Dear Comrades,
The main demands of the Staff Side (JCM) which led to declaration of the 11th July
strike is the revision of the NPS, minimum wage, fitment formula, allowances
and pension cases etc. this is due to lowest wage hike of just 14%
recommended by the 7th CPC.
Under the 7th Pay
Commission slab – which was implemented ten years after the previous pay
commission the salaries of the government employees saw a marginal rise of just
14% . The basic pay under the 7th CPC the minimum wage
was increased to Rs 18,000 from Rs 7,000 (2.57 times) while the salary of
the senior government officials has gone up to Rs 2.50 lakh from Rs 90,000(2.77
times).
The minimum wage was
increased by 2.57 times but in actual terms this increase is of just Rs 2250/-
in 7th CPC, while taking into account of 125% DA was merged
this due to rising inflation and price rise already the CG employees wage
factor was 2.25 time, that is basic of Rs 7000/- plus DA of 125% of Rs 8750
works out to Rs 15750/- , staff side had already demanded for a hike of more
than three times which is Rs 26,000 per month.
Comparison of earlier
wage hike we can observe that the fitment factor of 2.57 times is
the lowest comparing to other pay commissions. If we make a study of earlier
pay commission.
|
Pay Commission
|
Year
|
Minimum wage old
|
Minimum wage revised
|
Increase
|
|
2nd CPC
|
1959
|
Rs 55/-
|
Rs 80/-
|
1.45 times
|
|
3rd CPC
|
1973
|
Rs 80/-
|
Rs 196/-
|
2.45 times
|
|
4th CPC
|
1986
|
Rs 196/-
|
Rs 750/-
|
3.82 times
|
|
5th CPC
|
1996
|
Rs 750/-
|
Rs 2550/-
|
3.40 times
|
|
6th CPC*
|
2006
|
Rs 2550/-
|
Rs 7000/-
|
2.74 times
|
|
7th CPC
*
|
2016
|
Rs 7000/-
|
Rs 18000/-
|
2.57 times
|
* The minimum
qualification required at lower level appointments from the year 2008 has been
revised from 8thpass to 10th pass (SSLC) as per the
6th CPC recommendations, hence the minimum wage should increase
by 25% compared to earlier pay commissions.
The minimum wage has
increased considerably due to price inflation from 4th CPC
(1986) onwards the average wage hike is 3.32 times. During the period
1946 to 1972, the financial position of the Central Government was not that
good. The financial position of the Central Government has been improving
from the 4th CPC onwards that is from 1986 onwards, the pay
fixation depends on the paying capacity of the Central Government. The
revenue collection of the Central Government has increased especially from last
few years. The revenue expenditure in respect of salaries of Central
Government employees is just under 10% of the Central Government revenue.
In respect of the many State Governments the revenue expenditure towards
salaries is around 20%. Whereas the Central Government is spending just 10% of
the revenue collection on salary head.
The wages of CG employees
are determined based Dr. Aykroyd 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 market prices. Even if we adopt the
retail prices of The Directorate of Economics & Statistics Department
of Agriculture & Cooperation Ministry of Agriculture Government Of India
New Delhi of the month of July 2016 the minimum wage works out to
Rs 24,000/ which is 3.42 times increase. The 7th CPC has also
adopted Dr. Aykroyd formula for the computation of the minimum wage and
fixed at Rs 18000/- and thereafter the fitment formula is calculated.
Fitment formula = Minimum
wage Rs 18000 / Rs 7000 = 2.57
The Staff Side (JCM) had
demanded the fitment formula of 3.72 that is Rs 26000/ Rs 7000 as
on 1st Jan 2014. Whatever angle we look the 7th CPC
has cheated us on the minimum wage and fitment formula compared to the earlier
pay commission this pay commission has given us the lowest wage hike of just
14% compared to last 40 years.
Meanwhile, some reports
suggest that the employees who have been eagerly waiting for higher allowances
under the 7CPC will have to bear three more months of delay to get their
allowances revised . Due to early Budget which is followed by Assembly Elections
in five states, due to which model code of conduct has been imposed, the
government is likely to delay the payment of the higher allowances. The polling
in five states – Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur – will
begin on February 4 and the results will be declared on March 11, after
that only our allowances will be decided.
The financial position of
the Central Government is very good. Even the GDP (Gross Domestic
Product) has shown increase in last few years which is around 7% ,
the Indian economy is fastest growing and placed 7th in
the world ( which is at2,250.987 billions
of $ ), comparing to wages paid in the world our wages are at lower
level. The Government fiscal budget deficit equal to 3.50 percent of the country's Gross Domestic
Product in 2016. Compared to 2008 where the fiscal deficit was
at 7.8 %, but today the fiscal deficit is contained at 3.5%.
This is also a healthy sign of the economic status of the Central Government
financial status, the budget fiscal deficit is always below 4%.
The Central Government
financial position is very good even after demonetization, only a political
decision the Central Government on our demands. Comrades the
Hon’ble Finance Minister has given a given a press statement in media channel’s
that the effect of demonetisation has not taken place on the revenue collection
of the union government, in fact that the revenue collection has increased,
even the revenue of the State Governments has increased considerably, the press
release of the Ministry of Finance on 9/1/2017 has endorsed the
Hon’ble Finance Minister statement.
To avert the 11th July
CG employees strike the Hon’ble Prime Minster had instructed the group of
ministers including Shri Rajnath Singh, Hon’ble Home Minister, Shri Suresh
Prabhu , Hon’ble Railway Minister and Shri Arun Jaitely
, Hon’ble Finance Minister to hold discussions with the Staff Side (JCM)
on 30th June 2016 and the Shri Arun Jaitely , Hon’ble
Finance Minister had published a written assurances in the
Government website on 6th July 2016 leading to
deferment of the strike .
Now comrades seven
months has passed the assurances given by the group of ministers has not been
fulfilled so far, in this connection the NJCA met on 17th January 2017 at New
Delhi. The Confederation was represented by Comrades KKN Kutty, M Krishnan and
MS Raja. Comrades RN Parashar and Giriraj Singh represented NFPE (constituent
of Confederation).
Com. Shiva Gopal
Mishra Staff Side Secretary (JCM) and Com M. Raghavaiah, Chairman Staff Side
(JCM) had a meeting’s with the Cabinet Secretary and Shri
Rajnath Singh, Hon’ble Home Minister on 18th Jan 2017 regarding
the demands of the CG employees as assured by the group of ministers on 30th June
2016.
Shri Rajnath Singh,
Hon’ble Home Minister had once again assured that the issues of CG employees
will be resolved, but no time frame has been fixed for resolving the issues or
any concrete assurances are given on our demands .
The strike is the last
resort for achieving our demands, but we are forced to undertake the strike
action due to following events.
1) The 7th CPC has erred in fixation of the minimum
wage by adopting the wrong prices, and methodology. Thereby the minimum wage
and fixation formula has to be corrected.
2) The
Government has assured our staff side leaders that they will settle the demands
of CG employees in four months’ time, but seven months has lapsed till now
the demands of CG employees are not settled even allowances issue is also not
settled so far.
3) Comrades
, now the revenue collections of the Central Government has increased , the
Central Government has financially capable to accept our
demands of revision of allowance, minimum wage, fitment formula etc., revision
of tax slabs should also take place , the Central Government employees should
benefit as we were serving with dedication the Central Government and
Central Government is a model employer.
Comrades Central
Government has now take a political decision on our demands of revision of
allowance, minimum wage, fitment formula and revision of tax slabs.
For this we have to
struggle and put pressure on the Central Government to accept our
demands. In this circumstance, it should be our endeavor to
campaign more vigorously for the successful strike on 16th March 2017 . Comradely yours,
(P.S.Prasad)
General Secretary
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