India’s largest oil and gas producer, Oil and Natural Gas Corporation (ONGC), is facing financial strain at its Assam operations, citing low production levels and high employee costs as key factors.
The company is also dealing with employee protests over the discontinuation of overtime payments, which workers claim have significantly impacted their earnings.
The protests, led by the ONGC Purbanchal Employees’ Association (OPEA), have sparked concerns about workforce dissatisfaction and operational disruptions.
ONGC Employee Protests and Overtime Pay Dispute
The protests began after ONGC halted a specific overtime payment, which employees argue had been a long-standing practice since 1991.
The OPEA members staged a peaceful sit-in at the Assam Asset in Nazira, demanding the reinstatement of overtime allowances and regularization of temporary staff.
Union representatives claim that the sudden withdrawal of the three-hour overtime allowance has jeopardized the livelihoods of over 1,000 employees, affecting their families as well.
The union has also raised concerns about the lack of recruitment, stating that local youths are being deprived of job opportunities due to ONGC’s decision to outsource work to private contractors.
ONGC’s Response to Employee Concerns
ONGC has defended its decision, stating that the overtime payment was not admissible under policy norms.
The company emphasized that the change was necessary for financial prudence and regulatory compliance.
Additionally, ONGC addressed concerns about medical benefits, clarifying that no healthcare facilities have been removed.
Instead, the company has shifted from direct credit to a reimbursement model to prevent misuse and malpractice related to employee welfare programs.
Despite the protests, ONGC maintains that it is committed to Assam, continuing to hire locally and invest in community development.
The company has reiterated its Corporate Social Responsibility (CSR) initiatives, including education, healthcare, infrastructure, and skill development programs.
The Siu-Ka-Pha Hospital in Sivasagar remains a flagship healthcare project, providing medical services to the local population.
Financial Struggles and Operational Losses
ONGC has reported continued financial losses in Assam, attributing the downturn to declining production levels and a large workforce.
The company stated that low output and rising manpower costs have contributed to its financial strain, making cost-cutting measures necessary.
The company’s Assam Asset operations have been under pressure for several years, with production challenges and workforce management issues affecting profitability.
ONGC’s leadership has emphasized that while the current changes may cause short-term friction, they are essential for long-term sustainability.
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