There is a lot of money at Indian PSUs now. The government salary is too low in comparison to other private sectors. But profit of PSU is almost same to equivalent private sector. There is very high demand of talented and skilled man power in PSUs to retain the high growth . But they are unable to attract suitable people because of low salary.
So now PSUs are demanding independent pay structure from government. Sixth pay commission report also recommended it.
If this will be approved by government, all PSUs can independently fix perks and various allowances for its employees same as Private sector. Government will not have to pay for it. This extra cost will be paid by PSUs from their profits.
People working in PSUs will find soon lot of differences in salary because of variable pay and perks.
Above is the latest news about sixth pay commission in april 2008
Monday, April 7, 2008
PSUs demanded independent pay stucture
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april 2008,
PSU,
sixth pay commission
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Copy of Staff Side Secretary letter dated 8th April, 2008 in NC/JCM-2008/VI CPC (CS) addressed to the Cabinet Secretary.
Dear Sir,
As you are aware that the report of the VI CPC has been submitted and there are varied types of commentaries including expression of anger amongst the Central Govt. employees in various parts of the country.
We, Staff sie members of the National Council JCM have discussed and prepared a Note which we are enclosing herewith.
We will like to request you to kindly advise Secretary (DOPT) who is also the Chairman of the Standing Committee (NC-JCM) to call the meeting of the Standing Committee to discuss al these matters in presence of Secretary (Expenditure) and orders concerned.
I have met the Secretary (Expenditure) who has kindly clarified certain issues. This has gone a long way in proper understanding of the issues involved.
An early action would help clear the atmosphere.
Thanking you,
Copy to Secretary, DOPT. And To Secretary (Expenditure)
The modification required to be made to the report of the 6th CPC
1. A.The minimum wage
The computation of minimum wage of the 6th CPC is not acceptable for the following reasons in brief..
i. Prices applied for various commodities (included in the basket) is the wholesale price as increased by 20% which is not the norms prescribed by the 15 ILC;
ii. The exclusion of 25% for meeting expenditure connected with social obligation like marriage, education of children, recreational needs etc. is on the untenable grounds.
iii. The exclusion of 10% for the housing requirement (on the ground that HRA is given separately) is not correct as HRA is not a full reimbursement of the expenses incurred by the employee.
If these corrections are carried out the need based minimum wage will be what is computed by the staff side.
B. Even as per the formulation adopted by the 5th CPC the minimum wage works out to Rs.7400 i.e. by application of the percentage increase of the net national product which comes to 56.2%
C. The Commission, without assigning any reason has rejected the demand of the staff side for parity in the minimum wage with what is obtaining in certain specified public sector undertakings.
D. For the above reasons, the minimum wage need to be worked out afresh and the same reflected in all the pay bands appropriately by applying the resultant multiplification factor as was done by the 5th CPC.
2. Fitment formula
Rejection of point to point fixation, (which is normally adopted by the PSUs in their wage revisions as fitment formula) is for no sound reasons. There is no 40% hike as propagated by the Commission.. By withdrawing the benefit of merger of DA the actual rise is between 15 to 28% . Our demand in this connection is as under:-
(a) The merged portion of the DA should be taken into account to arrive at the revised basic pay and Grade Pay in each case.
(b) Since quite a number of pay scales have been merged together (especially in Gr.B & C cadres)the senior employees who were in higher scales of pay and who have put in large number of years of service progressively get reduced benefits.
(c) Taking these two factors into account we suggest that the fitment formula as suggested by the Commission may be amended to incorporate the following:
" subject to the condition that the pay and grade pay so fixed is not less than 2.625 times of the pre revised basic pay."
` The multiplication factor of 2.625 is the same as is applied in the case of the entry grade pay band and grade pay in the case of Gr.A officers. This clause will make good the loss of benefit one might suffer due to the exclusion of the DP from the computation process of fitment formula.
3. Rate of increment.
(a) The rate of increment suggested by the CPC is to be raised to 3.5% for the following reasons:
(i) The 2.5% is below the existing rate of increment in many grades.
(ii) Due to the compounding factor, over a period of ten years, this might rise to 4.5% still less than the prevailing rate of increment in the PSUs which is 5% and above.
(b) The condition prescribed i.e. to have a minimum six months for applying the uniform date of increment must be done away with, as it is only to be applied in the initial year.
4. Transport allowance.
The recommendation of the Commission is to subsume the CCA in the Transport allowance and raise the existing Transport allowance by 4 times. This has reduced the proportionate benefit to certain grades and categories of employees. We make the following suggestions:
(a) Since the CCA has been subsumed in this allowance, no condition should be imposed for the grant of this allowance.
(b) Taking into account that some of the employees might get reduced benefit from the across the board rise at the rate of 4 times, the following rates may be applied.
Employees drawing grade pay
A-1/A class cities
Others.
Rs.5400 and above.
Rs. 3200 + DA
Rs. 2400 + DA
Rs. 4200 – 4800
Rs. 2400 + DA
Rs. 1800 + DA
Rs. Below Rs. 4200
Rs. 1600 + DA
Rs. 1200 + DA
(i)
5. Fixation of pay on Promotion
In the present scheme of things, wherein many grades have been merged under one single Pay band, promotion will not bring about any significant rise in emoluments. The benefit will be very insignificant in the case of promotion from one grade to another where the grade pay is one and the same. In that case the one increment benefit will be less than even what is obtaining today. We suggest to incorporate the following clause to take care of this situation.
"the pay plus grade pay so fixed on promotion shall not be less than 10% of pay plus grade pay the individual was drawing in the feeder cadre."
6. Allowances and benefits withdrawn.
Certain allowances and benefits have been withdrawn to be replaced with a new scheme. The New scheme will have to be formulated on the basis of discussion/agreement in the National/Departmental Council as the case may. Till such agreement is reached, the old scheme of allowances and benefits will continue to be operated relating to the revised basic pay and grade pay.
7. Special duty allowance of North Eastern Region.
We hope that the SDA will now become available for all employees working in the North Eastern Region. However, we feel that it is likely that the phraseology employed in detailing the scheme is capable of misinterpretation giving room for further discrimination amongst the employees posted in N.E. Region. This may therefore, be appropriately clarified to mean that the employees and officers working in North Eastern Region is entitled to draw this allowance .
8. Daily allowance on tour:
The rates of daily allowance which include the following elements, viz. food, conveyance and accommodation suggested by the Commission to the officers other than Gr. A is extremely meager and would not go to meet the expenditure involved. We suggest the following amendment .
The rates prescribed for grade pay of Rs. 4200 to 4800 and below Rs. 4200 may be replaced with the following.
Rs. 4200 to 4800
Reimbursement of hotel accommodation of upto
Rs. 1000 per day . reimbursement of travel charges
upto Rs. 150 per diem for travel within the city and
reimbursement of food not exceeding Rs. 200 per day.
Below Rs. 4200
Reimbursement of hotel accommodation of upto
Rs. 700 per day . reimbursement of travel charges upto
Rs. 150 per diem for travel within the city and
reimbursement of food not exceeding Rs. 200 per day.
9. Promotion. ACP Scheme.
The scheme should be improved to provide three promotion at the intervals of ten, twenty and twenty five years of service.
10. Inappropriate rationalization
There is a great deal of resentment over the rationalization of the scales of pay of S9 to S12. The grievances in this must be addressed by appropriate decisions.
11. Pension.
The Staff Side appreciates the acceptance of some of its suggestions for improving the pension of the old pensioners by the Commission. However, we feel the following amendment is needed in the case of pensioners.
(a) to raise the minimum pension from the suggested 50% to 75% i.e. from Rs. 3330 to Rs. 4995.
(b) The 5th CPC suggestion to refix the pension on the basis of the notional pay as on 1.1.1996 is to be implemented. The pension entitlement has to be worked out on that basis. The new commutation table to be applied only prospectively.
(C) The restoration of commuted value of pension should be on completion of 12 years
12. Fast track committee.
There are cases like the Master Craftsmen, where the existing pay scales have been reduced to a lower scale. To consider these types of cases, a fast track committee may be set up.
13. Anomalies.
There are certain anomalies arising from the disturbance of vertical and horizontal relativities etc. For quick and time bound disposal of these anomalies a Joint Committee of the National Council JCM with the participation of the Secretaries of all concerned Ministries should be constituted.
14. Grameen Dak Sewaks.
Grameen Dak Sewaks are employed by the Postal Department. They constitute the largest segment of the workforce of the Postal organization. We suggest that the pay, allowance, pension and other benefits in their case should be proportionately what is suggested to the regular civilian employees. Since the Group D Cadres have been abolished, they may be promoted/absorbed/regularized in Group C cadres in the same manner provided for matriculate/non matriculate regular Group D employees.
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