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BSNL union opposes recommendations
BS Reporter / New Delhi Mar 05, 2010, 01:06 IST

The employees’ union of BSNL has strongly opposed the recommendations of the Sam Pitroda committee, which has suggested reducing the company’s workforce by a third and divesting up to 30 per cent stake through a strategic investor or an initial public offer (IPO).

“We strongly oppose the suggestions by Pitroda committee. There is no necessity of reducing the workforce; every year about 10,000 people are retiring,” BSNL Employees Union head, V A N Namboodiri said.

“We would have a meeting of all the unions next week and decide our next plan of action, whether to go on strike against this or not,” he added.

The unions had already been opposing BSNL’s IPO for the last two years, when the government was planning to divest just 10 per cent stake. Namboodiri said the unions are still against the idea of privatising the company.

For the first time, BSNL is expected to post a loss due to increased competition and declining market share, which stands at about 12 per cent currently.

However, it would be very difficult to implement the suggestions with the strong opposition from unions.

“BSNL is under severe pressure and is making losses for the first time due to increased competition, a declining fixed-line market, antiquated processes and procedural bottleneck especially related to purchase of equipment, bureaucratic and government dependent decision-making,” the committee noted.

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Sorry, comments to this story are closed
Latest Messages
Posted by: v.vijayamohan
The Unions can oppose the Sam Pitroda committee recommendations. But, they must also come forward with their own viable recommendations for the survival and running of BSNL. In the absence of such forward thinking, BSNL is likely to slip deep into RED - never to recover finally.Secondly, opposing VRS - which is PURELY VOLUNTARY - and will only be taken by absolutely willing persons, is totally meaningless. For many, VRS will be a big boon personally.
Posted by: murthy
what is wrong if old people are retired.even if some 30% of staff are retired,still 2 lakh employees are avilable with bsnl.they can deliver lot of good if they want to do.
Posted by: K.Mundanad
It is very difficult to get rid off dead wood, mainly in the public sector. A liberal VRS Scheme, coupled with substantially imroved pay-package for those remaining, at the time of periodical revision of 'Union Agreement', may be a possible solution.
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