Pre-Budget Consultation with Finance Minister
Central Trade Unions demanded directional change of economic
policies
We demand Govt to ensure ‘Ease of life
and livelihood of the common people”, “not merely ease of doing business”—the
central trade unions asserted in the prebudget consultation meeting with
Finance Minister on 17th January 2015.
All the eleven central trade unions
submitted joint memorandum which basically underlined trade unions’ view and
proposals for directional change in the pro-corporate pro-big-business economic
policy regime which landed the country’s economy into a mess in the process of
last few decades. They spoke on one voice on the disastrous consequences even
during the period under the new government at the centre, of such pro-corporate
economic policy regime on the declining standard of living of the common people and also on employment
generation, downslide in wages, mass scale contractorisation etc.
The leaders reminded the Finance Minister that in the
same pre-budget consultation meeting held on 6TH June 2014, trade
unions urged upon reversal of the economic
policies followed by the UPA government which according to Finance
Minister himself, landed the country’s economy in the mess. He has many times
made such comment both inside and outside Parliament. But in the process of last eight months it
became clear that his government has been pursuing the same brand of policies
more aggressively bulldozing the opinions of the common people, trade unions
and various mass organization and also bulldozing the Parliament through
Ordinance route. He reminded the Minister that the Govt felt it emergency in
promulgating Ordinances for denationalization of the coal industry, for
tampering the Land Acquisition Act for the benefit of big corporates and
land-mafias, But no emergency was felt for implementing the consensus
tripartite recommendations of successive Indian Labour Conferences for enhancing minimum wage to Rs 15000/- or
giving the anganwadi, mid-day-meal, ASHA
and other scheme workers the right of minimum wage and social security
benefit or ensuring same wage as regular workers for the contract workers for
doing the same work. And while neglecting these issues involving millions of
working people, slogans are being chanted “sabka saath –sabka vikash” in the
media particularly when in the span of last two years including eight months of
NDA rule, wage level in rural India has
taken a drastic and dramatic plunge. During the same period, MNREGA
expenditures declined by 3 and 36 per cent as per Mid Year Economic Analysis
published by Govt. The same document expressed expectation of same trend of
deceleration of wage to continue. Side by side, the urban wage-level is being
suppressed to the level of hardly 2.5%
of the total cost of production on the average. This is quite natural since the
Government is busy in promoting “ease of doing business” complementary to which
creating severe un-ease and miseries in the lives and living of the working
people.
The trade union leaders cautioned the Government, if these trend continues, the NDA Government’s so called dream of all
round development will remain a mere rhetoric being made by the Minister in
public domain through media to deceive the people –that can never materialize in
the face of aggravating poverty, decline in purchasing power of the common
people and shrinkage of the domestic market making any investment unsustainable
The Government must the direction of its policies reversing its project of
privatization, dismantling labour laws and frittering away natural resources.
Brijesh Upadhyay and Surendran (BMS),
D L Sachdeva (AITUC), S Q Jama(INTUC), Tapan Sen (CITU), R K Sharma (AIUTUC), Shanmugan (LPF)
Monali (SEWA), Ashok Ghosh (UTUC), S P Tewari (TUCC), Santosh Roy (AICCTU), S D
Tyagi (HMS)were among the trade union leaders present in the meeting.
CENTRAL TRADE UNIONS’ JOINT MEMORANDUM TO FINANCE MINISTER
17th
January 2015
The Hon’ble Minister of Finance,
Govt. of India,
North Block,
New
Delhi
Dear Sir,
We
thank you for inviting the central trade unions representing the working people
in the country in both organized and unorganized sector for this pre-budget
consultation.
In
the previous pre-budget consultation meeting with you held on 6th
June 2014, we urged upon you to please consider a directional change in the
economic policy regime from that pursued during the previous government which,
you have also admitted, had landed the country’s economy in a bad situation. In
fact, we had articulated our views and proposals on that premise. But we like
to submit candidly that our proposals did not receive a positive response and
the economic policies followed the same trajectory and made situation worse for
the mass of the people during the intervening period.
Sir,
the Mid Term Economic Analysis (2014-15) by Govt of India itself admitted that
for the period under review despite increase in GDP growth rate, and a much
bigger increase in profit of the corporate sector and big business lobby, the
wages for the working people who actually create the GDP in both rural and
urban areas plunged on the average. Overall standard of living of people
deteriorated and unemployment situation in the country has not improved in the
least. Much more jobs were lost owing to closure/lockout, retrenchment than
created during the intervening period. And in the midst of such situation, the
Govt has already decided to cut already budgeted expenditure in the social
sector such as MNREGA, Health, Education etc which we strongly deplore. Such a phenomenon warranted serious
reconsideration on directional change in the economic policy regime and we
again urge you for the same.
We express
our serious concern and dismay over the manner the Govt have been pushing
various major economic policy related decisions through promulgation of
Ordinances. At least eight Ordinances were promulgated during last eight months
of the new Govt. We record our determined opposition to such practice of
Ordinance route of governance. In particular we also oppose the Ordinance on coal
sector, insurance sector and on Land Acquisition Act and want you to please
take note of the rousing opposition and struggles by the workers and the
farmers against such disastrous exercises. We demand all such Ordinances should
be withdrawn forthwith.
We
wish that our candid observations, considered views and concrete proposals are
taken in the right spirit and responded with all seriousness and given
appropriate reflections in the ensuing budget 2014-15.
Our proposals:
Some of these specific proposals have
time and again been placed by us in various policy making fora including the
earlier pre-budget consultations. However, we would like to reiterate them,
urging your positive response:
1. Take effective measures to arrest the
spiraling price rise and to contain inflation; Ban speculative forward trading
in commodities; Universalise and strengthen the Public Distribution System;
Ensure proper check on hoarding; Rationalise, with a view to reduce the burden
on people, the tax/duty/cess on petroleum products.
2. There must be massive investment in the
infrastructure in order to stimulate the economy for job creation. The Mid Term Economic Analysis(2014-15)
published by Govt of India has clearly mentioned about the failure of the PPP
experiments in infrastructure development and opined for public investment.
It is our considered view that the Public sector should take the leading role
in this regard. The plan & non-plan expenditure should be increased in the
budget to stimulate jobs creation and guarantee consistent income to people.
3. Minimum wage linked to Consumer Price Index must be
guaranteed to all workers, taking into consideration the recommendations of the 15th Indian Labour Conference as enriched by
Apex Court of the country as reiterated in 44th ILC in 2012. In any
case, it should not be less than Rs.15,000/- p.m.
4. FDI should not be allowed in crucial
sectors like defence production, telecommunications, Railways, financial
sector, retail trade, education, health and media.
5. The public sector units played a crucial role during the year of
severe contraction of private capital investment immediately following the
outbreak of global financial crisis. PSUs should be strengthened and expanded.
Disinvestment of shares of profit making public sector units should be stopped
forthwith. Budgetary support should be given for
revival of potentially viable Sick CPSUs
6. In view of huge job losses
and mounting unemployment problem, the ban on recruitment in Govt. deptts, PSUs
and autonomous institutions (including recent Finance Ministry’s instruction to
abolish those posts not filled for one year) should be lifted as recommended by
43rd Session of Indian Labour Conference. Condition of surrender of
posts in govt. departments and PSUs should be scrapped and new posts be created
keeping in view the new work and increased workload.
7. Proper allocation of
funds be made for interim relief of 20% and 100% DA merge with basic pay and
allowances including neutralization percentage be paid on merged DA in view of
7th CPC to all Govt. employees. Similarly, 100% DA of PSU employees
be also merged with basic pay.
8. The scope of MGNREGA be extended to
agriculture operations and urban areas as well and employment for minimum
period of 200 days with guaranteed statutory wage be provided, as unanimously
recommended by 43rd Session of Indian Labour Conference. The drastic
cut already inflicted on the MNREGA allocation should be restored.
9. The massive workforce engaged in ICDS,
Mid-day meal scheme, Vidya volunteers, Guest Teachers, Siksha Mitra, the
workers engaged in the Accredited Social Health Activities (ASHA) and other
schemes be regularized. No to privatization of centrally funded schemes.
Universalisation of ICDS be done as per Supreme Court directions by making
adequate budgetary allocations.
10. Steps be taken for removal of all
restrictive provisions based on poverty line in respect of eligibility coverage
of the schemes under the Unorganised Workers Social Security Act 2008 and
allocation of adequate resources for the National Fund for Unorganised Workers
to provide for Social Security to all unorganized workers including the
contract/casual and migrant workers in line with the recommendations of
Parliamentary Standing Committee on Labour and also the 43rd Session
of Indian Labour Conference.
11. Remunerative Prices should be ensured
for the agricultural produce and Govt. investment public investment in
agriculture sector must be substantially augmented as a proportion of GDP and
total budgetary expenditure. It should also be ensured that benefits of the
increase reach the small, marginal and medium cultivators only;
12. Budgetary provision should be made for
providing essential services including housing, public transport, sanitation,
water, schools, crèche health care etc. to workers in the new emerging
industrial areas. Working women’s hostels should be set up where there is a
concentration of women workers.
13. Requisite budgetary support for
addressing crisis in traditional sectors like Jute, Textiles, Plantation,
Handloom, Carpet and Coir etc.
14. Budgetary provision for elementary
education should be increased, particularly in the context of the
implementation of the ‘Right to Education’ as this is the most effective tool
to combat child labour.
15. The system of computation of Consumer Price Index should be
reviewed as the present index is causing heavy financial loss to the workers.
16. Income Tax exemption
ceiling for the salaried persons should be raised to Rs.5 lakh per annum and
fringe benefits like housing, medical and educational facilities and running
allowances, Railways Running Staff and a staff in other deptts should be
exempted from the income tax net in totality.
17. Threshold limit of 20 employees in EPF Scheme be brought down to
10 as recommended by CBT-EPF. Pension benefits under EPS unilaterally withdrawn
by the Govt. should be restored. Govt. and Employers contribution be increased
to allow sustainability of Employees Pension Scheme and for provision of
minimum pension of Rs.3000/- p.m.
18. New Pension Scheme
be withdrawn and newly recruited employees of central and state govts on or
after 1.1.2004 be covered under Old Pension Scheme;
19. Demand for Dearness
Allowance merger by Central Govt. and PSUs employees be accepted and adequate
allocation of fund for this be made in the budget;
20. All interests and social security of the domestic workers to be
statutorily protected on the lines of the ILO Convention on domestic workers.
21. The Cess Management of the construction workers is the
responsibility of the Finance Ministry under the Act and the several irregularities
found in collection of cess be rectified as well as their proper utilization
must be ensured.
In regard to resource mobilization, we
would like to emphasize the following:
A. A progressive taxation system should be
put in place to ensure taxing the rich and the affluent sections who have the
capacity to pay at a higher degree. The corporate service sector, traders,
wholesale business, private hospitals and institutions etc. should be brought
under broader and higher tax net. Increase taxes on luxury goods and reduce
indirect taxes on essential commodities as at present the overwhelming majority
of the populations are subjected to Indirect taxes that constitute 86% of the
revenue.
B. Concrete steps must be taken to recover
huge accumulated unpaid tax arrears which has already crossed more than Rs.5
lakh crore on direct and corporate tax account alone, and has been increasing
at a geometric proportion. Such huge tax-evasion over and above the liberal tax
concessions already given in the last two budgets should not be allowed to
continue.
C. The SIT constituted for unearthing
black money must deliver visible result which is yet to be seen. Effective
measures should be taken to unearth huge accumulation of black money in the
economy including the huge unaccounted money in tax heavens abroad and within
the country. Finance Minister should make provisions to bring back the illicit
flows from India which are at present more than twice the current external debt
of US $ 230 billion. This money should be directed towards providing social
security.
D Concrete measures be expedited for
recovering the NPAs of the banking system which is on the increasing trend
again from the willfully defaulting corporate and business houses. By making
provision in Banking Regulations Act, CMDs and Executives to be made
accountable for creation of NPAs.
E. Tax on Long term capital gains to be
introduced; so also higher taxes on the security transactions to be levied.
F. The rate of wealth tax, corporate tax,
gift tax etc. to be expanded and enhanced.
G. ITES, outsourcing sector, Educational
Institutions and Health Services etc. run on commercial basis should be brought
under Service Tax net. Govt.
H. Small saving instruments under postal
and other agencies be encouraged by incentivizing commission agents of these scheme
OUR SERIOUS CONCERN:
We
would like to express our strong resentment that the previous Govt. failed to
positively respond to the collective voice of the Central Trade Unions on the
very important issues concerning the working people of India, both organized
and unorganized, consistently repeated in the form of a ‘10 point charter’
backed by several collective nationwide programmes. We expect that this Govt.
will take initiative to discuss these issues with the Central Trade Unions in order
to find a solution.
We
also express our opposition to the so called Banking Reforms encouraging
private sector/capitalists banking at the cost of public sector banks which
saved the economy to an extent during the last global financial meltdown. We also
oppose increase in limit of FDI and disinvestment of equity in insurance sector
and FDI in pension. We strongly oppose the FDI in Defence and Retail Sector.
Several such measures against the working men and women in this country
including anti workers proposals contained in the New Manufacturing Policy have
our strong opposition, as in our experience these kinds of measures have helped
the growth of only a small section of the capitalists while the larger sections
of the working population continue to be marginalized and impoverished.
We also oppose the hectic measures of
changing labour laws in the name of labour reform both by the central and the
state governments which are basically aimed at legitimizing ongoing widespread
violations by the employers’ class and also throw out overwhelming majority of
the workforce of the purview of the labour laws themselves at the total mercy
of the employers.
POST BUDGET MEETING WITH TRADE UNIONS
Successive
Finance Ministers have agreed to hold post budget meetings/ consultations with
the central trade unions. However, it has not been materialized except for one
occasion. We understand such meetings did take place with the Corporate
Associations/Employers Federations. We would like to importunate upon you to arrange
such post budget meeting with trade unions also.
With
regards,
Yours sincerely,
BrijeshUpadhyay S Q Jama
D L Sachdeva HarbhajanSinghSidhu Tapan
Sen
BMS INTUC AITUC HMS CITU
R K Sharma S P Tewari Monali
Santosh Roy Ashok Ghosh Shanmugan
AIUTUC TUCC SEWA AICCTU UTUC LPF