MMTC, STC & PEC staff seek time on merger

Employees of MMTC Ltd, State Trading Corporation (STC) and Project Equipment Corporation (PEC) have sought time till June 20 for giving opinion on the proposed merger of the three companies. The merger will create a $10-billion trading entity.

The merger idea was floated by management consultancy firm McKinsey a few months ago to enable the companies improve overall profitbality.

The three companies have over 3,000 employees, who were asked to give their feedback by May 20. Officials said the employee associations and unions sought extension to enable them to consult the employees in outstation offices.

A majority of the employees are giving their feedback through associations and unions. "Though employee approval is not mandatory for the merger, it is better to get their consent and move in a democratic manner," said a senior official at STC, which is the parent of both MMTC and PEC.

While senior management is worried about how overlapping roles will be addressed""you can't have three chairmen for example""others are worried about promotions in the merged entity.

"The employees have no objection to the merger but they are concerned about their career progression issues like seniority, promotion and work responsibilities after the merger,"said an official.

The employees' comments and feedback would be compiled into a report, which would be submitted to the government to take a final call.

"The process is going slower than expected," said an offical at MMTC. The three companies primarily trade in minerals, metals and bullion, coal and hydrocarbons, and fertilisers and agro products.