And now, the private investors who will buy the stakes will be given the freedom not to follow the caste based job reservation system. However, as per sources close to the development, the existing employees, including those belonging to scheduled castes, scheduled tribes, and the physically handicapped, will be protected sufficiently.
As per reports, the government will be negotiating the terms and conditions in the shareholders’ agreement (SHA) which will make sure that the existing staff is protected after the management control is transferred to private firms.
These sources have also revealed that implementing job quotas is not desirable or legally possible.
Govt To Look After The Staff Interest; Existing Employees Will Be Protected
A policy document of the Department of Investment and Public Asset Management (Dipam) was cited by the sources too, who stated that a trade off might happen.
As per the government, “Government, in a welfare state, would like to look after the staff interest. There obviously has to be a trade-off, however, between the protection that the employees can be given and providing to the strategic partner a degree of freedom to run the firm.”
It also states that these competing interests would be carefully balanced in drafting the agreements. As this document also manages the future business, terms regarding existing employees can also be specified by it.
Through strategic disinvestments, a target of Rs 1.75 lakh crore is set by the government. The process of disinvestment of the above mentioned entities shall be completed in 2021-22.
Other than IDBI Bank & LIC, Finance Minister also proposed privatization of two public sector banks in FY22.
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