3,000 utility store employees laid off in a single day amid restructuring
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In a major move, the Utility Stores Corporation (USC) has initiated a large-scale restructuring, resulting in the termination of nearly 3,000 employees in a single day.
According to reports, the layoff orders were issued on a holiday, with the first phase of the restructuring focusing on the dismissal of daily wage workers.
Reports indicate that most of the dismissed employees had been with the corporation for over 10 years. In the next phase, thousands of contract workers are also expected to face termination.
This restructuring follows a recent decision by the federal government as on January 22, the federal cabinet formed a committee to review the potential closure of USC operations.
Government sources revealed that the committee will be led by the Federal Minister for Industries and Production, and will include key figures such as the Minister of State for Finance and Revenue, the Minister of State for IT, as well as senior officials from the ministries of Finance, Industries, Privatization, and the Benazir Income Support Program (BISP).
In August 2024, the federal government made the decision to shut down the Utility Stores Corporation (USC). Prime Minister Shehbaz Sharif sought proposals regarding the closure, and as part of this process, the government also discontinued a Rs 50 billion subsidy for USC.
Additionally, in a meeting chaired by the Prime Minister, a decision was made to reduce administrative costs and streamline the state machinery, leading to the closure of 28 departments across five ministries. These included the Ministry of Kashmir Affairs and Gilgit-Baltistan, the Ministry of States and Frontier Regions, the Ministry of Information Technology and Telecommunications, the Ministry of Industries and Production, and the Ministry of National Health Services.
The Ministry of Industries and Production also included USC in the privatization list in August 2024. The Privatization Commission hired a financial advisor, with plans to privatize the corporation in stages.
On November 15, 2024, during a Senate Standing Committee meeting on Industries and Production, Federal Minister Rana Tanveer Hussain revealed that 3,000 of the USC's 11,000 employees had been hired during the tenure of former Punjab Chief Minister Manzoor Watto, who recruited them from the Tehsil of Dera Ghazi Khan.
Minister Tanveer confirmed that, while discussions had taken place about closing USC, the Ministry of Industries and Production had opposed the move. He also noted that many stores in Balochistan and Gilgit-Baltistan were operating at a loss, with 2,400 out of 4,300 stores reporting financial deficits.
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