Magnificent Strike by BSNL Employees

V.A.N.Namboodiri

The one day strike on 15th December 2011 by the BSNL workers has once again shown that there will be sustained struggles against the neo-liberal policies being implemented by the government with the motive of weakening the PSUs and gradually privatise them. The full participation of the workers in the strike as per the call of the Joint Action Committee of BSNL Associations / Unions of Executives and Non-Executives itself is a warning to the government against its anti-BSNL decisions and plan to disinvest and privatise.

The Back-ground

Since formation of Bharat Sanchar Nigam Limited in 2000, the government has been making all efforts to disinvest and then privatise this most profitable PSU. While the first telecom PSU, VSNL, has been privatised and is now a Tata Company and the second PSU, MTNL, has been disinvested to the extent of 46%, it could not disinvest either 1% of BSNL due to the strong opposition and continued struggles by the BSNL workers. As such, the government has been conspiring with the BSNL top management to weaken it, so that it can be made loss-making and then can justify disinvestment and privatisation.

Accordingly, the commitments made by the government at the time of corporatisation to ensure the financial viability of the company has either been discontinued or withdrawn within a few years.  The Reimbursement of Licence Fee, payment of ADC and liberal grant from Universal Service Obligation (USO) Fund, which were all the assurances of the government have been stopped thereby reducing more than Rs. 8,000 crore revenue of the company.

BSNL was having about Rs.40,000 crore surplus cash in the Banks. This was an eye-sore to the government. Through clever manipulations, the government has taken away almost all this surplus cash within the last few years. In the name of a Notional Loan (which was never given to BSNL nor was there any need), the government took away Rs. 7,500 crore and in addition higher interest at 14.5%, totalling about Rs.15,000 crore. In the name of 3 G and Broadband Spectrum an amount of Rs. 18,500 crore was compulsorily taken away, without giving any chance for BSNL to participate in the auction or bid for the circles it wanted to provide services, which opportunity was given to the private companies. Further, the BWA (Broadband) spectrum allotted to BSNL was of inferior quality not suitable for providing services in advanced technology like 4G etc. Thus, almost all the surplus of the company has been looted by the exchequer

Another method to weaken BSNL was by curtailing its procurement of equipments essential for providing services as also maintenance. Despite the fact that BSNL was given licence to provide mobile services after six years it was granted to private companies, by 2006, it has reached the second position and was competing with the leader, Air-Tel, for the first position. Since there was a market of more than 500 million yet to be tapped, BSNL floated a global tender for 45 million mobile lines. But when the tender was being finalised, the BSNL was compelled by the government to cancel the tender to favour the private companies. Again in 2010, the next global tender for 93 million lines were also got cancelled, making BSNL completely impotent to give mobile connections. A third tender for a humble 5.5 million mobile equipments was also got cancelled in 2011.  This situation was fully utilised by the private companies to maximum provide mobile connections which resulted in BSNL going down to the fourth position in mobile market share. Naturally, the revenue also came down drastically.

While there is a good scope for increasing the Broadband connections, in which BSNL is still the leader by a long margin, due to non-supply of modems required for providing the connections, much improvements could not be made. Due to Non-supply of cables, telephone instruments etc new land line connections could not be given. The inefficiency and lack of commitment of the top management , mainly the ITS officers, most of whom are on deputation from DOT and is not absorbed in BSNL, made the situation worse.

The Joint Action Committee has been continuously approaching the government as well as discussing with the management to take necessary action to improve the situation but of to no avail. As a result, for the first time BSNL posted a loss of Rs.1,850 in 2009-10 and it increased to Rs. 6,000 and odd in 2010-11. The revenue dropped to Rs.29, 000 from the earlier Rs. 40,000.  As  responsible stakeholders, the unions under the leadership of the JAC, started a campaign “ Customer Delight Year 2011-12” from May 2011 onwards making maximum efforts to improve the services and to make the management to procure mobile equipments, cables, broadband modems, telephone instruments etc. which are most important for development and improving the services. Workers took extra pains to make the services better. As a result, the negative trend continuing for the last two-three years were changed to slightly positive, both in providing connections as well as in revenue.

Instead of appreciating the efforts made by the workers, the management purposely started attack on the workers by freezing the Leave Travel Concession & leave encashment and cancelling the medical allowance hitherto being given. Bonus was denied to the workers. In addition, the BSNL Board proposed to the DOT for retrenching one lakh workers through VRS, on the plea that the loss to BSNL is due to the salary to be paid to the large number of workers. But the fact is that even when there was one lakh more workers, BSNL was earning more revenue and more profit. Reducing the workforce will only deteriorate the services as have been seen in the case of MTNL, where VRS has been implemented thrice. The BSNL management, in their own wisdom, forgot the commitment of the former Communications Minister that VRS will not be implemented without consultation with the Unions. The move for VRS and withdrawing existing facilities to the staff was a subtle move by the government/management to demotivate the workers so that the campaign and ‘Save BSNL’ movement by the workers can be defeated and the down fall of BSNL will continue preparing the scene for disinvestment and privatisation.

It was to avert such a situation and compel the management and the government to take urgent actions for improving and expanding the services and to stop from resorting to anti-worker decisions that the call for one day strike on 10th October was given by the JAC. On the basis of the assurances by the management to take necessary actions on some of the demands, the strike was deferred. But, since no important decision was taken by the management as assured, the deferred strike was notified again for 15th December 2011.

In preparation for the strike, serious campaign was organised by the JAC. Many Members of Parliament of various political parties were approached to take up the above issues with the government to save BSNL from the present crisis. Central Trade Unions and All India Federations were approached for support and solidarity. Maximum propaganda was made through the media.

Magnificent Strike

The strike was a complete success throughout the country. Most of the offices were deserted and closed due to the strike. Thousands of striking workers demonstrated in Kolkata, Chennai, Delhi and other major cities. In many centres the striking workers organised massive rallies addressed by trade union leaders. Support came from other trade unions and central Trade Unions. More than 95% participated in the strike giving a stern warning to the government and the BSNL management to change their anti-worker policies and to concede the demands of the workers.

If the issues are not settled urgently and action not taken to procure equipments etc. to improve and expand the services to the customers, the JAC will meet to decide upon further programmes of action.