Restructuring plan will reduce the number of employees per aircraft from 500 to 250
Annual human resource expenditures will be controlled, while the restructuring plan will reduce the number of employees per aircraft from 500 to 250.
In the current scenario, the airline is bearing the cost of 14,500 employees in PIA's fleet of 29 aircraft and 2.6 billion rupees a month and 24.8 billion rupees a year. The fleet of 29 aircraft has 14,500 employees which will be reduced.
Under the new restructuring plan, 3,500 employees will be laid off from the voluntary retirement scheme in December 2020. Dismissal of Employees Involved in Performance Departmental Rules and Inquiry in Retirement Scheme to be Completed in January 2021.
Departmental Investigations Involved in legal matters and in NAB will be decided on priority basis. The non-core departments will be separated in March 2021.
The voluntary retirement scheme will bring huge financial benefits to the employees and the employees who are forced to retire will not be able to avail the package of the voluntary scheme. The pay package for retiring employees will be different.
Under the new restructuring plan, 3,500 employees will be laid off from the voluntary retirement scheme in December 2020
In the third phase, Flight Kitchens, Technical Ground Services (TGS) Engineering Base Maintenance will be operated under a joint venture with private companies after forced retirement.
After the handover of Precision Engineering to the Pakistan Air Force, its employees will no longer be part of the PIA. PIA's Courier Services Spadex has already been shut down in November 2020, while PIA's Legal Hearings Cases will complete the cases of employees involved in NAB FIA inquiries on a priority basis.
According to the corporate restructuring plan, in January 2021, all the flight services departments including commercial, human resources, legal and industrial relations will be shifted to Islamabad.
By the end of February 2021, flight operation scheduling and medical, corporate development, works and supply chain management will also be shifted to Islamabad.
In the new corporate restructuring plan, the internal audit of Karachi head office, corporate secretariat, finance department will be shifted to Islamabad by March 2021. In June 2021, PIA's engineering department will be completely shifted to Islamabad. Payment of OCS, TADA will also be changed in the cost saving plan.
PIA employees will be linked to officially introduced health cards, which will include government hospitals as well as panel hospitals according to their salaries.
With the reduction in air tickets issued to employees, its charges will also change according to the fuel price.