Services of 300 employees: PSM seeks MoIP approval for extension of contracts

Pakistan Steel Mills (PSM) is seeking approval from the Ministry of Industries and Production (MoIP) for the extension of contracts of over 300 employees as their contract period was expired on June 30, 2014. In addition to these employees, the PSM management has lay-off some 20 contractual employees and refused to extend their contract, despite assurance of job security by the newly-appointed CEO.
Sources told Business Recorder on Wednesday that under the restructuring program, Pakistan Steel Mills has principally decided not to extend the contract of several contractual employees aimed to minimise rising losses of the mills. On June 26, PSM has served notices to some 20 employees informing them that their contract employment will not be extended for another period after expiry of present contract period on June 30, 2014. Some of these employees have more than seven years of service with the country's largest steel mill.
The contractual employees said that PSM has given only four days notices, while as per rule one month notice period was required to end the contract. In addition, the Pakistan Steel Mills management has decided to extend contract of some 300 employees and accordingly a list has been sent to the federal government for their extension. "PSM is seeking approval from the Ministry of Industries and Production for extension of contracts of over 300 employees as their contracts period was expired on June 30, 2014," they added.
Newly-appointed Chief Executive Officer of Pakistan Steel Mills Major General Zaheer Ahmed (retired) after assuming his charge announced that the employees were asset of the mills and downsizing was not the policy of the management. "No employee will be ousted and right person will be placed on the right job as per his qualification, experience and expertise," the PSM CEO said.
Meanwhile, PSM spokesman Shazim Akhtar said that he was unaware of any layoff from the mill. "I don't know how many contractual employees have been laid off, but there are reports that a list of some 150-200 workers has been sent to the Ministry of Industries and Production for approval of contract extension," he added. He said PSM was facing shortage of raw materials and presently the mill was operational at 4-5 percent production capacity. Shazim said the management was making efforts to import raw materials and two ships with coal were likely to reach Karachi in few days.
Sources said that some sacked employees have decided to approach the court and one of the employees namely Salman Ali (Personal No 825476), deputy manager, has brought stay order from the court against its removal from the service. On the petition of Salman Ali, the Sindh High Court has suspended the termination of contract order of Pakistan Steel Mills' deputy manager till further orders.
Petitioner Salman Ali submitted that he was appointed as deputy manager (media) on contract basis and during his service no show cause notice was issued to him. His counsel Shamsuddin Khalid submitted that the PSM management issued letter to the petitioner on June 20 with regard to termination of contract agreement without giving any reasons whereas the CEO of PSM had recently announced that no worker would be terminated from the service.
He submitted that injustice to the petitioner began when he was first 'illegally' transferred from the PR Department and the entire exercise following that, till he was informed just two days ago that his job contract will not be further extended was in continuation thereof.
He prayed that in the light of Supreme Court's judgement, direct the PSM management to regularise the service on permanent basis as per current qualification and experience criteria in the Public Relations Department, mentioned in the Pakistan Steel Officers Rule book. He prayed the court to suspend the impugned order of terminating the contract letter and reinstate the petitioner. The court has served notice to the CEO of Pakistan Steel Mills and asked to be present in person or by pleader on July 7, 2014.