(RULE 70)






MR. TARIQ RIZVI - Managing Director

MR. FEROZE J. CAWASJI - DMD Finance & Corporate Affairs

MR. SHAH M. SAAD HUSSAIN - G.M Corporate Affairs

MS. SHARON DIAS - Manager Human Resource

SYED SHAHID MAHMOOD - Manager C&E Services

MR. MOAZZAM MUBARAK - Manager Finance

MR. TARIQ DAUD - Section Head HR (IR)


MIRZA ZAHID BAIG - Chief Engineer Materials

MR. SUHAIL SULEMAN - Chief Engineer S&T

MR. FAROOQ CHANNAH - Sr. Management Executive Transport

HAFIZ SHAHID HUSSAIN - Management Executive – I, HR


MR. MANARAS KHAN - President

MR. S.M. NIAZ AHMED - General Secretary

MR. M. SARFARAZ KHAN - Vice President

MR. AYAZ ALI SHAH - Joint Secretary

MR. ABDUL WAHEED KHAN - Finance Secretary

MR. GHULAM RABBANI - Press Secretary

MR. KARIM BUKSH - Member, Managing Committee

MR. MUNIR AHMED - Member, Managing Committee

MR. MUHAMMAD ALTAF ALI - Member, Managing Committee

MR. NOOR MUHAMMAD - Member, Managing Committee

Dated. April 18, 2012



THIS AGREEMENT is made on this April 18, 2012 between PAK-ARAB REFINERY LTD. KARACHI, a Public Limited Company incorporated in Pakistan under the Companies Ordinance 1984, and having its Corporate Headquarters at Korangi Creek Road, Karachi, Pakistan hereinafter called the “COMPANY” (which expression wherever the context so admits shall include and mean its successors and assigns) being the party of the first part.


PARCO WORKERS’ UNION, an officially registered industry wise Trade Union with National Industrial Relations Commission and declared as the Collective Bargaining Agent C.B.A (FOR WHOLE ESTABLISHMENTS OF M/s Pak-Arab Refinery Ltd. which establishments have been declared as one CBU vide Order dated 13.01.2010 in Case No. 19(24)/09 issued by NIRC Islamabad hereinafter called the UNION (which expression for the purpose of this Agreement wherever the context so admits shall include and mean its successors and assigns) of the other part.


WHEREAS it is the intension and purpose of this Agreement to ensure sound and mutually beneficial industrial and economic relationship between the parties hereto, to establish labour relations within the COMPANY to clarify the rights and responsibilities of the COMPANY, the (C.B.A) UNION and the Workmen, to provide orderly and peaceful means of conducting negotiations and resolving any misunderstandings or grievances, to compensate for rising cost of living to set forth herein the basic and complete settlement between the parties and covering wages and other terms and conditions of employment and to ensure continued efficiency and high productivity in order to promote and improve the industrial and economic relationship of the COMPANY and the workmen.


It is agreed that the Company’s Management has the exclusive right and sole responsibility to operate the COMPANY and to conduct it business, to obtain full work from all its workmen during working hours and to direct the workplace in accordance with law. The Management’s right shall include but not be limited to:

a. The right to direct and control the workforce i.e. among others the right to hire, promote, demote, transfer, discipline, discharge, dismiss, to create or discontinue jobs, to utilize the service of workmen on alternative jobs when necessary, to determine the number of workmen needed, workman qualifications, standards of performance, job requirements and job contents.

b. To establish rules and regulations.

c. To make optimum utilization of its workforce, tools equipment and other resource.

d. To maintain workmen discipline and production efficiency; and

e. To determine the means, methods, processes, materials procedures and schedules of production. The COMPANY’s exercise of its rights to manage shall not violate any of the expressed provisions of this Agreement or applicable laws.

It is recognized that the function of the C.B.A UNION is to serve as a Collective Bargaining Agent on matters relating to wages, hours of work and conditions of employment, as specifically expressed in this Agreement.

This recognition of C.B.A Union rights should in no way be interpreted as lessening of the Company’s responsibilities to its individual workmen. For this reason and also because of the broad responsibilities of the Company to the Government of Pakistan to its customers to the public, to its owners/shareholders, and to its workmen, the relationship between the Company’s to initiate action. On the other hand, the C.B.A UNION must maintain the right to protest and appeal the actions of the Company whenever they believe the Company’s actions are contrary to the good their members. All actions enumerated above shall be governed in accordance with applicable law.


WHEREAS the PARCO WORKERS’ UNION registered as an Industry-wise Trade Union (Registration No. 9/83 dated November 12, 1983) exercising the right and functions of Collective Bargaining Agent of workmen employed by the Company and stations/terminals anywhere in Pakistan at all its installations, establishments, Mid-Country Refinery Qasba Gujrat offices and any place of work submitted a “CHARTER OF DEMANDS” under the cover of their letter dated August 05, 2011 for consideration by the Company.

AND WHEREAS on having received the said “CHARTER OF DEMANDS” bilateral negotiations where undertaken by the parties upon receipt of approval of change of office bearers of PARCO WORKERS’ UNION BY NIRC vide letter No. 13(84)/2011 dated October 21, 2011 which were held from time to time extending over several meetings by mutual consent of the parties.

AND WHEREAS as a result of through and detailed bilateral negotiations and discussions as aforementioned the following Collectively Bargained Agreement has been arrived at in full and final settlement of all the demands raised by and/or on behalf of the workmen and all other issues signing of this Agreement.


The Union C.B.A agrees to drop all demands/claims raised through its Charter of Demands mentioned herein above and all other points and issues which are not mentioned but covered in this Agreement.

It is agreed that neither the C.B.A Union nor any of the Workmen covered by this Agreement will collectively, concertedly or indirectly engage I or participate directly or indirectly in any strike, stoppage or other interference of work for any cause arising out of the terms and conditions herein mentioned or any other cause of any nature during the tenure of this Agreement. The Company, however, retains the right of discipline and termination of the services of any workman who violates this provision and to recover such damages as the Company may suffer by reason of a breach thereof.

Similarly, the Company agrees that during the terms of this Agreement, they will not declare any lockout of any of the workmen covered by this Agreement.

It is aimed at ensuring a just and mutually beneficial industrial peace fostering most harmonious and healthy relationship between the Company and it workmen and further strengthening the already existing good relations between the Company and the workmen.

It is agreed that clearly understood that this Agreement is confined to and covers only those workmen employed on regular basis by the Company against permanent positions.

It is further agreed that wherever any excerpts from Service Rules of the COMPANY have been incorporated in this Agreement, the same cannot in anyway be made the basis or subject matter of negotiations, as their incorporation is merely aimed at better and easy understanding only.

If the said Company charges its name or merges with any other Company or Companies or Organization, so that the Company is wholly or partly absorbed by another Company/ organization, the terms of this Agreement will remain valid and shall be enforceable in relation to the workmen to which this Agreement was applicable at the time the name changed or the merger took place for the remaining period of this Agreement.

If any time in future the said C.B.A Union is wholly or partly absorbed or replaced by another Organization or any Trade Union is declared to be Collective Bargaining Agent or if a new trade Union is formed or any other Trade Union comes into existence or the UNION is declared to be not the Collective Bargaining Agent or is dissolved or loses its representative charter of C.B.A, the finality, validity and sanctity of this Collectively Bargained Agreement shall neither be adversely affected nor the same be challenged directly or indirectly by any workmen singly or collectively and the workmen shall continue to be bound by the terms, agreed to in this Agreement and that this Agreement shall remain in force and be binding on the workmen as well as the Company for the period covered by the this Agreement.


i. The normal schedule of weekly hours of work, exclusive of lunch/rest interval for various categories of workmen will be as follows:

i. Drivers, Naib Qasids

Helpers & other etc.45 hours per week

ii. Clerical 40 hours per week

ii. All hours and days or work are subject to change at the sole discretion of Management, but the total weekly working hours for the respective class of workmen, as indicated above, will remain unchanged irrespective of the fact whether they work in Head Office or at Station Terminals and other installations. However, it would be open to the management to spread over the said assigned weekly hours to five/six days working at Station and Terminals to meet PARCO operational requirement.

iii. All workmen are required to enter work premises through designated entrances and to be at their work place ready for work exact scheduled times and days which are posted on Company Notice Board(s) and/or as may be notified to them by their respective Supervisors from time to time. Further, they will follow attendance recording procedures in force from time to time.

iv. No workman shall leave his assigned work or the assigned place of work during working hours without the permission of his immediate Supervisor.

v. Any workman in rotation shifts shall not leave his work place unless properly relieved or specifically permitted by the Supervisor concerned.

vi. The Company has the right to detain workmen for overtime after their duty scheduled hours. The workmen shall also report to work when called for duty whether scheduled or unscheduled, including recall from leave when so desired by the COMPANY under exigencies of work.

vii. Workmen entering or leaving the Company premises or godown may be liable to search at the discretion of the Management.


Sunday will be observed as “Weekly Holiday” with pay except in the case of shift workmen who will be allowed weekly holiday in accordance with their duty roster. For the time being Saturday will also be a “Closed day” at all the locations of the Company for such class of workmen as may be specified by the management from time to time but it will not be treated as a “Weekly Holiday” and the Company may at any time in its sole discretion, reschedule its timings to make Saturday a working day. However, such a change, if any when made, will not affect the present total weekly working hours for the class of workmen mentioned in Section 6.0 above.


If a workman is required to work on his schedule weekly holiday, viz. Sunday, he will be allowed a full compensatory day-off on one of the three days immediately before or after the normal scheduled weekly holiday in such a manner that it will not result in the workman working for more than 10 days consecutively. For this purpose, if Saturday and Sunday are both observed by the Company as holidays (Sunday as weekly holiday and Saturday as closed day, Saturday will be treated as compensatory day-off and no additional compensatory day-off will be allowed). However, if the workman is called upon to work on Saturday as well as on Sunday in this situation he would be entitled to compensatory day-off in lieu of Sunday on any day other than the Saturday worked, and shall receive only overtime for actual hours of work done on Saturday as per the rate of overtime specified in Section 14.0 below, keeping in view the principle as aforementioned. The same principle for availing day-off in lieu of weekly holiday, shall apply in case the weekly holiday of a workman falls on Saturday or any other day of the week.


a. The company will announce every year in the month of January the festival holidays to be observed during the calendar year. Holidays observed by the Federal Government will be taken as a guide in announcing the COMPANY Holidays.

b. Optional Holiday

In the beginning of every year, the C.B.A Union will suggest to the Company a list up to three optional holidays for different communities employed in the Company from the list of holidays published by the Federal Government to be availed by the workmen concerned with mutual agreement between the COMPANY and the C.B.A UNION.


The Compensatory Holidays in lieu of festival holidays falling on a scheduled weekly holiday has been withdrawn by the C.B.A. The festival of other announced holidays falling on a COMPANY closed day will not be compensated in any manner and no substitute or compensatory holiday will be allowed.


A workman required to work on Company declared festival holiday (other than a holiday falling on a scheduled weekly holiday or a company closed day) will be allowed, as soon as circumstances permit, a substitute holiday. Besides, he would be entitled to claim eight (8) hours overtime even if he may have performed duty for lesser hours.


A workman who receives notice to report after leaving the Company premises and who reports for work at other than his normal scheduled hours of work will receive overtime pay equivalent to not less than 4 hours of work.


In the event of a workman proceeding on official duty on Company/Public transport, except on posting or relief duty, he shall be entitled to claim overtime for the spent during travelling beyond normal working hours.


a. Overtime for less than ½ Hour

Extra work performed for a period of half an hour or less on normal working days will not be treated as overtime. Thereafter, overtime will be paid to the nearest quarter hour work done also counting the initial half an hour work.

This, however, will not apply in the case of workmen who are normally scheduled to work nine (9) hours a day, in whose case the extra work including the first half hour will be taken into account for purposes of computing overtime, calculated to the nearest quarter of the hour worked.

b. Rate Overtime

A workman when required to perform work beyond specified working hours as indicated in Section 6.0 above will be compensated for actual hours of extra work performed (excluding meal intervals). In case a workman is retained for work even during meal interval of half hour he would entitled to claim overtime in lieu thereof.

The work done over and above the specified working hours as stated above shall constitute overtime, which shall be payable at Double Rate. (Pay for the purpose of calculating overtime will mean Basic Pay + House Rent + Conveyance Allowance + Admissible Cost of Living Allowance + Meal Subsidy + Petrol Subsidy).


For the purpose of overtime calculation, total prescribed weekly hours will be multiplied by 52 (weeks) and then divided by 12 (months) to arrive at monthly working hours. For instance, if the total prescribed weekly working hours for a workman are 40 hours, his monthly working hours and hourly rate of pay will be:

a. 40 hours x 52/12=173.3 monthly hours

b. Basic Pay + Conveyance + HCLA +Meal Subsidy + Petrol Subsidy/173.3 =

Rate of one Hour


There shall be no pyramiding of overtime or other premium pay. If more than premium of or overtime rate applies in any case, only the single higher rate shall be paid.


When workmen are required to work overtime in excess of three (3) hours on any day and if the work schedule is such that they:

a. Report for duty before 7.00 a.m. or

b. Stay for work after 1.00 p.m. or

c. Stay for work after 8.00 p.m.

They will be reimbursed for overtime meal @ Rs. 90/- per meal.


Meal Subsidy will be Rs. 1600/- per month.


When overtime work is performed on a festival holiday or on a Weekly Holiday or on a Closed Day or on Emergency Call Out when a workman is normally off-day, he will be paid actual Yellow taxi fare each way towards conveyance allowance besides the usually monthly conveyance allowance and the actual overtime earned.


A. Basic Pay

(I) All workmen will be granted a minimum increase of 22% in their basic pay or Rs. 1,400/- p.m. whichever is higher, effective from August 1,2011.

B. Annual Increment

Minimum qualifying period annual increment will be six (6) months of continuous services as of June 30 each year. Increments would henceforth be on percentage basis and would be calculated @5%, 7.5% and 10% respectively of the basic pay against the existing performance ratings of A, BII and BI. This basis will remain fixed for all times and there would be no increase in these percentages in the future. Increments will not be automatic and will be subject to individual appraisals as per Company Policy. However, the fixed increments provided in the pay scales will continue to form the basis for fixation employee.


i. The word promotion implies rise to a higher salary position. Any Probationary service or period in a higher grade and/or position in not regarded as promotion.

ii. It is the Company’s policy to promote workmen to highest position in preference to direct recruitments from outside provided that the workmen suitable in all respects for promotion are available. The Company’s Management is the sole judge to such suitability.

iii. The following guidelines will apply in the case of promotion and the decisions of the Company in all cases shall be final.

a. Promotion will not be automatic and a workman must acquire necessary skill and experience as may be requisite of the Company and will be subject to seniority, suitability and availability of a vacancy.

b. A workman’s job performance, ability, skill, qualification, attendance record, physical fitness and related experience shall be the governing factors of promotion.

c. In case event of promotion between two or more workmen, if their qualifications, skills, abilities, related, experience, attendance records, physical fitness and job performances are relatively equal in the judgement of the COMPANY, then the length of service shall govern in the selection of workman for promotion.

d. Promoted workman may be placed on probation for a period of three (3) months. If on periodical review, his work is found unsatisfactory or in the opinion of the Company, the circumstances do not justify continuance of higher position, the workman will be reverted to his original position with consequent readjustment in his salary.

e. In the event of promotion where the salary of the workman is less than the minimum of the salary of the new higher rated position, he will be brought to such minimum of the salary group applicable to the new position, subject to 10% increase in workman’s current basic salary provided further that in case the revised salary does not fit in the salary scale steps, he will instead be given upward step.


House Rent Allowance for all workmen will be 3100/- or 60% of Basic Pay per month whichever is higher.


Conveyance Allowance for all workmen will be a flat rate of Rs. 1800/- per month of 100 liters of petrol per month against registered motorcycle.


Shift Allowance of Rs. 700/- per month shall be paid to such workmen as would be working in Rotating Shifts (excluding general duty shift) at all Stations/Terminals/installations of the COMPANY.


Utility Allowance will be paid @ Rs.1400/- per month to all workmen.


Children Education Allowance will be paid @ Rs. 2100/- per month to all workmen.


I. Quantum

i. Workmen who will have completed one year’s working service with the Company, will be entitled, as before to 30 days Annual Leave for rest and recreation for each completed year of service.

ii. New workman leaving Company service before completion of twelve month’s continuous employment will not be entitled to any leave.

iii. Workmen leaving COMPANY’s employment after one working year of service will be paid cash for leave accrued on prorate basis.

II. Calculation of Annual Leave

For administrative reasons, annual leave will be calculated on calendar year basis. In other words, leave quantum of a workman joining service during a calendar year will be calculated prorate until December 31, of that year and will accrue and be given to him subject to his completion of 12 months working service. Thereafter, effective following January, his leave will be calculated on a Calendar year basis but will accrue and be given to him on and subject to his completion of the next 12 months of working service.

Note: The above procedure does not in any way affect the leave quantum which is given in A above and which alone determines the amount of leave entitlement.

III. Division of Annual Leave

Workmen will be required to take the full entitlement of leave at one time unless because of the needs of the job or at the request of the workmen a division of leave is approved by the Company. However, in such cases the minimum leave division that will be approved is a period of 12 days, and only such division will be allowed in any one Calendar Year.

IV. Programming of Annual Leave

Annual Leave may be scheduled throughout the Calendar year subject to the following conditions:

I. Operating and administrative needs will be the primary and decisive factor in scheduling individual leave but preference of individual workmen will be given every possible consideration.

II. A period of at least six (6) months must elapse between two successive leaves.

V. Accumulation of Annual Leave

Annual Leave may be accumulated up to 90 days.

VI. Encashment of Annual Leave

Since Annual Leave is granted for rest and recreation, workmen will be encouraged to avail their earned leave. However, for any un-availed leave period, they may request encashment which will be granted in accordance with law.

VII. Exclusion of Holidays from Annual Leave

A weekly holiday a closed holiday or a festival holiday falling at the beginning or at the end of the annual leave period of both, will not be counted as part of leave. However, any intervening holiday falling during the leave period will be counted towards leave.

VIII. Sickness during period of Annual leave

Any period of sickness during the annual leave will not be treated as “absence” on account of sickness but will be counted towards the period of annual leave. In other words, there will be no leave within leave.


A. For such reasons as may be considered acceptable be the Company, workmen may be granted leave of absence to attend to personal affairs, for limited period of time not exceeding three days at any time. However, workmen during the probationary period will be entitled to Casual Leave on prorate basis.

B. Request for Casual Leave will be made in advance, but where circumstance for absence could not be foreseen the leave application form may be completed and submitted for approval immediately on resumption of duty.

C. The maximum Casual Leave entitlement will be 10 days per calendar year and it will be non-accumulative.

D. Casual Leave cannot be combined with leave of any other kind; however, a Sunday or a closed day or a holiday falling before or at the end of Casual Leave, or both, will not be counted towards Casual Leave. Should however, such a holiday fall in between the Casual Leave, it will become a part of Casual Leave.


A. The entitlement for Sick Leave will be restricted to 16 days per calendar year and shall be non-accumulative.

B. All absence on account of illness must be supported by the following evidence.

i. For one day’s absence, a Certificate will normally not be required. However, when requested by the Company, a Certificate will be furnished. In any case in Sick Leave is taken in conjunction with Annual Leave or Casual Leave, a Medical Certificate by a Registered Medical Practitioner will have to be produced.

ii. For sickness of more than one day but not more than three days, Sick Leave may be granted on the basis of a Registered Medical Practitioner’s Certificate other than that of the Company Doctor.

iii. Sick Leave for more than three days will be granted only on the basis of Certificate issued by the Company Doctor, or by a registered Medical Practitioner in case of outstation workmen where there is no Company Doctor.

C. Sick Leave will not be granted in the following circumstances:

i. Workmen’s negligence/failure to take proper care of himself or refusal to obtain or follow medical advice of a Physician.

ii. Chronic alcoholism, use of stimulants, drugs or Narcotics not prescribed or used other than in manner prescribed by the physician.

iii. Unlawful acts/conducts, attempts or social diseases.


The absence of a workman on account of hospitalization and best rest on discharge from hospital recommended by the surgeon/physician due to illness shall be treated as a case of special sick leave on the basis of the merit of each case. The COMPANY will however, be the sole judge to decide about the quantum of leave with pay. Special Sick Leave shall not be claimed by the workmen as a matter of right.


For any leave of absence due to work injuries sustained on the job, the COMPANY will be governed by LAW applicable to such situations.


Unveiled portion of Casual Leave and Sick Leave entitlement of workmen in any Calendar Year will be en-cashable.


The Leave Fare Assistance for all workmen will be a flat rate of Rs. 15,000/- per year subject to the following rules:

IX. The amount sanctioned is intended for travel and will not be payable if a workman request and is allowed encashment of his Annual Leave.

II. A minimum period of 12 days Annual Leave must be taken to be eligible to Leave Fare Assistance.

III. Leave Fare Assistance will be paid to eligible workers with the salary of the month of January every year.

IV. Leave Fare Assistance will be sanctioned in one lump sum. Application for drawing partial entitlement of the year concerned and to carry forward the balance will not be allowed.

V. Leave Fare Assistance will not be paid more than once in any once calendar year. However, in the event of separation from service, LFA entitlement will be counted on prorate basis and paid in cash along with any leave entitlement.


The company has a Provident Fund scheme which presently allows permanent workmen to subscribe to that Fund @ 8.33% of their basic pay plus indexation with a matching Company contribution.


A. Eligibility

I. All permanent workmen and their dependent will be entitled to the medical facilities of Allopathic/Homeopathy/Hikmat at their place of posting (Hikmat treatment would mean and include Hamdard Dawakhan, Tayyabi Dawakhana, Nazami Dawakhana and Haidri Dawakhana). As regards the workmen at outstations and terminals they should be entitled to treatment from Hamdard Dawakhan so far as Hikmat treatment is concerned. The Homeopathic treatment will be restricted to six Homeopathic Medical Practitioners (on PARCO’s panel) only.

(Dependents shall mean father, mother, one wife, unmarried sons up to age of 21 years and unmarried daughters provided such dependents do not have their own dependent income and therefore, are deemed to be dependent on the workman and must be residing with the workman concerned).

II. Medical assistance will also be provided at station and terminals for such serious cases of illness of dependents who, though are not residing with the workman at the place of posting, but are accorded prior approval for such medical assistance by the Management.

III. In case any workman posted at stations, terminals and other installations meets with an accident during the course of duty, he if required, shall be sent to hospitals on Company’s panel at the expense of the Company by such mode of journey as may be advised by the attending Doctor.

B. Limitation of Medical Coverage

I. In general, any workman or his dependents suffering from injury, ill-health or disease resulting from misconduct, misbehavior, drunkenness, negligence and excess or in consequence thereof will not be eligible for medical assistance.

II. The medical assistance does not include or provide for any hypnotics or any habit forming drugs, nor any tonics, pills etc. supplement to nourishment demanded by a workman or his dependent, unless in the opinion of the Company Doctor these are absolutely necessary for the period of illness.

III. The company will pay actual delivery charges to workman’s spouse (and in case the worker happens to be female, then her own delivery) up to a maximum of two deliveries in his/her entire service with the Company.

IV. The company shall not be liable to bear the expense for the provision of hearing aid, denture or spectacles to the workmen and their dependents.

V. All workmen and their dependents will be provided hospitalization and surgery in Company’s selected hospitals. The surgical treatment will consist of:

a. Surgeon’s fee

b. An aesthesia charges

c. Operation theatre charges

d. Cost of medicines or laboratory tests, X-rays which may be done during pre and post-operative period.

e. Cost of I.O.L

VI. The entitlement to hospitalization will be Private Room for worker and his eligible dependents.

VII. The existing hospitalization facilities shall continue. No recovery shall be made from the workmen for food where included within the prescribed normal room channel.

VIII. Medical Assistance will not be available to a workman if he is absent from this place of duty un-authorized and that absence is not subsequently regularized, unless he is away on Company’s business. In the event of workman falling sick on Company’s business, he will be paid actual expenses as a result of Doctor’s consultation and purchase of medicines provided that each cash memo is supported by Doctor’s prescription.

IX. Negligence on the part of the workman or his dependents in not taking preventive inoculation or vaccination as and when arranged by the Company shall disentitle him and /or his dependents for the continuance of free medical aid if the workman or his dependents suffer from any disease or ailment, attack of which would have been avoided had the aforesaid preventive measures been taken.

X. Visit of Doctor specialist to any workman’s residence will not be paid by the Company under any circumstances. If such visit is made, the Doctor’s fee will be paid by the workman but medicine prescribed may be provided at company’s expense subject to review by the Company Doctor. However, in cases of emergency the Company Doctor may visit the residence of the ailing workman at Company’s expense but the Company’s Doctor shall be the sole judge to determine the nature of such emergency cases.

XI. In case a workman or his eligible dependents are hospitalized, the COMPANY Doctor shall visit them in hospital at the discretion of the COMPANY in accordance with Policy instructions.

One hospital will be included in the panel list from Hyderabad city.

XII. Company’s Doctor will make reference to only such Specialist who are on Company’s approved panel. The list of the hospitals, doctors/specialists on the panel of the Company shall be displayed on the Notice Board by the Management for the general information of the workmen.

XIII. If the workman takes treatment from two Doctors at the same time and also takes medicines from both sources, the Company will not be responsible for any adverse effect to his health and this action on the part of the workman shall constitute misconduct and shall be liable to be proceeded against accordingly.

XIV. In case of total inability on the part of the workman and his dependents to be physically able to move to the designated hospital by any other mode of transportation except an ambulance, the Company Doctor. However, if ambulance cannot be arranged, then taxi fare will be paid, on Doctor’s approval.

XV. First-Aid Boxes shall be maintained at Stations and Terminals.

C. Up-Country Medical Allowance

Those workmen who are not keeping their families at the place of posting would be entitled to up-country Medical Allowance of Rs. 1000/- per month in respect of their dependents.

For the emergency medical treatment of workmen’s dependents residing up-country, Company would endeavor to select and designated one hospital in Islamabad/Rawalpindi. When this is arranged, the up-country medical allowance being given by the Company would be withdrawn from all employees.

D. Physical Examination and Medical Fitness

i. Any workman may at any time be required to submit himself to medical examination by the Company Doctor at Company’s expense. If on such examination a workman is found to be medically unfit or suffering from any infectious/contagious disease, he must undergo adequate treatment and will be allowed to resume his duty after producing a certified of fitness from the Company Doctor.

ii. If at any time during his service, a workman, in the opinion of the Company Doctor, is or becomes medically unfit by illness or due to ill health, he shall lose his lien on his job and the Company may discharge him from service on payment of Rs. 350000/- (Rs. Three lacs, fifty thousand only) or 46 months basic pay whichever is higher or as per law being the Compensation of total disablement

E. Post-Retirement Medical

Reimbursement of medical expenses for retired workmen and their spouses (one) @ Rs. 5000/- per year per person has been agreed.

In the event that either one exhausts his or her permissible amount of Rs. 5000/- per year, he or she can avail the allowance of his or her spouse, provided the total claim in any one year does not exceed the approved amount of Rs. 10,000/- and also cannot be carried forward to the next year.

The retired workers will not be required to visit CHQ in connection with submission or receiving his above mentioned medical expenses, however, he will mention his complete address and telephone number so that he can be contacted in case of any query. The amount of his medical expenses will be sent to his given address by cross cheque.

The retired worker every year before 30th June will send to Manager HRD a ‘Certificate of Existence’ s signed by a qualified registered MBBS Doctor.

In case, special medical treatment like hospitalization, operation, etc. is required by a retired employee, then the treatment would be provided on case to case basis on Company’s approved panel hospitals and such expenses shall be paid by the company. In normal/planned hospitalization, the worker will get reference letter from the Company Doctor. The retired work will also be issued a Medical Card for hospitalization purpose only which will be used in case of emergency only. The retired worker is also required to intimate the Company Doctor immediately by telephone prior to his/her hospitalization.


The company shall pay Motor Cycle Loan to the workmen in accordance with the Company Policy. The amount to be loaned shall be Rs. 40,000/- (Rs. Forty thousand only) in each case recoverable in 48 equal monthly instalments which would be subject to one percent Bank charges to be borne by the workman receiving the loan. However, only those workmen shall be covered under this Scheme who would have completed minimum five-years service in the Company as on 30th June each year. The loan will be allowed thrice in entire service. The loan application shall be submitted by the workmen within a period of one from each 30th June, the last date being 31st July.


The Company shall pay interest free Housing Assistance Loan to the workmen in accordance with the company policy. The amount of loan shall be sixty (60) months House Rent Allowance of an eligible workman, recoverable in sixty (60) instalments, which shall be subject to one percent Bank charges to be borne by the workman receiving the loan. Only those workmen shall be advanced the maximum limit of loan who would have completed ten (10) years of service in the Company as on 30th June each year. The grant of loan shall be subject to availability of fund and to be given in order of seniority in service of applicants. The loan application shall be submitted by the workmen within a period of one month from the 30th June, the latest date being 31st July. Those having completed five years service or more, but less than ten years shall be entitled to the Loan on prorate basis. However, documents of title, registration and other requirements will have to be submitted/completed.


In the event of workman’s death 100% of the loan amount Housing Assistance and Motorcycle loan or the balance remaining unpaid, shall stand waived off.


Pension scheme has been already instituted by the Company and EOBI pension will have no relation or effects on the Company pension. Company pension shall be paid to the workers separately.


In the event of workman’s death, the COMPANY shall be liable to the payment of Rs. 350,000/- (Rs. Three lacs fifty thousand only) against the compulsory insurance coverage or 36 months basic pay of the deceased workman, whichever is higher and similarly Rs. 350,000/- (Rs. Three lacs, fifty thousand only) or 46 moth basic pay whichever is higher shall be paid as disability compensation in the manner as provided in the COMPANY Policy subject to any law enacted by the authorities in the payment of disability or death which shall be binding on the Management. The claim referred in this connection shall be settled within a period of one month subject, however, to the condition that the legal formalities are fully satisfied by the beneficiary nominated next of kin/legal heirs of the deceased worker.


Upon the death of a workman or his wife, the Company will pay actual expenses of transporting the dead body and the air fare of one attendant (for one way only) by air to the nearest airport to the native place of the deceased. Any formalities required to be observed for the transportation of the dead body shall not be the responsibility of the company.

However, in the case of burial of the deceased workman or his wife at the place of posting or place of work the Company shall pay Rs. 20,000/- (Rs. Twenty thousand only) as funeral assistance but the said amount shall not be payable in case the dead body of the workman or his wife is to be transported the place of work of place of posting.


A. Workmen when travelling on Company business by train will be eligible to following class of travel:

Group I to IV: Lower A.C

Besides actual Tonga/Yellow Taxi fare from

residence to railway station and vice versa.

B. Daily Allowance

i. Workmen when travelling on Company duty will be paid a fixed amount of Daily Allowance as under:

Group I & II: Rs. 230/- per day.

Group III & IV: Rs. 245/- per day.

ii. Those workmen proceeding on travel status either from Karachi or from station as declared to be permanent place of posting by the Company for performing official duty at places other than station and terminals shall additionally be paid Rs. 5/- (Rs. Five only) per day over and above the applicable rate for Daily Allowance mentioned in (I) above.

iii. Halting Allowance payable to workmen on travel status at places where company has no overnight stay facility, shall be as follows:

Group I & II: Rs. 450/- per night

Group III & IV: Rs. 475/- per night

iv. No Daily Allowance will be payable if the workman goes out and return to this base the same day. He will, however, be reimbursed for the cost of meals @ Rs. 90/- (Rs. Ninety only) per meal.

v. Hardship Allowance will be payable at location designated by the Company as under:

Group I & II: Rs. 2150/- per month

Group III & IV: Rs. 2300/- per month

vi. Refinery Allowance will be payable to all workmen at MCR as follows:

Group I & II: Rs. 1100/- per month.

Group III &IV: Rs. 1300/- per month.

C.Workmen who are required to work on Pipeline patrolling duty and who travel up and down the line regularly by Company’s transport as part of their duties will only be eligible to daily allowance if they spend a night away from their Station.


A. Agreement Bonus

Bonus shall be paid @ Rs. 34% of Annual basic salary of each workman.

B. 10-C Bonus

This bonus shall be payable to all the workmen as per law.


In case any workman is required to work against any MPT position (Management Position) for any length of period which should not be less than one month shall be entitled to draw 15% of his basic pay per month as an officiating allowance.


Five workmen shall be deputed in each calendar year to participate in courses, seminars, workshops and symposiums arranged/held by different Government and other Institutions at the expenses of the Company.


In case a workman attains the following Higher Qualification:

I. Graduation

II. Post-Graduation

III. Diploma

During the course of his employment he would be entitled to two (2) increments of his pay scale as soon as he produces the Certificate/Degree to the satisfaction of the Management.


Discipline will be administered in accordance with the provision of Labour Laws and Company’s Discipline Policy.


i. In the event the workmen proceeding on Annual Leave while posted at Stations and Terminals, outside Karachi, they will be provided transport facility to the nearest Railway Station as well as in cases of emergency subject to operational requirement and availability of transport.

ii. An advance of one month Gross salary once in every year to each workman will be payable on the eve of Eid-ul-Fitr subject to deduction on 10 months monthly instalments.

iii. In case any workman wants to perform Hajj on his own expense the Company would grant him leave for the period to be counted from the date of his departure till the date of his arrival from Hajj as per Hajj schedule. Only one workman in a calendar year shall be entitled to this leave facility. However, in the event of more than one workman being desires to avail this facility only the senior in service will be allowed.

iv. In the event of death of workman, the Company will consider employment of the deceased’s dependents subject to the suitability and availability of a vacancy.

v. In case the worker retires or leaves service of the Company for reason other than misconduct after having rendered five (5) years minimum service, the Management shall consider the employment of his/her son/daughter for employment in the Company subject to suitability and availability of a vacancy.

vi. The Company will issue letters of awareness to such outside companies who offer articles on easy installments to workmen.

vii. While making fresh recruitment the dependents of the workmen shall be given preference subject to their satisfying all the prescribed requirements.

viii. Rs. 9000/- per month will be payable as rental charges for the office of the union for which necessary lease agreement will have to be provided by the union.

ix. Washing Allowance @ Rs. 600/- per month will be paid to eligible workers.

x. 2 (two) winter uniform and 1 (one) Jersey will be provided per year to all eligible workmen.

xi. Air Condition will be provided in recreation room and Mess at station & terminal and existing desert coolers shall remain in the rooms.

xii. Tea will be provided to all workmen twice a day.

xiii. Heavy duty Vehicle Allowance will be paid to those driving Company’s tankers and trucks @ Rs.5/- per actual driving hours as certified by the Transport section.

xiv. Special Skill Allowance @ 5% of current basic salary will be paid only in Group IV of Clerical & Labour category.

xv. Any general shift worker at TS-I, Keamari and WOTS-1 Post Qasim not being provided transport by the Company, shall be paid Rs. 850/- per month.

xvi. Heavy Equipment Handling allowance will be paid Rs. 250/- per month.

xvii. Motor Cycle maintenance allowance will be paid @ Rs. 600/- per month.

xviii. Iftar & Sehri shall be provided to the workers who will be on duty at the relevant times.

xix. In case of Challan of Driver during the duty shall be paid by the company.

xx. Financial Assistance of Rs. 40,000/- on account of daughter’s marriage of a workman will be allowed for only one daughter.

xxi. Alcatel phone will be provided to the workman residing at MCR Housing Colony subject to availability of the cable.


In order to ensure that all the terms and conditions/provision contained in this Agreement are complied with in letter and spirit, a responsible officer from HRD Department shall occasionally visit all station and terminals in this connection and would also attend to the grievances of the workers relating thereto or otherwise. He would submit his report to the Managing Director and the decision made by the Managing Director shall be binding on all concerned. This would be implemented from the date of signing of the Agreement.


No failure on the part of the Company to exercise any right and no delay in exercising any right shall operate as a waiver thereof, nor shall any single or partial exercise by the Company or any right preclude any other or further exercise of such right or any other right.


The permanent workmen on the payroll of the Company as on August 1, 2011 as well as those who have retired between August 1, 2011 and signing date of this Agreement, shall be entitled to additional payments arising from revision of benefits incorporated in the Agreement, and the payment of arrears in terms of money shall be made as expeditiously as possible within reasonable period of time.

i. In the event of any indexation of wages and any other allowance including that of cost of living allowance that may be introduced by the Federal/Provincial Government in future, by way of any legislation/ordinance/directive or order etc. or in any other manner whatsoever, the Company shall not be liable for any additional financial burden and the monetary benefits allowed under this Agreement shall be set off/adjusted keeping in view the letter and spirit of the relevant enactment etc.

ii. The increase in wages and allowance and other benefits etc. allowed by the company make an adequate provision to meet the inflationary tendencies due to rise in cost of living.

iii. All the demands contained in this Agreement shall take effect from 1st August, 2011 those against which it has been specifically mentioned, they would be implemented from the date of signing of this Agreement.


The benefits covered under this Agreement shall not be compound with (in addition to) similar ones stipulated by any law or which may be introduced by the Government through legislation or otherwise during the course of this Agreement. Should however, such an enforcement be implemented, the COMPNAY’s additional obligation, if any, will be to remove the difference between the benefits to be provided by legislation or Government action and the benefits provided under this Agreement in favour of the workmen. In other word no legislation or enforced benefit will be in addition to the similar ones provided or covered by this Agreement. The benefits agreed under this Agreement shall not be quoted as a precedent for former negotiations.


This Agreement will become effective from August 1, 2011 and will remain in force and in effect until July 31, 2013 and thereafter, indefinitely unless terminated by either party upon giving to the other party two months prior notice in writing. All the existing terms and conditions of service in practices, agreed, shall be enforced except to the extent modified by this Agreement.


If any of the provisions of this Agreement calls for any clarification or interpretation, the decision made by the Management in this behalf shall be final and binding. However, any dispute arising out of this Agreement shall be governed under the applicable law.


The parties hereto agree that if any part of this Agreement is or becomes contrary to any law, such a part will again, by an agreement, be amended to comply with the applicable laws without in any way affecting any other part of the Agreement.


It is mutually agreed by both the parties that copy of the Agreement shall be filed in the National Industrial Relations Commission, Islamabad.


Collective Agreement between Pak-Arab Refinery Ltd and Parco Workers’ Union - 2012

Start date: → 2011-08-01
End date: → 2013-07-31
Ratified by: → Other
Ratified on: → 2012-04-18
Name industry: → Extraction, mining, quarrying
Name industry: → Extraction of crude petroleum
Public/private sector: → In the public sector
Concluded by:
Name company: →  Pak-Arab Refinery Ltd
Names trade unions: → 


Training programmes: → Yes
Apprenticeships: → No
Employer contributes to training fund for employees: → Yes


Maximum days for paid sickness leave: → 16 days
Provisions regarding return to work after long-term illness, e.g. cancer treatment: → Yes
Paid menstruation leave: → No
Pay in case of disability due to work accident: → No


Job security after maternity leave: → 
Prohibition of discrimination related to maternity: → 
Prohibition to oblige pregnant or breastfeeding workers to perform dangerous or unhealthy work: → 
Workplace risk assessment on the safety and health of pregnant or nursing women: → 
Availability of alternatives to dangerous or unhealthy work for pregnant or breastfeeding workers: → 
Time off for prenatal medical examinations: → 
Prohibition of screening for pregnancy before regularising non-standard workers: → 
Prohibition of screening for pregnancy before promotion: → 
Facilities for nursing mothers: → No
Employer-provided childcare facilities: → No
Employer-subsidized childcare facilities: → No
Monetary tuition/subsidy for children's education: → Yes
Paid leave per year in case of caring for relatives: → 10 days
Leave duration in days in case of death of a relative: → 10 days


Working hours per week: → 45.0
Paid annual leave: → 30.0 days
Paid annual leave: →  weeks
Provisions on flexible work arrangements: → No


Wages determined by means of pay scales: → No
Provision that minimum wages set by the government have to be respected: → No
Agreed lowest wage per: → Months
Lowest wage: → PKR 1400.0
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → 5.0 %

Once only extra payment

Once only extra payment: → 34 %
Once only extra payment due to company performance: → No

Payment for standby work

Payment for standby work Sundays only: → No
Payment for standby work all days per week: → Yes

Extra payment for annual leave

Extra payment for annual leave: → PKR 

Premium for overtime work

Allowance for commuting work

Allowance for commuting work: → PKR 1800.0 per month

Meal vouchers

Meal allowances provided: → Yes
→  per meal
Free legal assistance: → No