MTNL lays off 5,000 staff

NEW DELHI, July 31: The public sector Mahanagar Telephone Nigam Ltd (MTNL) got a golden opportunity to lay off 5,000 employees by default...

NEW DELHI, July 31: The public sector Mahanagar Telephone Nigam Ltd (MTNL) got a golden opportunity to lay off 5,000 employees by default. This eight per cent cut, nearly 3,500 to 4,000 employees in Mumbai and around 1,000 in Delhi, in its work force became possible as these employees failed to “join up” as full time MTNL employees and continued to remain central Government employees even after three deadlines for the same had passed.

The Government had cleared last year that all employees “on deputation” to MTNL from the central Government, could opt for full time employment with MTNL and become MTNL employees. So far, ever since MTNL became a corporation in 1986, all MTNL employees were basically central Government employees who had been posted to the MTNL on deputation.

The MTNL has now suspended this offer to employees and has set September 1 as the deadline for the elections to the MTNL employees unions. As a result, some employees and unions of central Government telecom employees have nowapproached the DoT to intervene in the matter and stop this freeze on employees in joining up with MTNL. The Telecom Secretary called for a meeting of the warring unions with MTNL top brass yesterday in order to sort out the matter and pressurise the MTNL to revert its freeze order.

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Employees waiting to join MTNL say that they had not done so as the detailed package of what they would get at MTNL was not readily available for them to weigh their options. Their peer union groups, on the other hand, have pressurised MTNL from reversing its stand as they say that the entry of 5,000 employees at this stage could upset their election results as it was a sizable number.

MTNL already has 60,000 employees on board and during its various GDRs has been told that this is a heavy number to carry along at a time when the organisation is expected to become lean and mean in its costs in order to face the onslaught of competition. Not only this, the MTNL Board has also been insisting that the company come up with a goodVRS which would enable the corporation to prune its work force. With another GDR around the corner, the MTNL is in no mood to enhance its work force which has a direct impact on its stock performance. The MTNL is however, under pressure from the Government to adjust’ these employees, especially at a time when elections are around the corner and any strict decision regarding employees could adversely affect the Government image.