November 6, 2001	Tuesday	Shaba’an 19, 1422

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KARACHI, Nov 5: The PIA Board of Directors in its 258th meeting held on Oct 22, authorized the managing director of PIA to introduce “Mandatory Retirement Scheme (s)”.

He could introduce any such scheme at any time or from time to time in a phased manner or otherwise, depending upon the financial position of the corporation to implement these schemes(s) to retire or release such employees, who fall within the criteria approved by the board on such terms and conditions as may be considered satisfactory to PIA.

According to PIA sources, due to financial losses, the cash flow constraints and the present circumstances affecting the operations and business of aviation/airline industry, it had become expedient to affect economy in different spheres inclusive of but not limited to rationalization of manpower at different tiers either by closure of station(s) or rightsizing/downsizing the present manpower levels to bare minimum without affecting the corporation’s operations and commercial viability.

In exercise of the powers conferred on the managing director, under Regulation 25(5) of PIAC Employees (Service and Discipline), Regulation 1985, and the decision taken by the PIAC Board of Directors, the managing director in the first phase has approved a mandatory retirement scheme to retire or release employees in the cadre of general manager or equivalent and above (except personnel possessing such specialized/professional skills, as may be determined to be critical for the corporation), who have completed 20 years and above service in the corporation and/or the age of 55 years, and /or due to the organizational changes are without an assignment and/or due to proposed rationalization of manpower at different tiers are not likely to be utilized against a proper job/vacancy commensurate with their education/professional experience and/or their retention without an appropriate assignment, or without an approved position in the hierarchy is causing financial drain by payment of emoluments and facilities and/or due to such education/experience/varied reasons have reached the ceiling of their existing position/cadre and are not likely to shoulder higher responsibility in future on the concept of merit and/or fall within the aforesaid criteria notwithstanding the completion of 20 years and above service or 55 years of age, but in the opinion of the managing director, their further retention in the corporation is departmental to its financial, operational or administrative interests.

Upon retirement with normal terminal benefits, as per laid down in corporation’s rules, in addition to three months basic pay/ allowances/ perquisites, the un-availed privilege leave at the credit of such employee on the date of retirement, will be uncashed.

Provided further that the period of un-availed privilege leave for which the encashement has been approved will be counted for the purpose of calculation of pension and transfer of car/adjustment of furnishing advance (provided entitled as per applicable policy), only.

The provision of this administrative order will apply and prevail notwithstanding anything contrary in any administrative order, office order, circular or policy.

AMENDMENTS APPROVED: The PIAC Board of Directors in its meeting held on Oct 22, approved certain amendments/ additions to the PIAC Employees (Service & Discipline) Regulations, 1985.

The amendments/additions approved were as under:

“24(a) Termination from service: The services of an employee of the corporation may be terminated by the appointing authority, by offering three months notice of payment or three months wages/salary in lieu thereof.”

“25(5) Notwithstanding anything provided hereinabove, the board or the managing director, if so authorized by the board in this behalf, may where necessary in view of the financial and commercial interest of the corporation, retire or release any employee under a mandatory scheme in terms provided therein.”

“26 Option for early retirement: An employee, who has completed 20 years of continuous service in the corporation or attained the age of 55 years, may exercise the option for retirement from the corporation’s service with normal terminal benefits based on the actual years of service rendered by him, provided such option is not being exercised to avoid dismissal if disciplinary action is outstanding against him.

All regulations, rules, administrative orders stand superseded to the above extent only. —APP