The head offices of Pakistan International Airlines (PIA), including the flight services division, commercial department, and human resource divisions, will be shifted from Karachi to Islamabad by the end of January as part of the restructuring plan of the national flag carrier.
The airline’s other operations, including flight scheduling and medical division, corporate development department, works division, and supply chain management, will be shifted to the federal capital by the end of February.
The PIA’s internal audit, corporate secretariat, and finance departments will be relocated by the end of March, and the engineering department by the end of June 2021.
The human resource cost of the PIA is Rs24.8bn a year, which will be reduced under the restructuring plan.
The PIA management is also considering introducing “Sehat Card” (government heath card facility) for employees, discontinuing the present model of medical facility which, it believes, is a huge financial burden on the airline.
It said that if the “Sehat Card” option could not be materialised, then either government hospitals would be taken on panels instead of expensive private hospitals, or nominal medical encashment would be made part of salaries.
The air tickets scheme (passage facility) is being rationalised to extend the same facility to all classes of employee.
The number of tickets authorised to employees is being reduced as these contribute to indirect expenses in terms of fuel cost.
The PIA had on December 7 launched a Voluntary Separation Scheme (VSS) to get cut 3,500 employees and achieve the 1:250 (250 staff per aircraft) ratio, and set a deadline of December 22 for the scheme.
The deadline for the Mandatory Separation Scheme (MSS), which is based on performance and discipline, is January 2021.
The deadline for separating non-core functions and fast track across-the-board accountability has been set for March 2021.
The fast track accountability includes initial/completion of departmental investigations and inquiries, aggressive perusal of legal cases in court and speeding up investigations at the National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA).
Efforts are being made to let the employees go in a dignified manner, with a good financial package.
According to the restructuring plan, if the separation of the required number of 3,500 employees was not met through the VSS, the MSS will be launched soon after.
All departments/categories of PIA employees will be rationalised to achieve the required number of 3,500 employees.
According to plan, excess employees will be mandatorily retired based on performance, discipline, and value addition.
Mandatorily-retired employees will not be offered VSS financial packages or medical/passage facilities post-retirement.
PIA Officers Association general secretary Safdar Anjum has alleged that the airline management had leaked the restructuring plan with an intention to create panic and fear among the employees, so that they avail of the VSS.
“Since the VSS scheme had been introduced, only 650 employees have applied so far,” he tweeted.
Anjum said that all the employees who had been transferred from Karachi to Islamabad are facing difficulties getting accommodation and other facilities.
