KSEB Staff Nearing Second Week of Protest Over Wage, DA, and Pension Issues

Thiruvananthapuram: Workers and officers unions in Kerala State Electricity Board Limited (KSEB Ltd.), under the joint platform National Coordination Committee of Electricity Employees and Engineers (NCCOEEE), launched an indefinite protest on October 15, demanding immediate approval of long-pending wage revision agreements, release of dearness allowance (DA) arrears, and resolution of issues related to the Pension Master Trust.

Despite multiple assurances from government representatives and board officials, key decisions affecting tens of thousands of employees remain in limbo. The protest is the latest development in the long-standing standoff between KSEB workers and officers, and senior bureaucrats overseeing the state's finance and power departments.

Wages and service conditions in KSEB are traditionally set through bipartite agreements between management and employee unions, as permitted under the Industrial Disputes Act. The last two wage revision agreements were signed in 2016 and 2021. Both were endorsed at the time by the Electricity Minister, KSEB Chairman, Board of Directors, and senior government officials, including the Power and Finance Secretaries, alongside representatives of recognized trade unions.

Image courtesy: Arunraj

All benefits under the 2016 agreement were implemented as per the terms, and the new agreement signed in 2021 came into effect as a continuation of the previous one. Since both agreements had the direct involvement of the Minister and government representatives, government approval is required only as a technical formality.

Since 2022, successive bureaucratic hurdles have impeded final ratification, despite no legal or procedural objections being raised during previous implementations.

According to union leaders, a turning point came in 2022 when B. Ashok assumed charge as Chairman and Managing Director of KSEB Ltd. His tenure saw a policy shift, triggering widespread protests by the workers and officers. Ashok reportedly took the position that the 2016 agreement lacked formal government sanction, thereby halting the disbursement of dearness allowance (DA) and dearness relief (DR)—despite such provisions being clearly stipulated in the agreement, and DA having been disbursed up to the end of 2021.

Even after furnishing all documents requested by the Power and Finance Departments, the bureaucracy has yet to grant approval. The unions allege a deliberate slowdown by top officials, particularly Additional Chief Secretary (Finance) Mr. K. R. Jyothilal, who previously served as Power Secretary.

Adding to the workers’ grievances is the poor functioning of the Pension Master Trust, set up to ensure post-retirement security for KSEB employees. In November 2023, an order issued by then Power Secretary Mr. Jyothilal reportedly obstructed the Trust’s operations. Though the order was later withdrawn after sustained protests by unions affiliated with the Centre of Indian Trade Unions (CITU) and NCCOEEE, substantive follow-up measures have yet to materialize.

Following directions from the Chief Minister’s Office, then Chairman and Managing Director (CMD) Mr. Mir Muhammad Ali IAS convened a meeting with NCCOEEE representatives on August 13, 2025. The meeting discussed key issues including the approval of wage revision agreements, the functioning of the Pension Master Trust, and the release of pending DA (Dearness Allowance).

The CMD assured that urgent steps would be taken to secure government approval for the agreements, suggestions regarding the Pension Master Trust would be considered, and two instalments of DA/DR would be released before Onam.

Subsequently, at the FTD (Full-Time Directors) meeting held on August 23, 2025, it was unanimously decided to recommend to the Full Board the release of two instalments of DA/DR.

Image courtesy: KSEBWA

However, in a subsequent Full Board meeting on September 29, Mr. Jyothilal, representing the government, objected to the decision and insisted that the matter be referred once again for government approval—despite DA/DR being well within the Board’s authority to implement. Union representatives allege that this reflects a continued bureaucratic effort to obstruct the wage and benefit disbursements.

There were attempts to implement smart meters in KSEB under the centrally-sponsored RDSS scheme using the Total Expenditure (TOTEX) model, which was seen as a move toward privatization. The TOTEX model combines both capital and operational expenses into a single framework, giving utilities flexibility to manage investments and running costs together. While intended to optimize overall spending, employee unions opposed using TOTEX for smart meter implementation in KSEB, viewing it as a step toward privatization. Instead, they advocated the CAPEX (Capital Expenditure) model, which focuses on large upfront investments in assets owned and maintained by the utility, thereby keeping control within the public sector.

Union leaders claim that Mr. Jyothilal, who was Power Secretary at the time, expressed strong displeasure at the outcome and has since maintained a hostile stance toward employee organizations, even allegedly engaging in disparaging behaviour during official meetings.

With no tangible progress in sight, the joint platform NCCOEEE commenced an indefinite protest on October 15, 2025, demanding immediate approval of the 2016 and 2021 wage agreements, release of pending DA/DR, and a functional pension mechanism. Union leaders warn that unless the government intervenes decisively, the protest could intensify.