There seems to be a disconnect between the Department of Telecom and the employees union of Bharat Sanchar Nigam Ltd on the latter’s IPO plans.
While DoT on Friday said that the employees’ union of the telecom company had assured it of positive response to the IPO proposal , BSNL Employees Union said no such assurance had been given.
In a statement, DoT said that the staff union had agreed to BSNL listing its shares on the stock exchanges during a meeting with the Communications and IT Minister, Mr A. Raja, on Thursday.
“The unions will respond positively to the suggestion for listing of BSNL before June 3, which will help BSNL in getting Navratna status – very essential to maintaining its image and ensuring its survival and growth,” said an official Government press release.
However, the employees union said that the information released by DoT was incorrect. When contacted, Mr V. A. N. Namboodiri, General Secretary of BSNL Employees Union, said, “We have given no such assurances to the Government. This is mischievous. We have maintained that the employees are opposed to any proposal for either disinvestment or an IPO. We had communicated this to the Minister during our meeting on Thursday, and not what DoT has put out in its release.” BSNLEU is the apex federation of the various employees unions of the company.
Quid pro quo
DoT officials, however, said that the union had agreed to support the IPO plans after the Minister gave his approval to the employees’ demand on pay issues. The official said that Mr Raja also agreed to the union’s demand on issues related to promotion and posting. They said that the union had also agreed that it would withdraw the call for indefinite fast and not to hold any more dharnas or strike on any of these issues.
The company had earlier proposed to dilute about 10 per cent stake through the IPO and had approached the Communications Ministry for approval. However, following stiff opposition from the employees union, the BSNL management had shelved its plans, reports The Hindu Business Line.
Source: Moneycontrol.com
Saturday, May 31, 2008
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