobourty Mr. Amal Saikia Mr. Nashid ul Ameen

Chief Human Resource Manager Working President Working President



SHORT RECITAL OF THR CASE

WHEREAS the union vide its letter on 18/11/2009 terminated the long term wage

settlement dated 18th October 2004 between the parties and also submitted a charter of

demands dated 11/12/2009, copy whereof is annexed and marked with the letter A.

AND WHEREAS the management has explained at length that due to recession it was

essential to trim down the surplus work force and effectively utilize the existing work force

(human resources) with the increase in competition in domestic and international market the

scenario requires full co operation from the workers and their representative unions for

increasing the productivity and improving the quality of the products. For the same regular attendance from the workers is very important.

AND WHEREAS in interest of maintaining cordial relationship and in full appreciation of

the changing business environment and business needs , detailed discussions and

negotiations have been held between the management and the union on all matters listed in

the chartered of demands.

AND WHEREAS the parties have resolved all issues amicably and have arrived at the

following settlement in the interest of the factory, the workplace and the mutual interest.

NOW this settlement is signed accordingly between the management and the union under section 18910 of Industrial Disputes Act, 1947 on the following terms and conditions:-

TERMS OF SETTELMENT

1. BASIC SALARY/ WAGE SCALE

The existing basic pay of all permanent daily rated workmen, service staff, monthlytechnical staff will be increase by 10% w.e.f. 1/1/2010 the revised scale pay of is as and

marked D.

All the above mentioned categories will be granted 1 increment in the revised scale

effective 1/1/2010.



2. DEARNESS ALLOWANCE

As demanded DA would be paid at Rs. 12/- per point, using 1982 CPI.

3. ACTING ALLOWANCE: Workmen required to perform job of higher grade will be paid

additional Rs. 10 per working day.

4. SELF DEVELOPMENT ALLOWANCE: This allowance will be introduced as Rs. 400

per month for all permanent employees.

5. CONVEYANCE ALLOWANCE: This allowance will be introduced at Rs.500 per

month for all permanent employees.

6. TECHNICAL ALLOWANCE: This Allowance will be introduced for all technical

Permanent workers at Rs.200 per month.

7. PRODUCTIVITY ALLOWANCE: This allowance to be introduces at Rs. 500 per month

for all permanent workers base don overall factory performance of 40 SMS.

INCREMENT IN EXISTING ALLOWANCES AT THE RATE OF 5%:

1. HOUSE RENT ALLOWANCE : In addition to the present housing allowance under

the West Bengal Workmen House Rent Allowance Act, The house rent allowance

will be increased by 5% for all the permanent workers.

It is specifically agreed that in the event of any revision of entitlement or eligibility

under the Payment of Bonus Act the additional HRA would stand withdrawn or

adjusted to set of the increase in the bonus entitlement.

2. CANTEEN : Existing canteen allowances will be increased by 5% for all permanent

workers.

3. CHILDREN’S EDUCATION ALLOWANCE : This allowance will be revised by

5% of the existing allowance per month for all the permanent workers.

This allowance will not form part of wages or salaries and will not rank for any

statutory benefits.



8. OVER TIME: As cordially agreed by both the parties that there will be abolition of over

time as a result of which no over time allowances will be paid in place of that productivity

allowance ahs been introduced for all the permanent employees.

SIGNATUR OF THE REPRESENTATIVE SIGNATURE OF THE

REPRESENTATIVES

OF THE EMPLOYER : OF THE WORKMEN:

Mr. K . Majumdar Mr. Ashutosh TiwaryMr.HemantUpadhaya

President President

General Factory Manger Mr. Ramesh Kumar Mr. Chandan

Dhekial

And General Secretary General Secretary

Mr. Shaymal Chakrobourty Mr. Amal Saikia Mr. Nashid ul

Ameen


Witness:



Mr. Shaymal Chakrobourty Mr. Amal Saikia Mr. Nashid ul Ameen


Mr. V . Joshi

Factory Personnel Manager

Copies to:

1. The Asst. Secretary,Labour Dept.,Government of West Bengal,W ritersBuilding,Calcutta 700001

2. The Conciliation officer &Asst.Labour Commissioner,Government of West

Bengal,New Secretariat Building,1 Krian Sankar Roy Road,Calcutta 700001

3. The Labour Commissioner,Government of West Bengal,New SecreatatiatBuilding,1 Kiran Sankar Roy Road,Calcutta 700001

ANNEXURE

A

Switchgears karmachari Congress(Regd. No. 10386)

andSwitchgears Workers Union(Regd. No.10384),

Correspondence Address Redg. Office93/1 DumDum Road, 91/4 DumDum Road

Dum dum Dum dum

Kolkata Kolkata 700074

To

The General Factory Manger

SwitchGears Limited93/1 DumDum Road

Dum dumKolkata 700074Sir,

In continuation to our letter dated 18/11/2009 addressed to you. Enclosed herewith please

find the Charter of Demands for the workmen of Dumdum Road Factory . You are well



aware that there is an extraordinary and unprecedented price – hike of all the day to day

necessaries essential for the workmen. The workmen are suffering fiercely to maintain their

families within the limits of their present earning. The annexed Charter of Demands has

been prepared to get a slight relief from the suffering of the workmen, which will certainly

be found to be fair and reasonable having retrospective effect from 1-1-2010 for the

period of three years.

We therefore, request you to start discussion over the Charter of Demands so that we can

reach a new settlement in early time.

Expecting your considerate reply at the earliest.

Thanking you,

Yours faithfully,

Mr. Ramesh Kumar and

Mr. Chandan Dhekial

Designation

General Secretary

Copy to :-

The Labour Commissioner & Conciliation Officer

Govt. of West Bengal,

New Secretariat Building

Kolkata – 700 001

Enclo : Charter of Demands

Switchgears karmachari Congress(Regd. No. 10386)and

Switchgears Workers Union(Regd. No.10384),Correspondence Address Redg. Office93/1 DumDum Road, 91/4 DumDum Road

Dum dum Dum dum

Kolkata 700074 Kolkata 700074

Ref No…………… Date………….

CHARTER OF DEMANDS

I. Compliment :

Due to the inflation, increased competition and continuous reduction in work force thework pressure on the existing employees have increased considerably so the unions



have jointly decided to put the following demands for the consideration of the

management.

II .Wages: The wages to be increased by 10% of the basic pay.

Revised Pay Scale:

Daily Rated Rs./Day

DR I 72-7.2-144-14.4-288

DR II 75-7.5-150-15-300

DR III 80-8-160-16-320

Service Staff Rs./Month

Peon 1000-100-2000-200-4000

Watchman 1000-100-2000-200-4000

Driver 1000-100-2000-200-4000

Sub-clerk 2000-200-4000-400-8000

MP Staff Rs./Month

T-1 1500-150-3000-300-6000

T-2 1700-170-3400-340-6800

III. Dearness Allowances:

Dearness Allowances would be paid at Rs. 12 /- per point using 1982 CPI.

IV. House Rent Assistance:

The present amount of House Rent Assistance to be enhanced by 5% for all the workmen.

V. Children’s Education Allowance:

Children’s Education Allowance will be enhanced by 5%.



This Allowance will not form part of wages/salaries and will not rank for any statutory oral

benefits.

VI. Leave Travel Allowance:

The present amount of LTA shall be increased by 5%, for all the categories of workmen.The existing terms and conditions shall remain unchanged.

VII. Attendance:

The company should pay Rs. For each day’s working to all the workmen as attendance

allowance, in order to reduce absenteeism.

VIII. Overtime:

Overtime pay shall be abolished by the company.

IX. Allowances:

A) Attendance Allowance : The company should pay Rs. For each day’s working to

all the workmen as attendance allowance.

B) Acting Allowance : Workmen required to perform job of higher grade shall be

increased by Rs. Per day working.

C) Self Development Allowance : Shall be increased by Rs. Per month for all the

workmen.

D) Conveyance Allowance : To be revised to Rs. To all the workmen.

E) Productivity Allowance : To be revised to Rs. For all Daily rated workmen and

same should be introduced for service staff and monthly paid staff based on overall

factory performance of 40 S M S.

F) Technical Allowance : The present amount of Technical Allowance shall be revised

to Rs. And shall be introduced for daily rated workmen .

X. GENERAL:



I. PERIOD OF SETTLEMENT : The period of settlement should be for three

years effective from 1-1-2010, the existing benefits/facilities/privileges not

demanded in the Charter of Demand shall continue. Union deserve it’s right

to change/add/alter or amend the above demand as and when necessary.



ANNEXU

RE B

REVISED SCALE OF PAY

EFFECTIVE FROM1-1-2010

DAILY RATED

Rs./DAY

DR I 65-6.5-130-13-260

DR II 67-6.7-134-13.4-268

DR III 70-7-140-14-280

SERVICE STAFF

Rs./MONTH

PEON 900-90-1800-180-3600

WATCHMAN 850-85-1700-170-3400

DRIVER 950-95-1900-190-3800

SUB CLERK 1800-180-3600-360-

7200

MP TECHNICAL Rs./MONTH

T-1 1300-130-2600-260-5200

T-2 1500-150-3000-300-6000



Arindam Dey

[email protected]

switch gears limited case study

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