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OFB Corporatisation: Govt responds on safeguarding employees' interests

The Government on Monday claimed in Rajya Sabha that all the steps are being ensured safeguarding the interests of the employees of Ordnance Factory Board (OFB) post corporatisation of OFB
The Government on Monday claimed in Rajya Sabha that all the steps are being ensured safeguarding the interests of the employees of Ordnance Factory Board (OFB) post corporatisation of OFB
The Government on Monday claimed in Rajya Sabha that all the steps are being ensured safeguarding the interests of the employees of Ordnance Factory Board (OFB) post corporatisation of OFB

New Delhi: The government on Monday responded to the question on safeguarding the interests of the OFB employees post corporatisation. Govt said that steps are being taken to safeguard the interests of employees of the Ordnance Factory Board (OFB) after it is split into seven state-owned corporate entities. "It has been decided that all the employees of OFB (Group A, B & C), belonging to the production units and also the non-production units being handed over to the new Defence PSUs (to be formed) would be transferred to these DPSU(s) on terms of foreign service without any deputation allowance (deemed deputation) initially for a period of two years from the appointed date" Minister of State for Defence Ajay Bhatt told Rajya Sabha.

"All the employees of OFB Head Quarter, OFB New Delhi Office, OF Schools and OF Hospitals, would be transferred to the Directorate of Ordnance Factories (to be formed) under the Department of Defence Production, initially for a period of two years from the appointed date" he added.

Till such time the employees remain on deemed deputation to the new entities, they shall continue to be subject to all rules and regulations as are applicable to the Central Government servants. Their pay scales, allowances, leave, medical facilities, career progression and other service conditions will also continue to be governed by the extant rules, regulations and orders, as are applicable to the Central Government servants.

"The pension liabilities of the retirees and existing employees will continue to be borne by the Government" he further added.

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Since the announcement of the Government to undertake corporatisation of OFB in May 2020, the Government has held various discussions with the OFB employees’ Federations regarding the corporatisation of OFB under the Chairmanship of Secretary (Defence Production), Bhatt told the upper house in a written response. "Their concerns and suggestions were noted.  Their main concern about safeguarding the interests of the employees of OFB has been adequately addressed", he assured.

It is pertinent to mention that Chief Labour Commissioner (Central) also held discussions with Government & OFB Federations as part of the conciliation process under the ID Act 1947" he concluded.

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