MEMORANDUM OF SETTLEMENT BETWEEN PAKISTAN OIL FIELDS LIMITED AND UNITED WORKERS UNION PAKISTAN OIL FIELDS LIMITED - 2013

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AGREEMENT FOR THE PERIOD; JULY 01, 2013 – JUNE 30, 2015, MORGAH, RAWALPINDI

KHAUR, DISTRICT ATTOCK

FORM “X” RULE 77 OF THE PUNJAB INDUSTRIAL RELATIONS RULES

MEMORANDUM OF SETTLEMENT

REPRESENTING EMPLOYER

Shuaib A. Malik - Chief Executive

Mr. Saadat Anis - General Manager

Mr. Tariq Ali Khattak - Sr. Manager (Materials)

Mr. Zafar Munir - Manager (Admin) – Fields

Mr. Razzaq Goraya - Manager (Process)

Mr. Athar Sibghatullah - Manager (Finance)

Mr. Mansoor ul Hassan - Assistant Manager (Admin) – Khaur

REPRESENTING WORKERS (C.B.A)

Qazi Tariq Mehmood - Chairman

Mr. Mumtaz Hussain - President

Malik Allah Yar Khan - General Secretary

Mr. Muhammad Iqbal - Joint Secretary

Mr. Ghulam Safdar - Finance Secretary

Mr. Muhammad Iqbal - Vice President

1. SHORT RECITAL OF THE CASE

Whereas the Pakistan Oil Fields United Workers Union Khaur (Attock), the Collective Bargaining Agent (hereinafter called C.B.A), representing the Workers of Pakistan Oil Fields Limited (hereinafter called Company) submitted a Charter of Demands (Annexure “A”) to the “Company” vide their letter dated the October 25, 2013 under the Punjab Industrial Relations Act, 2010 and Pakistan Essential Services (Maintenance) Act, 1952.

And whereas bilateral negotiations commenced on the Charter of Demands, which were extended from time to time, with mutual consent to enable the Parties to arrive at an overall settlement.

And whereas, the Company maintains that unless overall productivity is increased, it will not be possible to make any substantial improvement in the wage rate and other terms and conditions of workmen.

And whereas, the C.B.A appreciated the need for improving labour productivity, and assured its full cooperation in implementing measures for improving productivity, maintaining discipline and industrial peace, refraining from interfering in the inherent functions, rights, powers and prerogative of Management.

And whereas, the Company maintained that the existing wage rates, Allowances and other terms and conditions of service of its workmen compared favourably with the same in other comparable establishments. However, keeping in view the rising cost of living and other considerations of Collective Bargaining with the C.B.A with Company agreed to consider and discuss the Charter of Demands with the C.B.A.

Now therefore, the following has been agreed between the Parties in full and final settlement of all exiting demands raised by the C.B.A. The Agreement witnesseth as follows: -

A. In consideration of the C.B.A, entering into and abiding by this Agreement, for the period hereinafter stated.

B. Accepting the terms of Agreement, in full and final settlement of all demands, and disputes in existence upon the time of signing of this Agreement.

C. Undertaking to keep Industrial peace at all places of work at all times on the one hand and to cooperate full and effectively with the Company, in its efforts to increase efficiency, productivity and economy on the other hand.

D. Agreeing to abide by the Rules of safety and security and to act in conformity with the instructions issued by the Company from time to time. And agreeing that in acute emergency, workers will be called on overtime with a view to maintain the continuity of process.

E. Undertaking not to raise or pursue during the terms of this Agreement any demand(s), involving direct or indirect financial commitments on the parts of the Company.

F. The Company undertakes to abide by the terms of the Settlement and implement the same the cooperation of the C.B.A

2. TERMS OF AGREEMENT

(1) That this Agreement shall come into force with effect from 1st day of July, 2013 and its terms will be effective from the 1st day of July, 2013, unless otherwise specifically provided, and the Agreement shall continue to remain in force until 30th day of June, 2015 and thereafter shall remain operative unless terminated by either party upon giving to the other party a notice prescribed under The Punjab Industrial Relations Act, 2010.

(2) Both the Parties shall abide by the Agreement during the period specified above.

(3) It is agreed that if the Government legislates any payment for Industrial Workers on account of increase in the cost of living during the operative period of this settlement, both the Parties shall mutually examine its impact taking into consideration any benefits/payment already given by the company during the said period on account of increase in cost of living and necessary adjustments shall be made accordingly without placing either party at a disadvantaged position, provided that the company shall not assume any additional financial burden unless explicitly required under any law.

3. INCREASE IN BASIC WAGES/PAY

In view of the rise in cost of living and essential commodities, the Company agrees to allow an increase in the basic wages admissible to the workers on 30th June, 2013 at the rate of 19% (Nineteen percent) w.e.f. July 01, 2013. It is also agreed that if the Government announces any increase in wages after the date of signing of this Agreement, such increase will not be automatically effective but would be subject to negotiations between Management and C.B.A.

4. ASSITANCE TOWARDS HOUSE RENT

The Company agrees to revise the House Rent Assistance as per following:

For Fields staff living in their own accommodation:

From 28% to 30% of Basic Pay.

For Rawalpindi (Head Office) Staff:

From 28% to 30% of Basic Pay.

All other terms and conditions will remain the same.

5. UTILITY ALLOWANCE

It is agreed to increase the Utility Allowance from 18% to 20% of Basic Pay.

6. FESTIVAL ALLOWANCE

The Company agrees to revise the existing Festival Allowance from Rs. 6,000/- Rs. 7,000/-

All other terms and conditions applicable to this allowance shall remain unchanged.

7. SHIFT ALLOWANCE

The Company agrees to increase the Shift Allowance from Rs. 500/- per month to Rs. 600/- per month for all Shift Workers.

8. DRILLING ALLOWANCE

The Company agrees to revise the existing rate of Drilling Allowance/Heavy Allowance as follows: -

Drilling Allowance for Rig Staff:

Senior Foreman (Mud Supervisor) From Rs. 900/- to Rs. 1,000/- p.m.
Drilling Crew From Rs. 900/- to Rs. 1,000/- p.m.
Mud Gangs From Rs. 725/- to Rs. 825/- p.m.
Operator (Kenworth Operator) From Rs. 725/- to Rs. 825/- p.m.
Operator (Crane Operator) From Rs. 725/- to Rs. 825/- p.m.
Senior Operator (Crane Operator) From Rs. 725/- to Rs. 825/- p.m.

Technician (welders) attached with Drilling Crew

From Rs. 725/- to Rs. 825/- p.m.
Senior Operator (H.V.O) From Rs. 700/- to Rs. 800/- p.m.

Drilling/Heavy Allowance

Diesel Workers From Rs. 600/- to Rs. 700/- p.m.
Well Completion Gang From Rs. 600/- to Rs. 700/- p.m.
Supervisor Well Completion Gang From Rs. 875/- to Rs. 975/- p.m.
Rigging up Gang From Rs. 600/- to Rs. 700/- p.m.

All other terms and conditions will remain the same.

9. SPECIAL ALLOWANCE

Special Allowance for Meyal fields has been increased from Rs. 550/- to Rs. 750/- per month to entitled workers.

Special Allowance for other fields has been increased from Rs. 400/- to Rs. 550/- per month to entitled workers.

All other terms and conditions will remain the same.

10. CYCLE ALLOWANCE

It is agreed to increase the Cycle Allowance from Rs. 180/- to Rs. 300/- per month.

11. CONVEYANCE ALLOWANCE

Conveyance Allowance has been increased from Rs. 200/- to Rs. 225/- per month and will be paid to:

a) NMS residing at Khaur village & Company’s accommodation at Khaur and working at Khaur field.

b) NMS residing at Balkassar & Bikhari Kalan and Company’s accommodation at Balkassar and working at Balkassar field.

All other terms and conditions will remain the same.

12. MESSING ALLOWANCE

The Messing Allowance related to official travelling has been revised as under w.e.f. the date of signing of the Agreement.

Breakfast Rs. 15/- to Rs. 50/-
Lunch Rs. 140/- to Rs. 150/-
Dinner Rs. 140/- to Rs. 150/-
Tea Rs. 10/- to Rs. 25/-
Lodging Rs. 425/- to Rs. 475/-

13. CLOTHING ALLOWANCE

The Company agrees to increase the existing Clothing Allowance from Rs. 150/- to Rs. 180/- per month.

All other terms & conditions will remain the same.

14. CLERK ALLOWANCE

The Company agrees to increase the existing Clerk Allowance from Rs. 2,000/- Rs. 3,000/- per month.

All other terms & conditions will remain the same.

15. SPECIAL ALLOWANCE (2009)

The Company agrees to increase the existing Special Allowance (2009) from Rs. 400/- to Rs. 500/- per month.

All other terms & conditions will remain the same.

16. UNIFORM

It is agreed that uniforms will be issued every year to two Sr. Foreman (Motor Mechanic) working in Motor Shed. Uniform will have the same pattern which is already being issued to Motor Drivers/Cleaners every year.

All other demands raised in the Charter of Demand and not covered/mentioned in this Settlement shall be treated as withdrawn.

*****

Memorandum of Settlement between Pakistan Oil Fields Limited and United Workers Union Pakistan Oil Fields Limited - 2013

Start date: → 2013-07-01
End date: → 2015-06-30
Ratified by: → Other
Ratified on: → 2013-10-25
Name industry: → Extraction, mining, quarrying
Name industry: → Extraction of crude petroleum
Public/private sector: → In the private sector
Concluded by:
Name company: →  Pakistan Oil Fields Limited 
Names trade unions: → 

WAGES

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

Wage increase

Wage increase: → 19.0 %
Wage increase starts: → 2013-07

Once only extra payment

Once only extra payment: → PKR 7000.0 %
Once only extra payment due to company performance: → No

Allowance for commuting work

Allowance for commuting work: → PKR 225.0 per month

Meal vouchers

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