Govt's plans to disinvest will lead to job losses: CONCOR employees' union

The employees union of Container Corporation of India Limited on Monday said the government's plans to disinvest in the railway PSU will lead to loss of jobs.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi had recently accorded "in -principle" approval for strategic disinvestment of Government of India shareholding of 30.8 per cent (out of 54.8 per cent equity presently held by the Government) in CONCOR under the ministry of railways, along with transfer of management control to a strategic buyer.

A statement issued by the union said that CONCOR is the only Navratna PSU in railway and it's a performing organization for creating balance growth of the economy by promoting Export/Import on pan India basis through its 83 terminals. Out of them 43 are on railway land and approximate cost of land is Rs 25,000 crores, it said.

"Nearly 10 lakh people directly and indirectly are employed with CONCOR and the decision regarding disinvestment will affect 10 lakh families...

"If disinvestment is executed then this land will go in the hands of private player Whereas by strategic disinvestment of Government of India shareholding of 30.8 per cent the government will get only Rs 10,780 crore," it said.

It also said that CONCOR was given Rs 65 crore in the year 1989-90 towards paid up capital, and till date the PSU has paid back Rs 8000 crore to the government directly.

The total turnover was Rs 7216.14 crore in last FY 2018-19 with total profit of Rs 1689 crore, it said.

"In view of the above I humbly request you that the employee of CONCOR who is the main stockholder which built this company with their hard work and toil so that it grows by leaps and bounds to new heights but in this process of disinvestment and strategic sale they are being ignored and no initiative for talks with CONCOR employees Union has been taken by the government.

"As a result there is fear among employees regarding sudden change of service conditions and ambiguity regarding facilities and their rights," the statement signed by the employees union President, Binay Kumar Choudhary, said.