Pakistan International Airlines' bidders demand dismissal of 76 pc of workforce
Oct 03, 2024
Islamabad [Pakistan], October 4 : As the Pakistani government moves forward with the privatisation of Pakistan International Airlines (PIA), potential buyers have introduced new conditions, particularly concerning the airline's employees, according to ARY News.
During a Senate Privatisation Committee meeting chaired by Senator Talal Chaudhry on Thursday, it was disclosed that companies interested in acquiring PIA are requesting significant changes, ARY News reported.
Among the key demands is the immediate dismissal of all employees, along with the acquisition of 76 percent of PIA's shares, with the government bearing responsibility for settling outstanding tax liabilities.
The bidders also requested an extension to the due diligence deadline, indicating potential delays in the privatisation process, ARY News reported.
The Privatisation Commission has attempted to negotiate terms that would safeguard employees from layoffs for at least two to three years. However, the bidders have reportedly refused to make any such commitments, expressing unwillingness to retain employees or assume pension liabilities.
Despite four pre-bid meetings, uncertainty remains over tax issues and the future of PIA's workforce. The privatisation process, now rescheduled for October 31, has faced criticism due to the absence of a clear plan to protect employees, ARY News reported.
Chairman Talal Chaudhry expressed concern about the impact of delays on PIA's reputation, while the Privatisation Commission acknowledged that negotiations with bidders are ongoing. The outcome could result in the sale of up to 76 percent of PIA's shares, depending on the final agreements reached, ARY News reported.
Pakistan's Finance Minister, Muhammad Aurangzeb, on October 2, reaffirmed the government's commitment to privatising PIA and three power distribution companies before the year's end, ARY News reported.
The privatisation of PIA, initially set to conclude by October 1, has been postponed to October 31 due to low bidder interest, ongoing court cases, an ageing fleet, and civil aviation concerns, according to ARY News.
