Rs. 6.032 BILLION GHS/VSS BENEFITS 29970 WORKERS OF PRIVATISED ENTITIES-WORKERS CAN BECOME OWNERS THROUGH PRIVATISATION PROCESS-SAYS DR. ABDUL HAFEEZ SHAIKH, FEDERAL MINISTER FOR PRIVATISATION & INVESTMENT ON MAY DAY

Islamabad, May 01, 2004

The Government of Pakistan considers the workers as the strong stakeholders of the public sector entities being offered for privatisation and it is the prime objective of privatisation policy to safeguard the interests of the workers of the Public Sector entities in particular. Dr. Abdul Hafeez Shaikh  stated this in a statement issued on the observance of May Day here today.

He said that as compared to any other international privatisation experience, Pakistan had the distinction of offering most generous schemes for the workers. Prior to privatisation of any such entity with the consent of APSEWAC the government offered Voluntary Separation Scheme (VSS) or Golden Handshake Scheme (GHS) to the interested workers to ensure that they should not be left high and dry, he stated.

The Minister added that as a result of these post privatisation benefits to the workers so far a huge amount of Rs. 6.032 billion had been disbursed as GHS/ VSS among 29970 employees of the privatised units.

He assured the workers that no one could think of working against the interests of the workers of Pakistan in particular. Even in certain cases we appreciated the workers to become owners of the entities to be privatized and there was no embargo on them for taking part in the privatisation process. 10 % shares of each privatized entity is also meant for the workers, which is another effort to make them realize the feelings of ownership in these entities.

Dr. Hafeez Shaikh further stated that Pakistan was proud of its workforce who with their devotion and commitment had made this country a hub of economic activity and were the purveyors of development and progress. While commemorating the sacrifices made by the workers of Chicago who laid down their lives for the just cause of the legitimate rights and for the uplift of the dignity of labour in the world, we in Pakistan observe this day with a strong commitment to build our nation stronger with hard work and dedication for improvement and development in every sphere of life of our beloved country, he added.

Dr. Hafeez Shaikh said that the on going privatization was a pro-poor and pro-worker process which had a binding on buyers to retain those workers for a period of one year who did not opt for GHS/VSS after the privatisation of any entity and not to expel these workers immediately even in case of excess work force or inefficiency.

He further stated that Pakistan’s Privatisation Program also envisaged that the privatized units should run more efficiently and profitably by the professionals to generate additional jobs in the private sector. Our Privatisation program was not focused to associate private sector for making money or to make massive retrenchments in the public sector entities, he said.

Our goal was to ensure low tariff through competition and to extend quality services, increase production and above all to give market based salaries, better working environment and facilities to our skilled and unskilled labour.

The privatisation process was initiated in Pakistan in 1991. The break through could only be possible with the signing of APSEWAC Agreement in October 1991 between Ministerial Committee and representatives of All Pakistan Workers Action Committee (APSEWAC). The Agreement provided most  generous scheme of VSS/ GHS for the workers.

Dr. Hafeez Shaikh while lauding the hard work being laid down by the Pakistani workforce within and out side the country said that the workers were the main force behind the economic development of our country. The privatisation program in Pakistan was a joint effort of the Privatisation Commission and our workforce, to get the private sector in for better wages, facilities, transfer and adaptation of latest equipment / technology for the speedy economic growth and above all for the expansion in these units by making fresh investments, he remarked.

This activity would not only expand our industry but it would also generate more jobs for our unemployed youths, including skilled and unskilled workers, he stated.

He added that in the presence of a comprehensive welfare and social security net being provided to the workers, the Privatisation Program in Pakistan is being conducted peacefully with the utmost understanding and cooperation between the government and the workers.