MINUTES OF THE MEETING OF THE STANDING COMMITTEE
HELD BETWEEN THE STAFF-SIDE, NATIONAL COUNCIL (JOINT
CONSULTATIVE MACHINERY) AND THE OFFICIAL-SIDE UNDER
THE CHAIRMANSHIP OF SECRETARY(P) AT 3.00 P.M. ON 03.05.2017
There are various reports in the news media, print media & social
media regarding the hike in the minimum wage of Central Government employees
from the existing Rs 18,000/ - to Rs 21,000/ and fitment formula from 2.57 to
3.00, which shall be implemented from 1st January
2018. The same shall be announced in the National Anomaly
Committee due on 9th of
Comrades , We cannot confirm this news, comrades we should
concentrate on struggle path as the Confederation has given the series of
programs , I hope the Government will implement the hike in minimum wage for CG
employees and revise the fitment formula also from the existing 2.57 to
3.00 even though the Staff side JCM has demanded Rs 26,000/ as minimum wage and
fitment formula of 3.56 , this hike should be from 1/1/2016 not 1/1/2018 as per
In fact the Central Government has to take the political
decisions on the wage hike , in fact the group of ministers of the Central
Government have agreed to raise the minimum wage for CG employees
on 30th June 2016 . I hope the commitment of the union
minsters shall be honoured now.
Secondly the economy of the country which was
going very well during past three years has showed down ward trend in last one
year as the GDP which was at 9.1 in 2015-16 has reduced to 5.7 in 2017-18 .The
economic activity has to take place, it is also observed during the past one
year, in spite of economic recessions, the Government revenue collection has
increased considerably. To improve the economic activity of the country and increase
the GDP the Central
Government should spend its funds which is available with them .
If the Central Government increases the minimum wage and
fitment formula for its employees, the Central Government employees gets back
40% of the wage increase through the Income Tax and GST . So hardly a
Government servant is left out with 60% wage hike , here also he spends the
amount credited to him , as such an economic activity is induced in the public
which will help to create more demand and employment activity.
I hope the Central Government takes a political
decisions on increase of minimum wage hike and fitment formula for more than
one crore employees which will also benefit the public and the CG employees.
No.1/9/2017-E-II (B) Government of India Ministry of Finance Department of Expenditure
New Delhi, the 20th September, 2017.
Subject: Grant of Dearness Allowance to Central Government employees Revised Rates effective from 01.07.2017. ***
The undersigned is directed to refer to this Ministry’s Office Memorandum No. 1/3/2017-E.II(B) dated 30th March, 2017 on the subject mentioned above and to say that the President Is pleased to decide that the Dearness Allowance to Central Government employees shall be enhanced from the existing rate of 4% to 5% of the basic pay per month, with effect from 1st July, 2017.
2. The term ‘basic pay in the revised pay structure means the pay drawn in the prescribed Level in the Pay Matrix as per 7th CPC recommendations accepted by the Government, but does not include any other type of pay like special pay, etc.
3. The Dearness Allowance will continue to be a distinct element of remuneration and will not be treated as pay within the ambit of FR 9(21).
4. The payment on account of Dearness Allowance involving fractions of 50 paise and above may be rounded to the next higher rupee and the fractions of less than 50 paise may be ignored.
5. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant Head of the Defence. Services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.
6. In so far as the employees working in the Indian Audit and Accounts Department are concerned, these orders are issued in consultation with the Comptroller and Auditor General of India.
(Nirmala Dev) Deputy Secretary to the Government of India
The COC Karnataka meeting was held on 08-09-2017.at City RMS at 7 pm.
Working President Com.P.S.Prasad, presided over the
The following points were discussed as per agenda:
1. Holding District level Dharna program at Kendriya
Sadan, Koramangala, Bengaluru on
20-09-2017, between 12-30pm to 2-30pm and
at district places at respective Head Post Offices / Income Tax offices .
2. Proposed to Hold State level Dharna on 17-10-2017 at
3.Opening of new Account of COC, Karnataka at
Karnataka Circle Postal Credit Co-operative Society Ltd.
4.Registration of CoC Karnataka at Sub Registrar Office
and preparation of relevant documents required to be made ready.
P.S.Prasad informed that the Confederation Leaders appreciated the COC
Karnataka for conducting National Secretariat Meeting at ITEF in a grand
manner. He also informed a resolution has to be submitted to the Confederation
regarding holiday on 1st November on account of State formation Day
of the State of Karnataka and to include the same in the Holiday List, as
discussed in the National Secretariat Meeting.
He also clarified regarding Gazette Notification of
minimum wage act 1936 of Rs.24000 per month issued by the Government.
The meeting also discussed the minimum wage issue and
resolved to fight it for a justified minimum wage of Rs 26,000/-
Com.Vinod General Secretary COC Karnataka appealed to all the affiliates to organize
Sharma programme successfully to put forth pressure on the Govt. to achieve our
just demands. Comrades, we shouldn't be in sleep mode and we all
should fight for achieving our charter of Demands.
The meeting it was also decided to print bilingual
Posters in Kannada & English.
Meeting concluded at 8.45 pm with vote of thanks
from Com Ramakrishna Joint Secretary.
The concept of
the Need-Based Minimum Wage has evolved in India after Independence and owes its origin to the Directive Principles of the Indian
Constitution and the welfare policy of the Government. Its acceptance in
principle connotes a public effort at an institutional determination of wage
rates particularly in the industrial sector of the economy. Unfortunately the
computation of the need based minimum wage has become a controversial subject
in the country. While the concept of what the need based minimum wage should
cover is fairly clear and generally accepted by both the employer and employee,
its actual assessment into monetary terms has raised endless disputes not alone
by the employer.
MINIMUM WAGE FORMULA:
for the average family will have to be based on requirements of food, clothing,
housing and so on. Additional components of expenditure to cover for children’s
education, medical treatment, recreation, festivals and ceremonies.
In a vast country
such as ours, there are bound to be regional variations in these requirements
owing to climatic conditions, food habits, etc. At the same time in order to
ensure a degree of uniformity the Conference have adopted a certain norms. The
food component carries the largest- proportion of the total cost of living in a
working class family. The component’s significance is not only economic but
human also. On food depends the health and efficiency of the worker, which is
vital to the industrial production. After a protracted discussion the
Conference adopted Dr. Aykroyd’s second dietary prescription of the adequate
diet level, the other one being the optimum diet level. An optimum diet
according to him, is one which ensures the functioning of the various life processes
at their very best; whereas an adequate diet maintains these processes but not
at their peak levels. The optimum diet would include more of vitamins and less
of proteins in its caloric content, while the adequate diet would include more
of proteins and less of vitamins.
The Committee on
Fair Wages laid down that the standard working class family should be reckoned
as one consisting of three consumption units, supported by a single male earner
and including his wife and two children below the of age 14 The 15th Session of
Indian Labour Conference approved that the wage should cover four categories of
needs considered essential for the worker's well being, viz. food, clothing,
housing and miscellaneous. In calculating the minimum wage, the norms for the
food category should be based on Dr. W.B. Aykroyd’s formula for an adequate and
balanced diet. It thus came about that a wage linked to the needs was suggested
as a desirable minimum.
when attempting to implement the recommendations of the conference, almost all
the wage fixing authorities including the committees appointed under the
Minimum Wages Act, 1948 have invariably faced difficulty in determining: (i)
the calorific norm which should form the basis of the diet content (ii) the
exact composition of the diet (iii) the qualities of the various items of diet
and (iv) availabilities of food commodities consumed by the worker and his
pattern of consumption. In this regard the first assault was launched by the II
Central Pay Commission (1959), pertaining to the calorific norm as laid down by
the 15th Indian Labour Conference. The Indian Labour Conference worked out the
three-unit formula, the minimum wage is worked out taking into consideration
the calorific value requirements of 2,700 each, certain length of cloth
requirement, housing rental value, education and medical expenses etc.
CONCEPT OF LIVING
Concept of Living Wages It represents a standard of living which
provides not merely for bare physical subsistence but for maintenance of health
and decency, a measure of frugal comfort, including education of children,
requirement of essential social needs and a measure of insurance against eh
more important misfortunes including old age. This is the ideal wages and
envisaged in Article 43 of Directive Principles in Part IV of the Constitution.
I. L. O. Conventions also provide for living wages.
Living wages is the ideal wages and on the line as stipulated in Article
43 of our Constitution. Wage differentials are necessary part of wage structure
if skill formation is to be motivated and productivity is to be achieved but at
the same time it should be reasonable.
Hence it is relevant to quote the following observation made by the
Kerala High Court in Association of Planters of Kerala v State of Kerala in
this regard: “ A failure to fix or revise minimum wages was not only a
statutory violation but is a breach of fundamental right enshrined in Art. 23
of the Constitution. A duty is cast upon the State by provisions of the Act and
Article 23 to fix and revise the minimum rates of wages.
REPORT PARA NO 4 HAS ALSO DEALT THE ISSUE OF A NEED-BASED MINIMUM WAGE
TAKING INTO THE CONCEPT OF THE FOLLOWING.
family is taken to consist of a spouse and two children below the age of 14.
With the husband assigned 1 unit, wife, 0.8 unit and two children, 0.6
units each, the minimum wage needs to address 3 consumption units;
b) . The food requirement per consumption unit is shown in the Annexure
to this chapter. The specifications were derived from the recommendations of
Dr. Wallace Aykroyd, the noted nutritionist, which stated that an average
Indian adult engaged in moderate activity should, on a daily basis,
consume 2,700 calories comprising 65 grams of protein and around 45-60 grams
of fat. Dr Aykroyd had further pointed out that animal proteins, such as milk,
eggs, fish, liver and meat, are biologically more efficient than vegetable
proteins and suggested that they should form at least one-fifth of the total
c) The clothing requirements should be based on per capita
consumption of 18 yards per annum, which gives 72 yards per annum (5.5 meters
per month) for the average worker’s family. The 15th ILC also specified the
associated consumption of detergents
d) The prescribed provision of Report of the Seventh CPC 63Index 25
percent to cover education, recreation, ceremonies, festivals and medical
expenses has been reduced to 15 percent.
BASED FORMULA ADOPTED BY THE PAY COMMISSIONS NEEDS A CHANGE TO SIX UNITS DUE TO
FOLLOWING FACTORS :
based formula to fix minimum wages presently counts only four members of a
family ie husband, wife and two children. It has no provision to count
dependent parents, if any, or even if there are more than two children.
formula gives the husband a full unit, wife 0.8 unit, and 0.6 units for each of
the two children.
Now the trade
unions and the employees associations are of the opinion that the
three-unit system are not sufficient to decide minimum wages because the
children continue to stay with the family for longer periods. The two children
and wife should be accorded one single unit instead of 0.6 units,” also,
marriageable age of a child has also increased and they should also be given
full units, the gender equality should also be observed instead of 0.8 units it
should be full unit for the spouse.
Hence should be
revised to the four unit formula gives the husband a full unit, wife full unit,
and full units for each of the two children.
After the 2010
Supreme Court ruling that dependent parents are to be taken care of by
children, two more units should be added and the formula be based on six-unit
formulae than three.
section 125 and Maintenance of Parents and Senior Citizens Act make it
mandatory for an earning member to maintain his parents, failing which he/she
may have to face penal consequences. Today, the average life span of a person
has increased to 68.3 years compared to that of 41 years in 1957. Hence two
additional units have to be added,”
is a need to hike number of units from three to six to calculate minimum wages.
AFFECTING OUR WAGES ARE AS FOLLOWS:
1) The 7th CPC
has taken into consideration the 15% to cover education, recreation,
ceremonies, festivals and medical expenses against 25% prescribed by the
Supreme Court . Additional components of expenditure to cover for
children’s education, medical treatment, recreation, festivals and ceremonies.
This followed from the Supreme Court’s ruling in the Raptakos Brett Vs
Workmencase of 1991 for determination of minimum wage of an industrial
worker. The Supreme Court had prescribed this amount at 25 percent of the total
minimum wage calculated from the first five components.
the prices of essential commodities for calculation of the minimum wage is
always a debate , the price essential commodities by the using Consumer
Price Index for Industrial Workers maintained by Labour Bureau, Shimla and the
retail prices are showing different rates , the retail prices of essential
commodities are at higher end including that of state
Government run co-operative society’s compared to the retail
prices maintained by Labour Bureau, Shimla by more than 15%, that is
the prices maintained by Labour Bureau, Shimla are lower by more than 15%
compared to market prices , the CG employees are deprived of proper minimum
wage by an extent of 25% . If proper retail prices are taken into
account the minimum wage shall be more than Rs 26,000/- as on 1st Jan
THE PAYMENT OF WAGES
The revision of payment of wages
act, 1936 , the Government has raised the monetary limit of wages to Rs.
24000/- per month for the applicability of the Act by issuing the notification
.This calculation of Rs 24,000/ is based on Dr. W.B. Aykroyd’s formula. This is done on the basis of figures of
the Consumer Expenditure Survey published by the National Sample Survey
Thepayment of wages act, 1936monetary limit of wages to Rs. 24000/- per month is
for unskilled worker , if we add Rs 25% for skilled worker , it work out at Rs
30000/- for skilled worker which includes wages and allowances, at present the
Central Government employees at the initial stage are paid Rs
23,000/- (Rs 18,000/ as minimum wage and Rs 5,000/ as allowances ), still there
is gap of Rs 7,000/ , if the minimum wage of Central Government employees is re
fixed at Rs 22,000/ then this gap shall be reduced.
The breakup of the Central Government employee’s
salary is as follows.
Non Metro City
Minimum wage Rs 18,000/-
HRA Rs 1800/-
Transport allowances Rs 900/-
Children education allowances Rs 2250/-
Total Salary : Rs 22950/-
The Central Government employees are deprived of the actual minimum wage
of Rs 26,000/-. Hence there is a need of revision of minimum wage from Rs
18,000/ as Central Government is a model employer.
– Code on Wages Bill: The Code would ensure universal minimum
wage for all industries and workers. Moreover, it will also cover those workers
who are getting a monthly pay of higher than Rs 18,000.
Code on Wages Bill seeks to empower the Centre to set a minimum wage across
sectors and states will have to maintain that.
Moreover, the best part is that states will be able to provide for higher
minimum wage in their jurisdiction than fixed by the Central government.
Besides, the minimum wage would be applicable on all classes of workers. At
present, it is applicable for scheduled industries or establishments in the law.
universal minimum wage would be applicable for all workers irrespective of
– As of
now, minimum wages are now applicable to 51 scheduled employments only. Now,
the wage code amalgamates the provisions of four extant Acts — the Minimum Wages
Act, 1948, The Payment of Wages Act, 1936, The Payment of Bonus Act, 1965, and
the Equal Remuneration Act, 1976. It means the wage code aims at reducing
disparity in minimum wages across states. This means the proposed Code on Wages
will subsume the Minimum Wages Act of 1948, the Payment of Wages Act of 1936,
the Payment of Bonus Act of 1965 and the Equal Remuneration Act of 1976.
wage code will empower the Centre to notify a ‘national minimum wage’ (below
which no state can fix their minimum wages) and this will be revised every two
years (five years if the dearness allowance becomes part of the minimum wages).
The Confederation National Secretariat decided to organise the following agitational programmes in a phased manner.
1. Mass dharna at all District headquarters demanding settlement of modified charter of demands of Confederation on 19th September 2017 (Tuesday).
2. Mass dharna at all state capitals on 17th October, 2017 (Tuesday).
3. Three days massive relay dharna in front of Parliament from 9th November to 11th November 2017 along with Central Trade Unions.
4. Indefinite strike in 2018 jointly along with Central Trade Unions. (Date will be finalised by the Central Trade Unions and independent Federations including Confederation).
All affiliated organisations and COCs are requested to make the above programmes a grand success. As the NDA Government is aggressively implementing the neo-liberal policies in all sectors, it is our responsibility to join hands with the entire trade unions and unitedly resist the onslaught. If the Govt. is not ready to change its destructive policies, the workers have no option but to embark upon a prolonged struggle jointly with the suffering common people of our country, to change the Government. It is in this background Confederation National Secretariat decided to join with the 3 days mass dharna at New Delhi and indefinite strike. In the meantime, if NJCA meets and take decisions for any agitational programmes, confederation shall implement the programmes of NJCA also. Modified charter of demands of the Confederation is also enclosed herewith.
1. Honour the assurance given by the Group of Ministers to NJCA on 30th June 2016 and 6th July 2016, especially increase in minimum wage and fitment factor. Grant revised HRA at the rate of 30%, 20% and 10% with effect from 01-01-2016. Settle all anomalies arising out of implementation of 7th CPC recommendations, in a time bound manner.
2. Implement option-I recommended by 7th CPC regarding parity in pension of pre-2016 pensioners.
3. Scrap PFRDA Act and Contributory Pension Scheme and grant pension and Family Pension to all Central Government employees recruited after 01.01.2004, under CCS (Pension) Rules 1972.
4. Treat GraminDakSewaks of Postal department as Civil Servants, and extend all benefits like pay, pension, allowances etc. of departmental employees to GDS.
5. Regularise all casual, contract, part-time, contingent and Daily rated mazdoors and grant equal pay and other benefits.
6. No Downsizing, Privatisation, outsourcing and contractorisation of Government functions.
7. Withdraw the arbitrary decision of the Government to enhance the bench mark for performance appraisal for promotion and financial upgradations under MACP from “GOOD” to VERY GOOD” and also decision to withhold annual increments in the case of those employees who are not able to meet the bench march either for MACP or for regular promotion within the first 20 years of service. Grant MACP pay fixation benefits on promotional hierarchy and not on pay-level hierarchy. Personnel promoted on the basis of examination should be treated as fresh entrants to the cadre for grant of MACP.
8. Withdraw the draconian FR 56 (J) and Rule 48 of CCs (Pension) Rules 1972 which is being misused as a short cut as purity measure to punish and victimize the employees.
9. Fill up all vacant posts including promotional posts in a time bound manner. Lift ban on creation of posts. Undertake cadre Review to assess the requirement of employees and their cadre prospects. Modify recruitment rules of Group-‘C’ cadre and make recruitment on Reginal basis.
10. Remove 5% ceiling on compassionate appointments and grant appointment in all deserving cases.
11. Grant five promotions in the service carreer to all Central Govt. employees.
12. Abolish and upgrade all Lower Division Clerks to Upper Division Clerks.
13. Ensure parity in pay for all stenographers, Assistants, Ministerial Staff in subordinate offices and in all organized Accounts cadres with Central Secretariat staff by upgrading their pay scales. Grant pay scale of Drivers in LokSabha Secretariat to Drivers working in all other Central Government Departments.
14. Reject the stipulation of 7th CPC to reduce the salary to 80% for the second year of Child Care leave and retain the existing provision.
15. Introduce Productivity Linked bonus in all department and continue the existing bi-lateral agreement on PLB wherever it exists.
16. Ensure cashless, hassle free medical treatment to all Central Government employees & Pensioners in all recognized Government and Private hospitals.
17. Revision of Overtime Allowance (OTA) and Night Duty Allowance (NDA) w.e.f 01.01.2016 based on 7th CPC pay scale.
18. Revision of wages of Central Government employees in every five years.
19. Revive JCM functioning at all levels. Grant recognition to the unions/Associations under CCS (RSA) Rules 1993 within a time frame to facilitate effective JCM functioning.
20. Implementation of the Revised Pay structure in respect of employees and pensioners of autonomous bodies consequent on implementation of CCS (Revised Pay) Rules 2016 and Revised Pension Rules in respect of Central Government employees and pensioners.
21. Implementation of the “equal pay for equal work” judgment of the Supreme Court in all departments of the Central Government.