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Wednesday, June 22, 2016

7th CPC latest

Comrades,
                
                  The empowered committee of Secretaries headed by the Cabinet Secretary had discussion from past five  months on the charter of demands raised by the staff side,  The finance ministry is working out the financial implications arising out of the improved  recommendations of the 7th CPC especially on the minimum wage and fitment formula being improved, granting two  increment on promotion and having annual increment on 1st Jan and 1st July instead of just on 1st July.  This will benefit a lot of persons on promotion. The other aspect is considering grant of advances, which the 7th CPC has recommended for abolition.

        The formal announcement by the of the 7th CPC acceptance is likely to be made by the Government just before the 11th July strike by the CG employees indicating the actual minimum wage and fitment formula.

     The cabinet Secretary will present the view of the empowered committee of Secretaries before the Union Cabinet meeting based upon the principle adopted in actual calculation of the minimum wage and fitment formula. The 7th CPC had adopted the Dr Aykroyd formula   minimum wage is calculated on the basis of the 15th ILC norms. But erred in many aspects for example the average of   prices of last 12 months was taken, The housing weight age , education weight age etc  . The prices of essential items are rising from past many years, even in last six months the retail inflation is rising above 5.4%.

 Secondly the prices quoted by the  GOVERNMENT OF INDIA MINISTRY OF LABOUR & EMPLOYMENT LABOUR BUREAU CLEREMONV, SHIMLAHttp://Labourbureaunew.Gov.In/ ,  the Director of Economic & statics , Ministry of Agriculture and Farmers Welfare, Government of India, New Delhi & the retail market prices are varying .

If we calculate the minimum wage based upon the  LABOUR & EMPLOYMENT LABOUR BUREAU taking prices as on 1st July 2015 the minimum wage works out to Rs 21,000 / and fitment formula works to 3.00. This will result in 34% wage hike without allowances.  

If we calculate the minimum wage based upon the  Director of Economic & statics , Ministry of Agriculture and Farmers Welfare, Government of India, New Delhi  taking prices as on 1st July 2015 the minimum wage works out to Rs 23,000 / and fitment formula works to 3.30. This will result in 50% wage hike without allowances.  


If we calculate the minimum wage based upon the retail market   taking prices as on 1st July 2015 the minimum wage works out to Rs 28,000 / and fitment formula works to 4.00. This will result in 70% wage hike without allowances.  


          The most important demand is that of the CG employees is the minimum wage and fitment formula. 
 

 The Staff side had demand of minimum wage of Rs 26000/- & fitment formula of 3.71. Against this the 7th CPC had recommended minimum wage of Rs 18000/- & fitment formula of 2.57. The 7th CPC recommendations has provided only at 14% wage hike at Group “C” level it is only ranging from Rs 2240/- to  Rs  3500/- increase per month, and at Group “B” level ranging from Rs 4000/- to   Rs 6500/- increase per month. After deductions & income tax the net increase will be just from Rs 500/- to Rs 3000/- only.

 This increase is lowest by any pay commission, hence vast changes are required as the prices of essential commodities have gone up and also the inflation rate has gone up.   


Comrades it is the time to struggle, we should educate the members and prepare for struggle, so that we should get at least 50 % wage hike without allowances, as allowances are not taken into pension benefit.

Only struggle will get us benefit. Please don’t believe on rumours. Now it is now or never. 

Comradely yours

(P.S.Prasad)

General Secretary

Tuesday, June 14, 2016

Retail Price inflation highest level in 21 months.

Retail inflation, as measured by the Consumer Price Index (CPI), accelerated to 5.76 per cent in May, its highest level in 21 months, driven primarily by rising food prices.
The index came in at 5.47 per cent in April 2016. It was 5 per cent in May last year. The last time the retail inflation was higher was in August 2014 when it crossed 7 per cent. “A jump in food inflation has led to the increase in overall print for inflation,” Richa Gupta, Senior Economist, Deloitte said. “Vegetable prices have moved up over the past one month and inflation (in vegetable prices) has now moved into double digit territory possibly reflecting the effect of the hot weather conditions. Shortage in the sugar market has also moved up prices and could move up further during the festival season.

CHARTER OF DEMANDS OF STRIKE


Part B
1.     Re-compute the minimum wage on the basis of the actual commodity prices as on 1.7.2015and factor the Dr. Aykroyd formula stipulated percentages for housing and social obligations, children education etc. Revise the fitment formula  and pay levels on the basis of the so determined minimum wage;
We are not in agreement with the methodology adopted by the 7th CPC in computing the minimum WAGE.  We give hereunder briefly the reasons thereof.
1.    The retail  prices of the commodities quoted by the Labour bureau is irrational, imaginary and even absurd in respect of certain articles at certain places.  The Staff Side had objected to the adoption of those rates in its meeting with the Commission on 9th June, 2015.  
2.    The adoption of 12 monthly average of the retail prices is contrary to Dr. Aykroyd formula.  Same is the case with the reduction effected by the Commission on housing and social obligation factors. The house rent allowance is not a full compensation of the expenditure incurred by an employee for obtaining an accommodation.  Therefore, no reduction on that count in arriving at the minimum wage is permissible.  We may cite the minimum wage computation made by the 3rd CPC in this regard,  The employees were in receipt of HRA even at that time.  But still the 3rd CPC, and rightly so, adopted the 7.5% as the factor for housing.  In  respect of the addition to be made for children education and social obligation as per the Supreme Court judgement, (25%) the Commission has reduced the percentage to 15% on the specious plea that the employees are separately given children education allowance.  The Children education allowance is not a full reimbursement of the expenses one has to incur.  After the liberalization of the Education Sector where private parties were allowed to set up universities and colleges, the expenses for education had increased heavily .  No concession or allowance is granted to the employees for educating the children beyond the higher secondary levels.   The earlier Pay Commission has only tried to compensate a little in the increasing cost of education and that too at the primary level, since even the Governmental institutions had started charging abnormal tuition and other fees.
3.    The website maintained for the Agriculture Ministry depicts the retail prices of commodities which go into the basket of minimum wage computation.  Even though the rates quoted by them vary from the real retail prices in the market, it provides a different picture.   If one is to take the rates quoted by them for different cities and make an all India average of the prices as on 1.7.2015, it will work out to Rs. 10810. It will result in the computation of the minimum wage of Rs. 19880.  Adding 25% for arriving at the MTS scale, it will rise to Rs. 24850.  To convert the same as on 1.1.2016, 3% will be added as suggested by the 7th CPC.  The final computation will be Rs. 25,596, when rounded off shall be Rs. 26000.
4.    The Andhra Pradesh State Pay Commission in its report has taken the commodity prices at Rs. 9830.- as on 1.7.2013 which works out to a minimum wage of Rs. 18080.  The wage of MTS will then be Rs. 22600 as on 1.7.2013,  The Corresponding figure for 1.1.2016 shall be Rs. 26758 , rounded off to Rs. 27000.
5.    The Staff side had computed the minimum wage as on 1.1.2014 at Rs. 26,000, taking the commodity price at Rs. 11344.  The rates were taken on the basis of the actual retail prices in the market as on 1.1.2014( average prices of 8 Cities in the country) substantiated by the documentary evidence of Cash bill obtained from the concerned vendors.  As on 1.12016, the minimum wage work out to Rs. 29339, rounded off to Rs. 30,000.
6.    The 5th CPC adopted the rate of growh in the economy ( as reflected in the increase in the per capita net national produce at factor cost) over a period of ten years to arrive at the increase required to be made to arrive at the minimum wage.  The per capita NNP at factor cost registered an increase of 65.28% over a period of ten years in 2013-14.  If we apply the same percentage to the emoluments (Pay +DA) as on 1.1.2016 (assuming that DA will be 125% as on that date), the minimum wage as on 1.1.2016 for an MTS will have to be Rs. 26030, rounded off to Rs. 27000.
7.    In para 4.2.9 of the report, the Commission has given a table depicting the percentage increase provided by the successive Pay Commissions, according to which the 2nd CPC had made a paltry increase of 14.2%. The 3rd CPC gave a rise of 20.6, 4th 27.6, 5th  31.0 and 6th CPC  54%. While the per centage increase had been in ascending order all along, the 7th CPC has sought to reverse that trend ostensibly for reasons unknown. It is was the meager increase of 14% provided for by the 2nd CPC that triggered the volatile situation in the civil service and led to all India strike encompassing all employees which lasted for 5 days in 1960. We do not know whether the 7 CPC really intend to create such a scenario once again.
8.    In the case of Bank, Insurance and many other Public Sector Undertakings wage revision takes place once in 5 years. In the recently concluded agreement, Bank employees were provided more than 15% increase.
9.    After the implementation of the Pay Commissions Report the AP State Employees have been given a wage structure based on a minimum wage far above the level of Central Government employees. In their case also wage revision does take place once in 5 years.
It could be seen from the above that the computation of minimum wage by the 7 CPC is prima facie wrong and computed on untenable premises and incorrect data. The minimum wage therefore requires re-computation and revision. Once the minimum wage gets revised, the fitment formula, the multiplication factor applied for determining the pay levels and the pay matrix itself will have to consequently revised.
Determination of Pay Level Minimum
It is seen that the 7th CPC has applied varying multiplication factors for different pay levels. The 6th CPC has taken the emoluments in the private sector to hike the salary of officers by applying different yardstick to compute the pay bands disturbing the vertical relativity while the 7th CPC has further accentuated the gap of differences in wages between officers and employees. This being unacceptable we urge upon adoption of uniform multiplication factor for determining pay levels.
2.    Revise the pay matrix basing upon the revised minimum wage and rounding off the stages to the next hundred. Accept the suggestion made by the Staff Side in its memorandum to 7 CPC for de-layering viz. to abolish the pay levels pertaining to GP 1900, 2400 and 4600.

In our memorandum to 7th CPC the staff side had requested for de-layering by abolition of Grade Pay of Rs 1900, 2400 & 4600. The pay levels pertaining to GP 1900, 2400 and 4600 may be abolished and merged with the next higher levels.

3.    Revise the rate of increment to 5 % and Grant two increments in the feeder cadre levels as promotion benefit.

The rate of increment has been pegged down to 3% by the 7th CPC. At this rate an employee will not be able to double his pay even after 30 years. The demand of the staff side to increase the rate of increment to 5% to be accepted.
Promotion from one cadre to another is a rare phenomenon in government services especially in lower grades. If one to be awarded only an increment amounting to 3% of pay, it might not become a sought after affair and will in fact act as a de-motivating factor. This apart, in most of the Govt. Departments, promotion is followed by posting to a different location.  Those who are posted to unclassified cities or from Metro cities to towns will financially suffer due to such mandatory transfer on promotion. This is because of the fact that the rate HRA, Transport Allowance etc vary from one station to another. The financial benefit on promotion must be, therefore, at least two increments i.e. 10% of the pay.
4.    Fill up all vacant posts by holding special recruitment  drive

5.    MACP to be treated as financial up-gradation, without any grading stipulation; to be provided on the basis of the promotional cadre  hierarchy of the concerned department; increase the number of MACP to five on completion of 8, 15,21,26 and 30th years of service. Reject the Efficiency Bar stipulation made by 7th CPC.  Personnel promoted on the basis of Examination should be treated as fresh entrants to the cadre.
6.    Upgrade the LDCs in all departments as UDCs for it is stated by the Commission that the Government has stopped recruiting personnel to  this cadre.
The cadre of LDC, after the introduction of MTS has presently overlapping functions. Most of the specific functions have also become obsolete on introduction of computerized diarizing and maintenance register. There is no specific need for this cadre in any of the offices. While future recruitment can be stopped, which the government has conveyed to the Commission, what has to be done to the existing cadre is not mentioned. It is therefore necessary that the existing incumbents be promoted as UDCs by upgrading all posts of LDC as UDCs.
7.    a) Parity to be ensured for all Stenographers, Assistants, Ministerial Staff in subordinate offices and in all the organized Accounts cadres with Central Sectt. By upgrading their pay scales ( and not by downgrading the pay scales of the CSS)
b) Drivers in all Government offices to be granted pay scale on par with the drivers of the Lok Sabha

The question of Parity, as has been rightly mentioned by 7th CPC, is a settled matter. It is the Department of Personnel which the cadre controlling Department for CSS cadre that unsettles the parity every time. The recommendation to downgrade the CSS is however not acceptable. What is required is to grant higher pay levels at par with CSS ministerial and stenographer cadres and other similarly placed cadres in the field/subordinate offices and IA&AD & Organized Accounts cadres. 

8.    To remove existing anomaly, the annual increment date may be 1st January for those recruited prior to 30thJune and 1st July in respect of those recruited prior to 31st December.
9.    Wage of Central Government Employees be revised in every 5 years
10.  Treat the GDS as Civil Servant and grant them all pay, allowances and benefits granted to regular employees on Pro -rata basis
11.  Contract/casual and daily rated workers to be regularized against the huge vacancies   existing in various Government offices.
12.  Introduce PLB in all departments. All existing bilateral agreement on PLB must continue to be in operation
13   Revise the pension and other retirement benefits as under:-
(a)  Parity between the past and present pensioners to be brought about on the basis of the 7th CPC recommendations with the modification that basis of computation to be  the pay level of the post / grade/ scale of pay  from which one retired; whichever is beneficial.
(b)  Pension to be 60% of the last pay drawn in the case of all eligible persons who have completed the requisite number of years of service.
(c)  The family pension to be 50% of the last pay drawn.
(d)  Enhance the pension and family pension by  5% after every five years and 10%  on  attaining the age of 85 and 20% on attaining the age of 90.
(e)  Commuted value of pension to be restored after 10 years or attaining the age of 70, whichever is earlier. Gratuity calculation to be on the basis of 25 days in the month as against 30 days as per the Gratuity Act.
(f)   Fixed medical allowance for those pensioners not covered by CGHS and REHS to be increased to Rs. 2000 p.m.
(g)  Provide one increment on the last day in service if the concerned employee has completed six months or more from the date of grant of last increment.
14   Exclude the Central Government employees from the ambit of the National Pension Scheme (NPS) and extend the defined benefit pension scheme to all those recruited after 1.1.2004
15   In the absence of any recommendation made by 7 CPC, the Government must withdraw the stipulated ceiling on compassionate appointments
16   Revise the following allowances/advances as under in place of the recommendations made by the 7th CPC :
The 7th CPC has recommended to abolish large number of allowances and interest free advances without going into the exact relevance in certain departments where the allowances are provided for. The allowances which are stated to be subsumed and which are clubbed with other s also require consideration. If these allowances are withdrawn, it might affect adversely the very functioning of the Department itself in certain emergent situation. Of the allowances mentioned in the report for abolition, we have mentioned hereunder those pertaining to civilian employees which require to be retained.
In respect of advances the Commission appears to have taken a shylock view of the matter. Most of the under mentioned advances are required to meet out contingencies which the employees cannot manage to organize. These advances are, therefore, to be retained.
(i)    Allowances
(a)  Retain the rate of house rent allowance in place of the recommendation of the Commission to reduce it.
(b)  Restructure the transport allowance into two slabs at Rs. 7500 and 3750 with DA thereof  removing all the stipulated conditions.
(c).  Fixed conveyance allowance: This allowance had no DA component at any stage..  This allowance must be enhanced to 2.25 times with 25% DA thereon as and  when the DA crosses 50%
(d) Restore the island Special duty allowance and the Tripura Special compensatory remote locality allowance.
(e)  The special duty allowance in NE Region should be uniform for all at 30%
(f) Overtime allowance whenever sanction must be based upon the actual basic pay of the entitled employee
(g) Cash handling /Treasury allowance. The assumption that every transaction in Government Departments are through the bank is not correct.  There are officials entrusted to collect cash and therefore the cash handling allowance to be retained.
(h)Qualification Pay to be retained.
(i) Small family norms allowances;
(j) Savings Bank allowance
(k) Outstation allowance
(l) P.O. & RMS. Accountants special allowance.
)m) Risk allowance
(n) Break-down allowance.
(o) Night patrolling allowance.
(p) Special Compensatory hill area allowance.
(q) Special allowance for Navodaya Vidyalaya Staff.                  
(r) Dress Allowance ceiling to be raised to Rs. 32,400/- p a
(s) Nursing Allowance to be raised to 2.25 times of Rs 4800/-
(t) All fixed allowances must be raised to 2.25 times as per the principle enunciated by the Commission
(u) The erroneous statement in Para 9.2.5 to be corrected. Vide OM No. 13018/1/2009-Estt (L) dated 22.07.2009, DOP, P&W, the leave period for Child adoption has been increased to 180 days
(v).Restore the allowances abolished for the reason that it is either not reported or mentioned in the Report by the Commission
            17  Advances.
                        Restore the following advances and revise the same to 3 times.
                                    (a). Natural calamity advance;
                                    (b). Festival Advance
                                    ©.  LTC and TA advances
                                    (d). Medical advance
                                    (e). Education advance.
                                    (f)  Vehicle  advances including cycle advance
                 
 18  The stipulation made by the 7th CPC to grant only 80% of salary for the second year of CCL be    rejected and the existing provisions may be retained
19  50% of the CGEIS premium to be paid by the Government in respect of Group B and C employees.
20   Health insurance to be introduced in addition to CGHS/REHS and CCS(MA) benefits and the premium to be paid by the Government and the employee equally. 
21   Reject the recommendations concerning PRIS
22   Full pay and allowances to be provided for the entire period of WRII .
23   The conditions stipulated in clause (4) & (5) under Para 9.2.37 be removed
24   Reject the recommendation made by the 7th CPC in Para 8.16.9 to 8.16.14 concerning dress allowance to PBOR as otherwise the five Ordnance Equipment factories  under OFB will have to be closed down
25   Set up a Group of Ministers’ Committee to consider the anomalies including the disturbance of the existing horizontal and vertical relativities at the National level and Departmental/Ministry level with provision for referring the disputed issues to the Board of Arbitration under the JCM scheme
26   To increase the promotional avenue for Technical and other Supervisory staff.

Wednesday, June 8, 2016

Minimum wage and Fitment formula

Comrades,
                The Staff side had demand of minimum wage of Rs 26000/- & fitment formula of 3.71. Against this the 7th CPC had recommended minimum wage of Rs 18000/- & fitment formula of 2.57. The 7th CPC recommendations has provided only at 14% wage hike at Group “C” level it is only ranging from Rs 2240/- to  Rs  3500/- increase per month, and at Group “B” level ranging from Rs 4000/- to   Rs 6500/- increase per month. After deductions & income tax the net increase will be just from Rs 500/- to Rs 3000/- only .

 This increase is lowest by any pay commission, hence vast changes are required as the prices of essential commodities have gone up and also the inflation rate has gone up.   

There are various reports on 7th Central Pay commission on the media reports on minimum wage of Rs 21000/- & fitment formula of 3.00, (which is at 34% wage hike against the 14% wage hike recommended by the 7thCPC). 

The Empowered committee of Secretaries have not finalised any such minimum wage and fitment formula, the meeting is scheduled on 11th June 2016.     

Please go through minimum wage as on 1/1/2016 using the prices as on 1/7/2015 of the Director of Economic & statics , Ministry of Agriculture and Farmers Welfare, Government of India, New Delhi.

Sources website : http://rpms.dacnet.nic.in/QueryReport.aspx
Minimum Wage as per Government  Prices  as on 1/7/2015
Item
Per Month
Average
Amount
3 units
Rate
in Kgs/ mt
Rice  fine/Wheat
42.75
32.45
1387.2375
Dal / Pulses  
7.2
112.96
813.20
Raw Vegetables
9
112.96
1016.64
Green Vegetables*
11.25
26.78
301.275
Other Vegetables*
6.75
50
337.5
Fruits
10.8
45
486
Milk Dairy
18
97.92
1762.56
Sugar
5
41.85
209.25
Edible Oil
3.6
142.42
512.712
Fish
2.5
231.67
579.175
Meat Mutton
5
401.95
2009.75
Egg
90
4.68
421.2
Detergents*
1
250
250
Clothes
5.5
279.34
1536.37
Total
10809.6695
Housing @ 7.5%
810.65
Miscellaneous @ 20%
2161.93
Total
13782.2495
Additional @ 25%
3445
17227.2495
Grand Total -
Minimum pay for unskilled worker in the erstwhile Group D
17227
Additional @ 25% for Group "C"
4306.75
Minimum pay for skilled worker in the erstwhile Group "C"
21533.75
 Rounded off to Rs 22000/-
Add 6%  for DA = 125%  difference
646
Actual Minimum wage as on 1/1/2016
22179.75

  
 We should add 10% for difference between retail price and Government rates.  It is clear that we should get minimum wage of Rs 24500 and fitment formula is 24500/ 7000 is 3.40 that is 50% wage hike .

The 7th CPC had provided wrong prices for example
Rice/Wheat Rs 25.93 per kg
Dal (Toor/Urad/Moong) Rs 97.84 per kg
If correct prices were adopted by the 7th CPC and correct methodology is adopted we would have got better minimum wage and fitment formula,   

Comrades it is the time to struggle, we should educate the members and prepare for struggle, so that we should get at least 50 % wage hike without allowances, as allowances are not taken into pension benefit.

Only struggle will get us benefit. Please don’t believe on rumours. Now it is now or never.  Serve strike notice on 9th June 2016. 

Comradely yours
(P.S.Prasad)

General Secretary