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A section of officers of UTI are said to be unhappy over certain revisions in pay after extended negotiations with the management. A source said the employees were likely to approach the management over the issue. Another source said the recent increase in pay had been in low single digits.
Most employees are those who have been a part of the organisation for about twenty years. They said the pay revision wasn’t in line with those given to new employees. “It has been disappointing. How can one survive on such hikes?” said an employee.
“They have not given adequate hikes for some time. We are hopeful the change in management will help deal with the issue,” said another.
UTI said the pay increases had been regular and in line with performances. “Every year, UTI AMC undertakes a review of the salary levels of its officers to ensure it maintains the competitive edge for retaining talent. Each year, salary increments are based on the performance of the company and of individual officers,” the company said.
In 2011, officers of the mutual fund had gone on a strike, protesting against static wages. Negotiations to resolve the issue have been taking place on a regular basis between the UTI management and the employees, said to be about 1,000.
On August 14, Leo Puri took over as the company’s managing director. A board meeting is said to have been scheduled for Friday, though the company declined to confirm this, terming it an “internal matter”.
State Bank of India, Life Insurance Corporation of India, Bank of Baroda and Punjab National Bank each hold 18.5 per cent stake in the paid-up capital of the asset management company. T Rowe Price Group, through its wholly-owned subsidiary, T Rowe Price International, is the largest stakeholder. In 2009, it had bought 26 per cent stake in UTI Asset Management Company.
UTI is India’s fifth-largest mutual fund, in terms of average assets under management (Rs 74,706.71 crore) during the quarter ended June, according to data from the Association of Mutual Funds in India.
For 2012-13, UTI Asset Management Company reported a net profit of Rs 148.9 crore, a rise of 11 per cent compared to 2011-12, according to figures available on UTI’s website.
