Oil and Gas Development Company withdraws controversial pay-raise

Company orders employees to return extra income received.

ISLAMABAD:

The board of directors of the Oil and Gas Development Company Limited (OGDCL) has reversed its decision to increase the salary of contractual employees by 40%.

Earlier, on February 20 2013, the board of directors of OGDCL had raised the salary of contractual employees, which had given birth to controversy as these employees were appointed on set terms and conditions and could not get raise in salary like regular employees. In addition to this, the appointment of many contractual employees by the previous government was deemed questionable by the present government, and was being probed.

Sources maintained that the Ministry of Petroleum had directed OGDCL to submit details of these employees.

Documents revealed that the OGDCL board, in its meeting held on August 6, 2013, reversed the decision and resolved that the pay raise allowed by the board resolution passed on February 20,2013 stands withdrawn to the extent of contractual officers with effect from January 1,2013.The board further resolved that the enhanced salary received by the contractual officers will be recovered.

Following this decision, sources said that contractual officers had returned million of rupees to the company which they had received through raise in salary. A spokesman for OGDCL confirmed the board’s decision.

The initial decision resulted in bloated salaries for many employees under the previous management of OGDCL.

Executive Director (ED) Human Resource, who was appointed on a salary of Rs0.8 million per month on a three year contract, in June 2009, saw his salary reach Rs1.94 million per month after the 40% raise, including a 10% annual increment, 10% utility allowance and house rent at 45% of basic pay, in violation of the service contract.

Another official of the company, Col (R) Shafqat Hussain who was appointed on contract for two years at salary package of Rs250,000 per month, saw his salary rise to Rs958,164 per month.

General Manager (GM) Audit OGDCL, who was appointed at salary package of Rs450,000, saw his salary raise to Rs941,563 per month, while Head of Human Resources, appointed at package of Rs80,000 per month, saw his salary increase to Rs544,236 per month.

Published in The Express Tribune, August 30^th, 2013.

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