MEMORANDUM OF SETTLEMENT BETWEEN ALLIED BANK LIMITED AND ALLIED BANK WORKER’S FEDERATION OF PAKISTAN - 2011

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Under and read with section 2 (xxix) & & 35(2) of Industrial Relation Ordinance, 2011

from 1st September, 2011 to 31st August, 2013

Name of Parties

1. Allied Bank Limited, having its Registered Office at 8, Kashmir/Egerton Road, Lahore (hereinafter referred to as the “Bank”, which expression shall include its successors-in-interest, administrators and assigns)

AND

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 Union (RITU), National Industrial Relations Commission (NIRC) vide certificate dated July 06, 2005, (hereinafter referred to as the C.B.A which expression shall include its successors, assigns and all permanent workmen in actual employment or to be employed by the Bank).

Representing Employer:

1. Mr. Khalid A. Sherwani

2. Mr. Shafique Ahmed Uqaili

3. Mr. Atif Izhar Syed

Representing Workmen:

1. Mr. Muhammad Akram Khan

2. Mr. Muhammad Ajmal Khan

3. Mr. Abu Zar Bukhari

4. Mr. S. Najeebullah Shah Rashdi

5. Mr. Sadiq Deraishak

6. Mr. Muhammad Ayub Khan

7. Mr. Jehanzeb Khan

Short Recital of the Case:

Whereas, the RITU (NIRC) certified the Federation as C.B.A vide Order dated July 06, 2005 and continues to act u/s. 21 of IRO 2011;

AND Whereas, a Memorandum of Settlement was signed between the parties on September 08, 2008 which was valid till July 31, 2011;

AND Whereas, the C.B.A had served a fresh Charter of Demands on 12th July, 2011 and a number of meetings between the parties were held for bilateral negotiations on the said Charter of Demand.

AND Whereas, the C.B.A pleaded inflation and rise in the cost of living as justification for their Charter of Demands and the Bank 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 two (2) 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.

EFFECTIVENESS OF MEMORANDUM OF SETTLEMENT:

It is hereby agreed that the terms of this Memorandum of Settlement shall be effective, binding and operative for two (2) years, commencing from 1st September, 2011 and terminating on 31st August, 2013.

TERMS MEMORANDUM OF SETTLEMENT:

1. INCREASE IN SALARY

a) One-time increase in salary

In view of inflation and rise in the cost of living during the current year as well as anticipated rise in 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 workers of the Bank shall be increased by 30%. However, out of this total of 30% increase, 20% increase will be granted from the date of signing of this Memorandum of Settlement and the remaining 10% will be granted at the time of Performance Appraisals, in the year 2012. However, there will be no other merit salary increment on top of this fixed annual raise of 10% during a calendar year.

b) Annual increase at the time of Performance Appraisal in the year 2013

10% increase in gross salary, shall be allowed to all permanent and regular clerical and non-clerical workers at the time of annual performance appraisal for the year 2013. However, there will be no other merit salary increment on top of this fixed annual raise of 10% during a calendar year.

All the above increases as allowed in Clause 1 shall be subject to the following conditions:

A) The salary increases mentioned in Clause 1(a) and Clause 1(b), shall only be admissible to all such permanent and regular clerical and non-clerical workers, who have been in service of the Bank, for at least six months during the last calendar year;

B) All such clerical and non-clerical workers who have been absent for more than 90 days for any reason, during the previous calendar year (year prior to the date of the effective date of increase in salary), shall not be entitled to receive these increases;

C) All such clerical and non-clerical workers who have been awarded punishments during the year (excluding warnings and reprimands) or whose administrative action cases are pending shall not be entitled for these salary increases. However, if the punishments are waived, set aside or proceedings are dropped; the benefits would be extended to such workers.

D) All such clerical and non-clerical workers who are availing LPR or who have tendered resignations or opted for pre mature retirement from Bank’s service shall not be entitled for these salary increases;

2. EDUCATION ALLOWANCE

It has been agreed to revise the education allowance to all permanent and regular clerical and non-clerical workers for the education of their children, up to a maximum amount Rs. 2800/- per month per clerical/non-clerical employee, subject to authentication and submission of original fee slips:

i Up to matriculation Rs. 1,200 per child per month
ii For college/technical education Rs. 1,500 per child per month
iii For professional education from HEC recognized university/educational Rs. 2,000 per child per month
iv Cash prize for Hifz e Quran Rs. 50,000 one time.

All the payments as per sub clauses 2(i), 2(ii), above are subject to submission of free receipt and verification by the Bank and will only be allowed after the date of signing of this Agreement. Moreover, the payments as per the sub clause 2 (iv), above, shall only be applicable to those children of workers, who Hifz e Quran, after date of signing of this Memorandum of Settlement.

3. CLOSING ALLOWANCE

It has been agreed to increase the Closing Allowance for all permanent and regular clerical and non-clerical workers from Rs. 500 to Rs. 1,000 twice a year (June 30 and December 31).

4. REVISION IN PAY RANGES

The Bank hereby agrees for revising the pay ranges of Clerical and Non-Clerical workers, in the upper limits, by 30% before 1st April, 2012.

5. 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 workers, subject to all the existing terms and conditions, already in practices:

a House Building Finance for Scales 1 to 3: Rs. 1,100,000
b House Building Finance for Scales 4 to 7: Rs. 1,600,000

Moreover, clerical and non-clerical workers shall be eligible for applying for second house building finance, only on account of transfer to another city, provided their house building finance limits have cushion for the second time house building finance. All other terms and conditions shall remain the same.

6. MOTOR-CYCLE FINANCE

It has been agreed to revise expiry period of 5 years applicable from the date of last motor-cycle finance disbursement for all the permanent and regular clerical and non-clerical workers. The expiry period has been reduced from 5 years to 3 years and all other terms and conditions shall remain the same.

7. HAJJ

It has been agreed that ten (10) persons amongst the permanent and regular clerical and non-clerical workers (once during the entire service), shall be sent for Hajj every year, at the expense of the Bank. The management shall bear full payment to the Federal Government for Hajj application under the normal Government scheme.

8. CAR LEASING

The maximum car leasing entitlement have been increased as follows, for all the permanent and regular clerical workers.

Clerical:Rs. 850,000/-

All the existing terms and conditions of Car Leasing shall remain the same.

9. BURIAL EXPENSES

It has been agreed to revise the payment of Burial Expenses from Rs. 20,000 to Rs. 40,000 for the burial of the permanent and regular clerical and non-clerical workers, their dependent family members, who pass away during the service or during the LPR of that employee.

10. MARRIAGE GRANT

It has been agreed to allow Marriage Grant to permanent and regular clerical and non-clerical workers, from staff welfare fund, as follows:

i For Self (in case of 1st Marriage only) Rs. 200,000/-
ii For any two real daughters

Rs. 200,000/- (for each of the two real daughters, in case of 1st marriage only)

11. GROUP LIFE INSURANCE

It has been agreed that Group Life Insurance coverage for permanent and regular clerical and non-clerical workers, stand revised, effective from next renewal of Group Life Insurance Policy arranged by the Bank.

Effective from the next renewal, the revised Group Life Insurance shall be as follows:

i Clerical Workers: Rs. 450,000/-
ii Non-Clerical Workers Rs. 400,000/-

12. BONUS

It has been agreed that if the Bank make profit, then in that case, two basic salaries shall be paid to all the permanent and regular clerical and non-clerical workers, as bonus, on Eid-ul-Fitar and Eid-ul-Azha, respectively. Whereas, one gross salary shall be paid to all the permanent and regular clerical and non-clerical workers, as bonus, at the time of annual performance appraisal:

a. One month’s basic salary by the first day of the month in which Eid-ul-Fitar 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 gross salary at the time of payment of performance bonus to the management grades workers.

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

13. PROMOTIONS

All Clerical and Non-Clerical Workers shall be eligible for promotion in the Management Grade as Teller ‘MG12’, provided they improve their qualification (at least graduation with 2nd division) before reaching the age of 35 years and qualifying the interview for the said promotion.

14. DAILY ALLOWANCE/OVER TIME

The daily allowance (DA) for clerical and non-clerical workers have been revised from Rs. 250 per day to Rs. 500 per day subject to all other applicable terms and condition. However, the Over-Time entitlement for Drivers who perform duties, after close of business hours, has been revised as follows:

Description Previous Revised Condition
Protocol Drivers Rs. 200 Rs. 400 If the duty goes beyond 9:00 pm but lasts before 12:00 midnight on any working day.
Rs. 400 Rs. 600 If the duty goes beyond 12:00 midnight on any working day
N/A Rs. 600 If the duty commences after 12:00 midnight and lasts till 9:00 am on any working day
N/A Rs. 300 If the duty commences after 6:00 am and lasts till 9:00 am on any working day
Rs. 400 Rs. 600 For duty on weekly and public holidays
Other Drivers Rs. 125 Rs. 250 Half Daily Allowance (DA) shall be allowed to (permanent and regular) drivers on official tour if the tour lasts for more than eight (8) hours and continues beyond 9 pm.

15. UNIFORM ACCESSORIES ALLOWANCE

It has been agreed to revise the following uniform accessories allowance to non-clerical workers:

a. Stitching charges: Rs. 800 per annum

b. Two pairs of shoes: @ Rs. 1,200 per pair

c. Six pairs of socks: @ Rs. 120 per pair

d. Two caps: @ Rs. 400 per cap for Guards only

e. Two Jerseys: on an annual basis @ Rs. 2,000 per jersey

In addition to the above, an additional amount of Rs. 1,500/- will be paid to the Scooter Riders as cost of Helmets once in two years.

16. 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:

a) Gun Allowance

i) Branch having two guards: Rs. 300 per guard per month

ii) Branch having only one guard: Rs. 600 per guard per month

b) Duty during weekly or gazette holidays:

i) In case of one guard on duty: Rs. 255 per day;

ii) In case of two guards on duty: Rs. 150 per day;

17. SPECIAL DUTY ALLOWANCE

It has been decided to revise Special Duty Allowance from Rs. 300 per month to Rs. 450 per month. The following categories of all permanent and regular clerical and non-clerical workers:

a. Duplicating Machine Operator

b. Photocopier 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

18. GENERAL

a. The C.B.A, its Allies and Successors agree and accept 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 two (2) 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, hence liable to be set/off;

b. The C.B.A, its Allies and Successors agree 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;

c. The C.B.A, its Allied and Successors further agree that during the currency of this settlement in consideration of benefits and increases given as per this agreement, the C.B.A or any other succeeding C.B.A in the establishment(s) of the Bank shall not raise or pursue directly or indirectly any further or fresh demands whatsoever having any financial or non-financial implication on the Bank;

d. The C.B.A, its Allied and Successors agree and concede 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 C.B.A, 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.

e. The C.B.A, its Allied and Successors undertake that it and its constituent members shall fully cooperate with management in maintaining industrial peace, in increasing productivity and in fostering discipline.

f. Notwithstanding contained hereinabove, the provisions, covenant, terms and conditions contained in this Memorandum of Settlement, will remain operative, effective, binding and in force upon all the permanent and regular clerical and non-clerical workers till the completion of validity of this Memorandum of Settlement i.e. up to 30th September, 2013 and any clerical and/or non-clerical employee will not be authorized to raise any demand or present any Charter of Demand either through himself/herself or through his/her Union/C.B.A or Office Bearer, even if status of existing C.B.A is assailed and fresh C.B.A is determined during the validity period of this Memorandum of Settlement. The succeeding C.B.A being successor in interest shall be fully bound by this Agreement.

Signed at Lahore on the 16th day of December, 2011.

*****

Memorandum of Settlement between Allied Bank Limited and Allied Bank Worker’s Federation of Pakistan - 2011

Start date: → 2011-09-01
End date: → 2013-08-31
Ratified by: → Other
Ratified on: → 2011-12-16
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: → 

WORK AND FAMILY ARRANGEMENTS

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

WAGES

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

Wage increase

Wage increase: → 10.0 %

Once only extra payment

Once only extra payment due to company performance: → No

Premium for overtime work

Premium for overtime work: → PKR 600.0 per hour overtime

Meal vouchers

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