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PRESENTATION ON PAY REVISION FOR CPSUs EXECUTIVES w'e'f' 01012007 BEFORE 2nd PAY REVISION COMMITTEE

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Title: PRESENTATION ON PAY REVISION FOR CPSUs EXECUTIVES w'e'f' 01012007 BEFORE 2nd PAY REVISION COMMITTEE


1
PRESENTATIONONPAY REVISION FOR CPSUs
EXECUTIVES(w.e.f. 01-01-2007)BEFORE2nd PAY
REVISION COMMITTEEBYSANCHAR NIGAM EXECUTIVES
ASSOCIATION(INDIA)
2
S N E A (INDIA)WELCOMES
  • Justice M. J. RAO
    Chairman
  • Dr. NITISH SENGUPTA
    Member
  • Shri. R. S. S. L. N. BHASKARUDU Member
  • Shri. P. C. PARAKH
    Member
  • Dr. R. C. PANDA
    Member
  • Shri. K.D.TRIPATHI
    Secretary
  • Of
  • 2nd PAY REVISION COMMITTEE

3
SNEA(INDIA)
  • Sanchar Nigam Executives Association (India)
    represents about 30,000 executives belonging to
    Telecom Engineering, Accounts and finance, Civil,
    Electrical, Architecture, Telecom factories and
    Administrative wing of Bharat Sanchar Nigam
    Limited(BSNL). The Association is having its
    Central Headquarters at New Delhi. The
    Association is having organizational set up at
    Taluka, District and State level and is having
    membership at all metro and major cities and
    towns, including rural areas.

  • SNEA(INIDA) plays a major role to ensure
    continued financial viability of BSNL by way of
    continuous interaction with the Management,
    suggesting strategies and plan of action, from
    time to time, and also actively involving its
    members in development, expansion, installation,
    operation and maintenance of Telecom Network. The
    Association also plays vital role in ensuring
    customer satisfaction.

4
ABOUT BSNL
  • Bharat Sanchar Nigam limited was formed on
    1st October 2000 by corporatising Department of
    Telecom Services and Department of Telecom
    Operations. BSNL is fully owned by Government of
    India and operates throughout the country, except
    Delhi and Mumbai.
  • BSNL board comprises of Chairman and Managing
    Director, seven board of Directors, with two
    nominated from Ministry of Communications, and a
    Company Secretary.

5
  • Vision, mission and objectives.
  • Vision.
  • To become the largest Telecom Service provider in
    South East Asia.
  • Mission.
  • To provide world class state-of-the-art
    technology, Telecom Services on demand at
    affordable price.
  • To provide world class Telecom infrastructure to
    develop the countrys economy.

6
  • Objectives.
  • To be a lead telecom service provider.
  • Build customer confidence through quality and
    reliable service.
  • Provide band width on demand.
  • To meet all emerging communication needs of
    individual and small enterprise and corporate
    houses.
  • Contribute towards
  • National plan target of 250 million subscriber
    base for the country by December 2007 in mobile
    sector.
  • Broad band customer base of 20 million in the
    country by 2010 as per broad band policy 2004.
  • Telephone in all villages.
  • Implementation of triple play as regular
    commercial proposition.

7
STATUS OF THE BSNL
  • BSNL is given MINIRATNA-I Status in spite of the
    fact that it is fully eligible to get NAVARATNA
    Status.

8
SOURCES OF DATAData presented in charts and
graphs is obtained from DoT and BSNL annual
reports.
9
PHYSICAL STRUCTURE OF BSNL
  • The BSNL physical structure comprises of various
    segments, each having definite tasks to be
    performed. A brief picture of the same is given
    here.
  • Telecom Circles/Metro Districts
  • There are 24 Telecom Circles and two Metro
    Districts. They are responsible for installation,
    operation, maintenance and providing various
    telecom services coming under basic services,
    cellular services and data services within their
    jurisdiction.

10
PHYSICAL STRUCTURE OF BSNL
  • Transmission Maintenance Regions There are 4
    transmission maintenance regions, one each for
    Northern zone, Southern zone, Eastern zone and
    Western zone. They are to install, operate and
    maintain transmission systems connected through
    optical fiber cable, satellite stations,
    microwave systems. They maintain optical fiber
    cable used as media for interconnecting
    transmission systems. They also operate and
    maintain large Trunk Automatic Exchanges.

11
PHYSICAL STRUCTURE OF BSNL
  • Telecom Project Circles There are 4 telecom
    project circles, one each for Northern, Southern,
    Eastern and Western zones. They are to install
    large transmission and switching systems, lay
    optical fiber cables and erect transmission
    towers.
  • North-East task force circle is exclusively
    meant for installation of transmission systems,
    erection of towers, laying of optical fiber
    cable, in the north eastern states and Assam.
  • I.T. Project Circle IT Circle Pune takes care of
    all software related requirements like HR
    Package, Billing etc.

12
PHYSICAL STRUCTURE OF BSNL
  • Telecom Quality Assurance and Testing and
    Development Circles Telecom quality assurance
    circle is having its operational units in all
    cities/towns where factories for manufacturing
    and supplying of telecom equipment and its
    accessories, meters, OFC cables,drop wire etc are
    situated. The TQA circle tests quality not only
    of the finished equipment but also of the
    components used for the same before giving its
    approval for use in the field.
  • T D circle mainly conducts tests of all the
    installed equipments before making over to the
    field units for operations. They also test cables
    meant for local and long distance networks.

13
PHYSICAL STRUCTURE OF BSNL
  • DATA Network Circle All DATA services right from
    packet switching public data network(PSPDN),
    Internet over dial up and lease line,
    multi-protocol label switching (MPLS-VPN) , broad
    band and other value added services, E-mail
    service, web hosting, co-location of web server,
    Maintaining Network Operation Center(NOC) of
    NIB2, Disaster recovery NOC at Pune, broad band
    project-I , MPLS narrow band project-3, Wi-Fi and
    Wi-Max services are maintained by DNW circle.

14
PHYSICAL STRUCTURE OF BSNL
  • Telecom Factories There are 3 telecom factories
    which mainly manufacture certain accessories
    required for field units. The main items of
    manufacture are towers, cable jointing kits, coin
    box pay phone, telephone instruments, SIM cards
    etc.

15
PHYSICAL STRUCTURE OF BSNL
  • Training Centers There are 3 main training
    centers, ALTTC Ghaziabad, BRBRAIT at Jabalpur and
    NATFM at Hyderabad. These training centers are to
    impart pre-appointment training for Group A and
    Gr. B level officers and, in addition, provide
    refresher/in service trainings to both group A
    and B officers. In addition, there are 11
    Regional Telecom Training Centers(RTTCs) and one
    circle telecom training center in each telecom
    circle. They also provide pre-appointment
    training for group B officers and
    refresher/in-service training for all the staff.
    The data below indicates the total number of
    employees trained on year to year basis.

16
SERVICES OFFERED BY BSNL
  • Basic Telephone Services
  • Internet Services
  • Data one
  • Leased Circuits
  • Wireless Services
  • Rural Telecom Services

17
Basic Telephone Services
  • Different kinds of services offered are -
  • B-Fone fixed line telephone connection with
    different rental /free call plans. Under
    Sulabh scheme a fixed monthly rental of
    Rs. 120 is charged without free calls. For rural
    customers, the rental varies from Rs.50/- to
    Rs.150/-, based on the exchange capacity. Number
    of free calls is 75.
  • One India Plan A fixed monthly rental of
    Rs.180/- with 50 free calls. The call charges are
    Re.1/- per 60 seconds to any place in India
    beyond 50 kms and Re.1/- per 180 seconds to any
    place within 50 kms.
  • Integrated Services Digital Network(ISDN) The
    ISDN connections are given under two categories,
    namely, primary rate access (PRI) 30BD and basic
    rate Access (BRI) 2BD . Both these categories
    have different rental /free call plans.

18
Basic Telephone Services
  • Centrex Customers having more than one
    connection in the same city /town can use this
    facility to have intercommunications . This
    facility is having different plan charges
    depending upon the number of telephones. The
    calls within Centrex numbers are free of charge.
  • Intelligent Network Services (IN Services) India
    Telephone Cards, Toll free phone services, Tele
    voting, universal access number service, premium
    rate services, revenue share graded basis
    service, account calling card, virtual private
    network of land line and Mobile are the recently
    launched services under IN platform.
  • Public Telephone(PT) PTs are provided to
    physically challenged people for earning their
    livelihood through commission paid by BSNL . PTs
    provide telephone facility for general public for
    making local/STD /ISD calls.

19
Internet Services
  • Internet under Dialup Access( Sanchar net) This
    facility has different plans, ranging from 25 to
    1000 hours, with different validity periods. The
    Sanchar net service is prepaid. The service is
    offered through Sancharnet Card and customer can
    register on line.
  • ISDN Dialup Access This facility also has
    different plans, ranging from 100 to 1000 hours,
    with 2 years validity. This is also a prepaid
    service.
  • Internet Leased Line Access This service is
    having different plans wherein a customer has to
    pay fixed annual charges, depending on the
    Bandwidth and whether it is a non ISP(11), Non
    ISP (14) or ISP. Educational Institutions owned
    / recognized by Central/State Govts. get
    concession up to 25 on port charges.
  • Net One It is an instant internet service . It
    is an account free internet dial up access, based
    on CLI. In this service, customer will have to
    pay 10 paise per minute for use of internet, in
    addition to telephone dial up charges. It is a
    post paid dial up Internet service.
  • Internet Dhabas These are provided to
    facilitate general public to have access to
    internet services in rural areas.

20
DATA ONE
  • This is a Broad Band data network . It provides 2
    types of plans. Home plan and business plan. Both
    home and business plans have different
    monthly/annual charges, depending upon bandwidth
    and amount of data usage. Depending upon the plan
    opted, customer gets min. 256 Kbps to from max
    2Mbps speed. In each case, there is limit to
    download/upload of data and separate tariff for
    additional usage. In certain plans, modems are
    given free of cost by BSNL. Customers have an
    option to purchase the modem from outside or have
    it from BSNL on fixed monthly rental.

21
Wireless Services
  • Tarang-WLL-M This is a mobile telephone with
    limited mobility within SDCA. The tariff plan is
    similar to that of b-fone telephone services. The
    pulse rate for local calls and tariff for STD
    calls within territorial circle and outside it
    are different compared to that of landline
    telephones. The WLL-M is also having ONE
    INDIA scheme and tariff is Re.1/- per minute to
    any place in the country. The customer is free to
    use his own CDMA handset as per specifications.
    However BSNL provides handset under different
    schemes.
  • CELL ONE and Excel This is cellular mobile
    service having mobility across the country. The
    service is having both prepaid(Excel) and
    postpaid(Cell One) facility with different plans,
    on the basis of which the tariffs for local, STD
    and ISD calls vary. This service provides SMS
    facility of 160 characters. It is also having
    International roaming which is chargeable.

22
Leased Circuits
  • MLLN Managed Leased Line Network is a leased
    circuit which is monitored 24 hours on all 365
    days centrally at the district level and has
    different plans, with different annual rental
    depending on the distance between the two ends
    and the bandwidth.
  • MPLS-VPN/IP-VPN Services The two services have
    different plans, whereas the charges are
    determined based on the bandwidth. If 5 or more
    ports are used then VPN ports get discount
    depending upon the total number of ports. This
    service is particularly meant for small
    enterprises and big corporate houses, having
    their offices / branches located across the
    country.

23
Rural Telecom Services
  • In addition to provision of telephone
    connections under b-Fone, WLL-M and cellular
    schemes, efforts are continued to be made for
    providing telecom facilities under different
    schemes for all rural places. BSNL of its own has
    provided 5.35 Lakhs village Panchayat telephones
    for the use of public living in rural places. In
    addition, BSNL, by various agreements with DOT
    under Universal Service Obligation Fund (USO
    fund), has provided telephone facilities, both
    with wire and wireless. As on 31.3.06 nearly 1.5
    Crore telephone connections are working in rural
    areas of the country. Based on agreement with DOT
    under USO fund, BSNL, as on 31.3.2006, has
    developed rural telecom network as mentioned
    below.
  • Village Public Telephone(VPT) As per agreement
    signed in Nov. 2004, 66,822 villages having a
    population of more than 100 as per 1991 census
    have to be provided with village public
    telephones. This includes 14183 villages to be
    covered by digital satellite phone terminals
    since these are remote and far flung and cannot
    be covered by any other means of communications.
    As on 31-3-2006, 24,687 villages out of 66822
    villages are provided.

24
Rural Telecom Services
  • Rural Community Phones As per agreement signed
    in Sep.2004 24,794 villages having a population
    of more than 2000 as per 1991 census having no
    public telephone are to be provided with rural
    community phones. As on 31-3-2006 , 16398
    villages are provided out of 24794 villages.
  • Replacement of MARR Village Panchayat
    Telephones. As per agreement signed in September
    2003 1,41,233 MARR VPTs as on 1-7-2003 are to be
    replaced by a land line/WLL telephones. As on
    31-3-2006, 104066 MARR VPTs have been replaced by
    land line/ WLL connection.
  • Rural Household DELs As per the agreement
    signed on 15-3-2005 rural household DELs are to
    be provided in 1267 SDCAs. As on 31-3-2006,
    3,43,235 rural DELs have been provided in these
    specified SDCAs.

25
Role of Executives in BSNL
  • BSNL, a telecom service provider throughout the
    country, has about 59,421 officers, as on
    31-3-07, of which 25,830 are entry level
    executives, 31,666 middle level executives and
    1925 top level executives, comprising of Deputy
    General Managers, General Managers and Chief
    General Managers. Total number of 57,496
    executives have got permanently absorbed in BSNL.
    In top level executives, officers belonging to
    finance, civil, electrical etc. wing have got by
    and large absorbed, whereas an insignificant
    number of officers belonging to ITS got absorbed.
    Majority of ITS officers are yet to get
    absorbed. The total number of non-executive staff
    of BSNL as on 31-3-2007 is 2,60,676.

26
Role of Executives in BSNL
  • The executives belonging to the telecom
    engineering are responsible for complete
    development/expansion, installation, operation
    and maintenance of entire telecom network
    relating to all areas like Switching,
    Transmission, RF network, Ip network, Out-door
    network, OFC network, etc. in the country. They
    have been identified as the BACKBONE for the
    growth of telecom services and are the main
    REVENUE EARNERS of the BSNL. They work across
    entire length and breadth of the country,
    including not only metro/major cities/towns, but
    also in rural, under developed and highly
    inaccessible areas like North east, Andaman
    Nicobar islands, JK, Jharkhand, Assam where
    insurgency is a challenge always to face.

27
Role of Executives in BSNL
  • The executives of the telecom engineering exhibit
    extraordinary courage and commitment in restoring
    and maintaining telecom services during natural
    calamities like earth quake at Gujarat, Srinagar
    valley and Sunami affected Andaman and Nicobar
    islands.

28
Role of Executives in BSNL
  • The telecom engineering executives perform round
    the clock duties in almost all telephone
    exchanges, co-axial, microwave, GSM, satellite
    earth stations and trunk automatic exchanges.
    They lay and maintain the entire underground
    local cable network and optical fiber cable which
    forms major trunk junction network. They work at
    factory premises for testing and ensuring the
    quality of the equipment and later, after
    installation, they do acceptance testing of all
    the equipments. They work in training centers
    to impart not only pre-appointment training
    but also in-service and refresher courses of
    training. They are also involved in planning and
    estimation.

29
Role of Executives in BSNL
  • The executives of architecture ensure that the
    building plans are drawn according to the modern
    needs relating to technical / administrative
    purposes. The executives of civil wing ensure
    that the materials used and the construction work
    is done as per the specifications agreed upon in
    the tender documents. The civil executives main
    job is to maintain the company owned buildings.
    The executives of electrical wing carryout
    electrical installations in all newly built
    company buildings and maintain existing
    electrical installations.

30
Role of Executives in BSNL
  • The executives of financial wing are mainly
    involved in budgeting and in assisting the
    auditing of company accounts, including that by
    CAG. Their main job is to ensure proper
    utilization of company funds. They are also
    responsible in drawing pay and allowances and
    settlement of monetary claims of all employees.
  • The administrative executives mainly work
    in corporate office . Their main responsibility
    is to ensure smooth functioning of corporate
    office in matters related to creation of posts,
    recruitments, promotions, transfers and postings,
    issue of clarifications on administrative and
    financial matters and holding of internal exams
    etc.

31
Role of Executives in BSNL
  • The executives working in telecom factories
    are responsible for production of certain
    telecom components needed for the maintenance of
    field units. They also manufacture coin
    collecting public telephones, tower materials,
    SIM cards and telephone instruments.

32
  • Please Note Even with tough and stiff
    competition from other operators, BSNL Assets
    grew by 7614 crores, that is, by 13.6 by the
    year 2005-06.

33
Chart showing size of Network and Working
connections in different area of services
34
YEAR WISE CELLULAR WORKING CONNECTIONS (in
Thousands) REVENUE(in crores)
35
  • Please Note
  • Cellular service was launched in Oct.2002.
  • A steady growth in telephone network resulted in
    a steady growth of working connections
  • After launching cellular services (CellOne) the
    number of Cellular connections is almost double
    year after year.
  • In spite of disconnections of Telephones in Basic
    Services, yet as a whole there is a growth of 8
    Million connections as on 2005-06.
  • The Net effect of increase in Telephone Network
    and working connections is an increase in Income
    from services.

36
Mobile (Cellular WLL-M) Services subscriber
base ( in Lakhs)
  • Source TRAI Report year ending Mar 07.

37
Tele density of BSNL per 100 population as on
31st Dec 2006
  • Urban Tele density 17.71
  • Rural Tele density 2.00
  • Overall Tele density 6.04

38
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39
  • INCOME
  • Please note
  • In spite of stiff competition from other
    operators, the income of BSNL grew, year after
    year, and by the year 2005-2006, the income grew
    by 63 over the income for the year 2001-2002,
    mainly because of
  • Digitalization of both switching transmission
    equipments.
  • Usage of optical fiber cable for trunk local
    junctions.
  • Introduction of WLL, cellular, broadband and many
    other new services.
  • Large scale development and expansion of telecom
    networks.
  • Elimination of over head wires by under ground
    cables.
  • Large scale development of rural networks in the
    form of VPTs, rural community phones, replacement
    of MARR VPTs, use of WLL systems for wireless
    communication, revival of household DELs.
  • In-service / refresher trainings for executives
    for updating their technical knowledge and
    behavioral and attitudinal training for
    non-executives.
  • Staff adopting customer friendly approach and
    attitude.

40
Expenditure (in Crores )
41
  • Expenditure
  • Please note
  • The expenditure of the company grew year after
    year and reached 50 more for the year 2005-06 as
    compared to 2001-02 on account of
  • Steady growth in operating expenditure on year
    to year basis which became 250 greater in the
    year 2005-06 as compared to 2001-02.
  • Payment of pay and allowance in IDA scales with
    effect from 1st October 2000 consequent to
    permanent absorption of GroupB, C, D
    staff.
  • Adhoc payment of Rs. 2750/- per month for all ITS
    group A officers working on deputation with
    effect from 1.10.2000.
  • Payment of pay allowance in IDA scales with
    effect from 1st October 2000 consequent to
    permanent absorption of GroupA officers of
    finance, civil, electrical , architechture wing
    and certain ITS officers.

42
PROFIT (in Crores)
43
  • Profit
  • Please note
  • The profit for the year 2002-03 has gone down by
    Rs. 5000/- crores as compared to 2001-02 on
    account of ,
  • Increase in staff remuneration by Rs. 2500/-
    crores on account of payment of IDA scales with
    effect from 1st October 2000 consequent to
    permanent absorption of group C, D staff
    and payment of adhoc amount of Rs. 2000/- per
    month with effect from 1st October 2000 for all
    group B staff.
  • Increase in operating expenditure by Rs. 1500/-
    crores.
  • Increase in expenditure towards depreciation by
    Rs. 800/- crores.

44
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45
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46
PAY AND ALLOWENCES OF ALL EMPLOYEES w.r.to TOTAL
EXPENDITURE (IN CRORES)
47
EXPENDITURE ON SALARY AND OTHER BENEFITS OF ALL
EMPLOYEES AS PERCENTAGE OF TOTAL EXPENDITURE
48
DISPARITY OF PAY SCALES INMTNL AND BSNL
  • Mahanagar Telephone Nigam Limited (MTNL) was
    formed on 1-4-1984 by coporatising two metro
    telecom districts, Delhi Mumbai.
  • Bharat Sanchar Nigam Limited (BSNL) was formed on
    1-10-2000 by corporatising the Department of
    Telecom Services and Department of Telecom
    Operations.
  • BSNL provides telecom services in the entire
    country, except the two metro cities Delhi and
    Mumbai.

49
DISPARITY OF PAY SCALES INMTNL AND BSNL
  • The option for permanent absorption of Group B
    officers in BSNL and MTNL was called
    simultaneously in October 2003.
  • The Group B officers comprise of Junior Telecom
    Officers(JTOs) an entry level cadre recruited on
    telecom circles/metro district basis having
    transfer liability within telecom circles
    /metro district recruited for.
  • The Sub Divisional Engineers(SDEs) cadre is first
    promotional grade of JTOs and sr.SDEs is a time
    bound promotional grade of SDEs. SDEs are all
    India transferable category.
  • SDEs / Sr.SDEs have been promoted on Adhoc basis
    to STS scale.

50
DISPARITY OF PAY SCALES INMTNL AND BSNL
  • All officers working in BSNL and MTNL were on
    deputation on as is where is basis till their
    permanent absorption. The date of absorption was
    1-10-2000 for both the PSUs.
  • In the process of absorption, the cadre of Adhoc
    STS and SDEs were given the choice to opt for
    BSNL or MTNL. However JTOs had no such choice and
    as such have to opt to the same PSU in which they
    were working on deputation.
  • The duties and responsibilities of JTOs, SDEs and
    Adhoc STS is one and the same in BSNL and MTNL
    as were in DoT. The conditions of recruitment for
    the cadre of JTOs is also same.

51
The CDA pay scales of JTOs , SDEs, Sr.SDEs and
STS working on deputation in BSNL and MTNL prior
to absorption were-

52
DISPARITY OF PAY SCALES IN MTNL
AND BSNL
  • The pay scales of all the officers while working
    in DoT and later in BSNL , MTNL on deputation
    were one and the same.
  • All promotions issued by DoT prior to
  • 1-10-2000 were based on combined
    seniority
  • lists.

53
  • At the time of absorption, different set of pay
    scales were given for BSNL and MTNL optees and
    the same are-

54
DISPARITY OF PAY SCALES IN MTNL AND
BSNL
  • The entry qualification of JTOs remaining the
    same.
  • The recruitment and training process remaining
    the same.
  • The rules for vertical promotions remaining
    same.
  • The duties and responsibilities being one and the
    same.
  • Yet, the disparity in pay scales prevails, which
    is causing not only financial loss but also
    considerable demoralization and demotivation.
  • We request the Respected Chairman and Members of
    the Pay Revision Committee to kindly decide to
    end the disparity and accordingly recommend to
    the Govt. the pay scales of MTNL for BSNL
    Executives.

55
  • PROPOSED PAY SCALES, ALLOWANCES PERKS W.E.F.
    01-01-2007.
  • Preamble
  • With the decision of the Govt. to allow private
    operators with tie ups with MNCs to enter in
    telecom sector and its subsequent decision to
    corporatise the DTS and DTO, BSNL, the newly born
    PSU, has had to face tough challenges and
    overcome the cut throat competition to survive
    and sustain by a steady growth, both in voice
    and data communication.
  • BSNL having huge highly trained and qualified
    personnel always has been vulnerable vis-à-vis
    private sector because of its limitations in
    terms of providing pay scales compatible with the
    private sector. Hence attraction and retention of
    talented executives is an unending challenge till
    BSNL offers comparatively compatible if not
    competitive pay packages. We hope that this
    respected 2nd pay revision committee would
    accomplish this important task to strengthen the
    PSU.

56
Role of the Government
  • The Pay Revision Committee is to recommend
    revision of pay scales for executives and
    non-unionized supervisors of CPSUs.
  • The wage revision of non-executives is settled
    through negotiations at enterprise level.
  • This dual approach will ultimately nullify
    recommendations of the Pay Revision Committee and
    create anomalies.
  • Our considered submission in this regard is that
    the Govt. should only issue broad guidelines,
    based on the recommendations of the Pay Revision
    Committee, to each of the CPSU, with instructions
    to decide pay scales, within these broad
    guidelines, through negotiations with the
    respective officers Associations, so as to reach
    a negotiated settlement.

57
Role of the Government
  • The Govt. should not issue any Presidential
    directives to the Managements of CPSUs in the
    matter of pay revision of executives since it
    ultimately affects the interests of the
    executives and thus de motivates them.
  • The Boards of consistently profit making CPSUs,
    irrespective of the status of the CPSU, should
    have autonomy for deciding the pay packages for
    their executives, depending on their paying
    capacity, through a negotiated settlement with
    the respective officers Association.

58
Pay Scales, Allowances and Perks
  • In all realities, liberalisation and
    globalization has acquired a very strong foot
    hold in the telecom sector. The latest trend in
    this direction is permission for allowing 74
    foreign direct investment. Naturally, BSNL, a
    CPSU in the telecom sector, has to face
    formidable challenges for its continued growth
    and profitability.
  • BSNL should not be compared with other CPSUs as
    the degree of competition prevailing in the
    telecom sector with the private sector, including
    MNCs, is not only unprecedented but not
    prevailing in any other industry.

59
Pay Scales, Allowances and Perks
  • BSNL, having proved its mettle by sustained
    growth and profitability, despite continuing
    severe handicaps and shortcomings, in terms of
    taking critical policy decisions, relating to its
    growth, demands a special and exclusive
    consideration. Its Board should thus be given
    autonomy to decide its own set of pay scales,
    perks and allowances.
  • In the existing set of closed end pay scales, all
    executives in BSNL will continue to stagnate
    throughout their remaining service on reaching
    Rs.18,700 in the scale of Rs.14,500-350-18,700.
    Hence the pay scales should be open ended to
    prevent stagnation.

60
Pay Scales, Allowances and Perks
  • The stagnation over a long period of service
    results in huge financial loss, which in turn
    causes demotivation, thus inflicting irreparable
    damage on the productivity and profitability of
    the CPSU.
  • The ratio of basic pay between the lowest and
    highest paid employee should be at least 110.
    Justice Mohan Committee also recommended the same
    ratio.
  • The Pay Revision Committee should recommend pay
    scales which would match those prevailing in the
    private telecom companies, operated by
    Indian/foreign MNCs.

61
Pay Scales, Allowances and Perks
  • The Pay Revision Committee should consider, while
    recommending the pay scales, not merely the
    productivity and profitability of a CPSU, but
    should decide taking into consideration the
    severe constraints and conditions under which
    such profitability and productivity has been
    achieved. In this aspect, BSNL, telecom CPSU,
    will definitely stand first. The status of a CPSU
    like Navaratna or mini Ratna should not have any
    bearing for determining the pay scales.

62
Pay Scales, Allowances and Perks
  • i. BSNL, a service provider in telecom sector,
    provides telecom services in every nook and
    corner of the country. Consequently, the network
    is huge and wide spread and the staff to operate
    and maintain is also large. However, the cost
    towards manpower is 20 of the total income of
    BSNL.
  • The ceiling on payment of perks and allowances
    should be done away with. BSNL Board should be
    given autonomy to decide the quantum of perks
    and allowances, based on its operational and
    functional needs.
  • The date of effect of payment of perks and
    allowances also should be the same as the date of
    revision of pay scales, that is, 1st Jan 2007.

63
Attraction and Retention of Talented People
  • Fresh engineering graduates coming from reputed
    engineering colleges and getting selected based
    on an all India competitive examination conducted
    by IITs at the behest of BSNL ultimately decline
    the offer of appointment as Junior Telecom
    Officers(JTOs), the entry level executives cadre
    of BSNL. Consequently, BSNL is unable to get the
    required number of talented entry level
    executives. The only reason is poor pay package,
    not only with respect to private telecom
    companies, but even with respect to MTNL, another
    telecom PSU. This is adversely affecting the
    whole recruitment and training plans and also
    future development plans in BSNL.

64
  • The only way to bring out BSNL from this
    precarious condition is to primarily end the
    disparity in pay packages prevailing between
    BSNL and MTNL by giving BSNL the same pay
    packages which are available in MTNL. Secondly,
    the Pay Revision Committee should recommend pay
    packages matching those offered by the Private
    Telecom Companies. The data given below shows the
    number of entry level executives(JTOs) who did
    not accept the offer after selection.

65
Attraction and Retention of Talented People
  • For retention of the existing executives, the Pay
    Revision Committee should
  • Recommend open ended pay scales to totally end
    the stagnation.
  • Recommend to remove ceilings on perks and
    allowances.
  • Recommend to give autonomy to the Board to
    negotiate with the respective officers
    Associations and decide the pay scales, perks and
    allowances.

66
Relativity
  • The ratio of basic pay between the highest and
    the lowest paid employee should be at least 101.
  • Justice Mohan committee had also recommended
    similar ratio .
  • The ratio of basic pay between the topmost level
    and the entry level in the executive category
    should be 41.
  • To attract and retain comparable talents the pay
    packages of CPSUs should be compatible to those
    of private companies in the relevant sector.

67
Existing Pay Scales in BSNL
68
Basic pay as on 1-1-2007
  • The pay scales, which will come into effect from
    1st January 2007, have been derived based on the
    following considerations.
  • The IDA pay scale of 1-1-1997 of
    Rs.10750-300-16750 (E-2) has been taken as a pay
    scale for entry-level executive, Junior Telecom
    officer (JTO) in our case.
  • The multiplying factor for each IDA scale from
    E-2 to E-9 has been derived by taking the
    corresponding IDA pay scales prevailing as on
    1-1-1987, 1-1-1992 and 1-1-1997 since the
    periodicity will be 10 years.

69
Basic pay as on 1-1-2007
  • The multiplying factor, derived from IDA pay
    scales, in existence as on 1-1-1987 and 1-1-1992,
    is added to the multiplying factor, derived from
    the IDA pay scale in existence as on 1-1-1992 and
    1-1-1997, and the same is applied for each IDA
    pay scale for determining the new IDA pay scales
    to come into effect from 1st January 2007.

70
Basic pay as on 1-1-2007
  • Example
  • A) The multiplying factor of 4800 with respect
    to 3000 is 1.6.
  • B) The multiplying factor for 10750 with
    respect to 4800 is 2.24.
  • Sum total of A) and B) is 3.84.
  • The above methodology is adopted since IDA
    scale of Rs.3000 as on 1st January 1987 has
    underwent revision twice in the year 1992 and
    1997 and thus became 10750 in the year 1997.

71
Basic pay as on 1-1-2007

72
Rate of Increment
  • The rate of increment should be on percentage
    basis so as to ensure that it takes care of the
    benefits of pay revision from erosion. The rate
    of increment should be at least 5.
  • The pay scales should be open ended for
    preventing stagnation.

73
Pay Fixation
  • The pay fixation in the new pay scales should be
    on point to point basis to ensure that the senior
    personnel are not placed in a disadvantageous
    position as compared to their juniors. This will
    also help in preventing post revision pay
    anomalies.

74
Performance related payments
  • The Justice Mohan Committee recommended a limit
    of 5 of distributable profits as performance
    related payments. Though this recommendation
    should have been extended only to executives, but
    it was generalised and extended to non-executives
    also.
  • To make matters straight, this Pay Revision
    Committee should exclusively and specifically
    recommend a reasonable percentage of
    distributable profits as performance related
    payments for executives.

75
50 DA Merger w.e.f. 01-01-2005
  • Justice Mohan committee, while recommending pay
    revision once in 10 years for CPSUs with central
    D.A., unfortunately, did not recommend merger of
    D.A. when it crosses 50. 5th central pay
    commission has made such a recommendation for
    central government employees.
  • Consequently, both central government employees
    and industrial employees following CDA pay scales
    got 50 of D.A. merged with basic, giving them
    additional benefits.

76
50 DA Merger w.e.f. 01-01-2005
  • The justice Mohan committee recommendation for
    adopting CDA pattern for grant of IDA to all CPSU
    employees in reality did not bring IDA at par
    with central govt. employees, but took away the
    advantage of pay revision once in every 5 years.
    Even the 50 D.A. merger is denied. Thus the
    entire lot of industrial employees are put at a
    most disadvantageous position.
  • Keeping in view the full justification for 50
    IDA merger, the Pay Revision Committee should
    immediately decide to recommend 50 IDA merger
    with effect from 01-01-2005.

77
Periodicity of Pay Revision
  • Till the last pay revision, which was effective
    from 01-01-1997, the periodicity of pay revision
    was 5 years. Justice Mohan committee recommended
    future pay revision once in 10 years on the
    ground that in future industrial D.A. will be
    granted on CDA pattern.
  • The Govt. accepted the recommendation to
    implement future pay revision once in 10 years
    for CPSUs. However, granting of IDA on CDA
    pattern was not fully extended since base for CDA
    and IDA still remains separate. Because of this,
    executives in IDA pay scales are put to loss.

78
Periodicity of Pay Revision
  • For example, an executive, whose basic pay is
    Rs.10750/- as on 1-1-2002 in the IDA pay scale of
    Rs.10,750-16,750, would have got Rs.14,534/-. On
    the contrary, his pay in January 2002 would be
    Rs. 24,100/-, in the event of revision of pay
    scales having taken place after 5 years, by
    applying the same proportion as that of 1997.
    Thus, an executive at the basic of Rs 10750/- in
    the scale of Rs.10,750-16,750 is faced with a
    recurring loss of Rs.9466/- in the basic pay
    throughout his service. Similarly, executives in
    other pay scales too have to incur loss in the
    basic pay.

79
Periodicity of Pay Revision
  • Further, if pay revision is once in 10 years,
    the differences in pay scales appear huge and pay
    revision committees would find it difficult to
    justify the same. The net effect of this would be
    lower pay scales than are actually justified.
  • With the entry of private companies, including
    MNCs, the competition has become very tough. The
    executives of better talent in CPSUs, totally
    dissatisfied on account of lower pay packages,
    become easy prey to flight of talent, resulting
    in their exodus to private companies which offer
    them better and attractive pay packages.

80
Periodicity of Pay Revision
  • 10 years is a long period and, in the context of
    rapidly changing market environment, CPSUs find
    it very hard to attract qualified and better
    talented people, thus endangering their
    productivity.
  • Hence, there is no justification, from any
    aspect, for pay revision once in 10 years. As
    such the Pay Revision Committee should treat this
    as a priority issue and recommend pay revision
    once in every 5 years in the larger interest of
    CPSUs and its employees.

81
Social Security Issues
  • With very high escalations in the cost of living,
    in the cost of plot/flat, in the cost of
    education and other social bindings, life is
    becoming tougher and tougher and it will be
    highly frightening to imagine life after
    superannuation, without any social security.
    Living on meagre interest on savings made in
    service is next to impossible. It is high time
    for the Govt. to decide and act, and, as a step
    forward, the Pay Revision Committee should
    consider making suitable recommendations on the
    following issues.

82
Pension
  • On the formation of BSNL, the company is
    recruiting fresh engineering graduates at entry
    level of executives. These executives after
    serving 35 to 40 years find on superannuation
    that living is very hard without any social
    security like pension. The pay revision committee
    should make suitable recommendation for extending
    pensionary benefits to the executives recruited
    by BSNL.

83
Gratuity
  • The present maximum limit of Rs. 3.5 Lakhs for
    payment of gratuity should be removed and in
    future there should not be any ceiling on
    gratuity payment.
  • At present, gratuity is paid at the rate of 15
    days salary for every completed year of service,
    subject to a maximum of 33 years of service. This
    condition is unfair and as such gratuity at the
    rate of 15 days salary should be paid for all the
    years of service rendered by an employee.

84
Payment of Interim Relief
  • Since no pay revision has taken place for the
    past 10 years, executives are facing financial
    hardships due to loss in their pay packages. To
    make good the losses, the Pay Revision Committee
    should consider for granting interim relief.
  • An interim relief of 30 of basic pay may be
    recommended with effect from 1st Jan 2007.

85
FUNCTIONAL AUTONOMY
  • Pandit Jawahar Lal Nehru, loved and
    respected first Prime Minister of our country,
    with clear vision of overall development of the
    nation, set up CPSUs in different parts of the
    country for full utilisation of locally available
    raw material and also to provide employment to
    local people for economical growth of the country
    and the growth of socio-economic conditions of
    the local inhabitants.
  • With change of times, many CPSUs became
    sick for various reasons. The political thinking
    also changed from investment to
    dis-investment, causing lot of anxiety in the
    hearts and minds of the employees with regard to
    their bread and butter.
  • In the name of liberalisation and
    globalisation, Government allowed private
    companies, including MNCs, to invest and do
    business in almost all sectors, including telecom
    sector. In the bargain, BSNL was formed as a
    telecom CPSU.

86
FUNCTIONAL AUTONOMY
  • The private companies by virtue of their
    ownership monopoly can take decisions
    independently and quickly in matters like
    technology, vendors, employees pay scales etc.
    The industrialists have access to meet concerned
    ministers and even prime minister for finding to
    resolve their problems.
  • On the contrary, the CEO/CMD of CPSUs have to
    follow preset guidelines in taking decisions on
    all matters related to technology, vendors,
    employees pay scales etc. At the maximum they can
    air their difficulties to the concerned ministers
    only. In all, there is no level playing ground
    between private and public sector. The private
    companies in a particular sector has always an
    edge over their counterpart CPSU. For all acts of
    omission and commission, the CPSUs are answerable
    to other nodal agencies. CPSUs are also
    answerable to the parliament.

87
FUNCTIONAL AUTONOMY
  • In such an environment, where if done-why done
    and if not done-why not done is the attitude, it
    becomes very much tough for CPSUs to sustain and
    survive in the world of competition.
  • To begin with, for providing certain flexibility,
    at least, in the matter related to Human Resource
    Development, CPSUs should have powers to decide
    the pay scales, allowances, perks and other
    benefits of its employees so as to ensure not
    only the retention of the existing personnel, but
    also to attract new talent into the industry.
    Hence the Pay Revision Committee should make
    suitable recommendation in this regard, enabling
    the CPSUs to look ahead at least in the matters
    related to Human Resources.

88
CONCLUSION
  • We request the PAY REVISION COMMITTEE to
    consider and recommend favorably our following
    major issues.
  • Ending disparity in pay scales with MTNL.
  • IDA pay scales w.e.f 1-1-2007 based on the
    criterion of multiplying IDA pay scales as on
    1-1-1997 by factor ranging from 3.45 to 3.86.
  • Merger of 50 IDA with Basic Pay w.e.f.
    1-1-2005.

89
CONCLUSION
  • Autonomy to BSNL Board for deciding pay packages
    based on guidelines issued by Government.
  • Periodicity of pay revision should be once in 5
    years.
  • The ratio of B.P. between the highest and the
    lowest paid employee should be 101.
  • To make IDA and CDA base same.
  • Interim relief _at_ 30 of salary w.e.f 1-1-2007.
  • Removal of ceiling on Gratuity and providing
    proper social security scheme.

90
  • THANK YOU
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