Altaf calls for consideration for old employees ahead of PIA privatisation
MQM chief says that old employees are worried that they will be laid off following privatisation of the airlines.
Old employees of PIA fear lay-offs once the airline is privatised. PHOTO: AFP/FILE
LONDON:
In a rare comment on the financial health of a particular state-run organisation, the Muttahida Qaumi Movement (MQM) chief Altaf Hussain implored the government to consider interests of old employees of the ailing national carrier ahead of its planned privatisation.
In a statement released by the MQM on Monday, Hussain said that news of Pakistan International Airlines (PIA) privatisation has worried its employees.
The employee cost in airlines has traditionally remained high. But the cost composition has changed drastically in the last few years with a sharp increase in oil prices. PIA hasn’t been an exception.
In 2003, PIA employees were eating up 19.3% of revenues while fuel accounted for 24.2%. In absolute terms, employees were paid Rs9.172 billion and Rs17.9 billion was spent on buying jet fuel.
After nine years, the employees and fuel consume 22% and 54.54% of revenues. But in absolute terms, the cost of employees has jumped to Rs27.5 billion.
But with plans afoot to privatise the airlines, workers are worried.
Hussain said that following news of the privatisation, some employees have made the MQM aware of their concerns. They fear they could become victims of lay-off because of privatisation, and that it could destroy their future, the statement read.
The MQM chief said that he has assured the government that his party would support their positive policies to turn around the fortunes of state-owned organisations which are suffering loses. However, Hussain said that the government should also safeguard the future of old employees.
In a rare comment on the financial health of a particular state-run organisation, the Muttahida Qaumi Movement (MQM) chief Altaf Hussain implored the government to consider interests of old employees of the ailing national carrier ahead of its planned privatisation.
In a statement released by the MQM on Monday, Hussain said that news of Pakistan International Airlines (PIA) privatisation has worried its employees.
The employee cost in airlines has traditionally remained high. But the cost composition has changed drastically in the last few years with a sharp increase in oil prices. PIA hasn’t been an exception.
In 2003, PIA employees were eating up 19.3% of revenues while fuel accounted for 24.2%. In absolute terms, employees were paid Rs9.172 billion and Rs17.9 billion was spent on buying jet fuel.
After nine years, the employees and fuel consume 22% and 54.54% of revenues. But in absolute terms, the cost of employees has jumped to Rs27.5 billion.
But with plans afoot to privatise the airlines, workers are worried.
Hussain said that following news of the privatisation, some employees have made the MQM aware of their concerns. They fear they could become victims of lay-off because of privatisation, and that it could destroy their future, the statement read.
The MQM chief said that he has assured the government that his party would support their positive policies to turn around the fortunes of state-owned organisations which are suffering loses. However, Hussain said that the government should also safeguard the future of old employees.