Safeguarding OFB employees interests post corporatisation: Govt

As defence employee bodies reject its decision to corporatise the Ordnance Factory Board (OFB), the government has ensured safeguarding the interests of the OFB employees post the move, the Parliament was told on Monday.

In a written reply to CPI member Binoy Viswam in the Rajya Sabha, Minister of State for Defence Ajay Bhatt said that it has been decided that all the employees of OFB (Group A, B & C), belonging to the production units and also the non-production units being handed over to the new DPSUs (to be formed) would be transferred to these DPSUs on terms of foreign service without any deputation allowance (deemed deputation), initially for a period of two years from the appointed date.

"All the employees of OFB Head Quarters, OFB New Delhi Office, OF Schools and OF Hospitals, would be transferred to the Directorate of Ordnance Factories (to be formed) under the Department of Defence Production, initially for a period of two years from the appointed date," he added.

Till such time the employees remain on deemed deputation to the new entities, they shall continue to be subject to all rules and regulations as are applicable to the Central Government servants, Bhatt said, adding that their pay scales, allowances, leave, medical facilities, career progression and other service conditions will also continue to be governed by existing rules, regulations and orders, as applicable to the Central government servants.


The pension liabilities of the retirees and existing employees will continue to be borne by the government.

Since the government's announcement to undertake corporatisation of OFB in May 2020, it has held various discussions with the OFB employees' Federations regarding the corporatisation of the OFB under Chairmanship of Secretary, Defence Production, and their concerns and suggestions were noted, the Minister said.

Their main concern about safeguarding the interests of the employees of OFB has been adequately addressed as mentioned above. It is pertinent to mention that Chief Labour Commissioner (Central) also held discussions with Government and OFB Federations as part of the conciliation process under the Industrial Disputes Act, 1947.-IANS