BSNL unions oppose second VRS, cite policy flaws, management inefficiency

The criticism follows reports that BSNL's board of directors plans to reduce its workforce by 35 per cent through another round of Voluntary Retirement Scheme

The BSNL Employees’ Union (BSNLEU) has strongly criticised the management of Bharat Sanchar Nigam Limited (BSNL), blaming inefficiencies and poor policy decisions for the telecom operator’s ongoing financial struggles. The union has demanded the withdrawal of the proposed second Voluntary Retirement Scheme (VRS), as per a report by Moneycontrol.

 

This opposition comes in the wake of reports that BSNL’s board of directors intends to reduce the workforce by 35 per cent through another VRS initiative. The concerns were raised in a letter addressed to BSNL Chairman and Managing Director Robert J Ravi on December 30. In the letter, BSNLEU General Secretary P Abhimanyu argued that the company’s financial issues stem from revenue stagnation rather than the size of its workforce. He urged the management to reconsider its approach and focus on revenue-enhancing strategies.

 

 

The union has further called for a detailed assessment of BSNL’s policies and operational inefficiencies, which it identified as key factors hindering the company’s recovery and growth.

 

BSNL workforce and VRS concerns 

As of March 2024, BSNL employs 29,750 executives and 26,435 non-executives. The first VRS in 2020 saw an unexpected response, with 80,000 employees opting for early retirement — far exceeding the anticipated 30,000–35,000. The union contended that introducing another VRS is unwarranted, citing the case of Mahanagar Telephone Nigam Limited (MTNL), where repeated VRS schemes failed to reverse financial woes and instead pushed the organisation closer to insolvency.

 

Currently, BSNL allocates 38 per cent of its revenue to employee salaries, a stark contrast to private operators such as Jio and Airtel, where salary expenses remain in the single digits. However, the union dismissed such comparisons as ‘misleading’, pointing out that private companies generate significantly higher revenues, making their proportional salary costs appear smaller.

 

Continuing challenges for BSNL 

Despite receiving financial revival packages in 2019, 2022, and 2023, BSNL has struggled to enhance its revenue streams. Unlike private players like Jio and Airtel, which have implemented nationwide 5G rollouts, BSNL continues to rely on outdated 2G and 3G technologies. The union criticised delays by Tata Consultancy Services (TCS) in deploying BSNL’s 4G equipment, citing revenue losses and growing customer dissatisfaction. Even in areas where 4G services have been introduced, users have reportedly faced issues with subpar voice and data quality.

 

Adding to these challenges are government policies that restrict BSNL from sourcing 4G equipment from established international vendors such as Nokia, Ericsson, and Samsung. The union argued that this exclusivity to Indian vendors deprives BSNL of a fair competitive edge in the market.

 

Parliamentary and stakeholder concerns 

The Parliamentary Committee on Public Undertakings has also highlighted concerns over BSNL’s reliance on TCS’s 4G technology. The committee recommended seeking foreign technological assistance to address performance issues and improve service quality.

 

Meanwhile, the All India Graduate Engineers and Telecom Officers Association (AIGETOA) has also opposed the VRS proposal. In a letter to BSNL’s management, AIGETOA General Secretary Ravil Shil Verma criticised the unilateral decision-making process, stressing that critical issues such as pay, pensions, promotions, and the third pay revision commission (PRC) remain unresolved.

 

Both unions have highlighted the need for addressing systemic policy flaws and managerial inefficiencies over workforce downsizing. They stressed that prioritising technological upgrades and resolving organisational issues is essential for BSNL’s long-term sustainability and revival.