ECC Approves Voluntary Retirement of 3500 PIA Employees

WEB DESK: The Economic Coordination Committee (ECC) of the federal Cabinet has argued that the surplus employees in Pakistan International Airlines (PIA) are a burden and approved in principle Rs12.8 billion for the Voluntary Separation Scheme for 3,500 permanent employees of the national flag carrier.

According to scheme, the employees will get early retirement or voluntary separation.

Payment will also be made to the employees, who have voluntarily resigned from their jobs.

Meanwhile, PIA has been granted a green signal to go ahead.

The PIA management will take decisions after receiving the applications. If 3,500 employees applied for scheme, all applications will be accepted

If more than 3,500 employees decided to apply for the VSS, then the management would devise criteria for the VSS offer.

Dr. Ishrat Hussain, head of Prime Minister Imran Khan’s Reforms Commission, had submitted a document in the Economic Co-ordination Committee, which has been approved in principle. And now it will be implemented after the final approval of the cabinet.PIA have about 460 crew members per aircraft, which is the highest in the world.

The airline can save Rs. 4.20 billion per annum after lay offs of surplus staff.

Sources in the Ministry of Aviation told News 360 that the decision to lay off 3,500 employees in PIA was taken several months ago and was not directly linked to the recent corona crisis, however the current corona wave has fueled this decision.

The corona virus has hit the global aviation industry the hardest, and according to the IATA, the corona virus has destroyed the aviation industry’s business worldwide by 66%.

The total loss is also estimated at 415 billion dollars.

According to the PIA’s financial report as on March 31, 2020, its deficit is Rs 253 billion, while all its debts and payments are Rs 590 billion.

Meanwhile, according to sources in the Ministry of Finance, the volume of loans and liabilities of PIA is currently Rs 643 billion.

Commenting on recent move leader of the opposition Pakistan People’s Party Chaudhry Manzoor, said that forced retirement of PIA employees will not be tolerated under any circumstances.

He said that the salaries of the employees in PIA are only 12% of the total expenditure which is a very low in the world.

The highest number of crew per aircraft is because of the low number of PIA planes.

According to the legal experts, PIA employees can go to court against the scheme.