BSNL employees’ union blames management for cash crunch, slams second VRS plan 

BSNL

The BSNL Employees' Union (BSNLEU) has strongly criticised the management of the state-run telecom operator for failing to boost revenue generation and blamed flawed government policies for the company's ongoing financial troubles. The union has urged the management to reconsider and withdraw its decision to implement a second Voluntary Retirement Scheme (VRS).

The union’s criticism follows reports that BSNL's board of directors plans to cut the workforce by 35 percent through another round of VRS.

“BSNL's financial problems are not due to its employee strength but rather the management's inability to significantly increase revenue generation. We strongly urge the management to withdraw its decision to implement a second VRS,” said P Abhimanyu, general secretary of BSNLEU, in a letter to CMD Robert J Ravi on December 30.

The union also highlighted the need for a comprehensive review of BSNL’s policies and managerial inefficiencies, calling them the “true barriers” to the company's revival and growth.

As of March 2024, BSNL employs 29,750 executives and 26,435 non-executives. The first VRS, implemented in 2020, resulted in 80,000 employees opting for retirement—more than double the anticipated 30,000–35,000.

“There is no justification for implementing another VRS in BSNL. The main recognised trade union strongly opposes this decision and demands its withdrawal,” the union stated. It further cited the Mahanagar Telephone Nigam Limited (MTNL) case, where multiple VRS schemes failed to improve financial performance, leading the company towards closure.

BSNL reportedly spends 38 percent of its revenue on employee salaries, significantly higher than private operators like Jio and Airtel, whose salary expenditures are in single digits. The union argued this comparison is skewed as private operators earn significantly higher revenues, making their salary expenses proportionally smaller.

Despite receiving revival packages in 2019, 2022, and 2023, BSNL has struggled to enhance its revenue. Unlike Jio and Airtel, which have completed pan-India 5G rollouts, BSNL relies on outdated 2G and 3G services.

The union alleged that delays in deploying BSNL’s 4G equipment by TCS have led to revenue losses and customer dissatisfaction. “Wherever 4G installations are completed, customers are still facing issues with poor-quality voice and data services,” the union noted.

The union also criticised government policies restricting BSNL from procuring 4G equipment from reputed international vendors like Nokia, Ericsson, and Samsung, instead mandating purchases only from Indian vendors. “This denies BSNL a level-playing field,” it said.

The Parliamentary Committee on Public Undertakings recently expressed concern over the quality of BSNL’s 4G services using TCS equipment. The committee recommended that BSNL seek assistance from foreign technology companies to address the challenges in deploying TCS’s 4G infrastructure.

The All India Graduate Engineers and Telecom Officers Association (AIGETOA) has also opposed the second VRS proposal, criticizing the management for not addressing long-pending HR issues.

“AIGETOA categorically opposes this unilateral proposal, especially since it was made without consulting stakeholders or addressing issues like pay, pension, promotion, and the 3rd PRC,” said Ravil Shil Verma, General Secretary of AIGETOA, in a letter to the BSNL chief.

Verma highlighted that BSNL recruits would receive a meagre pension of Rs 3,000–4,000 if they opt for VRS now, which he called grossly inadequate. “Any VRS scheme without proper superannuation benefits and sufficient social security for BSNL recruits would be another grave injustice in the 24 years of BSNL’s existence,” he added.

Both the unions stressed that addressing policy flaws, inefficiencies, and delayed technology upgrades should precede workforce reductions to ensure BSNL’s revival and sustainability.