How did AIGETOA contribute to the revival of BSNL, ensuring timely salaries, and preventing employee hardships?
The AIGETOA has been at the forefront of the efforts to revive BSNL. In June 2019, AIGETOA submitted a representation to the Prime Minister, Narendra Modi, requesting a revival package for BSNL. The representation highlighted the challenges faced by BSNL, such as the predatory market conditions, the high cost of spectrum, and the debt burden. AIGETOA also proposed a number of measures to revive BSNL, such as the allocation of additional spectrum, the rationalization of manpower, and the introduction of new services.
The government responded to AIGETOA’s representation by announcing a revival package for BSNL in October 2019. The package included a debt restructuring plan, a spectrum allocation plan, and a VRS scheme. The VRS scheme was particularly beneficial to BSNL, as it allowed the company to reduce its workforce by over 80,000 employees. This helped to reduce BSNL’s salary burden and improve its financial performance.
The salary burden of BSNL before retirement is very high. In 2019-20, the company’s revenue to wage ratio was 75%, which means that for every Rs. 100 that BSNL earned, it spent Rs. 75 on salaries.
The government has taken steps to reduce the salary burden of BSNL. In 2019, the government announced a Voluntary Retirement Scheme for BSNL employees. Under the VRS, employees who opt for early retirement are given a lump sum payment and a pension. Over 78,000 BSNL employees have opted for the VRS, which has saved the company Rs. 600 crore per month in salary costs.
The revival package has had a positive impact on BSNL. The company has been able to pay its salaries on time and has even started to report profits. In addition, BSNL has been able to invest in new technologies and services, such as 4G.
The AIGETOA’s efforts to revive BSNL have been a major success. The association’s representation to the Prime Minister led to the government announcing a revival package for BSNL. The VRS scheme that was part of the package has helped BSNL to reduce its workforce and improve its financial performance. As a result, BSNL is now in a better position to compete in the telecom market.
Here is a news link about the AIGETOA’s request to the Prime Minister: