Financial Daily from THE HINDU group of publications
Saturday, May 04, 2002
Financial Daily from THE HINDU group of publications Saturday, May 04, 2002 |
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Industry & Economy
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Disinvestment AP Govt okays compensation package for PSU staff Our Bureau
HYDERABAD, May 3 THE Andhra Pradesh Government has issued fresh guidelines for payment of special compensation package (SCP) for employees of State enterprises which are to be privatised in specific cases where the management passes over to private parties. According to Mr D.K.Panwar, Principal Secretary, Public Enterprises, Government of Andhra Pradesh, as per the guidelines, the SCP is offered only to such employees who give their consent for recruitment by the private management. Those who are not selected/recruited by the new management, but have given their consent, are also offered SCP. If they do not give their consent, they are debarred from claiming the SCP benefits. The first step envisaged to be taken is to call for the consent of all employees of the PSUs slated for privatisation on the issue as to whether they would like to be considered for recruitment under the private management. In case the employees do not exercise their consent to go to the private management, these employees will not be considered under the Government directive. Further, with a view to smoothen the process of privatisation process, Mr Panwar said it was decided to delink the issue of giving consent to work under new management and claiming of VRS benefits. Based on this thinking, after careful consideration, the Government has given necessary framework for both SCP as well as VRS and the process of addressing them in a systematic manner. While implementing the privatisation programme for the State enterprises in the State, the Government has drawn up a plan to evolve the necessary mechanism to safeguard the interest of employees consistent with the need to ensure that privatised PSUs operate on sustainable basis. The Government's priority is to ensure that viable jobs are preserved. However, if job losses were inevitable, the Government would ensure fair and adequate compensation to those employees who were affected by such job loss, he added.
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