Admitting poor financial position, Defence Minister Manohar Parrikar has said that payment of wage arrears on account of wage revision is linked to performance of the Hindustan Shipyard Limited (HSLL).
In response to a letter by MP and CITU general secretary Tapan Sen, the Minister said that the company, a unit under the Ministry of Defence, was not in a position to pay arrears due to its present financial position.
“As per the memorandum of settlement entered into with the recognised union effective from January 1, 2009, for workmen and staff, the payment of arrears on account of wage revision is linked to improvement in financial position of the company,” he stated in the reply dated November 28.
At present, the Minister said, 22 vessels of Indian Navy, Coast Guard, NTRO, and Kandla Port Trust formed part of HSL’s order book.
The officers have been paid wage revision arrears through special funding inducted in the financial restructuring implemented in 2011.
HSL was brought under MoD from Shipping in February 2010.
The MoD had sanctioned Rs.824.9 crore to the HSL in March 2011 to clear the legacy liabilities and also to convert government loan and interest and government guarantee fee as loan in perpetuity at zero interest. A sum of Rs.457.36 crore was released to the HSL towards refurbishing and replacement of machinery and infrastructure in December 2011.
Regularisation of workmenOn regularisation of L/M series workmen, he said all vacancies were being filled through recruitment only. Age relaxation and preferences were also given to L/M service workmen, he stated.
On regularisation of contract employees on roll, Mr. Parrikar stated that due to weak order book position they had been no induction of permanent workmen and supervisory staff for over two decades.
HSL had recently inducted 105 semi-skilled workmen in core trades within available/approved vacancies through recruitment. The employees engaged on contract basis were also considered along with outsiders.
