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Monday, November 30, 2015

Staff side views on 7th CPC to be provided to the Government


GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
39-A. North Block. New Delhi-110001
November 21. 2015
D.O.No.1-4/2012-EIII(A)



Dear Sir.

The Report of the 7th Central Pay Commission was submitted to the Government on 19.11.2015. A COPY of the Report is placed on the website of Ministry of Finance (www.finmin.nic.in)

2. The process to examine the recommendations of the Commission has to commence immediately. An Empowered Committee of Secretaries chaired by cabinet Secretary is being constituted to consider the recommendations in its entirety and after considering the views of all the Departments as well as the Staff Associations and JCM. An implementation Cell is also being created In this Ministry to process the recommendations based on the views of the Ministries/Departments , Staff Associations and JCM for submitting the matter for consideration of the empowered Committee of Secretaries and thereafter for approval of the Cabinet based on the conclusions arrived at by the Empowered Committee of Secretaries.

3. Thus, the process to consider the, recommendations before it reaches a final shape for approval of the Cabinet requires consultation amongst all the Ministries/Departments who may formulate their opinion based on the views of Staff Associations under their administrative control.

Understanding the important Recommendations of 7th Pay Commission

4. Accordingly. it is requested that the following action may be taken on an urgent basis in your Department:

(i) A Nodal Officer at the level of a Joint Secretary may be nominated immediately. Whom the implementation Cell in this Ministry would be interacting with during the course of processing of the recommendations

(ii) The recommendations of the Commission may be examined in regard to issues concerning your Department and the views thereon may be furnished to this Ministry within three weeks.

(iii)The recommendations of the Commission may be examined in regard Posts/Cadre/service/ organization under your Department and the views thereon may be furnished to this Ministry within three weeks.

(iv) While formulating the views of your Department, the comments, if any of any of the recognized Staff Associations under the administrative control of your Department. may also be obtained and taken into account.

(v) In case your Department has any view on any of the recommendations contained in the Report, even though it may not directly pertain to your Department, may also be furnished under a separate category within three weeks.

(vi) In case you have any other suggestion to make in this regard, the same will be appreciated.

5. I request you, accordingly to kindly ensure that the action on the above points is given utmost priority and the same is completed within the stipulated timeline of three weeks.

With warm regards.
Yours sincerely.
sd/-
(Annie G Mathew)

View original DO Letter click here

7th CPC Recommendations - Confederation National Secretariat Decisions


CLICK HERE FOR DETAILS

Dear Comrades,

National Secretariat of the Confederation of Central Govt Employees  & Workers held on 27-11-15 at New Delhi after detailed deliberations on the recommendations of the 7th Central Pay Commission (CPC) has decided as follows :

1.The National Secretariat has come to the unanimous conclusion that many of the recommendations of the 7th CPC are most retrograde and require to  be modified before implementation by the Government, especially the faulty and depressed  minimum wage arrived at by the 7th CPC and the fitment formula. Some of the recommendations such as abolition of certain allowances etc., are to be rejected.

2. The National Secretariat is of the firm opinion that a united struggle of entire Central Govt Employees including Railways, Defence and Confederation under the banner of National Joint Council of Action (NJCA) can only compel the Government to modify or reject the retrograde recommendations of the 7th CPC and hence it is decided to further strengthen the unity.

3. The National Secretariat further resolved that the form of the united struggle of NJCA should be an indefinite strike, within a time frame, as Govt is moving fast to implement the recommendations. Negotiation with the Government should precede declaration of indefinite strike and intensive campaign among the employees and mobilization, to create sanction behind the demands.

4. In case the requisite movement is not coming about for any reason, Confederation National Secretariat will meet and chalk out its own independent action.

5. Regarding the sector-wise issues relating to the employees of each department, the affiliated organizations of the Confederation in those departments shall take initiative for uniting all like-minded Federations/Associations/Unions in their department and shall organize agitational programmes on departmental specific demands.

6. The National Secretariat decided to insist that the charter of demands of the NJCA and Confederation should include the demands of Gramin Dak Sevaks, Casual/Contract labourers, filling up of vacancies and scraping the New Contributory Pension Scheme.

7. All affiliated organizations of Confederation are requested to intimate by e-mail to the Confederation CHQ  (confederationhq@gmail.com or mkrishnan6854@gmail.com) on the required modifications or additions / deletions in the common recommendations (not department-specific) of the 7th Pay Commission on or before 05-12-2015.

8. Available Secretariat members of the Confederation will meet on 07-12-2015 at New Delhi and finalize the common demands to be included in the charter of demands of NJCA. (NJCA meeting is being held at JCM National Council, Staff-side office on 08-12-2015 to finalize the charter of demands and the further course of action).

9. The National Secretariat congratulated all the Central Govt Employees who made the 27th November 2015 ‘All India Protest Day’ at the call of NJCA, a grand success all over the country by wearing ‘black badges’ and participating in protest demonstrations.

Other Decisions:

1. Next All India Workshop-cum-Trade Union Camp of Confederation will be held at Dehradun (Uttarakhand) before March 2016.

2. The National Secretariat extended full support and solidarity to the proposed agitational programmes of Passport Employees Association including ‘Indefinite hungerfast’.

=M.Krishnan
Secretary General


Thursday, November 19, 2015

7th CPC Report needs changes

Comrades,
                  The 7th CPC has submitted its report to the Government of India and the expectations of the employees of the Central Government are not in lines of the recommendations of the 7th CPC at many places the existing allowances have been decreased or abolished totally.  The rate of HRA is also reduced to 24% , 16 and 9%.  

                 The main demands of the employees are not considered which include five promotions scheme. Only positive in these reports are parity in pension, retention of DA formula and removal of grade pay system.  The same amount of transport allowance and tour TA/DA is existing; here also there is no change. 

               The major disparity is in the case of minimum wage and fitment formula here the 7th CPC has erred in its calculations and adoption of  Dr. Aykroyd formula and 15th ILO norms instead of fixing minimum wage at Rs 23,000/ it has fixed at Rs 18,000/-, There by the fitment formula instead of 3.25 is at 2.57 thereby the wage hike should have been by 30% , now its is only 14.27 %.

The following table shows the real increase given by each CPC/Government over the previously set minimum pay:

( in percent)
II CPC14.2
III CPC20.6
IV CPC27.6
V CPC31.0
VI CPC54.0
VII CPC14.27



This is the lowest percentage of increase compared to all pay commission report. 

                  The prices from Consumer Price Index for Industrial Workers maintained by Labour Bureau, Shimla is taken instead of Directorate of Economics &  Statistics, Ministry of Agriculture  here the prices are much higher than the  Labour Bureau, Shimla. The 6th CPC has taken average of retail prices and the Government prices, This methodology has also not been adopted.   

                 Secondly the 6th CPC had aslo adopted  Dr. Aykroyd formula and 15th ILO norms the 7th CPC has modified that formula this has also resulted in wrong fixation of the minimum wage.

The 6th CPC minimum wage fixation is given below.

Table 2.2.1
Fixation of Minimum wage as on 1.1.2006 as per 15 ILC norms
Items
Per day PCU
Per month 3CU
Price per kg. taken by Staff Side
Total cost as per Staff Side
Price per kg. as per prevailing rates
Total cost as per prevailing rates
(In grams)
(In kg)
(In Rs)
(In Rs)
(In Rs)
(In Rs)
Rice/wheat
475
42.75
22
941
18
769.5
Dal (Toor/ Urad / moong)
80
7.2
65
468
40
288
Raw Veg.
100
9
28
252
10
90
Greenleaf Veg.
125
11.25
24
370
10
112.5
Other Veg.
75
6.75
26
176
10
67.5
Fruits
120
10.8
50
540
30
324
Milk
200 Ml
18 Lt.
24
432
24
432
Sugar and Jaggery
56
5
24
120
24
120
Edible Oil
40
3.6
90
324
50
180
Fish
2.5
180
450
120
300
Meat
5
180
900
120
600
Egg
90 (no)
2.5
225
2
180
Detergents etc
300 P/m
300
200
200
Clothing
5.5 Mt.
80/Mt.
440
80/Mt.
440
Total
5838
4103.5
Misc. @ 20%*
1167.6
827
Total
7005.6
4930.5
Addl. Exp @ 25%**
1751.4
400#
400#
Total
8757
5330.5
Housing @ 10%***
973
^148
Grand Total
9730
5478.5



Source : Average market rates in Kolkata, Chennai, Delhi and Mumbai as indicated in the Economic Times & other major dailies (element of 20% has been added to cover the increase in cost in retail sale).
Notes     PCU  =  Per  day Consumption Unit          3CU = Three Consumption Units
*      20% Miscellaneous charges towards fuel, electricity, water etc.
** Additional Expense at the rate of 25% includes expenditure towards education, medical treatment, housing, recreation, festivals etc.
# Has been taken as Rs.400 because separate allowances for education, medical treatment and housing exist in the Government. Consequently, only the expenditure towards recreation & festivals need to be taken in account.
^ Being the license fee chargeable for government accommodation at an average rate of 3% of the basic pay

   The 7th CPC fixation is also given below

Calculation of Minimum Pay as on 01.01.2016 by the Commission
Price/ Unit ()
Per day PCU
Per month 3 PCU
Expenses ()
Unit
Unit
1
Rice/Wheat
475
gm
42.75
kg
25.93
1108.3
2
Dal (Toor/Urad/Moong)
80
gm
7.2
kg
97.84
704.44
3
Raw Vegetables
100
gm
9
kg
58.48
526.28
4
Green Vegetables
125
gm
11.25
kg
38.12
428.85
5
Other Vegetables
75
gm
6.75
kg
32.8
221.42
6
Fruits
120
gm
10.8
kg
64.16
692.93
7
Milk
200
ml
18
litre
37.74
679.26
8
Sugar/Jaggery
56
gm
5.04
kg
37.4
188.48
9
Edible Oil
40
gm
3.6
kg
114.02
410.46
10
Fish
2.5
kg
268.38
670.95
11
Meat
5
kg
400.9
2004.51
12
Egg
90
no.
4.27
383.98
13
Detergents etc
/month
291.31
291.31
14
Clothing
5.5
164.88
906.83
15
Total (1-14)
9217.99
16
Fuel, Electricity, Water Charges
2304.5
17
Total-(15) divided by 0.8
11522.49
18
Marriage, Recreation, Festivals, etc.
2033.38
19
Total-(17) divided by 0.85
13555.87
20
Provide for Skill by adding 25% to (19)
3388.97
21
Sum (19+20)
16944.84
22
Housing @
524.07
23
Total-Divide no.21 by 0.97
17468.91
24
Step up of 3% on No.23 as DA is projected at 125% on 01.01.2016
524.07
25
Final Minimum Pay as on 01.01.2016 (23+24)
17992.98
26
Rounding off
18000
Minimum Wage as per Prices  of  Directorate of Economics &  Statistics, Ministry of Agriculture 

Prices  as on 1/11/2015
Item
Per Month
Average
Amount
3 units
Rate
in Kgs/ mt
Rice Super  fine/Wheat atta 
42.75
44.25
1891.6875
Dal 
7.2
151.87
1093.464
Raw Vegetables
9
30.47
274.23
Green Vegetables*
11.25
40
450
Other Vegetables*
6.75
40
270
Fruits
10.8
68.87
743.796
Milk Dairy
18
38.16
686.88
Sugar
5
31.75
158.75
Edible Oil
3.6
136.71
492.156
Fish
2.5
433.81
1084.525
Meat Mutton
5
447.18
2235.9
Egg
90
4.89
440.1
Detergents*
1
300
300
Clothes
5.5
240
1320
Total
11341.4885
Housing @ 7.5%
850
Miscellaneous @ 20%
2268
Total
14460
Additional @ 25%
3615
18075
Grand Total -
Say Rs 18,000/-
Minimum pay for unskilled worker in the erstwhile Group D
18000
Additional @ 25% for Group "C"
4518
Minimum pay for skilled worker in the erstwhile Group "C" as per Govt Prices
22593
Source : http://rpms.dacnet.nic.in/Bulletin.aspx
Add 10% for retail price diffrence
2300
Actual Minimum wage
25,000


 Hence it is quite clear that the minimum wage calculation and fitment formula needs relook. Also the allowances rates should be increased.


Comradely yours  


(P.S.Prasad)
General Secretary