KARACHI, Jan 6: Two labour unions in the power sector have joined hands to launch a protest movement against the proposed privatization of their organizations, and planned a joint rally on Elender Road on Monday.

The development was announced by the representatives of the KESC Employees Action Committee and WAPDA Hydroelectric Labour Union at a press conference at the Karachi Press Club on Thursday.

They declared that the joint struggle was aimed at forcing the government not to privatize the KESC and the Water and Power Development Authority (Wapda). M. Akhlaq Khan, Latif Nizamani and Latif Mughal, speaking at the press conference also demanded restoration of the trade union activities in the KESC.

They said that the government was perusing the privatization policy on the dictates of international monetary institutions, and apprehended that these national assets might be handed over to some multinational firm at rock bottom prices.

They cautioned that the Wapda and KESC had free access into highly sensitive defence installations because of being responsible for a smooth supply of electricity to these installations and if a multinational company with foreigners associated with them was given access into such installations, the country's defence and security would become vulnerable to certain threats.

Rejecting the reasons put forwarded by the government for the privatization of the KESC, they said the main argument that the corporation had been running into losses, was absolutely unacceptable.

Contrary to this, they added, the losses were being caused by the poor handling of affairs as the army officials having no idea of run a public utility agency perfectly had been posted in the top management positions.

Both the KESC and Wapda could be streamlined on sound footings within no time if professionals were brought in to run their management affairs, they contended.

They observed that owing to over five-year ban on trade union activities in the KESC, at least three instances of the CBA-management agreement and two of 'revision of pay scales' had lapsed.

They said that on the one hand, the employees were being made to work on meagre salaries, and on the other, more than 9,000 people had been recruited on contract basis.

They suggested that the government should review the power purchase agreements it had concluded with independent power plants and get the power tariffs reduced. The KESC, which was forced to purchase furnace oil from a state-owned oil company at a high rate, should be allowed to acquire the same from the market at competitive prices.

They further suggested that the usage of furnace oil be phased out and the power generation units be converted into natural gas-powered units in order to reduce the production costs by around 30 per cent.

The union leaders demanded that the KESC's power generation units which had been shut down be reactivated and new generation units be installed for which the infrastructure was already available at West Wharf and KTP.

They also demanded that efforts be made to contain the transmission and generation losses which, at present, stood at around 20-40 per cent. This, they maintained, would enable the KESC to save about Rs20 billion.

Suggesting other measures, they said that kunda system be curbed through effective vigilance; an effective policy be adopted to recover arrears from government as well as private consumers; and non-developmental expenditure be curtailed.

Highlighting the demerits of the KESC's privatization, they said that the private party taking over the utility would definitely enhance the tariff which would badly affect all consumers - domestic, industrial, agricultural, etc.

Any increase in the tariff was bound to affect exports as exporters would not be able to maintain the prices of their merchandize at a competitive level in the international markets.

The expensive electricity might also result in closure of many industries which would ultimately result in an upward trend in the unemployment graph, as well as heavy losses in terms of tax revenues and earning from exports.