Raja develops cold feet, reluctant to cut BSNL staff -Governance Now

Raja develops cold feet, reluctant to cut BSNL staff

100,000 excess staff on BSNL roll; PM panel says get rid of them

GN Bureau | March 6, 2010

File photo of Communication Minister A Raja

Telecom Minister A Raja is reluctant to cut down BSNL staff by 100,000 as has been suggested by a prime ministerial panel set up to go into restructuring of the public sector undertaking.

In a letter to the PMO Raja cautioned that retrenchment of so many people would have "wider implication" and hence needed to be considered in detail.

"Wider implications on retrenchment of staff and immediate requirement of BSNL till the new system (of procurement) is adopted, have to be addressed at length in the BSNL Board," Raja wrote in his missive.

Unhappy with the BSNL's performance, the prime minister had set up a high-level committee under his adviser Sam Pitroda to devise methods to revive BSNL.

The panel said BSNL had an excess staff of 100,000, that is one-third of its total staff, which should be shed by offering schemes like VRS. It also suggested disinvestment up to 30 percent of government's stake.

The panel, which has already submitted its report to the Prime Minister, has suggested that employees strength to be slashed by a third.

Raja has, in his letter, suggested that the issue must be discussed at the BSNL board and then referred back to the Pitroda panel with its suggestions. Once the issue was re-examined by the panel it would be placed before the full Telecom Commission for final decision.

Here is what Raja's letter to the PMO, sent on March 4, said:

"Discussed with Secretary (T) and CMD BSNL. The purpose for which the refrence has been made to the Committee headed by Sam Pitroda is not fulfilled despite the fact that the management Committee of BSNL accepts the concepts of transition.

2. Wider implications on retrenchment of staff and immediate requirement of BSNL till the new system is adopted have to be addressed
at length in the BSNL Board.

3. The decision of the BSNL Board may be placed befoe the Pitroda's committee wihch may be requested to convene a meeting in Delhi so
that if any further clarifications required by the Committee can be provided by the BSNL.

4. If it is once decided to switch to new system of management services if should be placed before the Full Telecom Commission since it is a
major policy change and decision with respect to the BSNL."

-sd-
A RAJA
(M CIT)

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