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Wage Memorandum Copy

VIEWS: 18 PAGES: 34

  • pg 1
									Leaders of the United Forum met the
CMD, BSNL on 07.08.2008 and
presented the Memorandum on Wage
Revision. They requested the CMD to
get the necessary approval from DoT
so that wage negotiations in BSNL can
start early.




       UNITED FORUM OF BSNL UNIONS
                      BSNL EMPLOYEES UNION
              NATIONAL UNION OF BSNL WORKERS (FNTO)
                  BSNL WORKERS RASHTRIYA UNION
              TELECOM EMPLOYEES PROGRESSIVE UNION
   ALL INDIA BACKWARD CLASSES TELECOM EMPLOYEES SANGATHAN
UF/Wage Revision                                           Dated: 24.07.2008
To,
The Chairman & Managing Director,
Bharat Sanchar Nigam Limited,
BSNL Bhawan,
New Delhi
Sir,
Sub:- Submission of memorandum on the demands pertaining to wage revision w.e.f.
       01.01.2007.


                                                                              1
W e are enclosing herewith a memorandum on the demands pertaining to wage revision, with effect
from 01.01.2007. W e may submit supplementary memorandum if required, at a later stage.
It is requested to start negotiation on these demands, immediately, without any further loss of time.

                                          Yours sincerely

      Sd/-                                                                       Sd/-
[V.A.N.Namboodiri]                                                      [K. Vallinayagam]
General Secretary                                                       General Secretary
BSNLEU                                                                  NUBSNLW (FNTO)

    Sd/-                               Sd/-                                Sd/-
[S.P. Sharma]                   [V. Subburaman]                         [A.D. Patil]
President                       General Secretary                       General Secretary
BSNLWRU                         TEPU                                    AIBCTES



                Memorandum on Wage revision
INTRODUCTION

The declared vision of BSNL is “to become the largest telecom service provider in
South East Asia” and the mission is “to provide world class – state of art technology
telecom services on demand at affordable price” and “to provide world class telecom
infrastructure to develop the country’s economy.”

In consonance with the declared vision and mission, BSNL is exploring its best to
establish an era of information explosion. Day after day, changes introduced in terms
of technology go to establish the rapid growth and introduction of new services by
the company for the benefit of users. The system is constantly undergoing changes
with innovations and increased use of fast developing technology.

Besides handling a variety of infrastructure by sophisticated handling techniques, the
constantly undergoing changes with new innovations and increased use of fast
developing technology, added with exposure to stiff market competition, the workers
are required to ensure efficiency and productivity, within the limited resources left at
their disposal to achieve the vision and mission of BSNL.

As a Public Sector Enterprise it is the declared policy of BSNL towards the society,
particularly as a social responsibility, to strive to provide a balance between the
provision of universal service to all uncovered areas, including the rural areas, and
the provision of high level services capable of meeting the needs of the country’s
economy, encourage development of the telecommunication facilities in remote, hilly
and tribal areas of the country.

It is needless to pinpoint that when it is necessary to provide equal level playing field
for all players, it is also equally important to provide an equal level playing ground for
the workers in the matter of wages in comparison with other PSUs and in
comparison with the executives in the PSUs.

“The single most important factor to achieve efficiency combined with productivity is
motivation of the workers, and to create a sense of satisfaction in employment.”

                                                                                                   2
In this connection it is relevant to note the importance of Central Public Sector
Enterprises (CPSEs) in the economy and society and the place of BSNL among the
CPSEs.

THE ROLE OF CPSEs IN THE ECONOMY AND SOCIETY

We are proud that Central Public Sector Enterprises (CPSEs) including our BSNL
are playing an important and praise worthy role in developing Indian economy and
society.

When India achieved independence, it was facing problems like predominant
agricultural economy with weak industrial base, inequalities in income, low level of
employment and wages and savings, regional imbalances, inadequate investments
and infrastructure facilities. Indian big capitalists have not come forward to invest in
large-scale industries and infrastructure like railways, telecom, heavy machinery,
electricity, petroleum, airports, ports, shipyards etc. These industries require
enormous investments, which were not available with the big capitalists. Moreover,
investment in these sectors will not yield quick returns, unlike industries producing
consumer goods. However, the Indian big capitalists           wanted this infrastructure
since without the infrastructure and machinery, their industries in private sector
cannot develop. However, the big capitalists in America, England etc were against
industrial development and self-reliance of India. They have advised the Indian
Government through their Governments to concentrate on agriculture only. In such a
situation, the big capitalists in India wanted the Government itself to build the
infrastructure and heavy industries. Hence the Indian Government has started public
sector and public sector industries with the money collected from the people through
taxes, duties etc. The socialist countries at that time headed by Soviet Union helped
in building the public sector industries. The Indian big capitalists have utilized Public
Sector for their development. They have got enormous profits as suppliers of raw
materials and other intermediate goods to the Public Sector and as contractors to the
public sector. Besides, they have got products and services of the public sector at
cheap rates. After thus developing themselves by using and misusing public sector
for several decades and gathering enormous money, the Indian big capitalists
wanted to loot the highly developed public sector, in collaboration with the foreign big
capitalists. They wanted to buy public sector companies at cheap rates in order to
get enormous profits. That was how the liberalization, privatization and globalization
policies were initiated by the Government of India in 1991 and the process of
privatization of Public Sector Units has started.

However, there was a big resistance to this privatization policy. Trade Unions have
struggled against these policies. The left and democratic forces have opposed these
policies. Several times the people have defeated the strong proponents of these
policies in the elections to the parliament and assemblies. The present UPA
Government was compelled to announce in its Common Minimum Program that the
profit making PSUs will not be privatized. It was also compelled to abolish the
Ministry of disinvestments. Whenever the UPA government tried for disinvestment of
profitable PSUs, there was strong resentment from trade unions, people and left
parties and sometimes even other political parties, and the Government was
compelled to withdraw such proposals. This shows how the people are appreciating

                                                                                       3
the role of the PSUs in the economy and society. This is because the Public Sector
is the foundation for the self-reliance of our economy. It has helped to reduce
regional inequalities. It has provided jobs in considerable number to the people. It
has developed the infrastructure of the country. It has carried out its social
responsibility and helped in developing backward regions. It has helped the cause of
social justice by providing reservation for SC/ST sections of the people in jobs and
promotions. It has helped in developing the science and research and technology. It
has developed the skills of its personnel. It has contributed significantly to the
exchequer. Compared to this, the role of private sector has no significant and bright
aspects except for acquiring enormous profits at the cost of the people.

At present (as on 31.03.2007), there are 247 CPSEs (Central Public Sector
Enterprises). In the year 2005-06, they have contributed around 11.12% to the GDP
(Gross Domestic Production) at market price. The investments in CPSEs was Rs.29
crores in 5 enterprises on 01.04.1951 and as on 31.03.2007 it was Rs.4,21,089
crores in 247 enterprises. The turnover of CPSEs has increased from Rs 2, 76, 002
crores in 1997-98 to Rs.9,64,410 crores in 2006-07, recording a growth of 337%.
The net profit of the CPSEs has increased from Rs.13582 crores in 1997-98 to Rs.
81550 crores in 2006-07, recording a growth of 599%. The dividend paid by the
CPSEs to the Government in 1997-98 was Rs.3609 crores and it increased to Rs.
26805 in 2006-07 recording a growth of 643%. The total contribution of CPSEs to
the Central exchequer (includes dividend, taxes, duties, interest, fee, charges etc) in
2005-06 was Rs.1,25,465 crores and it increased to Rs.1,47,635 crores in 2006-07
recording a growth of 17.68%. In comparison, the leading private sector corporate
M/S Reliance Industries Limited has earned a net profit of Rs.11943 crores and paid
a dividend of Rs.1440 crores only in 2006-07.

The reserves and surpluses of CPSEs went up from Rs.3,59,181 crores in 2005-06
to Rs.4,16,469 crores in 2006-07, recording a growth of 16% whereas, the reserves
and surplus of Reliance Industries Limited (the leading private corporate industry)
was only Rs.62514 crores in 2006-07.

The enormous reserves and surpluses available with the CPSEs could be utilized for
developing productive assets. However, the Government is not allowing this.0ut of
these huge reserves and surpluses available with the CPSEs, only 4 % (Rs.17383
crores) was used as financial investment during 2006-07. The reason for keeping
this huge surplus and reserve of CPSEs unutilized is only to sell the profitable
CPSEs at cheap rates to the Indian and foreign big capitalists and to handover to
them these huge reserves and surpluses as bonus. It is to be noted that VSNL was
sold to Tata’s for a mere Rs.1320 crores and along with it, its cash reserves of
Rs.1200 crores were also handed over.

The Government’s statement that the IPO/disinvestment of profitable PSUs was
needed for mobilizing funds for the development is not true because as detailed
above, the PSUs are having huge reserves and surpluses. This statement was
intended to conceal the real intention of selling PSUs at throwaway prices to the
Indian and foreign big capitalists. That is why Trade Unions are opposing
disinvestment. W e oppose the recommendation of the second Pay review committee
(appointed for submitting recommendations on revised pay structure for executives
in PSUs) for partial disinvestment of PSUs. It is nothing but starting privatization of

                                                                                     4
PSUs in phased manner. Trade Unions are demanding withdrawal of any proposal of
disinvestment of PSUs and to use the reserve and surplus for their development.

EMPLOYMENT IN CPSEs

While the investment, turn over, profit, dividend of the PSUs are increasing in a big
way and their contribution to the central exchequer is increasing continuously and
significantly, the number of employees in the CPSUs is decreasing. The total number
of employees in CPSUs excluding contract/casual labor was 19.59 lakhs in 1997-98.
Even after addition of about 3.5 lakhs of DoT employees absorbed in BSNL, the total
number of employees came down to 16.14 lakhs in 2006-07.



SHARE OF WAGES IN THE TURNOVER OF CPSUs

The per capita emoluments in CPSUs were Rs.1,29,582 in 1997-98. It increased to
Rs.3,25,738 in 2006-07. However, the share of wages as % in turnover has come
down significantly from 19.19% in 1997-98 to 5.45% in 2006-07. This shows that the
employees in the CPSUs have created more wealth but without proportionate
increase in wages.

WAGE REVISION IN CENTRAL PSUs

Different methods are adopted for salary revision of executives and for non-
executives. W hile wage revision of executives and non-unionized supervisors is
done through a Pay Revision Committee appointed by the Government, the wage
settlement of non-executives is arrived through bilateral negotiations between the
management and the unions. The last wage settlement (6th round) was w.e.f.
01.01.1997. In the case of BSNL opted DoT/DTS/DTO employees, the last revision
was w.e.f. 01.01.1996, i.e. 11 years ago as per recommendations of 5th Central Pay
Commission. The present one is the 7th round of negotiations.

6th CENTRAL PAY COMMISSION

The Government constituted the 6th Central Pay Commission with Justice
B.N.Srikrishna as Chairman vide Resolution No.5/2/2006-E III (A) dated 5th October
2006 to examine and recommend structure of pay, allowances and other facilities /
benefits for the Central Government employees. The 6th CPC submitted its
recommendations on 24th March 2008.

2nd PAY REVISION COMMITTEE FOR EXECUTIVES IN CPSEs

The Government of India vide Resolution dated 30th November 2006 under No.2
(10)/06/DPE-W C issued notification appointing a Pay Revision Committee with Mr.
Justice M.J.Rao, Retd. Judge, Supreme Court for recommending the pay,
allowances, perquisites and benefits for the executives in the Central Public Sector
Enterprises. The committee submitted the recommendations to the Government on
30th May 2008.


                                                                                   5
ABNORMAL DELAY IN STARTING THE WAGE NEGOTIATIONS FOR NON-
EXECUTIVES

While the VI Central Pay Commission for Central Government employees and
Justice M.J.Rao Committee for the executives in CPSEs have submitted their
recommendations on 24th March 2008 and 30th May 2008 respectively, the
negotiation for the non-executives in the BSNL has not yet started on the plea of the
management that approval for the same has not been received from the
Administrative Ministry, i.e. DoT, so far.




7th ROUND OF WAGE NEGOTIATIONS AND DEMANDS ON BASIC ISSUES

The 7th round of wage settlement is to be effective from 01.01.2007. The Central
Government and DPE have issued certain guidelines for negotiations on the wage
revision of non-executive employees vide DPE OM No. 2(7)/2006-DPE (W C)-GL-
XIV dated 9th November 2006. It was stated that the management of CPSEs would
be free to negotiate the wage structure for the unionized workmen keeping in view
and consistent with the generation of the resources/profits by the concerned
enterprises. It was also stipulated that the validity period of wage settlement would
be for ten years with 100% DA neutralization w.e.f. 01.01.2007. The revision shall
be subject to the condition that there shall be no increase in labor cost per physical
unit of output with rare exceptions. Certain other conditions were also stipulated.

The Committee of Public Sector Trade Unions (CPSTU) was very critical of the
guidelines issued by the DPE and after comprehensive deliberation in its National
Conventions formulated the following demands on basic issues:

    No to disinvestment/privatization and contractorisation/outsourcing in PSUs

    Tenure of the wage agreement should not be more than five years. Relativity
     between workers and executives in pay and benefits turned widely adverse
     during last round of wage negotiation must be restored.

    Annual increment system as percentage of basic pay to be calculated
     cumulatively every year and the pay scale should be open ended.

    Wage rise for the contract workers in PSUs ensuring at least the minimum
     wage and benefits available to the permanent workers in all the respective
     PSUs.

    Merger of DA equal to 50 percent of the basic pay with effect from
     01.04.2004.

    Financial and policy support for revival of sick PSUs and wage revision for the
     concerned employees.



                                                                                    6
    Filling up of all vacancies for workman category in PSUs through fresh
     recruitment of regular workers.

Notice was also given for a one-day strike on 7th May 2008 on the above demands.

PERIODICITY

In Public Sector Undertakings, wage revisions have taken place every 5 years until
5th round of wage revision. However, after the 6th round of wage negotiation w.e.f.
01.01.1997 a 10 year period was brought in to effect unilaterally making the 7th round
of negotiation due from 01.01.2007 only. This has resulted in serious erosion of
wages for the employees. Hence, the issue was taken by the CPSTU with the
Government.

A meeting was held by Hon’ble Prime Minister with the representatives of National
Trade Unions on 28th April 2008 and it was assured that the 10 year period of wage
agreement can be modified as 5 year agreement with full neutralization, on the basis
of which the strike was deferred. The DPE guidelines on 5 year wage agreement
was issued vide DPE OM No.2(7)/06-DPE(WC)-GL VI dated 1st May 2008.

MERGER OF 50% IDA W.E.F. 01.01.2005

The Central Government employees were granted merger of 50% CDA w.e.f.
01.01.2004. In the case of employees of Central PSUs the IDA crossed 50% w.e.f.
01.01.2005. As per DPE Guidelines vide OM No. 2(7)/2005-DPE(WC)-GL III dated
26th February 2008, BSNL Management issued orders for merger of 50% IDA for its
employee’s w.e.f. 01.01.2007 only. BSNL employees are eligible to have 50%
merger of IDA w.e.f. 01.01.2005, when it crossed 50%.


INTERIM RELIEF

The wage revision is due w.e.f. 01.01.2007. Even after 18 months, wage negotiation
has not started for the non-executives. In the meantime, both the VI Central Pay
Commission as well as the 2nd Pay Revision Committee for Executives in PSUs have
furnished their reports in March and May 2008 respectively. The delay in starting
negotiations and settlement is resulting in great loss to the workers.

Taking the above aspects into consideration, several PSUs have either granted
Interim Relief or an advance amount so that the employees are not put to financial
loss. The Staff side feels it justifiable that an amount of 50% of pay subject to
minimum of Rs.3000/- be granted as Interim Relief to all non-executives employees.

BSNL IS ONE OF THE BEST PSUSs BUT PAYS LESS TO ITS EMPLOYEES

A study of 11 PSUs – BSNL, MTNL, TCIL, ONGC, BPCL, HPCL, IOC, NTPC, Power
Grid, BHEL and SAIL was made for the financial year 2005-06. Various parameters
enabling a comparative study of these 11 PSUs are given in the annexure as tables
1 to 5 .


                                                                                    7
BSNL got the MOU rating “excellent” along with ONGC, HPCL, IOCL, Power Grid,
BHEL and SAIL whereas MTNL, TCIL, BPCL and NTPC have got the MOU rating
“very good” (Table-1).

BSNL tops among these 11 PSUs in case of Gross Block, Net Block, Reserves and
surpluses, capital employed and number of employees (Table-1)

BSNL is in 2nd position in case of net profit among these 11 PSUs (Table-1). In fact,
BSNL is in 2nd position among the top 10 profit making PSUs (Table-3).

Among these 11 PSUs, BSNL is in 5th place in case of net revenue after IOCL,
BPCL, HPCL and ONGC (Table-1).

BSNL’s share in total 225 PSUs is 19% in reserves & surplus, 18% in Gross Block,
19% in net block, 15% in capital employed, 13% in PBDITEP (Profit before
depreciation, interest, taxes, extra ordinary items and prior period adjustments), 13%
in net profit, 20% in number of employees and 4% in turnover.

The rate of gross surplus created in these 11 PSUs is given in Table-4. This is
arrived at by the formula PBITEP/W AGES X 100. PBITEP is the gross profit after
deducting depreciation cost. The cost of labor power is indicated by the wages and
the gross surplus created by the labor power is indicated by PBITEP. In the rate of
gross surplus in these 11 PSUs, BSNL is better than BPCL and IOCL in the Oil
Sector and closer to BHEL and SAIL.

The rate of net surplus (net profit) generated in these PSUs is given in Table-5. This
is arrived by the formula Net Profit / W ages x 100. The rate of net profit in BSNL is
higher than MTNL, TCIL, BPCL, HPCL, BHEL and SAIL.

BSNL is eligible for Navaratna status. The II Pay Revision Committee for executives
which submitted its report on 30-5-08 has graded BSNL in A+ Category of PSUs,
which is the highest, for deciding wages.

However, the glaring fact is that the average per employee per month wage
(Rs.18914) is the lowest in BSNL among these 11 PSUs. W hile in the rest of the 10
PSUs, the average wage is from Rs.25062 to 61733, in BSNL it is only Rs.18914. It
is also to be noted that the wage in BSNL is very low compared with other telecom
PSUs – MTNL and TCIL.

PARITY IN WAGES WITH OIL SECTOR PSUs AND OTHER PSUs IS JUSTIFIED

The facts mentioned in Chapter-I above clearly establish that BSNL is comparable to
Oil Sector PSUs in respect of several parameters and therefore the wages of BSNL
employees have to be on par with Oil Sector PSUs like ONGC, HPCL, IOCL or
BPCL. The fact that the wages in these Oil Sector PSUs will be revised significantly
from 01.01.2007 is to be taken into consideration. It is also to be noted that in other
public sector telecom service companies MTNL and TCIL and also in the recently
privatized VSNL, the wages are high compared to BSNL.



                                                                                     8
The Department of Public Sector Enterprises in its Circular No.2 (50)/86-DPE(W C)
dated 19.07.1995 has stated:

“Public Sector Enterprises are considered as ‘State’ under the provisions of article 12
of the constitution of India. Both the Supreme Court and the various High Courts
have given directions in the recent past either for restoration of parity in the scales of
pay in one PSE with that of another PSE or removal of anomalies. In order to avoid
further litigation, it has, therefore, been proposed that the scales of pay of the
incumbents of the top posts, executives holding posts below the board level and
non-unionized supervisors would be similar in all PSEs irrespective of profit or loss
made by them”.

When the executives of other sectors are treated on par with Oil Sector irrespective
of profit or loss, the same parity has to be applied to non-executives. Moreover, in
view of being one of the best among PSUs, the BSNL has no reason to deny parity
in wages with oil sector.

Insisting on degree of uniformity, Justice Mohan Committee, the 1st Pay Revision
Committee appointed for executives, has recommended as under:

“The Committee also noted the fact of the Government being major share
holder and common owner of PSUs, the committee feels the system of a
degree of uniformity in the pay scales between PSUs is both necessary and
desirable”.

The following table indicates the status prevailing in PSUs within the Ministry of
Communications & IT during the year 2005-2006.

PSU           W a ge              Net Profit      Rate of net profit
              In Crores           In crores

MTNL          1905                 0580           30%
TCIL          0068                 0033           49%
BSNL          7421                 8940           120%

It can evidently be seen that profit earned by BSNL is 120% compared to MTNL 30%
and TCIL (49%) whereas the per month employee wage is only Rs.18914 in BSNL
where the same is Rs.31052 and Rs.61733 respectively in MTNL and TCIL. This
discrimination has to immediately be removed by reviewing the wages of BSNL
employees comparable with TOP level PSUs.

Constitutionally PSEs are considered as “State” under Article 12. It has been held
by various High Courts and Supreme Court of India to maintain parity in scales of
Pay between PSEs and thus to remove the anomaly.

The most important principle in wage determination of BSNL workers should be a fair
comparison with profit making PSUs and the rate of wage fixed by them.




                                                                                        9
From the following data the minimum wage as on 01.01.1997, in different PSUs
visibly indicate how the BSNL employees have been deprived of their eligibility in
spite of the fact of growth of the Company in all respects.




PSU                   MINIMUM PAY           PSU                     MINIMUM PAY

BHEL                  4200                  IFFCOL                  4900
ONGC                  4300                  NLC                     4900
MADRAS                4320                  INDIAN AIRLINES         5200
FERTILISERS
MTNL                  4400                  BSNL                    4000
IOC                   4600

LOGICAL RELATIVITY IN THE WAGES OF                        NON-EXECUTIVES         AND
EXECUTIVES IN CPSEs HAS TO BE IMPROVED

The ratio between the lowest pay of the non-executive and the highest pay of the
executive was 1:19 in 1970 in Public Sector, before starting of the collective
bargaining. After 5 rounds of wage agreements once in every 5 years, by 1996 this
relativity was improved to 1:4.7. However, in the 6th round of wage revision that
came into effect from 01.01.1997, the non-executives were discriminated and the
executives were highly favored. As a result the above said relativity in wages has
deteriorated from 1:4.7 to 1:7. This distorted relativity has to be corrected and the
relativity should be restored to 1:4.7.

The existing scale minimum of Group D in BSNL is Rs.4000 and the scale maximum
of CMD is Rs 31500. The ratio between these two is 1:7.875. The Second Pay
Revision Committee has recommended a fixed basic pay of Rs.100000 for CMD,
with effect from 01.01.2007. Even if the existing ratio of 1:7.875 is to be maintained
between the minimum pay of the Group D and maximum pay of CMD in the new pay
structure of the non-executives, the minimum of the pay scale of Group D should be
Rs.12698/-. However, the existing ratio of 1:7 has to be restored to the previous ratio
of 1:4.7. Therefore to maintain this ratio of 1:4.7, the minimum of Group D in the
revised scales has to be fixed at Rs.21276/-.

WAGE REVISION IN BSNL AFTER 11 YEARS

While the non-executives in other CPSEs had the last wage revision as on
01.01.1997, the employees in BSNL had their last wage revision on 01.01.1996,
since they were Central Government employees at that time and revision made as
per VI Central Pay Commission. As such, this wage revision is taking place after 11
years instead of 10 years.

The conversion from CDA to IDA effected in BSNL w.e.f. 01.10.2000 consequent to
corporatization cannot be treated as a full pledged wage revision. Hence, the fact
that this wage negotiation and revision is being done after 11 years has to be
considered while fixing the wages.

                                                                                    10
EMPLOYMENT IN BSNL

The report published by Telecom Commission and subsequently by BSNL reveals
the following position on employees’ strength:

Category         A s on           As o n          As o n          As o n
                 31.03.2000       31.03.2005      31.03.2007      31.03.2008
Executives       57,861           52,083          59,642          65,000 (approx.)
Non-             3,58,741         2,70,409        2,60,864        2,43,011
Executives

About 98% of the non-executives and about 95% of the executives exercised option
for absorption in BSNL. Accordingly, about 3,51,566 non-executives and 48,387
executives (after deducting those of the executives opted to MTNL) were also
absorbed in BSNL as on 01.01.2000. The strength of non-executives, particularly
after option has continuously been reduced as compared to that of executives, which
is in increasing order as shown above.

The percentage of decrease of non-executives over the years ranges from 24% to
27%, whilst it is the reverse (that is in increasing order) as far as executives is
concerned. The percentage of increase of executives works around 17%. There had
been a net reduction of about 1,20,000 non-executive posts during the period
between 01.01.2000 to 31.03.2008.

The percentage of decrease of non-executives over the years with the single minded
objective of reduction without resort to any scientific analysis or study of functional
needs of the organization resulted in a highly distorted composition of non-
executives.

This has not only overburdened the workers at lower levels but also affected
adversely the efficacy and efficiency. This naturally projects a poor image of the
organization in general and its capacity to face the challenges and tasks in the
changing scenario. The process of downsizing should stop forth with, keeping in
view the interest of company as well as its services.

The details of BSNL’s revenue, salaries, administrative and operating expenses and
profit before and after tax payment from 2000-01 to 2006-07 is given in the table
below:

BSNL-REVENUE, SALARIES, ADMN & OPERATING EXPENSES, PROFIT BEFORE & AFTER TAX
                                                          (In Rupees crores)
Sl.             Reven    Total          Employees            Administrative  Profit    Profit
No    Year      ue       expenditure    remuneration         and Operating   Befor     After
                         including
                         depreciation
                                                             expenditure     e ta x    ta x
                                        Amount   % in        amount % in
                                                 revenu              revenue
                                                 e
1     01.10.00 11699 10699              2070     17.69     2894      24.73     1030    747

                                                                                      11
          to
      31.03.0
      1
2     2001-     26982 20462         3848       14.26     3996      14.80    6852    6312
      02
3     2002-     25893 25079         6266       24.19     5465      21.10    2658    1444
      03
4     2003-     33919 27164         6377       18.80     7112      20.96    8996    5977
      04
5     2004-     36090 29402         8418       23.32     7952      22.03    7920    10183
      05
6     2005-     40177 31907         7421       18.47     10497     26.12    8447    8940
      06
7     2006-     39715 31466         7309       18.40     10916     27.48    8154    7806
      07

From this table it is clear that the percentage of employees’ remuneration in the
revenue has been hovering around 18% since the incorporation of BSNL. But as per
the details given above, it is clear that during this period the number of non-
executives has come down from 3,58,741 to 2,60,864. Thus in this period the
strength of non-executives was reduced by 97,877. On the other hand, the strength
of executives has increased from 57,861 to 59,642. This means the percentage of
wages of non-executives in the revenue has come down compared to the
executives. Thus the non-executives were already in a discriminated position
compared to the executives. In such a situation, it requires to remove this
discrimination. Therefore, since the pay scales recommended for executives in
BSNL by the 2nd pay revision committee are equal to the executives in ONGC, IOCL
etc which are categorized as A+ along with BSNL, same principle is to be applied for
non-executives also in revising their wages.


WAGE REVISION FOR NON-EXECUTIVES AND STATUS OF BSNL

As per report of the 2nd Pay Revision Committee for Executives of CPSEs submitted
on 30th May 2008, BSNL has been graded (highest grade) at A+ Grade with a
revenue of Rs.39,715 crores in 2006-07 with a net worth of Rs.85717 crores and
profit of Rs.8940 crore (2005-06) and Rs.7806 crores (2006-07), taking the criteria
values of Total Income, Manpower (numbers) and geographical spread. The Pay
Revision Committee for executives has accordingly recommended scales on the
basis of this grading. The same grading of A+ should be made applicable for wage
revision for non-executives also, along with Oil Sector majors like ONGC and IOCL.

Even though, the figures are not out, indications have been given by the
management that the revenue and profit may slide down comparing that of 2006-
2007. In that case it is nothing but a self inflicted injury which is only due to the
unfortunate developments which culminated in reducing the GSM tender from 45.5
million to 22.25 million without any justification and the inability of the management
to procure GSM lines for providing and expanding mobile services in the country
having a very good market. BSNL is still the No.1 Company in India and is aspiring
to restore its second position in Mobile sector.

                                                                                   12
It is to be noted that even in 2007-08 also BSNL stood number one among the
telecom service companies in revenue earned. The revenue earned by BSNL in
2007-08 was said to be Rs.35,296 crores where as Bharti Airtel has earned revenue
of Rs.26,436 crores and stood in second position.

Further, according to the BSNL vision 2010 and the expansion plans for mobiles,
broadband etc as also the declaration of the Hon’ble Minister and CMD BSNL putting
a target of 30% market share from the present 25%, the present trend of sliding
down is only a temporary phase. Moreover, the tender for 9crore GSM lines
equipment would be finalized soon and once the supply of this equipment starts, the
problem of scarcity of equipment would be solved and by 2010, as per the plan,
additional nine crores mobile subscribers will be added by BSNL. Besides this the
BSNL has planned to achieve target of 1 crores broad band connections by 2010(at
present the number of broad band connections in case of BSNL is 20 lakhs. If this
plan is implemented as per the schedule, the market share and revenue of BSNL will
improve considerably.

Hence, the grading of A+ given by the II Pay Revision Committee stands good and
this status is to be taken as the basis for wage revision of non-executives also,
without any discrimination.

TECHNOLOGICAL AND STRUCTURAL CHANGES IN BSNL                                  REQUIRE
CONSIDERABLE IMPROVEMENT IN WAGES OF ITS EMPLOYEES

The technology is changing fast thus forcing the working conditions to undergo rapid
changes on a day to day basis to keep pace generally with global transformations
and particularly with the competitors in the field. W ith a view to retain and earn new
customers, the worker is made to “Learn While Driving”, and to adapt the new
technology as a matter of routine thus to give optimal output and productivity.

The data clearly reveal 50% reduction in the strength of non-executives during these
years whilst the growth of the system is in multiple by way of increased teledensity,
increased traffic efficiency and reduced fault rate. These improvements were merely
due to the efforts of the workers who were driven by the professional environment to
improve their skills on their own in every area of work to ensure effective utilization of
ever changing technical introductions in addition to their commitment for effective
combat in the competitive market to gain customer satisfaction.

Any pay finalized through negotiation should be in the interest of the organization to
keep a worker content and should be satisfactory enough to motivate for efficient
performance of his duties with a sense of dedication. This will ensure that the
worker gives his best in the field of competing service for customer retention and
augmentation. Also, the effort of the management should be to infuse a pervading
feeling that he is serving an organization that has a genuine desire to look after his
needs, place him in a comparable position of his counterparts in similar PSUs.
The ILO in its Publication about W ages has stated as:

“The main objective of job evaluation is to provide definite, systematic and
factual data for determining the relative worth of jobs provide a basis for

                                                                                       13
equality in wages within an establishment and furnish data for establishing a
wage and salary structure comparable to those of other employees in the
same”.

No such approach was adopted nor the management desired in the angle as stated
by ILO during previous wage agreement, and hope at least will now ponder to the
need of placing its own workers in a comparable wage with other PSUs and with
executives in the PSUs.

The Staff Telephone Ratio has drastically come down whereas the annual growth
and returns are exponential. The rapid transformation of every day technology
associated with the quantum of work associated with different kind of approach and
work nature, has compounded the operations, and forced every worker to have in-
depth knowledge and skill in the work area. Complex technical functions that have
increased job relativities are the major justifications to warrant the management to
place its workers in comparable scale of similar graded PSUs without underrating
the job and thus resulting in depression of Justified W age for non-executives.

MINIMUM PAY BE FIXED AT RS.14000

The above detailed facts are to be taken into consideration while revising the pay
scales of BSNL employees.

The minimum basic pay in the present NE1 scale is 4000. The pay is to be revised
as on 1-1-2007. The DA being paid on 1-1-2007 is in two parts. 50% of the basic pay
is merged with basic pay and it is called as Dearness Pay. Thus at this minimum
level, the Pay+ DP will be 6000. Total DA is 68.8%, out of which 50% was merged
and treated as Dearness pay. Therefore remaining 18.8% is given on 6000i.e Pay+
DP. Then the total emoluments will be 4000+2000+1128=7128; On these
emoluments, 100% fitment benefit is to be given due to the following reasons:

   a) The pay scale of CMD was revised from 27,750-750-31,500 to
      1,00,000(fixed), as per the report of the 2nd Pay Review Committee for
      executives. Therefore at minimum level the CMD pay was increased from
      27,750 to 1,00,000 and at maximum level it was increased from 31,500 to
      1,00,000. The emoluments at minimum level on 1-1-07 are Rs.49,451
      [27,750+13,875(50%DA merger)+7,826(18.8%DA)]. This is increased to
      1,00,000 on 01.01.2007. The increase in emoluments at minimum level is by
      Rs.50,549, which is 102% increase. The emoluments at maximum level i.e Rs
      31,500/- on 1-1-07 are Rs.56,133. This is increased to Rs.1,00,000/- on
      01.01.2007. The increase in emoluments at maximum level is Rs.43,867/-,
      which is 78% increase. The average increase (median increase) of the scale
      as on 01.01.2007 is 90%(average of 102% at minimum+78% at maximum). It
      is fair and reasonable to grant this 90% increase in emoluments to all the
      employees in BSNL.

   b) The minimum pay in BSNL is Rs.4000/- whereas it is Rs.4300/- in ONGC and
      Rs.4600 in IOC. Therefore to maintain parity with these oil sector companies,
      another 10% increase is to be granted in addition to the above said 90%
      increase.

                                                                                 14
   c) Hence, the fitment benefit should be 100% on Pay+DP+DA on the total of Pay
      and DP as on 01.01.2007. But in case of NE2, NE3, NE4, NE5 & NE6 we
      propose a fitment benefit of 107%, 119%, 125%, 122% and 126%
      respectively, keeping in view the fact that there is only negligible increase in
      the minimum of these scales compared to the minimum of the previous scale.
      In case of NE11, the fitment percentage is to be fixed as 106% keeping in
      view of the disturbed relativity between this is scale (Grade IV Scale) & JTO
      Scale after corporatisation.

   d) The emoluments on the basis of minimum pay Rs.4000/- on 01.01.2007 is
      Rs.7128/-. W ith 100% fitment benefit it will be Rs.14256 and to bring it to
      nearest thousand it is fixed at Rs.14000/-.



REVISED PAY SCALE MINIMUMS

The existing pay scale minimums are proportionately increased on the basis of the
above fitment formula and the following Pay Scales are proposed with effect from
01.01.2007.
                                                                   (IN RUPEES)

SCALE     EXISTING    DEARNESS       DEARNESS   EMOLU      FITMEN     FITMEN      MINIMUM
          MINIMUM     PAY            ALLOW A-   MENTS      T          T           P A Y IN
          PAY         [50% of (2)]   NCE
                                                           %   ON     AMOUN       THE
                                     [18.8% on
                                               [(2)+(3)+   (5)        T           NEW
                                     (2)+(3)]
                                               (4)]                               SCALE
                                                                                  [(5)+(7)
                                                                                  rounded
                                                                                  to
                                                                                  nearest
                                                                                  hundred]
   (1)      (2)          (3)             (4)        (5)       (6)        (7)         (8)
NE1       4000        2000           1128       7128       1 00%      6872        14000
NE2       4060        2030           1145       7235       1 07%      7765        15000
NE3       4100        2050           1156       7306       1 19%      8694        16000
NE4       4250        2125           1199       7574       1 25%      9426        17000
NE5       4550        2275           1283       8108       1 22%      9892        18000
NE6       4720        2360           1331       8411       1 26%      10589       19000
NE7       5700        2850           1607       10157      1 00%      10157       20300
NE8       6550        3275           1847       11672      1 00%      11672       23300
NE9       7100        3550           2002       12652      1 00%      12652       25300
NE10      7800        3900           2200       13900      1 00%      13900       27800
NE11      8570        4285           2417       15272      1 06%      16228       31500
NE12      9850        4925           2778       17553      1 00%      16533       35100
(PROPO
SED)
NE13      11875       5938           3349       21162      1 00%      21162       42300

                                                                                   15
(PROPO
SED)
NE14   13000          6500         3666         23166      1 00%       23166       46300
(PROPO
SED)


NOTE: The scales are increased from the existing 11 scales to 14 scales in view of
our demand for five promotions in service. The highest recruitment grade in Non-
Executive cadres is NE-9 and in case five promotions are to be given in service to
those recruited in this grade, 14 scales are required.

INCREMENT

Both 6th Central Pay Commission for Central Government Employees and 2nd Pay
Revision Committee for Executives of CPSEs have recommended increment as
percentage of basic pay. W e propose that 5% of basic pay be granted as increment
in all the pay scales for non-executives in BSNL. In case of officials having increment
due on 01.01.2007, they may be allowed to draw the due increment in the revised
pay structure, after fixing their pay in the revised pay scales based on their pre-
revised basic pay without adding increment due in the pre-revised scale on
01.01.2007.

PAY SCALES BE OPEN ENDED

We demand that the pay scales should be open ended, with 5% increment on basic
pay.
PROPOSED PAY SCALES

Based on the above calculations, we propose the following revised pay scales W hich
are open ended, which are open ended, with 5% increment on basic pay:

S.No       Existing pay scales             Revised open        Annual Increment
                                          ended pay scales
NE1        4000-120-5320                      14000            5% on Basic Pay
NE2        4060-125-5935                      15000            5% on Basic Pay
NE3        4100-125-5850                      16000            5% on Basic Pay
NE4        4250-130-6200                      17000            5% on Basic Pay
NE5        4550-140-6650                      18000            5% on Basic Pay
NE6        4720-150-6970                      19000            5% on Basic Pay
NE7        5700-160-8100                      20300            5% on Basic Pay
NE8        6550-185-9325                      23300            5% on Basic Pay
NE9        7100-200-10100                     25300            5% on Basic Pay
NE10       7800-225-11175                     27800            5% on Basic Pay
NE11       8570-245-12245                     31500            5% on Basic Pay
NE12       9850-250-14600                     35100            5% on Basic Pay
           (PROPOSED)
NE13       11875-300-17725                     42300           5% on Basic Pay
           (PROPOSED)

                                                                                    16
NE14       13000-350-18250                      46300           5% on Basic Pay
           (PROPOSED)

FITMENT FORMULA
In view of the details given above, we propose the following fitment formula, for
fitment in the revised pay scales:
(1)    Pay as on 1-1-2007
(2)    50% of the pay as on 1-1-2007(Dearness Pay)
(3)    Add (1)+(2)
(4)    18.8% on (3)
(5)    Add (1)+(2)+(4)
(6)    100% on (5) in case of NE1, NE7, NE8, NE9, NE10 and 107%, 119%, 125%,
       122%, 126% and 106% in case of NE2, NE3, NE4, NE5, NE6 and NE11
       respectively on (5).
(7)    Add (5) and (6) and round it to the nearest multiple of hundred and the
       amount thus arrived is the new basic pay in the revised scale on 01.01.2007.
NOTE: The anomalies/aberrations existing in the present pay structure are to be
settled. The senior getting lower than the junior in the same scale or the senior in
higher scale getting lower than his junior in the lower scale as on 01.10.2000 or
subsequently in the IDA scales are to be brought on par with their junior by rising
basic pay of the senior. This is to be done before fitment in the revised pay scales. In
case any anomalies/aberrations arise consequent to fitment in the revised pay
scales, such anomalies/aberrations are to be settled.

FITMENT ON PROMOTION

Add 10% of the basic pay to the basic pay in the pre-promotion scale and round the
amount to nearest 10 and it will be the pay in the promoted scale.


FAMILY PLANNING INCREMENT

Increment in the revised and current scale be paid as Family Planning Increment.

SPECIAL PAY

Grant of Special Pay should not be linked with the grade and all the officials posted
to the special pay eligibility points should be granted with special pay. The quantum
of special pay may be doubled to the present quantum. The assistants deployed in
this area are being given Rs.30/- per month. This may be proportionately doubled
according to quantum o transaction in that area.


DEARNESS ALLOWANCE



                                                                                     17
The DA as on 01.1.2007 on the revised pay would be 0 and thereafter the existing
procedure of granting Dearness Allowance may be continued, with 100%
neutralization.

HOUSE RENT ALLOWANCE

At present, the following classification of cities is being followed:

CLASSIFICATION OF CITY            POPULATION                   HRA PAID
A-1                               50 lakhs and above           30% of pay +DP
A                                 20-50lakhs                   15% of pay +DP
B-1                               10-20 lakhs                  15% of Pay+DP
B-2                                05-10 lakhs                 7.5% of Pay+DP
C                                 50000-5 lakhs                7.5% of Pay+DP
Unclassified                      Below 50000                  5% of Pay+DP

Since the variation in these rates between the highest (30%) and lowest(5%) is 25%,
which is quite high, it has given rise to a lot of heart burn for those working in
unclassified stations and C class stations.It is proposed that the HRA be paid as per
the following rates on the revised Pay w.e.f 01.01.2007:

CLASSIFICATION           OF       THE POPULATION                        HRA
STATION
A (Classified earlier as A1 and A)       20 lakhs and above             40%
B (Classified earlier as B1 and B2)      5-20 lakhs                     30%
C                                         50, 000 to 5 lakhs            20%
D                                        Below 50000                    20%

Note:- It is proposed that the HRA rate admissible as above for the SSA Head
      Quarters is to be allowed for all the stations in the SSA.

The above proposal confirms to the concept of exemption granted to the salaried tax
payers in respect of HRA drawn by them under Section 10(13A) of Income Tax Act
read with Rule 2A of Income Tax Rules which allows up to 50% of salary as
exemption towards HRA in respect of Mumbai/Kolkata/Chennai/Delhi and upto 40%
in other cities.

CITY COMPENSATORY ALLOWANCE

The 5th CPC restricted CCA only to the A-1, A, B-1 and B-2 cities and recommended
lumpsum amounts which did not provide any basis for arriving at the lumpsum
figures recommended by them. On the contrary, they observed that they did not
support the demand for making CCA as a percentage of the basic pay because this
amounts to admitting a firm and causal relationship between CCA and income, while
admitting at the same time that the CCA paid as a correction factor for compensating
the “relative costliness” of the cities. These observations sound paradoxical in as
much as “relative costliness” is also, in a sense, a form of “dearness” and should be

                                                                                  18
governed by the same principle principles that govern Dearness Allowance. All the
successive pay commissions have admitted the principle that DA should have a one
to one relation with basic pay because Dearness causes direct erosion in pay and as
such any neutralization which is to be given because of that erosion has to be
related to the basic pay. As such, DA is traditionally being granted as a percentage
of basic pay. On the same analogy, CCA should be granted as a reasonable
percentage of basic pay to neutralize the erosion of pay due to costliness of cities,
and it is proposed that the CCA be paid at the following rates on the basic pay:

A city-----20% of Pay
B city----15% of Pay
C city----10% of Pay

RURAL COMPENSATORY ALLOWANCE

To compensate the hardships on education, medical, housing, family disturbances
etc., a Rural Compensatory Allowance of 10% on basic pay may be paid.
TRANSPORT ALLOWANCE

The existing transport allowance for Non-Executive employees is as follows:

 PAY SCALES RANGE                           TRANSPORT     ALLOW ANCE  PER
                                            MONTH
                                            A1 AND A CITY  OTHER PLACES
 8570-12245                                 750            475
 Below the scale of 8570-12245              300            200
 All casual labour with temporary status    300            200

The existing Transport Allowance is not sufficient to meet the actual expenditure
incurred by the employees. In ONGC, Rs.800/- transport allowance is being paid per
month. It will be increased further after wage revision. It is proposed that the scheme
be periodically reviewed one in two years in view of the increasing fuel price and
transport cost. Further it is to be noted that the sixth pay commission has
recommended that the transport allowance has to be made inflation free so as to
ensure that any future increase in petrol prices and / or in price of transport does not
affect the real value of this allowance.

Pay Scale Range      Existing at     Proposed at        Other places       Other places
   (Existing)         A-1 & A          A-1 & A            existing          Proposed
 Rs. 8570-12245         750             2000                4 75              1500
 Below Rs. 8570         300             1500                2 00              1000


SUPPLEMENTARY DIET ALLOWANCE

At present Rs.225/- per month is being paid as SDA. W e demand to enhance SDA to
Rs.1000/- per month.

CHILDREN EDUCATION ALLOWANCE


                                                                                     19
We are now in altogether different scenario as regards education is concerned.
Education has become a commodity to be traded. Whereas Government Schools
have either been abolished or have very inferior infrastructure and facilities. Private
schools with corporate culture have sprung up in all corners of the country. They are
charging exorbitant fees. Even for primary education their tuition fees ranges
between 10000 to 25000 per annum. The same scenario prevails upon in higher
education and professional courses also. Hence, we demand that the actual amount
paid to the institute for the fees etc. be fully reimbursed.

In case the child is in hostel, the hostel fees paid to the institution be fully
reimbursed.

It is to be noted that the sixth central pay commission has recommended for merger
of CEA & ROTF & recommended for full reimbursement of the amount of the fees
paid to the institution, upto Rs.1000/- per child per month, subject to the maximum of
two children. It has also recommended that the hostel subsidy may be reimbursed
upto a maximum limit of Rs.300/- per month per child. It has also recommended to
raise it by 25% when Dearness Allowance crosses 50% on the revised pay scales.

UNIFORM, WASHING ALLOWANCE ETC.

1.    Washing allowance be paid @ Rs.300/- month.
2.    Stitching charges for Gents Rs.400/- per pair and for women Rs.200/-
      (Petticoat & Blouse)
3.    Quality Uniform, Shoes, Chappals, Raincoats, Umbrellas etc. be provided.

SCOOTER / CYCLE MAINTENANCE ALLOWANCE
It is demanded that the scooter / cycle maintenance allowance may be paid @
Rs.500/- and Rs.150/- respectively for the staff who were earlier given cycle
maintenance allowance.

PROFESSIONAL PURSUIT ALLOWANCE

BSNL is facing stiff competition with Private Operators. In the changed scenario the
skills and knowledge about technology and marketing tactics of the employees have
to be improved. To acquire the same a special allowance called PROFESSIONAL
PURSUIT ALLOWANCE can be granted to all the employees so that they can
purchase book, journals, etc. The Executives of BSNL are granted Professional Up
gradation Allowance.

We demand that 5% of basic pay be granted per month as Professional Pursuit
Allowance.

PROFICIENCY ALLOWANCE

With a view to motivate the employees to further develop their academic worth and
proficiency, the system of payment of proficiency allowance at the rate of one
increment for the qualification possessed by them over and above the required
recruitment qualification be implemented.

                                                                                    20
CASH HANDLING ALLOWANCE (FOR CASHIER)

Cash Handling Allowance be paid as follows:

AVERAGE MONTHLY CASH HANDLED                 AMOUNT OF ALLOWANCE
Up to Rs.50000/-                             Rs.300/-p.m
Rs.50,001 to Rs.2,00,000/-                   Rs.800 p.m
Rs.2,00,001 to Rs.5,00,000/-                 Rs.1000/- p.m
Rs.25,00,001 to Rs.10,00,000/-               Rs.1500/- p.m.
Above 10,00,000/-                            Rs.2000/- p.m.

At present the cash handling allowance as per the rule is to be paid only to TOA,
which is not practically possible since the number of TOA is nominal and mostly
Sr.TOAs are doing the job. Hence, the CHA has to be paid to all TOA/Sr.TOA or any
other cadre official handling cash.

For the officials working in the customer service centers, the cash handling
allowance may be paid as per the above rates.

FIXED CONVEYANCE ALLOWANCE

The fixed conveyance allowance is granted to officials if they cover fixed distance in
a month on official duty. W e propose the following modification.



            Distance           Present Rate
                                Motor Car            Other mode
           2 0 1 to 3 0 0          1000                 400
           3 0 1 to 4 5 0          1800                 500
           4 5 1 to 6 0 0          2000                 650
           6 0 1 to 8 0 0          2500                 750
               >801                3000                 850


OVERTIME ALLOWANCE

Over Time Allowance has not been revised for nearly 20 years. We demand that
OTA be paid at the hourly rate of two times of the revised Pay for normal OTA as
well as holiday OTA. It is proposed to remove the restriction on eligibility and the age
old system of discrimination as operative and administrative staff may be dispensed
with.


TELEPHONE DUTY ALLOWANCE

We demand that Telephone Duty Allowance may be fixed Rs.100/- per month.

TRAVELING / DAILY ALLOWANCE (TA/DA)
                                                                                     21
While the prevalent condition and eligibility may continue, we propose payment
actual lodging rent plus DA as against the present practice of giving some
percentage over and above normal DA.

COMPENSATORY ALLOWANCES LIKE HILL/REMOTE AREA/ SPECIAL
AREA/HILL TRACT/ DISTURBED AREA/COAL/ RISK AREAs ETC.,
ALLOWANCES

As per the Central/State Government norms, on IDA pay scales.

SPECIAL DUTY ALLOWANCE

At present special duty allowance @ 12.5% of the basic pay is being paid to the
employees in Assam, North East and A&N Circles. It is proposed to continue this
allowance at the same rate on the revised pay and extend it to Sikkim.

HAZARDOUS DUTY ALLOWANCE

The workers in Telecom Factories, Telecom Stores, Galvanizing Plant Furnace,
Erection and maintenance of Towers, cable-jointing work etc. be paid an amount of
Rs.1000/- per month in view of the hazardous nature of the work.

SHIFT DUTY ALLOWANCE

It is being paid in MTNL and BPCL. W e demand that the following rates may be paid
per shift, as shift duty allowance.

Morning Shift (duty that commence before 0700 Hrs)             -      Rs.100/-
Evening Shift (duty that terminates after 1900 Hrs)            -      Rs.150/-
Night Shift   (duty between 2200 to 0600 Hrs)                  -      Rs.250/-

TRANSFER TA

The sixth pay commission as recommended, “Insofar as Transfer TA is concerned,
only one transfer grant is permitted if the transfer of husband and wife takes place
within 6 months of each other from the same place to the same place. This condition
places unreasonable difficulty because the transferred spouse has to take some
essential household items even for periods less than six months It is recommended
that fifty percent of the transfer grant on transfer should be allowed to the spouse
transferred later in case the transfer takes place within six months but after 60 days
of the transfer of the spouse transferred earlier. No such transfer grant shall be
admissible in case where both the transfers are ordered within 60 days. The existing
provisions shall continue in case of transfers after a period of six months or more.
Other rules precluding transfer grant in case of request transfer or transfer other than
on public interest shall continue to apply unchanged in their case.” W e request for
implementing this.

In addition, all the other left out allowances that are presently paid may continue with
doubling of the present quantum.

                                                                                     22
LEAVE TRAVEL CONCESSION

A)Home Town LTC

This concession be allowed once in a calendar year.

B)All India LTC

This concession be allowed once in two calendar years.

C)Encashment of All India LTC

Encashment of All India LTC be given limited to 100% of the actual fare applicable,
for the employee and his family members and the distance eligible for encashment
be to and fro 5000 k.m.

D)HOLIDAY HOME PACKAGE

In addition to the hometown LTC and All India LTC, every employee be allowed to
avail a Holiday Home Package of 10 days in every 2 years block at specified places
in all over India. The 10 days package can be availed by splitting it by two times.
The rent for the hotel room be borne by the Company. The employee and his family
members availing holiday home trip be paid DA during these 10 days holiday home
package. Pilgrimage importance / Tourist importance places in all over India are to
be recognized for the holiday home package.

E) JOURNEY BY CAR/TAXI

LTC will also be admissible for journey undertaken by other modes of conveyance
according to the convenience. In such cases, the journey must be performed by the
shortest road route / steamer service. The assistance will be limited to the actual
expenses incurred subject to the ceiling of rate as fixed by that State Road Transport
Authority per kilometer per member of the family. The assistance for journey by own
car / taxi will however be Rs.1.50 per kilometer per member.

F) OTHER ISSUES

In the family members, stepfather residing with and wholly depended and the
employee may be treated as family member.

Modify the condition of point to point fare, and make circular tours on circular tickets
of Railways admissible.

During LTC journey, daily allowance may be granted for the employee as well as for
the family members, as a measure of support and to encourage tourism.

For those going on LTC to J&K, NE, Andaman and other Islands, air fare may be
allowed.


                                                                                     23
Total entitlement of the fare is to be allowed in case the actual expended amount
due to different type of journeys by train, and by air etc. is more or equal to the
entitlement.

HOUSE BUILDING ADVANCE

HBA be paid at 100 times of IDA pay of the official, with recovery in 180 installments,
interest at Government of India rates.

FESTIVAL ADVANCE

One month basic pay in the revised pay scales be paid as Festival Advance without
interest, to be recovered in 10 installments.

VEHICLE ADVANCE

The advance may be made interest free.

The existing conditions of eligibility based on pay scale may be removed.

The actual cost of vehicle may be paid as advance

Two wheeler – Actual cost – max. Rs.50,000/-

Four wheeler – Actual cost – max. Rs.5,00,000/-


COMPUTER PURCHASE ADVANCE

Computer has become an essential requirement in day to day life. W ith a view to
encourage the children of the employees as well as the employee also to learn the
know-how, this advance may continue to be paid. The cost of the computer
according to configuration of the system so chosen may be paid subject to a
maximum of Rs.50,000/-. This may be made as an interest free advance and
recovered in 50 installments.

EDUCATION ADVANCE

With a view to augment the academicals worth of the wards of workers by placing
them on higher studies like technical or non-technical, medical etc, we propose
introduction of recoverable educational advance to meet initial expenses and fees to
the tune of Rs.50,000/-.

UTILITY LOAN ADVANCE

With a view to provide assistant to the workers, we propose introduction of utility loan
towards purchase of home appliances, furnitures, and other electrical / electronic
gadgets etc. W e propose Rs.50,000/- recoverable in 50 installments at an interest
rate of 2.5%, subject to the condition of repaying capacity of the beneficiary.


                                                                                     24
MARRIAGE LOAN

We propose for payment of interest free marriage loan of Rs1,00,000/- for a female
ward and Rs.50,000/- for a male ward of the employee. The same may be allowed
for the marriage of the female / male employee also.

SCHOLARSHIPS

Merit Scholarship(One time lump sum amount per child)

The children of the employees obtaining 75% or more marks in school( from 1st
standard to 12th standard ) and those obtaining First class in higher education, i.e.
Graduation, Diploma, State Level Degree, Professional courses etc., be paid merit
award and book award as below:


      S.NO       CLASS                    MERIT AW ARD          BOOK AW ARD
      1          I to IV                  Rs.1800/-p.a          Rs.1000/-p.a
      2          VI to VIII               Rs.3000/-p.a          Rs.1600/-p.a
      3          IX to X                  Rs.4000/- p.a         Rs.2400/-p.a
      4          XI to XII                Rs.5000/-p.a          Rs.3000/-p.a
      5          Graduation/Diploma       Rs.6000/-p.a          Rs.4000/-p.a
      6          Professional Courses     Rs.8000/-p.a          Rs.5000/- p.a

REIMBURSEMENT OF SPECTACLE COST

Spectacle cost be reimbursed fully, subject to a maximum of Rs.1000/- per year.

NATURAL CALAMITY ADVANCE

If any area is affected due to draught or inundation or any other calamity due to
nature’s fury, without linking it for the declaration of the respective State
Government, based on the facts of he situation and report of the Heads of Circles
this advance at the rate of one month’s basic may be paid.

BROADBAND CONNECTION

Provide a free broadband connection with unlimited down load along with the
existing rent-free residential telephone connection given to the employees.

WORKING HOURS

We demand that 5 day/40 hrs week be implemented for all employees in view of the
tremendous productivity achieved due to the rapid technological advance. Those
working on computer terminals be allowed 10 minutes rest per one hour as per ILO
recommendations.

HOLIDAYS AND CASUAL LEAVE



                                                                                  25
The existing system of 16 Effective Holidays, 2 Restricted Holidays and 12 Casual
leaves be continued.

LEAVE

All types of leave available are to be continued with modifications proposed here

Casual Leave        May be increased to 15 days per year in consideration of the
                    Social and family needs and requirement.

Earned Leave        Accumulation up to 300 days may continue as at present. Any
                    number of days n excess of 300 days may be compensated with
                    cash equivalent to the number of days at the end of the year.

Half Pay Leave      Short fall on EL for leave encashment at the time of retirement
                    may be adjusted with this leave automatically by dispensing with
                    the existing condition of a personal application from individuals.

Maternity Leave     May be increased to 180 days as recommended by sixth CPC.
                    Further the period of leave which can be availed of in
                    continuation of maternity leave be increased to two years
                    instead of one year.

Paternity Leave     30 days leave may be allowed.

Special Disability
           Leave Persons afflicted with communicable diseases that surfaces
                   sporadically, and cases of cancer, heart transplantation, kidney
                   failure may be granted with this type of leave during the period
                   of hospitalisation and treatment thereon.

Special Leave for
Women Employees
after 45 years age We demand 60 days special leave for women employees after
                   45 years age, in their remaining service.


WOMEN EMPLOYEES

5th CPC has recommended the following measures for women employees:
    a) Flexi-time work
    b) Flexi–place work
    c) Half time work for half pay & allowances, for 6 years, as an option, without
       any reduction in all other benefits i.e., leave, LTC, Pension etc.
    d) Day care centers and Crèches
    e) Posting husband and wife at the same station
    f) Higher leave reserve for women employees
    g) Public convenience facilities for women employees in all offices
    h) Arranging ladies special buses in bigger cities



                                                                                    26
   i) When woman employee has no EL at her credit, she may be allowed to avail
      the EL at the credit of her husband if he is working in BSNL, for the purpose of
      rearing very young children.

The sixth Pay Commission has made the following recommendations for women
employees:

   a) Women employees be allowed staggered working hours, with 11 am to 4 pm
      as core time during which time all women employees have to be present
      necessarily and for the remaining time of the duty hours, they may be allowed
      to work either before 11 am or after 4 pm as per their choice.
   b) All women employees having minor children below 18 years of age be
      allowed child care leave upto 730 days in service, to rear children and to look
      after the needs of children during sickness, examinations etc.. Further,
      another year of EXOL be allowed on this account.
   c) Crèches be opened mandatorily in offices where the employees, male or
      female, have pre-school or primary school basis.
   d) Maternity leave be increased from 135 days to 180 days and the period of
      leave which can be availed in continuation of maternity leave be increased
      from one year to two years.
   e) Working women hostels be either built or taken on lease, to avoid the problem
      of residential accommodation to the single women employees.
   f) The provisions of the Acts for protecting women against domestic violence
      etc., be incorporated in the conduct rules and violation should call for
      disciplinary action.

We demand for accepting and implementing all the above proposals.


COMPASSIONATE APPOINTMENTS

It is demanded that all applicants, including rejected cases, be given compassionate
appointments without any exception.

PROMOTION POLICY

All non-executives, irrespective of their cadre, be given 5 time bound promotions in
service, with reservations for SC/ST employees. (Under discussion in the promotion
committee, between the official side and staff side.)

RETIREMENT BENEFITS

a) As per the rules in existence, the Pension and other retirement benefits are to be
   paid to on revised IDA pay scales for the DoT employees absorbed in BSNL, as
   per Government rules applicable for Central Government employees(recruited
   before 1-1-2004), by the Government. W e demand that the pension cost for DoT
   service should be met by DoT, with contribution from BSNL for the service in
   BSNL, as per FR 116. The DoT order dated 15-6-2006 be cancelled and the DoT
   order dated 15-3-2005 be restored. As per the Government’s assurance, the
   pension is to be continued to be paid from consolidated fund. The benefit of five

                                                                                   27
   years weightage for those taking voluntary retirement be restored. The number of
   EL enchased while in service be excluded from the overall ceiling of encashment
   of 300 days EL allowed at the time of retirement.

b) For the non-executives recruited in BSNL, a pension scheme has to be
   formulated, as on the lines of DoT employees absorbed in BSNL, with
   contribution from these BSNL recruitees and BSNL management. The Pension
   Fund thus collected be maintained by the Government of India, by keeping it in
   Public Account. This scheme be evolved in consultation with the representative
   union.

BSNL MEDICAL REIMBURSEMENT SCHEME

The following improvements are proposed in BSNL Medical Reimbursement
Scheme:

Where the treatment is covered neither under BSNL MRS nor under CGHS, and
where the treatment is not covered by CGHS rate list, the CGMs be empowered to
settle such cases.


BSNL GSLIS

We propose that the contribution and claim in BSNL GSLIS be increased and option
be given to opt for various slabs of contribution and claim.

CASUAL AND CONTRACT LABOUR

   a) Regularize all casual labour.
   b) Pending regularization, the casual and contract labour be paid Basic+DA on
      par with that of Group D minimum or on par with the minimum pay o f the
      cadre’s work they are doing.

SUPPLEMENTARY MEMORANDUM

We may submit supplementary memorandum if required, at a later stage.

DATE OF EFFECT

   a) As per the guidelines issued by the Government, the revised pay and
      allowances must be implemented from 01.01.2007, with payment of arrears.

   b) The revision in pensionary benefits as per Govt. rules, for absorbed
      employees, must be implemented from 01.01.2006 on IDA scales since for
      Central Government employees the wage revision has come into effect from
      01.01.2006.

TENURE OF THE AGREEMENT



                                                                                28
              The tenure of the agreement for revised pay and allowances must be for five years
              only w.e.f 01.01.2007 and the next wage revision should be with effect from
              01.01.2012. The DPE vide its OM No. 2(7)/06-DPE (W C) – GL VI dated 1st May
              2008 has allowed CPSEs to conclude such 5 year tenure agreements, with the
              permission of the concerned Department and Minister. Therefore, we demand for
              five year tenure agreement.




                                                            ANNEXURE


                                                                Table-1

                 Comparative study of BSNL with some other PSUs based on performance
                                         in the year 2005-06.



                                                                                                                             Per
                                      Reserves                                               PBDI      MOU                   month
                             Net                  Capital      Net                  Net
                Gross                     &                              PBDI                TEP:     compo-       No. of    per
S l.                        Block                employed   Revenue                Profit
No.
       PSU    Block (Rs.               Surplus                         TEP (Rs.             Capital     s it e    employ-    employee
                            (Rs.                   (Rs.       (Rs.                 (Rs.
               crores)                  (Rs.                            crores)             employ    score &       ees      emolument
                           crores)                crores)    crores)              crores)
                                       crores)                                                ed       rating                s
                                                                                                                             (Rs.)
                                                                                                        1.26
1.     BSNL   111765.49    60261.95   68256.51   85723.96   36138.94   18736.01     8940      21.86                326948        18914
                                                                                                      Excellent
                                                                                                        2.05
2.     MTNL    14854.15     6568.75   10606.77   10789.89    5560.98    1342.49   580.29      12.44     Very        51133        31052
                                                                                                        good



                                                                                                                            29
                                                                                                       2.06
3.    TCIL         71.07      32.33     367.85     326.70      453.49      22.29     32.80    6.82     Very            924        61733
                                                                                                       good
                                                                                                       1.45
4.    ONGC     103971.99   35425.53   52533.74   44974.35    47966.40   29724.34    14431    66.09                34722           30540
                                                                                                     Excellent
                                                                                                       1.51
5.    BPCL      18544.95    9917.36    8777.88   13823.33    77035.92    1406.02    291.65   10.17     Very       13876           52946
                                                                                                       good
                                                                                                       1.03
6.    HP C L    13479.25    7337.40    8396.80   10392.49    68161.77    1132.81    405.63   10.90                10778           53409
                                                                                                     Excellent

                                                                                                       1.17
7.    IOCL      43694.96   25023.42   28134.66   35899.63   168854.91    3341.41   4915.12    9.31                30048           42999
                                                                                                     Excellent
                                                                                                       1.61
8.    NT P C    46039.61   23089.49   37154.00   32649.93    26142.92   10082.07     5820    30.88     Very       24044           33564
                                                                                                       good
      Power                                                                                            1.00
9.
      Grid
                24888.25   18516.24    6378.55   17598.86     3145.34    2751.90   1008.93   15.64                 7101           30138
                                                                                                     Excellent

                                                                                                       1.20
10.   B HE L     4006.63     982.28    7056.62    6993.04    13374.03    2865.50   1679.16   40.98                42601           36746
                                                                                                     Excellent

                                                                                                       1.44
11.   SAIL      29360.46   12162.14    8471.01   17117.73    28265.57    7530.73   4012.97   43.99                138211          25062
                                                                                                     Excellent




                                                              TABLE – 2


                                       BSNL’s share in total 225 PSUs in 2005 – 06



                                   Financial                 Total PSUs               BSNL                    Share of
                 Sl. No.
                                  Parameter                 (Rs. Crores)           (Rs. Crores)                BSNL
                                Reserves &
                    1.                                        359077                   68257                     19%
                                Surplus
                    2.          Gross Block                   619936                   111765                    18%

                    3.          Net Block                     309138                   60262                     19%
                                Capital
                    4.                                        581250                   85724                     15%
                                Employed
                                Turnover
                    5.                                        832584                   36139                     4%
                                (Revenue)

                                                                                                                             30
6.   PBDITEP      141951    18736    13%

7.   Net Profit   70288     8940     13%
     No. of
8.                1649000   326948   20%
     employees




                                           31
                           TABLE – 3


       Top 10 profit making Central PSUs in 2005 - 06



                                         Net Profit
Sl. No.             PSU                 (Rs. Crores)
                                  (Rounded to nearest crore)
  1.               ONGC                    14431
  2.                BSNL                    8940
  3.                NTPC                    5820
  4.                IOCL                    4915
  5.                S A IL                  4013
  6.                GA IL                   2310
  7.               NMDC                     1828
  8.               NPCIL                    1713
  9.                 CIL                    1712
 10.                 OIL                    1690




                                                               32
                                    TABLE – 4

               Rate of Gross Surplus value in PSUs in 2005 – 06

                       Salaries &      PBITEP                     Per month per
                                                    Rate of
Sl. No.     PSU        Wages (Rs.     (Surplus)                     employee
                                                    Surplus
                        Crores)      (Rs. Crores)                 remuneration
                                                    Col. (4) 
  (1)        (2)          (3)            (4)        Col. (3) x        (Rs.)
                                                      10 0
  1.        BSNL         7421           9359         12 6%           18914

  2.        MTNL         1905            696          37 %           31052

  3.        TCIL          68             19           28 %           61733

  4.       ONGC          1273           21422        1683%           30540

  5.        BPCL          882            638          72 %           52946

  6.        HPCL          691           1133         16 4%           53409

  7.        IOCL         1863           1140          61 %           42999

  8.        NTPC          968           8034         83 0%           33564

  9.      Power Grid      257           1999         77 8%           30138

 10.        BHEL         1879           2620         14 0%           36746

 11.        S A IL       4157           6146         14 8%           25062




                                                                              33
                                      TABLE – 5

                      Rate of Net Surplus in PSUs in 2005 – 06

                                        Net Profit                      Per month
                         Wages (Rs.                   Rate of Net
Sl. No.      PSU                          (Rs.                         per employee
                          Crores)                       Profit
                                         Crores)                          Wages
                                                     Col. (4)  Col.
   (1)        (2)            (3)           (4)                            (Rs.)
                                                       (3) x 100
   1.       B S NL          7421          8940           12 0%            18914
   2.       MTNL            1905           580            30 %            31052
   3.        TCIL            68            33             49 %            61733
   4.       ONGC            1273         14431          1134%             30540
   5.       B P CL           882           292            33 %            52946
   6.       HPCL             691           406            59 %            53409
   7.        I O CL         1863          4915           26 4%            42999
   8.       NTPC             968          5820           60 1%            33564
            Power
   9.                        257          1009           39 3%            30138
             Grid
  10.       BHEL            1879          1679            89 %            36746
  11.        S A IL         4157          4013            97 %            25062


The rate of net profit of BSNL compared to wages is 120%, which is more compared
to MTNL (30%), TCIL (49%), BPCL (33%), HPCL (59%), BHEL (89%), and SAIL
(97%). But the per month per employee wage in BSNL is Rs.18914 only which is
very less compared to MTNL (Rs. 31052), TCIL (Rs.61733), BPCL (Rs.52946),
HPCL (Rs.53409), BHEL (Rs.36746), SAIL (Rs.25062).

In VSNL the average per month per employee wage for 2005-06 is Rs.1,08,108/-.




                                                                                  34

								
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