Mr.P.S.Prasad, the General Secretary of the Confederation of Central Government Employees and Workers Karnataka State has raised a valid question and has also explained clearly where the 7th pay commission went wrong. which the central government union leaders probably missed to advocate.

He has stated, the 7th pay commission while calculating the minimum wage of Central Government Employees has arrived at Rs 18,000/- the 7th CPC has erred in prescribing provision to cover education, recreation, ceremonies, festivals and medical expenses has been moderated to 15 percent against the provision of 25% .

Supreme Court’s ruling in the Raptakos Brett Vs Workmen case of 1991, the Hon’ble Supreme Court delivered a historic judgement and directed that children’s education, medical requirement, minimum recreation including festivals/ceremonies, provision for old age, marriage etc. should further constitute 25% of the minimum wage and be used as a guide in fixation of minimum wage.

If we go back in history, In 1991, the Hon’ble Supreme Court delivered a historic judgement and directed that children’s education, medical requirement, minimum recreation including festivals/ceremonies, provision for old age, marriage etc. should further constitute 25% of the minimum wage and be used as a guide in fixation of minimum wage.

The Hon’ble central Minister of Labour & Employment Shri Bandaru Dattatreyaji in his press statement on 24 September 2016 has stated in Understanding Minimum Wages and Bonus article as follows :

The norms recommended by the Indian Labour Conference, in 1957, fox fixing the minimum wages are :

(a) consumption units for one wage earner
(b) minimum food requirements of 2700 calories per average Indian adult;
(c) clothing requirements of 72 yards per annum per family;
(d) rent corresponding to the minimum area provided for under Government’s Industrial Housing Scheme; and
(e) fuel, lighting and other miscellaneous items of expenditure to constitute 20% of the total minimum wage.

If the above provisions alone had been adopted by the 7th pay commission, the minimum wage would have increased by more than 10% and worked out to Rs 20,000/-. The fitment formula will work out to 2.86. If the entire minimum wage is recalculated based on actual retail prices as on July 2015 without applying average of 12 months and correct methodology the minimum wage would be Rs 26,000/ and fitment formula would be around 3.5.

He further, reiterates, The minister’s statement should be applied by the Government in true spirits and the minimum wage and fitment formula should be enhanced accordingly.

Source: Karnatakacoc

The post 7th Pay Commission : Minimum Wage and Fitment Formula : Karnataka coc Calls it Farce appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Comrades,
Now the Government has announced the One Rank One Pension Scheme for Defence veterans. Its Highlights are as follows.

The benefit will be given with effect from 1st July, 2014. Arrears will be paid in four half-yearly instalments. All widows, including war widows, will be paid arrears in one instalment.

To begin with, OROP would be fixed on the basis of calendar year 2013. Pension will be re-fixed for all pensioners retiring in the same rank and with the same length of service as the average of minimum and maximum pension in 2013. Those drawing pensions above the average will be protected.

In future, the pension would be re-fixed every 5 years.

Now we should expect the 7th CPC report to be submitted in next three months( after Bihar Elections)

Now the Defence veterans are now having five years wage revision. The government has allowed Central Public Sector units to revise wages of all non-executive employees every five years instead of 10 years. Bank employees are having five years wage revision.

Why not Central Government employees have the same five years wage revision provided to others and have a permanent wage review body. Now our demand of Central Government employees by the staff side JCM for date of effect from Jan 2014 is fully justified by Government issuing orders for others for five years wage revision as in case of Defence veterans, Bank employees and Central Public Sector.

Comradely yours

(P.S.Prasad)
General Secretary

Source: http://karnatakacoc.blogspot.in/

The post Central Government Employees demand of date of effect from Jan 2014 is fully justified. appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

The General Secretary of Karnataka COC Shri P.S.Prasad said in the article published in his official blog on 14.8.2015 that the real wage hike the Central Government employee is expecting is more than 80% wage hike. We reproduced full content of the article and given below for your ready reference.

CLICK HERE FOR DETAILS

Comrades,

There are various reports of wage hike from 15.79 % to 40% in news papers/social media / web sites. It is once again clarified that none of these are correct. If we go through the statement of the Finance Minister in Parliament which says the salary outgo of central government employees will go up by 9.56 per cent to Rs 1,00,619 crore in current fiscal. The pace will increase further in 2016-17 at 15.79 per cent to Rs 1.16 lakh crore with the likely implementation of the 7th Pay Commission award, the outgo towards salary will further rise in 2017-18 to over Rs 1.28 lakh crore.

The budget 2015-2016 : if go through the budget of 2015 -16 http://indiabudget.nic.in/ub2015-16/rec/tr.pdf expected tax revenue is 14,49,490.56 (In crores of rupees).

The Central Government employees wage bill is around Rs 1,00,000 crore. The actual wage bill is now at just 8.5 % of the revenue collection please see . http://finmin.nic.in/pru/BROCHURE/brochure2012-13.pdf.

The budget allocation at just 9.56 % as projected is not the real wage increase by the 7th CPC the Central Government employee is expecting, may be the 7th CPC may give higher wage increase than the budget allocation. If we go through the budget expenditure of 2008-09 when the 6th CPC was implemented the 16% of the total revenue was spent as wages.

The Government being model employer should pay its employees the real wages. The real wage hike the Central Government employee is expecting is more than 80% wage hike. Due to following factors. even the 5th CPC the wage increase was about 40% and 6th CPC recommendations the wage increase was about 40% even after merger of DA in 2004, hence the wage increase during from 2004 & 2006 together was more than 60%. Now we should hope for better wage hike from the 7th CPC.

a) The actual price rise in last decade is more than 250% , DA we got is just 119% as on 1/7/15.

b) The DA merger has not taken place as on 1/1/14 which would have given a wage hike of 25%.

c) All Government agencies such as Banks, Public sector undertakings, LIC, State Governments etc are having wage revision in 5 years, we are having only wage revision of 10 years, the price rise is eroding the wage hike in just a few years.

Let us fight for the real wage hike.

Source: http://karnatakacoc.blogspot.in/

The post Real wage hike the CG employee is expecting is more than 80% wage hike – Karnataka COC appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

7th CPC Report & 2nd September 2015 Strike

To
All Affiliates
COC Karnataka

Comrade,
The latest information is that the 7th CPC report will be submitted only in last week of September, we should not be too worried about this as the 7th CPC report was expected to submit its report in first week of September , the delay is only by few days only and that too the 7th CPC period is upto end of September 2015 as the 7th CPC was constituted on 28th Feb 2014 and allowed 18 months time the 7th CPC has started functioning only in April 2014 onwards.

The COC Karnataka meeting held on 4th August 2015 at RMS office has decided to participate in the 2nd September 2015 strike program as per the directions of the Confederation of CG Employees New Delhi. Now due to many reasons the 7th CPC report release has been postponed, now let us to utilise the postponement period and put additional pressure on the 7th CPC and the Government of India to accept our justified demand’s of Central Government Employees such as minimum wage of Rs 26,000/- with effect from Jan 2014, fitment formula of 3.72 , five promotion scheme , date of effect of the 7th CPC from 1/1/2014 etc.

Comrades if the 2nd September 2015 strike by the Central Government Employees is a success, then we can get more financial benefits from the 7th CPC and the Government of India apart from other important issues of unwanted labour reforms will be solved.

I request all comrades to prepare and educate the grass root leaders and employees on our demands. Conduct gate meetings / general body meetings from 11th August onwards.

Comradely yours

(P.S.Prasad)
General Secretary

Source: http://karnatakacoc.blogspot.in/

The post 2nd September 2015 Strike – Additional pressure on the 7th CPC to accept our justified demands – COC Karnataka appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

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

The post 5 Major issues of the Central Government Employees which are projected for a serving employee to the 7th CPC appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Shri.P.S.Prasad General Secretary of COC Karnataka expressed his views about the calculation of fitment formula and computation of minimum wage of 7th CPC on its blog. He hinted in this article that most of the pay commissions have accpeted 70% of the staff side demand. Especially NC JCM Staff Side demands to fix minimum wage at Rs.26000. We reproduced the complete article and given below for your information…

Minimum Wage and Fitment Formula.

The Staff Side (JCM) has calculated minimum wage as on 1st Jan 2014 as per the Dr. Aykroyd formula as Rs 26,000/- taking into following prices.

The 7th CPC also would adopt Dr. Aykroyd formula for the computation of the minimum wage and thereafter the fitment formula is calculated.

Fitment formula = Minimum wage / Rs 7000

The Staff Side (JCM) has calculated the fitment formula of 3.72 that is Rs 26000/ Rs 7000 as on 1st Jan 2014.

The 7th CPC has hinted that the date of effect of the 7th CPC shall be from 1st Jan 2016. In this context the minimum wage and fitment formula, should be as follows.

The increase in prices between 1st Jan 2014 to 1st July 2015 is 18% as the DA as on 1st Jan 2014 was 100% and likely DA as on 1st July 2015 is 118%, In actual terms the retail prices have increased by over 25%. Even considering the 18% hike in prices from 1st Jan 2014 to 1st July 2015 and adding 7 % likely hike in prices for the period 1st July 2015 to Jan 2016 it works out to 25% hike in minimum wage.

Minimum wage calculated by the Staff Side (JCM) using Dr. Aykroyd formula as on 1st Jan 2014 was Rs 26,000/-

Adding 25% hike in prices between 1st Jan 2014 to 1st Jan 2016, the minimum wage should be Rs 32,000/- and accordingly the fitment formula should work out to 4.5 times.

If we calculate the minimum wage as on 1/1/2016 using the Dr. Aykroyd formula taking into account the current retail prices in Bangalore. It works out Rs 27,000/- and fitment formula as 3.85.

There are many rumors on the fitment formula and minimum wage, actually the 7th CPC has made only a draft and they will calculate the actual fitment formula and minimum wage only next month taking into the account the prices as on 1st July 2015 and adding weight age for the period 1st July 2015 to Jan 2016 and work out the fitment formula and minimum wage.

If any fitment formula less than 3.85 and minimum wage of Rs 27,000/- it will be denial of right wages for CG employees.

During the 6th CPC the Staff Side (JCM) has calculated minimum wage as on 1st Jan 2006 as per the Dr. Aykroyd formula as Rs 10,000/-, where as the 6th CPC had provide the minimum wage as Rs 7000/- and the 6th CPC had fixed fitment formula of 1.86. Most of the pay commissions have accepted 70% of the staff side demand. We sincerely hope this 7th Central Pay Commission will also calculate the right wages and fitment formula for the Central Government Employees.

Source: www.karnatakacoc.blogspot.in

The post 7th Pay Commission Fitment Formula and Minimum Wage Calculations – Karnataka COC appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.