Guarantee on pensionary benefits after DTS corporatisation

NEW DELHI, SEPTEMBER 1: In an effort to protect the employees interest in the process of the corporatisation of the Department of Telecom ...

NEW DELHI, SEPTEMBER 1: In an effort to protect the employees interest in the process of the corporatisation of the Department of Telecom Services (DTS), the Group of Ministers (GoM), under the chairmanship of the Minister of Telecommunications, has decided that the government will guarantee pensionary benefits to all telecom employees after their transfer to and later absorption in the corporate entity.

After the Union Cabinet approved the corporatisation of the DTS on Thursday, telecom employees have been planning series of agitation and strike fearing mass retrenchment in DTS after corporatisation. The measures spelt out by the GoM is aimed at pacifying the agitated employees.

According to an official release, the government will guarantee pensionary benefits to all employees after their transfer to and later their absorption in the corporate entity. The benefits of the pension will be the same as had been in the government service. In the frame work that will be put in place, provisions have been made regarding transfer of the general provident fund (GPF), earned leave and half pay leave accounts to the corporate entity without causing any loss to the employees.

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These decisions were taken by the GoM after a late night meeting last night.Cabinet, yesterday had cleared the proposal to corporatise the DTS, to be called Bharat Sanchar Nigam Ltd (BSNL), with an authorised capital of Rs 10,000 crore.

The GoM has decided that the framework for adding the pensionary benefits would be introduced as an amendment under Article 309 of the constitution to the CCS Pension Rule, an official statement said on Friday.

This is with regard to the demand of the employees federations that the framework for determining pensionary and retirement benefits should not be based on the executive order of the government but should form part of the statutory framework, the statement said.

The GoM has also agreed to provide protection under rules that in the event of dismissal or removal of any employee the administrative ministry would be consulted before taking a final decision.

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Taking into account the concern of telecom federations regarding financial viability of the recently proposed BSNL, the GoM decided that for discharging obligations with regard to rural telephony or other uneconomic services, the corporations would be duly compensated.

In order to facilitate the corporatisation process and to resolve the pending issues of employees including pay fixation, pension and retirement benefits the government had appointed a GoM chaired by the Communication Minister and comprising Finance Minister, HRD Minister, Labour Minister, Commerce Minister and Minister of State for Personnel, the statement said.

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