At MTNL,perform or face pay cuts

State-run telecom major has taken a tough stand on the employees performance issue.

State-run telecom major Mahanagar Telephone Nigam Limited (MTNL) has taken a tough stand on the employees performance issue.

The companys top management has warned employees that there may be a cut in pay in future if they fail to improve their performance as per the companys expectations. We have been warned by our chairman to work hard with a motivation to improve our performance,failing which we may face a pay cut of around 20-30 per cent in the future, a senior official told The Indian Express.

MTNL chairman and managing director,Kuldip Singh,confirmed the move,but declined to comment on the percentage of pay cut. The move is to bring out motivation among employees to work hard for the company and generate revenues. As far as pay cut is concerned,we dont want to do until and unless there is compelling situation for us in the future, Singh said.

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In response to an issue raised by the MTNL Executive Association on managerial efforts to improve the financial position of the company,an emergency meeting was held on September 3,in New Delhi.

All senior officials of the company were present at the meeting and all issues related to the financial status of the company including employees performance were discussed.

The MTNL chief said at the meeting that all the stake holders should make some collective efforts to improve the financial position of the company which had worsened.

There is still lot of potential in the company. Only thing required is thrust to rise to the occasion and commit to ourselves to turn around the company. We have been observing that the staff cost is almost equal to the total revenue of the company. Other expenses like licence fees,operation and administration expenses,revenue sharing charges,interest on loans etc are met through borrowings, Singh said.

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Keeping the poor financial health in mind,the company has also decided on a strategy to generate more revenue from 3G,Broadband Wireless Association (BWA) and outsourcing.

The management is in the process to finalise the deals of franchises and outsourcing and expects around Rs 1,300 crore Rs 500 crore through franchises of 3G,Rs 500 crore through franchises of BWA and Rs 300 crore through outsourcing of spare capacity, Singh said.