The Hindu Business Line : As SCI celebrates record profits, union sees red

THE state-run Shipping Corporation of India (SCI) is all set to celebrate the occasion of notching up a record half yearly profits of Rs 529 crore for the first six months of the current fiscal ended September 30.

This is the highest ever half-yearly profits clocked by the company in its close to 30-year-old history, due mainly to the unprecedented boom in the freight market. The PSU is expected to end the fiscal with a net profit of over Rs 1,200 crore. The highest full year net profit earned by the company so far was Rs 626 crore for the fiscal ended March 31, 2004.

SCI has sent out invitations to about 250-300 dignitaries including top Government officials, clients, customers as well as agents of the company to be present at Regal Room, Hotel Oberoi on the evening of December 12 " for sharing the joy of success".

The celebration will include a classical music evening with two doyens of the country's cultural firmament Parveen Sultana and Pandit Shiv Kumar Sharma.

However, the staff union of SCI has baulked at the upcoming event frittering away public funds for no worthwhile reason. And that too when the company has not fulfilled the obligation of paying the 5 per cent productivity linked rewards (PLR) as profit incentives to the employees since 1997 as per the recommendations of the Justice Mohan Committee which was notified by the Government.

"It is a meaningless exercise. As a PSU we are setting a wrong precedent. And, where does this fit into the austerity drive espoused by the Prime Minister, Dr Manmohan Singh," asks Mr Kiran Pulekar, General Secretary, SCI Staff Union.

Significantly, an agreement signed between the employees and the management in 2002 does not mention anything about the payment of PLR though guidelines in this regard were issued in 1997. "On that basis, the management has not paid PLR to the employees since 1997 despite verbal assurances ", Mr Pulekar added.

The employees of SCI staged a demonstration in front of the SCI office in Mumbai on Thursday protesting against the "avoidable and wasteful expenditure of about Rs 14 lakh" for conducting the event.

Mr P.K. Srivastava, Chairman & Managing Director, SCI, says that the contention of the employees on the non-payment of PLR and the December 12 event were " two totally different issues that have no relation at all".

"The December 12 celebration is being organised to felicitate our customers to whom we owe our existence and to all those who have contributed to the success of SCI. Many companies including oil PSUs such as IOC have done it. So, there is nothing new about it," he quipped.

"The payment of PLR to the employees is in the hands of the Government and not with the company. If the Government does not clear the proposal what can we do about it? The company does not have the authority to go beyond a certain point," he observed.

More Stories on : Trade & Labour Unions | Shipping

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
HC says no simultaneous action under Securitisation Act, DRT

Industrial growth tops 10 pc in Oct

Rupee slides; bonds rally

Inflation falls a tad on cheaper food items

PM clears airports modernisation plan

Govt rules out regulatory body for steel sector

Bumper production likely in mustard/rapeseed

Sensex drops sharply

As SCI celebrates record profits, union sees red

Convergence of markets remains non-starter