Oil company employees to go on strike from 7th January
Posted on Jan 6, 2009
Executives of state-owned oil companies are going to be on Strike in search of “justice” on pay hikes. The Oil Sector Officers Association, an amalgamation of officers’ unions of 14 state-run oil firms, has told the government that its members will stop work indefinitely from January 7 against the “minuscule wage hikes”.
Unlike previous times, this time the unions are all united and firm on their resolve to strike work as executives said the government had “betrayed their trust” while approving the wage hike last month.
Demands
- Contrary to government claims of a 200% rise in oilmen’s salaries, the actual raise ranges around 17%. This is because the hike that is being talked about is at the basic pay level and when calculated after merging dearness allowance (DA), the net pay hike is minuscule as seen from the accompanying chart (in terms of every Rs 100 pay).
- The executives are also seeking open-ended pay scales, removal of ceiling of 50% of basic pay on perks and allowances, a wage revision every five years, and maintaining the same annual and promotion increment levels of four and 6%, already in vogue.
The strike will result in
- This has raised fears of fuel supplies getting crippled and causing irreparable damage to oil wells, especially the old ones, which may fail to resume production if pumping is stopped once.
- Loss to ONGC Rs 183 crore per day revenue loss
- All upstream companies put together, the revenue loss would total Rs 225 crore per day
- IndianOil, would alone lose Rs 600 crore per day in revenue
- All retailers put together would lose over Rs 900 crore per day.
- Loss on excise duty to the government is expected to be more than Rs 100 crore a day.
Comments are closed. Please check back later.