ISLAMABAD: In the second phase of rightsizing plan for the Utility Stores Corporation (USC), 2,800 employees, working on contract, have been laid off. Earlier, 2,400 employees, working on daily wages, were dismissed.
The board of the USC had approved a rightsizing plan in the light of the policy of federal cabinet, which will be implemented by June 30.
Under the rightsizing plan, regions of USC have been reduced from 64 to 34, while the number of branches decreased to 700 from 1,565.
A total of 2,800 contract employees have been dismissed under the clause of the contract by paying them one month’s salary. The orders have been issued separately in each region.
Laying-off employees will save Rs100 million to Rs110 million per month. The corporation is facing a monthly loss of Rs500 to 600 million per month.
According to sources, USC branches were opened and recruitments made on political grounds, raising the salary bill immensely.
The current MD, Faisal Nisar Chaudhry, has implemented the rightsizing plan. The number of employees of the organisation is being reduced to 6,000, which had reached 11,500.
Calling the dismissal unfair, some employees have approached the courts against this decision.