RINL employees allege salary cuts despite meeting production targets

Employees of Rashtriya Ispat Nigam Ltd. (RINL), the corporate entity of the Visakhapatnam Steel Plant (VSP), began the New Year with dissatisfaction over alleged salary cuts. The employees said the reductions were made despite meeting production targets set by the management. In contrast, government employees across the country marked the New Year with celebrations.

According to union leaders, the then Chairman and Managing Director, Ajit Kumar Saxena, directed the release of production-linked wages for December on the same basis as in November. They said the decision was taken shortly before he retired from MOIL on December 31. Salaries were also not credited on the first day of the month, they added.

Union representatives said employees exceeded production targets on several occasions in December. However, they pointed out that operational constraints affected overall output. These included the lack of adequate resources in certain departments. As a result, salaries were released at different percentages across departments.

It is learnt that employees working in blast furnace units received about 96% of their salaries. In contrast, documents have been prepared to release around 82% for employees in the rolling mills. Officials said output in the rolling mills declined due to a shortage of quality coke. This shortage affected gas availability. Because of this, all rolling mills could not be operated at the same time.

Union leaders said employees reported for duty and remained at the plant for the full working hours. However, they were unable to carry out operations due to factors beyond their control. They alleged that salary reductions were imposed because production targets were not fully met.

The unions described the policy as unconstitutional. They said they had submitted a representation to the Department of Public Enterprises seeking clarification. However, they received no response. They also alleged that the production-linked wage system was reintroduced with a vindictive intent. This, they said, was done in view of the impending retirement of the present CMD.

The unions have urged the incoming CMD, Manish Raj Gupta, to review the matter. They have also sought corrective steps to ensure justice for the employees.