Employees announce strike to protest FESCO privatisation

Fear massive layoffs after process is complete, want government support

FAISALABAD:

The process of privatising Faisalabad Electric Supply Company (Fesco) will witness another bump on the road, as its employees have announced a wide-scale protest.

Employees’ uproar follows the government’s announcement to set December 31 as the deadline to receive bids from prospective investors.



On November 5, employees of all power distribution companies will stage sit-ins in front of their offices, said All Pakistani Hydro Electric Union Secretary Sarfraz Hundel while talking to The Express Tribune.

Hundel said from November 6, Fesco employees will observe a strike, which he claimed would continue till the government reverses its decision. He said there was no justification for the government to sell the second most profitable power distribution company after Islamabad Electric Supply Company (IESCO).

“Fesco’s employees will likely meet the same fate as that of Pakistan Telecommunication Company Limited (PTCL) employees, when thousands lost their jobs after privatisation.”

Hundel demanded that the government should first sell loss making entities before turning its gaze at profit-making entities.



The Privatisation Commission has invited an expression of interest from prospective bidders for the strategic sale of 74% shares of Fesco besides handing over management control. The deadline for submission of the state of qualification is December 31.

Pakistan has assured the International Monetary Fund that it will sell Fesco by June 2016.

Fesco’s stable position

Fesco’s recovery ratio is close to 100% as against its Islamabad counterpart’s of 90.91%, according to its employees. They said Fesco transmission and distribution line losses are 11 % compared to Iesco’s 9.4%. According to a report, Fesco’s performance was second only to Iesco in fiscal year 2014-15.



A senior official of Fesco said the company’s annual net profit was around Rs3 billion, up from Rs1.9 billion in 2010. “Fesco has over 3.3 million customers majority of who are industrial units.”

It has over 19,000 employees of which meter readers and bill distributers are 5,000.

Fearing that their jobs would become obsolete after privatisation - which is likely to bring with it an automated meter-reading system and bill distribution through courier companies - employees feel threatened and hence, oppose the government’s plan.

They said the private buyer will not bear the burden of these employees and it is the responsibility of the government to provide them jobs.

Published in The Express Tribune, November 5^th, 2015.

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