MANAGEMENT CHARTER OF DEMANDS

(This is a suggestive document)

General Conditions
Demand No.1
Period of Settlement
The Settlement will be for ___ years and will be _____ in nature i.e. effective from the date of
signing.
Demand No.2
Productivity Improvements
The Settlement will be productivity linked for reasons mentioned in our covering letter.
Productivity improvement plans as indicated in the Annexure will need to be agreed for better
competitiveness.
Demand No.3
Certified Standing Orders
To ensure proper functioning and discipline in the factory, the Management will table draft
Standing Orders in view to get this Certified as per the provisions set out in the Bombay
Industrial Relations Act, 1946 and the union will extend their whole hearted co-operation in
letter and spirit during the certification process.
Demand No.4
Entry Level grade for employees
In keeping pace with the competitive business environment, the Management shall continue to
have the entry level grade of as per the Memoradum of Understanding and Minutes of the
Meeting signed by the Approved Union and itself on _____ so as to facilitate any new
recruitment for future business requirement and in the context of equity to higher skills and
competencies of the concerned senior workmen.
Demand No.5
Flexibility in operations
Depending on the exigencies of the work / business if the need arises, any employee, irrespective
of his grade, shall be deployed, keeping in mind his capabilities in terms of skills and

competencies, in any part of the operations of the factory so as to ensure smooth running of the
plant. No separate allowance or benefit for the same shall be given.
Demand No.6
Improvements in work methods and technology
Any improvements / rationalization in work or work methods which result in productivity
improvements will continue to be done as part of continuous improvements and Union shall be
kept informed of the improvements. The Union shall whole-heartedly pursue and participate in
these improvements keeping in mind the competitive nature of the business scenario prevailing
currently. The management will have right to bring in and/or remove plant and machinery as per
exigencies of business.
Demand No.7
Implementation of improvement activities
Employees will wholeheartedly pursue and any improvement activities, which shall be mutually
beneficial to both the employees and the Factory.
Demand No.8
Collective Bargaining
The Union will not cause any disruption to the operations at ______ plant through any unfair
labour practice or illegal industrial action, and shall resolve all differences between it and the
Management by legal means and through mutual process of collective bargaining at all points of
time.
Demand No.9
Outsourcing of operations
The Management shall have the flexibility to further outsource any part of its operations, so as to
ensure the competitiveness of the factory and the long term sustainability of the site.
Wages
Demand No.10
Basic fitment

Demand No.11

Dearness Allowance
Demand No.12
Cost to Company
All indirects shall continue to be costed as is being done now and any new incremental cost shall
be costed to the package which is available to the workmen based on the Cost to Company
concept. The incentive scheme will also be costed as part of the package.
Demand No.13
Leave and Paid Holidays
Demand No.14
Leave Travel Allowance
Demand No. 15
_________Allowance
Demand No.16
_______Bonus
Demand No.17
Shift Allowance
Demand No.18
_______ Award
Demand No.19
Bonus and Gratuity
Bonus will be continued to be paid to those who are eligible for the same as per the Payment of
Bonus Act, 1965.
The present system of payment of ex-gratia in lieu of Bonus to those employees who have
crossed the Bonus limit shall stand discontinued.

Gratuity will continue to be paid as per the Payment of Gratuity Act, 1972. Apart from this and
the stautory pension from the PF Authorities, there shall be no other retiral benefits to the
workmen.
Demand No. 20
Incentive for no production plan period
No incentive shall be payable for no production plan periods.
Demand No.21
Incentive during breakdowns
No incentive will be payable for any breakdown periods.
Demand No.22
Changeover time
Demand No.23
Surplus Manpower
If employees are not able to be productively deployed on the lines and are surplus in nature for
any particular shift, they will not earn any incentive for that particular shift.
Demand No.24
Incentive during leave periods
If an employee is not physically present in the factory, he shall not earn any incentive for that
day even if he is on leave of any type.
Demand No.25
Annual Increments
Demand No.26
Tax Liability
All tax liabilities arising as a result of the monetary and other benefits which accrue to the
employee shall be borne by the employee himself fully.

Benefits
Demand No.27
Salary and Festival Advances
As a result of this monetary increase in wages, the practice of grant of Festival Advance, Salary
Advances shall stand discontinued.
Grant of salary advances for genuine medical emergencies shall continue as is being done now
however this shall require a certification by a qualified MBBS doctor and the Company Medical
Retainer. The employee should also have an average attendance of 260 days or more in the last 3
calendar years prior to the year in which he seeks an advance. The employee should also have a
similar record of attendance in the year in which he seeks an advance.
Grant of these advances are subject to the fulfilling of the provisions of the Payment of Wages
Act.
Demand No.28
Uniforms and Safety Shoes
Demand No. 29
Contribution to Co-operative Society
Demand No.30
Deductions authorised by the Union
The present practice of deductions from the employees salary on the authorisation by the Union
vide its letter on a case to case basis shall stand discontinued. Henceforth the Management shall
not deduct any amount from the employees for the Union fund. The Union should take recourse
to the collection of its funds from its members on their own.
Demand No.31
Work Practices
Safety
All employees shall obey all the Safety rules which are notified in the interest of the workmen.
All workmen will punch "IN" and punch "OUT" in uniforms and safety shoes and at all times
during working hours shall be in uniforms and safety shoes. The employees shall use appropriate
safety appliances wherever required. Violation of the same shall be liable to strict disciplinary
action.

Rest Intervals
There shall be staggered intervals for rest and all the machines should run continuously for a the
full period of the shift by adjusting / staggering rest intervals and during the time for personal
needs, wherever required. The machines should not stop running at the end of the shift.
Employees should ensure that running hand over of machines take place to the next shift so as to
improve productivity and reduce quality defects.
Housekeeping and Cleanliness
All workmen shall be responsible for clean and neat housekeeping at and around their
workplace. They shall ensure before leaving the place of their work at the end of the shift that
machines, tools and place of work are neat and tidy.
Absence from workplace
The workmen shall not leave their place of work/section/department before the scheduled time of
rest interval and also they shall report at their place of work before the end of the rest intervals.
Any person who is found absenting from his workplace without sufficient reason or prior
permission from his superior, shall have his wages cut for the above said period on the basis of
No Work No Pay principle.
Material Handling
As per present practice, all workmen will continue to do material handling jobs to the extent it
concerns their job.
Chronic absences
Any workmen who is absenting himself for more than 10 days consecutively, will have to
necessarily meet the Departmental Head and Personnel Manager before he is allocated to work.
Repeated instances on more than 2 occasions in a Calendar year shall render him liable for strict
disciplinary action.
Demand No.32
Canteen Facility
Conclusion
All other terms and conditions agreed in the earlier Long Term Settlements shall continue
unchanged except where specifically modified as above.
The Management reserves its right to alter / amend or modify this charter at any given point of
time during the progress of negotiations and serve it on the Union for their consideration.