TELECOM
Minister Ravi Shankar Prasad has directed the ailing telecom PSUs, BSNL
and MTNL, to start a dialogue with their employees on the terms and
conditions of the voluntary retirement scheme (VRS) and prepare a
roadmap for its successful implementation, highly placed sources said.
The Union Cabinet had last month approved a revival package for BSNL and
MTNL which includes a voluntary retirement scheme (VRS) for their
staff.
The aim is to reduce the employee cost of the two companies by offering
VRS to their staff aged 50 years and above based on the Gujarat model
with some modifications. The Government has set January 31, 2020 as the
last date for employees opting for VRS. It will give Rs 17,160-crore for
VRS settlements and another Rs 12,768 crore towards retirement
liabilities. BSNL has 1.76 lakh employees, of which some 1.06 lakh are
over 50 years of age. The telco is keen that 80 per cent of the
employees should opt for the VRS. MTNL has around 22,000 employees.
BSNL’s employee cost is 75 per cent of its total income and MTNL’s
employee cost is 87 per cent of its total income.
The
financial health of both PSUs depend on the success of the VRS, the
implementation of which would take a minimum of 90 days. “The Minister
on Friday met the boards of both BSNL and MTNL and conveyed to them that
the scheme must be implemented with a proper dialogue with the
employees, and by presenting them with questions and answers,” sources
said. “He told the boards of the two PSUs that it was the finest VRS
announced by any PSU, and BSNL and MTNL must be proactive to make it a
success,” said the sources. Employees above the age of 53.5 years will
get 125 per cent of their salary, which they could have earned in
balance period of their service.
Employees
in the age bracket of 50 to 53.5 years opting for the VRS will get
benefit in the range of 80 to 100 per cent of the remuneration to be
paid in the balance period of their service. For employees currently
more than 55 years of age, on opting for VRS, the pension will be
commuted only when they attain 60 years of age (the current retirement
age). For the employees, currently of age 55 years and less, on opting
for VRS, the pension will be commuted in the sixth year 2024-25. Prasad
also asked the PSUs to take proactive measures to monetise their assets
and complete everything in a time-bound manner. “He said there will be
strict monitoring, and BSNL/MTNL will have to deliver,” sources pointed
out.