Identifier
Created
Classification
Origin
08ISLAMABAD2606
2008-08-04 10:57:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Islamabad
Cable title:
TELECOM WORKERS END STRIKE THAT TIED UP LINES AND
how-toVZCZCXRO2665 RR RUEHLH RUEHPW DE RUEHIL #2606 2171057 ZNR UUUUU ZZH R 041057Z AUG 08 FM AMEMBASSY ISLAMABAD TO RUEHC/SECSTATE WASHDC 8169 INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHINGTON DC RUEHNE/AMEMBASSY NEW DELHI 3604 RUEHBUL/AMEMBASSY KABUL 8960 RUEHPW/AMCONSUL PESHAWAR 4652 RUEHLH/AMCONSUL LAHORE 5866 RUEHKP/AMCONSUL KARACHI 0124
UNCLAS ISLAMABAD 002606
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL ECON ECPS EINT PK
SUBJECT: TELECOM WORKERS END STRIKE THAT TIED UP LINES AND
THREATENED NATIONWIDE SHUTDOWN
Summary
- - - -
UNCLAS ISLAMABAD 002606
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL ECON ECPS EINT PK
SUBJECT: TELECOM WORKERS END STRIKE THAT TIED UP LINES AND
THREATENED NATIONWIDE SHUTDOWN
Summary
- - - -
1. (U) Communications giant Pakistan Telecommunication Co. Ltd.
(PTCL) has been beset by labor-relations controversies since its
privatization in 2005. In the latest chapter, PTCL employees went
on a two-week strike, which ended July 30, over the introduction of
the Unified Pay Scale (UPS). The employees' union rejected the UPS
and threatened a nationwide shutdown of the telephone system until
PTCL management capitulated with a new compensation package offering
a 35 percent pay increase. The strike noticeably affected PTCL's
ability to provide service to its customers, although cell phone use
mitigated much of the strike's effects for the general public. End
summary.
2. (U) After the UAE telecom company, Etisalat, took over PTCL
following privatization, management agreed to convert the employee
pay-scales from the government structure to a corporate package
which would be commensurate with market salary rates. The result
was the UPS, which was uniformly rejected by the PTCL employees as a
"fraud" and part of an on-going effort by Etisalat to deprive them
of their basic rights. The UPS package offered an 8-13 percent pay
increase for non-management workers. Although this would have
raised salaries above the previous government pay-scale rates, the
PTCL employees argued that a 40 percent increase was needed to bring
their salaries up to market levels.
3. (U) Speaking to the press, Pakistan Telecom Employees Union
Collective Bargaining Agent (CBA),President Ziauddin, said that
since its privatization, the PTCL had resorted to various tactics to
exploit the employees, and gave the recently introduced Voluntary
Separation Scheme (VSS) as an example. He said that although the
VSS was meant to be voluntary, terminology such as "redundant" and
"surplus, not needed" were used in the calculation worksheets,
indicating that the scheme is a euphemism for lay-offs and implying
that workers who did not opt for the scheme would be fired. The
Voluntary Separation Scheme has not been offered to non-management
staff, although 25,000 to 30,000 management grade officers left PTCL
under the VSS. Ziauddin claimed that the UPS was a similar
exploitative effort aimed at non-management workers.
4. (U) After withdrawing the UPS on July 17, PTCL did not
immediately propose a new compensation package, prompting the
employees to continue striking. The striking workers also demanded
the reinstatement of some 200 to 250 workers who were fired outright
as well as direct action against police involved in a baton-charge
and teargas skirmish with PTCL employees protesting outside the
company's headquarters in Islamabad. On July 30, after protracted
negotiations, PTCL announced a 35 percent pay increase for
non-management grade workers. The workers' union accepted this
offer, bringing the strike to an end.
5. (U) The striking workers had threatened on July 28 to overwhelm
the circuits forcing a nationwide shutdown of the telephone system.
In response, the Army Rangers were ordered on stand-by on national
security grounds to assist local and provincial police in preventing
sabotage. PTCL's ability to provide service has been severely
affected by the strike which has led to long delays in handling
customer complaints and new line installation requests. Emergency
services' help lines were also adversely affected in some areas.
PTCL has 4.4 million customers nationally.
Comment
- - - -
6. (U) As Pakistan's largest telecoms provider, PTCL's woes created
a ripple effect beyond the telecommunications industry as services
that depend on reliable telecommunications were affected. Cell
phone services (especially from service providers other than PTCL)
were not significantly impacted and mitigated much of the strike's
effects on the general public. Service delays can also affect
internet connections in addition to the terrestrial telephone
network. PTCL was the source of a technical error that caused the
global outage of the popular video-sharing website, YouTube.com, in
February 2008. End comment.
ARCHIBALD
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: PGOV PREL ECON ECPS EINT PK
SUBJECT: TELECOM WORKERS END STRIKE THAT TIED UP LINES AND
THREATENED NATIONWIDE SHUTDOWN
Summary
- - - -
1. (U) Communications giant Pakistan Telecommunication Co. Ltd.
(PTCL) has been beset by labor-relations controversies since its
privatization in 2005. In the latest chapter, PTCL employees went
on a two-week strike, which ended July 30, over the introduction of
the Unified Pay Scale (UPS). The employees' union rejected the UPS
and threatened a nationwide shutdown of the telephone system until
PTCL management capitulated with a new compensation package offering
a 35 percent pay increase. The strike noticeably affected PTCL's
ability to provide service to its customers, although cell phone use
mitigated much of the strike's effects for the general public. End
summary.
2. (U) After the UAE telecom company, Etisalat, took over PTCL
following privatization, management agreed to convert the employee
pay-scales from the government structure to a corporate package
which would be commensurate with market salary rates. The result
was the UPS, which was uniformly rejected by the PTCL employees as a
"fraud" and part of an on-going effort by Etisalat to deprive them
of their basic rights. The UPS package offered an 8-13 percent pay
increase for non-management workers. Although this would have
raised salaries above the previous government pay-scale rates, the
PTCL employees argued that a 40 percent increase was needed to bring
their salaries up to market levels.
3. (U) Speaking to the press, Pakistan Telecom Employees Union
Collective Bargaining Agent (CBA),President Ziauddin, said that
since its privatization, the PTCL had resorted to various tactics to
exploit the employees, and gave the recently introduced Voluntary
Separation Scheme (VSS) as an example. He said that although the
VSS was meant to be voluntary, terminology such as "redundant" and
"surplus, not needed" were used in the calculation worksheets,
indicating that the scheme is a euphemism for lay-offs and implying
that workers who did not opt for the scheme would be fired. The
Voluntary Separation Scheme has not been offered to non-management
staff, although 25,000 to 30,000 management grade officers left PTCL
under the VSS. Ziauddin claimed that the UPS was a similar
exploitative effort aimed at non-management workers.
4. (U) After withdrawing the UPS on July 17, PTCL did not
immediately propose a new compensation package, prompting the
employees to continue striking. The striking workers also demanded
the reinstatement of some 200 to 250 workers who were fired outright
as well as direct action against police involved in a baton-charge
and teargas skirmish with PTCL employees protesting outside the
company's headquarters in Islamabad. On July 30, after protracted
negotiations, PTCL announced a 35 percent pay increase for
non-management grade workers. The workers' union accepted this
offer, bringing the strike to an end.
5. (U) The striking workers had threatened on July 28 to overwhelm
the circuits forcing a nationwide shutdown of the telephone system.
In response, the Army Rangers were ordered on stand-by on national
security grounds to assist local and provincial police in preventing
sabotage. PTCL's ability to provide service has been severely
affected by the strike which has led to long delays in handling
customer complaints and new line installation requests. Emergency
services' help lines were also adversely affected in some areas.
PTCL has 4.4 million customers nationally.
Comment
- - - -
6. (U) As Pakistan's largest telecoms provider, PTCL's woes created
a ripple effect beyond the telecommunications industry as services
that depend on reliable telecommunications were affected. Cell
phone services (especially from service providers other than PTCL)
were not significantly impacted and mitigated much of the strike's
effects on the general public. Service delays can also affect
internet connections in addition to the terrestrial telephone
network. PTCL was the source of a technical error that caused the
global outage of the popular video-sharing website, YouTube.com, in
February 2008. End comment.
ARCHIBALD