VSP executives express ire over circular linking wage disbursement to meeting targets
VSP executives express anger over circular tying wage disbursement to performance targets, raising concerns about employee morale and operational fairness.
VSP executives express ire over circular linking wage disbursement to meeting targets
The officers of Visakhapatnam Steel Plant on Thursday lodged a complaint to the Central Government against the management for issuing a circular on November 15 linking disbursement of their wages to meeting the production targets.
Representatives of the Steel Executives Association (SEA) and National Confederation of Officers Association(NCOA) Katam SS Chandrarao, KVD Prasad and V.K. Tomar submitted representations to the Department of Public Enterprises (DPE) Secretary's office and met with the concerned Joint Secretary DPE Central Office and submitted a complaint stating that the circular issued by steel plant management linking disbursement of wages to production targets violated the Factories Act and DPE guidelines.
They said for the past four years, the management has been violating DPE guidelines arbitrarily.
The activists explained that executives' salaries and financial benefits have been based on the 2nd PRC since 2007, but due to the "affordability" clause in the 3rd PRC requiring profit for the last three years, the 2017 wage revision did not take place. Last year, HRA curtailed 100% and perks and allowances payable under rules were reduced by six percent.
To improve the performance of public-sector companies, DPE had ordered in 2007 that instead of bonuses and incentives, companies should pay Performance Related Pay (PRP) from their profits. Visakha Steel Plant paid PRP from 2007 to 2014 as RINL registered profits .
Again, for the financial year 2021–22, Visakha Steel recorded a profit of ₹942 crore, and as per DPE guidelines, around ₹37 crore should have to be paid to Executives as PRP. However, it has not been paid till date.
They stated that without regular promotions, executives cannot take additional responsibilities or run the organisation efficiently. For the last five years, promotions have been stopped at Visakha Steel Plant. Many young officers, facing both financial and career setbacks, are leaving the organisation in large numbers, which threatens the survival of Visakha Steel Plant.
They added that even the dues for retired employees have not been paid. As per DPE rules, employees in large numbers took voluntary retirement on March-25 and September-25. Unfortunately 2nd batch have not been paid the VRS package and leave encashment till date and management is not able to tell when they are going to pay.
