Islamabad – In a significant development, the federal government has reached a consensus with the employees’ union of the Utility Stores Corporation (USC) regarding a comprehensive severance package worth Rs28.2 billion.
The decision marks a major milestone in negotiations that have been ongoing for several months to address long-standing concerns of the corporation’s workforce.
According to officials familiar with the matter, the package is designed to provide financial stability and fair compensation to USC employees affected by restructuring plans and operational downsizing. The aim is to ensure that workers who have served the corporation for years are supported during the transition phase, reflecting the government’s commitment to protecting employee welfare while improving USC’s efficiency.
“The consensus represents a balanced approach—ensuring that USC employees receive due recognition for their service while enabling the corporation to streamline its operations,” an official stated.
The severance package includes gratuity, pension settlements, and other financial benefits, which will be disbursed in phases. Employees who opt for early retirement will also receive additional incentives under the plan.
Industry experts note that the USC, once a cornerstone of affordable consumer goods distribution in Pakistan, has faced financial challenges due to rising operational costs and market competition. The restructuring, paired with this employee-focused package, is seen as a step toward revitalizing the corporation.
Union representatives have expressed cautious optimism, stating that while the agreement addresses immediate concerns of USC employees, long-term reforms must focus on sustainability and job security.