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

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

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

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

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

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)

16. UNIFORM

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