Heads of state-run companies have welcomed the revision in the pay scale of executives saying the move will help contain attrition and correct the wage distortion in public and private sector to some extent.
Heads of Oil and Natural Gas Corporation (ONGC) and Indian Oil Corporation (IOC), which faced a strike threat by its executives over non-revision of wages, said the decision of the Cabinet yesterday to implement the Rao Committee report addressed most of the aspirations of their staff.
"I would say (that the pay revision is) a much awaited correction. The pay scales in the public sector and private sector... The difference had become too large and the way our experienced people were leaving PSUs and joining private sector was a cause of concern," ONGC Chairman and Managing Director R S Sharma said at the sidelines of SCOPE function.
He, however, added that the pay hike would not stop poaching by private companies on experienced staff of PSUs as the difference in salaries drawn by employees of the public sector and private sector was still quite large.
"I would not say it (poaching) will stop," he said. "This (pay revision) addresses concern(s) to a large extent but not entirely," he added.
IOC Chairman Sarthak Behuria said the public sector fraternity was very happy with the Cabinet decision as almost 90 per cent of aspirations of the employees had been fulfilled.
"Under the circumstances it is good," he said, adding that yet some issues relating to senior level pay scales and very large gap between high and low levels of salary scale still remained.
