Privatisation of Pakistan Steel Mills

by Naveed Aftab (Pakistan Steel Mills) Karachi, Pakistan

Pakistan Steel Karachi, the biggest industrial complex in Pakistan, is under attack by the Musharraf dictatorship. The regime wants to privatise the massive plant. This huge mill was planned and inaugurated by Zulifqar Ali Bhutto, founder and chairman of the Pakistan Peoples Party on November 30, 1973. Bhutto had signed a contract with the former USSR to help build the project. The project was estimated to cost Rs 10 billion but was completed at a cost of Rs 30 billion and took ten years to finish. The steel mill project provided 20,000 jobs for workers from all over Pakistan. Unfortunately, from the very beginning intrigues were launched by the bureaucracy against the workers in order to destroy their moral and ruin their potential. A propaganda campaign was started in the media to give the impression that the project was "a burden on the national economy" and that it was a white elephant. This campaign gradually became noisier and the idea that there were 8000 surplus workers who were a burden and needed to be gotten rid of was widely propagated. However, the bureaucracy and the press found it impossible to attack the workers due to the political strength and unity of the militant trade unions. With its propaganda having failed and its aims in ruins, the bureaucracy resorted to the traditional and criminal tactics of the ruling class the tactic of divide and rule. In 1986 the notorious Zia-ul-haq dictatorship began a series of brutal political assaults in Pakistan. The ruling class succeeded in generating racial conflicts among workers, which not only divided the workers but also weakened the labor movement. This tactic of divide and rule also affected Pakistan Steel. In 1988 the trade unions were divided on racial grounds which resulted in bloody hatred and ended the traditional revolutionary unity of the unions. The labour movement was constantly harassed and its leadership degenerated and became demoralised. In 1992 Prime Minister Nawaz Sharif appointed a General, Sabeeh Qamar-uz-zaman, as chairman of Pakistan Steel. He was given the task of improving the situation and normalizing the working conditions. He imposed an undeclared ban on the trade unions at Pakistan Steel. Terror and the harassment of the unions were enforced in the name of discipline. An internal security intelligence unit, the FIU, was also established and was headed by an army colonel. This notorious intelligence unit "discovered" that 1500 workers were a security risk. These workers were punished and removed from their jobs. In 1995 Benazir Bhutto, in her second term in office, reinstated most of these workers. However not all of them were reinstated. During his second tenure in 1997, Nawaz Sharif introduced many

reactionary anti-labour laws. The ex-chief of the FIU, Colonel Afzal, a batchmate of General Musharraf, was appointed as managing director of Pakistan Steel. This gentleman was twice suspended on corruption charges from his previous post as chief of the FIU, yet somehow he still merited the promotion to chairman. After Musharraf overthrew Nawaz Sharif in 1999, he introduced his Seven Point Agenda to the nation. Not surprisingly his top priority was the introduction of the brutal policies of rightsizing and downsizing, which in practice meant maximizing unemployment. These policies were sweetened with another Black Law: the Industrial Relations Ordinance 2000. In June 2000 the chairman of Pakistan Steel announced the immediate dismissal of 436 workers. The workers were informed in their dismissal orders that their services were no longer required. This was just the beginning however, and a new policy was enforced where workers were requested to enjoy the benefits of the VRP (Volunteer Retirement Policy). All of these laws and policies were exercised in the worst manner in Pakistan Steel; it became a model and an example to whole country, and to all workers and trade unions. 8500 jobs were ruthlessly cut by these barbaric policies. These sackings affected the workers deeply, and led to a change in consciousness. On December 31, 2001 the workers of Pakistan Steel organised a general strike against the anti-labor policies of the chairman and the government. The workers blocked all roads and access to the mill. On February 7, 2003 the workers again organised a strike. The authorities attempted to stop the strike by using the tactics of delay. But this only served to provoke the workers, and on March 8, 2003 the workers again blocked the roads. This time they also occupied the mill. This action paralyzed the authorities but unfortunately the struggle was lost because the workers were betrayed at the negotiating table by the trade union leadership. It was apparent that this struggle could have galvanized the working class nationally and that it could have found a mass basis. However, in the end it was drowned in petty compromises and conciliations. On December 30, 2003 Chairman Afzal was suddenly dismissed and again a General, Abdul Qayum was appointed as the new chairman. He immediate gave the impression to the workers that the situation would be totally reversed and that the workers would not have to fear any more suspensions or dismissals. He also announced an extension plan for Pakistan Steel that would create more jobs. Last year production at Pakistan Steel broke all records, and an historical net profit of Rs 6.5 billion was made. Following this marvelous output, the productivity of the workers made another Rs 3 billion in the first quarter of this year. However, just before initiating the extension plan, it was announced that Pakistan Steel would be privatised rather than proceed with the extension. This was a clear declaration of a severe attack on the rights of the workers. This was a clear attack on their jobs and their working conditions. This declaration provoked 12,500 workers who are drawing the conclusion that they need to fight back. There is no doubt that the only force that can fight, resist, and defeat this attack, is the workers of Pakistan Steel themselves. Discontent among the workers is increasing day by day, and there is now a mood and desire to unite all the trade unions on a single point agenda: unite to fight and

fight to win. We are seeking the solidarity and support of our brothers and sisters: the workers of the world. This is not only our struggle, it is the struggle of the world working class! Step forward and help us in our fight against economic terrorism and privatisation! For contact information please visit the PTUDC contact page.

May 2005

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