Labor dispute slows India telecom sector

Nov 21, 2005

India says the ongoing labor dispute in the Communications Ministry has caused infrastructure expansion to grind to a halt.

The Indian Telecom Service Association said at a news conference Monday there was no end in sight for the six-week standoff that has cost the industry $464 million.

At issue is the transfer of more than 2,200 India Telecom Service engineers to the telecom company Bharat Sanchar Nigam Ltd., a move staunchly opposed by the civil servants because it would result in a pay cut.

The ITSA said in a recent letter to the prime minister that the situation was disrupting telecom expansion efforts and insulting ITS engineers. The organization urged the government to cancel the plan.

Copyright 2005 by United Press International

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