Joint Forum of Executives of MTNL

Central Headquarters, New Delhi


No.- JF/MTNL/CO/GMHR/2009/                                                                        Dated at ND the 28-04-2009




General Manager (HR) ,

Corporate Office, MTNL,

Jeevan Bharati Bldg.,ND.


Sub:- Regarding ongoing Agitational Program of Executives’ of MTNL Delhi/Mumbai.


Ref No:- MTNL/CO/IRW/21(90)/2009/65 Dated 27th April,2009


Respected Sir,


Kindly refer to your letter No. MTNL/CO/IRW/21(90)/209/65 dated 25/04/2009,in reference to our letter No.JF/MTNL/CO/2009 Dated 16/4/2009, we would like to submit the following for your kind consideration and intervention-


            Kindly recall the assurances given to us that a committee will be constituted of management as well as executives associations representatives to find out the ways and means to implement the revised wages for executives in MTNL with 30% fitment along with HRA and other recommendations, regarding perks and allowances ,but that committee has not been constituted till date. We are constrained to draw your attention that MTNL management in a very arbitrary manner had sent the proposal of revised wages for executives of MTNL with 5 % fitment and capping of HRA as on December 2006. In the letter under reference, ‘ para 4 of DPE OM No. 2(70)/08-DPE(WC)-GL-VIII/09 Dated 02/04/2009’ says.


Para 4 --  The ceilings mentioned under various items given in OMs Dated 26-11-2008 , 09-02-2009 and this OM are the maximum permissible limits. However , lower limits against these maximum permissible limits can be provided in the presidential directives, depending upon affordability, capacity to pay and sustainability of the concerned CPSE.”


The management has misquoted and misconstrued the para as the quoted para above is in reference to PRP which is the only item that contains “Lower Limits and Higher Limits “


Whereas sustainability and profitability is well defined in the DPE order no. 2(70)/08-DPE(WC)-GL-XVI/08 Dated 26/11/2008, para 3 and para 4 states as under;-


Para 3 Affordability for implementation of Pay revision—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 profit before tax (PBT) for the year 2007-2008 of a CPSE in respect of executives as well as non unionised supervisory staff taken together in a CPSE. CPSEs that can not afford to pay full package, can implement with either part PRP or no PRP. These CPSEs may pay the full package subsequently, provided the dip in the profit (PBT) is fully recouped to the original level.”


Para 4 --  The CPSEs ,which are not able to adopt revised pay scales (2007), may give an increase on the basic pay plus DA drawn in the pre revised scale as on 1-1-2007, with a uniform lower fitment of 10 % or 20%, depending upon their affordability, with the approval of their ministry/department.”


Hence it is very clear from the  DPE orders, that the parameters for  the affordability, capacity to pay and sustainability of the concerned CPSE is taken on the basis of the balance sheet of the concerned CPSE before PBT for the year 2007-08,as it has been categorically  mentioned in para 3 OM Dated 26/11/2008, It is worth to mention here that in MTNL, PBT for the year 2007-08 is Rs.641 Crores and the permissible 20 %  amounts to Rs 128.2 Crores ,while in case of implementing new wages for executives of MTNL the expenditure will be Rs. 46 Crores, which is less than 8 % of PBT. It may kindly be noted that there is no non unionized supervisory cadre in MTNL.


In Para 4 of DPE  OM Dated 26/11/2008 ,it has been mentioned that the CPSEs ,which are not able to adopt revised pay scales (2007), may give an increase on the basic pay plus DA drawn in the pre revised scale as on 1-1-2007, with a uniform lower fitment of 10 % or 20%, depending upon their affordability, with the approval of their ministry/department. But this para is not applicable for us as the MTNL balance sheet for the year 2007-08 ,before PBT is a strong indicator that MTNL is in a position to afford and in a capacity to implement, the new wage revision for the executives with 30 % fitment moreover, MTNL has already adopted the revised pay scales. To establish the affordability , capacity to pay and sustainability of any CPSE, the balance sheet is only and only indicator. Hence the MTNL’s balance sheet 2007-08 is meeting all the requirements of DPE’s OM Dated 26/11/2008, 9/2/2009 and 2/4/2009.


Hence the reasons given in the letter under reference for not implementing the revised pay scales with 30 % are far from truth and also not sustainable and tenable .


As far as the sincere efforts of the management to resolve the issue are concerned, following facts are being brought for your consideration. As you have mentioned that management intervened in the matter and invited the representatives of the Joint Forum of Executives of MTNL to apprise the financial position of MTNL ,if you recall the whole discussion, you will find that in the discussion management only apprised us of the financial position which was contradicted by the representatives and suggested to implement 30 % fitment as the MTNL balance sheet of 2007-08 fulfils all the parameters laid down by the DPE in their OM of dated 26/11/2008 and then form a committee to work out the ways to earn more revenue and profit, for which many suggestions were given .Finally it was decided that whole matter will be discussed with CMD MTNL as and when he returns from foreign tour but unfortunately no initiative was taken from the management side in this regard to resolve this issue. So it is not fair to tell that “the matter was under discussion and the Association went ahead with their agitation” .


In the light of above facts, we once again request the management to leave the way of confrontation in the larger interest of company and arrange an immediate meeting with the association representatives so as to start the dialogue and the issues could be resolved across the table amicably to avoid further escalation of  the industrial unrest. We are peace loving people and very much concerned about MTNL organization and services to our valued customers.


Awaiting for a positive response at the earliest.



With Regards.



Yours truly,



A K KAUSHIK                                                                                                              V K TOMAR

GS TEAM                                                                                                                           GS MEA



Copy to:

  1. P.S. to Hon’ble MOC & IT
  2. P.S. to Hon’ble MOS  C & IT
  3. Secretary DoT, Sanchar Bhawan , ND
  5. Dir(HR) MTNL CO, ND
  6. Dir(Fin) MTNL CO, ND
  7. Dir(Tech) MTNL CO, ND
  8. Executive Director, MTNL Delhi/Mumbai
  9. Joint Secretary (T), DoT.