MEMORANDUM OF SETTLEMENT BETWEEN HABIB BANK LIMITED AND HABIB BANK WORKERS FRONT OF PAKISTAN - 2009

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WHEREAS under the Industrial Relations Act 2008, the Habib Bank Workers Front of Pakistan has been certified as CBAs in respect of employees employed in various Branches and Officers of Habib Bank Limited.

AND WHEREAS the Hon’ble National Industrial Relations Commission has determined that all Branches & Officers of Habib Bank Limited in Pakistan constitute one CBU and Habib Workers Front of Pakistan has been certified for the CBU;

AND WHEREAS definition of establishment has been materially changed with the promulgation of the Industrial Relations Act 2008. Under the amended definition, all Branches and Offices constitute one establishment;

NAME OF PARTIES

1- Habib Bank Limited having its principal office at Habib Bank Plaza, 1.1. Chundrigar Road, Karachi.

2- Habib Bank Workers Front of Pakistan, a Trade Union of workmen employed in Habib Bank Limited.

SHORT RECITAL OF THE CASE.

WHEREAS a memorandum of settlement was signed between the parties on 29th April 2007, which settlement endured till 31st December 2008.

AND WHEREAS the terms and conditions of employment were discussed in detail amongst the parties and settlement has now been reached on all the demands / claims whether raised through Charter of Demands or otherwise raised up till signing of this settlement.

AND WHEREAS this agreement with effect from 01- 01 – 2009, has modified and varied various decisions of Wage Commission for the employees and shall be applicable notwithstanding anything in consistent with any of the decisions of the Wage Commission. In fact this settlement / agreement replaces various decisions of the Wage Commission and settlement dated 29.04.2007. which shall be no longer binding on the employer as well as on the Workmen on signing of this settlement.

THIS SETTLEMENT, therefore, witnessed as under:-

1- INCREASE IN BASIC PAY

It has been decided to allow increase in basic pay as under:-

i) @ 13% of Basic Pay as on 31. 12.2008 to each eligible Clerical Staff w.e.f. 01.01.2009.

ii) @ 13% of Basic Pay as on 31.12.2009 to each eligible Clerical Staff w.e.f. 01.01.2010

All related allowances, which are indexed on the Basic Pay will also be increased accordingly from the date of increase in Basic Pay allowed.

2- APPRAISAL INCREASE

It has been decided that the Appraisal Increase for the years 2009 & 2010 will be allowed on the Basic Pay as on 31.12.2008 and 31.12.2009 respectively as under:-

a) Excellent ( “ A” ) -- 3%

b) Very Good ( “B” ) -- 2%

c) Good ( “ C” ) -- 1%

d) Unsatisfactory (“ D” ) -- Nil

A Separate circular along with statement showing increase in Basic Pay of individual Clerical Staff will be issued accordingly.

3- SPECIAL ALLOWANCE

An amount equivalent to 7% of Basic Pay as on 31 – 12 – 2008 will be allowed to all Clerical Staff for 02 years effective from 01. 01. 2009. This allowance is being given in consideration of special assignments.

4- TERMS OF SETTLEMENT

DATED 19TH DECEMBER 1998, 14TH APRIL 2001, 2ND AUGUST 2002, 10TH May 2004 & 29th April 2007.

Terms of Settlement dated 19th December 1998, 14th April 2001, 2nd August 2002, 10th May 2004 and 29th April 2007, in respect of the following items shall continue in operation without any change:-

i) Scales of Pay

ii) Utility Allowance

iii) Medical Allowance

iv) House Rent Allowance

v) Bonus

vi) Medical Facilities

vii) Extra Payment for Extra Work ( Overtime)

viii) Leave Entitlement

ix) Service Awards

x) Marriage Grant from Benevolent Fund.

xi) Ceiling for Finances (DSR)

xii) Scholarships.

xiii) Compensation to staff members

xiv) Marriage Grant

xv) Unattractive Area Allowance

5- EDUCATION ALLOWANCE

The Education Allowance will be enhanced with effect from 01.01.2009 as under:-

Upto Matriculation: From Rs. 500/- to Rs. 650 per month per child.

For College Education: From Rs. 600/- to Rs. 750/- per month per child.

For Professional / Technical EducatioN: From Rs. 1100/- to Rs. 1250/- per month per child.

The existing limit of Education Allowance of Rs. 2,000/- per month to an employee will be enhanced to Rs. 2.600/- per month accordingly.

6- CONVEYANCE ALLOWANCE

The existing Conveyance Allowance (Petrol Ceiling) has been increased from Rs. 1820/- per month to Rs. 2200/- per month with effect from 01.01.2009

7- SEVERE WINTER ALLOWANCE

The present rate of Severe Winter Allowance will be increased from Rs. 1,200/- per month to Rs. 1,500/- per month with effect from 01-01-2009.

This allowance will continue to be paid from November to April to employees posted at the stations approved by the Management from time to time for payment of Severe Winter Allowance.

8- HILL ALLOWANCE

The present rate of Hill Allowance will be increased from Rs. 800/- to Rs. 1,100/- per month with effect from 01-01-2009. This allowance will continue to be paid to the Clerical Staff posted in the Branches situated at Hill Stations at the height of 5500 feet and above.

9- RISK ALLOWANCE FOR KEY HOLDER CASHIER

The present rate of Risk Allowance for Key Holder Cashier will be increased from Rs. 500/- per month to Rs. 600/- per month with effect from 01-01-2009.

10- MATERNITY CHARGES

Maternity Charges will be revised with effect from 01-01-2006 as under:-

Existing Revised
Delivery At Home Rs. 6.500/- per child. Rs. 8,500/- per child.
Delivery At Hospital Rs. 10,000/- per child. Rs. 12.000/- per child.

No receipt will be required for delivery at home. The payment in this respect is to be allowed on the basis of Birth Certificate This facility will continue to be admissible upto three (3) children during service.

11- FUNERAL EXPENSES

Existing Revised
On Passing Graduation Rs.25,000/- Rs. 30,000/-
On Passing Post Graduation Rs. 35,000/- Rs. 50,000/-
On Passing PHD Nil Rs. 100,000/-

The present limit of funeral expenses will be enhanced from Rs. 15,000/- to Rs. 20,000/- w.e.f. 01.01.2009.

12- TRAVELING ALLOWANCE

The present rate of Daily Allowance will be increased from Rs. 400/- to Rs. 500/- for Clerical Staff w.e.f. 01.01.2009.

13- REWARD FOR HIFZ-E-QURAN

The amount of existing reward for Hifz-e-Quran has been enhanced from Rs. 40.000/- to Rs. 50.000/- with effect from 01.01.2009. permissible to the sons /& daughters of employees on acquiring the Sanad of Hifz-e-Quran from recognized Institutions.

14- INCENTIVES FOR PASSING EDUCATIONAL EXAMINATIONS

The existing cash awards have been enhanced w.e.f. 01.01.2009, as under:-

The cash awards on passing Professional Examinations will remain unchanged.

15- GROUP INSURANCE

The existing limit of Group Insurance (Life) has been enhanced from Rs 500,000/- to Rs. 750,000/- to Rs. 250,000/- with effect from 01.04.2009.

Further, in case of accidental death the additional existing limit has been enhanced from Rs. 50,000/- to Rs. 250,000/- with effect from 01.04.2009.

16- BENEVOLENT FUND GRANT

The Benevolent Fund Grant has been enhanced from Rs. 2000/- to Rs. 2500/- per month for those Clerical Staff retiring on or after 01.01.2009.

Further, the monthly contribution for Clerical Staff has been enhanced from Rs. 100/- to Rs. 160/- per month effective from 01.01.2009. Bank will make matching contribution as per policy.

17- RETIREMENT BENEFITS

Own & Bank’s Contribution towards Provident Fund under Old Retirement Benefits has been enhanced from 5% to 12% of the basic pay with effect from 01.01.2009.

The other terms & Conditions of retirement benefits will remain unchanged.

18- HOUSE FINANCE

The House Finance for Clerical Staff has been enhanced from Rs. 470,000/- to Rs. 650,000/- with 0% mark-up with effect from 01.01.2009.

Enhancement of Rs. 50,000/- will be sanctioned to the Clerical Staff subject to the completion of required formalities.

The sanctioning authority while approving the enhancement will ensure that the value of the property against which enhancement is being granted is definitely more than the total House building Finance. Further, the installments are to be revised to ensure the full recovery till retirement on superannuation age.

19- CAR FINANCE

The Car Finance for Clerical Staff has been revised with effect from 01.01.2009, as under:-

Existing Rate of Mark-up Revised Rate of Mark-up
Cost of New Suzuki

Mehran Car CNG

Fitted (STD)

@ 4% p.a. Cost of New Suzuki

Mehran Car CNG

Fitted (AC)

@ 4% p.a.

20- 3-BASIC FINANCE

The maximum limit has been enhanced from 3-Basix to 5-Basic Salaries effective from 01.01.2009 with mark-up @ 8 % per annum.

21- ANOMALY COMMITTEE

It has been agreed to appoint an Anomaly Committee consisting of six (6) members, three (3) from union side & three (3) from management side to resolve any anomaly in future in implementation of this settlement.

22- GENERAL

The second party agrees, accepts and concedes:-

a) That 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 cost of living. Any benefits, increase or allowance allowed by the Federal or any Provincial Government under any law, rules or notification issued during the period of operation of this settlement are hereby deemed to have been granted in terms of the provision of this settlement and shall not therefore be separately payable.

b) That the Unions during the currency of this settlement shall not raise or pursue, directly or indirectly any further or fresh demands whatsoever, having any financial or non-financial implication on the Bank.

c) That it is the sole and exclusive right of the Management to manage affairs of the Bank and the Unions declares that are shall be interference by the Unions or Workmen, in the Management of the affairs of the Bank. However, the Union may help the workers in settlement of their grievances in accordance with the Law.

d) That the Unions and its constituent’s members shall fully cooperate with the Management in maintaining industrial peace, in increasing productivity and in fostering discipline.

e)This settlement shall apply only to Clerical Employees who are employed in clerical cadres. It is clarified that this settlement shall not be applicable to employees in Officers / Executives Cadres.

23- PERIOD OF OPERATION

This settlement shall be binding and operative for a period of Two (02) years commencing from 01 – 01 – 2009 and terminating on 31 – 12 – 2010 and shall continue to operate even thereafter until expiry of two months from the date either party gives notice to the other party in writing of its intention to be no longer bound by this agreement.

All the industrial disputes between the Workmen, Unions and the Management of Habib Bank Limited have been through negotiations, amicably settled in terms of this memorandum of settlement signed today Monday the 31st August, 2009.

Signed at Karachi on 31st August 2009.

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Memorandum of Settlement between Habib Bank Limited and Habib Bank Workers Front of Pakistan - 2009

Start date: → 2009-01-01
End date: → 2010-12-31
Ratified by: → Other
Ratified on: → 2009-08-31
Name industry: → Financial services, banking, insurance
Name industry: → Banking
Public/private sector: → In the private sector
Concluded by:
Name company: →  Habib Bank Limited
Names trade unions: →  Habib Bank Workers Front of Pakistan

TRAINING

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

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: → 13.0 %
Wage increase starts: → 2008-12

Once only extra payment

Once only extra payment due to company performance: → No
Once only extra payment takes place: → 2009-01

Allowance for commuting work

Allowance for commuting work: → PKR 2200.0 per month

Meal vouchers

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