3RD AUGUST, 1999


1. Mr. Shoabi-ur-Rehman - CE(PT).TIP

2. Mr. Nadeem Ahmad Khan - CCM, TIP

3. Maj. (Retd) Zaffar Saced Malik - PsM, TIP


1. Mr. Manzoor Ahmed - President, E&W Union TIP

2. Mr. Muhammad Riaz - General Secretary, E&W Union TIP

3. Mr. Haji Ghulam Mehmood - Senior Voice President, E&W Union TIP

4. Mr. Muhammad Shabbir - Joint Secretary, E&W Union TIP.


TIP Employees & Workers Union (CBA) submitted a Charter of Demand (copy attached) to the TIP Management vide their letter No. E&W Union dated 24. 10. 1998, containing fifty-three demands. The Charter of demands was discussed by the representatives of CBA and the Management in a number of meetings held during the period and finally a package deal was agreed to as under:-



In recognition of the satisfactory services rendered by the TIP Employees and Workers at all level, and the Tremendous progress achieved by them in the field of production during the period, it was decided to pay them “Special Additional Allowance” at a flat rate of Rs. 1250% p.m. with effect from 01.10.1998. This allowance would be inclusive of the 25% “Special Additional Allowance” allowed by the Government with effect from 1st July, 1999. Any increase in pay and allowances allowed by the Government during the operation of this agreement will neither be claimed nor allowed to the Employees & Workers of TIP.


It was agreed that the demand of the E&W Union to convert the incentive allowance amounting to Rs. 1375/- as pay for the purpose of pension shall be discussed at a later stage. Keeping in view the position of the pension funds.


It was agreed to increase the existing limit for grant of Daughter’s Marriage Loan from Rs. 10.000/- to Rs. 15,000/- to be recovered in 20 equal installments. Other conditions for grant of this loan would remain unchanged.


It was agreed to increase the existing limit for grant of Motor Cycle Advance from Rs. 7,000/- to Ts. 15,000/- per person, to be recovered in 36 equal installments. The maximum number of Employees and Workers eligible for the grant of this advance would be 50 (fifty)


It was agreed to increase the limit for grant of House Building Advance from Rs. 75,000/- to Rs. 100.000/- per person, to be recovered in 100 equal installments. The maximum number of Employees and Workers eligible for the grant of this advance would be 25 (twenty-five). The conditions for grant of this advance would remain unchanged.


It was agreed to increase the existing limit of Maternity Allowance from Rs. 1000/- to Rs. 2000/-. This will however, not be applicable in the cases when delivery takes place in the Hospital for which medical reimbursement in claimed.


It was agreed to increase the existing limit for grant of Shoes Allowance from Rs. 250/ p.a. to Rs.500/- p.a. This allowance will be admissible as per existing entitlement and practice in vogue.


It was agreed to enhance the existing limit for grant of Milk, Butter and Fruit allowance allowed in Hazardous Shops from Rs. 9.50 to Rs. 15/- per attendance.


It was agreed to increase the existing rate of Milk Allowance from Rs. 17/- p.m. to Rs. 35/- p.m. for the employees and from Rs. 34/- p.m to Rs.70/- p.m to for the workers as per present entitlement.


It was agreed to increase the existing limit of education grant from Rs. 50,000/- to Rs. 100,000/-. The conditions and formula for this grant would remain unchanged.


It was agreed to enhance the existing Fare allowed in medical referred cases for two seats in public transport from Rs. 36/- to Rs.60/- for abbottabad and Rs. 66/- to Rs. 90/- for Islamabad/Rawalpindi. The fare would not be admissible when ambulance is available provided.


It was agreed to enhance the existing limit of Retirement Award from Rs. 2000/- to Rs. 3000/-. The condition for grant of this award would remain unchanged.


It was agreed to provide accommodation in T&T Colony to the local employees & workers living within 12KM radius subject to availability of quarters.


It was agreed to arrange refresher courses for employees desirous of appearing in professional examinations like T-2. K-3. A-3 & S-3. Anyhow no exemption would be allowed and the requirement of clearing these professional examinations would continue to apply as per practice in vogue.


It was agreed to take up a case with Board of Technical Education (NWFP), Peshawar for granting recognition to TIP Apprentice-ship Certificate at par with Diploma issued by Polytechnic Institutes.


It was agreed that in future the patients referred to outside hospitals would not be referred to any particular doctor by name but to the concerned department of that hospital.


It was agreed to enhance the wage rate of the daily wage-workers from Rs.50- per day to Rs. 75/- per day.


It was agreed that with effect from the month of October, 1999 a fixed allowance will be paid to the employees and workers in lieu of Cold Cream and Bath Soap as per existing entitlement at the following rates:-

a) Cold Cream - @ Rs. 25/- per bottle

b) Bath Soap - @ Rs. 10/- per cake

The conditions for eligibility of these items would remain unchanged and the rates would be valid till the operation of this agreement.


It was agreed that the demand of E&W Union to allow medical treatment to the retired employees and workers would be considered, if and when the financial health of TIP shows a significant improvement.


It was agreed that employees and workers proceeding on Haj would continue to be allowed 45 days leave as per past practice but with the following new concessions:-

1. The employees will be granted leave from their leave credit and in case there is a deficit he would be allowed that period as leave not due to be adjusted against leave earned in the future.

2. The workers will be granted leave from their leave credit and in case there is a deficit he would be allowed that period as a very special case on half average pay without adjustment against leave earned in future.


It was agreed to revise the existing rates of Service Award allowed to piece rated workers as follows:-

a. On completion of 20 years service = Rs. 45/- p.m.

b. On completion of 25 years service = Rs. 60/- p.m.

c. On completion of 30 years service = Rs. 75/- p.m

22.It was agreed to constitute a committee as under to review the existing upper grade limits for the purpose of promotion in each cadre. The committee would submit its recommendations within six months for perusal and approval by the Competent Authority:-

1. Mr. Soaib-ur-Rehman - C.E,(P.T)

2. Mr. Javed Akhtar Bajwa - C.E, PP&P

3. Mr. Sheikh Farid - C.E, Sales

4. Major (Retd) Zaffar Saeed Malik - PsM

5. Mr. Manzoor AhmadPresident, - E&W Union

6. Mr. Muhammad Riaz - General Secy. E&W Union


It was agreed to enhance the existing limit of pay, for grant of overtime to the employees from Rs. 3520/- to Rs. 4110/-


The Union has agreed not to raise any demand of financial nature during the period of operation of this agreement. It has assured the Management of its unflinching support and cooperation in maintaining industrial peace in the factory apart from substantially increasing the production. They have further reiterated that the growth. Progress and development of the factory are actually bound with growth and progress of the employees and workers of TIP.

Above agreement has been arrived at between the parties through mutual negotiations carried out in peaceful environments in a cordial manner.


Memorandum of Settlement Between Tip and Tip Employees and Workers Union - 1999

Start date: → 1999-08-03
End date: → Not specified
Name industry: → Transport, logistics, communication
Name industry: → Satellite telecommunications activities, Wired telecommunications activities
Public/private sector: → In the private sector
Concluded by:
Name company: →  TIP
Names trade unions: →  TIP Employees and Workers Union


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


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

Once only extra payment

Once only extra payment: → PKR 1250.0 %
Once only extra payment due to company performance: → Yes
Once only extra payment takes place: → 1998-01

Allowance for seniority

Allowance for seniority: → PKR 45.0 per month
Allowance for seniority after: → 20 years of service

Meal vouchers

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