PIA offers VSS, expects 2,500 employees to leave

KARACHI: Pakistan International Airlines (PIA) announced a voluntary separation scheme (VSS) on Monday giving a two-week deadline to employees for a decision as lose-making state-run airline continues to be a drain on public funds for over a decade.

PIA’s spokesman Hafeez Khan said the option to apply for VSS will end on December 22. Although that appears to be a very short deadline, Khan believes the ample time has been given.

“Employees have already made up their minds,” Khan told The News. “Within two hours, we have already received 11 applications,” he said, adding the VSS was announced at 4pm late afternoon. “We are expecting 2,500 employees to opt for VSS.”

The government has already announced that it would shed half of employees of loss-making PIA under its restructuring plan and set aside Rs12.69 billion for VSS, according to the spokesman.

“By next year, we will probably have 7,500 regular employees,” said the PIA’s spokesman. Khan said currently there are 10,500 regular employees on the payroll. If contractual workers and daily wagers are included the total workforce is somewhere around 13,000.

Besides, the spokesman said the airline sees attrition of 1,000 employees every year. The airline incurred over Rs56 billion losses alone in 2019 and that was continuation of its subpar performance for over a decade.

The spokesman said interested employees will apply for VSS by submitting the VSS application form given separately along with signed VSS package report to the concerned VSS coordinators, assigned at facilitation desks established at each station.

“The last working day of the VSS accepted employees shall be 31 December, 2020 whereas the expected date of receiving pay out cheque shall be on or before 31st January, 2021,” he said.

PIA employees have come under immense pressure after the management’s tough decision one after another. They doubt if merit would be considered during the existing restructuring plan. The politically-influenced hiring had been a norm in airline in the past, while career growth was linked to the political clout for years.

At least 450 employees were transferred to Islamabad from Karachi earlier this month. The officers are suffering from severe anxiety and frustration after receiving sudden transfer orders, sources told Geo. PIA’s spokesman said the move to Islamabad is a pretty natural progression with operations recovering in northern region. International traffics are also seen increasing from that part.

PIA also planned to set up base maintenance in Islamabad. Line maintenance is already carried in the capital city, saving its costs of the aircraft shift to Karachi after every four flights. Since engineering is capital-intensive, its complete relocation depends on when and how Rs6 to 7 billion are raised, according to the spokesman.

The VSS package has been made for employees in two categories: over 18 years of service and below 18 years of service. The package compensation includes accumulated leaves, gratuity, provident fund, lump sum medical and pension up to the age of 65 years.

“Different basic pay formula has been devised as per salary break-up and service years of employees including pilots and engineers,” said the spokesman.

All regular employees under the age of 58 years as on 30 November are eligible to participate in the voluntary separation scheme. Non-eligible employees include non-regular and or contractual employees, employees, who have already submitted resignation, employees who have already opted for early retirements, employees under any litigation against PIA, until they undertake and withdraw the litigation latest by 31st December.

The previous government decided to privatise PIA and set April 2018 as the last date of its privatisation as its losses swelled to more than Rs400 billion since 2008. Under the law, the management control of the PIA continues to remain in the hands of the federal government and majority shares could not be transferred to any private party.