GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
RAJYA SABHA

STARRED QUESTION NO. 346
TO BE ANSWERED ON 28.03.2018

EQUAL PAY FOR DAILY WAGERS/CONTRACT LABOURERS AND REGULAR EMPLOYEES

346. DR. SATYANARAYAN JATIYA:
Will the Minister of LABOUR AND EMPLOYMENT be pleased to
state:
(a)the policy of “equal pay for equal work” and the effective measures taken for the implementation of the same; and
(b)in reference to (a) above the measures taken to ensure equal payment to daily wagers and contract labourers employed in institutes, establishments and companies of Government and
private sector as is being given to regular employees employed there?

ANSWER
MINISTER OF STATE(IC) FOR LABOUR AND EMPLOYMENT
(SHRI SANTOSH KUMAR GANGWAR)

(a) & (b): The principal of “equal pay for equal work” was examined and laid down by the Hon‟ble Supreme Court in the civil appeal number 213 of 2013. The issue before the Hon‟ble Supreme Court was as under:
“whether temporarily engaged employees (daily-wage employees, ad- appointees, employees appointed on casual basis, contractual employees and the like), are entitled to minimum of the regular pay-scale, alongwith dearness allowance (as revised from time to time) on account of their performing the same duties, which are discharged by those engaged on regular basis, against sanctioned posts”

The Hon‟ble Supreme Court held that:
“There can be no doubt, that the principle of “equal pay for equal work” would be applicable to all the concerned temporary employees, so as to vest in them the right to claim wages, at par with the minimum of the pay-scale of regularly engaged Government employees, holding the same post”

The above judgement of the Hon’ble Supreme Court dated 26th October, 2016 covers various sets of temporarily engaged employees, viz. daily-wage employees, adappointees, employees appointed on casual basis, contractual employees etc. It is mandatory for the employer/principal employer to comply with the provisions of labour laws and apply the ratio laid down by the Hon’ble Supreme Court regarding “equal pay for equal work” while paying wages to its workers/labourers.

In so far as the contract labour is concerned, the Contract Labour (Regulation & Abolition) Central Rules, 1971 provides for wage parity as stipulated in rule 25(2)(v)(a) which is reproduced below:

“in cases where the workmen employed by the contractor perform the same or similar kind of work as the workmen directly employed by the principal employer of the establishment, the wage rates, holidays, hours of work and other conditions of service of the workmen of the contractor shall be the same as applicable to the workmen directly employed by the principal employer of the establishment on the same or similar kind of work”

Source: www.rajyasabga.nic.in

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Central Public Sector Enterprises (CPSEs) are under the administrative control of their respective Ministries / Departments and CPSEs are required to follow the various statutory provisions / Court orders / Government instructions including instructions on wage related issues of various categories of employees, wherever applicable. However, the responsibility to monitor the implementation of above said statutory provisions / court orders / Government instructions vests with the Board of CPSEs and the concerned administrative Ministry / Department. As such, no centralized information in this regard is maintained by Department of Public Enterprises (DPE) and accordingly no status report on implementation of Supreme Court verdict on equal pay for equal work with reference to the contractual and temporary employees in CPSEs is also maintained in Department of Public Enterprises.

This information was given by Minister of State in the Ministry of Heavy Industries and Public Enterprises Shri Babul Supriyo in reply to a written question in the Rajya Sabha today.

PIB

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GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 1294
TO BE ANSWERED ON 24.07.2017

EQUAL PAY FOR EQUAL WORK

1294. SHRI KANWAR SINGH TANWAR:

SHRI HARI MANJHI:

SHRI INNOCENT:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

(a)whether the Hon’ble Supreme Court has given a ruling that the theory of equal pay for equal work should be implemented and if so, the details thereof;

(b)whether the Hon’ble Court has also reiterated that there should be no disparity in the salary of regular and casual workers in a welfare State if both are doing same nature of work and if so, the details thereof;

(c)whether the Government is aware that the contract workers are being deprived from equal pay for equal work by their employers and if so, the details thereof;

(d)whether the Government has set up/proposes to set up a suitable redressal mechanism in this regard and if so, the details thereof; and

(e)the other measures taken/proposed to be taken by the Government for the welfare and social security of workers including casual/contract workers in the country?

ANSWER

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT 

(SHRI BANDARU DATTATREYA)

(a) & (b): In civil appeal number 213 of 2013 the issue for consideration ofthe Hon’ble Supreme Court was as under:

“whether temporarily engaged employees (daily-wage employees, ad-appointees, employees appointed on casual basis, contractual employees and the like), are entitled to minimum of the regular pay-scale, alongwith dearness allowance (as revised from time to time) on account of their performing the same duties, which are discharged by those engaged on regular basis, against sanctioned posts”.

The Hon’ble Supreme Court held that:

“There can be no doubt, that the principle of ‘equal pay for equal work’ would be applicable to all the concerned temporary employees, so as to vest in them the right to claim wages, at par with the minimum of the pay-scale of regularly engaged Government employees, holding the same post”

(c) & (d): In so far as the contract labour is concerned, the ContractLabour (Regulation & Abolition) Act, 1970 and the rules framed thereunder regulate the employment of contract labour. Rule 25(2)(v)(a) of the Contract Labour (Regulation & Abolition) Central Rules, 1971 provides for parity as mentioned below:

“in cases where the workmen employed by the contractor perform the same or similar kind of work as the workmen directly employed by the principal employer of the establishment, the wage rates, holidays, hours of work and other conditions of service of the workmen of the contractor shall be the same as applicable to the workmen directly employed by the principal employer of the establishment on the same or similar kind of work”

A well-established Central Industrial Relations Machinery (CIRM) is in place to enforce the Contract Labour (Regulation & Abolition) Act, 1970. The country-wide network of Dy. Chief Labour Commissioners (Central) and Regional Labour Commissioners (Central) under the control of Chief Labour Commissioner (Central) is mandated to settle the complaints/claims of the contract workers in terms of the provisions of the said Act and the Rules framed thereunder

(e): In order to provide social security benefits to the workers in theorganised sector, the Government has enacted the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 and Employees’ State Insurance Act, 1948.

For providing social security benefits to the workers in the unorganised sector, the Government has enacted the Unorganised Workers’ Social Security Act, 2008 which stipulates formulation of suitable welfare schemes for unorganised workers on matters relating to:

(i) life and disability cover,

(ii) health and maternity benefits,

(iii) old age protection and

(iv) any other benefit as may be determined by the Central Government through the National Social Security Board. Various Schemes, formulated by the Government to provide social security cover to the unorganized workers as listed in Schedule I of the above Act.

Central Government has also launched the Atal Pension Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana for all citizens especially targeting unorganised workers to provide them comprehensive social security.

Source : Lok Sabha

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As per information received from Department of Personnel & Training (DoPT), the instructions regarding equal pay admissible to casual workers already exists in terms of DoPT O.M. No. 49014/2/86 Estt. (c) dated 07.06.1988. Further, Central Public Sector Enterprises (CPSEs) are under the administrative control of their respective Ministries / Departments and CPSEs are required to follow the various statutory provisions / Court orders / Government instructions including instructions on wage related issues of various categories of employees, wherever applicable. However, as the responsibility to monitor the implementation of above said statutory provisions / court orders / Government instructions vests with the Board of CPSEs and the concerned administrative Ministry / Department, as such no centralized information in this regard is maintained by Department of Public Enterprises (DPE) and accordingly complaints, if any, received against any CPSE on this issue are also forwarded to the concerned administrative Ministry / Department of CPSE for appropriate action.

This information was given by Minister of State in the Ministry of Heavy Industries and Public Enterprises Shri Babul Supriyo in reply to a written question in the Rajya Sabha today.

PIB

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“Equal Pay for Equal Work  – Pay Matrix addresses these issues as well”

One recurrent theme in the representations of various associations relates to ‘equity’ or ‘Equal Pay for Equal Work.’

Ideally, the remuneration package should establish horizontal equity: employees should feel that their pay is comparable with the remuneration structure of similarly placed positions outside their organization. The employees should also feel that the pay structure shows linear progression pattern and thus the notion of vertical equity is also maintained.

The Pay Matrix addresses these issues as well. The Commission has designed the pay structure in such a manner that the pay progression recognises the importance of vertical relativities and also assigns a reasonable basis to such progression. This has been done by assigning a uniform fitment factor of 2.57.

The Commission feels that there is strong need to create a culture of performance in government – from establishing standards of performance, to measuring, and promoting people based on performance. To emphasize on the culture of performance, the Commission has recommended that all the non-performers in the system should be phased out after 20 years.

The Commission has recommended that Performance Related Pay should be introduced in the government and that all Bonus payments should necessarily be linked with productivity.

The various Central Services have contended that this edge given to the IAS and the IFS is iniquitous and violates the principle of ‘equal pay for equal work.’

They have pointed out that the Civil Services Examination (CSE) conducted by the UPSC is an examination that is common for recruitment to around 18 Group `A’ Services and that the choice of Service exercised by the candidates is based upon very many factors. It is not necessary that only the top-most go to the IAS. It has also been pointed out that officers of most of the Services are, in their early years, posted to small places and are subjected to many transfers. Therefore, the grant of the edge is seen as unfair.

Analysis and Recommendations : This Commission has studied the entire issue and deliberated in detail on the issue in the Chapter 7.2. The Chairman has sought not only to retain the two increment edge within the proposed pay matrix for the IAS and Indian Foreign Service but also extended it to the Indian Police Service and the Indian Forest Service. Shri Vivek Rae, Member, Seventh CPC is not in agreement with extension of the edge in pay to the IPS and IFoS. Dr.Rathin Roy, Member, Seventh CPC is not in agreement with the concept of an edge in pay.

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Major issues of the Central Government Employees

Five major issues of the Central Government employees which are projected for a serving employee to the 7th CPC.

1) Inadequate pay compared to talent.
2) Lack of promotions and better increment rate.
3) Equal pay for equal work.
4) Non-filling up of vacant posts and increased work load.
5) Allowances to be paid as per market rate.

1) Inadequate pay compared to talent:
The person joining a Government Service is not just for the employment is for a whole career, if a person joins a Government Service he will quit/ retire from the job only after putting 30 years service or more. In case of the person joining a private company he will jump from one company to another at least five times in thirty years.

The talented persons from all over the country are moving to IT, BT and private sectors, rather than Central Government sector. Because of the lower salary / pay structure in Central Government sector compared to IT and BT sectors and complex nature of rules and regulations in Central Government sector and also the skill and merit of the worker/ employee is not into account in Central Government sector.

Today, the weakest link in respect of any government policy is at the delivery stage. This phenomenon is not endemic to India. Internationally also, there is an increasing emphasis on strengthening the delivery lines and decentralization with greater role being assigned at delivery points, which actually determines the benefit that the common citizen is going to derive out of any policy initiative of the government.

More the talented persons are there in Government services, more the delivery of the government schemes will be there, thus the Government machinery will be more effective and common man will benefit a lot.
Main consideration in the private and public sector being ‘profit’, and in Central Government it is “service” even through Railways, Income Tax & Central Excise are revenue earning departments, hence an equal comparison with the Government is not going to be ever possible. Performance for the Government is usually not measured in terms of profit, but in terms of achieving societal goals.

The time scale gap between one posts to another should be uniform rate from starting to end, starting from Rs 26,000 to Rs 2, 60,000.

The minimum wage should be calculated using Dr Aykroyd formula and following 15th ILC norms and four units should be taken into account not three units as followed by the 6th CPC.

The pay should fixed taking in following factors.

a) The educational qualifications.
b) The level of responsibility.
c) The skill of the work.

The earlier pay commissions were only taking into account only educational qualifications into account.
Only around 8 to 9 % of the total Govt revenue collection is spent on wages of Central Government employees, compared to 20% to 25% of the revenue spent on wages in private sector.
The cost of living (prices of essential items and other items) has gone by over 250% during last 10 years, compared to 113% DA. The prices are continuously rising.

The Government is a model employer, hence the wages should be provided with the needs and to attract the talented and skilled persons.

2) Lack of promotions and better increment rate.
Today there are persons who have not even got two promotions in his entire career, The MACP scheme is not that much effective, lack of promotions in Central Government sector compared to IT and BT sectors.
One should get five promotions in promotional hierarchy during his service to motivate him to work more. As the Government employee put more and more service, he will be more trained to perform his duties in a better befitting manner. Thus the Government is more beneficial as good quality of work can be expected of him.

The family responsibility will increase with age. There should be adequate financial protection for him, the better rate of increment should motivate him to work more from the present 3% to 5%. On promotion one should get a minimum salary increase of Rs 3000/- per month as he will perform higher duties.

3) Equal Pay for Equal work.
For the same post which include similar duties and responsibility. There are different pay scales/ Grade Pay existing for same nature of duties and similar recruit qualifications. This anomaly should be rectified.
Grant of Grade Pay Rs.4800 to all Supervisors cadre. The gazetted Group “B” post should start from Rs 5400/- GP.

4) Non-filling up of vacant posts and increased work load
In 1990 the Population of the country is 85 crores and the Central Government Employees strength is 40 lakhs in the year 2014 population of the country is 125 crores, whereas the Central Government Employees strength is just 31 lakhs.

Non-filling up of vacant posts has resulted in increased work load on the existing employees. The strength of Central government employees should increase considerably.

5) Allowances to be paid as per market rate:
The house rent allowance should be from Rs 7000/- per month to Rs 55,000/- per month. All allowances such as Tour DA, OTA, Night Duty, CEA (tuition fees) , Cashier Allowances, etc should be increased by three times.

The all allowances should also be paid net of taxes which has been examined by 5th CPC in para no 167.
The staff side (JCM) has represented well the above important issues of the Central Government Employees before the 7th CPC, we sincerely hope the 7th CPC will address and resolve the above issues.
Let us wait patiently for the 7th CPC to submit its report and then we can deliberate on the report and do the needful action.
Source: www.karnatakacoc.blogspot.in

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