Corporatisation of Ordnance Factory Board: Ministry of Defence

Consequent to the decision of the Government to convert Ordnance Factory Board (OFB), a subordinate office of Ministry of Defence (MoD) into one or more than one 100 per cent Government owned corporate entities, the Government has constituted an Empowered Group of Ministers (EGoM), under the Chairmanship of Raksha Mantri Shri Rajnath Singh, to oversee and guide the entire process, including transition support and redeployment plan of employees while safeguarding their wages and retirement benefits. Other ministers in the EGoM are Home Minister Shri Amit Shah, Finance Minister Smt Nirmala Sitharaman, Minister for Law & justice Shri Ravi Shankar Prasad, Minister of State for Labour & Employment Shri Santosh Kumar Gangwar and Minister of State for Personnel, Public Grievance & Pension Dr Jitendra Singh.

Also check: Ordnance Factory Board (OFB) has designated 285 beds for isolation wards in handling Coronavirus (COVID-19) cases

The Terms of Reference (ToR) of the EGoM inter alia include:

(1) Decision on conversion of OFB into a single Defence Public Sector Undertaking (DPSU) or as multiple DPSUs;

(2) Matters related to various categories of employees including protection of their salary and pension of existing employees;

(3) Financial support that may be provided to the entity/entities to make them economically viable and self-reliant;

(4) Grandfathering of orders already being executed by OFB or for which facilities created in OFB;

(5) Treatment for land assets of OFB.

The composition of EGoM along with ToRs have been communicated to the OFB and various Federations, Unions and Associations at Board/ Factory/Unit level and they have been requested to place all their suggestions, issues and concerns relating to corporatisation of OFB before the EGoM.

The Department has also selected M/s KPMG Advisory Services Pvt. Ltd. (Lead Consortium Member) with M/s Khaitan& Co. Ltd. as another Consortium Member, as the Consultancy Agency for providing strategic and implementation management consulting services to assist the Department of Defence Production in the process of corporatisation of the OFB

Source: PIB

The post Corporatisation of OFB Ordnance Factory Board – MoD appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Joint Circular No. : 50/2020

Date : 01.09.2020

To,

All the affiliated Unions of
AIDEF, INDWF, BPMS

Demands for the one day strike and one week action programme by the Unions of MES, DRDO, DGQA, DGAQA, EME, NAVY, DRDO, AOC and IAF

Even though there are many issues agitating the minds of the Defence Civilian employees of the above Directorates, we have identified the following important demands of each of the Directorates to be placed as Charter of Demand for the one day strike on 19/10/2020 and for the one week protest programme from 07/09/2020 to 11/09/2020. The demands are to be enclosed with the Strike Notice.

DEMANDS OF MES EMPLOYEES

1) Withdrawal of unwarranted and arbitrary decisions of abolition of 9304 posts of MES.
2) Withdrawal of arbitrary application of APARs for Industrial Employees of MES.
3) Scrap NPS and reintroduce Pension Scheme under CCS(Pension) Rules 1972.
4) Grant of skilled pay scale to Valveman.
5) Merger of isolated posts of Lift Operator of MES with FGM.
6) Grant of Cadre structure to Meter Reader of MES on par with Workshop staff.
7) Grant of 4 grade structure to MTS of MES.
8) Review of posting/transfer policy of MES as per the suggestions put forth by the Federations.
9) Arbitrary framing of Recruitment Rules and Cadre Restructuring proposals etc. should be discontinued and all these major policy matters should be discussed with the Recognised Federations before finalisation.
10) All DPCs/Screening committee should be conducted timely, so as to ensure that Promotions/MACP are granted to the employees on due date.
11) Recruitment qualification for MTS should be either Matriculation or ITI and not both.
12) To ensure effective and periodical functioning of Army HQ JCM III Level council and the Additional Meeting Mechanism chaired by the JS(Works).
13) To provide Medical treatment to the Civilian Employees and the Dependents in the Military/ Command Hospitals.
14) To extend support and solidarity to the striking workers of Ordnance Factories against Corporatisation of OFB.

DEMANDS OF NAVY

1) Withdrawal of unwarranted and arbitrary decisions of abolition of 7485 posts of Navy.
2) Stop outsourcing of permanent and perennial nature of jobs.
3) Fill up all the vacant Civilian posts in the Navy immediately.
4) Scrap NPS and reintroduce Pension Scheme under CCS(Pension) Rules 1972.
5) Settle all the pending Cadre Restructuring proposals.
6) Grant of Compassionate appointments in a time bound manner without further delay.
7) All DPCs/ Screening committee should be conducted timely, so as to ensure Promotions/ MACP are granted to the employees on due date.
8) Immediate absorption of Ex-Apprentices of Navy under 60 : 40 Ratio.
9) Recruitment qualification for MTS should be either Matriculation or TI and not both.
10) Implementation of cadre restructuring of Ammunition Mechanic at the earliest with One Time Relaxation.
11) Arbitrary framing of Recruitment Rules, Cadre Restructuring, Transfer policy etc. should be dispensed with and all major policy matters should be finalised only in consultation with the Recognised Federations.
12) CGHS facilities to be extended to Defence Civilian employees of left out Units of Navy Mumbai.
13) Immediate allotment of GPRA Accommodation to the employees of Naval Dockyard Mumbai.
14) To ensure effective and periodical functioning of Navy HQ JCM III Level council and the Additional Meeting Mechanism chaired by the JS( Navy).
15) To provide Medical treatment to the Civilian Employees and the Dependants in the Navy/ Command Hospitals.
16) To extend support and solidarity to the striking workers of Ordnance Factories against Corporatisation of OFB.

DEMANDS OF DGQA

1) No restructuring of DGQA which affects the Organisation and its employees.
2) Convening of DPC for Promotion to the post of OS to AO, AO to SAO-II, SAO-II to SAO-I, SSS to SO and Senior Draughtsman to JTO(D).
3) Framing of SRO in respect of IEs and JEs as proposed by the JCM Sub-committee of DGQA.
4) Implementation of the Homogenous working hours and Overtime as approved by the DGQA.
5) Filling up of all the Civilian Posts which are lying vacant in DGQA Establishments.
6) Compassionate Transfer applications may be considered sympathetically by giving due consideration to their difficulties, such as Medical problems etc.
7) To ensure effective functioning of JCMIV level Council.
8) Scrap NPS and reintroduce Pension Scheme under CCS(Pension) Rules 1972
9) Payment of HRA to the employees without insisting on NAC at par with Ordnance Factory Employees.
10) To ensure effective and periodical functioning of DGQA HQ JCM III Level council and the Additional Meeting Mechanism chaired by the JS(LS)
11) To constitute a unified QA Agency under the Ministry of Defence.
12) To provide Medical treatment to the Civilian Employees and the Dependants in the Military/Command Hospitals.
13) To extend support and solidarity to the striking workers of Ordnance Factories against Corporatisation of OFB.

DEMANDS OF DRDO

1) Stop Revamping of DRDO labs and against the move of the Government to Corportaise PXE, Balasore and closure of many DRDO labs.
2) Stop FDI and 100% privatisation and stop entrusting 108 design and development project works of DRDO to private Industries.
3) Immediately comprehensive review of DRDO DRTC rules as per agreement reached with Federations on 13/02/2016.
4) Immediately finalise and implement Cadre Review of Admin, Stores, Steno, Accounts, Security, fire/FED, Vehicle Operator, Hindi Staff, paramedical, Canteen Staff and MTS categories.
5) Scrap NPS and reintroduce Pension Scheme under CCS(Pension) Rules 1972
6) Immediately hold review DPCs in respect of Admin and Allied categories to fill up all the existing vacancies.
7) Immediately conduct LDCE to fill up entry level vacancies of Admin & Allied categories among MTS cadre.
8) Immediately pay 20% PRIS to DRDO employees at par with DAE/DOS(ISRO) by ending discrimination.
9) Stop amendments Labour Laws and stop removal of DRDO from the definition of ‘Industry” from the IR Code 2019 Bill introduced in the Parliament
10) Restore ID Act to SBC and extend DRDO DRTC Rules to DRDO-ATVP SBC Cadre, Visakhapatnam.
11) To ensure effective and periodical functioning of DRDO HQ JCM III Level council and the Additional Meeting Mechanism chaired by the DG(HR)
12) Fill up all the existing vacancies and regularise the services of very large number of Casual/Contract/ Consolidate workers working in DRDO for years together.
13) Immediately settle LTC-80 (2013-14) package availed by the DRDO Employees as one time measure as per DOP&T Orders and remove physical, mental and financial tensions of effected staff.
14) To provide Medical treatment to the Civilian Employees and the Dependants in the Military/ Command Hospitals.
15) To extend support and solidarity to the striking workers of Ordnance Factories against Corporatisation of OFB.

DEMANDS OF EME

1) No GOCO Model in Army Base Workshops.
2) No Privatisation of spares/ Assemblies in EME Workshops.
3) Fill up all the vacant Civilian Posts.
4) Framing of Recruitment Rules and Cadre Restructuring of all category of employees in consultation with Recognised Federations.
5) Arbitrary decisions such as framing of RR, conversion of the Cadres into Centrally controlled etc., should be dispensed with and the issues on policy matters should be discussed with the Federations before finalising such policies.
6) Filling up of vacancies in MCM which is pending from 2005 onwards.
7) Scrap NPS and reintroduce Pension Scheme under CCS(Pension) Rules 1972.
8) To ensure effective and periodical functioning of Army HQ JCM III Level council and the Additional Meeting Mechanism chaired by the JS(O).
9) No displacement / transfer of employees from the existing workshops, no reversion in their grade and pay should be ensured as assured by the JS (Army) in the meeting held with the Federations on 9-3-2018.
10) To extend support and solidarity to the striking workers of Ordnance Factories against Corporatisation of OFB.

DEMANDS OF AOC

1. No closure of any Depots under AOC.
2. No GOCO model in COD Kanpur and other Depots.
3. Arbitrary decisions such as framing of RR, conversion of the Cadres into Centrally controlled etc., should be dispensed with and the issues on policy matter should be discussed with the Federations before finalising such policies.
4. Recruitment Rules after 7th CPC should be finalised in consultation with the Federations.
5. All the civilian posts lying vacant should be filled up immediately.
6. Scrap NPS and reintroduce Pension Scheme under CCS(Pension) Rules 1972.
7. Finalise and implement all cadre restructuring proposals of Industrial and Non Industrial Personnel.
8. To ensure effective and periodical functioning of Army HQ JCM III level Council and the Additional Meeting Mechanism chaired by the JS(O).
9. To provide Medical treatment to the Civilian Employees and the Dependants in the Military /Command Hospitals.
10. To extend support and solidarity to the striking workers of Ordnance Factories against Corporatisation of OFB.

DEMANDS OF AIR FORCE

1. Filling up of all Civilian posts lying vacant in the Air Force units.
2. Immediate approval of all the pending cadre restructuring proposals.
3. Scrap NPS and reintroduce Pension Scheme under CCS(Pension) Rules 1972.
4. To ensure effective and periodical functioning of Air HQ JCM III level council and the Additional Meeting Mechanism chaired by the JS(Air).
5. To provide Medical treatment to the Civilian Employees and the Dependants in the Airforce/Command Hospitals.
6. To extend support and solidarity to the striking workers of Ordnance Factories against Corporatisation of OFB.

DEMANDS OF DGAQA

1. Fill up all the civilian posts lying vacant.
2. Implement all the pending cadre restructuring proposals.
3. Scrap NPS and reintroduce Pension Scheme under CCS(Pension) Rules 1972.
4. To ensure effective and periodical functioning of DGAQA HQ JCM III level council and the Additional Meeting Mechanism chaired by the JS.
5. To provide Medical treatment to the Civilian Employees and the Dependants in the Military/Command Hospitals.
6. To extend support and solidarity to the striking workers of Ordnance Factories against Corporatisation of OFB.

One Week protest programme to be observed by the Unions of MES, DRDO, DGQA, DGAQA, EME, NAVY, DRDO, AOC and IAF.

1) 7/9/2020 Issue of Strike Notice after holding demonstration.
2) 8/9/2020 Publication of posters inside the units on the strike demands.
3) 9/9/2020 Publication of pamphlets and Gate Meetings.
4) 10/9/2020 Wearing of demand badges.
5) 11/9/2020 Wearing of demand badges and lunch boycott.

All the above programmes may be observed successfully by all the Affiliated Unions and reports may be submitted to the respective Federations.

FORWARDING OF THE RECORD OF DISCUSSIONS OF THE MEETING HELD IN THE OFFICE OF ADDITIONAL SECRETARY (DP) ON 28-08-2020 AT 16.30 HRS THROUGH VC TO INTERACT WITH FEDERATIONS OF OFB REGARDING THE STRIKE NOTICE.

The DDP have now issued the record of discussion of the meeting held under the Chairmanship of Additional Secretary (DP) on 28-8-2020 to discuss about our strike demands. A copy of the record of discussions of the meeting is enclosed as Annexure-1 of this joint circular. A copy of the Gist of Cabinet Secretariat letter dated 7-8-2020 about the constitution of Empowered Group of Ministers to oversee and guide the entire process of conversion of OFB into a PSU along with its terms of reference received from DDP is enclosed as Annexure-II of this joint circular.

(C. SRIKUMAR)
GENERAL SECRETARY
AIDEF 09444080885 defempfed@gmail.com

(R. SRINIVASAN)
GENERAL SECRETARY INDWF
09444125799 indwfrsrinivasan@gmail.com

(MUKESH SINGH)
GENERAL SECRETARY BPMS
09335621629 gensecbpms@yahoo.co.in

Record of Discussions of the meeting held in the office of Additional Secretary (DP) on 28.08.2020 at 16:30 hrs (through VC) to interact with the Federations of OFB regarding the strike notice

The list of participants is annexed.

2. At the outset, Additional Secretary (DP) welcomed the representatives of the three recognised Federations (AIDEF, INDWF & BPMS.). He stated that the three Federations have given a strike notice,to commence an indefinite strike from 12.10.2020 by the Defence Civilian employees of the OFs and DGQA units functioning inside OFs for various reasons/ demands. He mentioned that DDP has written a letter to the Federations dated 14.08.2020 to support the Government in the process of corporatisation and hot to go on strike. He added that the OFB has also communicated with the Federations at various levels to not go on strike but it is understood that the strike nofice has not been withdrawn. In this context, the present meeting has been convened. He informed about the decision taken by the Cabinet to corporatize OFB and about the order to constitute an Empowered Group of Ministers (EGoM) under the Chairmanship of Raksha Mantri to oversee and guide the entire process of corporatisation. He requested that to complete the entire exercise smoothly, the Federations should co-operate with the Government. Thereafter , he invited the Federations for their views, especially with regard to protection of their service benefits like pension.

3. The Federation representatives spoke one by one. Their views are summarised in the following paragraphs.

4. President, AIDEF thanked DDP for calling the meeting. He asked as to why the Government is corporatizing the Ordnance Factories . AS (DP) replied that it is a Government decesion. President, AIDEF states that the Federations have already written a number of times to Hon’ble PM and MoD about their decision to not accept corporatisation of OFB, giving detailed reasons and justification. However, the Government did not consider their representations at all and not even bothered to reply. Hence, the Federations have taken the decision to commence the indefinite strike, for which the workers have given the mandate through the strike ballot, as per the provisions of the ID Act. OFB and all its factories are under the direct control of the Ministry/DDP . All postings, right from Chairman to GM are being done by the Ministry only. All the policy decisions a.re also taken by the Ministry. In all these decision making processes, there is no role of either the workers or their trade unions. Therefore, if anything is Wrong with OFB, then Ministry is only responsible for the same. Hence, if at all Corporatisation has to take place, first it is the MoD/DDP which should be corporatised and not the Ordnance Factories. He mentioned that the Honble PM, during a defence industry outreach webinar on 27.08.2020, has said that OFs had been run like a “government department” for decades. He mentioned that OFs are responsible for their proouctioh activities at every stage and that the PM has not been briefed properly. He mentioned that Department has not provided any written confirmation of the assumed benefits of corporatisation, nor given any credible proof in support. He said that in case of corporatisation , the OFs will not be viable and will definitely be liquidated, sooner or later. He requested for a Expert Committee to be formed, with all stakeholders.

5. AS (DP) responded that relationship between the DDP and the OFB alongwith the workers/Unions/ Federations is a relation of equals. The Terms of Reference (ToRs) of the EGoM will be shared with the Federations (copy enclosed). One of the ToRs is regarding the financial support required by the OFB for sustenance. The employees will remain employees of a government entity. The only change is that the proposed entity will be a 100% government owned entity instead of a Government department.

6. General Secretary AIDEF stated that Secretary (DP) has given assurance during meeting with Federations on 28.07.2020 that their concerns against corporatisation would be urgently communicated to the RM. However, it is regretted that they have not received any feedback in this regard. Instead, the RM has announced during the above webinar that the corporatisation of OFB will be completed in a year. He stated that the Federations strongly protest against this. He reiterated the contention that all postings, right from Chairman to GM are being done by the Ministry only, so the concerned officials of the Ministry should be corporatized. He stated that the PM is not being correctly briefed by senior government officials. The government should not be a party to a decision of ruining an old and landmark institution. He mentioned that the Prime Minister in his speech on 27.08.2020 in a seminar on defence manufacturing has appreciated the workforce of the Ordnance Factories . Though, he has also made a statement that Ordnance Factories are in the process of becoming a corporation, which will strengthen the workforce of OFB and also the Army. However, the Prime Minister has hot given any details about how corporatisation is going to strengthen the workforce. In our view, corporatisation will rather damage the future of the workforce. Therefore , the senior officers who have written the speech of the Prime Minister should inform how the workers are going to be benefited by Corporatisation .of OFB, when the Government’s policy is to privatise PSUs, as told by Finance Minister during her announcement on 17.05′.2020. He also mentioned that DDP has never been kind and considerate towards OFB. No benefits and no relaxations , in official or HR domain, have been given to the organisation and the workforce over a long period of time . No cadre restructuring proposal has been approved in the last 20 years. 275 products of OFB were declared non-core and OFB was asked to compete with the private sector. The piecework correlation proposal of the 7th CPC is still pending with DDP. The demand for allotment of salary budget separately and not to link the same With the cost of the product, was accepted by the previous Secretary (DP) in a meeting with the Federations , and also in the presence of the Cabinet Secretary, in the National Council JCM meeting. However, the same has not been implemented. There will be no quorum for OF Board after 31.08.2020 , as Members posts are ‘lying vacant. The Government is not coming forward to understand the difficulties of the employees. Instead the government is planning to crush the strike through ESMA etc., which shows their intent. However, we will continue our fight democratically, as permissible under law. OFB is being attacked from all the corners by the vested interests. Even DRDO is being told not to handover new technology to OFB. How can it then be expected that the service conditions will be discussed, or given favorable consideratjon by the DDP now? The decision to convert OFB into a PSU i$ a clear violation of Article 14 and 21 of the Constitution. The Government is going ahead with its decision in violation of the written assurance given by the previous Defence Ministers, assurance given before the Parliament, and the DDP’s own statement before the Parliamentary Standing Committee. He stated that Armed Forces will now have to depend on crony capitalists to meet their requirements . We all know the fate of BSNL and SPMCIL. The government has decided to disinvest its share in HAL. Another DPSU namely BEML is being privatised. Therefore , knowing all these facts, the Federations cannot accept the decision of the government to corporatize Ordnance Factories. He claimed that if given a clear target well in advance, with 2 years roll on indent to start with, OFB will definitely reach Rs 30,000 crore target in 5 years.

7. President, INDWF stated that we expect DDP to act as a bridge to reach the Hon’ble PM and RM. He stated that if the PM can speak to FICCI, and .other industry associations, he should also speak to the workers. He said that the government is hurting the interests of the workers, and their emotions . He said that the RM too speaks highly of the OF workers . There is every reason that the PM and RM interact with the workers and the DDP should facilitate this interaction. He said that they would tell the PM and RM that the OFB is not viable a$ a corporate structure. OFs need to be saved in the interests of the nation.

8. In response AS (DP) suggested that since the government has already taken the decision to corporatize the OFs, and EGoM’ has been formed, the EGoM provides an opportunity to the Federations to interact with a group of ministers including the De.fence Minister, the Home Minister, Finance Minister, etc to put forth their suggestions to safeguard their interests.

9. General Secretary, INDWF stated that the Federations will never support the Government in the process of corporatisation. He said that there are 3 main demands of the Federations – a,) withdraw the decision to corporatise OFB, b) set-up an expert committee to study all the supposed drawbacks and help increase efficiency and output from OFB, and c) service matters of all the employees be protected and considered favourably, within the existing structure of OFB. He said that the government is promoting the private sector in those very areas of defence production where the OFB has a stronghold. However, there are several other areas of defence production Which can be tapped, and the government should encourage the private sector in those fields. He said that in the present structure, OFB is a Government department, which in no way means that the OFB is not an accountable/ responsible body. He pointed out that even MoD takes considerable time to decide on the proposals, and after examination at length, sometimes rejects it. If that does. not make MoD liable for corporatisation, the performance of OFB certainly does not call for corporatisation. There is no guarantee that the interests of the OFB will be safeguarded. In fact, the decisions like the labelling of OFB products as hon core give the opposite impressio , and make the workforce apprehensive about the intentions of the Government. India is a welfare state, however, this intent will be severely compromised, as the private sector is not interested in the welfare of its workforce , and gives far more importance to profits.

10. Vice President BPMS stated that our demand is that the Government should reconsider its decision and start dialogue with Federations on improvement of the performance of OFB, including achieving Rs. 30,000 crore production target within the present set-up. He stated that the OFs have not been provided with adeq1,1ate s1,1pport over a long period of time. He stated that in his khowledge, the PM has never visited an Ordinance Factory. From the PM’s views, it is evident that all the facts were not brought to the notice of the PM and RM by the MoD officials, before taking decision of corporatisation. The Government has taken the decision for corporatisation without discussion with the Federations. The country cannot depend upon the private sector and foreign companies alone for its defence. On the one hand DDP talks about autonomy to OFB, on the other hand there are deliberate attempts to destroy OFB. He pointed out that late Shri Jaitley, former Defence Minister had declined the proposal to increase the privatisation in defence. He said that the reports of the Committees were examined ‘in the Ministry, and it was deciqed not to go ahead with corporatisation . Late Sh Parrikar, former Defence Minister, stated in Parliament that there is no proposal to corporatize OFs-: He said that workload given to OFs is erratic and does not support regular supplies. Efforts by OFs to provide indigenous products have not been unjustifiably scuttled, for e.g. Parachutes by OPF, Kanpur. He stated that Corporatisation is against self-reliance. He reiterated the view that the Government may withdraw its decision on corporattsation of OFB’, give 5 years’ time to them to reach the production target of Rs. 30,000 crores, with timely workload. For this and other reforms within the present set-up, an expert committee may be constituted, with representatives from Federations also.

11. General Secretary, BPMS stated that responsive co-operation is our motto. He said that the proposed strike is not for bread-butter , but an action in the spirit of responsive co-operation. Several stakeholders and supporters had asked to go on strike, but in view of the national exigency notably Chinese threat, the strike was delayed. He stated that in future too, if the nation is under threat form the borders the Federations will give priority to the safety and security of the nation and will withdraw strike immediately. At present, all the unions have joined hands for saving the government sector in defence, namely the Ordnance Factories, DRDO, DGQA, Navy workers etc. He noted that the country is a socialist republic, and without a constitutional amendment, how is it possible to change the structure of a strategic organisation which adversely affects the spirit of the socialist republic. He congratulated and appreciated the PM for his speech during the webinar on 27.08.2020, however, he wondered whether the PM implied that the of family members were good, but the OF family was bad, which seemed contradictory. He concluded that the PM was given a misleading picture by senior government officials. He said that this is supported by the fact that the senior government officials/ policy makers have erred in policy making in the past. As an illustration , he pointed out that the FDI policy in the past has produced lukewarm results, providing just approx. Rs 41 crore from 2001-2018, and merely Rs 1 crore from Apr 2014- Mar 2018, in defence Sector. He stated that Defence Finance is also a challenge, as budget funds envisaged by MoD get stuck in Defence Finance. He said that nevertheless, the strike notice from the Federations stands, as corporatisation is net the solution to any woes.

12. AS (DP) reiterated that the Federations can put their issues before the EGoM. In reply, the Federation representatives pointed out that EGoM is a post-corporatisation exercise and they do not support this interaction. They mentioned that talking to EGoM would be like accepting the corporatisation. Hence, there is no point talking to EGoM.

13. There being no other point, the meeting ended with than.ks to the Chair.

List of Participants

DDP

1. Sh V L Kantha Rao,- AS (.DP) – in Chair
2. Sh Puneet Agarwal- JS (LS)
3. Sh C S Vishwakarma, Addi. DGOF & Mmber, OFB (through VC)
4 . Sh Sandep Jain- Director (P&C)

Representatives from Federations (through VC)

1. Sh S. N. Pathak, President/ AIDEF
2. Sh C.Srikumar , General Secretary/AlDEF
3. Sh Ashok Singh, President/ INDWF
4. Sh R.Srinivasan, General Secretary/ INDWF
5. Sh Sadhu Singh, Vice President/ BPMS
6. Sh Mukesh Srngh, General Secretary/ BPMS

GIST OF THE CABINET SECRETARlAT LETTER N0.143/1/3/2019-TS DATED 07.08.2020

Subject: Constitution of the Empowered Group of Ministers to oversee and guide the entire process of conversion of Ordnance Factory Hoard, a subordinate office of Ministry of Defence into one or more than one 100 % Government owned corporate entities.

The Cabinet Committee on Security (CCS) in its meeting held on 29.07.2020 considered the note dated 14-07-2020 from the Department of Defence Production regarding Approval to convert Ordnance Factory Board (OFB) a subordinate office of Ministry of Defence into one or more than one 100% Government owned corporate entities’ and inter alia approved the proposal for constitution of an Empowered Group of Ministers (EGoM) to oversee and guide the entire process including transition support and redeployment plan of employees while safeguarding their wages and retirement benefits .

2. The composition of the EGoM will be as under :

Minister of Defence – Chairperson.
Minister of Home Affairs.
Minister of Finance.
Minister of Law and Justice.
Minister of State (Independent Charge) of the -Ministry of Labour and Employment. Minister of State in the Ministry of Personnel, Public Grievance and Pensions.

3. The Terms of Reference of the EGoM will be as under :

1. Conversion of Ordnance Factory Board into, a single Defene Public Sector undertaking (DPSU) or as multiple DPSUs.
ii Transfer of non-production entities like Training Institutes, or Controllerates of Safety to the proposed entity/entities.
iii Matters related to various categories of employees (Group A, B and C) including protection of their salary and pension of existing employees, number of employees to be transferred to the proposed entity/entities terms of their transfer /absorption; responsibility of pension liability of pre-2004 employees, etc.
iv Grandfathering of orders already being executed by OFB and for which facilities have been created in OFB to ensure continuity in supply of strategic arms and ammunitions.
v. Financial support that may be provided to the entity/entities t0 make them economically Viable and self-reliant for purpose like working capital, modernization of equipment, settlement of employee dues etc.
vi. Treatment for land assets of OFB.
vii. Future of Indian Ordnance Factories Health Service.
viii. Any other related matter, as required.

4. The EGoM will be serviced by Department of Defence Production

Source: BPMS

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Circular No.C- 207

No.G1/C/MISC/Vol-X/Tech
O/o the PCDA(P), Allahabad
Dated: 03/04/2020

To,
……………
……………
(All Head of Department under Min. of Defence)

Sub:- Submission of pension claim during lock-down in respect of Defence civilian

Government of India has declared lock-down as a precautionary measure in view of COVID-19. Some Head of office have expressed their inability in forwarding of pension claim in hard copy due to lockdown. Matter has been considered by the competent authority and it has been decided that till then lockdown, superannuation/retiring pension claim whose date of retirement is on or before 30.04.2020 and all death cases pension claim may also be forwarded as a soft copy i.e. scanned copy to PCDA (Pension) Allahabad email address cda-albd@nic.in. This arrangement is optional for those HOO who are not in position to forward pension claim in hard copy. Subject of email should be “Pension claim- G1/Civil“.

2. In view of the above, you are requested to issue suitable instructions (along with copy of this circular) to all the head of the Offices under your administrative control to ensure the submission of pension claim as stated above.

(Navpreet Kaur)
Dy.CDA (P)

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MoD clarifies there is no proposal to privatise OFB

16th AUG 2019

In continuation of the meeting held on August 14, a Committee of senior officials of Ministry of Defence led by Additional Secretary, Department of Defence Production alongwith Chairman, Ordnance Factory Board (OFB) once again met the office bearers of the All India Defence Employees Federation, Indian National Defence Workers Federation, Bhartiya Pratiksha Mazdoor Sangh and Confederation of Defence Recognized Association here today on the issue of Strike notice given by them starting with effect from August 20,2019. The meeting was also attended by officials from the Ministry of Labour & Employment, Government of India.

The Committee also pointed out that the employees’ call for 30 days’ strike was unprecedented, especially when Government has already agreed to their demand to hold discussions at the MoD level and is in process of continuously engaging with them.

The Committee explained to the employee organisations that there is no proposal to privatise OFB. The proposal under consideration of Government is to make it into Defence Public Sector Undertakings (DPSUs), which is 100 per cent Government owned. Rumours being spread that OFB is being privatised are misguiding and with the intent to mislead the workers. Corporatisation of OFB will bring OFB at par with other DPSUs of MoD. This is in the interest of OFB as it will provide operational freedom and flexibility to OFB which it presently lacks. Besides, the interests of the workers will be adequately safeguarded in any decision taken on the subject.

The Committee also pointed out that Government has been continuously trying to strengthen the functioning of OFB, including having taken several steps to modernise the factories, carry out capital upgradation, re-train and re-skill OFB employees at Government costs, enable development of products and components with indigenous technology. The Committee urged the employee organisations to recognise Government’s efforts to make OFB into a competitive, productive and efficient organisation with higher turnover and enhanced profitability, which would also be in the interest of the employees. Therefore, the Committee once again urged the employee organisations to withdraw their proposed strike.

PIB

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Annexure-I

F.No-20/07/2017-PR

18.03.2019

To
Shri C. Srikumar, General Secretary,
All India Defence Employees’ Federation,
S.M. Joshi BhavanI, Survey No. 81 ,
Dr. Babasaheb Ambedkar Road,
Khadki, Pune – 411 003.

Subject: Representation received for abolition of National Pension System and for restoration of Old Pension Scheme – reg.

Sir,
Kindly refer, to your representation dated 03.11.2018 on the subject cited above.

In this connection, it is started that the introduction of National Pension System (NPS) was a policy decision of the Government of India in view of the Increasing pension liability on the economy.

Your concerns In this regard have been noted. It Is informed that based on the feedback received from time to time from the subscribers covered under NPS and other stakeholders, the Government of India, based on the Committee of Secretaries recommendations, has recently approved the following proposals for streamlining NPS for Central Government employees.

• Enhancement of the Government’s contribution from the existing 10% to 14% of the employee’s pay + DA While keeping the employee’s contribution at the existing 10%
• Providing freedom of choice for selection of Pension Funds and pattern of investment to subscribers
• Payment of compensation for non-deposit or delayed deposit of NPS contributions during 2004-2012
• Providing tax deduction to the contribution made under Tier-II of NPS under Section 80 C for deduction up to Rs. 1.50 Iakh provided that there is a lock in period of 3 years
• Increase In the tax exemption limit for lump sum withdrawal on exit from the existing 40% to 60% making the entire withdrawal exempt from Income tax.

It Is further assured that keeping in view the concerns of NPS subscribers, the Government will continue to do its best to ensure that the Interests of the subscribers are protected to the best extent.

Yours faithfully,
(Abhay Garg)
Under Secretary to the Government of India

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Hon’be Defence Minister Sri Arun Jaitley has taken decision to outsource 143 products to PRIVATE SECTOR which are being at present manufactured by ordnance factories of Govt of India. Accordingly Defence Ministry has issued orders on 27.04.2017. On implementation of the above major policy decision of the Defence Ministry ,the job of almost 20000 (twenty thousand) defence civilian employees of ordnance factories involved in the production of these 143 products will be at stake. Jobs which are now performed by dedicated ordnance factory workers for years together are being snatched and given to private sector. As a result defence employees are facing serious threat to their job security.

Against the above decision of the BJP-led NDA Government , defence employees are organising series of agitational programmes including staying away from the work for one hour during the beginning hour of the duty on24th May 2017 and conducting demonstrations. Confederation National Secretariat calls upon all affiliate’s and COC’s to extend full support and solidarity to the struggle of the defence employees against privatisation and for job security. Leaders of the Confederation are requested to visit the leaders of ordance factory workers and All India Defence Employees Federation which is spearheading the struggle and convey our support in person .

M.KRISHNAN
Secretary General
Confederation
Mob & WhatsApp : 09447068125.
Email : mkrishnan6854@Gmail.com

Source : Confederationhq

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The BJP- led NDA Government has intensified it’s policy attack on Railways and Defence establishments and employees.

ATTACK ON RAILWAYS.

After the Narendra Modi Government coming to power 100% Foreign Direct Investment (FDI) is allowed in Railways. A committee headed by Sri Bibek Deb Roy , Member , NITI Ayog (National Institute for Transformation of India Ayog) was appointed for restructuring of Railways. The committee recommended complete privatisation of Railways. AIRF in its resolution adopted in the 92nd Annual Conference held at Allahabad from 8th to 10th December 2016, stated as follows:

NDA Government assumed power on 26th May 2016. The General Body meeting of AIRF held on 3rd and 4th July 2016 at Chennai, decided to defer the strike decision to provide time to the new Government to settle and resolve grievances. But the same Government by a notification dated 22nd August 2014, decided to induct 100% FDI in Indian Railways, Defence establishments etc. The Government appointed a high level Railway Restructuring Committee, on 22nd September 2014, headed by Sri Bibek Deb Roy, for restructuring Railways. The same committee had drawn a road map for privatisation and went ahead gradually, despite all out protest by AIRF.

The merger of the Railway Budget with the General Budget was one of the key recommendations on Bibek Deb Roy committee, as an important step towards privatisation of Railways. Government has implemented the decision from this year onwards, on top priority basis. It is also reported in the media that Government has decided to privatise heritage and tourist Railways like Kalka – Shimla, Siliguri – Darjeeling and Nilgiri (Ootty) railways. BIBEK DEB ROY COMMITTEE RECOMMENDATIONS ARE THE BEGIN ING OF THE END OF THE GOVT OWNED INDIAN RAILWAYS.

To add insult to injury, the Railway Board has issued orders curtailing the basic trade union rights of Railway employees. AIRF circular issued on 2nd February 2017 reads as follows:
“In continuation of our earlier letter of even no. dated 1st February 2017, you are advised to observe “Black Day” on 6th February 2017 wearing black badges/ribbons, right from branch to zonal levels, at all important offices of your Railway administrations, DEMANDING WITHDRAWAL OF RAILWAY BOARD’S LETTER DATED 31.01.2017, WHEREIN THE BOARD HAVE DECIDED TO DEBAR SUPERVISORS (IN ERSTWHILE GRADE PAY OF 4200) WORKING IN SAFETY CATEGORIES FROM TRADE UNION“.

AIRF statement also said that the order is in violation of 87th ILO Convention and Indian Trade Union Act.

Railway order says that those supervisors working in safety categories cannot become office bearers of unions/Associations/Federations, but can only remain as members with effect from 01.04.2017.

The above is the present situation in Indian Railways and all the Railway unions/Associations/Federations are conducting various protest programmes (other than strike as dominant organisations are yet to take such a decision) against the policy offensives of the NDA Govt. Recently on 1st & 2nd February 2017, Dakshin Railway Employees Union (DREU) , All India Loco Running Staff Association (AILRSA), All India Station Masters Association (AISMA) , All India Guard Council , Indian Railway Technical Supervisors Association etc. (other than AIRF and NFIR) had organised a massive National Convention and also Parliament March at New Delhi , demanding no privatisation and modifications in the 7th CPC recommendations.

ATTACK ON DEFENCE SECTOR
The situation in Defence sector is also not different. All India Defence Employees Federation (AIDEF) in its circular dated 04.02.2017, has conveyed the following developments to its rank and file:

“The ordnance factories are under severe attack due to the policies being adopted by the BJP – led NDA Government. Instead of developing and strengthening the ordnance factories, the Govt. is disowning the same and is planning fully to proceed to weaken the ordnance factories. Licences are being given to private companies for defence manufacturing including for those products which are being manufactured in the ordnance factories.”

In a meeting of Senior Officers held on 5th January 2017, the Secretary, Ministry of Defence made the following comments
“You have to reduce the cost, otherwise you will not get workload in future, you have to compete with the private sector for getting workload. Two years is the period for ordnance factories.”

Recently Sri Manohar Parikar, Defence Minister , who visited AFK Pune , in the meeting held with unions has stated that ” Factories which are manufacturing clothing and leather items are not required in the Government. These items can easily be procured from private sector.”

The proposal of corporatisation (which is a step towards privatisation) is also under consideration with Prime Minister’s Office (PMO). Govt has constituted another committee to identify low technology/noncore items. It is seen from the press reports that a committee constituted by Defence Minister under the chairmanship of one retired IIM Professor has recommended for creation of a new independent organisation outside the Ministry of Defence to undertake defence procurement. It is understood that a new organisation tentatively called the “DEFENCE ACQUISITION AUTHORITY” will be fully responsible for the entire process of acquisition.

All these policy decisions of the Government will have serious impact on the existence of ordnance factories and on the job security of defence civilian employees. AIDEF has decided to convene a meeting of ordnance factory unions to take a serious stock of the situation and formulate an action plan to fight back.

THIS GOVT WILL UNDERSTAND THE LANGUAGE OF STRIKE ONLY. CONFEDERATION IS ON THE RIGHT PATH.
Confederation of Central Government Employees & Workers, representing about thirteen lakhs Central Government Employees, which always stood in the forefront of the struggle against neo-liberal reforms and anti-people, anti -worker policies of the Govt. and also which conducted series of agitational programmes including strikes against the policy offensives of the Government, extends full support and solidarity to the Railway and Defence employees in their struggle for existence.

Confederation calls upon the entire Central Govt. employees to make the 16th March 2016 one day strike a thundering success. Let us be ready for an indefinite strike, if situation warrants.

Source: http://confederationhq.blogspot.in/

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Lakhs of Railway Employees participated today in 3 days Protest Programme starting from 19.01.2016 to 21.01.2016

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Charging of damages for unauthorized occupation of defence pool accommodation and recovery of licence fee:-

To

All Regional PCsDA/CsDA

PCDA(Navy)/CDA(AF)/PCDA(O) Pune

Sub:- Charging of damages for unauthorized occupation of defence pool accommodation and recovery of licence fee when defence pool accommodation allotted to ineligible persons/ organization/private parties.

No.B/68628/Policy (Qtr)/24/F/D(Q&C)/15

Government of India

Ministry of Defence

New Delhi: 21 Apr 2015

CORRIGENDUM

(a) For : PARA 2(a)READ

(b) FOR : PARA 3READ

(c) FOR : PARA 5READ

Source: http://cgda.nic.in/audit/circulars/charrgdamag.pdf

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Press Information Bureau Government of India
Ministry of Defence

13-March, 2015

The principle of One Rank One Pension for the Armed Forces has been accepted by the Government. The modalities for implementation have been discussed with various stakeholders and are presently under consideration of the Government. Financial implication could be calculated, once the modalities are finalized and approved by the Government.

Possible amendments to the pension policies are being examined with a view to reduce litigation for removing disparities in pension of various ex-servicemen.

This information was given by Defence Minister Shri Manohar Parrikar in a written reply to Shri Mullappally Ramachandran and others in Lok Sabha today.

DM/NAMPI/HH/RAJ

– PIB

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