3rd PRC committee headed by Justice Satish Chandra (Retired), had submitted the report to the government. The Government had circulated the report to various departments and ministries for their suggestions on the same. Thereafter Government of India approved the 3rd PRC report and finally, Department of Public Enterprises issues the pay revision order for the Executives of the central public sector enterprises.
Usually, it takes time to implement to pay revision committee report in individual PSUs due to government procedures and guidelines. A PSU has to send a proposal to their ministry and the ministry can take the final call of the pay revision benefits of the PSU executives. Today we will discuss the possibility of 3rd PRC in BSNL.
As per BSNL executive association website, the pay revision proposal already passed by BSNL board of directors and same has been sent to Department of Telecommunication for the further decision on the matter. The DoT has yet to take the decision on the same. Here are few factors which DoT may take into consideration before approval of 3rd PRC report for the BSNL employees.
3rd PRC Criteria
The Pay revision committee had laid down very specific criteria for the affordability. The Committee had proposed that the additional financial impact in the year of implementing the revised salary structure for Board level executives, Below Board level executives and Non-Unionized Supervisors should not be more than 20% of the average Profit Before Tax (PBT) of the last three financial years preceding the year of implementation.
The BSNL doesn’t meet the basic condition of 3rd PRC committee. It has the employee base of 1,96,162 as on 30th April 2017 which is highest in any telecom company in India. In order to implement the wage revision in Bharat Sanchar Nigam Limited thousand of crores are required.
BSNL has not made any profit since the year 2010. It shows some growth in revenue during 2014-15 & 2015-16 but now same is also falling down. Most of the Telecom companies are losing revenue after JIO entered the market. BSNL is no exception and its revenue also started declining. This may further increase the loss margin of the Company.
BSNL still has maximum wireline telephone and broadband connection in the market. These wired services are still costlier than wireless service offered by various Telecom service providers. Due to enhanced speed on wireless connection via 3G/4G and cheap or free call tariff on mobile, the disconnection rate of wireline & broadband increased sharply.
The all above-mentioned points are indicating that the 3rd Pay revision is really difficult to implement in the Bharat Sanchar Nigam Limited. However, once it starts making profits, same can be implemented at any time for the benefit of the employees.