(July 2011 to June 2012) – Part 2 of 2 Pakistan: Karachi Electric Supply Co
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Annual Environment & Social Monitoring Report (July 2011 to June 2012) – Part 2 of 2 Environmental and Social Performance Report November 2012 Pakistan: Karachi Electric Supply Company Post Privatization Rehabilitation, Upgrade and Expansion Prepared by Karachi Electric Supply Company Karachi, Pakistan The Environmental and Social Performance Report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “Terms of Use” section of this website. ASIAN DEVELOPMENT BANK QUERIES KESC 2013 KESC RESPONSE AGAINST ANNUAL MONITORING REPORT 2011-12 AUGUST - 2013 KESC authorized representative to be contacted on the AMR: Name : Chander Perkash Title : General Manager (Corporate Compliance) Tel : +9221-32647048 Cell : +92300- 2910106 Email : [email protected] ADDRESS: 12th Floor, Technology Park Shahra-e-Faisal, Karachi - Pakistan. Phone: +9221-32647048 Page Section Description/Title Comments / Remarks KESC response No. No. of Section 20 3.2.2 On public Please provide (i) schedule As a part of SEIA, area stakeholder consultation of consultations with are consulted and a general public various stakeholders, (ii) hearing which is open for all is summary of issues raised by organized before each project to respective stakeholder ensure maximum input from public. groups, and (iii) how these issues were resolved. Does the "open door" policy Whistle Blower Policy is in place for for community consultation both internal and External refer to KESC's grievance stakeholders. mechanism? Who or what unit can an aggrieved party AZM Speakup – Whistle Blower approach? Where is this Policy: person or unit located? Please discuss what Communication Platforms through a issues/complaints were dedicated helpline number, email raised, and how these issues address and text messaging option is were resolved. established. External customers can also write to us on our very active social media platforms of twitter and face book. The messages are received by our customer services department and passed on, if need be to the highest management authority. Direct Community relationships are also established by our stakeholder management teams under the sustainability management department. They work along with the operational team to resolve problems. A separate helpline and customer care contact is established for industrial customers. 21 3.2.3 Social and Please provide ADB a copy Attached as Appendix “H” (2nd Community of the Multi-Stakeholder paragr Engagements Engagement Strategy. aph) 34 3.2.7 Social Media and Please discuss the content Final VSS (as distinct to VSS offered Assets Branding of the VSS scheme. on 31st Dec.2010) was offered to Non Core employees on 29th June Was the VSS scheme 2011 and remained in force upto discussed with and found 10th Feb. 2012. acceptable by the labor union? During discussions, It provided the following benefits: what were the concerns raised and agreements 1. Ex Gratia payment of one reached? What are the Basic Pay for every month of remaining issues with the remaining service subject to union, if any? a maximum of 85, 2. Encashment of Earn/Privilege Leave Balance 3. Provident Fund as per Company Rules 4. Gratuity as per entitlement 5. Upfront Payment of post retirement Medical facility@ 7.5 Basic Pay 6. Upfront payment of cash equal to 5 years post retirement. electricity benefits 7. Salary for illegal absences during period of illegal strikes 8. Total pay out of FVSS to be 5-15% higher than that of VSS offered on 31 December 2010. (The Minimum total FVSS Pay out:: :Not less than Rs.721,000/= disregard of length of service) The following formal Meetings were held with Unions: 1. Two meetings were held with the then CBA, namely Labour Union on 23 May and 25th May 2011. Subsequently on 3rd June 2011 Supreme Court announced its Landmark decision declaring that NIRC had not any jurisdiction over the organizations incorporated and operating in provinces. As a consequence all the unions registered with NIRC became defunct and lost their status as CBA. We issued an Administrator Circular to the effect on 10th June 2011, which was challenged by the defunct Labour Union in the High Court and still holds, as it has not been set aside by the Sindh High Court. 2.. After the loss CBA status by LU, Management invited all the defunct Unions, i.e. KESUTY Union, Labour Union and Peoples Workers Union, who had come together on the platform of Mazdoor Etihad. Two meetings were held with them on 17 June and 23 June to discuss the issue of surplus noncore staff but due to intransigence of the activists of defunct LU no agreement could be reached with the defunct Unions. But these meetings brought forth the differences among them and KESUTY Union parted its way from Mazdoor Etihad and publically criticized former CBA for its intransience and non compromising attitude. Consequently the Management has to unilaterally announce the above FVSS on 29 June 2011. The Union Leaders in their above meetings raised the following points. 1. Policy of outsourcing be reversed and all noncore staff be taken back on their jobs. 2. All those dismissed/ terminated for violent misconduct, unauthorized absence during illegal strikes or dismissed on theft charges after domestic inquiry be reinstated with back benefits. 3. Those who absented from work to participate in illegal strike be paid salary for the period of unauthorized absence. On 26thJuly In Governor House Government officials held separate meetings with the Management and leaders of the defunct Unions and the following agreement was executed; 1. Post FVSS retrenchment deferred. 2. Dispute Resolution Committee of representatives of Administration, KESC Management, and defunct Unions be formed within one week to address disputed matters. No agreement could not take place on the formation of the Dispute Resolution Committee due to uncompromising behaviour of defunct Labour Union. 35 3.2.7 In what context did KESC 1. There were numerous employees suffer during the incidents of physical assault protests? Were they on the teams attending harassed by the labor customers complaints. union? But are they Contingents of armed worker members of the union? rode on motor bikes and resorted to violence against the team of workers carrying on repairs and maintenance in the different parts of the city. Team of workers were fired at and harassed and threatened for life. 2. Employees were forced to close complaint centres/offices. 3. The officers were encircled and besieged employees were released by the Law enforcement agencies. 4. Dispatch of PMTs and other materials from Central Stores to different locations was forcibly stopped to ensure that customers were not attended and rectified in time. There were armed attacks at offices and there were incidents of encounter with police which has come to the rescue of besieged offices/employees. 40 3.3 Major Challenges With the reported five (5) Measures to prevent reoccurrences and Issues for the fatal accidents, please are attached as APPENDIX – “B” Company discuss: Notable measures include (i) what measures were put in Development of SOP for place to avoid or Line Isolation minimize these Improvement in accidents? competence level through (ii) what is KESC's training and awareness human resource Increased safety inspections policy regarding Enhancement of reward for workers' compliance of SOPs and involved in fatal Strictness of reprimands accidents? Does against non-adherence of KESC provide SOPs. life/health insurance to its The legal heirs of those who die in workers? What fatal accidents are provided the assistance or following special benefits; compensation did KESC Insurance: Rs200,000= provide to the Special workers (and Compensation/Insurance: Rs their families) 300,000/= involved in these accidents? Funeral expenses: Rs.20,000/= Post funeral expenses: Rs. 50,000/= Widow’s Grant: Rs. 20,000/= Saleeka Sewing Machine for widow. In addition the heirs also are paid/allowed their following normal benefits: Gratuity Provident Balance Encashment of Leave Balance Besides the children of deceased get medical benefit till the age of 25. Widow medical for 5 years. Medical for children upto age of 25 40 3.3 The section discusses the It covers the total of news items negative media coverage of relating to KESC. The 764 news the project totaling to 764 items may include the items news items. Please clarify if published relating to labor disputes this monitoring of news between unions and KESC. items includes those of the labor disputes between the 231 Nos. were related to the load union and KESC, covered by shedding and power break down national/local newspapers? issues, 180 were views of the public office holders, political parties, business and industry leaders, 141 were letters to the editors focusing KESC’s business operations and 212 news items were KESC point of views and clarifications. 41 4.0 Compliance with The table indicates The status of compliance to Action Action Plan “Compliance with Action Plan is updated for the period June Plan (Revised: October 02, 2013. APPENDIX “C”. (Revised: 2009). Is there a more October 02, updated table for the 2009) reporting period (July 2011 – June 2012). 44 4.0 Compliance with Why is the Bin Qasim Initial feasibility was conducted for Action Plan Capacity Enhancement 575 MW, when design commenced (Item Project indicated as and specifications were drawn it 8) (Revised: 575MW? Shouldn’t this be became as 560 MW. At ISO October 02, 560MW? conditions its 572 MW gross. 2009) 46 5.1.1 HSE Please provide annual data Organization, from 2007–2012 of KESC's Total Budget and human resources/staff Year Male Female Reporting Line (male:female:total). Headcount 30 Jun 17494 348 17,842 Please discuss any 2007 significant reductions in 30 staff or employment of new Jun 17,278 351 17,629 staff.