PIA privatization: Bidders demand quick action against employees
- By Web Desk -
- Oct 03, 2024
ISLAMABAD: As the government proceeds with the privatization of Pakistan International Airlines (PIA), new conditions from potential buyers have emerged related to airline’s employees, ARY News reported.
During a Senate Privatization Committee meeting chaired by Senator Talal Chaudhry, it was revealed that companies interested in acquiring PIA are requesting significant changes.
Key among the new demands is the immediate dismissal of all employees, alongside the acquisition of 76 percent of PIA’s shares, with the government responsible for clearing tax payments.
The bidders also requested an extension on the date for completing due diligence, indicating that the privatization process could be delayed.
The Privatization Commission sought to negotiate terms that would protect employees from layoffs for at least two to three years.
However, the bidders have reportedly refused to commit to this, expressing reluctance to retain employees or cover pension obligations.
Despite four pre-bid meetings, there is still uncertainty over taxes and the future of PIA’s workforce.
READ: Minister announces new date for PIA privatisation
The privatization process, now set for October 31, has drawn criticism for the lack of a clear plan to safeguard employees.
Chairman Talal Chaudhry expressed concern over the impact of the delays on PIA’s reputation, while the Privatization Commission acknowledged that negotiations with the bidders are underway.
The outcome could see the sale of up to 76 percent of PIA’s shares, depending on the final agreements reached.
Mohsin Aziz criticized the Privatization Commission, stating that it has not achieved anything significant in the past 12 years, aside from the privatization of a few banks.
He emphasized that issues related to employees, assets, and defaults should be managed by a single dedicated ministry to ensure more efficient oversight and resolution.