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Karachi: Karachi Electric Supply Company has stated that over 3,000 non-core employees have already accepted the Voluntary Separation Scheme while the remaining over 1,000 non-core employees have started availing this scheme in the final round.
KESC said that the utility was exclusively focusing on its core functions of power generation, transmission and distribution while the non-core functions had been outsourced to third party service providers, as done by other utilities like PSO, SSGC etc., to create extra headcount and financial space for core functions.
KESC stated that the market-based VSS involved a pay out of approximately Rs. 6 billion to 4,500 redundant employees of non-core functions offered in December 2010. This offered a handsome amount to each of the departing non-core employees. This offer was in line with KESC policy of undertaking generous initiatives for low-paid employees already in progress.
A total of 5,700 contractual employees were regularized during May and June 2010. Total impact of medical benefits, salary increments in terms of cash outflow stood at Rs 60 million per month. KESC Medical served around of 66,369 persons, including 17,113 employees plus 49,266 dependants, and total medical expenditure for the current year was estimated at Rs 410 million.
On the other hand, “AZM Scholarship Program” has been launched for children of workers and junior officers who can qualify for vocational training diploma degree at Amantech, ranging from automobile to Electrical courses. The diploma is recognized by City and Guilds institute England. Technical Training was also arranged for Non Management Staff during 2008 to 2011, under which 107 employees were trained during 2008, 1570 in 2009, 2590 in 2010 and 7500 during 2011.
However, the former CBA union of KESC vehemently opposed the pro-employees VSS by all means, fair or foul. On Jan. 20, last year, its muscle men in hundreds launched a violent attack on KESC Head Office physically tortured staff and officers, severely damaged buildings and property, and burnt and damaged over 200 cars in the premises.
The union also filed a writ Petition No.403 of 2011 in the Honourable Sindh High Court praying for a restraining order against outsourcing and retrenchment which was not granted. The National Industrial Relations Commission in fact granted a restraining order on the union’s petition against VSS. However, in blatant disregard of this stay the union continued with dharnas, hunger strike at press club, and issuance of threats to the CEO and other senior members of the KESC Management.
Against this wave of agitation and threats, KESC filed a petition before the Sindh High Court which restrained the ex-CBA from attacking the employees of KESC and from obstructing work. NIRC later confirmed the earlier stay granted earlier thus upholding its order that the acts of ex-CBA were illegal and unlawful. Moreover, the Chairman and President of ex-CBA are facing contempt proceedings filed by KESC in NIRC.
During their prolonged disruptive and sabotage campaign from May 9 to July 17, 2011, union miscreants continuously blocked access to service centres, complaint offices and main offices; and attacked and tortured more than 178 KESC employees of various levels to force them on strike.
The miscreants also adversely impacted two power plants, temporarily shut down two grid stations, damaged 27 cables and conductors, destroyed 26 vehicles, burnt or tempered 20 substations, damaged complete IT infrastructure at least five times, and, damaged and disabled 23 feeders and transformers.
They hijacked 56 maintenance vehicles to misuse for street agitations, internal disturbances and violent attacks on KESC offices and installations, and snatched over a dozen kits of expensive repair tools. Over 500 instances of wire cut and cable stealing were reported.
On July 1, 2011, KESC offered a bigger and better package as a payoff for opting to voluntarily separate from KESC, however, after exactly one month of Governor House agreement, the very people who had signed it on behalf of Mazdoor Ittehad attacked KESC head offices on Aug. 29, lasting almost 10 hours, during which a number of policemen and private security guards were critically injured due to heavy firing from the attackers.
This very act itself nullified both the terms of the agreement and its spirit of an amicable settlement. Also because the main union leaders were arrested and put behind bars. All of them have been dismissed from service for their blatant acts of violence and are out on bails. KESC could not deal with declared culprits, who are non-employees. They are in constant violation of their bails as well as they regularly hold meetings, threaten the management with their lives and still frequent the utility’s premises to disrupt business and poison the minds of employees.
In the meanwhile the 2 year tenure of Labour Union as CBA expired on Aug. 21, 2011. Consequently two unions challenged the legitimacy of Labour Union as CBA in NIRC and wrote to KESC as well as to DC that LU had lost its legal mandate to act and continue as Collective Bargaining Agent (CBA). Proceedings for holding referendum for determining a new CBA were initiated by Registrar NIRC at Karachi Registry.
Meanwhile, Labour Union filed an application during proceedings for extension of another year in its tenure as CBA. KESC obtained a stay against these proceedings of NIRC from Sindh High Court. At present, there is no CBA in KESC and as such no union can negotiate and enter into any legal agreement with the management on behalf of the workers.
On Jan. 17, 2012, KESC received a letter authored by DC South asking for nomination of names to participate in DRC. The letter also warned KESC that in case of failure to nominate the members for DRC, KESC would be responsible for any adverse situation pertaining to Law and order. In response to the letter, KESC said that: “…due maintenance of public order and law and order remains the constitutional responsibility of the Province of Sindh, its functionaries and the law enforcement agencies, in which regard as Deputy Commissioner, it is not tenable for you to seek to shift the onus of maintaining public order on to peaceful law abiding institutions and citizens such as KESC, its employees, officers and consumers.”
KESC said that the non-core employees need to follow the footsteps of their over 3000 co-workers and find a new livelihood for themselves by exercising the option of VSS. KESC’s fiscal space is limited and the utility cannot carry the weight of this workless minority any longer. KESC said that in case the remaining non-core employees do not exercise their option of VSS then the utility would reluctantly have to exercise its reserved and legal option of retrenchment.
For more information, contact:
Adil Murtaza
Assistant Manager, Media and PR
Karachi Electric Supply Company Limited (KESC)
2nd Floor, State Life Building No 11, Abdullah Haroon Road, Saddar, Karachi
Tel: +9221 9920 7163
Cell: +92346 822 3641
Email: adil.murtaza@kesc.com.pk