AP-Genco has decided to stop payment of performance linked generation allowance (PLGA) to its employees from October 1 in view of its precarious financial position that has been aggravated by the COVID-19 crisis.
Genco MD B. Sreedhar wrote a letter to this effect to the heads of all of its generating stations on Friday saying that the PLGA had become irrelevant.
He stated that the Genco had resolved to dispense with the PLGA due to the condition of its plants, the prevailing scenario, and the addition of 10,000 MW of solar power (to exclusively cater to the agriculture sector), which, he said, made the running of the generating stations at higher plant load factors very difficult.
“Genco has, therefore, reached the conclusion that stopping the payment of PLGA is in the interest of the organisation and every employee has to make the sacrifice to some extent,” he said.
As per the GOs issued in 2002 and 2003, and the recent circulars, the PLGA is to be paid to the employees up to a maximum of 5% on the minimum of the ordinary time scale to encourage them to improve the efficiency of the plants.
Opposing the move, the A.P. State Power Employees’ Joint Action Committee staged a demonstration at the Dr. Narla Tatarao Thermal Power Station, near Vijayawada, wearing black badges.
‘Violation of wage pact’
An office-bearer of the APSEB Engineers’ Association told The Hindu that as per the wage settlement agreed by the (Genco) management and the unions on May 31, 2018, which is in force up to March 31, 2022, the PLGA cannot be stopped.
If the Genco proceeds with its “arbitrary decision,” nearly 7,000 regular employees would be impacted, he said.