Looming crisis: PIA staff backs off on chairman’s word
Nasser Jaffer promises labour leaders of meeting with Ishaq Dar.
Nasser Jaffer promises labour leaders of meeting with Ishaq Dar. PHOTO: EXPRESS
KARACHI:
The Pakistan International Airlines (PIA) management averted an outright confrontation with its labour union on Tuesday after assuring them of an audience with Finance Minister Ishaq Dar.
Trouble has been brewing at the national airlines after the government, through a presidential ordinance, converted the status of the public organisation to a limited company, allegedly paving the way for its privatisation.
On Tuesday, union leaders led by CBA (collective bargaining agent) President Shamim Akmal met PIA Chairman Nasser Jaffer, who promised the protesting employees he would arrange their meeting with Finance Minister Ishaq Dar – the chief sponsor of the ordinance.
PIA employees, who mostly are affiliated with half a dozen unions, fear the ordinance is the first step towards privatisation of the cash-strapped airlines, which is buried under liabilities of Rs300 billion and continues to incur losses year after year.
Despite the successful meeting, the PIA staff will continue holding a symbolic two-hour protest between 2pm and 4pm across the country.
Officials say the protests have been deliberately arranged in the afternoon to avoid any negative impact on the flight schedule.
“I have assured them of conveying their grievances to the government,” PIA Chairman Jaffer said. “I will also try to arrange a meeting between the unions and the finance minister in the next couple of days.”
He also thanked the union leaders for coming to the meeting with an open mind. “Fundamentally, the unions are against privatisation. So I told them they should take that concern to the government and not make the ordinance part of this debate.”
Initially the unions were supposed to meet Prime Minister’s Special Assistant on Aviation Shujaat Azeem. But some of the leaders backed out at the last moment.
Officials say the PIA’s privatisation, even in the shape of a strategic sale of 26% stake with management control, has become inevitable because of pressure of the International Monetary Fund.
The fact the government turned down the PIA’s request to help reschedule its debt has also underlined its intentions and inability.
Jaffer said if the government, being the majority shareholder, could not come up with money, then there was little choice but to seek help from outside.
But the labour unions are adamant in opposing any such move.
Nasrullah Afridi, who heads the Pakistan Airlines Cabin Crew Association and was also part of the meeting, said the protests would continue until the ordinance was taken back. “Jaffer has assured us that he is with us on this. But no one should doubt our resolve to fight this till the end.”
A senior PIA official feared any breakdown in negotiations could lead to the repeat of a similar crisis in 2011 which not only led to the ouster of the then managing director, but also forced the cancellation of hundreds of flights.
Published in The Express Tribune, December 9th, 2015.
The Pakistan International Airlines (PIA) management averted an outright confrontation with its labour union on Tuesday after assuring them of an audience with Finance Minister Ishaq Dar.
Trouble has been brewing at the national airlines after the government, through a presidential ordinance, converted the status of the public organisation to a limited company, allegedly paving the way for its privatisation.
On Tuesday, union leaders led by CBA (collective bargaining agent) President Shamim Akmal met PIA Chairman Nasser Jaffer, who promised the protesting employees he would arrange their meeting with Finance Minister Ishaq Dar – the chief sponsor of the ordinance.
PIA employees, who mostly are affiliated with half a dozen unions, fear the ordinance is the first step towards privatisation of the cash-strapped airlines, which is buried under liabilities of Rs300 billion and continues to incur losses year after year.
Despite the successful meeting, the PIA staff will continue holding a symbolic two-hour protest between 2pm and 4pm across the country.
Officials say the protests have been deliberately arranged in the afternoon to avoid any negative impact on the flight schedule.
“I have assured them of conveying their grievances to the government,” PIA Chairman Jaffer said. “I will also try to arrange a meeting between the unions and the finance minister in the next couple of days.”
He also thanked the union leaders for coming to the meeting with an open mind. “Fundamentally, the unions are against privatisation. So I told them they should take that concern to the government and not make the ordinance part of this debate.”
Initially the unions were supposed to meet Prime Minister’s Special Assistant on Aviation Shujaat Azeem. But some of the leaders backed out at the last moment.
Officials say the PIA’s privatisation, even in the shape of a strategic sale of 26% stake with management control, has become inevitable because of pressure of the International Monetary Fund.
The fact the government turned down the PIA’s request to help reschedule its debt has also underlined its intentions and inability.
Jaffer said if the government, being the majority shareholder, could not come up with money, then there was little choice but to seek help from outside.
But the labour unions are adamant in opposing any such move.
Nasrullah Afridi, who heads the Pakistan Airlines Cabin Crew Association and was also part of the meeting, said the protests would continue until the ordinance was taken back. “Jaffer has assured us that he is with us on this. But no one should doubt our resolve to fight this till the end.”
A senior PIA official feared any breakdown in negotiations could lead to the repeat of a similar crisis in 2011 which not only led to the ouster of the then managing director, but also forced the cancellation of hundreds of flights.
Published in The Express Tribune, December 9th, 2015.