Falling profits: No extension to staff, says CITCO

Rajmeet Singh

Advertisement

Tribune News Service

Chandigarh, April 5

Concerned over its growing salary bill and falling profits, the Chandigarh Industrial and Tourism Corporation (CITCO) has decided to discontinue its two-year-old decision of giving an extension in service to its employees, who retire on attaining the age of superannuation at 58.

Before implementing the decision taken at a recent meeting of the Board of Directors of the corporation, the matter has been sent to the UT Administrator for approval as it is in deviation from the policy of the UT of giving an extension to the employees of boards and corporations on the pattern of the Punjab Government. The outcome of the decision would affect over 1,000 employees of the state-run corporation.

UT Home Secretary-cum-Chairman of CITCO Anurag Aggarwal said since the decision pertained to the corporation, it had to be approved by the Chandigarh Administration.

The corporation, which runs Hotel Mountview, Hotel Shivalikview and Hotel Parkview, has been reporting a reduced average room recovery and an increase in the salary expenses varying from 30 per cent to 60 per cent, depending upon the unit. In case of Mountview, a five-star hotel, the average room recovery has reduced from Rs 4,615 in April-January 2013-14 to Rs 4,197 in April-January 2014-15. The increase in the salary expenses is 61 per cent of the sales.

Similarly, Hotel Parkview has reported a low room occupancy that has dropped to 71 per cent from last year’s 77 per cent. On the contrary, Hotel Shivalikview has reported an increase in the room occupancy.

The corporation maintains that with no financial assistance from the UT  Administration, CITCO has to generate funds to meet all its expenditures, including the salary of the staff members.

Refusing to buy the argument of the management that an increase in the salary was leading to losses, the CITCO Workers Union said the previous Administrator Shivraj Patil had turned down a similar proposal of the corporation in October 2013. “Since the UT had adopted the Punjab policy and the previous Administrator had allowing an extension to CITCO employees, the change of guard does not mean that the earlier decision can be reverted,” said Kashmir, president of the union.

On the issue, the union has moved an application in the Punjab and Haryana High Court as part of an ongoing case scheduled for hearing in May.

So far, 16 employees have been given an extension ever since the decision was implemented in January 2013.