VSP staff up in arms over production-linked salaries

Visakhapatnam: Even as Rashtriya Ispat Nigam Limited (RINL) failed to pay salaries to the employees on a regular basis in recent times, the new circular it issued linking the salary disbursement with production targets led to immense disappointment among the employees.

Instead of supplying required raw material to boost the production, the employees express ire over how the management fixed such ‘unachievable’ targets. They alleged that the VSP management is introducing such impractical targets only to make the employees suffer even further.

The Rashtriya Ispat Nigam Limited management issued a circular stating that full salary has been paid to the employees from the month of September, 2025 onwards. However, due to non-fulfilment of production targets, the earnings of the organisation have adversely been impacted. From November, salaries will be disbursed proportionate to the target(s) achieved, the circular mentioned.

Through the circular, the management clearly drew up targets fixed for the month of November to each department, including sinter plant 24,000 tons of gross sinter per day (average), blast furnace 19,000 tons of hot metal per day, SMS-1 and 2 average 125 heats per day, rolling mills 13,500 tons of finished products, marketing wing 15,000 tons of sale per day.

For the employees of all other departments, including services and non-works departments, salary will be disbursed proportionate to the average of the targets achieved.

By strongly opposing the circular, representatives of the trade unions demanded the Visakhapatnam Steel Plant management to withdraw it with immediate effect.

Responding to the circular, VSP CITU genaeral secretary J Ayodhya Ramu criticised the management for taking an irresponsible decision on the salaries to be paid for the workers.

He suspected a serious conspiracy behind the management's circular. The general secretary pointed out that the management's failure to provide raw materials required for production is being blamed on the workers to cover up.

Objecting the ‘attack’ on workers by the steel management, VSP recognised union general secretary D Adinarayana stated that the management is not making decision in accordance with the law.

Trade union leaders made it clear that the management should focus on procuring sufficient raw material for the production rather than introducing a new norm to clear salaries linking it with the production, INTUC chief pattern Mantri Raja Sekhar and president Ramana Murthy opined.

Following the issue of the circular, the VSP employees expressed ire over the management’s self-centred attitude. They warned the management that their agitation would continue until the circular is withdrawn.