Lahore Business School

Term Project Industrial Relations

Masood Textile Mills
Submitted to: Madam Shafaq Naeem Submitted by: Amina Ishaq (BBA 02093248) Shoaib Alam (BBA 02093189) Abdul Mateen (BBA 02093183) Moiz Ahmed Butt (BBA 02093236)

Masood Textile Mills (MTM)

Introduction
Masood Textile Mills are leaders in creating, developing and manufacturing of knitted apparel products right from basic to highly fashioned garments thus responding to emerging trends in the industry. The company translates conceptual ideas of its customers into reality and shapes them through its technical bent and professional acumen. The team here strongly believes that Customer satisfaction is the essence of business today. MTM has the technology with expertise, products with knowledge and most importantly the right mindset to achieve total customer satisfaction. Its Headquarter is Located in Faisalabad and it has distribution centre in Lahore at Premises of Klass Textile mills Ltd.

What is a trade union?

A trade union is an organization of employees formed on a continuous basis for the purpose of securing diverse range of benefits. It is a continuous association of wage earners for the purpose of maintaining and improving the conditions of their working lives. The Trade Union Act 1926 defines a trade union as a combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workmen and employers or between workmen and workmen, or between employers and employers, or for imposing restrictive condition on the conduct of any trade or business, and includes any federation of two or more trade unions.

Purpose of Trade Union

1. Greater Bargaining Power The individual employee possesses very little bargaining power as compared to that of his employer. If he is not satisfied with the wage and other conditions of employment, he can leave the job. It is not practicable to continually resign from one job after another when he is dissatisfied. This imposes a great financial and emotional burden upon the worker. The better course for him is to join a union that can take concerted action against the employer. The threat or actuality of a strike by a union is a powerful tool that often causes the employer to accept the demands of the workers for better conditions of employment. 2. Minimize Discrimination The decisions regarding pay, work, transfer, promotion, etc. are highly subjective in nature. The personal relationships existing between the supervisor and each of his subordinates may influence the management. Thus, there are chances of favoritisms and discriminations. A trade union can compel the management to formulate personnel policies that press for equality of treatment to the workers. All the labor decisions of the management are under close scrutiny of the labor union. This has the effect of minimizing favoritism and discrimination.

3. Sense of Security
The employees may join the unions because of their belief that it is an effective way to secure adequate protection from various types of hazards and income insecurity such as accident, injury, illness, unemployment, etc. The trade union secure retirement benefits of the workers and compel the management to invest in welfare services for the benefit of the workers.

4. Sense of Participation
The employees can participate in management of matters affecting their interests only if they join trade unions. They can influence the decisions that are taken as a result of collective bargaining between the union and the management.

5. Sense of Belongingness
Many employees join a union because their co-workers are the members of the union. At times, an employee joins a union under group pressure; if he does not, he often has a very difficult time at work. On the other hand, those who are members of a union feel that they gain respect in the eyes of their fellow workers. They can also discuss their problem with the trade union leaders.

6. Platform for self expression

The desire for self-expression is a fundamental human drive for most people. All of us wish to share our feelings, ideas and opinions with others. Similarly the workers also want the management to listen to them. A trade union provides such a forum where the feelings, ideas and opinions of the workers could be discussed. It can also transmit the feelings, ideas, opinions and complaints of the workers to the management. The collective voice of the workers is heard by the management and give due consideration while taking policy decisions by the management.

7. Betterment of relationships
Another reason for employees joining unions is that employees feel that unions can fulfill the important need for adequate machinery for proper maintenance of employer-employee relations. Unions help in betterment of industrial relations among management and workers by solving the problems peacefully.

History of Trade Union:

Masood Textile Mills came into existence and started its business in 1984-85.Initially the company was a member of PHMA (Pakistan Hosiery Manufacturing Association).As it had started its business with spinning. With the passage of time it expanded its business and entered into Textile industry. After being entered into the Textile industry Masood Textile Mills joined the trade union APTMA (All Pakistan textile mills association). APTMA is a national trade union of Pakistan leading the companies associated with spinning and textile.

History of APTMA:
All Pakistan Textile Mills Association (APTMA) is the premier national trade association of the textile spinning, weaving, and composite mills representing the organized sector in Pakistan. APTMA emerges as the largest association of the country as it represents 396 textile mills out of which 315 are spinning, 44 weaving and 37 composite units. These spinning mills have production facilities of texturing, mercerizing and dyeing of yarns; weaving mills have sizeable number of air-jet looms, and the composite mills have manufacturing facilities from spinning to finished textile products under one roof. The total installed capacity of APTMA member mills accounts for 9,661,366 spindles, 61,608 rotors, 10,452 Shuttleless/Airjet Looms and 1897 conventional looms. The Association's members produce spun and open-end yarn, grey, printed dyed fabrics and bed linen.

The Role of APTMA

As per charter and by-laws, aims and objectives of the Association are; 1. To encourage friendly feeling and unanimity amongst Textile Mill owners on all subjects connected with their common good. 2. To secure good relations between members of the Association. 3. To promote and protect the trade commerce and manufactures of Pakistan in general and of the cotton trade in particular.

4. To consider questions connected with the trade commerce and manufactures of its members. 5. To collect and circulate statistics & information classify relating to the trade, commerce and manufactures of its members. 6. To take all steps which may be necessary for promoting, supporting or opposing legislative and other measures affecting the trade, commerce or manufactures of its members. 7. To make representation to local, provincial and central authorities on any matter connected with the trade, commerce and manufactures of its members.

Code of Conduct:
Child labor:
Child labor is strictly restricted in Company. The minimum age requirement for labor is under 18.For age verification of the employees, National Identity Card is required and it is kept in companys record. This policy is applied for all the employees without any discrimination.

Forced labor Policy:

Force labor is strictly not allowed in the factory, so company does not enjoys force labor. Workers are not bound to give any kind of security before getting started with their job, neither original document are required. Workers reserve the right whether they want to join the factory or leave it without any force.

Health and Safety:

1. 2. 3. 4. Emergency calls of accidents Smoking is banned within work premises. Proper training for emergency situations. All work areas are properly lighted. Proper checking of entrance and exit.

Safe and secure working place:

We provide safe and secure working place for our workers according to the rules of the country, which include: 1. 2. 3. 4. Proper lightening. Potable drinking water. Separate washrooms for male and female workers. Air ventilation in work place.

Safety procedure in case of fire and other emergency situations:

Fire extinguishers are installed in every part of the factory which are inspected after each month. Employees are properly trained about fire fighting after each month, it its kept in record. A team of professional fight fighters train the employees regularly. Sirens are installed to alert employees in case of emergency.

Freedom of Association:
Workers have the freedom of expression. For this purpose a committee of workers has been made. Suggestions and complaint boxes are installed in the company. Workers have the access to higher management in case they have any problem.

Discrimination Policy:
We provide equal opportunities for job and training to all the workers without any discrimination. Respect for ladies is compulsory so they may perform their job without any hesitation.

Attendance:
Employees must come at fixed time at work so that they would start the work at time. The companys attendance is presented by the HR department after appointed where in the employees name designation and department etc are mentioned.

Over time:
1. Every employee must display his/her company card on entering and leaving the factory gate. 2. Every employee is expected to complete his/her assigned work on given time. 3. Overtime duties re-assigned according to Factories act 1934. 4. Overtime duties are determined by the corresponding section or department head. 5. Overtime will be paid with salary by the 10th of month by accounts department. 6. Employees will not claim leave as his /her right. Rather it will be solely depend on factorys work load situation.

Leave:
No application will be sanctioned until department head or a designated person approves it. Without formal person approves it. Without formal application employee will be considered absent. These are the types of application a person can request: 1. Chance application (10 in a year) 2. Illness (8 in a year with full pay) 3. Yearly (14 in year) 4. Pregnancy (6 months) West Pak Maternity Order 1958

Festival holidays:
Factory remains close in following festivals and national days: Eid Independence day Pakistan Day Labor day Iqbal day Quaid-e-Azam day

General instructions for Employees:

To cooperate with the company, so safety policies of company should be followed. Keep the workplace clean. Use the safety kits provided by the factory. To inform management about the machinery faults.

Management of Trade Union

Companies associated with APTMA do not recruit employees separately to work as the management of Union .All the member companies select their existing employees for the union election. The management of the member companies nominates their candidates, who want to take contest union elections for the management of APTMA. Each member company has the right to vote and the person with maximum number of votes is elected as Chairman of APTMA and other key posts.

Membership
APTMA membership consists of partnerships and or individual proprietorships, which operate machinery for spinning, dyeing, texturizing, twisting, or otherwise processing of yarn, thread, or cordage, grey, printed and printed cloth and made ups for sale. The expenses of maintaining APTMA's professional staff and offices are met from the annual subscriptions and services provided to members. APTMA Principal Offices is the central administrative organization, but each member has its own offices and governing board. For information about Membership, Chief Operating Officer of APTMA, Principal Office, can be contacted.

QUALIFICATION FOR MEMBERSHIP

Any individual, firm and/or company owning and/operating a manufacturing unit and meeting the criteria specified here under shall be eligible for membership of the Association:

a)

Yarn manufacturer: The manufacturing unit must consist of at least 5,000

spindles or 1,000 rotors.

b) Cloth or Fabric manufacturer: The manufacturing unit must consist of at least 200 local looms or equivalent thereof or 48 Shuttle less / AirNet looms or equivalent thereof. c) Textile manufacturing: Any individual firm or company intending to install a textile manufacturing unit that is expected should meet the eligibility.

Process of joining Trade Union:

The firms who fulfill the requirements to join Trade union have to submit application for the membership through the respective Regional Offices by paying admission fee and, annual subscription. It is necessary for the company to proof the identity of its business, and all the regional offices operating. Each member has to submit the audit report. APTMA grants membership for a period of one year and it expires on 31st. day of March every year irrespective of the date of grant of membership. The membership shall be renewable on annual basis on payment of membership fee.

Effects of Trade Union activities on workmen and management:

The management and workmen of members of the trade union feels a sense security, participation, job satisfaction after joining the Union. It adds loyalty and motivation to its workforce so they can perform their jobs confidently .As they are sure that if they will have issues or discomfort with job they could ask the trade union to solve their problem on their behalf.

Historical events which the trade union had achieved:

Currently Pakistan is facing the problem of Power, which has entered into a severe situation. Due to the problem of Load shedding textile industry was facing great loss. Two months ago the Chairman on behalf of all the APTMA members had a meeting with President of Pakistan .The chairman put the problems which Textile industry was facing due to Power cut, in front of the President. The President considered the request of APTMA and exempted the APTMA member companies from Load shedding. This was a major achievement for APTMA.

Recommendations:
After observing and analyzing we are of view that, there should be trade union for every industry. As it protects n secure a lot of benefits for its members. Trade union acts as a shield to all those environmental, internal and external obstacles which an industry may face. It is also a platform for the members of trade union where they can put forward their problems and can get their solutions. Though trade unions are already working for their members in a very positive way but still trade unions should avoid few points that are following:

Avoid lobbying:
Trade unions and member of trade unions, both of the parties should avoid developing lobby among particular members or among particular parties of industry that can influence or affect any public decision. The effort for the benefit should be for equal interest of all members.

Avoid discrimination:
All the members of trade union should enjoy rights and privileges. Issues and problems of each member should consider equally. Value of no member should b ignored on any basis.

Avoid political use of members:

Trade union should not use membership of companies and their assets or their labor force for the benefit of any political party. Trade unions should work for means of benefits n services to its members only. No interest of any other political or social party should be involved.