Download - 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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