KARACHI – While thousands of Karachi Electric Supply Company (KESC) employees wait for a stay order from the court over their dismissal from service, the power utility has shared the details of a ‘severance scheme’ with the Sindh High Court (SHC) under a new plan to sack around 4,000 of its non-core, non-management staff.
However, this time the KESC management has taken all precautionary measures by completing all legal procedures before launching the new scheme and no visible reaction from the employees is expected.
Reliable sources told Pakistan Today that if the employees fail to get a stay order from the court soon, they would have no option but to accept the formula provided by the power company.
When contacted, KESC Labour Union Chairman Akhlaq Ahmed said the matter is still in the SHC and the employees would announce their action plan later. However, the union has requested the honourable court to ensure their job security, he added.
Talking about the fresh scheme which is not a voluntary separation scheme as compared to the earlier one, he said the employees would decide about their future course of action after the court’s decision.
According to statement issued by the KESC on Friday, the company has designed a severance scheme for its employees, who are non-core to the operations and functions of the power utility. These non-critical positions encompass approximately 4,000 employees including bill distributors, junior office assistants, office attendants, MT drivers, sanitary workers and security guards.
Despite the financial challenges surrounding the KESC, it has decided to make a substantial investment of over Rs 5.35 billion in the larger interest of these 4,000 employees, who will be given an upfront gross payment of a minimum of Rs 700,000 to a maximum of Rs. 4,735,000.
Under the scheme, the employees under 58 years of age would be granted ex-gratia payment of four basic salaries plus one basic salary for each of their remaining years of service; while those between 58 to 60 years would be given one basic salary for each remaining month of their services. Provident and gratuity funds would be paid according to entitlement; leave encashment and medical allowance would be paid equal to 7.5 basic salaries. Apart from this free electricity entitlement would also be monetised for a period calculated over the next five years and added up.
Of the 4,000 identified non-core employees, 189 employees are left with two years of service with the company, 418 with 3 to 6 years, 490 have 7 to 10 years, 760 have 11 to 15 years, 703 with 16 to 20 years, 699 have 21 to 25 years, 567 with 26 to 30 years left, 222 have 31 to 35 years, and 6 employees have 36 to 38 years left of their service with the company.
The disbursement of Rs 5.35 billion would have the following break up: gratuity – approximately Rs 1.05 billion; leave encashment Rs 79.2 million; medical allowance Rs 262 million, electricity monetised benefit Rs 782 million; provident fund Rs 1.083 billion, ex-gratia payment Rs 1.976 billion and additional ex-gratia payment Rs 111 million.
According to calculations, 44 percent of the stated number of employees would bag an amount ranging from approximately Rs 1 million to Rs. 4.735 million
This scheme was presented before the SHC on Wednesday on court orders. The CBA through its advocate has sought time to go through the package. If the scheme is not accepted by the employees voluntarily, the KESC reserves the right to proceed further for retrenchment as per the law.
The KESC statement added that the above decisions have been taken by the power utility as an independent action, keeping in view the philosophy of the management to create value and conducive operating environment, while remaining to be a socially responsible organisation.
