Govt. efforts to avert telecom strike fail

NEW DELHI: Indian government officials held eleventh-hour talks with labor

unions on Tuesday to avert an indefinite strike planned by more than 325,000

state telecoms workers from Wednesday.

But there was no signal after hours of talks that the unions, protesting

against a plan to turn the government-run Department of Telecom Services (DTS)

into a 100 per cent privately owned company from October 1, had given up their

plan.

The strike could hit services if it is prolonged but since telephone

facilities are automated to a great degree, there may no immediate impact,

experts say. Maintenance services are likely to be hit first.

The corporatisation will shift the DTS to a professional management culture

from a bureaucratic departmental structure and create shares to represent its

ownership.

A labor leader at the National Federation of Telecom Employees, one of the

three main unions planning the strike, told Reuters there was no plan to call

off the strike but things could change in view of the talks.

"We hope the strike will not be there. The main leaders are away...The

matter is still under discussion," he said.

Communications Minister Ram Vilas Paswan told reporters that the government

was committed to the "corporatisation" of the department and boosting

competition in the industry, but was equally committed on the future of workers.

"It (the talks) seemed positive to us. But they have to announce (an end

to the strike)," Paswan said. "We can only appeal. When the government

has given a guarantee, there should be no doubt."

He said the workers were given assurances on all three of the key issues they

are concerned about: financial viability of the proposed company, the job

security of workers and pension benefits from the government or a separate fund

as they desired.

DTS has around 400,000 workers but 325,000 who are represented by the three

main unions are expected to take part in any strike. They include operators,

technicians, clerical staff and junior officers.

Private phone firms, which entered India under a liberalization policy, are

too small and do not have big enough networks to make any impact. The state

monopoly is only now gently shaking off its stronghold.

Paswan said the government also assured the workers that it could compensate

for losses the new company could suffer if its rates were unviable.

No privatization plan now



The Indian government says it needs to corporatise the department to free it up
from the apron strings of the bureaucracy, spread telephone penetration and make

calls cheaper.

Officials said the unions were also concerned about possible privatization or

disinvestment in the company, although the government had no such plan now.

"In the event that it (disinvestment) happens in the remote

future...then their pensions will be protected," said Telecom Commission

chairman Shyamal Ghosh. The Commission oversees telecommunications policy.

"We said if you have doubts (on possible privatization) then we will

ensure clauses to guarantee your future," Paswan said.

(C) Reuters Limited 2000.