The department of telecommunications (DoT) has reportedly scrapped state-run telecom operator BSNL’s proposal to cut down its workforce by 21,000 citing the number as too low considering the financial burden.
DoT has asked BSNL to formulate a revised plan for offloading its workforce through schemes such as voluntary retirement scheme (VRS). The department which has been reviewing the performance of the loss-making public sector unit (PSU) is of the view that BSNL needs to slash its workforce by about 1,00,000, as suggested by Sam Pitroda reports stated.
The move, reports added, is part of the government’s initiatives to revive the telco which is struggling to survive in the industry due to high employee cost, declining revenues and low tariffs. The PSU has an employee base of 2,80,000.
According to reports, BSNL’s sister concern MTNL, has asked DoT to clear a VRS plan that would be offered to over 15,000 employees out of the total 45,000. After the company’s board gave it nod to the plan, MTNL had asked DoT to help them financially – Rs 2,000-3,000 crore to implement the retirement scheme. The state-run telco has an employee base of about 45,000.
Reports further added that BSNL will have to make a one time payment of about Rs. 40 – 50 bn for its VRS scheme, for which DoT will support it financially.
“The VRS scheme will help us in reducing our wage bill annually and help us keeping our costs under control. Currently we have a surplus work force and according to our estimates we should not have more than 20,000 employees,” reports quoted an MTNL official as saying.
