AIRF Reference – Corporatization of Modern Coach Factory/Rae Bareli and other Production Units of the Indian Railways as “Rolling Stock Company”

| June 26, 2019 | Reply

From the caption provided to the subject of discussion, it appears that, the Government and the Railways have already taken decision to corporatize the Production Units of the Indian Railways. In such an ambience, what the union representing the workers can state except that the workers will resist to the best of their ability and might………

No.AIRF/516 Dated: June 26, 2019
The Chairman,
Railway Board,
New Delhi
Dear Sir,
Sub: Corporatization of Modern Coach Factory/Rae Bareli and other Production Units of the Indian
Railways as “Rolling Stock Company”
Ref.: Your letter No.2019/E&R/10(10)/12 dated 18.06.2019

From the caption provided to the subject of discussion, it appears that, the Government and the Railways have already taken decision to corporatize the Production Units of the Indian Railways. In such an ambience, what the union representing the workers can state except that the workers will resist to the best of their ability and might.
At the outset, we would like to place on record that, AIRF is totally oppose to any Restructuring, especially if it is a cosmetic change of making one legal entity into another without any tangible benefit for the Nation itself.
AIRF wanted the Railways to be a Public Utility Service, having best management practices to be proud
of the most efficient and productive workforce, generating the requisite profit, so that, as an organization it would not depend upon tax payers’ money except for the public services, the Parliament of the country
ordained it to provide. We are of the firm opinion that, all the Production Units of the Railways, including Modern Coach Factory, Rae Bareli, function efficiently well and can be proud of their workforce as also the management.
Against an installed capacity of one thousand coaches per annum, MCF scripted a unique success story by manufacturing 1425 number of coaches during the just concluded Financial Year, i.e. 2018-19, doubling its production from the previous year (711 coaches in the year 2017-18). Continuing this tempo with zest, MCF is slated to manufacture 2158 number of coaches in the current financial year to support the Railway Passenger transport operations. This tentamounts to tripling its production in just two years, a fact unheard of in any major industrial unit of the Indian Railways.
On the fronts of cost and economies of production, MCF has established a record by turning out top quality coaches at the lowest cost. As is evident from the fact that, in the Financial Year 2018-19 coach out turn was 1425 coaches on an average cost of Rs.2.06 crore, having total number of 2201 employees on roll only.
The cost of manufacture of coaches at MCF is very competitive even when compared to imported LHB
coaches which were bought at a cost of Rs.5.17 crore (approx.) per coach in the year 1995.
However, we agree with the dictum that, even the best need not be perfect and there is room for improvement. We are for both financial and functional autonomy to all the Production Units, so that, the
respective management and workforce can evolve best practices and procedures to make those units highly competitive in their performance. Any concrete proposal in this regard, from whichever quarter it
emanates, is most welcome and workers will be too happy to consider. Mere change in the form of the entity, we are convinced, will not bring about any performance related improvements, i.e. BSNL, which was a product of corporatization of a highly profitable departmental entity, is a glaring example to consider.
It is worth-mentioning here that, serious unrest is brewing among the employees working in the Production Units of the Indian Railways, including MCF/RBL, against 100 Days Action Plan of the Ministry of Railways – Corporatization/Privatization, which may result in serious threat to industrial harmony prevailing since nearly four decades over the Railway System.
In view of the foregoing fact, we request you to place concrete proposals to improve upon financial performance of the Production Units of the Indian Railways, and on such proposals AIRF welcomes a transparent fruitful discussion.

Copy to: Member Rolling Stock, Railway Board – for necessary action please.
Copy to: Member Staff, Railway Board – for necessary action please.
Copy to: Executive Director(IR), Railway Board – for necessary action please.
Copy to: General Secretaries, all affiliated unions of AIRF in the Production Units – for information.



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Category: AIRF, Trade Union Activities

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