FACT SHEET: AQABA PEARL LOGISTICS - SUBCONTRACTOR

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21-10-2015
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FACT SHEET:   AQABA PEARL LOGISTICS - SUBCONTRACTOR
 
 
Who is ACT?
ACT is a joint venture between the Aqaba Development Corporation (ADC) and APM Terminals — operating via a 25-year build-operate-transfer agreement signed in 2006. The terminal constitutes the logistical and economic backbone of the Aqaba Special Economic Zone Authority (ASEZA), serving as the preferred gateway to the region for many active markets around the world. 
 
Who is Pearl?
Aqaba Pearl Logistics is an independent registered company established in 2012 which business is to provide labor services.More than 30% of Pearl workforce has worked for Pearl for less than two years.
 
What is the issue?
ACT is a customer of Aqaba Pearl Logistics.
In agreement with the owner of Pearl, it was decided in August 2015 that the contract for the provision of labor will not be renewed after October 2015.
Instead, ACT indicated they will recruit and advertise 80 additional positions for Flexible employees “Dock Operators” (Operators / Lashers) since 17th August 2015.
Why not subcontract labors to other companies instead ofhiring flexible workers?
Working in a container terminal as an operator or lasher requires training which is always provided by the Terminal (be it subcontracted resources or ACT own resources).
Instead of subcontracting some labours, ACT decided to increase its pool of flexible labours from 147 to more than 220.Hiring will enable a closer control on staffing requirements, employees safety and training. Last but not least, working as an ACT employee gives the employees better career development opportunities going forward.
What will happen to Pearl employees?
ACT has no legal obligations vis-a-via Pearl employees.
However, ACT offered Pearl employees:

1. Priority: Pearl employees shall apply to ACT’s existing flexible contract and receive priority over other candidates for those who meet the recruitment criteria,

2. Higher salary package: an overall salary package for the vacancies advertised that will be higher (by minimum 10%) than the current salary package they received at Pearl.
The recruitment has been open since 17 August. The Pearl employees who have not applied will lose the opportunity to work for ACT.
 
What will happen to Pearl company?
Mr. Yaseen Alqaraleh, Aqaba Pearl Logistics Manager / Owner stated in Parliament “Aqaba Pearl Logistics is my company, the contract I have with ACT will not be renewed in agreement with myself”.  Mr. Yaseen Alqaraleh also thanked ACT “I am very thankful for the cooperation between us during the last years” .
Pearl company is an independent company which is free to decide whether they wish to stay in business or not, offer services to other companies or not.
 
Summary:
- Aqaba Pearl Logistics is a private company totally independent from ACT,
- ACT has no legal obligations vis-à-vis subcontractors’ employees,
- ACT opened 80 new vacancies,
- ACT gave priority to Pearl employees applications and offered more than 10% increase in overall salary package