Subscribers of UTL likely to face brunt of dispute

KATHMANDU:

Subscribers of United Telecom Ltd (UTL)’s services are likely to face the brunt of the growing dispute between the company management and its trade union. Citing that their demands have not been addressed, the agitating staff members have called an indefinite strike starting Friday.

As there were no signs of talks as of today evening, the protest will affect services like voice and data as employees will not be on duty for operation and maintenance of service network that connects customers spread in 42 districts of the country.UTL’s services had been badly affected for over two weeks last month as well due to the tussle between the management and its trade union.

UTL Chapter of All Nepal Organisation of Bank and Financial Workers Union has said that they had no other option than to go for indefinite strike since the management has not shown any seriousness to their 14-point demand.

However, the management claimed that despite an understanding to address 13 of the demands put forth, the trade union has been continuing its protest with the remaining one demand of salary hike, which is not possible.

“The trade union has demanded that the monthly salary of the employees be hiked by Rs 15,000, which is impossible as the company is facing huge loss,” said SP Pachauri, CEO

of UTL.He also said that the management was always open to hold dialogue with the trade union and end disparities. The company currently employs 92 staff members.

Of the total 14 points, salary increment and issuance of appointment letter to staff completing more than 240 days in the company as permanent workers were the two

major demands. The union is also against the company’s plan to lay off 60 per cent of its workers.

Bikash Kumar Jha, president of UTL’s trade union, said that they will continue the agitation until the management agrees to address all of their demands.

“As staff members stop working, services will be affected sooner or later,” he said.The trade union is also planning to call staff working outside Kathmandu Valley to join their protest from Sunday.Going by the government rules, telecommunication service falls under essential service and it should not be down for more than 24 hours. UTL is the first private sector telecom firm of the country and has 500,000 plus customers in voice and over 55,000 internet service subscribers.

Due to service interruption last month, UTL lost 20,000 to 25,000 customers, according to Pachauri.

UTL has joint investment from three Indian companies — Mahanagar Telephone Nigam Ltd, Telecommunications Consultants India Ltd and Tata Communications Ltd — and a local firm Nepal Ventures.

In last fiscal, it incurred loss of Rs 770 million, after which accumulated loss reached a whopping Rs 1.93 billion, according to the company. Amid competition in the market, the company is also planning to acquire unified licence and double its capital to Rs six billion from the existing Rs three billion.

Subscribers of UTL likely to face brunt of dispute

Jul 3, 2014: UTL’s trade union submits 14-point demand

Sept 30, 2014: UTL management seeks govt’s permission to lay off 60pc staff members

Dec 30, 2014: After number of bilateral and tri-party talks fail, trade union launches protest

Jan 7, 2015: Patan Appellate Court issues interim order restricting protest of UTL workers

Jan 12, 2014 : UTL board meeting decides to acquire unified licence and stick to its decision to cut workers

Jan 24, 2015: UTL management and trade union in mediation of NTA’s Independent Employees Union agree to restore service and resolve dispute in a week

Feb 16, 2015: Trade union launches fresh protest

Feb 18, 2015: Minor scuffle between workers and police

Source: THT