Vsnl Staff Threaten Strike Over Pricing Of Share Offer

Employees of the navratna Videsh Sanchar Nigam Ltd (VSNL) have threatened to strike work if the government does not keep its promise of divesting a part of the companys stake in their favour.

While company chief B K Syngal has claimed profits of over Rs 500 crore for 1996-97, the staff say this will push the stock value up and they in turn will have to pay a higher price when shares are offered to them.

Sources in the Joint Action Front (JAF) of VSNL said that during earlier negotiations the shares for employees were marked at Rs 123 per share. Now, after the success of the GDR issue, the share value has risensubstantially and the government has said they will offer it to employees at 15 per cent below the prevailing market price.

 

They said with the market price estimated at around Rs 900 per share, employees will have to fork out Rs 765 per share. With employees offered 200 shares each this will work to over Rs 1.5 lakh which was way beyond the means of most VSNL staff.

Telecom secretary A V Gokak said a cabinet note had been prepared on VSNL divestment in favour of employees and a final decision will have to be taken by the cabinet. The price and other details will be arrived at after the cabinet approval. JAF sources said a mass casual leave agitation had been planned for November 11 to press for an early decision. A total strike program was also on the cards if the November 11 agitation did not succeed.

They said if the government delayed divestment, the employees would not be in a position to buy as they apprehended further rise in the share price. If the government formula of 15 per cent below market price was applied, then the shares would be beyond the reach of most employees.

Govts offer at 15% below the market value will put the scrip beyond the reach of most of the staff in the wake of zooming price