BSNL defaults on February salaries to 1.76 lakh employees: Report

An official said employees should expect a delay in their March salaries as well even though cash flows in this particular month are higher due to billing from the enterprise business.

New Delhi, March 13, 2018: BSNL failed to pay the salaries to it’s employees for the month of February, reports The Financial Express. Contractual employees are in a pitiful condition. In some areas, contractual workers haven’t received any salary for  past couple of months. BSNL’s corporate management said that BSNL is facing cash deficit and hence unable to make payments. This is the first time the firm has defaulted on its salary payments.

BSNL has been incurring losses for the past five years. This default could indicate stormy times ahead for the telecom firm as competition in the sector rises.

The company’s employee union approached Telecom Minister Manoj Sinha asking him to release funds for employee salaries and to support BSNL financially. There have also been some cases of demonstrations by workers for the same. “A financial crisis is being faced by other operators also, but they are managing the situation by infusing huge amounts,” All Unions and Associations of BSNL (AUAB) wrote to Sinha.

Nearly 55 percent of BSNL’s revenue are dedicated to paying salaries, which increase by eight percent annually. However, its revenue remains stagnant.

As per the reports, BSNL’s total losses is RS. 31,287 crore which alarms the government to make final decisions for the company’s future.

Closure of BSNL services can also affect the upcoming elections as BSNL employee union charged the government for not taking effective decisions to resolve the problems faced by the company to benefit a rival telecom firm.

Sources told the paper that BSNL has started disbursing wages to staff in Jammu & Kashmir, Odisha, Kerala and Delhi. “As and when the income is generated, salaries will be paid to the staff. As the government has not given any financial support, the salaries are being delayed,” an official said.

The person added that employees should expect a delay in their March salaries as well even though cash flows in this particular month are higher due to billing from the enterprise business.

The company is reportedly looking to avail a loan, but the Department of Telecommunications has not approved the move yet.

BSNL reported a loss of Rs 8,000 crore in FY18, significantly up from a loss of Rs 4,786 crore in FY17. Losses in FY19 are expected to rise even further.