BSNL IPO faces trade union wrath - IT Protests Of 2008

[VelMurugan]

BSNL IPO faces trade union wrath

BSNL's IPO plans met stiff opposition from its trade unions who are opposing the BSNL's decision to launch initial public offering (IPO).

The unions are alleging that the trade unions were not taken into confidence while taking this decision. The joint forum of BSNL unions/associations of non-executives and executives said that the announcement that 10 per cent share of BSNL would be disvested through the IPO route for development and expansion had come as a shock to the workers since the Communications Minister and the BSNL management had given assurances that there was no proposal for any divestment of BSNL.

Updating on the IPO status, Kuldeep Goyal, CMD, BSNL said that once the government takes a decision, we will again have a dialogue with the employees and make them understand the advantages of listing. Now, because of the downturn in the economy, this is probably not the right time (for the IPO).

Source : IndiaTimes