BSNL fails to pay salary of over 1.70 lakh employees in February

Facing financial constraints, state-owned BSNL has failed to pay February salaries to its over 1.70 lakh employees, said a Times of India Report, adding that price war with private companies is mainly responsible for it. The BSNL employees are generally paid on the last working day of the month or the first working day of next, but salary for February has been delayed for more than 10 days. 

Citing sources, the report said that BSNL is witnessing crisis like this for the first time despite enjoying major market share. Left with large staff in comparison to lean private firms, the telcos has to face this number with public sector wages.

Baring J&K circle and some ranks in corporate house, the BSNL staff across the country have not been paid, said the report, while adding that this was confirmed through highly placed sources in BSNL. 

Meanwhile, employees’ union has urged telecom minister Manoj Sinha through a letter that the government should release funds to the BSNL to pay the staff salaries besides reviving cash strapped firm.

The associations and unions of BSNL have also stated that the financial health of telecom industry has suffered due to predatory pricing of Reliance Jio. 

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Notably, BSNL has to spare around 55% of its revenues towards payment of wages. The company’s wage bill has reportedly increases 8% annually, while its revenues are stagnant. The BSNL has reported loss of around Rs 8,000 crore for FY18, compared to Rs 4,786 crore in FY17. The current fiscal is also expected to witness the loss over Rs 8,000 crore.