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Compensation and Benefits at Century Paper and Board Mills

Company’s Profile:Compensation and benefits at century paper and board mills

Century Paper & Board Mills Limited (CPBM), established in 1984, is Flagship Company of the Lakson Group of Companies – Pakistan. The Company started commercial production in 1990 and established its name as major producer of quality Packaging boards in the country. It has attained a position of Market Leader in Packaging Boards in particular and is considered as most Preferred Supplier to Printing and Packaging Industry. The Company serves many of the prestigious clientele and maintaining Strategic Business Relationships with leading Packaging and Converting units as well as end users, which include national and multinational companies. The Company is also in export business and its Packaging Boards are successfully competing in the international market.

 

An Overview to the topic:

When most people hear the term compensation they think about “what a person is paid”. Although this is true, it is only one aspect of a complex topic. Compensation includes not only salary, but also the direct and indirect rewards and benefits the employee is provided with in return for their contribution to the organization.

To determine compensation, organizations should develop a compensation and rewards program. This type of program outlines an equitable process for compensating employees. A well-structured program with a good balance of wages, benefits and rewards will support an organization to remain competitive in today’s labor market and ensure sustainability in the future.

 

Compensation and Benefits at Century Paper and Board Mills ltd.

When talking to HR manager at Century paper and board mills, we started from general compensation packages being offered at the company. According to him, they are paying more than that of government sector and almost same to national companies in the same sector. They are dealing with two different type of employees, one is on their own pay rolls and the other are being hired from a third party. Employees from third party are total responsibility of the other firm providing those employees to company. While the employees on century’s pay roll are being given all legal required benefits to the employees itself.

Company has divided workers in three categories.

1-Permanent employees (management cadre)

2-Permanent employees (production)

3-Daily wager (production)

Some facilities are for all employees like pick and drop is for all the employees, legally required leaves, and minimum wages. But rest of the benefits depends on the sector of the company, all discretionary benefits are different sector wise.

 

Compensation and Benefits:

Foundation of the company’s compensation plan depends on the factory act 1934. Law is regulated by the federal government at the organization. Company may face any litigation case in high court, labor court or at Supreme Court.

There is no labor union at the organization, so organization is independent in designing its compensation package.

Outsourcing for hiring is a trending job at the organization, most of the production employees and grade four employees, I-e lower than the executive staff and security guard and drivers are initially hired from third party, later on they are converted to company’s pay roll.

Working hours and Over Time:

Company’s production unit operates 24/7 but rest of the departments work only the official hours, which are 8:30am to 5:00pm. Which include 1 hour lunch and prayer break, and 2.5 hours break on the day of Juma,Company  operate 8.5 hours a day which makes it 51 hours for the week.

Production staff is working on shifts basis. And each shift is of 8 hours. All the employees have a weekly day off. I-e every 7th day is off for an individual employee.

When we asked about the over time, he explained that like every organization we have exempted and non-exempted employees, below the grade of executive all the employees are non-exempted from the over time. Whenever a worker works over time, company pays him the normal pay rate which is determined by the calculation of per hour wage.  When a worker works over time in the holidays, he gets paid by 2times the normal hourly rate. And if there is officially declared holiday or Sunday or any festival, he gets paid 3 times the normal rate.

Leaves:

All holidays are according to laws of federal government. Work is 6 days a week. Officially declared holidays will shut down the office. Annual 14 holidays are given to the employees, employees are permitted to 10 casual leaves. 16 sick leaves are according to law for employees.

Annual holidays can be carry forward to the next year, and employees can also encashment those holidays.

 

Bonus and Incentives:

Company is offering group insurance and life insurance for all the employees. Gratuity and provident both exist at the organization. Company is also working with the EOBI (Employee Old Age Benefits Institution).

Bonus are given company wide. When company earns profit, that profit is shared among all the employees. The best thing about this profit sharing is that it is given more to the lower cadre employees and less to the top management.

All employees are given 14 salary a year, I-e 2salaries extra every year in form of bonus and incentive.

Local and international tours are arranged for employees. Family functions and annual dinners are very much common in the organization. Family tours are arranged as well.

From the executive level of employees are given 30litre petrol ,and to manager it increases to 90litres a months.

Assistant manager is given 1300cc vehicle for his personal usage. Which is owned by company and maintained by the employee for the five years. After five years the vehicle is sold out to market price and employee is given the new one.

Pay Increment:

Employee works for 5 years at the same pay grade, after that he may be promoted to the next level, depending on his performance and qualifications.

Cost of living adjustment (COLA) is given every year in term of pay increment. Which is determined by the inflation rate of that year announced by the government.

Experience and good appraisal is another thing which increases pay of an individual. Any extra qualification or degree also is the reason for pay increment.

As the company is a part of great group of over 100 companies, Lakson group, so the sister company of the century, ac Nielsen is providing all legal and financial services to the company.

When we discuss about any litigation case in recent past, he said that it’s routine matter for a company that is dealing with public. It’s something very confidential that we can’t disclose here with you.

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