The Privatisation Commission has agreed to pay Rs 90 million to former workers of Pak-Saudi Fertiliser Limited (PSFL) as personal pay, expected to be equally shared by the Commission and Fauji Fertiliser Company Limited (FFCL), according to documents made available to Business Recorder.
However, it has been decided that the employees' claim of gas allowance, amounting to Rs 15 billion, would not be entertained. Pak-Saudi Fertiliser Company Limited was purchased by Fauji Fertiliser Company in 2002, which made full payment to the PC.
According to the sale agreement, legal benefits to the opting employees were to be paid by the former company (PAFL) and the buyer was required to share 50 percent of the Golden Hand Shake (GHS).
After the sell-off process, the employees were offered GHS, for which 416 workers opted and the claim of Rs 230.209 million was sent to the PC. Out of this claim only Rs 125.720 million was paid to the employees, whereas the claim of Rs 104.689 million on account of personal pay and gas allowance was not entertained because both claims were not covered under the agreement.
The documents further show that when the government felt some problems with the agitated workers, who were also demanding enhancement of the package, the PC Board constituted a committee on April, 16, 2004 to look into the matter and submit its recommendations.
The committee after detailed discussions and examination made the following recommendations:
1. While PC had technically followed the agreement in both units, the opting workers of PSFL had suffered due to their failure to opt for GHS at the right time. They also failed to rationalise their pay scales by merging personal pay into basic pay through CBA agreement prior to privatisation of their unit.
2. The committee realised that the employees of PAFL which managed to conform their GHS claim as per the agreement, were paid substantially higher amounts compared to PSFL employees, also adding that since PSFL and PAFL were sister units, their employees merited similar treatment.
The committee, therefore, unanimously recommended that long outstanding arrears, amounting to Rs 90 million approximately on account of GHS payment on revised calculations of personal pay, may be paid to 416 workers of PSFL as a special case, without making it a precedent.
3. The committee, however, recommended that total liability of Rs 90 million be paid by PC, as the buyer (FFCL) was not willing to share this liability.
4. The committee also recommended that workers' claim of gas allowance need not be entertained.
5. The committee further decided that its recommendations be presented to the PC Board and the recommendations of the board should be submitted to the CCoP for final approval.
The documents further show that the PC Board, in its meeting on December, 29, 2005, had recommended that out of total dues of Rs 90 million, half (Rs 45 million) may be paid by the PC and CCoP should direct FFCL to pay the remaining half (Rs 45 million).
The issue will be considered in the CCoP meeting to be held on Saturday.
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