FNTO on VRS

Editorial of FNTO News

VRS - YES OR  NO?

As a Trade union FNTO opposes Voluntary Retirement Scheme (VRS) in principle because  it will reduce the workforce in a Company and there are chances that experi- enced employees may leave. As long as BSNL was in profit our union opposed VRS and have launched several struggles including Joint strike.

But the situation has changed now. Despite unions cry to reduce unproductive and extravagant expenses there is very little effort on the part of management towards this direc- tion. On our demand for compensation for rural services and Govt. Cooperation to keep BSNL viable by way of refunding ADC, License fee, spectrum charges etc. there is not much of a response from Govt. On the other hand DoT had earlier proposed to ease out BSNL employees on VRS by giving a few increments without any package.

Present CMD wanted to revive the Company by improving the revenue and rejuveniting the business to meet the competition. Though it is not the fault of the workers, one has to accept that the numerical strength of executives and non executives is high even without comparison to private operators. Expenditure on salaries has increased multifold. Last year loss of Rs.1500 cr has quadrupled this year and the loss is more than Rs.6000 cr.

So the management is compelled to consider VRS as an option and the CMD and BSNL Board has sent two proposals to Government. One among them as is offered to MTNL is better. It is also a question mark whether the Government will approve this proposal and allot necessary funds.

At this juncture it is neither advisable nor desirable to launch strike (either one day or indefinite) which will worsen the situation. Stoppage of work will bring disgrace to unions and irrepairable damage to BSNL and its future.

Service unions of both executives and non executives should sit accross the table to negotiate better VRS package without income tax for exgratia, merger of 78.2%. IDA merger for fixation benifit etc.

In case the management changes its mind and thrust an unsatisfactory package with a compulsory scheme then there is reason for us to choose a struggle path to save the workers. Let us hope the management will not resort to such an option.