Date:07/05/2006 URL: http://www.thehindu.com/2006/05/07/stories/2006050704500900.htm

National

Stir threat in oil industry

Special Correspondent

New Delhi: Public sector oil industry executives have threatened to go on an indefinite strike from May 31 unless their demand for higher wages is met.

The Oil Sector Officers Association (OSOA), representing 12 companies, on Friday said that unless salaries were raised, talent would continue to move to the private sector. Convener Ashok Singh told presspersons here that the continuing "brain drain" could end up in the collapse of public sector companies. The private sector was offering five times the salaries given in the public sector to woo talent.

Mr. Singh said that under a memorandum of understanding signed with the Petroleum Ministry in January 2000, the salary and compensation for officials ought to have been raised from January 1, 2002. Petroleum Secretary M.S. Srinivasan wrote to the Department of Public Enterprises (DPE), highlighting the fact that the entry of the private sector in the field of oil and gas posed a serious threat of migration of trained personnel as it offered much higher emoluments.

The Secretary also pointed out that the growing exodus could lead to an overall deterioration in performance in the immediate future.