PC warns of its inability to move summary for PSM salaries

Asks PSM management to ‘rationalise its employees’ strength, especially contractual and daily wage employees’

ISLAMABAD: Privatisation Commission (PC) secretary has asked the Ministry of Industries and Production to look into affairs of PSM as the Commission “may not be able to submit any further summary for the release of the salaries for the PSM employees for consideration of the ECC of the Cabinet”.

In a letter No DO No 2(8) Steel/2014, issued on March 24, the secretary, who is also the member of Board of Directors of PSM, has requested the Industries and Production Ministry to look into the affairs of the Mills.

“You may recall that the ECC of the Cabinet in its meeting held on January 20, 2016 had directed the management of the PSM to rationalise its employee’s strength, especially contractual and daily wager employees, considering the mill has been non-operational since June 2015. Accordingly, PC vide its letter dated February 16, 2016 requested the management of PSM to take the actions before any further summary for the release of salaries could be taken for consideration of the ECC of the Cabinet”, says the secretary’s letter.

In his letter, the secretary has requested the Ministry of Industries and Production to look into three most urgent matters which include: “The PSM Board to justify the retention of total number of regular as well as contract employees and daily wagers working in the PSM, given PSM is closed since June 2015. Furthermore, PSM Board may also confirm the reasons for not appointing a regular CFO till date. PSM Board to endorse the future salary bill of its employees (Regular, Contractual and Daily Wagers) which are essentially required to operate a closed mill after verification of the same by the PSM Board Audit Committee. In view of the fact that PSM is not operative due to closure of gas supply, PSM Board may review the options available under the Pakistan Commercial and Industrial Employment Ordinance, 1968. Decision of the PSM Board on the same may be submitted to the PC.”

The secretary in his letter further said that an agenda of the HR Board Committee was received on February 28, 2016 (P/B), intimating a meeting scheduled on March 4, after which the PSM Board meeting was scheduled with a 20-point agenda. The agenda contained no information on rationalisation of PSM employees and instead contained a proposal requiring additional funds amounting to Rs30 billion for capital repairs of PSM and revival of the Plant to 1.5 MTPY.

Accordingly, the undersigned, vide email dated February 29, 2016 |F/C), responded by giving clear directions for preparing the working paper in light of the ECC decision, for the Board HR committee to deliberate upon. Additionally, it was also conveyed that the consequences of any further delay in the implementation of the above shall lie with the PSM management. Furthermore, an email dated March 01, 2016 was also sent to the CEO PSM requesting to prioritise and limit the agenda of the PSM board to 10 items at maximum for more meaningfully contribution by all members and to send the same at least seven days in advance for the members to study and prepare for the same.

The secretary has requested the ministry to look into the matter. “I regret to state the behaviour of PSM management leaves much to be desired given its burden on the national exchequer causing unnecessary delay in the release of salaries of the PSM employees who have been deprived of the same for the past 3 months, and this is bound to cause embarrassment to the government. In light of the above, may I request you to kindly look into the affairs of PSM personally and direct them to proceed on war footing in accordance with the directions of the ECC and the directions given through email dated February 29, 2016, failing which PC may not be able to submit any further summary for the release of the salaries for the PSM employees for consideration of the ECC of the Cabinet,” the letter says.