Draft memorandum to be submitted to Shri Manoj Sinha, Hon’ble Minister of State for Communications


No: UA/2017/6 05.02.2018


Shri Manoj Sinha ji,
Hon’ble Minster of State
for Communications,
Sanchar Bhawan,
New Delhi – 110 001

Respected Sir, 

Sub: - Submission of memorandum on burning issues of BSNL employees – reg.

We, the Unions and Associations of BSNL, most respectfully bring the following issues to your kind notice, for favour of an early settlement.

  1. 3rd Pay Revision w.e.f. 01.01.2017.
The employees of BSNL are very much demoralised due to the denial of the 3rd Pay Revision, w.e.f. 01.01.2017. As per the ‘Affordability Clause’ of the 3rd Pay Revision Committee, the employees of BSNL are not entitled for wage revision, since the Company has not earned profit during the 3 preceding years. It is a known fact that, BSNL was not allowed by erstwhile government, to procure equipments for it’s network expansion, from 2007 to 2012. This is the main reason why BSNL went into loss. In his interview to the CNBC-TV18 on 28.02.2015, Shri Ravi Shankar Prasad ji, the then Hon’ble Minister of Communications & IT, told, “Both BSNL and MTNL were in profit by the year 2005-2006, thousands and thousands of crore. What happened in the subsequent years that they have come under such a critical state? Something which I can openly tell you today that every attempt was made that they are not allowed to expand.” This is the real fact behind BSNL’s going into loss.

However, the situation has totally changed now. From the year 2013 onwards, BSNL has made considerable expansion of it’s mobile networks. Together with this, the Non-Executives and Executives are also putting in extraordinary efforts, to increase the revenue of the Company. They have conducted very successful movements like “Customer Delight Year”, “Service With A Smile”, etc., to improve the quality of the services as well as to increase the customer-base and the revenue of the Company. As a result of the combined efforts taken by the Management and the employees, BSNL’s revenue, as well as customer-base, have increased considerably. For example, BSNL’s loss stood at Rs.8,234 crore in 2014–15, whereas it has come down to Rs.3,880 crore in 2015–16. BSNL has made operational profits of Rs.672 Cr and Rs.3,854 Cr respectively, in 2014-15 and 2015-16. The Company has also advanced from 6th position to the 4th position, in terms of market share.

Everyone agrees that BSNL is steadily moving in the revival path. However, non-implementation of 3rd pay revision has demoralised the employees and it will seriously affect the productivity as well as the revival of the BSNL. It is also worth mentioning that the BSNL’s Board of Directors have passed resolution in favour of settlement of 3rd Pay Revision to the employees with 15% fitment benefit, and without any financial assistance from the government.

Considering all the above factors, we request that BSNL should be exempted from the Affordability Clause of the 3rd PRC, and that the employees should be given 3rd pay revision w.e.f. 01.01.2017, with 15% fitment.

  1. Abandon the move to form the Subsidiary Tower Company.
The decision of the government to form a Subsidiary Tower Company has shocked the entire BSNL employees. The hiving off of BSNL’s 66,000 mobile towers to the Subsidiary Tower Company, will certainly jeopardise the future of BSNL and it’s employees. The decision of the Union Cabinet that the Subsidiary Tower Company would be under the control of BSNL Management, has been violated with the appointment of an IAS officer as the CMD of the Subsidiary Tower Company. The formation of the Subsidiary Tower Company is nothing but the deprivation of it’s towers from BSNL. The unions and associations view that formation of the Subsidiary Tower Company will ultimately culminate into it’s privatisation, and thereby ruining the future of BSNL. The entire employees and their unions and associations of BSNL vehemently oppose the formation of the Subsidiary Tower Company and request the government to roll back the same.

  1. Pension Contribution should be on the actual basic pay and not on the maximum of the pay scale.
As per the recommendations of the 6th Central Pay Commission, pension contribution is being collected for the entire Central Government Employees, based on their basic pay (Pay in the Pay Band plus Grade Pay) only, as per the provisions of FR 116. This is implemented w.e.f. 01.01.2006 as per DOP&T Order No. 2/34/2008-Estt. (Pay II) dated 19.11.2009. Whereas, in the case of the DoT employees who are absorbed in BSNL, still pension contribution is being collected based on the maximum of their pay scale. As a result of this, BSNL is paying around Rs.400 crore in excess to the government every year. On retirement, both the Central Government employees, as well as the DoT employees absorbed in BSNL, are eligible for the same government pension and pension is 50% of the last pay drawn. When this being fact, pension contribution for the DoT employees absorbed in BSNL is collected on the maximum of the pay scale, whereas the same is collected based on the basic pay of the other Central Government employees. This is a very serious discrimination. It is causing a very big financial burden for BSNL. It has also placed a substantial number of BSNL’s employees in the problem of stagnation. Hence, it is requested that the Pension Contribution being collected from BSNL should be calculated on the basis of actual basic pay of the employees and not on the maximum of the pay scale of the employees.

  1. Non-implementation of the recommendation of the 2nd PRC, in respect of 30% superannuation benefit to BSNL’s Directly Recruited Employees.
The 2nd PRC has recommended that PSUs should implement 30% superannuation benefits to it’s employees. It is a matter of regret that BSNL has so far not implemented this recommendation of the 2nd PRC, which has resulted in irreparable loss to the Directly Recruited Employees of BSNL. It is demanded that this issue should be settled without further delay.

  1. Pension Revision to BSNL retirees.
The pension revision of BSNL pensioners (DoT recruitees) has become due. They are covered by Govt. pension. However there is no mention about the pension revision for the BSNL employees either in 7th CPC or in 3rd PRC. 7th CPC didn’t cover them on the plea that BSNL employees are having IDA. But 3rd PRC didn’t touch this aspect at all. Their earlier pension revision was done w.e.f. 01.01.2007. It is demanded that the government should take immediate steps for the revision of pension of BSNL pensioners. It is pertinent to bring to your kind notice that, at the time of last wage revision, i.e., w.e.f. 01.01.2007, the orders for wage revision of the BSNL Executives were issued on 27.02.2009 and the orders for wage revision of the Non-Executives were issued on 07.05.2010. However, order for revision of pension of the BSNL retirees was issued much belatedly, i.e., only on 15.03.2011. Such a delay should not take place this time. Hence, it is requested that the government may immediately take necessary steps for the timely pension revision of BSNL retirees.

  1. Proposed merger of BSNL and MTNL.
It is being reported by the media that the proposal for the merger of MTNL with BSNL is under the active consideration of the government. We learn that, the Management of MTNL is also sending a proposal to the government, for it’s merger with BSNL. The unions and associations of BSNL have already demanded that, the government should fulfill certain conditions, before proceeding with the merger of MTNL with BSNL.

However, we are disappointed that the government has not considered the demands of the unions and associations so far, but is proceeding with the merger proposal. Under these circumstances, we once again earnestly request you to kindly consider the following demands, so that the merger of MTNL with BSNL does not become a catastrope for BSNL.

  1. MTNL should be delisted from the share market.
  2. Government should take over the financial liability of MTNL.
  3. Government should provide financial assistance to BSNL to revamp the networks in MTNL areas.
  4. Salary structure of the employees of BSNL and MTNL should be one on the same.

We request you to kindly look into the issues and cause to settle them at the earliest.

Thanking you

Yours sincerely,