TIME TO ACT

GOVERNMENT PRESS RELEASE ON PAY

COMMISSION AND OUR

REACTIONS

The Union Cabinet today gave its approval for implementation of the recommendations. of the Sixth Central Pay Commission. The revised pay scales will come into effect from 1/112006ahd revised rates of allowances from 1/912008. The Cabinet has also decided that arrears will be paid in cash in two Installments - first installment of 40% during the current year (2008-09) and the remaining 60% in the next financial year (2009-10).

2. The Cabinet has broadly accepted the recommendations of Sixth CPC with some modifications in the wake of representations received from various sections Associations of Central Government employees. The new system of four Pay Bands with 20 Grade Pays recommended by the Commission has been accepted with some minor modifications.

3. The minimum Basic Pay for a Government servant has been increased to Rs.7000 from Rs.6660 recommended by the Sixth CPC. Consequently, the total emoluments of an employee at the lowest level will exceed Rs.10,OOO p.m., including allowances.

4. The other highlights of the Cabinet decision covering all Government employees including the Defence Forces are:­

(i) Enhancement in the fitment in revised pay bands, which was recommended by the Sixth CPC to be based on multiplication factor of 1.7410 1.86. This would result in Increased emoluments for Government employees.

(ii) lncrease in the rate of annual increment from 2.5% to 3%.

(iii) Removal of Campus restriction for grant of Transport Allowance. .

(iv) Increase In Transport Allowance at the ,lowest level to Rs.600 (from Rs.400 in A class cities recommended by the Sixth.CPC) and Rs.400 (from RS.3 other cities recommended by the SixthCPC).

(v) At least three promotions have been assured for all Defence Forces' personnel and civilian employees under the modified Assured Career Progression (ACP) Scheme. While the civilians would get it after 10, 20 and 3Q years of service, the Defence Forces Jawans would get ACP in 8, 16 and.24 years.

5. For the Armed Forces' personnel the commission for the first time recommended a military Service Pay(MSP) The Cabinet has increased the rate of MSP for PBORs to Rs 2000 from 1000 recommended by the Commission. The Officer of the defence Forces would get and MSP of Rs 6000 over and above their Pay.

6.The middle level Officers of the Defence Forces namely Colonels and Brigadiers have.been placed in the highest Pay Band.of PB-4.

7. Senior Lt. Generals overlooked for promotion as Army Commanders due to lack of residual service would now get the grade Qf Army' Commander (Secretary's grade). In the case of existing Major Generals/Lt. Generals. MSP will be taken into account notionally for fixation of pay Qn 1/112006.

8. As replacement of the pay scale of Rs 24050-26000. a separate pay scale has been carved for DGPs. PCCFs, GM (Railways). Members the Boards of Income Tax. Customs & Central Excise. Postal and Ordnance Factories. among others, who were in this pre-revised scale. This would take them to the level of Rs.80000 in two years as against three years in the pre-revised scale.

9. Further. the IPS Pay Rules and the Indian Forest Service Pay Rules will be appropriately modified to provide in each State cadre one post of DGPand ono post of PCCF at the apex level of Rs.80000 for heading their respective Forces.

10. Middle level Police and Civilian officers i.e. DIGs. Conservator of Forests. Scientists E & F. Superintending Engineers. Directors. Additional Commissioners of Income Tax and Central Excise and posts in equivalent grades have also been placed in PB-4.

11. Other salient decisions taken by the Cabinet are:

(i) The lower limits of Disability Pension for Defence personnel to be doubled from Rs.1550 to Rs.3100. War Disability Pension to be granted at 60%.

(ii) The rates of Special Forces Allowance for Army and Air Force to be equated with Navy's Marine Commando Allowance.

(iii) For the officers of Central Para Military Forces, all the posts of Additional DIG upgraded to DIG level by the Pay Commission to continue to be manned by the cadre of officers of CPMFs.

(iv) For the Railway employees who are in receipt of Running Allowance , this will be taken into account while fixing their pay in revised pay bands.

(v) Government has continued the present position of granting Group A scale to Group B officers after 4 years of service and these officers would be placed in PB 3 instead of PB-2 recommended by the Sixth CPC. This would benefit Group B officers of the Railways Account Services,CSS, CSSS, and DANICS & DAN PS.

(vi) For Doctors. the Cabinet has approved promotions under the Dynamic ACP Scheme upto senior administrative grade ( joint secretary level) for doctors with 20 years of service. Accounting of dearness allowance ( DA) on non practicing allowance (NPA) as on 1-1-2006 for fixing their pay in revised pay bands has also been approved.

(vii) for the scientist continuation of the existing system of grant of special pay of Rs 2000/pm to scientist G on promotion and doubling of the amount to Rs 4000/pm in Department of Space and Atomic energy and Defence Research and Development Organization has been recommended .

12. The financial implication in 2008-09 on account of implementation of the recommendations of the VI CPC as modified by the Cabinet will be around Rs 157000 Cr. On the central Budget and Rs 6400 crore on the Railway budget.

OUR COMMENTS

POSITIVE THINGS:

1. Date of Effect has been accepted as 1.1.2006.
2. Rate of increment is raised to 3%.
3. Staff Side Demand for 3 Financial Up-gradations is accepted and a 3 ACP Scheme for provision of financial upgradations on completion of 10, 20 and 30 years of service for all Civilian Employees is announced. [For Postal Employees, after study of the full orders, we have to opt for the ACP Scheme by switching over from the TBOP/BCR Scheme].

NEGATIVE ASPECTS:

1. Arrears will not be paid in one lump-sum. Only 40% arrears will be paid in the current financial year and the balance 60% would be paid in the 2009-2010 financial year only.
2. Even the demand for 3.5% annual increment is not accepted.
3. The negative modification made in the ACP Scheme for denying financial upgradation beyond the next grade pay stage is accepted while granting one more financial up-gradation under modified 3 ACP Scheme.
4. Need Based Minimum Wage for a Group D worked out by the Staff Side under the 15^th ILC norms for Rs.9700/- is not accepted. Even the 7400/- Minimum Wage under the 5^th CPC's NNP Formula for the Group D is rejected. Instead only Rs.7000/- announced as the minimum wagesfor a Group C. This is total injustice.
5. The Government says the minimum gross salary will be more than 10,000 per month. But the fact is that only the Group C would get this 10,000 minimum including HRA and other allowances. In Public Sector like LIC the gross salary of a Group D is at present more than 9000/- and with the next wage agreement round the corner for them, the Group D in PSU would go upto more than 12000- . But our Group C would be drawing much less than the Group D of the PSU.
6. The glaring discrimination perpetrated by the Pay Commission by granting a minimum of 41% fixation benefit to a maximum of 180% for the higher officers and recommending only 12% to 38% fixation benefit for the Group C and D employees has not been removed. The major demand of Staff Side for granting a uniform fixation benefit at the rate of 41% by providing for a 2.625 times fixation benefit is rejected. Only a 1.86 times fixation benefit is accepted.
7. The acceptance of the recommendation for abolition of Group D by announcing that except the Peons in Ministerial Offices and the Porters of Railway Department, there will be no Group D in future is a big blow. The pay scale of Group D has not been revised. The 6^th CPC recommendation that non matriculate Gr D would be placed at Rs 4740/- without Grade Pay and allowances including DA has been accepted by Government in an implied manner.
8. Unless it is clarified that in the Department of Posts, the promotion for GDS will continue to be made against the upgraded Group D instead of Group D as at present, the promotional avenues of three lakhs of GDS would be hit in a most adverse manner.
9. The change of Base year for DA from 1982 to 2001 would affect the quantum of DA payable to us. The move to introduce separate Consumer Price Index for Government employees is fraught with dangers for employers.

GIVE A FITTING REPLY

Now, let us understand that the reason behind the announcement of the Government just on the eve of the Strike is to cause confusion and to disrupt the Central Government Employees from participating in the strike enmasse.

And some of our own postal comrades here and there are playing in the hands of the Government by suggesting that now we need not go on strike on 20^th August etc. This is most unfortunate and despite earlier Federal Executive caution that such tendencies tantamount to indiscipline, some leaders at one or two circle and divisional level showing such retrograde trends.

This would lower the image of the NFPE before the eyes of sister organisations with whom we have forged strong unity for opposing the neo-liberal pernicious policies. It would also lower our prestige inside the Confederation in which our movement is considered to be a vanguard.

The success of any Army in War lies in discipline. Undisciplined Army cannot win wars. Trade Union battles also are comparable with the above. Any organisation with such indisciplined commanders would bring only set backs to the movement and not successes.

Let us close our ranks.

Let us raise the banner of NFPE high.

Let us go on total strike on 20^th August to prove our traditions and credentials once again.

It is a war for our existence.

Struggle to advance or remain inactive to perish.

The answer is in your hands.

--
K.Ragavendran
Secretary General NFPE