Karachi Electric Supply Company (KESC) is reportedly 'forcing' 4,500 non-management employees and the workers engaged in non-core functions to avail Voluntary Separation Scheme (VSS), however, the said staff rejecting the scheme termed it as unfair and a smart way of termination, it is learnt.
During a brief visit of KESC offices here on Thursday, Business Recorder came to know that the said employees are in deep stress as the company had already issued notices of VSS byname to 4500 workers. According to details, KESC had announced the scheme on December 31, 2010 for 4500 workers engaged in non-core functions including drivers, office attendants, security guards, sanitary workers and others.
The company is offering benefits to employees taking advantage of this Voluntary Separation Scheme. All statutory dues and Ex-Gratia Payout (minimum of 25 basics, maximum of 85 basics with minimum payout of Rs 700000) will be paid to employees who decide to benefit from this one-time scheme.
All those non-managerial employees and regular workmen in non-core roles who are below 59 years of age are eligible to benefit from this scheme. However, those employees who are on probation, contract or had resigned are not eligible. January 15, 2011 has been set as the last date for the employees to avail of the said scheme.
The non-managerial staff at KESC told Business Recorder that they are not convinced to avail of such schemes as the person availing of the scheme would not be able to avail of "Old Age Benefits" including family medical and electricity benefits. However the KESC had already issued byname letters and given January 15, 2011 as last date, they added.
KESC should announce VSS for all the employees including officers, directors and other high level officials as well, they added. Member of CBA union told Business Recorder that the employees have already rejected the scheme while KESC is compelling the workers to avail it. Some of the officers have also given the task to make the workers agree to avail the scheme, he added.
He said KESC has announced VSS without taking CBA in confidence. The employee who would avail the scheme would initially get 25 percent payment and the remaining after six months. While the amount which any employee would get after availing VSS is also far less than the amount which employee gets its retirement, he added.
Spokesman Amir Abbasi when contacted, told Business Recorder that KESC is not forcing any employee to avail VSS as it is voluntary separation scheme. The amount after availing of VSS depends upon the years of service and in some cases it has also reached Rs 4 million, he added.
He said we want to improve employee efficiency as it directly affects efficiency of the system and we have to make our system strong. He said the company is working to get efficient utilisation of material and human resources as KESC has the major role in society, he added.
Rejecting the allegations, he said we had suffered loss of Rs 14 billion in last financial year. There are various areas whereas the number of workers is more than the required manpower, he added. He said the efficiency of the system is dependant on the efficiency of the manpower.
Amir said with the requirement of productivity, KESC had regularised 6500 contractual employees six months ago. The contract employees cannot avail of various benefits including medical, provident fund and gratuity, however after the regularisation, the said employees become eligible for various benefits, he added.
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