TIL Desk/Business/New Delhi/ Telecom Minister Ravi Shankar Prasad has directed the ailing telecom PSUs, BSNL and MTNL, to start a dialogue with their employees on the terms and conditions of the voluntary retirement scheme (VRS) and prepare a roadmap for its successful implementation, highly placed sources said.
The Union Cabinet had last month approved a revival package for BSNL and MTNL which includes a voluntary retirement scheme (VRS) for their staff. The aim is to reduce the employee cost of the two companies by offering VRS to their staff aged 50 years and above based on the Gujarat model with some modifications.
The government has set January 31, 2020 as the last date for employees opting for VRS. It will give Rs 17,160-crore for VRS settlements and another Rs 12,768 crore towards retirement liabilities. BSNL has 1.76 lakh employees, of which some 1.06 lakh are over 50 years of age. The telco is keen that 80 per cent of the employees should opt for the VRS. MTNL has around 22,000 employees. BSNL’s employee cost is 75 per cent of its total income and MTNL’s employee cost is 87 per cent of its total income.
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