SITE industries warn of mass layoffs, seek one-year SESSI contribution amnesty
KARACHI (News Desk): Industrialists in Karachi’s Sindh Industrial Trading Estate (SITE) have warned of possible massive layoffs amid increasingly challenging business conditions, urging the Sindh government to announce a one-year amnesty on Social Security Institution (SESSI) contributions to provide financial relief to industries and protect employment.
The demand was raised by SITE Association of Industry Patron Saleem Parekh during a meeting with Sindh Labour Secretary Sajid Jamal Abro, where industrialists highlighted mounting challenges facing the industrial sector, including labour-related costs, trade agreements and activities of labour unions.
Parekh cautioned that unfavourable business conditions could force industries to reduce their workforce on a large scale, stressing the need for proactive measures to prevent further pressure on industrial employment.
He called for a one-year contribution of amnesty for industries, arguing that temporary relief could help businesses manage financial pressures and sustain their operations.
The demand comes amid broader concerns among industrialists over the cost of doing business and the regulatory environment, with industry representatives seeking reforms to improve competitiveness and facilitate industrial activity.
During the meeting, SITE industrialists also raised concerns regarding labour inspections, with Association President Abdul Hadi pointing out that the Labour Department was conducting two inspections annually instead of one.
He urged the government to streamline the regulatory framework and improve coordination among the five departments operating under the Labour and Human Resources Department to achieve the objective of ease of doing business.
Industrial representatives also called for reforms in the tripartite labour committee, arguing that its existing representation and the understanding of some nominees were inadequate for addressing industrial and labour-related issues effectively.
Former SITE President Riaz Uddin stressed the need to improve representation in the committee, while senior industry members suggested identifying regulatory gaps and providing industries an opportunity to rectify violations before imposing penalties.
The meeting also highlighted concerns over the utilisation of Social Security contributions and the quality of healthcare services provided to registered workers.
SITE Labour Committee Chairman Khalid Riaz questioned the spending of SESSI contributions, particularly in relation to healthcare facilities at Kulsumbai Valika Social Security Hospital, and requested the Labour Secretary to direct the SESSI Commissioner to share the organisation’s audit reports with industry representatives.
Abdul Kadir Bilwani, Adviser to the Labour Committee, proposed allocating 25 per cent of the total SESSI contributions collected from SITE industries towards improving the hospital’s facilities, saying better healthcare services could encourage more industries to register their workers with SESSI.
Responding to industrialists’ concerns, Labour Secretary Sajid Jamal Abro announced that the Labour Department would establish a dedicated Labour Registration Helpdesk at the SITE Association of Industry every Tuesday and Thursday to facilitate worker registration.
He also urged industrialists to report any official demanding money for registration and encouraged businesses to use the S-BOSS digital platform for registration-related procedures.
On healthcare services, Abro said the government was working to upgrade Kulsumbai Valika Hospital under a public-private partnership model, adding that improvements in service delivery would become visible soon.
The meeting also discussed the HIV outbreak at Valika Hospital last year. The Labour Secretary said action had been taken against those found responsible, while a committee had been constituted under the Chief Secretary Sindh. He added that an endowment fund of Rs2 billion had been established and affected children’s families were receiving monthly financial assistance of Rs40,000.
The meeting was attended by SITE industrialists and representatives, including Majyd Aziz, Ahmed Azeem Alvi, Ahmed Zulfiqar Chaudhry, Muhammad Hussain Moosani, Muhammad Riaz Dhedhi, Muhammad Tahir Goreja, Muhammad Rizwan Lakhany and others.