Central Government Employees demand of date of effect from Jan 2014 is fully justified.

Comrades,

          Now the Government has announced the One Rank One Pension Scheme for Defence veterans. Its Highlights are as follows.

·        The benefit will be given with effect from 1st July, 2014. Arrears will be paid in four half-yearly instalments. All widows, including war widows, will be paid arrears in one instalment.

·        To begin with, OROP would be fixed on the basis of calendar year 2013. Pension will be re-fixed for all pensioners retiring in the same rank and with the same length of service as the average of minimum and maximum pension in 2013. Those drawing pensions above the average will be protected.

   *  In future, the pension would be re-fixed every 5 years.

 Now we should expect the 7th CPC report to be submitted in next three months( after Bihar Elections)

Now the Defence veterans are now having five years wage revision. The government has allowed Central Public Sector units to revise wages of all non-executive employees every five years instead of 10 years.  Bank employees are having five years wage revision.

Why not Central Government employees have the same five years wage revision provided to others and have a permanent wage review body. Now our demand of Central Government employees by the staff side JCM for date of effect from Jan 2014 is fully justified by Government issuing orders for others for five years wage revision as in case of Defence veterans, Bank employees and Central Public Sector.

Comradely yours

(P.S.Prasad)

General Secretary

7th CPC impact will be only minimal on the Government Fiancés

The Hindu Paper Report on 7th CPC : CLICK HERE 

      

     The report of the Seventh Pay Commission (SPC) is set to be released soon. The new pay scales will be applicable to Central government employees with effect from January 2016. Many commentators ask whether we need periodic Pay Commissions that hand out wage increases across the board. They agonise over the havoc that will be wrought on government finances. They want the workforce to be downsized. They would like pay increases to be linked to productivity. These propositions deserve careful scrutiny. The reality is more nuanced.

Its recommendations’ impact need not give us jitters because the rise in government wages will amount to only 0.8 per cent of GDP.

Perhaps the strongest criticism of Pay Commission awards is that they play havoc with government finances. At the aggregate level, these concerns are somewhat exaggerated. Pay Commission awards typically tend to disrupt government finances for a couple of years. Thereafter, their impact is digested by the economy. Thus, pay, allowances and pension in Central government climbed from 1.9 per cent of GDP in 2001-02 to 2.3 per cent in 2009-10, following the award of the Sixth Pay Commission. By 2012-13, however, they had declined to 1.8 per cent of GDP.

This happened despite the fact that the government chose to make revisions in pay higher than those recommended by the Sixth Pay Commission.

Today, Central government pay and allowances amount to 1 per cent of GDP. State wages amount to another 4 per cent, making for a total of 5 per cent of GDP. The medium-term expenditure framework recently presented to Parliament looks at an increase in pay of 16 per cent for 2016-17 consequent to the Seventh Pay Commission award. That would amount to an increase of 0.8 per cent of GDP. This is a one-off impact. A more correct way to represent it would be to amortise it over, say, five years. Then, the annual impact on wages would be 0.16 per cent of GDP.

The medium-term fiscal policy statement presented along with the last budget indicates that pensions in 2016-17 would remain at the same level as in 2015-16, namely, 0.7 per cent of GDP. Thus, the cumulative impact of any award is hardly something that should give us insomnia

There are a couple of riders to this. First, the government is committed to One Rank, One Pension for the armed forces. This would impose an as yet undefined burden on Central government finances. Second, while the aggregate macroeconomic impact may be bearable, the impact on particular States tends to be destabilising.

Downsizing needed?

It is often argued that periodic pay revisions would be alright if only the government could bring itself to downsize its workforce — by at least 10 to 15 per cent. From 2013 to 2016, the Central government workforce (excluding defence forces) is estimated to grow from 33.1 lakh to 35.5 lakh. Of the increase of 2.4 lakh, the police alone would account for an increase of 1.2 lakh or 50 per cent. What is required is not so much downsizing as right-sizing — we need more doctors, engineers and teachers.

Downsizing of a sort has happened. The Sixth Pay Commission estimated that the share of pay, allowances and pension of the Central government in revenue receipts came down from 38 per cent in 1998-99 to an average of 24 per cent in 2005-07. Based on the budget figures for 2015-16, this share appears to have declined further to 21 per cent. In financial terms, this amounts to a reduction of 17 percentage points over 17 years or an annual downsizing of 1 per cent. It’s a different matter that it is not downsizing through reduction in numbers of personnel.

Improving service delivery in government is the key issue. Periodic pay revision and higher pay at lower levels of government relative to the private sector could help this cause provided these are accompanied by other initiatives. The macroeconomic impact is nowhere as severe as it is made out to be.

(T.T. Ram Mohan is professor at IIM, Ahmedabad)

More Photos of 2nd Sept Strike

At HAL 2nd Stage 

At ITEF Bangalore 

At Belgaum 

At Belgaum

At Bagalkot

At Chickmagalur

AT KGF

AT Kolar 

JCTU Rally

AIDEF

2nd September JCTU Rally at Bangalore

THANKS AND CONGRATULATIONS TO ALL COMRADES WHO CONTRIBUTED A LOT IN MAKING 2^nd SEPTEMBER NATION WIDE STRIKE A GRAND SUCCESS.

   P.S.Prasad

 General Secretary

Photos of 2nd September Strike at Districts

Hubli RMS

Postal Office Closed at PSI

Bellary Postal 

At Dharwar Post Office 

At Hassan Post Office 

at Mysore Post Office

At Gangavathi (Koppal)

At GPO Bangalore 

Add caption

At Nanjangud Division 

Consumer Price Index for Industrial Workers (CPI-1W) - July, 2015

The All-India CPHW for July, 2015 increased by 2 points and pegged at 263 (two hundred and , sixty three). DA as on July 2015 is 120.57%

2ND SEPTEMBER STRIKE STANDS

COUNTRYWIDE GENERAL STRIKE ON 2ND SEPTEMBER STANDS

CENTRAL TRADE UNIONS REASSERT THE CALL FOR UNITED ACTION

MARCH AHEAD UNITEDLY, MAKE THE COUNTRYWIDE GENERAL STRIKE ON 2^ND SEPTEMBER A MASSIVE SUCCESS

For more details see http://confederationhq.blogspot.in/

7th CPC Report Delay

Comrades,

1) The 7^th CPC had issued following statement in July 2015 in its websitehttp://7cpc.india.gov.in/ .

“Further to the memoranda received from a variety of Organisations, Federations, Groups representing civil employees in the Government of India as also from the Defence Services, the Commission has had fruitful and wide ranging discussions on relevant issues with all stakeholders. Such interactions have now been concluded. Valuable inputs have been received and the work of compilation and finalization of the report is underway, so that the Commission completes its task in the time frame given to it. Accordingly, any future requests for meeting with the Commission will not be entertained.”

This shows clearly that the 7^th CPC wanted to present its report on 28^th August 2015 itself with no extension of time.   

2) On August 7, 2015 National Council (Staff Side) Secretary Comrade  Shiva Gopal Mishraji met the Chairman, Seventh Central Pay Commission, Shri Ashok Kumar Mathur and Secretary, Mrs. Meena Agarwal.  It was assumed that the report of the VII CPC, as was promised for 28th August this year, may be delayed by one month.

 This shows that the 7^th CPC was delayed only by few days or maximum one month.

3) Many news papers including Danik Bhaskar had reported that the 7^th CPC will be submitting its report in September 2015 itself.

4) The 7^th CPC chairman had informed in a PTI interview Justice Ashok Kumar Mathurji had stated that “The Commission will submit its report by the end of September,” source: CLICK HERE  

5) The Hon’able Finance Minister had informed the parliament  that the provisions for implementation for 7^th CPC is made from Jan 2016 onwards and budget provisions are also made for the current year and next year. which says the salary outgo of central government employees will go up by 9.56 per cent to Rs 1,00,619 crore in current fiscal. The pace will increase further in 2016-17 at 15.79 per cent to Rs 1.16 lakh crore with the likely implementation of the 7th Pay Commission award, the outgo towards salary will further rise in 2017-18 to over Rs 1.28 lakh crore.

6) The 7th Pay Commission has asked for a two month extension from the government.  That the Commission is hoping that the government would take a call on One Rank One Pension, so they could modulate their own formulation in terms of pay revision. The Commission is also expected to take a call on lateral entry and performance based pay. Source: NDTV News and Hindustan times. CLICK HERE and CLICK  HERE  

 One more reason for delay in the submission of the 7^th CPC is likely due to rise in prices of few essential commodities which is due to deficit rainfall .  

7) Now four month extension of term of 7th Central Pay Commission is made the Union Cabinet chaired by the Hon'able Prime Minister, gave its approval for the extension of the term of the 7th Central Pay Commission by four months up to 31.12.2015.

8) Now the delay in submission of report and its implementation will be there and actual benefit of 7th CPC will occur only from July 2016. As Government will constitute its own committee to study the implementation of the 7^th CPC report and issuing orders.    

9) Now larger questions are raised by this extension of term of the 7^th CPC by four months by the Central Government  as follows.

a)  When will the 7^th CPC will submit its report? Now it is clear that the report will be submitted only in December 2015 only, if the 7^th CPC feels that the assigned work has been completed it can submit its report any time, its only upto the 7^th CPC and the Central Government. As a employee we should put pressure on them.

b) Is the 7^th CPC extension so required, from the beginning the 7^th CPC was against the extension of time, even at last stages the it had thought of one month extension only. Suddenly four months delay in submission of report has raised so many questions and the 7^th CPC can submit an interim report.

c)   If DA merger would have taken place in 2014, the Central Government employees would have got a benefit of more than 20% wage hike.      

d)  Now the delay in submission of 7^th CPC report is there, we should immediately demand the interim relief to the Central Government employees and merger of DA with effect from 2014.

We sincerely hope the 7^th CPC report will be submitted at the earliest and the Central Government will implement the report at the earliest, so that the aspiration of the  Central Government employees are taken care by the Central Government. While doing so the right wages are to be calculated by the 7^thCPC.   

Comradely yours

(P.S.Prasad)

General Secretary

2nd September 2015 National Strike Meetings at Bangalore on 26th and 27th August 2015.

Meetings addressed by Com K.P.Rajgopal Secretary Confederation of CG Employees, New Delhi at Income Tax Office , GPO and City RMS  on 26th and 27th August 2015.

7th CPC time extension

The Union Cabinet today cleared a four-month extension to the term of the 7th Central Pay Commission today. Set up by the UPA government in February 2014, the 7th Central Pay Commission was to make its recommendations within 18 months. Its term would have expired on August 27. “In view of its volume of work and intensive stake-holders’ consultations, the 7th Central Pay Commission had made a request to the Government for a four month extension up to December 31, 2015,” a government statement said. Constituted almost every 10 years, the Pay Commission’s main task is to revise the pay scale of its employees. The recommendations of the 7th Pay Commission—slated to come into effect from January 1, 2016, would impact around 48 lakh central government employees and 55 lakh pensioners. The Commission has already completed discussions with various stakeholders, including organisations, federations, groups representing civil employees as well as Defence services and is in the process of finalising its recommendations. 

2nd September 2015 National Strike- Programs

To

All Affiliates

COC Karnataka

Comrade,

                

            The following are the programs in respect of  2^nd September 2015 National Strike . 

   The Central leaders will be visiting Bangalore on 26th and 27th August 2015

1)  Com K.P. Rajgopal Joint Secretary Confederation of   CG Employees and Workers  will be visiting Bangalore on 26th and 27th August 2015 .   

2) Com M.Krishnan Secretary General Confederation of   CG Employees and Workers will be visiting Bangalore on  27th August 2015.

   In this connection  gate meetings are planned on 26th and  27^th August as follows at Bangalore.

a)   At ITEF on 26th August 2015 .

b)   At GPO from 1.00 pm to 2.30 pm on 27th August 2015.

c)   At city RMS from 4.30 pm to 5.30 pm on 27th August 2015.

d)   If any other association wishes to have GB meeting they can contact the General Secretary in advance.

e)   The COC meeting will be held on 27^th August 2015 at 6.30 pm at City RMS Bangalore to review the strike preparations.

f)  The meeting at Survey of India Koramangala  from 1pm to 2pm on 25th August 2015. 

    The posters for national strike has been distributed , if any affiliate wants poster please contact us. 

    It is requested to give wide publicity for these meetings for these meetings and mobilize maximum members to make the strike a success .

Comradely yours

(P.S.Prasad)

General Secretary