Sub: Minutes of the 21st meeting of the National Council held on 23rd June, 2009 under the chairmanship of Director (HR), BSNL Board.
The 21st meeting of National Council was held at 11:00 AM on 21st June, 2009 in the Conference Hall, Bharat Sanchar Bhavan, New Delhi. The list of participants is available in the enclosed Annexure.
2. At the outset, GM (SR) welcomed all the members of National Council, both from Official side and from Staff side in the newly constituted National Council after 4th membership verification. He mentioned that some of the staff side members are newly nominated members whereas others have been members of Staff side in the previous National Council. Thereafter at his request, all the members of National Council introduced themselves to the house.
3. In his inaugural speech, Chairman National Council welcomed Leader, Secretary and other members of Staff Side and also members from Official side in the newly formed National Council after the elections. He mentioned that we are going to have first meeting after 4th membership verification and congratulated Shri Namboodiri for winning the elections. He mentioned that under his able leadership, the management looks forward for the continued cooperation in dealing with matters of staff and their welfare. From management side, he assured continued cooperation and commitment to ensure welfare of the staff and to achieve the objectives of the company for sustained growth. Further, he mentioned that this meeting is taking place after a gap of approx. six months and during this period a lot of developments have taken place.
4. The Chairman further mentioned that the company is passing through a very critical juncture. During 2007-08, our profit was to the tune of Rs. 3000 crores and for the year 2008-09, the accounts are to be audited, but as per the initial estimates the profit is likely to come down to approx. Rs.100 crores. Our market share in mobile has declined to about 13% and now we are the 4th operator in wireless. There are certain positive things too, our market share in broadband has increased. Last year, we added about 2.5 million broadband connections as against 1.5 million during the previous year and with this our market share has increased to about 54% and no other operator is near BSNL. We have potential also in this area of business. During this year, we are going to add about 39 million wireless capacity, out of this 34 million is 2G and 5 million in 3G. Against this, about 11 million capacity in 2G and 0.5 million in 3G has already been rolled out. With the increased capacity, we are going to increase our revenue also during the current financial year. Tender for 93 million GSM lines for next three years has also been opened and it is under process. Another significant development relates to transformation of the company for which a consulting firm, M/s. BCG has been appointed for re-structuring business process of the company. With the assistance of M/s. BCG, we have identified vision, mission and goals of the company. He apprised the members that various pilot projects have been launched. These are, viz. Projects Shikhar, Vijay (Mobiles), Udan (LL&BB), Sanchay (cost cutting), Kuber (collection of outstanding revenue), Dosti (PCO) etc. launched by the company. In UP (East), Project Vijay has been very successful. These projects, if carried out, shall enhance our revenue.
5. After speaking at length about ‘vision’ and ‘mission’ of BSNL, the Chairman also spoke of the developments relating to staff matters –
· Payment of six months’ interest free salary advance
· Revision of HRA rates. This resulted in stoppage of CCA which in turn reduced the salaries of staff working in four metros. Instructions issued relating to continued payment of CCA in four metros.
· DOT issued instructions that the revised rules for pension calculation as per 6th CPC with regard to limit of DCRG, commutation table, emoluments, qualifying service, etc. is applicable to IDA pensioners of BSNL covered under Rule 37-A w.e.f. 1.1.2006. [PS : The order has since been put on hold by the Government.]
· Provision of limited access of BSNL intranet to the recognized union.
· Payment of TA/DA to the office bearers of unions and associations.
· Re-iteration of Instructions relating to reimbursement of the cost of third Coronary stent under BSNLMRS as per the procedure prevalent in CGHS
· JTO Exam 2008 has been held on 21.6.2009
· DOT has taken objection to the sending of representations by the unions and associations and the concern of DOT has been conveyed to the union on 19.3.2009. It is presumed, the unions have taken the advice of DOT in right perspective.
· Second amendment to CDA Rules.
6. While concluding his remarks, the Chairman once again extended warm welcome to the members of Staff side.
7. Executive Director (Finance) welcomed the members of the newly formed National Council, both from Staff side and management side. He mentioned that Director (HR) has already given an over-view of the company. We have plans for the coming year – restructuring and other issues. In the mobile sector, we are going to get 93 million capacity. We have to see that we get not only customers, but good customers and satisfied customers. In broadband sector, our share will further increase. Pilot projects have been launched to improve our functioning. We need to change our attitude and procedures. With these words, he once again welcomed the members of National Council.
8. Leader, Staff side welcomed the Chairman, Executive Director (Finance), members from management side, Secretary and other members from Staff Side. He extended warm welcome to all of them and mentioned that this is the first meeting after 4th membership verification. He thanked the management and the Chairman for re-constituting the National Council. Further, he mentioned that the notification relating to reconstitution of National Council has been issued only on 4th May, 2009, i.e. approx. six months after, and that too provisionally. Commenting on the constitution of National Council provisionally since some of the members are from unions other than the representative union, he mentioned that this practice is in vogue since 2002, immediately after the 1st membership verification in accordance with the understanding reached between the management and the staff side. Thereafter, similar practice was being followed after 2nd and 3rd membership verifications. As such, the management should not have any reservation on nomination of some members from unions other than the representative union. He stressed the need for a proper understanding between the management and the staff side for proper functioning of National Council. Further, he conveyed his sincere thanks to the Chairman for issuing instructions for payment of salary advance, grant of HRA at revised rates, protection of CCA in metro cities, extension of pensionary benefits to the retirees commensurate with the 6th CPC, allotment of office accommodation to National Council in the Eastern Court building. While assuring the commitment of the Staff side for betterment of the company, he mentioned that some issues are long pending and need prompt intervention of the management, viz. promotion policy, wage negotiation, pay anomaly issues, regularization of casual labourers, merger of IDA for retired employees, promotional avenues of SC/ST employees in the promotion policy by assuring constitutional safeguards, partial implementation of award etc. He stated that decisions are taken in the National Council to form Committees on certain issues of the employees and demanded that action taken reports of such committees should be submitted in every meeting of the National Council. He also referred to the part-time distance learning scheme introduced for executives and demanded that this should also be extended to non-executives. Regarding wage negotiation, he pointed out that some issues are still remaining for which successive and continued negotiations need to continue. On the functioning of the negotiating councils, the Leader, Staff side pointed out that the Rules of Business of the Councils were yet to be defined and demanded that the same should be brought in.
9. Referring to customer issues, Leader Staff side mentioned that whenever a landline connection is disconnected due to non-payment, the landline connection is restored on receipt of payment, but the customer’s broadband connection is disconnected after 2-3 days because of poor coordination since the billing cycle of fixed line and broadband are generally different. This can be avoided. On the marketing issues, he demanded that whatever schemes are extended to BSNL franchisees, the same scheme should also be available at BSNL CSCs. Finally, he mentioned that upward growth of the company is not the concern only of the management, but staff side is equally concerned and assured full cooperation of the Staff side in this regard.
10. Secretary, Staff side welcomed the Chairman, National Council, Executive Director (Finance), Leader Staff side and members both from the management side and the staff side. He mentioned that this is the 4th National Council formed after formation of BSNL. A number of issues have been discussed in the 20th meeting of National Council and also in earlier meetings. He thanked the Chairman for congratulating him for getting elected in the 4th membership verification. He mentioned that in the new scheme of things, the issues whether developmental activities or staff issues will be discussed in detail and decisions taken. He referred to the information given by the Chairman relating to developmental activities. While thanking the management for associating workers in certain forums, he mentioned that the staff side feels that the workers are not involved in deciding the policies of the company. The workers are simply informed of the policies adopted by the management and they have to implement the same. There are about 2.5 lakh non-executive employees and they gain lot of experiences in the field relating to the services offered to the customers. The workers are either completely ignored or their suggestions are not taken in proper perspective. Without claiming workers representation in the Board as in the case of banks, he stressed the need for taking the workers into confidence while formulating and implementing new schemes. In this connection, he referred to an earlier meeting of National Council in which a decision was taken for formation of Works Committees at SSA level. In about 80% of SSAs, the Works Committees are not functional. The local level management is not interested to decide the policies in consultation with the staff side. The staff side urges upon the management to associate the workers and take them into confidence while formulating the policies, it will benefit the company.
11. Referring to 3G, Secretary Staff side mentioned that licence to BSNL was given long back, but the same has not been adequately exploited so far. This needs to be expedited. As regards 93 million GSM lines, he referred to the discussions he had with the Chairman, National Council and the CMD, BSNL. On the tender issue, he suggested that we should take the help of the Government so that no private company is able to intervene and cause any type of delay. He assured full cooperation of the Staff side.
12. Further, Secretary Staff side referred to the National Council under the Government set-up, which is presided over by the Cabinet Secretary. Without complaining against the present incumbent, he demanded that the National Council in BSNL should be chaired by the CMD so that prompt decisions are taken in the meeting itself. Similarly, he demanded that the chairmanship of the Standing Committee should also be upgraded to the level of Director (HR) for accelerating the decisions taken in the National Council. In order to have 8 meetings of National Council during this recognition period of two years, he demanded that next meeting can be held after two months since five months’ time has already elapsed after the membership verification. He mentioned that the recognized union is not getting copies of the orders issued by various sections in the Corporate office. Thereafter, he thanked the Chairman for allotting accommodation to the Staff side, National Council and requested for immediate handing over of the same. With the submission of its recommendations by the Promotion Committee on non-executive promotion policy, he mentioned that some issues not connected with promotion are still pending. A new Committee should be re-constituted so that the left over issues are urgently discussed. He also referred to the Anomaly Committee and requested the implementation of the decisions taken. While assuring the cooperation of Staff side, the Secretary mentioned that he wants management’s cooperation too in settling the issues in a very effective manner. With these observations, he once again thanked the management.
13. Another Staff Side member, Shri J.N. Mishra spoke about the need for role of non-executives in the restructuring of BSNL. Only senior level officers hold meetings in the Circles and take decisions. Secondly, items for discussion in the National Council are given in advance. Timely action be taken to settle the issues instead of informing the members in the meeting that the issues are being examined / looked into.
14. On the observations made by the Staff side, GM (SR) mentioned that immediately he is in a position to react to some of the issues, viz. –
· As regards constitution of National Council, he informed that the management did have certain reservations on inclusion of large number of outside members. However, the union also has completed the formality of submitting the list of members and their acceptance letters only on 2nd April, 2009, as such the delay is only procedural and not intentional. He stated that he agreed with Staff side that the provisional status of the National Council should not continue.