Visakhapatnam Steel Plant employees finally get full salaries after two years

Relief finally came to Visakhapatnam Steel Plant employees as the management credited their full salaries, ending nearly two years of partial payments and mounting arrears. The employees had been receiving reduced salaries amid the steel plant’s financial crisis.

At one point, they were paid only 50 per cent of their salaries, while on another occasion, they received only 30 per cent. The balance amount remained pending, with salary arrears accumulating to nearly four months’ pay for individual employees in 2024.

The management introduced a production-linked salary system in November last year. Under the system, production targets were fixed for individual departments, and a portion of the salary was linked to the achievement of those targets.

Employees strongly opposed the move. They argued that the management was not providing the raw materials, equipment and infrastructure needed to meet the production targets. The issue was subsequently taken to court.

Employees said some sections of the workforce received their full salaries for only two months over the past year.

The payment of full salaries has brought some relief to employees struggling with financial pressures caused by delayed and partial payments. The development comes even as the steel plant continues to face financial constraints.

Visakha Steel Executives Association secretary K.V.D. Prasad welcomed the payment and thanked the management on behalf of the employees and workers.