MEMORANDUM OF SETTLMENT BETWEEN ALLIED BANK LIMITED AND ALLIED BANK WORKERS’ FEDERATION OF PAKISTAN - 2013

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Under and read with section 2 (xxix) & 35(2) of Industrial Relations Act, 2012

From 1st September, 2013 to 10th September, 2015

Name of the Parties

1. Allied Bank Limited, having its registered office at 3-4, Tipu Block, New Garden Town Lahore (herein referred to as the ‘Bank’, which expression shall include its successors-in-interest, administrators and assigns)

AND

2. Allied Bank Workers’ Federation of Pakistan, a registered federation of Trade Union 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 February 15, 2012 (hereinafter referred to as the ‘C.B.A’ which expression shall include its successors, assigns and all permanent workman in actual employment or to be employed by the Bank).

Representing Employer:

1.Mr. Tariq Mahmood

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. Sadiq Deraishak

5.Mr. Muhammad Ayub Khan

6.Mr. Jehazeb Khan

Short Recital of the Case

Whereas, the RITU (NIRC) certified the Federation as C.B.A vide Order dated February 15, 2012;

AND Whereas, a Memorandum of Settlement was signed between the parties on December 16, 2011 which was valid till August 31, 2013;

AND Whereas, the C.B.A had served a fresh Charter of Demand on 21st June, 2013 and bilateral negotiations were held between the parties 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.

EFFECTIVE OF MEMORANDUM OF SETTLEMENT

It is hereby agreed that the terms of this Memorandum of Settlement shall be effective, binding and operative for the period, commencing from 1st September, 2013 and terminating on 10th September, 2015.

TERMS OF 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 23% w.e.f. 1st September, 2013.

b) Annual Increase for the Years 2013 and 2014 to be paid in the years 2014 and 2015 respectively

Thereafter, on an annualized basis, 10% increase in gross salary, shall be allowed to all permanent and regular clerical and non-clerical workers, subject to recommendation, w.e.f. 1st September, 2014 (for the year 2013) and w.e.f. 1st September, 2015 (for the year 2014).

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 or 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 are awarded punishment during the year (excluding warnings and reprimands) or whose administrative action cases are pending shall not be entitled for these salary increases;

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. PENSION

With reference to the demand of the C.B.A regarding payment of pension, it was not agreed by the Bank as per the terms of demand. However, the Bank and the C.B.A agreed that incase, the Bank after obtaining approval from concerned commissioner of Income

Tax offer lump sum payment of pension, at net present value (NPV) after applying discounting then the C.B.A will have no objection to this offer, provided such offer from Bank will be purely on voluntary basis. Once the Bank offers such option, it will be taken as consented by the C.B.A into inclusive of all its sub-conditions, as announced by the Bank.

3. EDUCATION ALLOWANCE

It has been agreed to revise the education allowance allowable to all permanent and regular clerical and non-clerical workers for the education of their children, up to a maximum amount of Rs. 4,500 per month per clerical/non-clerical employee, subject to authentication and submission of original fees slips.

i) Up to matriculationRs. 1,500 per child per month

ii) For college/technical educationRs. 2,250 per child per month

iii) For professional education from

HEC recognized university/educational Rs. 3,000 per child per month

iv) Cash Prize for Hifz-e-QuranRs. 100,000 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 of this Memorandum of Settlement.

All payments under this clause are subject to submission of fee receipts and verifications by the Bank and will only be allowed after the date of signing of this settlement. Likewise, case prize for Hifz-e-Quran shall only be applicable to those children workers who Hifz Quran after the date of signing of this settlement.

4. CLOSING ALLOWANCE

It has been agreed to increase the Closing Allowance for all permanent and regular clerical and non-clerical workers from Rs. 1,000 to Rs. 1,200 twice a year (June 30 and December 31).

5. BONUS

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

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

6. MOVE-OVER TO NEXT HIGHER SCALE

The Bank hereby agrees for allowing move-over into the immediate next scale only to those workers who are above the maximum of their existing pay ranges. However, this will not apply to those workers who are already in the highest pay scale i.e. scale 7.

7. 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 practice:

a) House Building Finance for scales 1 to 3: Rs. 1,350,000

b) House Building Finance for scales 4 to 7: Rs. 1,850,000

All other terms and conditions shall remain the same.

8. MOTOR-CYCLE FINANCE

It has been agreed to revise maximum limit of motorcycle finance from Rs. 70,000/- to Rs. 80,000/- all other terms to remain unchanged. This increase will be applicable upon fresh requisitions submitted after the signing of this settlement.

9. PERSONAL LOAN

It has been agreed that workmen will have an option to avail personal loan up to the maximum limit of either their respective 5 monthly Basic Salaries or equivalent to 3 monthly Gross Salaries (excluding out of range allowance). All the other terms of this loan/finance will remain unchanged.

10. HAJJ

It has been agreed that twelve (12) 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 effective from Hajj 1435 Hijri. There will be two separate balloting i.e. 1st ballot for selection of 10 workers from the total eligible strength of the permanent and regular clerical and non-clerical workers and 2nd ballot for selection of 2 workers will be from those who have less than 24 months to attain superannuation. The management shall bear full payment to the Federal Government for Hajj application under the normal Government scheme.

11. IN SERVICE MEDICAL FACILITY

It has been agreed to revise the reimbursement of Maternity charges up to Rs. 10,000/- per delivery (for delivery at home) and up to Rs. 20,000/- per delivery (for delivery at hospital). All other terms as mentioned in Para 5 of Memorandum of Settlement dated 8th September, 2008 will remain unchanged.

12. BURIAL EXPENSES

It has been agreed to revise the payment of Burial Expenses from Rs. 40,000/- to Rs. 60,000/- for the burial of the permanent and regular clerical and non-clerical workers their dependent family members (dependent family members include dependent parents, spouse and real children) who pass away during the service or during the LPR of that employee.

13. MARRIAGE GRANT

It has been agreed to revise the 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. 300,000/-

ii) For any two real daughtersRs. 300,000/- (for each of the two

real daughters, in case of 1st marriage only)

14. GROUP LIFE INSURANCE

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

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

i) Clerical workers....Rs. 550,000/-

ii) Non-clerical workers.....Rs. 450,000/-

15. DAILY ALLOWANCE/OVER-TIME

The Daily Allowance (DA) for clerical and non-clerical workers (except Drivers) has been revised from Rs. 500 per to Rs. 700 per day subject all other applicable terms and condition. However, the DA entitlement for Drivers who perform duties after close of business hours has been revised as follows:

Description Previous Revised Conditions
Protocol Drivers (Drivers particularly posted as ‘Protocol Drivers’ at Karachi, Multan, Lahore and Faisalabad) Rs. 400 Rs. 500 If the duty goes beyond 6.00 p.m. but lasts before 1.00 a.m. on working day as over-time.
Rs. 600 Rs. 650 If the duty goes beyond 1.00 a.m. on working day. And in case of a night stay out of base station, the Daily Allowance’ as admissible to other clerical and non-clerical employees will be paid and no other allowance will be admissible in that situation.
Rs. 600 Rs. 800 For duty on weekly and public holidays.
Other Drivers Rs. 250 Rs. 350 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 9.00 p.m. In case of a night stay out of base station, the Daily Allowance’ as admissible to other clerical and non-clerical employees will be paid and no other allowance will be admissible in that situation.

Notwithstanding the above, in case of ‘Protocol Drivers’ performing duties at Islamabad, Lahore, Multan and Karachi beyond 11.00 p.m. on any given day or on Sundays/Public Holidays, such ‘Protocol Drivers’ shall be given an additional Rs. 300/- per day as Conveyance Allowance for their travel from home to office ad back in odd hours.

16. UNIFORM ACCESSORIES ALLOWANCE

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

a. Stitching charges:Rs. 1,000 per suit (No. of suits remain unchanged i.e. six (6) suits per annum)

b. Two pairs of shoes: @ Rs. 1,500 per pair

c. Six pairs of socks: @ Rs. 200 per pair

d. Two caps: @ Rs. 500 per cap for Guards only

e. Two Jerseys:on an annual basis @ Rs. 2,500 per Jersey

In addition to the above, an additional amount of Rs. 2,000/- will be paid to the Scooter Riders as cost of Helmets once in two years.

17. ALLOWANCE 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. 400 per guard per month;

ii) Branch having only one guard - Rs. 800 per guard per month;

b) Duty during weekly or gazette holidays

i) In case of one guard on duty - Rs. 400 per day;

ii) In case of two guards on duty - Rs. 250 per day;

18. SPECIAL DUTY ALLOWANCE

It has been decided to revise Special Duty Allowance from Rs. 450 per month to Rs. 600 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

19. CONTINUOUS BANKING ALLOWANCE (9.00 AM TILL 8.00 PM)

Clerical and Non-clerical employees who are assigned to work late in those Branches which operate from 9.00 am. till 8.00 pm. will be allowed Continuous Banking Allowance @ Rs. 1,500 per month. This allowance will be admissible as long as such employees remain posted in those Branches which operate from 9.00 am. till 8.00 pm. Further, it will also be discontinued, if Branch’s working hours are reduced back to conventional working hours. This will not be admissible to the Security Guards on shift duty.

20. GENERAL

a. The C.B.A, its Allies and Successors agree and accept that the above benefits and increases are being given and agreed to, by the Bank, keeping in view the rise in cost of living and as a relief due to rise in cost of living in the part, as well as for the next two (2) years. Any benefits, increases or allowances that are given during the operative period of this agreement by the federal or provincial government under any law, rules or notifications, 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 Allied and Successors agree that this memorandum and settlement is full and final settlement in respect of all terms and conditions of employment as well as other disputes and demands, if any;

c. The C.B.A, its Allies 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 Allies 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 any of its constituents or workmen in the management of the affairs of the bank including, but no limited to matters relating to promotions, transfers, leave, administration, etc.

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

f. Notwithstanding with the above, the provision, covenants, 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 10th September, 2015 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 successors in interest shall be fully bound by this Agreement.

Signed at Lahore on 26th December, 2013.

*****

Memorandum of Settlement between Allied Bank Limited and Allied Bank Workers’ Federation of Pakistan - 2013

Start date: → 2013-09-01
End date: → 2015-09-10
Ratified by: → Other
Ratified on: → 2012-01-15
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: → 23.0 %
Wage increase starts: → 2013-09

Once only extra payment

Once only extra payment due to company performance: → Yes

Premium for overtime work

Premium for overtime work: → PKR 650.0 per hour overtime

Meal vouchers

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