Ordnance Factory Employees Reject Absorption into 7 New DPSUs

Trade unions AIDEF, INDWF, BPMS & CDRA jointly resolve to remain as Central Government employees till retirement

It appears that the Government of India is unwilling to accept the long-standing demand of Defence Civilian Employees of Ordnance Factories, who have been placed on forced deemed deputation with the seven newly created Defence Public Sector Undertakings (DPSUs). Employees and their trade unions have consistently maintained that they do not wish to be absorbed in the DPSUs, citing uncertainty about the future of these entities.

The unions are demanding that the government issue a notification allowing employees to continue as Central Government employees in the new corporations, as was assured before the Hon’ble High Court and earlier followed in the case of All India Radio and Doordarshan staff deputed to Prasar Bharati.

On August 4, 2025, the Government constituted a High-Level Committee chaired by the former Secretary (Defence Production) to recommend an absorption package for these employees. Learning of this, the employees’ organisations—AIDEF, INDWF, BPMS and CDRA—expressed strong dissatisfaction over what they call an “unfair approach” by the government.

In an emergency meeting on August 25, 2025, the federations decided to launch a campaign to reach every employee, collecting signatures on option forms declaring their refusal to join the DPSUs and opting to remain on deemed deputation until retirement. A joint circular issued on August 30, 2025, outlined reasons for rejecting absorption, including:

  • Lack of financial security of DPSUs once government support ends on 30.09.2026.
  • Certain DPSUs like TCL and GIL already in serious financial trouble.
  • AWEIL and AVNL yet to secure major tenders in competition with the private sector.
  • YIL’s weak performance.
  • No guarantee of salary and expenditure if DPSUs collapse.
  • Threat of forced VRS/Special VRS.
  • No job security.
  • NPS/UPS employees risk losing right to demand Old Pension Scheme.
  • Risk of pension forfeiture for OPS employees if dismissed after absorption.
  • False promises of fast promotions and increments.
  • Government intention to allow DPSUs to become sick, paving way for private takeover.
  • Reduction of sanctioned strength since 01.10.2021, raising absorption concerns.
  • CCS Pension Rule 37-A provisions that endanger employees in case of disinvestment beyond 51%.
  • Disinvestment/privatization guidelines dated 13.12.2021 allowing only a minimal government presence in defence PSUs.
  • High risk of privatization, merger, or closure of DPSUs in future.

The federations concluded that, with these risks looming, no employee should opt for absorption. The unions are now preparing for an industry-wide strike after conducting a strike ballot.

C. Srikumar, General Secretary of the All India Defence Employees Federation (AIDEF), said that the Government cannot discriminate between its own employees. He pointed out that erstwhile Akashwani and Doordarshan employees have been allowed to remain as Central Government employees till retirement through a notification, with the Government continuing to provide budgetary support for their pay and allowances.

“Why then is the Government keen to push Ordnance Factory employees—who are the fourth force in the defence of our country—into the hands of DPSUs?” he asked.

Srikumar reiterated that Ordnance Factories are war reserves and should be retained under the Government. “The Government must restore all 41 Ordnance Factories as a departmental organisation under OFB. In the meantime, sufficient workload and financial support should be provided, while retaining the 63,000 employees as Central Government/Defence Civilian Employees in the seven DPSUs, as assured before the Madras High Court in the Writ Petition filed by AIDEF,” he said.

A copy of the joint statement of the four trade unions is given below for the benefit of the viewers of www.indianpsu.com

Related Articles

Back to top button