Employees stakeholder and corporations Introduction

A stakeholder is any individual or organization that is affected by the activities of a business. They may have a direct or indirect interest in the business, and may be in contact with the business on a daily basis, or may just occasionally. The main stakeholders are:  Shareholders (not for a sole trader or partnership though) they will be interested in their Dividends and capital growth of their shares.  Management and employees they may also be shareholders they will be interested in their job security prospects and pays.

 Customers and suppliers.  Banks and other financial organizations lending money to the business.  Government especially the Inland Revenue and the Customs and Excise who will be Collecting tax from them.  Trade Unions who will represent the interests of the workers?  Pressure Groups who are interested in whether the business is acting appropriately towards their area of interest.

But our main focus is on employees stakeholders and to observe how a specific organization is going to satisfy their interest.

Classifying Employees as a stakeholder

Employees are important stakeholder in any firm. Few stakeholders are as important as its workers. A world wide company has to invest a lot to satisfy its workers interest. Staff has a big interest in the success of the company. They contribute to the firms in fundamental ways. However employees actually constitute the firm. They are in many cases the important factor or resource of the firm. Employees are greatly affected by the success or failure of the firm, having an investment of experience and specialized skills, accrued resources and personal relationships and are dependent upon their employers success through income or equity. From the organizations perspective employees have significant influence on the firm and as such high power related to other stakeholders. Despite holding stakeholder attribute of high power and high legitimacy employees are not assured of fair treatment by their employers. So by keeping in mind employees value as an important stakeholder we are going to focus on following important points.

Employees safety and health issues

 Whether Employees at the field work ensure safety conditions or not?  Supervisors role in safety  Whether there exists any sort of safety act or not?  What are the other problems faced by employees of field work?  Whether engineers provide proper guidance or not?  To what extent employees exploitation exists mainly we will discuss work over load

Employees training and development

 Are they trained regularly?  What kind of training and development procedures they have employed?  What are long term impacts of these training?

Pay plans, allowances and service benefits

 Basic factors of pay rates whether pay rates are determined on seniority level or their skills are given importance.  How the pay rates are distributed distributive justice is mainly concerned  Different benefits in addition to pay rates  No of working hours and limit of over time hours

Ethics, fair treatment and justice

 What determines the ethical behavior at work  Role of employer, employees, organizational culture and company  Whether distributive, procedural and interactional justice exists there  How managers use personnel methods to promote ethics and fair treatment  Whether employees discipline and privacy is maintained or not  How they manage dismissals whether they adopt a proper procedure or not

Labor unions
Lastly we will discuss about the  existence of labor unions and their related laws  union elections and how often they are held  Whether labor unions work in the best interest of employees or not? For this purpose we have chosen SUI NORTHEREN GAS PIPELINES LIMITED

Introduction of company
The Sui Northern Gas Pipelines Limited (SNGPL) is the largest integrated natural gas company in North & Central Pakistan through an extensive network in Punjab and Khyber-Pakhtunkhwa. SNGPL was incorporated as a private limited Company in 1963 and converted into a public limited company in January 1964, and is listed on all the three Stock Exchanges of Pakistan. The Company has over 42 years of experience in operation and maintenance of high-pressure gas transmission and gas distribution systems. It has also expanded its activities to undertake the planning, designing and construction of pipelines, both for itself and other organizations. SNGPL transmission system extends from Sui in Baluchistan to Peshawar in KhyberPakhtunkhwa. Most of the gas produced at Sui is provided to other provinces. Though significant royalties are paid for these resources, some local politicians accuse the rest of the country of exploiting the Sui region.

Vision...
To be the leading integrated natural gas provider in the Region seeking to improve the quality of life of our Customers and achieve maximum benefit for our Stakeholders by providing an uninterrupted and Environment friendly energy resource

Strategic Objectives...

Sui Northern Gas Pipelines Limited is committed to: Provide quality customer service. Delivering clean, efficient and reliable gas delivery.
4

 Maintaining healthy and safe working environment. Ensuring fair return to shareholders. Optimizing the use of companys resources. Implementation of quality management services.

Corporate Governance
We will ensure that effective systems are in place to manage and monitor compliance with this policy and take remedial action whenever we fall short of our commitment. A CSR Committee having the following composition will review and approve strategic plans, assess progress and offer guidance about emerging CSR issues of importance.

Managing Director

Director

Deputy

Managing

Chairman

ii iii iv v vi vii

Senior General Manager (CP & D) Senior General Manager (HR) Chief Financial Officer Senior General Manager (CA & CC) / CS General Manager (LS) Chief Engineer (HSE)

Coordinator Member member Member Member Member / Secretary

CSR Committee will periodically evaluate and approve the projects recommended the regional CSR cells headed by each Regional In-charge duly assisted by his team. The CSR Committee
5

will ensure: that projects are within the area of SNGPLs operation. However, being a national Company, SNGPL may extend its support regardless of geographical locations for special projects of national importance. That SNGPL cooperates with and/or associates with NGOs and Community Based Organizations (CBOs) working in a financially transparent manner i.e. maintaining properly audited accounts and operations on non-profit basis and having credibility and reputation in the public sector. That priority is given to under-privileged areas and segments of society, institution and projects which generally do not have easy access to other sources of funds. That NGOs/CBOs and institutions having political / ethnic affiliation are not supported. That special funds are got approved from the Board of Directors each year for implementation the CSR policy.

Core values

Commitment
We are committed - to our vision, mission and to creating and delivering stakeholder value.

Courtesy
We are courteous - with our customers, stakeholders, and towards each other and encourage open communication.

Competence
We are competent - and strive to continuously develop and improve our skills and business practices.

Responsibility
We are responsible - as individuals and as teams - for our work and our actions. We welcome scrutiny, and we hold ourselves accountable.

Integrity
We have integrity - as individuals and as teams - our decisions are characterized by honesty and fairness.

Business Strategy

 Maximize sale of gas by entering into new areas through development /expansion of requisite infrastructure.  Focus on country's economic revival by outreaching industries for gas supply.  Displace imported liquid fuels to save foreign exchange.  Introduce policies and practices leading the Company from monopoly to competitive market thus facilitating privatization.  Endeavor to reduce Un-accounted for Gas (UFG) Loss.  Improvement in quality service to customer satisfaction.  Emphasis on Human Resource Development (HRD) for quality workmanship.  Create awareness and enforce adherence to Health, Safety and Environment (HSE) policy / standards.  Improve financial discipline through prudent investment / borrowing.  Improve internal controls / Risk Management to achieve maximum operational efficiency of system.

Health, Safety and environment

Sui Northern Gas Pipelines Limited will ensure that y y y y The health of its employees, its consumers and its contractors is protected. All its activities are carried out safely. Environmental performance meets legislative requirements(factories act 1934) There is continuous improvement in HSE performance.

To implement HSE Policy, Sui Northern Gas Pipelines Limited will y y Comply with relevant laws and regulations. Ensure that required Health, Safety and Environment Organization, Standards and Procedures are developed and established. y Ensure that all its activities are carried out in accordance with relevant international Standards and Company's Health, Safety and Environment Standards and Procedures. y Set demanding targets and measure progress to ensure continuous improvement in Health, Safety and Environmental performance. y Require every employee to exercise personal responsibility in preventing harm to themselves, to others and to the environment. y Provide appropriate Health, Safety and Environment training / information to all employees, contractors and consumers. y Ensure provision of safe working environment in order to protect the employees from occupational illness and accidents. y Promote awareness and give due recognition to performance in the area of Health, Safety and Environment.

General safety
 Employees must know and observe all safety rules applicable to their work.  All unsafe conditions must be reported at the earliest.  Employees must be properly clothed while at work.  Employees should observe all regulatory signs at all the times.  Employees should use proper tools requires for the job.  Equipment must not be operated unless all guards are in place.  Only authorized personnel may operate plant equipment.

House keeping, fire prevention and control

 Good house keeping must be maintained all the time.  Each employee must clean up his job area at the end of the day or when the job is completed.  Materials must not be placed where it will obstruct doors, aisles, passageways, o Stairs, plate forms, ladders and firefighting equipments.  Materials should not be left where it will create tripping hazard.  Clean up any spills promptly.  Fire fighting equipment must not be moved from designated location unless there is any emergency.  Know the locations of extinguishing equipment and know how to use it effectively.  Know your specific duties as per fighting procedures.  All the times know the exact locations of exits by which you can leave an area.  Switch off engines and engine driven equipment when refueling vehicles.

Electrical safety
 Only authorized and qualified personnel are permitted to perform work of an electrical nature.  As far as practical electricians should avoid working on electric equipment which is energized.  Before the start of an electrical job the circuit breaker or isolating device should be switched off and lagged.  Live circuits should be handled carefully despite presence of protective insulation.  The authorized employees performing electrical work should use rubber gloves and have their sleeves rolled down.  Electrical equipment, stationery or portable. Must be properly grounded.  Sub stations should be kept clean and free of dirt and moisture.

Compressed air/ cylinders

 Do not use compressed air for nay purpose other for which it is intended.  Do not clean machines and work benches with compressed air, use a brush or vacuum cleaner.  Make sure that your compressed air tools, hoses and fittings are working properly. If not report the fault to your in charge.  Do not leave hoses lying around of others to trip over.  All cylinders should be labeled properly.  Cylinders shall never be moved without first removing the regulator.  Caps shall always be put on cylinders when the cylinders are not in use or are being transported.  Oxygen cylinders should be handled properly.

Powered tools
 Check cords of mechanical damages prior to use.  Keep both the number and length of extension cords to a minimum.
10

 Do not lay cords across aisles and travelling areas since it create tripping hazards  Keep cords away from heat and chemicals. Damaged cords are no long water resistant.  Electric hand tools which are not explosion proof should never be used in an explosive environment.  Goggles or face should be worn when using electric hand tools.  Before using the tools must be checked for any defects and returned if any found defective.  Only skilled technicians are allowed to renew grinding wheels.  Maximum speed of a grinder should not be exceeded, wherever specified.  While using jack hammer make sure the chisel used is properly secured.

Welding safety
 Welder should ensure that his working area is not wet.  Welder must be wearing proper clothing.  Welding near flammable or combustible material should be avoided. Any flying sparks and hot slag should be contained.  Fire extinguisher must be kept close by for any eventuality.  Ensure that cables and connections are in good condition and firmly attached.  Do not use gas cylinders as work supports. Do not let gas cylinder be exposed to heat.  Open cylinder valves slowly and close valves when gas is not being used.  Make sure that welding equipment bench or work piece are properly earthed particularly when two or more welding machines are connected to the same structure.  When grinding, chipping or inspecting a hot weld, protective glasses must be worn.

Driving safety
 At the beginning of the day driver should check following y y y
11

Fuel Water Engine oil which should be maintained at maximum level.

y y y y

Checks made to see that there are no loose parts or abnormal noises. Brakes and steering: to see that these are in working order. Tires to examine for cuts, flints and incorrect tire pressure Lights, traffic indicators, wind screens and wipers to be in working order.

 No vehicle should be used on public high ways unless The driver is in possession of a valid driving license The vehicle is licensed to use on public high ways.

y y

 All road signs should be observed and rules should be followed.  Drivers and passengers must wear seat belts.  Overtaking should not be done at crossed roads, corners or other dangerous points.  While carrying a load wider then the vehicle, the driver should be accompanied by another person and the protruding ends of load should be adequately marked.

Ladders  Ladders must be used to carry out simple operations  Ladders should not be used as a replacement of scaffolding.  Ladders must be inspected by the user for defects prior to use.  A straight ladder must be placed with its feet approximately of the height where the
ladder is supported.

 When working from ladders, these shall be placed so that the work is safely within reach.  Ladders must not be placed in front of doors, in passageways, or in the vicinity of
vehicular traffic unless appropriate barriers and/ or warning signs are erected.

 Metal ladders shall not be used inside electrical sub-stations, enclosures or anywhere
where electrical contact could be made.

 Ladders should never be painted as this may hide defects.

12

Hoisting and rigging  Hoisting and rigging equipment must be checked for any defects.  All power driven hoist must be operated by qualified personnel.  Power hoist must be properly installed and anchored to prevent movement when
operating.  All personnel must stay clear of loads and no one should be beneath the load or broom  Standard hand signals must be used when directing hoisting operations.

Heavy mobile equipment

 The driver must possess a valid driving license.  Loads must be secured while being transported.  When a truck is being unloaded all occupants must dismount from the truck.  Riding on crane blocks or crane loads is prohibited.  Cranes with long booms must be secured against high winds.  Drivers must check wire ropes daily.  Safety switches should not be bypassed.  Controls of the crane should be tested for proper working  Machine load rate should never be exceeded  Do not use hoist line across the load, always use certified wire slings  Vehicles must not be backed until the operator has checked to see if the way is clear.  Before doing any work under the vehicle, it must be properly blocked.  Forklift operators should ensure that y y y Loads are not in raised position during travel. Load does not obstruct his vision. Horn is used frequently at corners/bends

13

Office safety  A high standard of good house keeping should be maintained.  Office floors and stair ways should be kept dry and free from tripping hazards.  Drawers of office desks should not be left opened after use.  Filing cabinets should be located so that the drawers do not open outwards into aisles.  Telephone wires and cables should not cause tripping hazards.  Electrically powered machines must be properly installed. Electric cords and plugs
should be examined regularly.

 Repairs to office machines must not by unauthorized personnel.  Damaged furniture should be repaired immediately.  Know what to do in case of fire.  Know your building evacuation plan.  The office should be adequately lighted including all stair ways, corridors etc.  Avoid use of pins for fastening papers. Use paper clips staples.  Employees should not walk about carrying pens, pencil knives or scissors with points
exposed.  Heavy objects should not be placed at the top of almirahs or either high shelves.

Personal protective measures  Employees should wear prescribed protective equipment in the designated areas.  Employees should ensure that the personal protective equipment is kept in neat and clean
condition.

 Any damage to personal protective equipment should be brought to the attention of the
supervisor.

 Employees who are issued uniforms by the company should wear them while on duty.  Employees who are issued safety shoes by the company should wear them while on the
duty.

14

 Contract employees should also wear all specified personal protective equipment in the
designated areas.

Others
 Handling of a pyrophoric dust, which is encountered at different stages of pipelines operations, should be handled in a very careful manner to avoid auto ignition in atmosphere.  Employees should familiarize themselves with the proper technique of lifting and carrying objects.Employees should not attempt to move furniture or lift other heavy objects which are beyond their strength.

Training and development Training

Training started at all level. And due to computerized management systems they started different types of trainings which includes training of performance management. Total quality management and operations management. Usually training occurs once in a year.

Institute
The training institute of Sui northern gas pipelines limited (SNGPL) is in LAHORE Custom Training Projects
y

Pipeline hydraulics and system planning training project, Sui Northern Gas Pipeline and Sui Southern Gas Company, Lahore and Karachi, Pakistan (CIDA Oil and Gas Sector Programmed)

15

Methods of training
SNGPL used various methods and techniques for training its employees and these are:  On job training  In house training  Off job training  Induction training On job training: In on job training the employees are rotated into various departments to coin the skills and learn the methodologies used in the organization. SNGPL is gas transmission and Distribution Company so it has very wide operations and procedures which must be learned and practiced by the employees. In house training: SNGPL provides in house training to its employees. Company has its own training institute named as SNGTI (Sui Northern Gas Training Institute). Here the company invites external speakers and trainers time and again to train their employees. Besides company has its own training staff too. This training institute provides training to the employees according to the requirements of the job and the upcoming projects. More over it gives training not only for technical but for the soft skills as well. Induction training: Induction training is important as it enables a new recruit to become productive as quickly as possible. It can avoid costly mistakes by recruits not knowing the procedures or techniques of their new jobs. The length of induction training varies from job to job and depends on the complexity of the job. In SNGPL following areas are included in induction training: y y
16

Learning about the duties of the job Learning the values and aims of the business

Learning about the internal workings and policies of the business

Off job training: Company also provides off job training to its employees in special circumstances. When there is a project and a specialized skill is required in gas pressure checking or pipe installation under a river or some canal in these cases if company required expertise so it mostly send its employees for training purposes abroad or sometimes ask the foreign company to send trainers to train their employees.

DEVELOPMENT
Employee development is a joint, on-going effort on the part of an employee and the organization for which he or she works to upgrade the employee's knowledge, skills, and abilities.

Stages of Employee Development: y Everyone goes through several stages of development as they move from being a career "beginner" to a full expert in their field. Each stage has specific needs and tasks to consider y As you work with employees on development, it can be helpful to look at their stage in order to find the best kind of activities for them. If an employee has recently completed a career change, he or she is probably in the "exploration and trial" stage.

17

Stages in employee development

Executive development program is mandatory at grade -3.GRADE 4 had to get training for the gas control in overview of company and they are also trained for leadership skills. Senior management has provided with outdoor training and external trainers are arranged for workshops in SNGDI.
Stage Characteristics Needs Tasks

Exploration Trial

Work with regular Learn to ask for help Develop self-image guidance Learn to take in the job and Work is routine, initiative detailed Build a reputation Learn to work independently Produce significant results Accept organizational realities Learn how to cope Deal with change or lack of it Learn how to get ahead

Has own area of responsibility Work independently and Establishment and Independence specialization Advancement

Responsible for others Mid Career: guiding Growth, Use great breadth of Maintenance, technical skill to Decline support organization

Feel disappointment Develop others if goals are not through knowledge achieved Serve as mentor Learn to help others

Disengagement

Use experience to Prepare Learn to let go provide direction for psychologically for the organization retirement Achieve balance in Learn to accept a life Influence decisions different role

18

Development department in SNGPL

y y Welding team Meter installation team

Welding team performs

y y y Welding Coat warping Soap test

Meter installation team performs

y y Online meter installation Common meter installation

Pay plans, allowances and service benefits

In sui northern gas pipeline limited (SNGPL) there are two statutory notifications under which according to which pay plans and service benefits are offered 1. The gazette of Pakistan, Islamabad, Monday, November 1, 1976 2. SNGPL settlement on October 5, 2009 (this settlement is revised regularly)

Classification of workers
Workers are classified as: Permanent  Probationers  Badlis  Temporary  Apprentices
19

Permanent
A permanent worker is a workman who has been engaged on work of permanent nature likely to last more than nine months and has completed a period of three months probation.

Probationers
It is a worker who is provisionally employed to fill a permanent vacancy ina post and has not completed three months service therein. If a permanent employee is employed as a

probationer in a higher post he may, at any time during the probationary period of three months be revised to his old post

Badlis
A worker who is appointed in the post of a permanent/ temporary workman or probationer, who is temporarily absent.

Temporary
A worker who ha been engaged for work which is of an essentially temporary nature likely to be finished within a period not exceeding nine months.

Apprentices
An apprentice means a person undergoing training through the system of apprenticeship.

Payment of wages
y All wages due to an employee shall be paid on a pay day to be notified through information posted at the notice board y In case of termination of service the wages earned by the employees shall be paid within 2 working days of the termination.

20

Unclaimed wages
Any wages due but not paid will be notified under rule 7 sub rule (e), shall be paid on an application to account officer.

Advances against wages

This is no allowed usually except in following circumstances y y Up to a maximum one months wages on religious or festival holidays For each completed calendar month of leave period to persons proceeding on privilege leave.

Deduction of income tax

Under clause (f and g) there is deduction of certain percentage of salary for y y y Provident fund Relief funds Income tax payable

Increase in basic pay

It is agreed in principle settlement (from July 1, 2007 to june30, 2009) that basic pay will increase in the following manners y y By 8% from 1.7.2007 By another 20% from 1.7.2008

Increase in wages It is promised that the wage will increase with the certain percentage annually. Pay scale and rate of increase for each grade is given in following table

21

Revised pay scale

Grades Existing pay scale 1 2 3 4 5 6 7 1387*106-19178108-3645 14968110-20468112-3950 1612*12-2172*115-40 12-G*115-4932 Revised pay scale 1491*126-2121*128-4169 1632*130-2282*132-4526 1737*132-2397*135-4557-G*135-5637

1749*120-2349*125-3849-G*125-4849 1849*145-2574*150-4374-G*150-5574 2215*160-3175*165-5155-G*165-6640 2435*185-3545*190-6015-3.25%-7523 3320*165-4145*170-5845-G*170-7545 35308190-4480*195-6040-3.25%-7801 4117*180-5557*185-6482-G*185-9257 4407*205-6457-3.25%-8892

Employees categorization according to grades

There are seven grades. The pay scale varies as grade changed, there is following distribution of employees according to each grade Grade 1 Asstt. Printer Cook Peon Mali Tea boy Sweeper

22

Grade 2 Bearer Driver Patwari Helper Grade 3 Denter Electrician Mason Pipe fitter Painter Plumber Plant operator Tracer Grade 4 Auto electrician Engine fitter Draftsman Gas control computist Imam Masjid

23

Record keeper Typist Station operator Telecom technician Grade 5 Boiler attendant Meter reader Compressor operator Welder Grade 6 Chart reader Row supervisor Stenographer Punch card operator Sales representative Grade 7 Radio controller Supervisor Bridge Head draftsman Supervisor Sales

24

Inspector Supervisor Instruments Senior stenographers Supervisor distribution Supervisor engine/plant Boiler attendant Instrument mechanic Meter mechanic Overseer

Allowances and service benefits Uniforms

In view of companys resolve for strict compliance of health, safety and environment requirements and also to ensure proper image of the company through employees having a direct interface with the public/consumers, the pattern, design and the type of uniform/protective clothing will be strictly in accordance with the requirement/ recommendations formulated by higher consultants/ specialists as adopted by the management.

Leave/holidays
Leave is not a right but a privilege and requests are considered and met with due regards for service requirements. But there are two basic requirements y y
25

Combination of two kinds of leave is not allowed except sick leave. Permission for leave must be obtained in writing in advance.

Female leaves
A female Muslim worker in case of becoming widow shall be allowed 60 days leave with pay during her Iddat period. Any leave in excess of this period is without pay.

Leave fare assistance

In full and final settlement of this demand, it is agreed that the present rate of leave fare assistance (L.F.A) will be as follow

Revised Leave fare assistance schedule

Grades 1 to 3 4 5 to 6 7 Existing (Rs) 4200 4300 4800 4900 Revised (Rs) 4940 5240 5940 6340

Medical
The company provides medical treatment to its employees and his family members through the services of registered medical practitioners appointed as company doctors. When the medical officer considers a person to be fit for duty though he may have prescribed medicines for him he must continue to attend the work.

Insurance scheme
Life of every employee is insured against death and injury for the duration of his employment with the company. The premium for insurance is paid by company which is deducted from their salary.

26

Workmens compensation
An employee receiving injury from an accident arising out of and in the course of his employment is entitled to compensate in accordance with the provisions of Workmens compensation act (1923). The disability caused by injury will be assessed by the company doctor or the civil surgeon. The amount of compensation varies for permanent, partial and temporary disablements. Amount of compensation increase with the increase in severity of injury.

Furniture
Following basic furniture must be provided by the company to every employee y y y y Ceiling fan Center table Two easy chairs Stationary items

Housing allowance
House rent allowance is 87%, which shall be computed and paid on basic salary, if that person in not availing the opportunity of house allotted by company.

27

PERFORMA FOR HOUSE ALLOTMENT Allotment of House I-------------------------------------registration no--------------------------------------------------------------------Token no-----------------------------------------------------------have been given permission to occupy quarter no-------------------------- room no----------------------------------free of rent, hereby, undertaken ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Witness 1-----------------------2---------------------Dated---------------------signature of Allottee ----------------------------Registration no-------------

Conveyance allowance
Now it is increased from 34% to 35% of the basic salary

Free gas facility

A permanent worker will be allowed free gas facility at his home town provided their gas network exist in the area where free gas facility is required. Such an employee will however, not be entitled to any other compensation in case of non availability of piped gas facility.

Electricity allowance
It is increased from 13% to 15% of the basic salary.

Entertainment allowance
This allowance is Rs 200 per month since 01.01.2009.
28

Education allowance
Each year total 50 scholarships are given to the eligible childrens of employees. It is only allowed if they are studying in an institution which is duly recognized by the higher education (H.E.C).

Haj
It is agreed that 50 workers shall be allowed to perform Haj annually on expense of company.

Loans
y y Annually 350 loans for house building are issued to employees Motorcycle loans issued are approximately 250 per year.

These loans are returned in installments as per balance months of service left in case of each employee concerned.

Blood relations quota

Union agreement 1985-87 clause 3d provide the guide lines about the quota that a person can appoint one person (son, brother, daughter etc) but they should be from blood relations. In case of death of that person his wife can also be appointed on his behalf.

Pension/gratuity
It is mutually agreed that y y 2.5%authorizeddeduction is allowed on monthly salary to add into this fund 33 years of service shall be counted for calculating it

29

Early retirement
Employees having 20 years service with 55 years age will be eligible to apply for early retirement. Pension/ gratuity are as per rules for actual number of years served by him in the company.

Retirement increment
Employees who retire from service upon superannuation after completing six months in a calendar year i.e. between July1to December 31 will be given one increment as retirement increment. But those who retire between January 1 to June 30 will not be entitled to it.

Benazir stock options

Recently employees has been given stock options in accordance to Benazir program. These stock options are given on the basis of seniority and time spent in the company.

Ethics and CSR in Sui northern gas pipelines

SNGPL being a national Company is committed to honor its policy on ethics and Corporate Social Responsibility. This policy is based on global best practices envisaging management of the business processes by producing an overall positive impact on society and the environment. The laid out objectives are to be achieved by adopting a methodology that drives the conduct of the Companys business leading to commercial success in ways and manner that honor ethical values, people and communities.

SNGPL believes in business that should be both profitable and beneficial to the society improving the quality of life of the communities especially those who are under privileged ensuring harmonious relations with our stakeholders, by working in partnership with the Community, the Government and NGOs through the principles of Sustainable Development.
30

Ethics in Sui northern gas pipelines limited

SNGPL requires its entire staff both executive staff and subordinate employees, the observance Of the highest ethical standards in the conduct of its business activities to minimize the significant risk associated with non compliance. The policy on Business Principles and Ethical Risk is intended to assist SNGPL staff in meeting the standards of professional and personal integrity expected and required of them. SNGPL staff will act with integrity at all times, to protect and safeguard the reputation of the Company. Contravention of this policy will be regarded as misconduct. SNGPL will ensure that, through this policy and through other means of communication, its entire staff is aware of the required standards, rules and regulations. Following are certain specific guidelines in respect of the above.

Conflict of interest
Each staff member has a prime responsibility to the Company and is expected to avoid any activity that could interfere with that responsibility. Staff should not engage in activities or transactions which may give rise to, or which may be seen to be giving rise to conflict between their personal interests and the interest of the Company. Such conflict could arise in a number of ways and a number of situations. The following paragraph outlines some specifically forbidden situations. This list is, however not exhaustive. In case of doubt the advice of the Management should be sought.

SNGPL purchase equipment, material and services for various aspects of its operations. SNGPL staff members are forbidden from holding any financial interest, directly or indirectly in any organization supplying goods or services to the Company.

SNGPL staff should not participate in any external activity that competes, directly or indirectly, with the Company.

SNGPL staff should not engage in any outside business or activity that might interfere with their duties and responsibilities to the Company.

31

No staff member should sell, lease or buy equipment, material or services to or from the Company except when as an employee it may be necessary in the normal course of his/her duties.

Staff members are not permitted to conduct personal business activities on the Company's premises or to use Company facilities for such purpose.

If a staff member has direct interest, indirect interest or family connections, with an external organization that has business dealing with SNGPL, details of such connections and interests should be fully disclosed to the Management.

Staff members should disclose to the Management the details in respect of any relationship(s) with other staff members; and

Staff members shall not perform any act or get involved in any situation that potentially could conflict with the principles outlined above.

Confidentiality
Staff members should not keep or make copies of correspondence, documents, papers and records, list of suppliers or consumers without the consent of the Company. Company's information and records should be kept on Company premises only and unpublished information may be disclosed to external organizations/individuals only on need to know basis. In case of doubt in this regard, the Management's advice should be sought.

Contributions
No contribution shall be made to any organization or to any individual who either holds public office or is a candidate for public office.

Inducement payments
Staffs members should not give or receive payments that are intended to influence a business decision or to compromise independent judgment; nor should any staff member receive money

32

for having given Company business to an outside agency. Payment of any nature to Government officials to induce them to perform their duties is strictly prohibited.

Proper record of funds, assets, receipts and disbursements

All funds, assets, receipts and disbursements should be properly recorded in the books of the Company. In particular, no funds or accounts should be established or maintained for a purpose that is not fully and accurately reflected in the books and records of the Company. Funds and assets received or disbursement should be fully and accurately reflected in the books and the records of the Company. No false or fictitious entries should be made or misleading reports pertaining to the Company or its operations should be issued.

Relationships and dealings with Government officials, media, suppliers, consultants and other parties
SNGPL's relationships and dealings with Government officials, external agencies, parties and individuals should, at all times, be such the SNGPL's integrity and its reputation would not be damaged if details of the relationship or dealings were to become public knowledge.

Environment
To preserve and protect the environment, all SNGPL staff members should; y Design and operate the Company's facilities and processes so as to ensure the trust of adjoining communities. y Promote resource conservations, waste minimization and the minimization of the release of chemicals / gas into the environment. y Provide employees customers, supplies, public authorities and communities with appropriate information for informed decision making; and y Strive continuously to improve environmental awareness and protection.

33

Alcohol, drugs and gambling

The use of alcohol in any form is prohibited on all Company locations / premises. Similarly, the use of drugs, except under medical advice, is prohibited on all Company locations / premises. Any staff member arriving at a work place under the influence of alcohol or drugs will not be permitted to enter the premises and will be liable to disciplinary action. All forms of gambling / betting on the Company's premises are forbidden.

Receiving gifts
No employee shall seek accept or permit himself / herself or any member of his/her family to accept any gift or favor, the receipt of which will place him/her under form of officials obligation to the donor. As part of building relationship with consumers, suppliers, etc. staff members may receive occasional gifts provided that the gift is of nominal value (e.g. pens, Notepads, calendars, diaries, key chains or such promotional material) and the gift is neither intended nor perceived by others to be intended to improperly influence business decision.

Work place harassment

SNGPL staff will maintain an environment that is free from harassment and in which all employees are equally respected. Workplace harassment is defined as any action that creates an intimidating, hostile or offensive work environment. Such actions include, but are not limited to, sexual harassment, disparaging comments based on gender, religion, race or ethnicity.

Regulatory Compliance and Corporate Governance

SNGPL co-operates fully with all governmental and regulatory bodies and is committed to high standards of corporate governance. We comply fully with our obligations under the Listing Rules of the Stock Exchanges of the country.

34

General
y All information and explanations supplied to the auditors must be completed and not misleading. y SNGPL will not knowingly assist in fraudulent activities (e.g. tax evasion, etc.). If one has any reason to believe that fraudulent activities are taking place (whether within the company or by others with whom the Company has business), one must report it to the concerned departmental head immediately. y All the financial transactions will remain within the ambit of Memorandum and Articles of Association of the Company.

Corporate Social Responsibility (CSR) in SNGPL

We pledge to perform our corporate duty, base on following acknowledge principles with dedication, diligence and integrity.

a) Standard of business conduct

We are committed to ensure that all our corporate activities are conducted strictly in accordance with high levels of professional and legal standards as per code of business ethics.

b)Health, Safety and environment

we are committed to provide and strive to maintain clean, healthy & safe working environment by continually conducting public awareness campaigns to promote safe use of natural gas.

c) Community
we are committed to being a responsible corporate citizen by pro-actively supporting the affected

35

communities in the events of national and natural catastrophe. We shall also support national causes pertaining to education

Environment
Safeguarding national heritage safeguarding & public welfare support cultural activities

Focus Areas
We will strive to contribute due share in fulfillment of basic human needs of the deprived and underprivileged by focusing on health care, sport, sanitation and environment etc. Provide assistance for the Promotion of education in Pakistan. Build self reliance through programs aimed at Skill Enhancement and creating income generating opportunities for the under privileged. Conserve National Heritage, indigenous culture and sports. Implementing sound Environment, Health & Safety Management Systems and take proactive approach to address environmental issues like tree plantations, awareness campaigns etc. Provide unbiased donations. Support and uphold the principles contained in the Universal Declaration of Human Rights and the International Labor Organizations fundamental conventions on core labor standards. Provide medical and community aid to alleviate hardship and distress to under privileged.

Labor unions
A labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The labor union, through its leadership, bargains with the employer on behalf of union members and negotiates labor contracts (collective bargaining) with employers. This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safety and policies. The agreements negotiated by the union leaders are binding on the rank and file members and the employer and in some cases on other non-member workers.
36

Union represents the interests of all employees fairly and impartially. The Union may refuse to file or process a grievance for any number of reasons so long as they are valid. The right to speak for all employees in the bargaining unit carries with it the corresponding duty to protect them as well. Fair representation applies to negotiations, the decision to process or not process a grievance and the way in which a grievance is in fact processed, through arbitration.

Responsibilities of union Avoid conflicting interest

Union should avoid representing different and conflicting interest; it is allowed a wide range of reasonableness in fulfilling its responsibilities.

Negotiations
The Union is allowed a wide range of reasonableness in serving the bargaining unit it represents, subject to good faith in the exercise of its judgment. If union is unfair or disregard individual employees fight then it may constitute a breach.

Duty to Investigate
The investigation must be sufficient enough to permit the Union to make a reasoned judgment about the merits of the grievance, rather than an arbitrary choice.

Sexual Harassment
A union should avoid sexual harassment in the workplace

37

Labor unions in SNGPL Ordinance

Labor union is established according to the industrial relation ordinance 2002. There should be proper control between organizations and labor unions.

Groups
Labor unions have two groups: 1. PEER GROUP 2. MAZDOOR ITEHAD GROUP

CBA
Peer group is now called CBA means collective bargaining agent.

Criteria for membership

There is a specific criterion for membership, when the person spends three months in the organization then he apply for the collective bargaining agent. This application is submitted to the general secretary. The one who wins the criteria he become collective bargaining agent and have right to discuss management issues.

Management issues
These issues are related with employees salaries, bonuses, facilities, incentives and retirement. Current issue Current issue which is prevailing in the SUI gas is related to increase in salaries of employees in every two years.

38

SNGPL Union sets 15-day deadline

The SNGPL Employees Union CBA has set 15-day deadline for the government to accept its demands besides arresting the culprits responsible for firing on an employee of the company and announced to carry on strike at 8 to 10am until Nov 25 in all offices from Sui to Peshawar. This was decided in a meeting of the Central Executive Committee of the union at Gulberg office where it was also decided that the union would hold a press conference on Wednesday (today) in this regard. Meanwhile, the SNGPL Employees Union CBA President has claimed that staff of all suboffices of the Lahore region continued to observe pen-down strike with their offices locked from inside all the daylong. After the firing on SNGPL staffer, following a crackdown drive against gas stealing, employees of the Gulberg and Sheikhupura Sui Gas offices, on the call of union, had held protest demonstrations in front of their offices, burnt tyres and chanted slogans against the govt and the alleged gas stealers, who were also stated to have been responsible for the firing. Staff of the all 18 branches of the Lahore region, which include Sheikhupura, Okara, Multan Road and Gulber etc remained on strike, locking their customer care centres from inside whole the day. The SNGPL Acting President Abrar Ahmed said that staff would not observe the strike as the management would try to convince the union and added that this was not the solution of the issue. He further said that culprit was unidentified and as to how they could be arrested. He pointed out the Sui Northern Gas Pipeline Limited has approved an elite force to accompany the staff who will crackdown the CNG stations to check gas stealing in view of guarding them all over Punjab and NWFP.

39

SWOT analysis
Basically Sui northern gas is monopolist in the market so according to the employee of SNGPL MR. Mirza Nadeem Baig it is not possible to do the SWOT analysis which refers to the strengths, weaknesses, opportunities and threats of the organization. It is not possible because weakness of the competitors become the strengths of the other company and threats of competitors become the opportunities of the other company so by keeping in mind this definition of SWOT analysis we conclude that it would be just a formality if we mention it by our own observation.

Conclusion
After observing all the situations regarding employees stakeholder ship in SNGPL it is concluded that SNGPL is doing well in all the important areas of employees working environment by providing them a safe working environment with annual training programs. The most important and interesting aspect for employees is the compensation so they are provided with appropriate compensations and pay rates as well SNGPL holds itself accountable to environment also and is working for the best interests of the country

Suggestions
 Mismanagement is too much in the company so the human resource department should take steps to make it more effective and responsible.  The employees should not be too much over burdened.  There is the need of more staff so that billing delays could be avoided.  Performance appraisal programs should be transparent based on the pure justice principles  Recruitment and selection procedure should not be biased.  Employees should be included in the decision making process.  All of the employees should be clear about their jobs. So the upper management could be helpful for the employees in this regard.

40

 Bribery and reference should be discouraged because due to these practices appropriate and efficient people are ignored.  SNGPL should encourage students for internships programs and for this purpose there should be a proper mechanism. So these were the few of suggestions suggested by the employees of the SNGPL.

41

BIBLIOGRAPHY

http://www.google.com http://www.wikipedia.com http://www.google.com/firefox?client=firefox-a&rls=org.mozilla:en-US:official http://www.googleimages.com

42