Finmin reject claims of inflation due to 7th Pay Commission award

Finmin reject claims of inflation due to 7th Pay Commission award

A salary hike is likely proposed by the Empowered Committee of Secretaries, which has been constituted to look into the recommendations of the 7th Pay Commission for cabinet nod, will not fuel inflation, says Finance Ministry top officials.

“The implementation of these recommendations will not affect inflation. The recommended pay scale has been hiked in line with the increasing size of the budget of government of India,” they told our reporter.
The 13-member body of Empowered Committee of Secretaries, headed by the Cabinet Secretary P K Sinha, who is processing the recommendations of the 7th Pay Commission decided to hand over soon its possible proposal to the the Finance Minister Arun Jaitley for cabinet nod. It is likely to propose a substantial pay hike which could be up to 30 per cent or even more, said officials.

the 7th Pay Commission had recommended a minimum monthly basic salary of Rs. 18,000 and maximum Rs. 2,50,000. A 30 percent increase would translate into minimum basic salary of Rs. 23,400 and maximum at Rs. 3,25,000, respectively.

However, The Empowered Committee is likely to purpose Rs 2,70,000 as highest basic pay and Rs 24,000 as the lowest, they also likely to recommend for doubling of existing rates of allowances and advances, the officials added.

The government in its annual budget has provisioned Rs 70,000 crore to meet the demand for implementation of 7th Pay Commission for central government employees which will take effect from January 1, 2016, while the allowances would be paid from the date of implementation.

“Central government employees could get the revised pay and allowances from their August salaries and arrears are to be paid ahead of festive season of Dussehra in one installment,” the officials confirmed.
The Economists fear that the 30 percent salary hike would fuel inflation as the pay commission recommendations will also have a bearing on the salaries of the state government staff.

So quite understandably, the government employees are happy as pay increase will enable them to increase their consumption and meet some of their unmet demand.

At the same time, there is a widespread fear that the pay commission recommendations are likely to increase inflation which will reduce the purchasing power of money.

RBI Governor Raghuram Rajan earlier said the 7th Pay Commission recommendations will not upset fiscal maths as additional expenditures will be offset by either surplus revenues or expenditure cuts.

Finance Minister Arun Jaitley earlier also said hat he was not worried about fiscal deficit on implementation of the pay commission’s recommendations. He said that the Pay commission award increase government expenses by Rs 1.02 lakh crore but that would not be a problem.

“The government has sufficient resources. Implementing the 7th Pay commission award will not affect inflation.” the official told our reporter.

The officials said that apart from hiking pay, the government is also likely to propose some administrative reforms, to be implemented in phases.

TST

AIBOA Strike on 12th and 13th July 2016

AIBOA  Strike on 12th and 13th July 2016

ALL INDIA BANK EMPLOYEES’ ASSOCIATION
Singapor Plaza, 164, Linghi Chetty Street, Chennai-600 001
ALL INDIA BANK OFFICERS’ ASSOCIATION
A.K.Nayak Bhavan, 14, 2nd Line Beach, Chennai-600 001

CIRCULAR TO ALL UNITS

16th June, 2016

Dear Comrades,

AIBEA-AIBOA decide to plunge into immediate action to oppose attempts to denigrate Public Sector Banks and to protest against proposed merger and consolidation of Banks with a view to divert the people’s attention from the Himalayan bad loans in Banks .

12th July, 2016 – All India Strike in 5 Associate Banks

13th July, 2016 – All India Strike in ALL BANKS

All our units and members are aware of the increasing attacks being heaped on the public sector banks and the challenges faced by the PSBs.

In the name of banking sector reforms, the attempt is to privatise the Banks and hand them over to the private corporates to enable them to further loot the precious savings of the people.

The attempt is to consolidate the Banks to make them bigger with a view to globalize them instead of expanding the Banks and reach the common people within our country.

Already our Banks are bleeding due to alarming increase in bad loans, thanks to the deliberate default by the corporates and big business enterprises. Instead of taking tough measures to book the culprits and recover the loans, efforts are taken to hand over the banks to very same defaulters.

It is very clear that all their talks of banking reforms and proposals of merger and consolidation are only a ploy and game plan to divert the attention of the people from the massive bad loans in the Banks.

Our country needs strong public sector banks and not necessarily big banks or global-sized banks. Our country needs banking expansion and not consolidation of banks and shrinkage of banking services to people.

The focus should be the alarming increase in bad loans to the tune of about R. 13 lac crores. The efforts should be to recover the money by taking stringent measures and not hush it up through provisions, write-offs, CDRs and SDRs.

If the loans have been sanctioned wrongly, action should be taken on the concerned Executives. If the borrower has cheated the Banks, criminal action should be taken against the defaulter.

Providing for the bad loans, clean-up of Balance Sheet and making the Banks to incur the losses is not the solution to the problem. It is obvious, all these are only diversionary tactics to escape from the accountability for the huge bad loans.

Kingfisher Mallya is only the tip of the iceberg. There are many more sharks in the ocean of bad loans in the Banks. Why the list of defaulters is not being published by them? Why criminal action is not taken on the willful corporate defaulters? Why all velvet treatment to them? Why the attempt to convert the bad loans as equity investment in these defaulter companies? Is it the corporate governance and good governance policy of the Government ?

In IDBI Bank, 10 years ago, about Rs.9000 crores of bad loans were taken out of their books. Now another Rs. 19,000 crores is the bad loan. Instead taking action to recover these bad loans, the Government wants to privatise and sell the Bank to the very same private sector which is responsible for these huge loan default in IDBI Bank.

Hence AIBEA and AIBOA have decided to plunge into immediate action to oppose attempts to denigrate Public Sector Banks and protest against proposed merger and consolidation of Banks with a view to divert the people’s attention from the Himalayan bad loans in Banks.

Programmes

20th June	Demonstrations in all centres all over the country
30th June	Dharna in all State Capitals
12th July	All India Strike in the 5 Associate Banks
13th July	All India Strike in all the Banks

Comrades, while we are proud that we fought and achieved nationalisation of Banks, it is equally our duty to fight against the attacks on public sector banks. People’s money cannot be allowed to be looted like this. Public Sector Banks should be saved. They are nation building institutions. They must remain so.

It is time to move, time to fight. We exhort all our units and members to carry out the programme successfully and make the strikes a total success.

With greetings,

Yours comradely,

S. NAGARAJAN
GENERAL SECRETARY
AIBOA

C.H. VENKATACHALAM
GENERAL SECRETARY
AIBEA

Source : http://www.aiboa.org/

7th CPC: Secretaries group submits final report to Fin Min; Cabinet approval in 15 days

7th CPC: Secretaries group submits final report to Fin Min; Cabinet approval in 15 days

New Delhi: It’s good news for central government employees eagerly waiting for the implementation of 7th Pay Commission.

The implementation of 7th Pay Commission appears to be a matter of a few days now. As per Dainik Jagran report, the Cabinet Secretary met the PMO officials on Wednesday and apprised them about the secretaries panel’s recommendations on the salary and allowances hike recommended for central government employees.

The secretaries panel reviewing the 7th pay commission’s recommendations have submitted its report to the Finance Ministry. The Finance Ministry will prepare a note and present it before the Cabinet in the next 15 days.

With the threat of strike by central government employees looming large, the Cabinet is expected to take a prompt decision on the recommendations resulting in notification.

The salary hikes recommended are expected to apply from July.

Read at: Zee News

7th Pay Commission – Non-settlement of demands – 11th July Indefinite Strike – NJCA writes to PM for intervention

7th Pay Commission – Non-settlement of demands – 11th July Indefinite Strike – NJCA writes to PM for intervention

Ph.: 23382286
National Council (Staff Side)
Joint Consultative Machinery
for Central Government Employees
13-C, Ferozshah Road, New Delhi – 110001
EMail: nc.jcm.np@gmail.com

NO.NC/JCM/2016/CS/PM

Dated: 14.06.2016

Hon’ble Prime Minister of India,
152, South Block,
Raisina Hill,
New Delhi-110011
Respected Sir,

Sub: Non-settlement of our demands – Decision to go on “Indefinite Strike” commencing from 11.07.2016 – Request for your intervention and support.

I write this on behalf of the apex level body of all the Central Government Employees Organizations who are participating in the Negotiating Forum; called the Joint Consultative Machinery. The JCM as a Negotiating Forum was conceived and implemented in 1966 after the prolonged discussions with the Staff Associations and the Federations in the Central Services in the wake of first industrial action in 1960. The idea of setting up the JCM was in realization of the absence of a platform to discuss, deliberate and settle the demands/issues/grievances/problems of the Civil Servants. Up to 1995-96 the JCM, which has a three level negotiating platform was functioning well, meetings were regular. However, after the promulgation of the new recognition Rules in 1993, the meetings at the Ministry level became few and far between and at the national level, the deterioration stepped in a little latter. The National Council, which was to meet thrice in a year did not meet even once in a year. The last meeting of the National Council was held on 15.05.2010 The organizations participating in the JCM were demanding the meeting to be held, but the pleas were ignored by the successive Cabinet Secretaries. The Charter of Demands (copy enclosed), in pursuance of which the strike is decided to be organized, has arisen due to long neglect of the grievances of the employees/workers.

When the 7th CPC was set up in February, 2014, no announcement for Interim Relief or DA Merger was made by the then government, which had all along been the practice whenever the government had set-up the Pay Commissions earlier. We fully co-operated with the Commission, submitted a memorandum detailing the issues and explained the reasoning behind each demand. The 7th CPC submitted report on 19.11.2015 to the government. In our communication dated 10.12.2015 (copy enclosed), we sought
improvement/amendment over the recommendations of the 7th CPC and explained our demands both in writing and orally before the Empowering Committee. Most of the meetings were monologues except perhaps the last one. What we have understood, is that, the Empowering Committee might not come forward to make any major changes. A fruitful meeting is supposed to be a dialogue where both parties at the negotiating table exchange their understanding, views and difficulties and reach a mutually acceptable position. In 1998, when the then Cabinet Secretary decided not to have such a dialogue with the Staff Side and unalterably issued the Government Notification on the 5th CPC recommendations, the then government did set up a committee of Group of Ministers. The GoM held discussions on all issues and averted the strike action. The 1998 situation establishes, without an iota of doubt, that, the Staff Side has always taken reasonable stand on all the issues and paved way for settlement.

The one and only recommendation made by the 7th CPC was to provide some relief to the past old pensioners. The Department of Pension & Pensioners’ Welfare has unfortunately recommended to the Cabinet Secretary that, even that recommendation must be rejected on the specious plea that the requisite relevant records might not be available.

These developments have caused anguish, anxiety and anger amongst the workers. It is now more than six months that the Commission submitted its report. If the government comes forward to hold a meaningful discussion with the leaders of the NJCA, a mutually acceptable settlement can be brought about and the impending strike, slated to commence from 11.07.2016, can ultimately be avoided.

We seek your co-operation, supports and intervention in the matter

Yours faithfully,

sd/-
(Shiva Gopal Mishra)
Secretary(Staff Side),
NC/JCM

Source : National Council (Staff Side)

Improve VII CPC recommendations. Revise Central Govt. employees wages immediately

Improve VII CPC recommendations. Revise Central Govt. employees wages immediately.

In the face of the unprecedented rise in the inflation of the Indian Economy during 2006-16, the Central Govt. employees demanded the Government to affect wage rise, for the emoluments fixed on the basis of the 6th CPC was incapable of meeting the both ends of an employee. Though under threat the then Government conceded the demand for setting up of the 7th CPC, they refused to grant any interim relief or DA merger, which alone would have mitigated the difficulties of the low paid employees.

When the NDA Government came to power, the NJCA & CCGGOO approached them also with a request that the difficulties of the low paid employees in Central Government must be appreciated and the demand for Interim Relief or DA merger be conceded. The NDA Government too did not respond to the plea made by the NJCA & CCGGOO.

The 7th CPC was to submit its report in August, 2016. However, at the intervention of the Government, the report was further delayed and it ultimately reached the Government only in November, 2015.
The report of the 7th Central pay commission was totally disappointing as it did not address any of the issues projected before them in a proper manner and most of the demands were rejected sans reasoning and logic. The increase they recommended was a paltry 14%, the lowest any Pay Commission had ever suggested.
Except setting up an Empowered Committee of Secretaries, the Government did not do anything so far on the report. It is now more than six months the report is with the Government. Normally the revised allowances which form part and parcel of the salary of the employees are granted with prospective effect i.e. from the date of the issue of the orders. The delay in taking decision on the 7th pay commission report will rob the employees of the increased allowances for ever.

The Staff side had been pursuing to have a meaningful negotiation and settlement of the issues. Except hearing the leaders of NJCA & CCGGOO, the empowered Committee did not go further. It acted as if it was powerless and the final decision will have to be taken by the Government. At the request of the Cabinet Secretary on 1st March, 2016 the strike action which was to commence in April, 2016 was deferred.
The determination of the Minimum wage on the basis of Dr. Aykhroyd formula enunciated in 1957 to which the Government of India was a party is the most significant issue. A right settlement thereon will have far reaching impact in the wage determination of the entire working class in the country. The confrontation is between the forces who wanted India to be the destination for cheap labour and others who fight against the exploitation.

The new Contributory Pension scheme introduced by the Government in 2004 has made one third of the Civil servants unsure of their entitlement at the evening of their life even though they were to contribute huge sums from their wages every month compulsorily. The PFRDA bill became an Act in the country as the members of Parliament both belonging to NDA and UPA voted in favour of the loot of the employees. Even the recommendation made by the Standing Committee of the Parliament to provide for a minimum guaranteed annuity pension was rejected when the Bill was passed. The other issue which must have a satisfactory settlement is about the contributory pension scheme.

The new pension scheme is a curse on the employees. As far as employees are concerned, they are worried that in future they may be deprived of their pension in total. They are also worried that there is no guarantee of either family pension or gratuity as per 7th pay commission recommendations. Scrap the PFRDA Act and NPS and grant Pension/family Pension to all CG employees under CCS (Pension) Rules, 1972 & Railways Pension Rules, 1993.

The one and only positive recommendation made by the 7th CPC was to provide some relief to the in the pension entitlement of the past pensioners. The Department of Pension & Pensioners’ Welfare has unfortunately recommended to the Cabinet Secretary that, even that recommendation must be rejected on the specious plea that the requisite relevant records might not be available.

The central government employees are very much annoyed and anxious with the 7th pay commission recommendations. As there had been no fruitful negotiations or discussions and having realized that the Government has no intention to settle the Charter of demands, the NJCA & CCGGOO have served strike notices. The indefinite strike will commence on 11th July, 2016, if no satisfactory settlement is brought about on the charter of demands. Prime Minister should intervene immediately for improvement of VII CPC recommendations and revision of Central Govt. employees wages.

Source-http://aidrdotoa.blogspot.in/

7CPC: Good news for government employees! Secretary Panel submits report; recommendations implementation soon

7CPC: Good news for government employees! Secretary Panel submits report; recommendations implementation soon

New Delhi,  There is a good news for central government employees who have been ardently waiting for the implementation of 7th Pay Commission. According to a Dainik Jagran report, “The Cabinet Secretary met the PMO officials on Wednesday and apprised them about the secretaries panel’s recommendations on the salary and allowances hike recommended for central government employees.

The secretaries panel reviewing the 7th pay commission’s recommendations have submitted its report to the Finance Ministry. The Finance Ministry will prepare a note and present it before the Cabinet in the next 15 days.” Whereas according to a India.com report, “The 13-member Committee of Secretaries headed by the Cabinet Secretary Pradeep Kumar Sinha is likely to submit its final report on the recommendations proposed by the 7th Pay Commission on June 18. After panel submits its report, Cabinet is expected to give the green signal for implementation of the revised recommendations. However the government is planning to implement the recommendation made by the 7th Pay Commission regarding the salary hike of government employees from August 1.” According to latest reports, Government staff will get their six months arrears in one installment in the month of October. It is being said that Government will implement Seventh Pay Commission most likely from July. Employees will get increased payout in their July salary and it will be credited in their account on August 1. The recommendations when implemented would have bearing on remuneration of 47 lakh central government employees and 52 lakh pensioners. Subject to acceptance by the government, the recommendations will take effect from January 1, 2016.

OneIndia News