Public sector oil firms are proposing an interim increase in allowances to their employees to avoid an indefinite strike called by Oil Sector Officers' Association.

"We have given an in-principle recognition to the merit of their demands and are proposing to give an interim relief," ONGC [Get Quote] Chairman and Managing Director R S Sharma said in New Delhi on Monday.

OSOA, which comprises 15,000 officers from ONGC, OIL, IOCL, HPCL [Get Quote] and BPCL [Get Quote] amongst others, has called for an indefinite strike from Tuesday demanding salary revision and release of ad hoc payment. Sharma said human resource directors of the oil PSUs have been meeting since the past two days and an interim package, comprising of ex-gratia payment and monthly allowance, has been proposed.

"We hope there will be no strike," he said, adding that the PSUs have already put in place a contingency plan to see that oil and gas production, refinery operation and fuel retailing are not effected.

OSOA had earlier planned to go on strike in September last year but called it off after intervention and assurances by Prime Minister Manmohan Singh.

"These assurances have remained only assurances and practically nothing has been done to eliminate the miseries of officers working in oil PSUs," OSOA said in a statement yesterday.