Govt to lay off USC daily wagers
The government has decided to lay off daily wage employees from utility stores across the country as part of its "rightsizing" policy, sources revealed on Saturday.
The move, which affects an estimated 2,500 to 2,600 workers, was approved earlier by the Utility Stores Corporation (USC) board of directors.
According to sources, directives for terminating employees have already been issued by the respective zonal offices, signalling the start of the downsizing process.
The layoffs are in line with the government's broader policy of rationalising the workforce and reducing expenses.
The decision comes as part of ongoing restructuring efforts within the USC, which has been under financial strain. While officials have cited economic challenges and efficiency concerns as the reason for the cuts, the move is expected to face resistance from affected employees and labour unions.
The USC board had deliberated the matter in previous meetings, ultimately concluding that reducing the number of daily wage staff was necessary to align with budgetary constraints and operational efficiency goals. The government's "rightsizing" policy aims to streamline operations in state-run entities, potentially impacting other sectors in the future.
It is pertinent to note that Federal Minister for Industries and Production, Rana Tanveer Hussain, recently clarified that the government has no plans to shut down utility stores but will instead restructure them.
Responding to concerns raised in the National Assembly by PPP leader Raja Pervaiz Ashraf, he assured that the stores would continue operating, though reforms were needed to enhance efficiency.
The minister noted that utility stores were originally set up to provide affordable essential goods, but many were established in unnecessary locations due to political influence. He acknowledged instances of political appointments within the organisation, which would be addressed during restructuring while assuring that regular employees' jobs remained secure.
It is worth noting that there were rumours that the government would discontinue subsidies on sugar, wheat, and cooking oil.
In December 2024, another proposal was considered to close 1,000 loss-making USC outlets nationwide. However, another proposal was to restructure the corporation to improve its financial sustainability.
The government will face the daunting task of accommodating USC's 3,800 employees. The industries and production minister repeatedly said that the government had no intentions of closing the USC.
In January, the Economic Coordination Committee approved Rs1.7 billion to settle the pending liabilities of USC under the Prime Minister's Relief Package. However, no additional budget was allocated for the upcoming Ramazan relief package.
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