The union has demanded that the pay revisions must be with effect from January 2017
A Bharat Sanchar Nigam (BSNL) employees' union has demanded pay revisions before the Centre sanctions voluntary retirement scheme (VRS), Financial Express reported.
The All India Bharat Sanchar Nigam Executives Association (AIBSNEA), in a letter to telecom minister Ravi Shankar Prasad, demanded that the pay revisions must be with effect from January 2017, the paper added.
Moneycontrol could not independently verify the report.
This could be a hiccup for the government which is trying to consolidate the number of BSNL employees from its current 1.65 lakh strong force. Since the VRS package is determined on the last-drawn salary, an upward revision would bloat costs above estimated numbers.
The Cabinet sanctioned a Rs 70,000 crore bailout package for BSNL in October, of which nearly Rs 30,000 crore would be used to conduct the VRS process.
The letter mentions that they would like their industrial dearness allowance (IDA) be merged up to 50 percent with basic pay.
Currently, the employees’ IDA is 119.5 percent of the basic salary. This means, for Rs 100 basic pay with IDA added, it would be Rs 220. Under the proposed revision, the basic would increase to Rs 150; it would be Rs 255 with IDA added.
The publication said analysts feel the government should reject the union’s demand as complying with it would defeat the purpose of the bail-out plan.On the other hand, direct recruits to BSNL enjoyed their last pay revision in 2007. They missed the 2017 revisions as BSNL registered losses and did not qualify under the department of public enterprises guidelines.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.