Earlier, to cut down on expenditure, BSNL has frozen employee benefits to sustain the current market situation.
The employees of Bharat Sanchar Nigam Limited on Monday began their 3-day strike to protest the prolonged delay in revision of wages and allotment of 4G spectrum, among other reasons. Fear of closure and disinvestment are also looming over the state-owned telecom firm.
Earlier, to cut down on expenditure, BSNL has frozen employee benefits to sustain the current market situation.
Read: BSNL may cut 54,000 workforce
Meanwhile, a BSNL employee union on Monday charged the government of not making sincere attempts to resolve problems faced by the PSU to benefit a rival telecom firm, while workers went on a three-day strike to press for their demands.
The union levelled charges a day after the telecom department announced that it was engaging with the BSNL management and representatives of the unions and associations to support their reasonable demands.
Read: BSNL freezes employee benefits, plans VRS package
Employees who are protesting want spectrum allocation to the company for 4G services, approval of land management policy of BSNL, implementation of pay revision committee, adjustment of pension contribution etc. "Government issued a bogus statement on Sunday that it will engage with BSNL employees and our main demand is wage revision with 15 per cent fitment. We understand financial status of BSNL and we conveyed to DoT that we will accept 5 per cent fitment instead of 15 per cent. Still it did not reflect in their statement," All India Unions and Associations of Bharat Sanchar Nigam Limited (AUAB) Convenor P Abhimanyu told PTI.
Below we have explained the BSNL crisis in detail
1. Why BSNL employees went on strike?
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BSNL employees have been demanding 4G spectrum, land monetisation permission for the last two years but the government has been delaying it
2. BSNL's struggle for survival
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BSNL is struggling for its srvival. It has also submitted a preliminary report by IIM Ahmedabad for the revival of the company. A final report will be submitted soon. Among other measures, the report suggests giving VRS (voluntary retirement scheme) to about 35,000 employees at a cost of Rs 13,000 crore.
According to the Telecom Regulatory Authority of India (TRAI), BSNL was amongst several telcos that posted a fall in adjusted gross revenue which recorded a fall of 15.32 per cent at Rs 1,925.33 crore.
3. BSNL to cut its workforce?
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Loss making BSNL is reportedly mulling to cut 54,000 workers by reducing the retirement age to 58. According to a report published in Deccan Herald, BSNL will also provide voluntary retirement scheme (VRS) to its employees.
Citing sources the report further told that in a board meeting which is scheduled on February 15, the members are likely to discuss on these points.
If implemented, the move is likely to reduce the employee count of the BSNL by 33,568 employees which would save BSNL an estimated amount of Rs 13,895 crore over the next six years. (Representative Image)
