Wednesday, June 22, 2011

DoT direct VRS in BSNL after BRPSE

The department of telecommunications (DoT) has directed state-owned Bharat Sanchar Nigam Ltd to prepare a voluntary retirement scheme (VRS) for 50,000 of the latter’s employees. The move will require a one-time payment of Rs 4,000-5,000 crore, for which DoT would give financial support. This is part of the government’s measures to get loss-making BSNL back on the rails. The latter has 280,000 employees, far higher than the industry standard. BSNL chairman and managing director R K Upadhyay said, “The Board for Reconstruction of Public Sector Enterprises had recommended we give VRS to our employees. The exercise is still on and we have not taken any decision on it yet.” For the first time since inception in 2000, BSNL had posted a loss, of Rs 1,823 crore in 2009-10. It is expected to post one of Rs 2,500 crore for 2010-11.
Though the unions and association in BSNL have always opposed VRS scheme, there is an urgent need for giving some attractive opportunity to those who are voluntarily wanting to take retirement to create win-win situation both for the employees and organization. BSNL suggest two VRS option to lure employees to opt for VRS Scheme. One option also suggest age of VRS as 55 Years. BSNL must work hard on this issue to revive and opt Compulsory Retirement option intead of VRS as VRS may be opted by employees who are working hard for organization while other class of workforce may stay with BSNL which may cost a lot to BSNL or any Government Organization.