Privatisation Commission (PC) has reportedly barred Pakistan Steel Mills (PSM) Board of Directors (BoD) from holding meeting until audit of employees is conducted; well informed sources in PSM told Business Recorder from Karachi. PSM had convened a meeting of the Board on March 4, 2016 which was cancelled as the Board did not complete the assignment prior in the light of directions given by the Economic Co-ordination Committee (ECC) of the Cabinet.
According to the Ministry of Industries and Production (MoI&P), the GoP is paying only monthly net salary. The net cash payment against salary has been reduced from Rs 480 million per month to Rs 435 million per month from October 2015. The sources said, PSM management had been directed to present complete employees'' category wise report to the ECC but the management prepared only a customary report without any proper legal way and next day convened a Board meeting to get its approval. The sources further stated that the working paper of PSM Board''s Human Resource Committee (BHRC) did not include the details of employees.
Furthermore, the notice of the meeting was very short under which it was not possible for the members of the BHRC to review the documents and offer comments. PC, source said, was of the view that PSM should send complete documents formally and give a reasonable time to the members of the BHRC for their review and analysis, based on which they can contribute meaningfully in the meeting. According to sources, PC has warned the PSM management that the consequences of any further delay in the implementation of the ECC directives will lie on the PSM management.
In addition, PC stated the PSM management to recall the decision of the ECC of the Cabinet of January 29, 2016. The directions given by the ECC of the Cabinet were basically meant to reduce the salary bill of PSM by reducing any surplus staff. "Since the mill is at a shut-down. Members of the ECC of the Cabinet were of the view that with a closed mill, there may not be a need for the entire existing manpower," the sources quoted PC as saying.
PC, source said, has asked PSM to provide the details of contract workers and daily wagers and justification of their retention when the mill is in a shutdown mode. Also the financial impact of surplus employees has been sought. The source said, PC has also asked that liabilities pertaining to the "leave encashment" may be reviewed and reduced, by encouraging workers to avail leave rather than en-cashing leave. This plan also needs to be put up to the BHRC. "PC was of the view that holding a meeting of the BHRC and the Board will be an exercise in futility if the prior actions regarding employees are not taken by the PSM management before calling a meeting and without giving sufficient time to the Board members to examine the Management''s proposal in this regard," the sources concluded.