ISLAMABAD: Employees of the Pakistan Tourism Development (PTDC) have argued that the plan to terminate their services early next year — as decided by the government last week - is against the spirit of the 18th Amendment.

“We understand that PTDC properties are to be transferred to the provinces under the 18th Amendment. But at the same time, the provinces are supposed to absorb staff along with the properties. The 18th Amendment provides security and protects employees. Nowhere does it say that staff will be laid off under devolution,” Majid Yaqub, president of the employees union, told Dawn.

He said that the government’s plan to lay off PTDC staff without taking them into confidence is unacceptable.

The PTDC decided in September this year to lay off 450 employees and hand over Rs400 billion worth of properties to the provinces. National Tourism Board Chairman Zulfiqar Bukhari also assured a parliamentary body in November that the government was working on a plan to revive tourism in the country and would present a comprehensive plan in this regard.

Last week, the government decided to lay off around 400 PTDC employees and hand over properties to the provinces by Jan 31, 2020. Staffers, who have worked in the PTDC for 15 to more than 25 years in some cases have challenged the decision in court and obtained a stay.

“They have offered us all the same golden handshake – three basic salaries with payment equivalent to six months’ rent,” Mr Yaqoob said, adding that the government’s move amounts to exploitation. He has worked in the PTDC for 20 years, and has another 17 left with the corporation.

Tourism officer Aamir Rahim Raja, another PTDC likely to be laid off, has worked for the corporation for 16 years and has 19 years of service left.

“They did not give employees any options. They should have offered to train us if the government plans to revive the tourism industry. In 2012-13, employees worked for seven months without being paid,” he said.

Mr Raja added that terminating employees’ services was a violation of the 18th Amendment, as the Constitution states that employees are to be retained by the provinces.

Another employee, who has worked at the PTDC for 20 years, also called the golden handshake unreasonable.

PTDC Managing Director Intikhab Alam told Dawn that the federal government has decided to restructure the corporation.

The government has spent four months making a comprehensive strategy to revive tourism, he said, adding: “Some 325 employees will be laid off. The tourism board has taken a lenient view to minimise their hardships by offering an attractive golden handshake with a financial outlay of Rs1 billion. Although the services of these employees can be terminated by simply serving final notices, the government has taken into consideration their long association with the corporation.”

The PTDC has been running at a loss for 30 years. The Flashman Hotel alone faced a loss of Rs23m last year. The corporation cannot continue with such a large number of redundant staff when suffering immense financial losses, Mr Alam said.

He said the staff expenditure ratio compared to income was 75pc. “No company can sustain such high expenditure on staff salaries,” he said.

He said that all the PTDC’s motels will be leased to private parties on a commercial basis, who will bring their own marketing plans and investments to revive them.

“Three new research, marketing and IT wings have been created at PTDC head office. Most employees lack skill sets to work in these areas. We will be hiring experts to run these three departments. We need these measures if we are to compete internationally,” he added.

Published in Dawn, December 30th, 2019