MEMORANDUM OF SETTLEMENT BETWEEN ALLIED BANK LIMITED AND ALLIED BANK WORKER’S FEDERATION OF PAKISTAN - 2008

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Name of the Parties

1. Allied Bank Limited, having its Central Office at main Clifton Road, Bath Island, Clifton, Karachi;

2. Allied Bank Worker’s Federation of Pakistan, a registered Federation of Trade Unions of Workmen of Allied Bank Limited, (having been certified as Collective Bargaining Agent) by the Registrar of Industry-wise Trade Unions (RITU), National Industrial Relations Commission (NIRC) vide Certificate dated July 06, 2005, hereinafter referred to as the CBA which expression shall include its successors.

Representing Employer:

1. Mr. Mohammad Aftab Manzoor, and;

2. Mr. Shafique Ahmed Uqaili;

Representing Workmen:

1. Mr. Sheikh Farhad Shah.

2. Mr. Muhammad Akram Khan;

3. Mr. Jahan Zeb;

4. Mr. Muhammad Ajmal Khan;

5. Mr. Syed Shahid H. Naqvi;

6. Mr. Sadiq Deraishak;

7. Mr. S. Najeebullah Shah Rashi, and;

8. Mr. Abu Zar Bukhari.

Short Recital of the Case:

Whereas a Memorandum of Settlement was signed between the parties on August 31, 2001 which memorandum of settlement enured till June 30, 2004;

And whereas, the Bank challenged the legal ability of the Federation for certification as CBA and Bank’s Appeal No. 12(24)/2005 was dismissed by the full Bench of NIRC vide Order dated November 30, 2006;

And whereas the Bank filed a Writ Petition No. 68 of 2007 before the Rawalpindi Bench of the Lahore High Court. The Writ Petition is now pending before the Islamabad High Court;

And whereas The CBA on May 30, 2006 submitted a Notice u/s 25(1) of the Industrial Relations Ordinance, 2002, enclosing therewith, a Charter of Demands which notice was followed by a Notice of Conciliation dated August 7, 2006 u/s 25(3) of the Industrial Relations Ordinance, 2002:

And whereas the Conciliator issued a letter dated October 03, 2006 and thereafter the CBA filed application for adjudication and determination of the industrial dispute which is pending as Case No. 9(03).2006 before a Bench of NIRC at Islamabad;

And whereas the parties recognize that there is a need for resolving differences through dialogue and understanding;

And whereas the CBA pleaded and the management took into consideration the rise in the cost of living during the preceding years, as well as the anticipated rise in the cost of living for the forthcoming 3 years and in order to provide relief against such rises, the following settlement has been reached in respect of all matters relating to the terms and conditions of employment.

I. EFFECTIVENESS OF MEMORANDUM OF SETTLEMENT:

a.This Settlement is being made expressly subject to the conditions precedent mentioned in items (a) to (d), of Clause lll (Implementation) and as soon as all of these conditions precedents are fulfilled, this Settlement shall be deemed to have become effective and shall accordingly come into operation on August 01, 2008 and shall be binding and operative for a period of three (3) years commencing from August 01, 2008 and terminating on July 31, 2011;

II. TERMS OF MEMORANDUM OF SETTLEMENT:

1) INCREASE IN SALARY:

i) One time increase in salary:

In view of the cost of living in the preceding years as well as anticipated rise in the cost of living during the tenure of this Memorandum of Settlement, it has been agreed that the gross salary of all permanent and regular clerical and non-clerical employees shall be increased by 15% with effect from August 01, 2008. This increase is in addition to the increase allowed vide Circular No. P/INF-2007/164 dated August 10, 2007 and Circular No. P/INF-2008/109 dated April 25, 2008. The terms and conditions of employment, as per Circular No. P/INF-2007/164 dated August 10. 2007, are hereby agreed to form a part of this settlement and shall have effect accordingly;

ii) Annual increase in salary (i.e., once in a calendar year):

In the year 2009 and thereafter, on annualized basis, a minimum of 5% increase in gross salary, shall be allowed to all permanent and regular clerical and non-clerical employees, and;

iii) Increase in salary on promotion:

It is agreed that an increase in gross salary equivalent to 10% of the minimum of the pay range in which the employee is being promoted, shall be allowed to all permanent and regular clerical and non-clerical employees, if they are promoted to the next grade. In such a case, the employee so promoted shall not get the increases as mentioned in Clause 1 (i) (one time increase in salary). In case if the employee so promoted is entitled to receive annualized increase in pursuance of Clause 1 (ii), only one of either the increase of salary on promotion in pursuance of this Sub Clause (iii) or the payment in Clause 1 (ii), whichever is greater, shall be paid.

The criteria for being eligible for the salary increases, as allowed in Clause 1, above, shall be as follows:

A) Shall only be admissible to all such permanent and regular clerical and non-clerical employees, who have been in service of the Bank, for atleast six months during the previous calendar year of the effective date of the increase (i.e., if the effective date of respective increase is in the year 2008, then the employee should have been in service for more than 6 months, during the calendar year 2007);

B) Shall not be admissible for all such clerical and non clericals employees who have been absent for more than 90 days for any reason, during the previous calendar year of the effective date of the increase (year prior to the effective date of the respective increase in salary);

C) Shall not be admissible for all such clerical and non clericals employees who are awarded punishment during the year (excluding warnings and reprimands) or whose administrative action cases are pending on the effective date of the respective increase;

D) Shall not be admissible for all such clerical and non clericals employees who are availing LPR or who havae tendered resignations or opted for pre mature retirement from the Bank’s service, on or before the payment date of respective increase;

E) All such permanent and regular clerical and non-clerical employees, whose gross salaries are already at the maximum of their pay ranges (or whose gross salaries are already at the maximum of their pay ranges (or whose gross salaries cross the maximum of their pay ranges, due to this rise in salary), shall be paid an Out of Range Allowance (ORA) instead of an increase in their basic salaries.

2) INCENTIVE ON ACQUIRING HIGHER EDUCATION:

The incentives for acquiring higher education has been agreed to be revised as follows:

In case if a permanent and regular clerical and non-clerical employee improves his/her educational qualification by acquiring a bachelors degree or a masters degree from HEC recognized university/educational institution, an increase of 15% in gross salary shall be allowed to those who secure first division and 10% in gross salary shall be allowed to those who secure below first division. This incentive on acquiring higher education shall only applicable to all such permanent and regular clerical and non-clerical employees who pass examinations and obtain the qualifying results for bachelors or masters degrees after the date of signing of this Memorandum of Settlement.

3) DAILY ALLOWANCE:

(i) It has been agreed to allow half Daily Allowance (DA) to drivers on official tour lasts for more than eight (8) hours and continues beyond 9pm, subject to the condition that the distance of the tour destination is more than 70 kilometers far from the place of duty;

(ii) It has been further agreed that if a permanent and regular clerical and non-clerical employee is posted on relieving duty, he/she shall also be allowed half day daily allowance if the tour lasts for more than eight (8) hours and continues beyond 9pm, subject to the condition that the distance of the tour destination is more than 70 kilometers far from the place of his/her duty. However, this allowance would not be paid for any relieving duty exceeding two days.

The payments allowed as per Clause 3, above, shall be subject to the satisfaction of all the other relevant rules and conditions, as per the Service Rules of the Bank.

4) EDUCATION ALLOWANCE:

It has been agreed to revise the education allowance allowable to all permanent and regular clerical and non-clerical employees for the education of their children, subject to a maximum of Rs. 1,400 per month. This revision in Education Allowance supersedes all previous entitlements of education allowances for children:

i) Upto matriculation: Rs. 400 per child per month;

ii) For college/technical education: Rs. 500 per child per month;

iii) For professional education from HEC recognized university/educational Institution or from a professional body: Rs. 800 per child per month;

iv) Cash Prize for Hifz e Quran: Rs. 15,000 one time.

Subject to verification by the Bank and will Only be allowed to all those children who Hifz the Holy Quran after the date of Signing this Memorandum of Settlement and submit An authenticated certificate.

5) IN-SERVICE MEDICAL FACILITY:

In addition to in-service medical facility being already provided including the in-service facility as per Para 6 of the Memorandum of Settlement dated August 31, 2001, the following in-service medical facility shall also be entitled to all permanent and regular clerical and non-clerical employees;

a.Parents of all permanent and regular clerical and non-clerical employees, who are wholly dependent upon such an employee shall also be provided hospitalization medical facilities on the same terms and conditions as are applicable to spouse and dependent children. However, the payment will be limited to the amount of the employee’s share calculated by dividing the hospitalization medical expenses as allowed under the terms and conditions of the Bank, divided by the number of brothers of the said employee (including the employee). Furthermore, the said amount shall only be reimbursed for the parents of the said clerical and non-clerical employee if the parents (s) are dependent on the employee and do not have a separate source of income, for which an undertaking will be provided by the said employee at the time of claiming of reimbursement.

b. Maternity charges:

i) For delivery at home, maternity charges of Rs. 5,000 per delivery shall be entitled to all permanent and regular clerical and non-clerical employees;

ii) For delivery at a hospital or at a maternity home, maternity charges of Rs. 10,000 per delivery shall be entitled to all permanent and regular clerical and non-clerical employees, subject to deduction of hospitalization charges paid for the same.

The Maternity charges, as allowed in 5 (b) (i) and 5 (b) (ii) shall only be applicable to all deliveries which take place after the date of the signing of this Memorandum of Settlement and will be restricted to three (3) deliveries, including deliveries that have taken place before the date of this settlement. Therefore no maternity charges for any child beyond three will be paid by the Bank.

6) ALLOWANCES FOR GUARDS:

It has been agreed to revise the allowances for all permanent and regular guards. The new structure for the guards shall be as follows, and there shall not be any other allowance for guards, except for the ones mentioned below. This revision in the allowances for guards supersedes all previous entitlements of allowances:

a) Gun Allowance:

i) Branch having two or more guards: Rs. 200 per guard per month;

ii) Branch having only one guard: Rs. 400 per guard per month;

b) Duty during weekly or gazette holidays:

i) In case of one guard on duty: Rs. 170 per day;

ii) In case of two or more guards on duty: Rs. 100 per day;

c) Saturday allowance:

It is also agreed that the guards performing day duty on Saturdays, shall be paid an additional allowance of Rs. 100 for every Saturday on day duty.

7) SPECIAL DUTY ALLOWANCE:

It has been decided to pay Special Duty Allowance @ Rs. 300 per month to the following categories of all permanent and regular clerical and non-clerical employees;

a. Duplicating Machine Operator

b. Photocopiers Operator

c. Telex Machine Operator

d. Telephone Operator

e. Machine Operator

f. A/c Machine Operator

g. Bill Machine Operator

h. Carpenter

i. Masson

j. Lift Operator

8) CLOSING ALLOWANCE:

It has been agreed to increase the Closing Allowance for all permanent and regular clerical and non-clerical employees from Rs. 250 to Rs. 500, twice a year (June 30 and December 31).

9) LEAVES

a) Privilege Leave Encashment:

It has been agreed to allow a non-time (only) privilege leave encashment of maximum of 30 days on the basis of salary as on June 30, 2007, to all permanent and regular clerical and non-clerical employees, subject however to the proviso that the remaining accumulataed privilege leave balance of the employee, after this leave balance of the employee, after this leave encashment, is not less than 150 days, as on June 30, 2007;

b) Hajj leave:

In addition to any and all other leave entitlements, a permanent and regular clerical and non-clerical employee shall be allowed Hajj leave for actual number of days (inclusive of date of departure from and arrival in Pakistan) for performing Hajj, and;

c. Provisions for leave and leave encashment as already modified:

It has been agreed that all the other provisions for leave and leave encashment, as modified by Circular No. P/INF-2007/164 dated August 10, 2007, shall remain unchanged and in force.

10) HOUSE BUILDING FINANCE

It has been agreed to fix the maximum House Building Finance entitlements as follows. For all the permanent and regular clerical and non-clerical employees, subject to all the existing terms and conditions, already in practice:

a) House building finance for Scales 1 to 3 : Rs. 800,000

b) House building finance for scales 4 to 7 : Rs. 1,200,000

11) PERSONAL LOAN – 5 BASIC SALARIES:

It has been agreed to increase the repayment term of Personal Loan (5 Basic Salaries) for all the permanent and regular clerical and non-clerical employees, from 3 years to a maximum of 4 years, subject to all the existing terms and conditions, already in practice.

12) BENEVOLENT FUND:

It has been agreed that the agreed that the Benevolent Fund shall cease to exist and all the in-service employees will be given back, all the amounts contributed by them, alongwith the amounts contributed by the Bank, in their names. For the employees who have already retired from service on or before the date of signing of this Memorandum of Settlement, will be given one –time lump sum amount in lieu of Benevolent Fund Grant, at Net Present Value calculated by discounting @ 12% per annum over the balance period for entitlement of Benevolent Fund Grant out of the total period of ten years.

13) BONUS:

It has been agreed that if the Bank makes profit during a financial year, as per the Profit & Loss Statement of that relevant year, than in that case, three basic salaries shall be paid to all the permanent and regular clerical and non-clerical employees, as bonus. The Payment shall take place as follows:

a. One month’s basic salary by the first day of the month in which Eid-ul-Fitr occurs;

b. One month’s basic salary by the first day of the month in which Eid-ul-Azha occurs, and;

c. One month’s basic salary at the time of payment of performance bonus.

The above payments include bonus under Standing Order 10-C of the Industrial and Commercial Employment (Standing Orders) Ordinance, 1968.

14) HAJJ:

It has been agreed that six persons amongst the permanent and regular clerical and non-clerical employees, shall be sent for Hajj every year, at the expense of the Bank. This provision shall become applicable with Hajj during the year 2009. The Bank shall bear full payment to the Federal Government for Hajj application under the normal scheme. The employees and regular clerical and non-clerical employees shall be eligible to participate in the Draw who have been in the regular service of the Bank for atleast 5 years from the date of the Draw and who have not performed Hajj before.

15) BURIAL EXPENSES:

It has been agreed to revise the payment of Burial Expenses from Rs. 10,000 to Rs, 20,000 from the Bank’s resources, for the burial of the permanent and regular clerical and non-clerical employees, who pass away during the service or during the LPR. This revision in Burial expenses supersedes all previous entitlements of Burial expenses.

16) UNIFORMS:

It has been agreed to revise the facilities for uniforms, for all permanent and regular non clerical employees, as follows. This revision in the facilities for uniforms, supersedes all previous entitlements in lieu of uniforms:

a. Suits:6 pairs in a year-pant and shirt (3 pairs in summer and 3 pairs in winter)

b. Stitching charges:Rs. 500 per suit

c. Shoes:2 pairs in a year @ Rs. 700 per pair (1 pair in summer and 1 pair in winter)

d. Socks: 4 pairs in a year @ Rs. 60 per pair ( 2 pairs in summer and 2 pairs in winter)

e. Caps: 2 in a year @ Rs. 250 per cap (for guards only) (1 cap in summer and 1 cap in winter)

f. Woolen Jerseys:Two every year in winter

In addition to the above, an additional amount of Rs. 1,000 will be paid to the Scooter riders as cost of Helmets once in two years.

III. IMPLEMENTATION:

It has been agreed that this Settlement shall be implemented and shall become effective only and only if and when the following steps are taken and completed:

a. The CBA unconditionally withdraws Appeal No. 12 (30) 2008, Case No. 4A (38)/2008 and case No. 7(39)/2008 pending before Benches of NIRC at Islamabad and Regular First Appeal No. 141 pending before Rawalpindi Bench of Lahore High Court at Rawalpindi;

b. A joint application is made to the Bench dealing with Case No. 9(03)/2006 pending before Single Bench of NIRC at Islamabad with a prayer of disposal of the case in terms of the settlement and the case is disposed off accordingly.

c. A joint application is made in Writ Petition No. 68/2007 praying therein that Para II on Page 15 of the Judgment be deleted and the Writ Petition be disposed of on the above terms and writ petition is disposed off accordingly. Till such disposal, nothing contained in this settlement shall derogate from the stand taken by the Bank.

d. All cases filed against the Bank, which the CBA, its constituent Unions or any of the members of the constituent Unions have filed, initiated or participated in, are withdrawn and a documentary court evidence of these withdrawals, is provided to the Bank.

IV. GENERAL:

a. Subject however to Clause I (Effectiveness of Memorandum of Settlement) above, this Settlement shall be deemed to have come into operation on August 01, 2008 and shall be binding and operative for a period of thee (3) years commencing from August 01, 2008 and terminating on July 31, 2011. However, this Settlement is being made expressly subject to the conditions precedent mentioned in items a told, of Clause III (Implementation), above, and as soon as these conditions precedents are fulfilled, without which, this Settlement shall not be deemed to have become effective;

b. The CBA agrees and accepts that the above benefits and increases have been given and agreed to, by the Bank, keeping in view the rise in cost of living and as a relief due to rise in the cost of living in the past, as well as for the next three (3) years. Any benefits, increase or allowance that is given during the operative period of this agreement by the federal or provincial government under any law, rules or notification, are hereby deemed to have been granted in terms of the provisions of this settlement and shall not therefore be separately payable;

c. The CBA agrees that this Memorandum and Settlement is in full and final settlement in respect of all terms and conditions of employment as well as other disputes and demands;

d. The CBA further agrees that during the currency of this settlement in consideration of benefits and increases given as per this agreement, the CBA shall not raise or pursue directly or indirectly any further or fresh demands whatsoever having any financial or non-financial implication on the Bank;

e. The CBA agrees and concedes that it is the sole and exclusive right of the management to manage the affairs of the Bank and undertakes that there shall be no interference by the CBA, or by any of its constituents or workmen in the management of the affairs of the Bank including, but not limited to matters relating to promotions, transfers, leave, administration, etc.

f. The CBA undertakes that it and its constituent members shall fully cooperate with the management in maintain industrial peace, in increasing productivity and in fostering discipline.

Signed at Islamabad on 8th day of September 2008.

*****

Memorandum of Settlement between Allied Bank Limited and Allied Bank Worker’s Federation of Pakistan - 2008

Start date: → 2008-08-01
End date: → 2011-07-31
Ratified by: → Other
Ratified on: → 2008-09-08
Name industry: → Financial services, banking, insurance
Name industry: → Banking
Public/private sector: → In the private sector
Concluded by:
Name company: →  Allied Bank Limited
Names trade unions: → 

TRAINING

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

WORK AND FAMILY ARRANGEMENTS

Maternity paid leave: → -9 weeks
Job security after maternity leave: → No
Prohibition of discrimination related to maternity: → No
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

WAGES

Wages determined by means of pay scales: → No
Adjustment for rising costs of living: → 

Wage increase

Wage increase: → 5.0 %

Once only extra payment

Once only extra payment due to company performance: → No

Extra payment for annual leave

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → No
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