Moneycontrol Be a Pro
Get App
you are here: HomeNewsBusiness
Last Updated : Sep 17, 2019 02:56 PM IST | Source: Moneycontrol.com

BHEL, BSNL propose pay cuts over unmet targets, cash crunch: Report

BSNL has informed employees about its intention to impose a penalty on non-achievement of targets, the report said.

Moneycontrol News @moneycontrolcom

A group of state-run companies have proposed salary cuts over unmet targets and as austerity measures, Business Standard reports.

Bharat Sanchar Nigam (BSNL) has informed employees about its plan to impose a penalty for non-achievement of targets, the report said.

The Department of Telecommunications has asked the company to clarify the reason for the warnings sent to the staff.

Close

South Eastern Coalfields (SECL), Coal India’s largest subsidiary, too, had proposed a 25 percent cut in senior employees’ salaries following unmet financial and production targets, the report said. The move was rejected by the SECL board.

Bharat Heavy Electrical (BHEL) has told employees that it will discontinue encashment of unused earned leaves following stressed cash flow.

Moneycontrol could not independently verify the story.

A BHEL spokesperson didn’t responded when approached by Business Standard.

BHEL attributed the cash crunch to payment delays from private power producers, the report added.

The SECL board rejected the proposal as being too harsh, sources told the newspaper. Independent directors wanted to hold the company accountable at a time when it is failing to meet its targets.

In the case of BSNL, letters were being sent to employees across all branches who had failed to meet landline and broadband sale targets, the report said.

“We have asked the company to explain how they can suo motu decide to cut salaries of their employees. It is against the labour laws,” a senior BSNL official told the paper.

 

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Sep 17, 2019 02:53 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant