Privatisation of Pakistan Steel Mills: High Court refuses to hear employees' plea

[ghazi52]

Privatisation of Pakistan Steel Mills: High Court refuses to hear employees' plea

KARACHI: The Sindh High Court (SHC) on Tuesday refused to hear a petition filed by Pakistan Steel Mills (PSM) employees pertaining to their imminent sacking due to the privatisation of the state entity.

During today’s hearing, Justice Umar Sial backed the attorney general’s statement that the SHC could not hear the case as it is sub judice in the Supreme Court of Pakistan.

To this, the PSM employees lawyer said the case in the apex court is related to the promotion of employees, not privatisation issue.

The SHC justice cautioned the lawyer and his clients that it was not their union but a court session and if they do not maintain decorum they will go to jail.

“What you people have done to the steel mills, everyone knows it,” said Justice Sial in his remarks.

After hearing this, the expelled the PSM employees from the courtroom.


Govt decides to privatise PSM

Earlier this month, Minister for Industries and Production Hammad Azhar said that the government had decided to privatise the mills as it had become a burden on the national exchequer, according to an APP report.

He said that PSM employees had not been working for the last many years and now they would get a financial package of around Rs2.3 million per employee as compensation. Besides, he said, employees could also contribute to productivity in the private sector.

He said that at one stage, the PSM had 30,000 employees out which many employees had retired and now an estimated 9,000 employees were working for the mill. He said the PSM was closed for the last five years and previous governments could not devise any plan for it.

The minister said that the government had to spend Rs55 billion to pay salaries to employees of a closed mill. He said when the PTI government came into power, the Pakistan Steel Mills was facing a loss of Rs176 billion and its interest was also increasing with each passing day.

Azhar said that the previous governments could not handle this issue, therefore, the present government had to take the final decision about the fate of the mill in the larger interest of the country.

 

[hamilcar of carthage]

yes. yes. yes. I have never been happier in my life.

 

[SABRE]

I am just giving my generalized opinion here. The problem with state-owned companies/industries like the Pakistan Steel Mills, PTV, PIA, Pakistan Railways, etc, is that the successive governments have failed to expand their businesses & at the same time have been filling them up with employees based on political favouritism. The end result is inefficiency, low to no profit, and an overflowing influx of employees. There are only three options to fix the problem. Two of them lead to the same solution = downsize.

1. Don't privatise but downsize.
2. Privatise & the new ownership downsizes.

3. Shutdown: Everyone loses their jobs.

 

[Syed1.]

I am just giving my generalized opinion here. The problem with state-owned companies/industries like the Pakistan Steel Mills, PTV, PIA, Pakistan Railways, etc, is that the successive governments have failed to expand their businesses & at the same time have been filling them up with employees based on political favouritism. The end result is inefficiency, low to no profit, and an overflowing influx of employees. There are only three options to fix the problem. Two of them lead to the same solution = downsize.

1. Don't privatise but downsize.
2. Privatise & the new ownership downsizes.

3. Shutdown: Everyone loses their jobs.

Well summarized. Option 1 is ideal but Pakistan is not like China where same party will rule forever and there will be continuity of policies. It is very likely that PML-N+PPP coalition might return after 2023 and all the gains made by implementing Option 1 will be reversed in quick time.


Hence Option 2 is the best in Pak's context.

 

[W.11]

Well summarized. Option 1 is ideal but Pakistan is not like China where same party will rule forever and there will be continuity of policies.

already anticipating losing elections, thats called confidence.

regards

==========

last time PMLN was blamed for incompetence when it wanted to privatize PIA, today PTI is doing and no youth people are complaining.

regards

 

[Syed1.]

already anticipating losing elections, thats called confidence.

regards

That's called covering your bases. You won't know what that is otherwise your Altaf would still be ruling in Karachi. Must hurt that Urdu speakers support PTI now

 

[Enigma SIG]

We need to sell everything so that PML-N and PPP can't use them for electoral vote bank politics.

 

[Samlee]

great decision for once courts stood for pakistan

 

[Flight of falcon]

already anticipating losing elections, thats called confidence.

regards

==========

last time PMLN was blamed for incompetence when it wanted to privatize PIA, today PTI is doing and no youth people are complaining.

regards

I have been watching you for a while and your dumb arguments.

Let me remind you of previous deals PPP and PML was offering:
Sell it to Mittal through a Saudi subsidiary and let him dictate Steel availability and pricing

or

......wasnt it like buy PIA and get steel mill for 1 dollar?

your papas were making a great deal indeed...

That's called covering your bases. You won't know what that is otherwise your Altaf would still be ruling in Karachi. Must hurt that Urdu speakers support PTI now

Altaf and Bhutto both belong in the gutter of history. They both destroyed generations but now people don't give a damn about either. Flush them both down the toilet of history....

 

[maxpayne]

Mittal deal was Being done during musharraf era and shoukat Aziz was the main players. Pls correct the facts

I have been watching you for a while and your dumb arguments.

Let me remind you of previous deals PPP and PML was offering:
Sell it to Mittal through a Saudi subsidiary and let him dictate Steel availability and pricing

or

......wasnt it like buy PIA and get steel mill for 1 dollar?

your papas were making a great deal indeed...





Altaf and Bhutto both belong in the gutter of history. They both destroyed generations but now people don't give a damn about either. Flush them both down the toilet of history....

 

[jupiter2007]

I am just giving my generalized opinion here. The problem with state-owned companies/industries like the Pakistan Steel Mills, PTV, PIA, Pakistan Railways, etc, is that the successive governments have failed to expand their businesses & at the same time have been filling them up with employees based on political favouritism. The end result is inefficiency, low to no profit, and an overflowing influx of employees. There are only three options to fix the problem. Two of them lead to the same solution = downsize.

1. Don't privatise but downsize.
2. Privatise & the new ownership downsizes.

3. Shutdown: Everyone loses their jobs.

Pakistan Steel Mills, PTV, PIA, Pakistan Railways should be privatized as soon as possible.

Downsizing and shutdown Pakistan steel Mills won't work. Opposition will make a big deal out of it.
If Russia or China is willing to buy it, we should sell it cheap and let them make all the decisions.

Government should reduce 30% to 40% of PIA employees by consolidation departments and automating the processes by using technology. Make PIA stable by reducing PIA overhead and sell it. Once government privatize PIA, Government can have JV with private sector to start a new airline using Qatar/Turkish airline business model.

 

[Syed1.]

Pakistan Steel Mills, PTV, PIA, Pakistan Railways should be privatized as soon as possible.

Downsizing and shutdown Pakistan steel Mills won't work. Opposition will make a big deal out of it.
If Russia or China is willing to buy it, we should sell it cheap and let them make all the decisions.

Government should reduce 30% to 40% of PIA employees by consolidation departments and automating the processes by using technology. Make PIA stable by reducing PIA overhead and sell it. Once government privatize PIA, Government can have JV with private sector to start a new airline using Qatar/Turkish airline business model.

Damn that looks so cool

 

[Imad.Khan]

Pakistan Steel Mills, PTV, PIA, Pakistan Railways should be privatized as soon as possible.

Downsizing and shutdown Pakistan steel Mills won't work. Opposition will make a big deal out of it.
If Russia or China is willing to buy it, we should sell it cheap and let them make all the decisions.

Government should reduce 30% to 40% of PIA employees by consolidation departments and automating the processes by using technology. Make PIA stable by reducing PIA overhead and sell it. Once government privatize PIA, Government can have JV with private sector to start a new airline using Qatar/Turkish airline business model.

Not bad but i still like this one

But would like to add the green strip around the body like this one and remove the writing in gold

 

[Cookie Monster]

I am just giving my generalized opinion here. The problem with state-owned companies/industries like the Pakistan Steel Mills, PTV, PIA, Pakistan Railways, etc, is that the successive governments have failed to expand their businesses & at the same time have been filling them up with employees based on political favouritism. The end result is inefficiency, low to no profit, and an overflowing influx of employees. There are only three options to fix the problem. Two of them lead to the same solution = downsize.

1. Don't privatise but downsize.
2. Privatise & the new ownership downsizes.

3. Shutdown: Everyone loses their jobs.

Ideally...there's no reason as to why a government entity cannot operate efficiently and be profitable...China has many examples of government owned entities that are doing just that.

In case of Pakistan however...both PPP and PML-N(I'm sure others too) have filled up these state owned entities with their supporters. They didn't care whether the entity would be profitable...they just wanted continued support of their jiyalas, patwaris, etc. by throwing such job opportunities at them. These state owned institutions are bloated with unnecessary government appointed employees...many of whom don't even do their jobs...and have been receiving pay and benefits with their token presence. Such losses for such a long time are then expected. Losing the competitive edge in the market is expected.

Option 1 u listed doesn't work...bcuz downsizing wouldn't help if the employees were hired based on favoritism and not based on their qualifications. Secondly...if this government does the "right" thing...who is to say that the next government wouldn't go back to overly bloating such a downsized state institution?

Option 3 would be a complete loss...
...so IMO option 2 would be best...try to get whatever money can be gained by selling it. Once these state institutions are sold...as a private entity its sole purpose would be to make money, which would force efficiency. All the fired employees can reapply and if they are competent and qualified...there's no reason as to why they wouldn't be hired by the privatized PSM.