Government-owned telecom company BSNL has defaulted on the February salaries of nearly 1.76 lakh employees due to a financial crisis, reported The Indian Express.
This is the first time the firm has failed to make salary payments, although its market share has not fallen.
According to the report, approximately 55 percent of BSNL’s revenues go towards paying salaries. While the wage bill footed by the firm increases by 8 percent every year, its revenues are stagnant.
The employees’ union has written to Telecom Minister Manoj Sinha asking the government to release funds to BSNL so that it can pay the salaries. They have also been holding demonstrations, reported The Indian Express.
Twitter Lashes Out at Modi
People on Twitter have also been reacting to this first-ever default, pointing fingers at the Modi-led government.
Salaries Delayed Because Government Not Giving Financial Support
The financial health of the telecom industry has suffered because of Reliance Jio. The letter by All Unions and Associations of BSNL (AUAB) said that however, companies other than BSNL were managing the situation by pouring in more money.
BSNL officials told The Indian Express that the company has now started paying February salaries to staff in Kerala, J&K, Odisha and the corporate office.
“As and when the income is generated, salaries will be paid to the staff. As the government has not given any financial support, the salaries are being delayed,” the official said.
The source told the newspaper that even March salaries could be delayed.
(With inputs from The Indian Express.)