USC agrees on Rs25b severance package
People stand in line to buy essential food items on subsidised rates at an outlet of the state-run Utility Stores Corporation in DHA Karachi on Friday. Photo: Jalal Qureshi/Express
The management of the Utility Stores Corporation (USC) and the workers' union on Wednesday agreed on a total package of Rs25.5 billion following the direction of Prime Minister Shehbaz Sharif.
Sources said that out of the total package, the severance/compensatory package amounts to Rs19.5 billion, which would be implemented in three phases.
In the first phase, the government would give 40%, 30% in the second phase and 30% in the third phase.
In line with the directives of the prime minister, a special relief package for the employees of the USC has been approved to provide financial protection to affected workers and their families.
A meeting was held between the management of the Utility Stores Corporation and employees under the chairmanship of the Special Assistant to the Prime Minister (SAPM) for Industries and Production, Haroon Akhtar Khan. During the meeting, a formal severance and compensation agreement was signed between the USC and the National Workers Union.
Under the agreement, affected employees will be provided a comprehensive severance and compensation package. Following the signing of the agreement, the process of distributing cheques to employees has already commenced.
The SAPM stated that the government will extend full financial support to ensure timely and transparent payments to all eligible employees. As per the agreed framework, payments will be made in phases: 40% in the first phase, followed by two subsequent instalments of 30% each. The agreement also includes annual increments for the years 2024 and 2025 as part of the compensation package. The majority of employees have voluntarily accepted the package, reflecting confidence in the government's commitment to workers' welfare.
Reaffirming the government's stance, Akhtar emphasised that the government will not abandon workers during difficult times. He added that, in line with the prime minister's vision, the protection of workers' rights and dignity remains a top priority. He further stated that the PM considers the provision of financial security to affected families as one of the government's foremost priorities.