BSNL Freezes Salaries For Contract Workers; In-depth Review Being Done To Reduce Contract Labour

Now, as elections are over, and PM Modi led BJP Govt. is back to power, state-run telecom carrier BSNL has started steps to reduce losses, and increase revenues.

And in the first step towards this endeavor, salaries and payments of all contract workers have been put on hold, and an indepth review process has started.

When will the contract employees get their salaries?

Keep reading to find out more!

BSNL To All Circles: No Salaries For Contract Labourers

In a letter dated June 4th, 2019, BSNL has informed all Circle heads to freeze salaries of all contractual workers employed with them, and to reduce hiring of such temporary employees.

In the letter, BSNL has clearly stated that the salaries of temporary or contract workers will be only released after the review of their various jobs has been done, and reported.

It seems that BSNL will remove contract workers from those circles and areas where the revenue is less, and salary expenditures are more.

The letter said, “Next quarters payment may be released only after it is certified by the CGM that such a review has been done. The action may be taken in cases where revenue generation is minimal or less compared to expenditures incurred on the same other than salary expenditures.”

Almost 30% of BSNL’s revenues are spend on paying salaries for their 1.6 lakh employees.

Now, BSNL want to change that.

Less Contract Workers Will Be Hired Now

The letter also clearly mentions the fact that BSNL will now hire and recruit less contract workers, as an in-depth review is being done to find out which jobs can be done in-house, and which ones can be outsourced.

Jobs such as housekeeping, security, data-feeding etc have been traditionally outsourced to contract workers, but now, things can drastically change.

The letter from BSNL said, “Thus a through review of all outsourcing contracts involving labour should be done with a view to reduce expenditure and obtain savings,”

In the last few days, BSNL has already started a review of operations across landline exchanges, broadband networks elements, and towers. They aim to know whether upkeeping these facilities are financially feasible at this time, and how many job cuts should be done to reduce salary expenditure, without hampering their operations.

It is expected that the report will be tabled by June 20th.

BSNL’s Financial Woes Continue: Is There Any Solution?

For the first time in 18 years, BSNL failed to distribute salaries in the month of February this year, and this caused wide-spread chaos and panic.

Govt. had to intervene2 and assure everyone that salaries would be credited by the time Holi arrives, and an emergency fund of Rs 171 crore was released for the same as well.

Infact, such is the dire situation that BSNL has no money to pay for electricity bills, and had to request state Govt. not to cut their connection.

As per S.K. Gupta, BSNL Director (Finance), things are coming back to normal, as he said, “The liquidity position of the company may start improving and normalcy could be restored in the next quarter,”

We will keep you updated, as more details come in.

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