Sectoral Agreement on Equalizing Payment of Wages

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COLLECTIVE EMPLOYMENT CONTRACT

Issued Pursuant Provisions of the Jordanian Labour Law No. 8

for the Year 1969 as Amended 

 

First Party: Jordan Garments, Accessories & Textiles Exporters Association (JGATE), represented by Mr. Husam Al-Saleh/Deputy Chairman of the Association.

and General Union for Owners of Sewing Factories represented by Mr. Mahmoud Al-Hijjawi

Second Party: General Labor Union in the Weaving, Textiles & Garments Industry represented by Mr. Fathallah Al-Omrani

Preamble:

Whereas the signatory parties on this memorandum wish to apply its articles gradually in that The Hashemite Kingdom of Jordan is a member of the International Labor Organization and bound to apply and promote the basic principles of ILO and the rights connected with the work including elimination of discrimination with respect to recruitment in professions.

Whereas the said commitment is bolstered by The Hashemite Kingdom of Jordan's ratification of the International Labor Organization Convention No. 100 of 1951 relating to equality of  male and female labor wages when work is equal, ILO convention No. 111 of 1958 with respect to discrimination concerning recruitment in the professions, ILO  convention No.118 of 1962 with respect to equality of  treatment between the local labor and expatriate labor in the social security and consequently there is an International undertaking commitment for the application of the provisions of these conventions.

Whereas the garment sector wishes to apply the ILO’s fundamental principles and work rights in ILO in accord with the international obligations of the Hashemite Kingdom of Jordan;

Whereas the parties to this memorandum are endeavouring towards the optimum application of Jordanian Labor Law No. (8) of (1996), as amended, Social Security Law No. (1) of (2014), the Interpretive Decision of the Laws Interpretation Bureau No. (5) of (2003) relating to wages  and the decisions of  the Tripartite Committee for Labor Affairs re determining the minimum wages limit in Jordan;

Whereas the intention is to have equality of wages for all workers in the garment sector, be they Jordanians or expatriates;

Whereas the Labor Law indicated that the wage is all of the worker's entitlement in consideration of his work whether in cash or in-kind in addition to all other entitlements of whatever type if provided for by the Law, work contract or bylaws or if  dealings have become established on paying them to the exclusion of wages payable for overtime work.

Whereas the garments sector in the Kingdom has a sensitive nature from the economic aspect in that it supports the national economy;

’’And whereas all parties, subsequent to consultation, deemed it advisable to reach the final position progressively, take into consideration the industry of garments and textiles in the Hashemite Kingdom of  Jordan and not to prejudice the national economy and national income, the two parties deemed it necessary to reach a mutual accord on signing this memorandum according to the following clauses:

Firstly: The preamble shall be considered an integral part of this memorandum and be read therewith as one unit.

Secondly: This memorandum sets out the broad lines for calculating the expatriates labor wages and on  the basis of which the over time work and social security shall be calculated according thereto:

The wage consists of two parts, one of  them is in cash and the other in-kind.

The wage in cash: Its minimum amount is 110 Dinars per month.

The wage in-kind: The employer shall provide accomodation, food and other amenities where instructions of the employer permit to consider them as a part of the labor wage provided the value thereof is estimated as shown in the following Table:

 

No. Date of Commencement of  Application Estimated Cost of In-Kind Wage 
1 1/8/2014 The in-kind wage is estimated at JD 20
2 1/8/2015 The in-kind wage is estimated at JD 40
3 1/8/2016 The in-kind wage is estimated at JD 60
4 1/8/2017 The in-kind wage is estimated at JD 80

 

Thirdly: It has been agreed that this memorandum will become effective between the two parties hereof as of the date of signing thereon provided the increase starts as of 1/8/2014 according to the Table shown under clause Secondly provided that the last increase of wages ends as shown under clause (Secondly/4).

Fourthly: This memorandum shall stand to be as an understanding between the parties and a road map for reaching the satisfactory conclusion for all parties and  may not be considered  as an admission of any of them for any responsibility, violation, liability or despoiled rights of workers whereby this memorandum will be considered in all of its clauses as valid from the date of signing this agreement which is similar to cooperation by all concerned parties to reach an outcome which would serve all parties whereby serving the principle of equality and does not touch on the national interest.

Fifthly: The two parties agreed that this memorandum and  percentages of increase mentioned under clause Secondly above shall remain valid even if the expatriate worker receives over JD (110) as monthly salary before validity of this memorandum whereby the increase he has previously received shall not affect the application of the increase provided for in this memorandum. Further, the two Parties have agreed that this memorandum shall be valid towards all expatriate workers be they the current workers or those to be appointed in the future.

Sixthly: The parties to this memorandum can present it to whoever they deem suitable to outline the mechanism which has been formulated and determine the steps taken by them in order to reach the principle of reciprocity for all workers to the end of attaining justice.

Seventhly: This memorandum provides credibility to the parties thereof after ascertaining the implementation of its clauses as provided therein and according to the conditions stated therein from the date of signing.

Eighthly: A copy of this agreement shall be deposited with the Ministry of Labor and Social Security.

Ninethly: Any amendment on the clauses hereof must be in writing and signed by the parties subsequent to consultations in respect thereof as well as determine the extent of its possible application and implementation with due observance to the legislations in force at the time.

Tenth: This memorandum represents the entire understanding between the two parties and includes all negotiations, communications and meetings carried out in order to reach this memorandum without prejudice or contradiction with the previous agreements or memorandums of understanding.

Eleventh: The industrial corporations and companies covered by this agreement shall deduct the monthly (Labor) Union membership dues which amount to one half Dinar for all workers and pursuant to article (42) of the Jordan Labor Law. All dues shall be deposited in the Unions bank account by the fifteenth day of every month.

Twelveth: The addresses stated in the preamble of this memorandum for the purposes of service, communications and notifications between the two parties are approved.

Thirteenth: This memorandum consists of a preamble and thirteen clauses inclusive of this clause in duplicate copies in Arabic and each party retains a copy thereof.

This memorandum was signed at Amman-Jordan on 8 /11/2014.

 

First Party

Jordanian Garments, Accessories &

Textiles Exporters Association (JGATE)

and

General Union for

Owners of Sewing

Factories

Second Party

 

The General Trade Union of Workers in Textile Garment And Clothing Industries

 

 

 

 

 

 

 

 

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