SEA & NCOA Appeal Ministry of Labour for Re-Issuance of Demand Letters for Higher Pension

Representatives of the Steel Executives Association (SEA) and the National Confederation of Officers Association (NCOA) — Katam SS Chandrarao, KVD Prasad and V.K. Tomar — met Union Minister of State for Labour and Employment, Shobha Karandlaje, at Shram Shakti Bhavan to discuss key issues affecting employees of Visakha Steel Plant (VSP).

Appeal for Re-Issuance of Demand Letters for Higher Pension

The delegation expressed gratitude to the Government for implementing higher pension for VSP employees, although with some delay.

They urged the Minister to provide another opportunity for around 1,100 employees who were unable to pay against Demand Letters (DLs) issued by the RPFO Visakhapatnam for higher pension.

The reasons cited included:

• Non-receipt of demand letters on time

• Health issues among employees

• Lack of clarity in EPFO letters regarding the pension amount and commencement date

Although the EPFO Headquarters issued instructions in August 2025 to give another chance to all such employees nationwide, the Visakhapatnam RPFO has not implemented these directions, the delegation pointed out.

Demand for Gratuity Hike from ₹20 Lakh to ₹25 Lakh

SEA and NCOA also requested the Ministry of Labour to intervene and direct the Department of Public Enterprises (DPE) to increase the gratuity limit for VSP employees from ₹20 lakh to ₹25 lakh, similar to the benefit available to SAIL employees.

They reminded the Minister that when Visakha Steel Plant was separated from SAIL in 1982, the Government had issued a circular ensuring parity in all facilities, a norm followed until 2020.

The Minister instructed the EPFO Commissioner to take necessary action immediately and assured that she would also take up the gratuity matter with the DPE.

SEA & NCOA File Complaint with DPE for Non-Compliance of Guidelines at RINL

Later, SEA and NCOA representatives submitted a detailed complaint to the DPE Secretary’s office and met the concerned Joint Secretary regarding violations of DPE guidelines by the Visakha Steel Plant management (RINL).

Alleged Violations Highlighted

The delegation stated that a circular issued by VSP on November 15, linking wage disbursement to production targets, violates the Factories Act as well as DPE norms.

Key issues raised:

1. Stagnation of Executives’ Pay Revision

• Executives are still on 2nd PRC (2007).

• 3rd PRC (2017) was denied citing the affordability clause requiring profit in the previous three years.

• Last year, HRA was curtailed 100% and PERKS reduced by 6%.

2. Pending PRP Despite Profits

• As per DPE directives, Performance Related Pay (PRP) must be paid from company profits.

• VSP paid PRP from 2007–2014.

• VSP earned a profit of ₹942 crore in FY 2021–22, implying a PRP payout of about ₹37 crore for executives — still unpaid.

3. No Promotions for Five Years

• Executives have had no promotions for five years, affecting morale, efficiency, and retention.

• Large numbers of young officers are quitting due to career stagnation.

4. Non-Payment of VRS Benefits

• A large number of employees opted for VRS in March 2025 and September 2025.

• Second batch VRS package & leave encashment have not been paid.

• Management has provided no timeline for payment.

DPE’s Response

The Joint Secretary was surprised by these developments and assured that the department would seek clarification from the Ministry of Steel on the alleged violations.