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. Even though, immediately after submission of the 7th
CPC report, the Joint Council of Action of Central Government Employees (NJCA)
representing Railways, Defence and Confederation of Central Government
Employees & Workers in which all other Federations and All India
Associations of Central Government are
affiliated, 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 place 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) or equivalent 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 Career 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.
In spite 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 preparations and
campaigning for making the strike a thundering success went on in full swing.
Modi Government understood that if it still refuses 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 were 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 Leaders
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. Even though 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.
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