Forum of Executives’ Associations of MTNL
Head Quarters, New Delhi
Shri. R.S.P. Sinha
of Government orders on Pay Revision w.e.f 01/01/2007.
We would like to draw your
kind attention to the issue of revision of pay to the Executives with
effect from 01.01.2007.
Keeping trust on your words
that on settlement of pension issue, 30% fitment will be revisited,
executives are waiting patiently for more than five months. The time
limit of two months wanted by the Management in May’09 has elapsed. MTNL
will appreciate our view that settlement of pension issue is not the
sole responsibility of the Associations only.
Sir, MTNL is aware that as
far as the Executives are concerned, pension liability rest with Central
Government as per provisions under Rule 37-A of CCS (Pension) rules.
Obviously, any solution to the pension issue will be in improvement of
this position. DOT has already informed vide letter no.40-29/2002-Pen(T)
dated 29the Aug 2002 that,
“it has been agreed in
principle that the payment of pensionery benefits including the family
pension to the Government employees absorbed in MTNL and who have opted
for the Government Scheme of pension shall be paid by the Government”.
Therefore we demand that
issue of implementation of revised pay scales be de linked from pension
Regarding the fitment,
orders of the Government i.e., DPE’s OM no.2(70)08-DPC (WC) dated 26th
Nov’2008 are very clear and mandatory. There is no discretion left to
the Management regarding fitment after adoption of the revised pay
Para 3 of the aforesaid OM
regarding affordability reads as under:-
“The revised pay scales
would be adopted, subject to the condition that the additional outgo by
such revision for a period of 12 months should not result in more than
20% dip in profits before tax (PBT) for the year 2007-08 of a CPSE in
respect of Executives.....”
It may kindly be noted that
the revised scales should be adopted only if the affordability condition
is fulfilled. MTNL has already decided to adopt the revised pay scales
for Executives and the approval of the administrative ministry has also
been obtained. This clearly proves that the affordability condition is
Once revised pay scales have
been adopted, the management has conceded that conditions in para 3
above have been fulfilled. Consequently, fitment formula, as per para 2
of the DPE’s OM is automatically becomes due.
Moreover, the DPE’s order
dated 26.11.2008 is very clear that only the PBT as on 31.03.2008 and
not any other year should be the bench mark for calculating the
affordability. It nowhere talks about any possible worsening profits in
The executives from E-7
onwards including CMD level get maximum benefit of about 45% increase
irrespective of whether the fitment percentage is 5% or 30% as their pay
will get bunched at the minimum of the scale. Then why there should be
fitment less than 30% for other executives?
The revised pay will
continue for another 10 years till the pay is further revised. The
further revision after 10 years will also be based on this revised pay.
The pension and family pension on retirement is also dependent upon the
pay that will be drawn on retirement. Thus the revision of pay has
implications for decades till the life of self or spouse. Therefore the
MTNL Executives are rightfully entitled to the fitment @30%.
The Gr-A officers on
deputation have been given benefit of more than 40% increase in the
basic pay while implementing 6th Pay commission recommendations. The
Government orders have been implemented in toto without any dilution in
the fitment formula. Similarly, the absorbed executives who belong to
the company should also be given fitment of 30% as per DPE’s orders
without any dilution.
While disposing of a similar
case, Hon’ble Supreme Court of India in case no 9244 of 2003 has stated
“Thus, the corporation
cannot put forth financial loss as a ground only with regard to a
limited category of employees. It cannot be said that the corporation is
financially sound in so far as granting of revised pay scales to other
employees, but finds financial constraints only when it comes to dealing
with the respondents, who are similarly placed in the same category.”
The fitment of 30% will
boost the morale of the executives invigorating them to contribute their
best. This boosted morale coupled with the effective policies of the top
management will lead MTNL to flourishing days.
Under these circumstances we
demand that MTNL implement the pay revision in toto as per DPE’s OM
no.2(70)08-DPC (WC) dated 26th Nov’2008 and 02.04.2009 giving
30% fitment on pay+78.2% of DA with effect from 01.01.2007.
We earnestly hope that
Management will carry out its obligations towards its absorbed
executives and not force them to resort to avoidable protest actions.
With high regards,
( V.K.Tomar )
1.DIR (HR), MTNL,
2.DIR (FIN), MTNL,
3. DIR (TECH.), MTNL,
5. ED, Mumbai