SC directs labour court to decide PSM employees retrenchment

ISLAMABAD: The Supreme Court of Pakistan on Thursday directed the Labour Court to proceed with the issue of retrenchment of employees of the Pakistan Steel Mills (PSM), within three months in accordance with the law.

A three-member bench of the apex court headed by Justice Ijazul Ahsan, issued an order in an appeal filed by the Pakistan Steel Mills against the order of the Sindh High Court, promoting some 76 employees of the PSM.

The court also directed the ministry of industries to file a report within a week pertaining to the proposed retrenchment of employees of the PSM, who are still on the payroll of the steel company.

The Privatisation Commission (PC) submitted a report stating; that the core operative assets of the PSM are being transferred to the Steel Corporation Private Limited, which is special purpose vehicle.

The report further stated, that such assets would be considered free of all encumbrances, charges etc. adding, that offers have been invited from suitable private investors, who will be required to make capital investment to revive the existing steel plant by bringing it in line with modern technology, besides creating ample job opportunities.

The secretary PC submitted; that the process is likely to take some time, but it is expected that it would be completed by the end of this financial year, says the order.

The Additional Attorney General (AAG) submitted that 2299 employees are still on the payroll of the PSM, who are being paid from the grants received from the federal government, which amounts to Rs1billion per month, says the order.

It was further submitted in the report; that a scheme for retrenchment has already been filed before the Labour Court However, on account of the fact that the matter is pending before this court, the labour court is reluctant to proceed with the matter, says the court order.

The court directed the ministry of industries to file a report within a week regarding the proposed retrenchment of the employees of Pakistan Steels, who are still on the payroll of the said company

It is pertinent to note that on March 12, 2020, a three-member bench of the apex court headed by former Chief Justice Gulzar Ahmed had suspended the operation of the judgment of the Sindh High Court, promoting some 76 employees of the Pakistan Steel Mills.

The court in its order had observed that the Steel Mills is shut since June, 2015 but its employees are still claiming all sorts of benefits including raises, promotions and other perks and privileges.

“The impugned judgment challenged in the present CPLA is also one of the examples where promotions have been allowed to the respondents who are 76 in number and where similar promotions have been granted ”, the court had ruled in its order.

“We are unable to understand as to how; when the PSM is not producing anything, how come the employees are employed there and from where the payments are being paid to them by way of emoluments and other benefits”, the court had noted in its order.

The Attorney General (AG) had told the court that he would obtain instructions and place the same before the court. “In the meantime, we grant leave to appeal in this case and at the same time suspend the operation of the impugned judgment”, the court ruled.