ISLAMABAD, 14 June 2005 — Pakistan warned that strike leaders opposing the privatization of the country’s largest telephone company could be tried as “terrorists” as troops continued to guard the firm’s key installations yesterday.
Trade unions said around 400 of their senior members had been arrested as the government sought to crack down on disruption before the planned sale of some 26 percent of Pakistan Telecommunication Co. Ltd. (PTCL) on June 18.
Interior Minister Aftab Ahmed Sherpao said the country’s legal tribunal for trade union matters had on Sunday branded a call for industrial action against the PTCL sale “an illegal step”.
“Those threatening the government against the privatization of PTCL are terrorists according to the law. They will face trouble if they continue their anti-state activities,” he said.
Troops and police seized control of the firm’s premises on Sunday following the government’s announcement the previous day that bids would be invited for the 26 percent stake in PTCL at the end of this week.
In a predawn attack arsonists torched two telephone exchanges in the eastern city of Lahore and cut off services to thousands of subscribers, police said.
“We have registered a case of terrorism and are investigating the matter” police officer Mohammad Aslam said.
Union leaders have threatened to paralyze services if the decision is not withdrawn by tomorrow. The government last week postponed the sell-off to end a 10-day standoff with 55,000 PTCL workers.
One senior union member, Mohammed Rashid, said the main leaders were now underground to avoid arrest.
“The authorities have already arrested around 400 of our leaders. If our demands are not accepted within 24 hours we will jam the entire system,” he said. The privatization process should be stopped immediately and the detainees released forthwith, he added.
The unions are also demanding that PTCL absorb as regular employees some 4,800 temporary workers and allocate job quotas for their children.
The government has promised an employee welfare package which ensures job security, education of employees’ children and health coverage as well as a 30 percent wage increase.
In a statement, interior minister Sherpao said strict action would be taken against those who violate the tribunal verdict. He said anyone involved in such activities would be dealt with “with an iron hand”.
Officials have said profit-making PTCL faces the possibility of a sharp decline in its revenues as the private sector mobile phone companies spark intense competition in the telecom market.
PTCL has a total of 5.05 million fixed phone clients whereas the number of cell phone users has risen to 10.54 million in the past few years.
The country’s privatization commission has already short-listed several foreign telecoms conglomerates as potential buyers. They include Singapore Telecom (SingTel), Emirates Telecommunications Corp. (Etisalat), Telekom Malaysia, MTC of Kuwait, Saudi Oger, Turkcell, China Mobile Communication Corp. and Saudi Telecommunications Co.
Pakistan Institute of Labor Education Director B. M. Kutti criticized the takeover of PTCL by troops as a violation of basic labor rights. “We are against privatization and more so when an organization which earns impressive profits is brought under the hammer,” he said.
PTCL earned 29 billion rupees ($483.33 million) in profits for the year ended June 2004. The company has total of 1.39 billion shares with a current market price of 71.50 rupees ($1.20) a share.
