The Utility Stores Corporation (USC) has terminated a total of 11,406 employees under a restructuring plan, effective September 1.
As per official records, the federal government has authorized a financial package of Rs25.5 billion to provide compensation for regular, contract, and daily wage workers, in addition to funding for widows of deceased employees and closure expenses for the organization.
For regular staff, Rs13.18 billion has been allocated. Employees with two years or less until retirement will receive a total of Rs357 million, with each of the 230 individuals set to get approximately Rs1.52 million. Workers with over 20 years of service will be entitled to two current basic salaries for each completed year, amounting to Rs2.21 billion and averaging Rs3.44 million per person. Those with fewer than 20 years of service will receive three current basic salaries for each completed year, with Rs10.61 billion allocated, allowing each to obtain around Rs2.43 million.
Contract workers will collectively receive Rs3.6 billion. Employees with two years of remaining service will be provided with Rs17 million in total, translating to Rs414,000 per worker. Those with over 16 years of service will receive Rs2.97 billion in compensation, with each individual getting Rs1.127 million. Workers with up to 16 years of tenure will share Rs611.5 million, equating to Rs947,000 per person.
Daily wage employees, numbering 2,854, will be compensated with Rs2.71 billion. Those with two years of service or less will receive pay for the remaining months at a rate of Rs37,000 per month. Employees with up to 10 years of service are eligible for 15 months’ salary, while those with service between 10 and 15 years will receive 28 months’ salary. Staff with more than 15 years of service will be compensated with 30 months’ salary.
An additional Rs5.75 billion has been set aside for administrative closure costs and financial assistance for widows of deceased staff. The plan also encompasses payments for previously laid-off contract and daily wage workers.