MEMORANDUM OF AGREEMENT BETWEEN PHOENIX ARMOUR (PVT.) LTD AND PHOENIX ARMOUR EMPLOYEES UNION - 2013

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REPRESENTING EMPLOYERS - PHOENIX ARMOUR (PVT.) LTD.

1.MR. ABDUL GHANI - DIRECTOR FINANCE

2. BRIG. (R) M. SALEEM KHAN - GENERAL MANAGER OPERATIONS

3. BRIG. (R) ATTA GUL - GENERAL MANAGER NORTH

4. LT. COL (R) SAFIR A. SIDDIQUI - SENIOR MANAGER P&A

5. MAHBOOB ALAM SIDDIQUI - MANAGER ADMIN & IR

REPRESENTING WORKERS - PHOENIX ARMOUR EMPLOYEES UNION

1. MR. TAHIR MAHMOOD - PRESIDENT

2. MR. AQAL BADSHAH - VICE PRESIDENT

3. MR. AMIR KABAL - GENERAL SECRETARY

4. MR. ZAFAR IQBAL - FINANCE SECRETARY

SHORT RECITAL OF THE CASE

Phoenix Armour Employees Union, Room No. 15, Orakzai Plaza, Town Chowk, University Road, Peshawar, in its capacity as Collective Bargaining Agent determined by the National Industrial Relations Commission, Islamabad, vide Registration No. 5/2004, served a Charter of Demands, dated January 2, 2013 to the Management of M/s Phoenix Armour (Pvt.) Ltd. P&O Plaza, I.I Chundrigarh Road, Karachi under section 34 of the Industrial Relations Act, 2012.

Management on the receipt of the Charter of Demands dated January 2, 2013 entered into negotiation with the union. After a series of meetings, wherein the Union pleaded inflation and rise in the cost of living which factor primarily weighed in acceptance of the demands provided herein below with mutual understanding between the C.B.A Union and the Management, the parties arrived at a full and final settlement on all the demands contained in the said Charter of Demands as detailed hereinafter:

TERMS OF AGREEMENT

1. INCREASE IN SALARY/WAGES

It is submitted by the C.B.A Union that the Company has already increased Rs. 1,500/- (Salary & allowance) w.e.f. 1st June, 2012 as per demands of union and the wages presently being paid by the company are higher any other security company, in the country.

It is also agreed by the C.B.A Union that the company is paying all allowances payable to the workmen, as per the applicable laws of Federal and Provincial Government. Hence, in consideration of above, the demand for further increase in salary has been withdrawn by the C.B.A Union.

In addition to above, Management, as per demand of the C.B.A Union agreed to pay following allowances to various categories of workmen, as per condition laid down herein below:

a. Matric Allowance

Matric Allowance Rs. 100/- per month, to all guards who possess Matriculation Certificate.

b. Washing Allowance

Washing Allowance Rs. 24/- per month, all guards staff, where washing arrangements are not made by the company or its client.

c. Risk Allowance

As per the discretion of the management for Hard Area notified.

d. Officiating Allowance

As per the Rules and Regulations framed by the Company.

2. BONUS

It is agreed between the parties that the Company’s existing results and business losses do not permit grant of two Bonuses each year. However, Company will pay Bonus, subject to profits as per law.

3. INSURANCE

It is agreed that the following Insurance Cover will be provided by the company for the workmen.

a. Accidental Death/ injury, on duty (including group insurance) Rs. 3 Lacs - PAPL [Guarding Staff].

b. Accidental Death/ injury, off duty (including group insurance) Rs. 2.0 Lacs – PAPL [Guarding Staff].

c. Death of office staff on duty / off duty Rs. 2 Lacs.

d. Accidental Death of office staff Rs. 4 Lacs.

The Insurance Cover taken by the management will have proper schedule of compensation in case of total/partial permanent disability during the course of performance of duty.

4. PERMANENT EMPLOYMENT

It is agreed that all employees who are working on 9 months contract basis against permanent nature of job and have completed successfully 3 months probationary period shall be confirmed/made permanent employee w.e.f. November 22, 2012.

5. LEAVE WITH PAY ON ACCIDENT INJURY/HOSPITALIZATION

The management has agreed to accept the demand of the C.B.A union as to leave with pay during hospitalization due to accidental injury and it is agreed to incorporate it is Agreement that in case of any workman sustaining injury during the performance of his duty and this fact is established by the report of the Controlling Manager, supported by the Medical Certificate of the Army/Government Hospital, Special Leave with pay up to three months will be permissible. The system of obtaining the sanction of the management will remain operative.

6. RETIREMENT AGE

Management explained that the objective of retirement is to induct new blood in the organization and provide chance of promotion/development to other employees. Further, being a security company, the employee deputed on Cash-in-Transit service / operational duties and other related duties should be active, physically and mentally fit to endure the strain and stress of the job and hence people of advance age will have to be replace by young blood.

However, company has agreed the demand of union to fix retirement age at 60 years. All workers shall retire service of company on attaining the age of superannuation.

It is also agreed that:

I. The management shall have right to verify the age of an employee in any manner it considers best.

II. The management shall have the right retire any employee earlier than the age stipulated above, on medical grounds after obtaining opinion from doctor/medical board.

III.An employee may also request for early retirement 2 years before attaining age retirement. The management may use its discretion on such requests on case to case basis. This provision will not be applicable to employees against whom disciplinary proceedings are in progress.

It is further agreed that since the superannuation age for retirement has been fixed herein above, however, based on the nature of the job in general, the management may consider extension in service of the deserving employees in each category as follows:

7(A). PAPL Guarding Staff/Operational Staff

One-year maximum 05 years extension may be considered by the management subject to good discipline and medical/work fitness and past performance of the employee. The committee consisting on Director Finance/G.M operations, Senior Manager P&A and Departmental Head will decide such cases.

7 (B). Permanent Office Staff

One-year to 05 years extension in retirement may be considered by the Management.

8. LOANS

Management is of the view that loans put the workmen in financial problem and its repayment puts them to hardship, hence taking loans are to be discouraged. C.B.A Union agreed with the view of the management but stressed that at the time applying for loan, the Management should consider the genuine requests. Therefore, it is agreed that the Management will take some provision for loans to be granted after strict scrutiny of the cases. The criteria to be kept in view will be:

a. Genuineness of the loan.

b. Length of service of applicant.

c. Repayment capacity of applicant.

d. Proper surety/guarantee of another permanent worker.

The loans may be granted, on the management’s discretion for:

e. Marriage of one daughter

f. Meet medical emergency of self or wife.

g. Enhancement of educational qualification.

9. UNIFORMS/SHOES

It is agreed by the Management that following uniforms will be provided.

a. Guards & Drivers:

• 2 sets of uniforms consisting of a trouser & a shirt per annum.

• One pair of DMS Shoes/Drivers Shoes (to drivers) per annum.

• 2 Vets of cotton per annum.

• 2 pairs Socks per annum.

• Jacket/Jersey to PAPL guarding staff as per requirement.

b. Technical Staff:(EBAS, Control Room)

• Two sets of uniforms per annum.

• One pair of Shoes per annum.

c. Office Peons (Permanent)

• 3 sets of Shirts & Trouser every year.

• One pair of Shoes every alternate year.

• 2 Vests cotton per annum

• 2 pairs of Socks per annum.

10. TA / DA

Management confirmed that TA/DA rules with schedule of rate have already been revised. C.B.A Union is satisfied with the confirmation of the Management and has dropped the demand in this respect.

11. FUNERAL EXPENSE

Management agreed to the following.

a. DEATH ON DUTY

If any guard expires while on duty due to accident or otherwise it will be responsibility of the company to send the dead body to his native place by fastest means. The concerned manager, in such cases, should get the formalities completed and arrange dispatch of the dead body to the native place of the deceased by booking the coffin box through air/ambulance as per the situation.

Since, offices of the Company are operating in almost all the big cities/towns of Pakistan, the office nearer the native place of the deceased shall be informed to receive the dead body and arrange its proper delivery to the family/relatives of the deceased. One of the supervisors/officer of the nearby station may represent the company at time of burial.

It is agreed that a sum of Rs. 10,000/- will be paid to the family of the deceased for meeting funeral and burial expenses.

It is also agreed that Company will pay Rs. 20,000/- to the family of the deceased in case guard is killed by the bullet of the dacoits during performing of duty.

b. DEATH WHILE ON LEAVE/NOT ON DUTY

In case the guard was away on leave from his place of posting and dies, there will no responsibility of the company make any sort of arrangements. If the guard expires within the jurisdiction of his place of posting and no relative or family member is available to take care of the body, company will arrange its dispatch to his native place. The procedure detailed in (a) above to be followed in such cases.

The procedure of dispatch of dead body will also be applicable in case of accidental death of a guard on duty or off duty.

12. EID HOLIDAY ALLOWANCE

It is agreed that company will pay Rs. 500/- per day to CIT, Response Force and EBAS staff who are required to perform duty on 1st and 2nd day of Eid.

13. GENERAL

a. It is agreed that increase in wages/allowance etc. under this settlement is intended to provide relief, to the workmen due to rise in the cost of living and as such the increase in wages allowance etc. agreed to under this settlement is liable to be set off against any statutory increase which the government may grant to the workmen under any head, name, nomenclature whatsoever during and beyond the operation of this settlement subject to the manner as may be specified by the Government in the Statue or Ordinance.

b. It is agreed that this settlement is in fill and final settlement of all disputes, demands and claims of the Union/Workmen contained in the Charter of Demands dated January 2, 2013.

c. It is agreed that during the tenure of this settlement the Union shall improve efficiency, discipline and attendance of the workmen and shall keep and promote industrial peace harmony and shall fully cooperate with the Company in its efforts to increase efficiency and productivity and to achieve quality and economy. The union assures their full support and cooperation to meet the qualitative and quantitative production norms and standards as laid down by the company from time to time. The union also undertakes to cooperate with the management in the business and efficiency improvement schemes as and when introduced.

d.In consideration of the benefits to the workmen under this settlement, the union undertakes that it will not raise or pursue any demand whatsoever, directly or indirectly involving financial implications upon the company during the pendency of this settlement.

e. It has been agreed between the parties that this settlement shall become effective and comes into operation w.e.f. January 1, 2013 and shall be binding on the parties and remains in full force for a period of two-years up to December 31, 2014 and shall continue be binding on the parties above named until either party terminates the settlement thereafter as per the previsions provided in the law.

IN WITNESSETH WHEREOF the parties as aforesaid have signed hereunder at Islamabad on January 23, 2013.

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PAK Phoenix Armour (Pvt.) Ltd - 2013

Start date: → 2013-01-01
End date: → 2014-12-31
Ratified by: → Other
Ratified on: → 2013-01-23
Name industry: → Security, cleaning, homework
Name industry: → Security staff employed by private households
Public/private sector: → In the private sector
Concluded by:
Name company: →  Phoenix Armour (Pvt.) Ltd
Names trade unions: →  None

EMPLOYMENT CONTRACTS

Trial period duration: → 90 days
Part-time workers excluded from any provision: → No
Provisions about temporary workers: → No
Apprentices excluded from any provision: → No
Minijobs/student jobs excluded from any provision: → No

WAGES

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

Wage increase

Wage increase: → PKR 1500.0

Once only extra payment

Once only extra payment due to company performance: → Yes

Meal vouchers

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