Pakistan International Airlines (PIA) is planning to lay off 3,000 employees through a voluntary retirement scheme this year to reduce its annual losses by Rs4.5 billion ($28.26 million). The Pakistani government approved the national flag carrier’s voluntary separation scheme (VSS) to remove the employees from service. PIA management is now seeking about Rs12.7 billion from the government to compensate them.
“This will result in 4.5 billion rupees savings per annum,” Abdullah Hafeez Khan, PIA’s general manager for corporate communications.
“This means we will be paying back to the government in two and half or three years,” he said, adding that between 2,500 and 3,000 employees will be laid off through the scheme.
Explaining the VSS process, Khan said that all employees will be given 14 days to accept the retirement offer.
“If employees don’t want to avail it, they are more than welcome to stay.”
The most highly skilled workers will be interviewed if they choose to accept the scheme, Khan said.
“We will ensure the process doesn’t lead to a brain drain.”
Source: Arab News PK