ISLAMABAD: The Pakistan Steel Mills (PSM) management is reportedly being pressurised to reinstate those employees who were removed after due process aimed at preparing it for revival/privatisation, well-informed sources told Business Recorder.
The PSM was profitable up to 2007-08, but since 2008-09, its downfall began. Finally, it completely shut down on June 10, 2015, and since then its losses are increasing day-by-day.
Despite the PSM being closed since 2015, the corporation has been paying salaries to the workforce by borrowing money from the government of Pakistan, which carries a significant interest rate. As a result, Government of Pakistan is forced to borrow money to fund these loans to the PSM.
Only 1 company interested in beleaguered PSM
In compliance with directions of Supreme Court of Pakistan, Government of Pakistan had sanctioned and released about Rs.13 billion for retrenchment of the PSM employees. Accordingly, 5,300 employees were retrenched during 2020 and 2021, which includes 49.9% of the mill’s work force and PSM has filed the case in Labour Court for retrenchment of the remaining 51.1%.
The sources said from recent events at Pakistan Still Mill (PSM), it appears that the political forces are back at work and pushing for unfair and unwarranted removal of management personnel, blocking CEO selection made by the Board, instructing Management to hold referendum for Union reinstatement, obstructing Pakistan Steel’s retrenchment petition in Sindh Labour court to outright telling management to reinstate people who were terminated following due process and in line with organization’s needs and current financial situation. This is all when efforts were being made to reduce losses and revive the mills.
“It seems political forces are still wanting to pursue this wrong approach in 2023, while the whole world has moved on and developed, we are still spending energy on these meaningless activities that are against the national interest,” the sources added.
An insider said that political forces should support the meaningful reforms of Pakistan Steel to reduce its losses and fully back its revival plans as this approach will lead to the mills working again, creation of better jobs that are sustainable at a corporation that is viable and contributing its due share to Pakistan’s development.
“A major political component of the present federal government based in Rural Sindh has been pressuring the relevant officials of Ministry of Industries and Production, PSM management and its Board to conduct the Referendum of Trade Unions to determine CBA of the PSM and to withdraw the writ petition filed by Pakistan Steel Mills Versus NIRC,” said one of the insiders.
The Privatisation Commission which has been assigned responsivity to complete privatisation process is also going slow as PC is also headed by a minister who belongs to PPP which is anti privatisation.
The sources said, PPP Ministers in the federal government held several secret meetings aimed at going slow on PSM revival/privatisation plan.
Copyright Business Recorder, 2023