The BSNL Board is expected to meet at least once in a month. BSNL is a mega company and is facing stiff competition from private companies. It is in loss for the last three financial years. Improving the company is important to the country as also all stake holders including the workers. There are many issues regarding the development and expansion issues, financial strategies, marketing etc. to be considered and decided. In addition, a lot issues of the workers are also pending with the Board.

But the Board has not met even once in April 2012. It is not known when the next meeting of the Board will be held. Is it because the CMD and some of the Board members have been on tour, including foreign travels. We are not told what is the reason. Any, it is the responsiblity of the BSNL management to ensure that the Board meeting is held early and decisions are taken to take company forward and settle the issues of the workers.

In a major offensive against the recommendations of the TRAI recommending for higher charges for spectrum allocation, all the major private mobile companies have come together and met the Finance Minister, Communication Minister, Dy. Chairman Planning Commission, Secretary DOT and also PMO to see that the recommendations are not accepted by the government.  Now the Tower companies have also joined them.

Further the pressure of the private companies seems to have its result. The DOT had asked the TRAI on which grounds the high charges for spectrum has been recommended. As told earlier in these posts, through aggressive pressure, private companies are achieving their demands. But BSNL is keeping mum on its justified demands and is losing. There should be an assertive and aggressive management to get its demands conceded by the government. Employees and their unions will fully support the management if it takes a strong stand on the demands of the BSNL.

The Income Tax Department had issued notices to Vodafone imposing penalty of thousands of crores of rupees since they did not abide by the rules in case of merger and acquisition. Not only Vodafone, but other MNCs were putting strong opposition to the correct move of the IT Department. When Finance Minister Pranab Mukherjee was on tour in US, he had told the business community who met him that ‘how can tax be recovered for many years retrospectively?’. It was a clear indication that the government will succumb to the pressures of the MNCs.

Now that is exactly  what is happening.  The central government is reported to have brought an amendment to the Income Tax Act to this effect which will be part of the Finance Bill -2012. When the Amendment to the Act is passed, Vodafone will be free from paying the taxes.

This is one more case of the government surrendering to the dictates and pressures of the MNCs. This is, of course, part of the neo-liberal policy of the government.

Most of  the private telecom companies including Bharti Airtel, Vodafone, Idea Cellular etc. are aggressively pressurizing the government not to implement the TRAI recommendations on the increase in spectrum charges and the conditions for roll out of service etc. They have already met Finance Minister Chidambaram, Planning Commission Deputy Chairman Montek Singh Ahluwalia, Communications Minister Kapil Sibal, Principal Secretary to the PMO, Secretary DOT and others.  This is the method of the private companies when their interests are concerned.

But what about BSNL management?  The track record is bad, very bad. Even when there is only a suggestion from the government, the former immediately implements it even without a whimper even if it is completely against the interest of the company. That is what happened in the case of cancellation of the 45 million GSM lines, 93 million and 5.5 million also, when there was huge demand in the market. The BSNL management allowed its entire surplus cash of Rs. 35,000 crore to be usurped by the government on or other plea/demand. Now it is the same with the VRS issue and disinvestment.

BSNL management should learn from the aggressive actions of the private companies to defend the interests of the BSNL and its stake holders including the workers.Their job is not to liquidate the company but to strengthen and improve it. Will they start even at this late hour ?

Chief  Labour Commisssioner (CLC) has fixed the conciliation meeting on the 15 December strike issues with the JAC on 17th May 2012 at 11.30 AM. As per decision of the last JAC meeting, it was decided to contact the CLC for early holding of the proceedings. I am happy that he has taken immediate action to hold th meeting. All the JAC affiliates will participate.

Private telecom companies are earning good profit. BSNL is in financial difficulty and is taking loan from the banks. But the private companies owe more than Rs. 550 crore to BSNL  on Inter-Connect Usage Charges (IUC) and have not paid it.

The list is headed by Bharti Airtel with Rs. 169.07 crore, Idea Rs. 121.36 crore and Reliance with Rs. 101.63 crore. Almost all private companies have dues to be paid. The details are given in  reply to a Parliament question in Parliament.

But what the BSNL management is doing in this case? What is the action taken by it to recover the amount? Even when the company is approaching banks for loan, why immediate actions are not taken to recover the amount?

It is of utmost important that these arrrears are collected at the earliest.

The central government, in this case DOT, has done an unpardonable injustice to BSNL and the common peole of the country by stopping the annual subsidy of Rs. 2,000 crore in this year which was being paid in lieu of ADC for the last three years.

At the time of corporatisation, the Government assured that to cover up the loss to BSNL for providing loss-making connections in rural areas/villages, Access Deficit Charges (ADC) will be collected from all the telecom companies and will be paid to BSNL. This was coming to about Rs. 4,000 to 6,000 crores. But in 2007 this was arbitrarily stopped by the government. After much pressure by the JAC and also BSNL, DOT assured to pay Rs. 2,000 annually to BSNL in-lieu of  ADC. This was paid till last year. This year it is also stopped. This is complete injustice. When BSNL is in dire need of funds and when there has not been any change with regard to the loss making connections, the grant should continue.

We strongly demand the government /DOT to continue the grant of Rs. 2000 crores to BSNL without any further delay.

I sought a meeting with the Chief Labour Commissioner and the same was granted today itself. Though Shri Prasad, CLC, has only joined two days back after leave for a period of more than one month, he found time to meet me.

I discussed about the conciliation proceedings with regard to the issues of the 15 December strike. CLC said that the next meeting will be held shortly. I also discussed about the non-implementation of the labour laws and social security measures for the casual and contract labour. He assured that necessary action will be taken in the matter. I also submitted a representation in this regard.

Today the leaders of the JAC met Shri R.K.Upadhyay, CMD BSNL and discussed about the developmental and expansion programmes as also improvement of services. Coms. VAN Namboodiri, Convener, P.Asokababu(BSNLEU) Prahlad Rai (AIBSNLEA), K.Sebastian (SNEA) Suresh Kumar (BSNLMS), R.K.KOhli (NFTBE), Hari Singh (BTU BSNL) and other leaders participated.

A separate formal meeting will be held to discuss the issues of the 15 December strike.

(For Further details of the meeting, please see the BSNLEU website)