Submitted a memorandum for correcting the negative and unwanted recommendations of 7th CPC -BPEF

Submitted a memorandum for correcting the negative and unwanted recommendations of 7th CPC -BPEF

BHARATIYA POSTAL EMPLOYEES FEDERATION
BPEF & GENC ( Affiliated to BMS)

MEMORANDUM

GENC/7th C.P.C./Examination/ Recommendation /2015

Dated: 10-12-2015

To
Shri Jitender Singh Ji
Hon’ble Minister of MOS
Ministry of Personnel Public Grievances & Pension
Govt. of India
New Delhi – 110 001

Sub: Suggestion over various negative recommendations of 7th C.P.C. to Govt of India for correction of the same to the advantage of Employees and for the sake of constitutional provisions. –regarding..

Respected Sir,

The Government Employees National Confederation studied the report containing the recommendations of Seventh Central Pay Commission and observed that although there are some positive recommendation in it but also there are several instances came to notice the sprit and promises made by Chairman Shri A.K. Mathur as mentioned in para 1.29 that Govt. services are not merely only contract but is a status and employees expect fair treatment from the Govt. are not reflected in the recommendations properly. Some recommendations are negative to extent that they went against the constitutional rights of the employees. Few of them are :

(1) It tried to rationalize the Pay structure by devising “Index of Rationalization “but ended with several unwanted discrepancies.

(2) It is the fact that the Allowances were allowed by Departments as per their operational & administrative needs, but 7th C.P.C. on its own initiative has declared them “outlived their utility “and recommended for their discontinuance.

(3) Vide para 1.17 it expresses its views that status in society due to becoming a Govt. employee cannot be monetized. The commission has erred in considering the fact that the status requires money to maintain it. It wrongly computed consumption units of a normative family as per present policies towards women, Children and senior parents and, therefore, could not arrive at correct minimum salary demanded.

(4) It says that the concept of Grade Pay and pay Band has been done away and all grade pay at all levels has been subsumed into the pay matrix but has also done away with the promotional benefit of difference of Grade pay provided earlier on promotion and restricted itself to recommend only 3% increment on promotion.

(5) Vide para 9.1.1 it remarked that with increased salary packages these advances have lost their relevance and recommended that all 12 interest free advances like Medical, LTC, Cycle etc. should be abolished without considering its validly to the employees, its family and the Govt. policies towards extension of these advances.

(6) By recommending increase in bench mark to “very good” for grant of MACPS benefits and recommending stoppage of further increment for not attaining it depicts criminal action over the employees for his no fault .

G.E.N.C. suggestions

1. Deficiency in PAY MATRIX

Although the intentions and promises made in Para 5.1.1 of 7th CP.C. are “simplification and rationalization” ,the 7th C.P.C. has wrongly taken up the entry pay for each grade pay devised by 6th CPC as the basis of rationalization and a “ index of renationalization” have been formed which is , for PB-I it is 2.57, for PB-2 it is s 2.62 , for PB-3 it is 2.67. It is amazing that at one hand 7th CPC says that the entry pay designed by 6th C.P.C. was disproportionate and on other hand chooses same for future rationalization in the form of recommended pay matrix.

Therefore, the G.E.N.C makes question that how a disproportionate entry pay, after going through process of rationalization through Index of rationalization .

1. Will produce equidistant levels as promised ?
2.  Will produce a judicious and caring horizontal matrix of entry pay of each level containing the exact compensation to Qualification, skill set required as well as increasing roles and responsibilities at each step of level?
3. Will produce Proportionate increase in quantum of pay as promised in para 5.1.19?
4. Will produce Levels, as status determiner as mentioned in para 5.1.18?
5. Will Satisfy holistic approach of 7th pay commission towards salaries allowances and other perquisites of compensation structure at each level as promised in para 1.18.

In view of all above questions, the G.E.N.C. is proposing following modification while devising New pay matrix

(a) The Index of rationalization may be 15% enhancement in each 18 levels starting from G.P. 1800 and moving up to PB-3 onward instead of proposed disproportionate Index of rationalization of 7th C.P.C.

(b) After devising Pay matrix as above, the Post existing is G.P. 1900 may be merged with G.P. 2000 and similarly G.P. of 2400 may be merged with G.P. of 2800 as a provision of rationalization of Grade Pay in General. This method has been recommended by 7th C.P.C. to general commercial cadre existing in Ministry of Railways.

For others level the same method can be adopted , if deemed fit. The GENC has taken up this rationalization up to cadre in which direct recruitment takes place.

2.MINIMUM PAY :

The minimum pay computed by 7th CPC vide Table Annexed to Chapter 4.2 needs careful modification as below.

1. The rates mentioned as par 4.2.8 are taken as per product prices. Here, it is to say that any consumer has to buy the products at retail prizes which are always ahead of these product prizes because of middle man profit , sales tax , VAT etc. which when combined are at least ahead by 12% of product prize.

Therefore, adding 12% of 18000 i.e. 2160 to 18000 makes minimum wage of three consumption unit Rs. 20160. On this basis, the share of one consumption unit comes out to be Rs. 6720

2. Several initiatives from side of Govt. has come forward these years with respect to women, Children & senior parents which are necessary to be included in the consumption unit as given by Doctor aykroyd . They are

(a) Senior Citizen and parents maintenance Act 2010 which provides liability of Mother and Father over employed Sons/Daughters.

(b) Gender bias reflected in ackroyed formula in respect of women employees as well as house wife, mother is not acceptable as per Govt. policy. The provisions of full unit for these dependents are to be included in consumption unit.

(c) Full consumption unit to Children below age 14 has to be made compulsory as the present day Govt. is health sensitive, therefore, we have to consider that the quantity and prizes of commodities used by children is much higher than commodities used by adults.

(d) Dating back to First CPC the lowest entering Govt. employee was mere 5th pass but as per the recommendations of 6th CPC, accepted by Govt., the lowest employee being inducted into Govt. service is 10th pass. Therefore mental labour of this skilled employee has also to be considered and monetized.

By computing all factors mentioned in 1 and 2 above following computation from minimum wage comes out

(i) 20160 minimum wage arrived at 1 above divided by 3 makes Rs. 6720 as full unit consumption.

(ii) Employee, wife, two Children below 14, Mother, & Father makes 6 consumption unit of newly recruited MTS in the Govt. sector.

(iii) Therefore, as per (i) & (II), Rs. 6720 X6 equals to Rs. 40320

(iv) 25% of 6720 i.e. 1680 being mental labour for 10th pass MTS, has to be added to Rs. 40320 above .

(v) Therefore , Rs. 40320 + Rs.1680 equal to Rs. 42000 as minimum wage.

The Govt. may also consider and arrive at the minimum wage on the basis of NET NATIONALPER CAPITA INCOME (neutralized inflation ) data of CSO ( Central statistical organization ) which is Rs. 6175 per consumption unit.

However, keeping in view the paying capacity of employees and economic situation of newly developing country of India, the GENC is proposing Rs. 24000 as minimum wage to a newly recruited employee.

3. FITMENT BENEFIT : Fitment benefit provided by the 7th C.P.C. is 2.57 which is 14.29 % more than 2.25. equivalent to the fitment benefit provided by 2nd CPC .

The GENC, therefore, demands that it should not be less than 51% of 2.25 as provided by 6th CPC. Which comes out to be 3.42.

4. INCREMENT AT THE TIME OF PROMOTION :

The GENC intends to remind you that the employees are getting only 3% replacement benefit in new pay Matrix on promotion. Previously the employees were getting 3% benefit along with difference of grade pay on promotion.

Therefore, we suggest that:-

(i)On each promotion, one extra increment in that promotional level may be provided. OR
(ii)The pay in new pay matrix may be fixed by providing one extra increment in the concerned level.

5. ANNUAL INCREMENT RATE : The Annual increment Rate provided by previous C.P.C. were calculated when pay scale system was prevalent and age for full pension was 33 years. In worst cases an employees with 3% increment Rate can reach to maximum from minimum in 33 years.

The 6th CPC has also endorsed the concept of 3% annual increment in pay band system but has suggested full pension in 20 years . This recommendation was later on accepted by Govt. and revision in pension rules were made accordingly.

Now it was turn of 7th CPC to take into account above facts and, therefore, would have devised annual increment of 5% considering that the employee in new pay matrix will reach in 20 Years for full pension benefit . Unfortunately this has not been done.

Therefore, in order to have coordination between previous and present criterion for providing increment on the basis of pension computation, the 5% annual increment rate may be considered to devises new pay Matrix.

6. Date of Annual Increment:- With present formula that each employee completing 6 months in a year will get increment, on 1st July. The concept of 1st July of year is not adequate for those entering in the service in any month between January and June & for those retiring any of the month of the year. Therefore, the GENC proposes that both type of above employees may be provided one increment irrespective of date of entry or date of retirement. Similarly, two dates i.e. 1st January or 1st July can be made for assessing and providing annual increment.

7.With holding of Annual increment to Non performer after 20 years – increase in MACPS benchmark and introducing efficiency Bar. Vide para 5.1.46 “there is a vide spread perception that increment as well as upward movement in the hierarchy happens as a matter of course. Also, grant of MACP is taken for granted. “

These lines are totally against the promises of Shri A.K Mathur Chairman 7th CPC quoting apex court judgement in para 1.29 “ it should always born in mind that legitimate aspirations of an employee are not gullitoned and a situation is not created where hopes ends in despair. Hope for everyone is gloriously precious and that a model employer should not convert it to be deceitful and treacherous by playing a game of chess with their seniority also vide para 1.30 it quotes that the employee should not be thought as criminal and unnecessary suspicion should not be made about him.

On availability of such sprit and promises, the bench mark “ Very good” should not be taken in a way that “average” and “good “remark are criminal activities and without any disciplinary proceeding their annual increment can be withheld. Similarly these remarks cannot declare employee a non performer. The GENC, therefore, request that the para 5.1.45 pertaining to MACPS & para 5.1.46 pertaining to efficiency Bar may not be considered for implementations. .

8.MACPS : (1) The 7th CPC has compiled the key demands received by it and quoted regarding MACPS demand in 5.1.12 (e) that the MACPS providing benefits in grade pay hierarchy, was giving in adequate benefit after long gap of 10, 20 & 30 Years and demanded that, it should be provided in promotional hierarchy instead of grade pay hierarchy. Similarly, the demand for increase in the frequency of administering MACP has also came for consideration. .

In view of all above, the 7th C.P.C. restricted itself to recommend that the frequency of MACP will remain 10, 20 & 30 years but in process to provide adequate MACPS benefits , it recommended , that it will be provided in immediate next level in the hierarchy.

The GENC is trying to analyze the words immediate next level in the hierarchy and concludes that it should simply mean the immediate next level in the hierarchy existing in the department.

After going through entire recommendation it has been observed that the word hierarchy was used for hierarchy existing in the department or a cadre. In case the meaning of immediate next level in the hierarchy is level hierarchy then It can be said that 7th CPC has not done there any modification in the MACPS scheme and it only tried by deceitful and treacherous method to take away the benefit as promised.

Therefore, the GENC strongly demand that the word immediate next level in the hierarchy may be made clearer so that it may mean immediate next level in the cadre / promotional hierarchy.

(2) Similarly, recommendation of stepping up has been made by 7th CPC in its para 11.40.82 in respect of Railway Accounts for MACPS anomalies.

Therefore the GENC strongly demand that the stepping up of pay of senior for MACPS anomalies with Junior to all seniors drawing lesser pay than junior in entire Central Govt. Employees may be made. It is to remind that MACPS scheme is common to all and is not restricted to any cadre or Department.

9.House Rent Allowance: The factor of 0.8 has been introduced illogically and without any justification. This factor should be removed & H.R.A. should be to restored on the basis of Metro and Non metro classification of cities only with percentage 40 & 30 respectively .

10.CGEIS Benefit : Many banks especially corporation Bank of India is providing Insurance cover on natural death over salary account to the tune of 10 to 20 Lacks . Therefore, it is not advisable to increase the Insurance Benefit heavily and also its premium.

If saving fund is the basis of this increase in CGEIS premium then all New entrant may be allowed for G.P.F. contributions.

11. Child Care leave: This leave for all two years may be granted with full salary. Its benefit should also be extended to Male employees.

12.Medical Advances : As the terms of Children Education Allowance and Traveling Allowance were made easier , the terms of Medical Advance may also be made easier and advances up to 1 lacs amount should be allowed to be sanctioned by the Head of the office instead present 10 thousand ceiling.

13. Leave Travel Concession:- should be allowed exactly on same terms as it is presently. It is to remined that the facilities was devised to boost up the tourism Industry and also to get relief to the employees and its family from getting tired due to routine work.

14. Bonus: Bonus in all forms may be continued as it is considered as deferred wage.

15. Income Tax issues: Present limit of income tax may be enhanced to 2.57 times . All allowances of Central Govt. employees may be kept out from preview of Income tax. The Pension amount should be exempted from tax .Death cum retirement gratuity should be exempted form income tax.

16. Fitment benefits of to decide quantum of minimum pension: should be equal to minimum wage and fitment benefit of 2.57 may be increased to 3.

17. Allowances: All Allowances were devised as per requirement of existing Govt. policies and conditions of service in the Department. Therefore, any decision taken abruptly is certainly going to produce unrest. The GENC quotes certain allowances that are certainly to be restored and instead its rate should also be enhanced and rationalized.

Assisting Cashier Allowance , Caretaking Allowance , Family planning Allowance , FMC, Funeral Allowance, Ghat Allowance , Handicapped Allowance, Head quarter Allowance, Kit Maintenance Allowance., ,Over times Allowance, Rent free Accommodation, Risk Allowance , Training stipend , Treasurer Allowance Washing allowance , Cash Handling Allowance ., Cycle Allowance etc.

18.Compassionate Appointment: Ceiling of 5% over DR vacancies imposed over Central Govt. employees at the time of compassionate appointment may be removed and it may be made 100%

19. Gramin Dak Sewak: GENC demands that Negative recommendation of 7th C.P.C. to treat GDS a non Govt. employees to the extent that their salary may be separated from salary other regular employees being drawn from consolidated fund of India may be expunge out from recommendation of 7th C.P.C. as Department of Posts has already constituted a GDS committee to look into to all service condition and employment matters in entirety.

20. New Pension Scheme: It is to emphasis that Article 366 (17) defines Pension. On its basis AIR 1983 SC 130 held that Pension is not an exgratia payment but it is payment of past services rendered. Similarly, Supreme Court reiterated that pension is not a bounty of state. It is earned by the employees for services rendered to fall back upon after retirement. It is attached to the office it cannot be arbitrarily denied.

In a judgement in U.O.I. & others (1990) 4 SSC 207) – It was never held that both the pension retiree and PF release form a homogeneous class and that any further classification among them would be voilative of Article -14.

The 7th CPC held that under the pension scheme, the Govt. obligation begins on his retirement and then continuous till the death of employees. In Para 10.1.64 the 7th CPC quotes there is clear evidence that Govt. has progressively moved towards liberalized regime for past pensioners. The 6th CPC has provided additional pension and 7th CPC has provided one Rank one pension.

Unfortunately no promise has been made by the 7th CPC. But vide para 10.3.3 it quotes that the commission notes that the NPS is the culmination of a series of social securities and pension related reforms initiatives in India . At present OASIS has concluded that instead of defined benefit scheme for pension , the defined contribution scheme should be introduced. In NPS 40% of accumulated wealth is invested for pension purpose and 60% is paid at the time of retirement. NPS is not covered in GPF. On the death of employee 80% wealth is utilized for purchase of annuity and 20% is paid to legal heir.

7th C.P.C. Vide para 10.3. clearly speaks that uncertainty over the NPS scheme should be removed. Therefore the BPEF suggest that

1.The quantum of pension should be made equivalent to old pension scheme and this decision may be notified along with 7th C.P.C. recommendations.

2.The amount of gratuity for NPS should be made equal to old pension.

3.Family pension & other benefit to the NPS employees should be declared along with 7th CPC recommendations.

With regards and hopes for positive correction

Yours sincerely

Sd/-
( Sadhu Singh )

Source: bpefsg.blogspot.in