News: BSNL to fire 30% contract employees; 50% to lose jobs to compulsory VRS

Talent Management

BSNL to fire 30% contract employees; 50% to lose jobs to compulsory VRS

About 30 percent of contract employees would be asked to exit from BSNL and many more would have to leave under the VRS scheme, according to media reports.
BSNL to fire 30% contract employees; 50% to lose jobs to compulsory VRS

The state-run telecom giant plans to fire about 30 percent of their contractual employees as BSNL looks for new funds and a way forward for its revival. Moreover, if the Voluntary Retirement Scheme is duly implemented, about 50 percent of the total employees are likely to lose their jobs, in the Pune division of BSNL. 

As the competition to enter the 4G spectrum continues to hit BSNL, a lack of government-approved revival plan has increased the pressure on the telecom company. One way to stay afloat is to cut down on the operational costs and resort to outsourcing the work on monthly contractual basis. Reducing losses and expanding revenues is the goal right now, according to media reports. 

The salaries of contractual employees had been frozen a couple of months ago. As of September, the company has planned to cut down on its contract workers as they will not be able to fund their salaries. 

About 80,000 i.e. 50 percent of the BSNL employees will be asked to take a compulsory VRS and exit the company, according to the Bharatiya Telecom Employees Union BSNL in Pune. 

February 2019 was the first time when BSNL defaulted on distributing salaries among its employees and the government intervened with an emergency fund of Rs. 171 crore in order to ensure that employees received salaries at least before the Holi festival. 

Cutting down on operational costs and focusing on increasing the revenues could help the company in reducing the financial stress, however, the employees need to be prepared for major restructuring in the telecom sector. 

Read full story

Topics: Talent Management, #Jobs

Did you find this story helpful?

Author


QUICK POLL

What kept you sailing through your work life in 2020?

2 months free subscription
q_auto,f_auto/v1606908047/mag-december-2020.png

Subscribe to all new People Matters HR Magazine

.

Subscribe
And Save 59% plus Two months free

Subscribe now

How likely are you to recommend our content to a friend or colleague?

01
10
Selected Score :