This memorandum of settlement outlines an agreement between Engro Foods Limited and its Employees Union regarding wages, benefits, and working conditions. Key points of the agreement include: 1) A 13% raise in basic salary for certain grades and a 10% raise for others. 2) Continued use of an incentive scheme that can yield up to two gross salaries annually based on meeting production targets. 3) Increases to monthly medical allowance, food allowance, and location premium. 4) One-time payments for maintaining industrial peace and closing negotiations. 5) Additional benefits like interest-free loans, marriage gifts, and improved access to healthcare. The agreement is valid for two

1. MEMORANDUM OF SETTLEMENT
Form W
Under Rule 69 of the Industrial Relation Rules, 1973
Read with section 2(xxviii) & 39 Sindh Industrial Relations Act 2013
Name of the Parties
Engro Foods Limited – South Plant (Sukkur)
Employees Union Engro Foods Limited “CBA”
Representing Workers
Abdul Jabbar Soomro
President
Mehboob Ali Mehar
General Secretary
Zulfiqar Ali Merani
Finance Secretary
Rana Majid Ashraf
Additional Joint Secretary
Representing Employer
Syed Murtaza Azhar Rizvi
General Manager Processing
Kashif Ahmed Soomro
General Manager Human Resources (Supply Chain)
Muhammad Faysal Riaz
Admin & Human Resources Manager (South Plant)
Riaz Ahmed Soomro
Assistant Admin Manager (Services & Security)

2. Short Recital of Case:
1 – On April 01, 2013, Employee Union Engro Foods Ltd., submitted Charter of Demand, to M/s Engro
Foods Ltd, Under section 42(1) of Industrial Relations Act 2010 (Revival and amendment) (Attached
Annexure A)
2- In Accordance with the provisions of IRA 2010, Engro Foods Ltd (the employer) formulated 04
members Management Negotiations Committee for Bilateral Negotiations on Charter of Demands.
3- Consecutive meetings were held between Bilateral Negotiation Committees of both sides on
24/4/2013,30,04.2013,21/05/2013,30/5/2013,05/06/2013,15/06/2013,25/06/2013,02/07/2013,09/07/2013,
16/08/2013, 23/08/2013, 29/08/2013, 06/09/2013, 24/09/2013 but on 10/10/2013 after in house failure of
bilateral negotiation the CBA served strike notice under sub section (3) of section 24 read with section 35
(3) of Sindh Industrial Relations Act 2013.
4- Upon receiving the strike notice the Conciliator Sukkur region interfered and called a meeting for
settlement of dispute on 22nd October 2013 under re-conciliator proceedings and advised union to extend
strike notice and start bilateral negotiation, so two in-house meetings were held on 30/10/2013 and
04/11/2013 and at last both parties reached settlement in which following terms and conditions were
agreed and settled between the two parties;
Agreement:
A) That the management (employer) will give raise in the Basic Salary of Grades A1,A2 @ 13%and
Grades A3,A4,A5,A 6 @ 10% of the current amount. This will be applicable to Workers who
were on Permanent Payroll on or before March 01, 2013 .The permanent workers (associates)
who have joined after 1st March 2012 will be given this increment on prorate basis.
B) That the Employer will continue with target Incentive Scheme, which if accomplished will yield
Gross Salary per year variant from 0.5 up to maximum of 02 gross salaries to all Workers subject
to accomplishment of targets. The payment will be made semiannually, based on year to date
gain/loss numbers. The contents of the Scheme are being agreed upon in a separate Annexure B
attached to this settlement. The appraisal system is also highlighted in the same annexure B which
is acceptable to both the parties.
C) The Monthly Medical allowance will be increases by Rs 300/-per month and, now it will be paid
at Rs 1,300/- per month.
D) That the Food Allowance will be increased to Rs 1,400/- per month indicating an increase of Rs
400 per month, exclusive of subsidies food that Management is already facilitating.

3. E) That the Management of the Company will award Maintenance of Industrial Peace worth Rs.
12,000/- per worker who will be in service of the company on March 01, 2013 on prorated basis.
This award will be one time fixed amount paid against the two years of peaceful operations.
F) That in addition to Maintenance of Peace Award. Management has agreed to award onetime
payment of One Gross Salary (On Prorated Basis) per worker for peacefully closing the Charter
Negotiation.
G) As a gesture of goodwill Management agreed to allow two instead of one permanent worker from
Sukkur Plant to perform Hajj in a year through open balloting. Company will sponsor Hajj
expense as per Government scheduled rates in blue category as determined in Hajj policy. All the
other formalities/expenses shall be borne by individual. The eligibility for the balloting would be
minimum 03 years of service with Engro Foods Sukkur Plant.
H) That the location premium will be increased to Rs 3300/- per worker per month, indicating an
increase of Rs 300/- per Worker per month.
I) That it is mutually agreed that Management will offer interest free loan for purchase of motor
bikes to five Workers per annum. The Loan amount will be equal to price of Honda CD – 70 as
per January 01 of that year. Eligibility criteria will be minimum four years of service by end of
previous calendar year and the individual shall have Equal Amount in Provident Fund. The
workers shall pay back the loan in thirty six (36) equal installments.
J) Effective from signing of the agreement it is mutually agreed that upon marriage of worker once
during the service, he/she will be greeted with marriage gift. Selection of gift will be discretion of
plant management and worth of gift shall not exceed Rupees five thousand only (5000/-).
K) Effective January 01 2014, Company will make sure that a Qualified local MBBS doctor will be
taken on Panel of company to facilitate permanent workers of Sukkur Plant.
L) Effective from signing of this agreement management as a gesture of goodwill will serve Sharbat
and dates to its permanent workers at Sukkur Plant during the Holy month of Ramazan.
M) Effective from Eid ul Adha to facilitate and greet employees on auspicious occasion of EID the
Management has decided to give each worker with two trays of 250ml Olpers & 1 KG Tarka.

4. Others:

It was agreed that all the benefits given by the Management (as stated above) is acceptable to the
Union, its representatives and Workers Committee. All the points finalized in the meeting are
fully acceptable and endorsed by both parties in the negotiation.

None of the agreed points of this settlement shall be changed without the due consent of the all
the concerned members of Negotiating team and will not be challenged at any times.

This aforesaid agreement will be applicable for the period of Two Years w.e.f. March 1st, 2013 to
February 28th, 2015, which is in accordance to section 50(2) of the SIRA 2013 and shall continue
to be binding on the Parties after the expiry of the aforesaid period until the expiry of two months
from the date on which either party informs the other party in writing of its intention of no longer
to be bound by the settlement.

It has been further agreed that during the period of this settlement, or afterwards CBA or any
committee representing Worker will not forward any demand either financial or nonfinancial.

It has also been agreed that management has not changed or manipulated any benefits or
suggestions thereof.

CBA agreed that by signing this document dated 08th November 2013, they are now withdrawing
all there other demands which were raised through their Charter of Demand dated April 01 2013.

Both the parties appreciated the essence with which the negotiations took place and the
Committee representing the Management/Employer thanked the Committee representing the
workers, for their cooperation and attitude. Also, the Committee representing the Union thanked
and appreciated the cooperation and consideration given by the members of the Committee
representing the Management as well as Management of the Company.

A prayer was also undertaken for the success and prosperity of the Company and all its
stakeholders.

5. 
In Witness Whereof, the Parties above named have signed this Memorandum of Settlement at
Office of Assistant Director Labour Conciliator Sukkur in presence of Conciliator Sukkur region
on this 08th day of November 2013.
Signature:
Management Representatives
CBA Representatives
Kashif Ahmad Soomro
Abdul Jabbar Soomro
Syed Murtaza Azhar Rizvi
Mehboob Ali Mehar
Muhammad Faysal Riaz
Zulfiqar Ali Mirani
Riaz Soomro
Rana Majid Ashraf
Copy To:
1.
2.
3.
4.
The secretary, Ministry of Labour, Islamabad.
The Secretary Labour, Department of Labour Government of Sindh.
The registrar of Trade union, Hyderabad.
The Assistant Director Labour, Sukkur.

6. ANNEXURE B:
Criterion of Incentive based scheme being offered in South Plant EFL, losses include Plant Milk process
losses.
For the Year 2013
Process Loss (TS)
Control Mechanism
2013 (Target 0.88%)
0.5
Gross
Salary
0.83%
1.0
Gross
Salary
0.78%
2.0
Gross
Salary
0.73%
For the Year 2014
Scenario 01:

If target of losses remain same as that of 2013 then following criteria will be applicable for
calculation of loss control incentive in 2014.
Process Loss (TS) Control
Mechanism
0.5
Gross Salary
1.0
Gross Salary
2.0
Gross Salary
2014 (Target 0.88%)
0.83%
0.78%
0.73%
Scenario 02:

If Process loss target for year 2014 varies from target of 2013 then following criteria will be
applicable for loss control incentive in 2014. .
Process Loss (TS)
Control
Mechanism
0.5
Gross Salary
1.0
Gross Salary
2.0
Gross Salary

7. Target 2014

(Target - 0.05%)
(Target –0.10%)
(Target – 0.15%)
It has also been resolved that the results shall be monitored and assesses by a joint Committee of
Members of union and Management having equal representation.