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Wednesday, March 26, 2008

6th PAY COMMISSION

Dear Comrades,
 
The Press Statement released by the Confederation of CG Employees and the Circular on the recommendations of the Pay Commission issued by the Secretary General Confederation are reproduced below. A detailed reaction by the NFPE on the recommendations with regard to our sectional issues recommended by the Pay Commission will be exhibited shortly. - K.Ragavendran SG NFPE
 

CONFEDERATION OF CENTRAL GOVERNMENT

EMPLOYEES AND WORKERS

CHQ: Manishinath Bhawan A2/95 Rajouri Garden

New Delhi. 110027

Phlone: 25105324 Fax :     25105324

Website:www.confederationhq.blogspot.com

Email: confederation06@yahoo.co.in

Cell phone: 9811048303

 

PRESS STATEMENT

 

            The Sixth Central Pay Commission which submitted its report to the Govt. yesterday has fixed the minimum wage at Rs. 5740/-only.  The Central Govt. employees had demanded the fixation of Minimum wage as per the norms formulated by the 15th ILC which works out to Rs. 10,000 p.m. The computation has been rejected by the Commission on untenable and unsustainable grounds.  Had the minimum wage been computed on the basis of the norms laid down by the 5th CPC. i.e. the percentage increase of the Net National Product over a period of ten years, which the Govt. had accepted in 1997, the minimum should have been determined at Rs. 7400/-.  Thus the minimum wage determined by the 6th CPC is even less than what had been recommended by the 5th CPC and accepted by the then Government as fair and reasonable.  The Pay Commission has gone on record to state that no comparison could be made to the wages obtaining in the Public Sector Undertaking. 

      The first four scales of pay suggested by the 5th CPC for the Group D Employees of the Government have been now removed.  The existing employees in these grades are to be moved to Group C cadres through a process of training thereby indicating that the unskilled functions in the Governmental sector would be contractorised or outsourced. On this specious plea the Commission has flaunted that the Minimum wage in the Governmental sector would hereafter be Rs. 6660 and thus calculated the ratio between the minimum and maximum wages at 1:12.  The real ratio between the minimum and maximum wages have been raised from 1:11.76(determined by the 5th CPC) to 1:15.68.  While huge rise in emoluments have been provided to the senior officers of the Government, the Group B,C and D employees have been totally neglected. 

 

      The Commission has recommended to withdraw the benefit of merger of DA granted to the Govt. employees in 2004.  The new fixation of pay in the revised scales of pay will be by disregarding this benefit.  The proposed 40% fitment benefit will thus be reduced to 28%, when the actual fixation takes place. 

      The Grade pay concept has been introduced as a prologue to the introduction of a performance related pay system without specifying any objective yardstick to measure the performance.  The rate of increase has been pegged down to the level of 2.5% much below even what is obtaining presently under the 5th CPC dispensation..   Another suggestion is to replace the existing adhoc and productivity linked bonus with performance related incentive.  The Commission has inter alia suggested for the reduction of holidays from 17 to 3 without compensatory increase in the number of restricted holidays.  The present health care system under the CGHS is to be replaced by the Medi-insurance for the new entrants.  The pension scheme presently in vogue for those who are recruited prior to 1.4. 2004 has not been extended to the new entrants while they are perforce to contribute 10% of their salary for the new contributory Pension scheme. No doubt the Commission has kept its promise of submitting its report within the prescribed time frame and recommended that its suggestion should be made effective from 1.1.2006.

      To give impetus to the policy of privatization and contractorization, the Commission has recommended for Corporatisation of Indian Railways, which employs the largest number of Central Government employees and for total outsourcing of all the Group D functions across the board in all Central establishments.  In the circumstances, the Central Government employees are constrained to reject the retrograde recommendations of the Commission and demand that the Govt. renegotiate wage revision issue afresh bilaterally. 

      The Confederation has called upon the Central Government employees throughout the country to organize demonstration on 26th March, 2008 to register its emphatic protest over the totally unacceptable recommendations of the 6th CPC.  It also calls upon the sister organizations to unitedly fight to bring about a decent wage settlement for the Central Government Employees.

K.K.N. Kutty.

Secretary General.

 

CONFEDERATION OF CENTRAL GOVERNMENT

EMPLOYEES AND WORKERS

 

CHQ: Manishinath Bhawan A2/95 Rajouri Garden

New Delhi. 110027

Phlone: 25105324

Fax :     25105324

Website:www.confederationhq.blogspot.com

Email: confederation06@yahoo.co.in

Cell phone: 9811048303

      . 

 

 

 

Dear Comrade,

 

            We send herewith a brief synopsis of the important features of the report of the 6th CPC submitted to the Government yesterday.  The full text of the report is available at the web site of the Pay Commission, the address of which is given hereunder. Kindly access the same.

 

                                                            www.finmin.nic.in

 

            The Commission has fixed the minimum wage at Rs. 5740 against the demand we had placed for the grant of Rs.10000 as the need based minimum wage computed as per the formulations of the 15th ILC norms. The CPC has mutiliated the norms to bring down artificially the quantum.

 

            The first four scales of Pay I;e S1,S2,S2A and S3 have been knocked off.  The S 4 scale of 5th CPC i.e. 2750-4400 has been taken as the base scale of pay, the total emoluments of which at the beginning will be Rs. 4860+1800=6660.  The Commission has stated that this would be the minimum wage for future as the existing group D employees who are matriculates will be allowed to be migrated to this scale of pa.  Those who are not matriculates may be allowed to come over to the said scale of pay on a successful completion of training programme.  This has been used as a clever device to flaunt the minimum wage at Rs. 6660 and thereby to show that the ratio of the minimum and maximum salary has been kept at 1:12.  The fact is that the minimum wage is 5740 and the maximum being the salary of the Cabinet Secretary at Rs. 90000. This brings about the ratio of 1: 15.68, an all time high to boost the emoluments of the officers of Gr A services. There had been not a single valid argument or reason adduced the Pay Commission to reject the demand for the need based minimum wage.  Even as per the norms adopted by the 5th CPC the minimum wage ought to have been fixed at Rs. 7408/=

 

            A new concept of Grade Pay has been imported to give the impression that a 40% rise is given at the fixation stage in respect of each employee. If we take into account the revised fitment formula of the 6th CPC in which they had taken out the benefit of merge of 50% DA given in 2004, the net  increase will only be 28%.  The chicanery could be further seen from the fact that a mere Rs. 360 has been added to the pre revised S8 scale of pay i.e. Rs. 4500-100-7000 to replace it with the new scale of pay of Rs. 4860-20200. The fallacy in the construction of the revised scale of pay is further evidenced from the fact that the replacement suggested by us for S 8 in our memorandum begins with Rs. 20000 with an annual increment rate of Rs. 1000. Besides even as per the 6th CPC conversion factor the initial pay of S 8 ought to have been Rs. 10125.  By employing a clever device in the name of Grade Pay, the Pay Commission has virtually retained the pre revised scale of pay with a little cosmetic change.  The fact of the matter is that the Government is empowered to alter or altogether dispense with the grade pay in the case of any single employee in the name of extension of the performance related pay scheme later to the Gr B,C and D cadres.

 

            Without going much into the details of the impact, we should convey to you that the present dispensation is absolutely unacceptable and requires to be re-negotiated bilaterally with the Government.  What should be our formulation in the light of the scheme of things brought about through various recommendation of the Pay Commission is a matter for discussion, deliberation and consensus with the Railways and Defence Federations.  Efforts are on the anvil for bringing about a united approach both in the matter of formulating the demand and the manner and methodology of pursuing it to its logical end.

 

            You may kindly go through the enclosed note as also the various other recommendation of the Commission in the meantime and convey us your considered views so as to help us to formulate the demands that we should place for discussion at the staff side meeting of the National Council JCM

 

            As has been decided by us in our National Executive meeting held at Mumbai on 2nd and 3rd March, 2008 we call upon you to organize massive protest demonstration, rally etc.on 26th March, 2008 eliciting the full participation of all employees to educate and mobilize them against the retrograde and thus unacceptable recommendations of the 6th CPC.

 

            With greetings,

Yours fraternally,

 

 

K.K.N. Kutty

Secretary General

 

Synopsis of the important features of the 6th CPC recommendations:

 

1.                  Revision of pay takes effect from 1.1.2006

2.                  The fitment formula is as under:

Pay as on 1.1.2006 + 74% Pay (as DA)- rounded off to the nearest Rs;10+prescribed grade pay.( which is said to be 40% of the maximum of the pre-revised scale of pay) This means the benefit of merger of DA ( to the extent of 50% given in 2004) will not be available, thereby reducing the net benefit to 28%

3.                  The adhoc and PLB Bonus will be replaced by Performance related incentive scheme.

4.                  The women employees have been provided with staggering working hours, special leave for child care, maternity leave upto 180 days, increased working facilities like working women hostel etc.

5.                  In no future no non-matriculate will be recruited to the Govt. service.  The unskilled jobs are to be outsourced or contractorised. Those recruited on compassionate ground without the requisite matriculation qualification will only be paid a fixed salary of Rs. 4440, which is below even the minimum wage of Rs. 5740.  The period spent on this pay will be treated as training and will not be counted for any purpose.

6.                  The proposed rate of increment i.e. 2.5% may bring about a dip in the quantum of the pre revised increment in certain cases. The demand for increment at 5% of pay stands rejected. The increment in all cases will be with effect from Ist July.

7.                  There is an element of performance related increase in the increment rate by 1% .This is applied initially for Gr.A officers to be extended to other grades later.

8.                  The Govt.has been given the discretion to do away with the grade pay even in individual cases as part of introduction of performance related pay scheme.

9.                  The minmum wage is fixed at Rs. 5740 and not at 6660 as is being propagated.

10.              Maximum salary is Rs. 90000 even more than the salary prescribed for the Vice President India, thereby bringing about the ratio between the minimum and maximum at1: 15.68 whereas it was 1:11.76 in the case of 5th CPC

11.              No change in the periodicity of payment of DA nor in its methodology of computation. The index base year will be shifted to 2001 from 1982. The CPC recommended that no DA merger should be allowed hereafter.  The CPC has recommended for the construction of a separate cost of living index for central government employees.

12.              The CCA is subsumed in the transport allowance and the transport allowance is increased by  times.

13.              HRA. The following recommendations have been made: A1 cities will called X class Cities.- 30% pay + grade pay. A B1 & B2 will be Y class- 20% (increase by 5%) C and unclassified will be Z Class Cities with 10% HRA. (increase 2.5% and 5% respectively)

14.              As and when the DA is increased to 50%,all allowance will be increased by 25%. i.e. only 50% neutralization in the case of allowances.

15.              Education allowance has been raised to Rs. 1000.

16.              Persons stagnating at the maximum of the pay band for more than one year to be placed in the next higher pay band without change in the grade pay.

17.              New entrants: CGHS is replaced by medi-insurance.

18.              The Number of closed holidays have been reduced to three and the restricted holidays have been increased to 8.

19.              Pension: Full pension at 50% of last pay drawn or average emoluments of 10 months whichever is beneficial on completion of 20 years and above qualifying service. On attaining 80 years of age the pension would increase by 20% of Basic pension – at 85 – 30%, at 90-40% , at 95 – 50% and at 100- 100%. Commutation table revised. No change in the periodicity of pension restoration. No change in the EL encashment quantum. Full pension for 10 years as family pension in case of death in harness. Family pension will also get increased in the same ratio as per the age mentioned above. Ex gratia in the case of death while performing duties will be doubled. The ex gratia compensation raised to 10 lakhs in the case of employees who die in accident  and 15lakhs in the case of who lose life due to act of violence. Fitment benefit same as in the case of serving employees. Childless widow may continue to get family pension even after remarriage. Unmarried daughter will get family pension for life.

 



--
K.Ragavendran
Secretary General NFPE

4 comments:

prasitkumar said...

Dear Ragavendran,
It is written in the blog that the recomendation for HRA at A-1 cities will be - 30% pay + grade pay.

But in blue eyes it is not found in the report clearly.

Please Clarify.

Regards.

ayyar said...

The number of pay scales(36 in all) introduced by 5th pay commission was of an optimum size. Within the ranks, one could climb up in hierachy. Be it either SAs or ASPs were not stagnated in one post. Further ACP was a boon to the employees. Employees who had no promotional avenues were greatly benefitted by it.
But shri krishna has undone all the good work of shri.Ratnavelu Pandian.
By reducing the pay scales to 18, the employees have to stagnate for life in their present cadre. There is no charm left in the work right now.
The pay scales should be an inspiration for the employees to climb up in the hierachy. The post with higher responsibility should entitle a higher. This is the universal logic. But Shri Krishna has defied this logic. Extra responsibilities have been attached without any extra remuneration. ex. posts of ASP

Tridib said...

Thanks Mr. K.Ragavendran
Secretary General NFPE for the sysnopsis. That is beautifully presented especially for pointing out the matter of not considering the merger of 50% DA while calculating revsd basic pay on 1.1.06 (74% DA without merger actually calculated). But I would like to make two corrections in this regard - Point No.2 - it should be read as 26.5%-27% in stead of 28% (please calculate again) and Point No.15 - Education Allowance is increased to Rs. 1000/-(thats correct), but Hostal Allowance is increased to Rs. 3000 too.

ayyar said...

Dear Sir,
Though much hype has been created about quantum of pay increase for BCR SA the truth is otherwise. It may be a fact that there is about 38 percent in pay but the justified quantum has been denied.
This is the most disappointing pay commission that I have ever seen.
from
S.K. RAVE, BCR SA BANGALORE CITY RMS