VRS Information some important points

www.bsnlnewsbyashokhindocha.blogspot.com M-09426254999
ALL INDIA
BHARAT SANCHAR NIGAM LIMITED
OFFICERS’ ASSOCIATION
CENTRAL HEAD QUARTERS
37, Laxmibainagar, New Delhi – 110023
President Finance Secretary General Secretary
J.K.MISHRA V.GURUMURTHY V.P.ARYA
Mobile: 9868159951 Mobile: 9444979555 Mobile:9868210478
No.AIBSNLOA/CHQ/2011/34 Dated: 23rd September 2011
To
Shri R.K.Upadhyay,
Chairman and Managing Director ,
Bharat Sanchar Nigam Limited,
New Delhi .
Sub : AIBSNLOA’s views on the proposed VRS - reg
Sir ,
BSNL proposals on VRS presented to Hon’ble MoC on 12.9.2011 have
suddenly surfaced through sources other than the BSNL Management.
Media reports about the slated BSNL Board meeting on 29th September to
finalise the scheme suggest that Scheme is likely to be introduced at the
earliest.
2. As far as AIBSNLOA is concerned, we have already conveyed our
views on VRS, almost a year back, on 9.9.2010, during our presentation to
DoT on recommendations of Sam Pitroda panel, that ‘trimming the size of
the organization is important for its financial health, but
implementation of any VRS scheme should be purely voluntary and no
coercion or indirect pressures be exerted on the employees.’
3. And the proposed VRS cannot be the ‘wonder drug’ to cure all the
illness inflicting BSNL. Unless other simultaneous measures, which
include freedom from Government control, autonomy in decision
making, change in tendering and procurement policy, finalizing the ITS
officers absorption issue immediately and inducting professional
Managers, are taken, BSNL cannot be expected to achieve the
‘Turnaround’.
4. The Voluntary Retirement Scheme is not as easy as eating the cake.
It deals with actual human beings. It deals with the lives of people who are
offered to end the careers abruptly and probably do nothing for the rest of
their lives. Thus a lot many problems can arise during the actual execution
of the scheme. Some of the problems which could be anticipated and for
which appropriate action plan could be drawn are: Non- acceptance of the
VRS; Over-acceptance of the VRS; Operational problems; Post-VRS blues.
We are not aware whether the Management has appropriate plans to tackle
these situations. Any inclination towards tackling the issues after they arise
will lead to chaos and confusion.
5. But, we are aware that, apart from all these, the BSNL Executives
and employees will be willing to opt for VRS due to various reasons such as
apprehension of closure of the company or personal reasons such as poor
health, clearance of debt, marriage, education of children, discrimination in
duty place affecting their promotion, postings etc. Some may like to go, to
escape from the extraordinarily heavy work load forced on their shoulders.
In order that those who volunteer to take the VRS offer get proper and
justified compensation for leaving the service prematurely, we request
serious consideration of all the following points, before taking a final
call on the VRS.
1. The BSNL proposal presented to Hon’ble Minister of
Communications & IT, providing ‘60 days salary (Pay + DA) for
every completed year of service OR salary for the remaining period
of service, whichever is lower’ is a better proposal than the Gujarat
model. BSNL proposal as such may be finalized and offered.
2. The officers and employees of BSNL have already been denied their
righteous entitlement of 78.2% instead of 68.8% for fixation of pay in
the revised scales w.e.f. 1/1/2007. Even though merger of DA for
78.2% has been ordered by DPE and promptly endorsed by DOT, BSNL
Board has decided not to give this 78.2% eligible DA merger due to its
financial constraints. However, BSNL Board has assured on more than
one occasion that the merger of 78.2% of DA shall be given when the
BSNL is entering the path of Profitability. Therefore, the legitimate and
assured DA merger of 78.2% may at least be given at this crucial
juncture of so many thousands of executives as well as non-executives,
who are willing to opt for VRS. It will benefit the VRS optees on exgratia
payment, gratuity, commuted pension, leave encashment
and on pension during their rest of their life. This will also make
the scheme more attractive.
3. The Central Board of Direct Taxes issued a notification amending Rule
2BA of the Income Tax Rules for VRS takers from a notified institution
having importance throughout India or a state. According to it, the VRS
income would be exempted from April 1st of the fiscal year 2002-03, the
CBDT said. The 5 Lakh tax exemption on VRS was formulated nearly
10 years ago. In the meantime, the gratuity ceiling limit has been raised
from Rs. 3.5 Lakhs to 10.0 Lakhs. Further 6th CPC revised the scale of
pay to CGEs and 2nd PRC revised scales to their PSU employees by
adding 30% benefits. However, this TAX exemption on VRS has not been
revised once. Therefore, it is the right time, to take up the matter
with the Government through Hon’ble Minister, to give full
exemption of tax on VRS amount or at least to raise tax exemption
limit from Rs. 5 Lakhs to Rs.15 Lakhs.
4. As per existing rules, if the EL of any employee falls short of 300 days,
the same is compensated by taking the HPL available at credit of the
employee and limited to 300 days for grant of leave encashment. It may
be seen that thousands of BSNL employees are having credit of 300 to
500 days of HPL as on date. By suddenly opting for VRS, they have to
forego their HPL credit without any monetary benefits. They have
accumulated this leave by not availing HPL for so many years keeping it
in reserve to avail at the time of unexpected eventualities. As per DPE
guidelines for VRS, even un-availed CL also can be considered for
encashment. Therefore, encashment of HPL may kindly be included
in the terms and conditions of proposed VRS in BSNL.
5. Management’s right to reject any option for VRS should be based on
some yardstick and should be transparent and not based on pick and
choose policy.
6. The outdoor medical facility ‘without voucher’ should be restored
atleast to the retirees immediately, in order to save them from all the
practical difficulties in preparing, and submitting claims and to avoid
unnecessary personal visits to the pay drawing office.
7. Any arrears of pay to the official that became due prior to the date of
VRS but not actually paid, whether it resulted due to any subsequent
wage revision, increase of DA etc., with retrospective effect prior to the
date of VRS or due to any judgement of any pending case in Hon.
Courts, should be paid subsequently
8. In the unfortunate event of the death of the employee whose VRS has
been accepted, the VRS compensation which would have been due and
payable to the employee, should be paid to the nominee of the employee.
6. We shall be thankful, if decision on all the above points are
taken before the scheme is put up for approval by the BSNL Board.
With kind regards,
Yours sincerely,
(V.P.Arya)
General Secretary
Copy to:
Shri A.K.Garg,
Director (HR), BSNL
www.bsnlnewsbyashokhindocha.blogspot.com M-09426254999