Utility Stores Employees Protest Over Unpaid Salaries, Demand Severance

Thousands of current and former employees of Utility Stores Corporation (USC) gathered at the USC headquarters in Islamabad’s Blue Area.

They protested over unpaid salaries and severance after mass layoffs on September 1, 2025. More than 7,000 employees were dismissed that day, on top of 4,000 laid off earlier, with none having received their dues.

The demonstrators included 832 staffers still working in head offices, zonal, and regional offices.

They announced the closure of operations until overdue wages are paid, refusing to return until management clears their salaries. Union leaders demanded immediate payment of severance and benefits in accordance with USC service rules for all terminated employees.

Workers say salaries for April, July, August, and September remain unpaid, causing severe hardship for families.

Union representatives accused the federal government of “economic murder,” claiming employees are even struggling with funeral expenses. They alleged that delayed payments are a tactic to pressure workers into accepting forced severance deals.

According to the unions, more than 11,000 employees have been terminated without compensation nationwide. They claim the government is reneging on legal obligations and trying to blackmail workers into surrendering their rights.

Protesters also raised slogans against the Secretary of Industries, holding him responsible for the crisis.

The unions warned that if demands are not met without delay, workers from across Pakistan will converge on Islamabad for a nationwide protest. Until salaries and severance are disbursed, they say, USC offices will remain closed in every region.

USC has struggled financially for years. Its closure was formally initiated on July 31, 2025, under a government plan to wind down operations nationwide.

The Economic Coordination Committee (ECC) approved a Rs 30.216 billion supplementary grant to cover severance, dues, and salaries for affected employees as part of the shutdown process.

Earlier, the Public Accounts Committee (PAC) had warned of worsening conditions with more than 14,000 USC workers reportedly affected by unpaid wages and institutional failure, prompting calls for a bailout or rescue package.

In the lead-up to the shutdown, union members had resisted attempts to end USC operations by July 10, and pledged protests, sit-ins, and legal action to protect employee rights.

The effectiveness of the supplementary grant and actual disbursement of payments will test the state’s ability to manage closures of large state-run enterprises without leaving employees in limbo.