Ordnance Factory Employees Approach Cabinet Secretary Over Central Government Employee Status
The forum has approached the Cabinet Secretary after receiving no response from Department of Defence Production, said AIDEF General Secretary, C. Srikumar

The United Forum of Ordnance Employees (UFOE), comprising recognised employees’ and officers’ organisations of the erstwhile Ordnance Factory Board, has escalated its ongoing battle to retain Central Government employee status. The forum has now approached the Cabinet Secretary after receiving no response from the Department of Defence Production (DDP), according to AIDEF General Secretary C. Srikumar.
UFOE Boycotts Absorption Package Meetings
The seven newly formed Defence Public Sector Undertakings (DPSUs) have begun convening meetings to discuss the proposed “absorption package” for employees. However, the UFOE has already declared a complete boycott of all such meetings.
Despite this, the DDP has issued a schedule for so-called stakeholder consultations.
UFOE leaders have questioned whom the DPSUs intend to consult when nearly 90% of employees and all officers have submitted written declarations refusing absorption into the DPSUs.
“The government cannot force employees to join the DPSUs. Doing so would directly violate the written commitments made before various High Courts,” Srikumar stated.
Demand for Notification Retaining Central Govt Status
UFOE maintains that the Government had assured in writing before courts that employees could remain Central Government employees till retirement, even after corporatisation.
Srikumar questioned why—despite such commitments—the Government has not issued a formal notification guaranteeing this status.
He added that similar protections were provided to employees of All India Radio and Doordarshan when those organisations underwent structural changes.
“Ordnance Factory employees have worked day and night during wars and national emergencies to equip our armed forces. Harassing them now is unjust,” he said.
The forum has urged the Cabinet Secretary to intervene and direct DDP to hold discussions on finalising modalities to retain employees as Central Government staff with full protection of service conditions, pay, benefits and rules.
Absorption Package termed “Hopeless” by Senior Officer
A senior officer, speaking to www.indianpsu.com on condition of anonymity, criticised the proposed absorption package offered by the DPSUs.
He stated that in many categories, pay scales have been downgraded, contradicting the Government’s claims that the new DPSUs are profitable.
“If they are running in profit, why is it not reflected in the absorption package?” he asked.
He also warned that competing with private sector defence companies will shrink future order books, raising doubts about the financial ability of DPSUs to sustain employee salaries after absorption.
The officer added that even those few senior employees who were earlier considering absorption have reversed their decision after reviewing the draft HR policy and pay structure.
“The absorption package has become an eye-opener. It has pushed nearly everyone to remain in Government service. This is a setback to the Government and DPSUs,” he concluded.



