All Promises Broken Post Corporatization In 2021 – What The Year Was For OFB Employees !

Despite stiff opposition from 76000 employees and their federations, three months ago, 41 Ordnance Factgories were converted to 7 Defence PSUs by the Modi government. When the Federations issued a strike notice against the Government decision, the Government immediately promulgated the Essential Defence Service Ordinance banning the strike in Defence Sector.

Subsequently the Ordinance was passed in the parliament and EDSA-2021 came in to effect. The All India Defence Employees Federation has challenged the EDSA-2021 in the Delhi High Court, the High Court has admitted the Petition and notice has been issued to the Government. The AIDEF have also challenged the Govt. decision on Corporatisation of Ordnance Factories and also against the changing of the status of the Employees who are on deemed deputation. The Government of India in its counter filed in the Madras High Court has stated that Corporatisation is a policy matter of the Government and hence cannot be challenged.

However, surprisingly with regard to the status of the employees in the counter affidavit the following is stated Para-46 : the employees of OFB would continue to be Central Government Employees till they themselves opt to get permanently absorbed in the new Companies and they have been sent on deemed deputation.

Such position of employees remaining on deemed deputation as Central Government employees is prevailing in only Prasar Bharti. It is ascertained from the employees that they are not going to opt for joining the 7 DPSUs, since the Government., itself has committed before the Court that the employees can continue as Central Government Employees in the DPSUs on deemed deputation till their superannuation. Post Corporatisation of Ordnance Factories even though the Government has categorically stated that all the service conditions of the employees of Ordnance Factories will be protected and that Pension liabilities will be of the Government, the Federation
allege that all these commitments given by the Government in the Court, in the parliament are being blatantly violated and the employees are agitated.

www.indianpsu.com contacted C.Srikumar, General Secretary of the AIDEF to find out what is happening in ordnance factories post Corporatisation. He stated that the employees are deeply concerned about the manner in which they are being treated post Corporatisation. The DDP without any application of mind and without conducting proper analysis and study about the implications of converting a Government Department in to a Corporatisation have blindly implemented Corporatisation only to satisfy the political bosses. There is no structured coordinating body to monitor the functioning of the 7 DPSUs and the new PSUs are allowed to fend for themselves and thrown in to the competitive arena without even studying the feasibility of such hasty action producing the pre-conceived results.

The KPMG consultant has seriously erred in their recommendations which instead of improving the functioning of the Organisation, decapitated the only Organisation which served the Indian Armed Forces with honour and glory. How does a strategic entity like Ordnance Factories can do miracles over night by transforming the structure in to multiple PSUs and that too without inter dependability, especially when the policy of the present Government is to privatise the PSUs.

Even the new technologies developed by the DRDO is being handed over to private sector and not being given to the Ordnance Factories. The latest example is technology for indigenous Extreme Cold Weather Clothing System was handed over to 5 Indian Private Companies by the Chairman of DRDO, ignoring the Ordnance Factories.

So far as the service conditions of the employees are concerned, the DPSUs are tinkering the service conditions of the employees without any authority. Working hours are being increased, payments are being delayed, compassionate appointment to the wards of the deceased employees is stopped, Industrial Relation Machineries like JCM are being suspended. As per the Cabinet decision Pension liability is of the Government. However the DDP have issued an order that Corporation will contribute 14% Employer contribution and that the Corporation will maintain the NPS Accounts of the Employees. The Federations (AIDEF, BPMS & CDRA) have protested against this and representations are being submitted to the DDP for restricting the Corporations from interfering and tinkering the service conditions of the employees.

In a meeting held with the Federations the Addl. Secretary(DP) have assured the Government will honour all its commitments made in the Parliament and Courts and are fully committed to protect the interest of the employees of Ordnance Factories as Central Government Employees. He assured for issuing necessary instructions to all the Corporations, but till date no instruction has been issued by the DDP. In this situation we will be left with no
other option other than to file Contempt of Court Petition against the concerned authorities for violating the commitments of the Government.

When the year 2021 is coming to an end, www.indianpsu.com hopes that the Government will honour its commitments before the Parliament and High Court and issue directions to the CMDs of the 7 DPSUs, so that there is no disturbance in the Industrial Relations and Defence production.