7th CPC REPORT & NDA GOVERNMENT
M. Krishnan, Secretary General,
Confederation of C. G. Employees & Workers
Report of the 7th Central Pay
Commission (CPC) headed by Retired Supreme Court Justice, Ashok Kumar
Mathur was submitted to Government on 19th November 2015 after 21
months. The Union Cabinet announced its decision to implement the
recommendations on 29th June 2016. Through the press release circulated
to media and the statement of Finance Minister, the Government made a
calculated move to create an impression among the public that the Modi
Government is magnanimous enough to extend big bonanza to the Central
Government employees. Eventhough, immediately after submission of the
7th CPC report, the Joint Council of Action of Central Government
Employees (NJCA) representing Railways, Defence and Confederation
including Postal had submitted a memorandum to Government demanding
modifications of the retrograde recommendations of the 7th CPC, the
Government while announcing its decision, rejected all the demands
raised by the staff side.
The 7th CPC recommended only
Rs.18000/- as minimum pay by arbitrarily modifying and manipulating Dr.
Aykroyd’s Need based minimum wage formula on untenable premises and
incorrect data. The main demand of the NJCA is to re-compute the minimum
wage on the basis of actual commodity prices as on 01.07.2015 and
factor Dr. Aykroyd formula stipulated percentage for housing, social
obligations and children’s education etc. and to revise the fitment
formula and all pay scales on the basis of the so determined minimum
wage. The methodology adopted by 7th CPC is irrational, imaginary and
even absurd.
The Government’s claim that big
increase is given to the employees is totally false. In para 4.2.9 of
the report, the 7th CPC has given a table depicting the percentage of
increase provided by the successive pay commissions appointed after
independence. According to the table, the 2nd CPC has made a paltry
increase of 14.2.% (1960), the 3rd CPC gave a rise of 20.6% (1973), the
4th CPC 27.6% (1986), the 5th CPC 31% (1996) and 6th CPC 54% (2006)
whereas the average increase granted by 7th CPC is only 14.29% (2016),
while the percentage increase had been in ascending order all along, the
7th CPC has sought to reverse that trend. The megre increase
recommended and accepted by the Government without any change is the
worst ever any pay commission has recommended since 1960. In 1960 five
days historic strike of entire Central Government employees took lace
demanding modifications of 2nd CPC recommendations.
Another claim of the Government
is that it has accepted the recommendations of the 7th CPC to increase
the existing salary by 2.57 times !!!. This is a totally misleading
propaganda. The existing basic pay of a lowest level employee of the
Central Government called Multi-Tasking staff (MTS) is 7000 plus 125%
Dearness Allowance as on 01.01.2016. Thus the total salary as on 1st
January 2016 is 7000 + 8750 DA = 15750. The Minimum pay recommended by
7th CPC is 18000 i.e; the actual increase in salary is Rs. 2250/- only
at the lowest level. The fitment factor of 2.57 is worked out excluding
the 125% DA an employee is getting at present. As the next wage revision
takes place only after ten years in 2026, the above increase of 2250/-
in the salary is megre.
In the past, every time, either
before or immediately after the appointment of pay commissions, the
employees are granted DA merger, Last time, before appointment of 6th
CPC, Government has granted merger of 50% DA in 2004 and the merged DA
is treated as Pay for all purposes. This time no DA merger is granted.
Suppose, as in the past, the Government has accepted the demand for
merger of 50% DA as on 01.01.2011 when DA crossed 50%, the total salary
of an employee at the lowest level as on 01.01.2016 will become
Rs.18395/- (7000 + 50% DA 3500 = 10500 + remaining 75% DA as on
01.01.2016 Rs.7875 = 18395). Thus it can be seen that even if no pay
commission is appointed by Government, simply by granting DA merger
alone the lowest level salary will become more than 18000/- which is
recommended by 7th CPC after 21 months study and spending crores of
rupees for its functioning.
The Government’s press release
further claim that the ratio between lowest and highest salary
(compression ratio) is 1:3.12. The highest level employees are Cabinet
Secretary and Secretaries of various departments. The recommended salary
of the Cabinet Secretary is 2,50000. Government deliberately avoided
comparison between salary of lowest employee and highest level employee,
instead compared with middle level Class-I officer only. Actual ratio
between the lowest and highest salary come to 1:14 (18000:2,50000). No
other pay commission has recommended such a huge margin.
Other retrograde recommendations of the 7th CPC are as follows:
1. House Rent Allowance (HRA) rate reduced from 30%, 20% and 10% to 24%, 16% and 8%
2. 52 existing allowances are to be abolished.
3. All interest-free advances including Festival advance, are to be abolished. Only interest bearing advances to be retained.
4. Salary for the second year of Child care leave granted to women employees should be reduced to 80%.
5. For Three Time bound promotions (Assured Carreer Progression) passing examination and other conditions made mandatory.
6. New Pension Scheme (NPS) shall continue, recommended only some cosmetic changes.
7. Contractorisation and casual labour System shall be continued.
8. Outsourcing of Government functions to continue.
9. Employment of retired personnel to be legalized and panel of experienced retired personnel should be kept ready.
10. Filling up of vacancies – commission pointed out that there
are six lakhs unfilled vacancies in Central Government services, but no
recommendations for filling up the vacancies in a time bound manner by
special recruitment.
11. Regularisation of Gramin Dak Sevaks of Postal department – rejected.
12. Increase in minimum pension percentage, Fixed medical Allowance to Pensioners and increment rate – rejected.
Inspite of several round of
country wide agitational programmes conducted by NJCA including massive
Parliament March, the NDA Government refused to negotiate the demands
with the staff side, but declared unilateral implementation of the
recommendations without any modifications. The resentment, anger and
protest of the entire Central Government employees increased day-by-day
and the NJCA decided to go ahead with indefinite strike from 11th July
2016 and preperations and campaigning for making the strike a thundering
success went on in full swing. Modi Government understood that if it
still refuse to discuss with the NJCA then from 11th July 6 AM onwards
the entire Central Government establishments including Railways,
Defence, Postal and other departments. will come to standstill marking
the commencement of the biggest strike action of the Central Government
employees.
It is in this background the
Hon’ble Prime Minister directed three Cabinet Ministers including Home
Minister Shri Rajnath Singh, Finance Minister Shri Arun Jaitly and
Railway Minister Shri. Suresh Prabhu to hold discussion with the NJCA
leaders on 30th January 2016. Major demands in the Charter of demands
were discussed with particular reference to Improvement in Minimum wage
and fitment formula. Issues relating to parity in pension was also
discussed. Finally the Ministers assured that a high level committee
will be appointed to consider the issues raised by the NJCA.
As no written minutes or
communications is forthcoming from the Government regarding the 30th
June discussion and assurances, the NJCA decided to go ahead with the
strike. Country wide demonstrations were held daily in front of all
offices and at all important centres. On 6th July 2016 when the NJCA
meeting was in progress, Hon’ble Home Minister Shri Rajnath Singh again
invited the NCA Leaers for discussion. The Minister reiterated the
earlier assurances and told that Finance Minister will issue a press
statement making the Government stand clear on the demands.
Accordingly, the Government
issued a press statement on 6th July 2016 in which it is stated that –
“The Ministers assured the Union leaders that the issues raised by them
would be considered by a High Level Committee.”
Thus, the unite struggle of the
entire Central Government Employees compelled the unwilling NDA
Government to accept the reality that modification in the 7th CPC
recommendations is a must and before arriving at a final conclusion the
staff side should be given a fair chance to present and discuss the case
with the Government. It was assured that the proposed High Level
Committee to be appointed by the Government shall complete its task
within a time frame.
Advancement in the wages and
service conditions of Central Government Employees can be achieved only
through the united struggle of all Central Government employees for
which the unity built up under the banner of NJCA is to be maintained
and strengthened. Further the neo-liberal policy offensives of the NDA
Government in the Central Government Employees Sector including
privatisation, outsourcing, downsizing, contractorisation,
corporatization, winding up of departments, New Pension Scheme etc. can
only be resisted and reverted by building up united movement of the
entire employees. Eventhough the strike is deferred, the Central
Government employees shall continue its united struggle against the
anti-people and anti-labour policies of the NDA Government. We should
self-critically analyze the strength and weakness of the NJCA and shall
arrive at proper conclusion for taking corrective measures, if
necessary, and also for further unity and advancement. The final outcome
of the united struggle is, no doubt, one step forward.
Source : http://confederationhq.blogspot.in/
