SC rejects steel mill workers’ salary plea

The apex court also observed that poor handling of the PSM drove it to bankruptcy


Hasnaat Malik July 30, 2016
PHOTO: FILE

ISLAMABAD: The Supreme Court on Friday, while rejecting the plea of Pakistan Steel Mills employees regarding release of salaries, observed that judicial interference is not a substitute for prudent management.

The verdict came in a petition moved by the Pakistan Steel Peoples Workers Union seeking a restraining order for the government not to terminate the services of the employees of Pakistan Steel Mills (PSM) .

The apex court also observed that poor handling of the PSM drove it to bankruptcy while small foundries in the private sector grew into big industries with prudent management.

“It is because of prudent management that small foundries in the private sector grew into large industrial units. Tata – a renowned name in the steel industry – attained an enviable status in our neighbouring country (India),” the court observed.

On June 24, the court had reserved its ruling on determining the maintainability of the petition that whether the case could be heard under its original jurisdiction on enforcement of fundamental rights or not.

Contrary to its historical judgment wherein it had halted the process of PSM privatisation, the court has declared, “judicial analysis, assessment or adjudication of such matters, which is more or less theoretical, cannot be a substitute for prudent management”.

The court said the PSMC alone is not in the lurch. PIAC (Pakistan International Airline Corporation), which was one of the best airlines of the world, is also in troubled waters.

Justice Ejaz Afzal Khan, while authoring the four-page verdict, said overcoming failures of PSM is the domain of the executive and legislature.

“The executive in the first instance could take stock of the situation, examine the causes of their failure and find ways and means to bring them out of such straits. The legislature could legislate to deal with the problems besetting the corporations if the existing dispensation in its wisdom is not equal to the occasion,” the court said in its judgment.



The judgment further observed that PSMC is a huge enterprise, adding no mega or minor project in the country is conceivable without steel mills.

“It, despite having a winning head-start came to a deadlock,” observed the top court, declaring PSMC a hub of economy and backbone of the country.

The top court said the matter of payment of salaries to its employees, if it is inextricably linked with the disputed question of the fact, could be addressed by forums established by law.

“Failure to settle liabilities towards provident and gratuity funds may have worsened the plight of the employees, but such liabilities could also be settled by the fora established in this behalf.”

The bench recommended the employees to approach the high court to redress their grievances.

The judgments said no order terminating the services of the employees, laying them off, deducting their allowances or changing terms and conditions of their service has yet been passed; therefore, petition under Article 184(3) of the constitution on this score would be premature.

In case there is any such apprehension in the minds of the employees, they could if so advised approach the high court and ask for the issuance of a writ of prohibition or any other writ under Article 199 of the constitution, it further said.

“Inaction or indecision on the part of the government may raise alarm in the minds of the employees of PSMC and add to the anguish of every thinking citizen, but where the remedy could be heard from the high court under Article 199 of the constitution and other fora established in this behalf, we would not like to step in and wax eloquent in futility,” the judgment read.

Published in The Express Tribune, July 30th, 2016.

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