6) » LOR FEDERATION OF OIL PSU OFFICERS JOCL, HPCL, BPCL, ONGC, OIL, GAIL, CPCL, NRL 1, Sri Aurobindo Marg, Yusuf Sarai, New Delhi - 110016 111-26523207, Fax: 011-26522066 Date: 03.03.2015, To Shri Dharmendra Pradhan, Hon'ble Minister of State (I/C) Ministry of Petroleum and Natural Gas Sub : Decision to withdraw long service award in Oil PSUs - Ref. No. -— R- 33012/01/2014 - MC Dear Sir, The decision to withdraw the scheme of long service award in Oil CPSEs has come as the most demotivating and demoralizing decision of all times and above all its timing is what worries us the most, especially at a time when complete deregulation and intense competition warrants urgent specific action plan for retention of talented human capital. Failure to retain the best human capital would mean that the company will be left with mediocre only, which will certainly affect the effectivity of the Organisation. In fact the scheme of long service award is beyond the purview of DPE guidelines, since awards / recognition do not come under the ambit of allowance or benefit. Long service award scheme in Oil CPSEs embodies limitless hard work put in everyday, mammothness of every task accomplished, life threatening dangers at work place requiring nothing less than perfection in job skills and above all the joy of vanquishing worthy competitors - all for the respective employer companies. Contribution in Kashmir flood is one such example. Started in Oil companies as an HR tool for promoting employee retention, the scheme has become the most coveted and the most cherished medallion worth each day’s wait lasting over 15 years, not because of its monetary value but due to it being company’s gesture of honouring and recognising the contribution of individuals and their unflinching loyalty towards the Company. Of late, the sector has been facing competitors’ dual onslaught — poaching of business as well as human capital. Past 8 months has seen the highest rate of attrition in middle and junior level officers. Needless to mention that these officers possessed6)) » fone FEDERATION OF OIL PSU OFFICERS 1OCL, HPCL, BPCL, ONGC, OIL, GAIL, CPCL, NRL 1, Sri Aurobindo Marg, Yusuf Sarai, New Delhi - 110016 Phone: 011-26523207, Fax: 011-26522066 extra-ordinary professional skills and were manning critical positions. The decision to withdraw this symbolical gesture of acknowledging contribution would certainly accelerate attrition. This withdrawal in Oil CPSEs symbolizes removal of soul from the support system which is against advocacy of HR principles concerning performance enhancement at the work place. In the context of Indian CPSEs, the decision is all the more unfortunate, and is contrary to the recommendations of various committees for giving freedom to CPSEs. The decision seems to have been taken without considering the Intangible impact of the decision and its pros and cons. The impact of the decision is likely to be much more negative as- a. The financial implication of the decision is meager, however its impact on working efficiency and motivation levels is manifold. In fact the issue, being trivial, did not deserve intervention of MOP&NG, particularly in view of clamor for higher freedom to CPSE boards and also being contrary to the recommendations to this effect even by Roongta Committee appointed by the Govt. of India. In fact, the Roongta Committee, an expert group constituted by Government of India to suggest reforms in Central Public Sector Enterprises in November’ 2011 had recommended the following regarding Compensation in CPSEs Quote; The Panel believes that the time has now come to empower CPSEs to formulate and set their own levels of pay and compensation policy. As this would be a big step from the present situation, it is recommended that it may be implemented over the next three to five years. Unquote b. The award scheme has been in vogue for over 4 decades now and the withdrawal would promote negative perception, being attached to the psyche of officers.(8) 7) FEDERATION OF OIL PSU OFFICERS TOCL, HPCL, BPCL, ONGC, OIL, GAIL, CPCL, NRL eae Phone: 011-26523207, Fax: 011-26522066 c. The OMCs are already facing acute shortage of experienced capable manpower and lack of adequate system for retention of talented manpower is creating skill vacuum, The decision would further create a perception about the employer to not being concerned about its employees. d. Salaries of executives in CPSEs are already 1/4th of peers in private sector and the withdrawal of even such tools of recognition will further thwart joining and retention of talented professionals in the company. It is pertinent to mention here that similar scheme also exists in performing CPSEs under other ministries and is also existing in most of the private companies as ESOP which is very highly remunerative. In view of the foregoing, your kind intervention is requested to withdraw the order of withdrawal of the long service award in Oil CPSEs expeditiously Thanking you, Yours sincerely For Federation of oil PSU Officers paula Convenor Phone - 011-26523207 Mob. - 9899973901 CC: Secretary, MOP&ING CC: Chairman IndianOil/ Chairman ONGC / Chairman BPCL / Chairman HPCL / Chairman GAIL / Chairman OIL / MD CPCL / MD NRL ‘An Organisation of Officers of @® Ca