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Days after strike threat from employee unions, BSNL, MTNL promise staff salaries before Diwali

While a months' salary is outstanding for BSNL employees, the case for MTNL is worse with around 22,000 employees yet to be paid their August and September salaries.

Published: 15th October 2019 12:21 PM  |   Last Updated: 16th October 2019 09:04 PM   |  A+A-

BSNL

For representational purposes (File Photo | PTI)

Express News Service

NEW DELHI: Days after employee unions of state-run BSNL and MTNL threatened a nation-wide strike if their salaries are not paid, the managements of both the stressed firms have assured that their salaries will be paid before Diwali.

"We will give the salaries to the employees before Diwali from our own resources on accruals. We generate Rs.1,600 crore a month revenues from services," said BSNL chairman and MD PK Purwar.

Sources said that the revenue BSNL generates is not enough to cover wage liabilities of Rs 850 crore as a major portion of the proceeds is required for operational expenses and statutory payments.

However, the beleaguered firm is trying to raise funds from banks through government guarantees, which is yet to be received. Moreover, the PSU also has to clear vendors dues from the internal accruals.

Similarly, Sandeep Keshkar, general manager (HR & Legal) of MTNL also stated in a letter, “The salary for the month of August 2019 will be disbursed before October 25, 2019.”

While a months' salary is outstanding for BSNL employees, the case for MTNL is worse with around 22,000 employees yet to be paid their August and September salaries.

Following the management’s assurance to pay the salary before Diwali, MTNL Executives' Association has decided to defer its candle march to Prime Minister’s Office at South Block.

Meanwhile, BSNL management has called all the unions and associations for a meeting on Thursday wherein they are likely to take a call on the proposed strike.

Lately, the state-run telecom operator BSNL has been an albatross around the neck of the government as it has no clue about what should be done with these loss-making public sector undertakings.

It was said that the government might infuse funds to take care of employees’ salaries and pay the vendor’s bill during the upcoming festive season, according to sources in the Finance Ministry as well as the Department of Telecommunications (DoT).

(With inputs from Online Desk)



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