RINL takes the salary cut route to tide over financial crisis
The reduction is 12% in perks and allowances for board-level executives and 6% for executives up to E-9 grade, and these provisions are applicable from wages payable from August 2024 to March 2025; it is a meaningless decision, says unions
The management of Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant (VSP), has recently taken a decision to reduce salaries of its employees
The decision comes at a time when the VSP unions are fighting to save the plant from severe financial crisis.
The company’s Human Resource Department has issued a circular to its staff, notifying them of reduction in perquisites and allowances.
According to the HR circular, the reduction is 12% in perks and allowances (from 46% to 34%) for board-level executives (less than 10 members, including CMD), and 6% (from 46% to 40%) for executives up to E-9 grade (about 4,100 members).
These provisions are applicable from wages payable from August 2024 to March 2025. The plant has 12,800 permanent employees and 16,000 contract staff.
Speaking to The Hindu, an official spokesperson of RINL-VSP said, “Yes, keeping in view the critical financial situation of RINL, the cost-cutting measure of reduction in salaries will be implemented with immediate effect.”
Reacting to the decision, the leaders of the steel plant unions expressed anger that it was meaningless. Instead of putting pressure on governments for funds and raw material, the management took wage cuts as a measure to cut costs and expenses.
Honorary president of Steel Plant Employees’ Union J. Ayodhyaram said that with the decision, the steel plant would be able to save around ₹1.25 crore per month. “The savings are negligible when compared with its financial losses. It is a meaningless decision. The employees, particularly the non-executive and contract staff can sacrifice extra hours of work for plant, instead of bearing the reduction of salaries.”
“There has been no pay revision since 2007,” Mr. Ayodhyaram added.
On the other hand, Visakha Ukku Parirakshana Porata Committee chairman Ch. Narasinga Rao said they would raise the issue in the protest programme to be held at the CMD office on August 22.
“So far, we have held more than 30 meetings to mobilise the cadre for the CMD office siege protest on Thursday. The CMD may conduct a Board meeting on the day (August 22) as per the information available with us. We will intensify our protest in the coming days,” he said.
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