GOVERNMENT ANNOUNCEMENT ON MINIMUM WAGES Etc IS A MOCKERY AND DECEPTION COMBAT THROUGH MASSIVE STRIKE ON 2nd SEPTEMBER 2016

GOVERNMENT ANNOUNCEMENT ON MINIMUM WAGES Etc IS A MOCKERY AND DECEPTION COMBAT THROUGH MASSIVE STRIKE ON 2nd SEPTEMBER 2016

CITU Press Statement

30th August 2016

The Group of Ministers headed by the Union Finance Minister Shri Arun Jaitley, and comprising Labour Minister, Petroleum Minister and Power Minister held a Press Conference today on 30th August 2016 to tell the nation that the Govt had accepted major demands of the trade unions and hence they should not go in for strike on 2nd September 2016. CITU considers the statement of the Govt nothing but a mockery meted out to workers.

The Statement of the Finance Minister that the Govt has accepted the recommendation of the Minimum Wage Advisory Committee is totally untrue. The Minimum Wage Advisory Committee met on 30th August 2016 at 3 pm and ended inconclusive while all the workers’ representatives reiterated their demand of Rs 18000/-. Such mis-statement by Govt is a deliberate ploy to mislead and confuse the workers before the strike.

Govt’s offer of a floor level minimum wage of Rs 350/- per day, i.e., Rs 9100/- per month (26 days) is cruel joke by the Govt making a posture of accepting the demands of workers. Trade unions reject such a mockery in the name of offer with the contempt it deserves.

Releasing previous year’s bonus for the central govt employees is not something about Govt’s magnanimity. Govt did so to implement the enhanced ceiling as per the Payment of Bonus Act for them, which they should have done much earlier. Now they have released in order to deceptively pose that the Govt has been considering so many things. So far as the court cases on implementation of Payment of Bonus Act is concerned, it is the responsibility of the central govt to defend and implement the Act passed by Parliament, for which they cannot claim any special credit. But this NDA Govt should better note that it is the BJP Govt in Madhya Pradesh, Rajasthan etc have withheld implementation of the Bonus Act for the year 2014-15 on their own citing the High Court Orders in Kerala and Karnataka which were not binding on them. That makes the real intention clear.

Govt also stated that they will issue advisory to state governments to ensure registration of trade unions within 45 days. Advisory is not having binding impact. What is required is to make statutory arrangement. But in their proposals on labour reforms, Govt has already put so many conditions that would make registering trade union virtually impossible.

On being asked in the press conference about the right to minimum wages for the central Govt Scheme workers like Anganwadi, Mid-day-meal, ASHA etc , The Finance Minister brushed the questioner aside saying that scheme workers are all volunteers and not workers. He must recall that the 46th Indian Labour Conference held during NDA regime has unanimously reiterated the recommendation of the previous ILC that the Scheme workers should be recognized as workers with right to minimum wages and attendant benefits.

The Minister further stated that the scheme workers will be covered by the Social Security benefits for which a committee will be constituted. Almost same statement was uttered by him one year before on 26-27 August 2015, prior to previous general strike. Nothing has been done yet. Rather ESIC has offered extremely partial ESI benefit to Anganwadi and mid-day-meal workers on payment of Rs 250/- per month which amounts to 8.33% of the paltry earning of the anganwadi workers, 16% of the anganwadi helpers and 25% of the mid-day-meal workers; whereas the workers covered by ESIC Act are to contribute 1.75% of their wage for full ESI benefit. Such proposal is dubiously designed to deny them the social security benefit and this deceptive game is going on.

In reality, Govt’s announcement in the press conference on the charter of demands of the workers is nothing but a hoax and must be rejected outright. This is game to confuse and mislead people just on the eve of strike. Such deceptive and dubious ploy of the Govt must be combated through making the 2nd September 2016 a massive success.

Source: CITU Centre

Changes in the Payment of Bonus Act will benefit thousands of Central Government Employees

Changes in the Payment of Bonus Act will benefit thousands of CG employees

The Payment of Bonus (Amendment) Bill, 2015 notified:Increase in the Eligibility Limit under clause (13) of Section 2 and Calculation Ceiling under Section 12 of the Payment of Bonus Act, 2015

The Payment of Bonus (Amendment) Bill, 2015 was passed by the Parliament in the just concluded Winter Session of the Parliament. The Payment of Bonus (Amendment) Act, 2015 has been published in the Gazette of India, Extraordinary on 1st January, 2016 as Act No. 6 of 2016. The provisions of the Payment of Bonus (Amendment) Act, 2015 shall be deemed to have come into force on the 1st day of April, 2014.

The Payment of Bonus (Amendment) Act, 2015 envisages enhancement of eligibility limit under section 2(13) from Rs.10,000/- per month to Rs.21,000/- per month and Calculation Ceiling under section 12 from Rs. 3500 to Rs.7000 or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher. The Payment of Bonus (Amendment) Act, 2015 also mandates previous publication of draft subordinate legislations, framed under the enabling provisions under the said Act, in the Official Gazette for inviting objections and suggestions before their final notification.

The Government has been receiving representations from trade unions for removal of all ceilings under the Payment of Bonus Act, 1965. It is also one of the demands made by them during the country-wide General Strike held in February, 2013 and September, 2015. As the last revision in these two ceilings were made in the year 2007 and was made effective from the 1st April, 2006, it was decided by the Government to make appropriate amendments to the Payment of Bonus Act, 1965.

These changes in the Payment of Bonus Act, 1965 will benefit thousands of work force.

PIB

Payment of Bonus Act Amendment Gazette Notification

Payment of Bonus Act Amendment Gazette Notification

The Gazette of India
EXTRAORDINARY
PART II — Section 1

PUBLISHED BY AUTHORITY

No. 6] NEW DELHI, FRIDAY, JANUARY 1, 2016/PAUSHA 11, 1937 (SAKA)

Separate paging is given to this Part in order that it may be filed as a separate compilation.

MINISTRY OF LAW AND JUSTICE
(Legislative Department)

New Delhi, the 1st January, 2016/Pausha 11, 1937 (Saka)

THE PAYMENT OF BONUS (AMENDMENT) ACT, 2015

NO. 6 OF 2016

[31st December, 2015.]

An Act further to amend the Payment of Bonus Act, 1965.

BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:—

1. (1) This Act may be called the Payment of Bonus (Amendment) Act, 2015.
(2) It shall be deemed to have come into force on the 1st day of April, 2014.

2. In section 2 of the Payment of Bonus Act, 1965 (hereinafter referred to as the principal Act), in clause (13), for the words ‘‘ten thousand rupees’’, the words ‘‘twenty-one thousand rupees’’ shall be substituted.

3. In section 12 of the principal Act,—

(i) for the words ‘‘three thousand and five hundred rupees’’ at both the places where they occur, the words ‘‘seven thousand rupees or the minimum wage for the scheduled employment, as fixed by the appropriate Government, whichever is higher’’ shall respectively be substituted;

(ii) the following Explanation shall be inserted at the end, namely:—

‘Explanation.—For the purposes of this section, the expression ‘‘scheduled employment’’ shall have the same meaning as assigned to it in clause (g) of section 2 of the Minimum Wages Act, 1948.’.

4. In section 38 of the principal Act, for sub-section (1), the following sub-section shall be substituted, namely:—

‘‘(1) The Central Government may, subject to the condition of previous publication, by notification in the Official Gazette, make rules to carry out the provisions of this Act.’’.

DR. G. NARAYANA RAJU,
Secretary to the Govt. of India.

Authority: http://egazette.nic.in/

Click the order

Payment of Bonus Act & PLB to Railway Employees – A Brief Note By KV Ramesh

Payment of Bonus Act & PLB to Railway Employees – A Brief Note By KV Ramesh

THE PAYMENT OF BONUS ACT, 1965 & PLB TO RAILWAYMEN

BY: K.V.RAMESH, Sr.JGS/IRTSA

PAYMENT OF BONUS ACT, 1965 & AMENDMENTS THEREOF

• Minimum bonus 8.33% of the salary/wage of an employee.
• Maximum bonus including productivity linked bonus shall not exceed 20% of the salary/wage of an employee.
• Previous amendment of 2007 was notified on 13 December 2007 and made effective from 1st April, 2006.
• Minimum bonus of 8.33% of (Rs. 3500/- X 12= Rs. 42,000/-) is approximately Rs. 3500/-.
• 20% of above referred Rs. 42,000/- is Rs. 8,400/-. However, the limit is given as Rs. 8,300/-.

Details of amendments to the Payment of Bonus Act, 1965:

PRODUCTIVITY LINKED BONUS FOR RAILWAY EMPLOYEE

SALIENT FEATURES OF THE PLB SCHEME ARE AS UNDER: –

a) The output for a year is reckoned by the equated net tonne kilometres by adding together:-

i) Total goods revenue net tonne kilometres.
ii) Non-suburban passenger kilometres converted by a factor of 0.076.
iii) Suburban passenger kilometres converted by a factor of 0.053.

b) The input is taken as the non-gazetted staff strength (excluding RPF/RPSF personnel), increased by the incremental increase/decrease in capital (over average of last three years) during the year.

C) Highest PLB amount of 78 days’ wages was paid for the financial years 2010-11, 2011-12, 2012-13, 2013-14 and 2014-15.

d) The wage calculation ceiling prescribed for payment of PLB to the eligible non-gazetted railway employees is 3500/- p.m. The maximum amount payable per eligible railway employee is Rs. 8975 for 78 days.

• Amount paid as bonus never shown meaningful increase over last 15 years.
• Only between 2006-07 and 2007-08 there was a visible increase in bonus amount.
• If bonus is linked with inflation at the rate of average 12% per year from 2001-02, it should have become Rs.24000 now, even without considering any productivity improvement.
• Bill passed in Lokshaba is a very late action taken by the Government.
• Railways should not try to put any rider on this very late action.

After enactment of the present bonus bill,wage calculation ceiling prescribed for payment of PLB to non-gazetted railway employees will be increased to 7000/- p.m.

The maximum amount payable per eligible railway employee can also go upto Rs.21,000. But, Railway Board is having proposals to revise the calculation formula for PLB which may reduce the expected benefit.

Source: IRTSA

Good news expected soon: Update on Bonus Hike

Good news expected soon: Update on Bonus Hike

As per reliable sources, Election Commission has given it’s nod for issuing ordinance on “Payment of Bonus Act”

Now the matter will go to cabinet and after it’s approval, necessary ordinance will be notified soon.
Earlier Government decided to raise the ceiling of Rs 3500/- per month to Rs 10,000/- per month.

Central employees may cheer for higher bonus this year

After long times Central Government Employees are going to get higher amount of bonus this year. Earlier, the ceiling for bonus was Rs 3500 per month. From this year, the ceiling is going to be increased to as high as Rs 10,000 per month. In a letter from Secretary, Ministry of Labour and Employment, Mr S. Agarwal conveyed this good news to Sri Vijesh Upadhyay, Genl. Secy., Bharatiya Mazdoor Sangha.



Source: http://paycommissionupdate.blogspot.in

Countrywide General Strike on 2nd Sep, 2015 Stands: Confederation News

Countrywide General Strike on 2nd Sep, 2015 Stands: Confederation News

 

FLASH NEWS by CONFEDERATION

28th August 2015

COUNTRYWIDE GENERAL STRIKE ON 2ND SEPTEMBER STANDS

CENTRAL TRADE UNIONS REASSERT THE CALL FOR UNITED ACTION

MARCH AHEAD UNITEDLY, MAKE THE COUNTRYWIDE GENERAL STRIKE ON 2ND SEPTEMBER A MASSIVE SUCCESS

After two rounds of discussion between the Group of Ministers and the central trade unions on the 12-point charter of demands of the trade unions held on 26th and 27th August 2015, the GoM headed by Finance Minister, Shri Arun Jaitley sent an appeal through the press release dated 27-08-2015 (Press Information Bureau) after 10 pm urging upon the trade unions to reconsider the call for countrywide general strike on 2nd September 2015 claiming that the Govt has given concrete assurance to consider most of the demands  of the trade unions and that the trade unions agreed to consider the Govt’s proposals. Similar appeal was also made in the meeting of 27th August.  Both the claims of the Govt are totally incorrect.

 

To put the facts straight, the joint platform of central trade unions have been pursuing with successive governments at the centre with their basic demands since 2009 and observed three rounds of countrywide general strike since 2010, the last being for two days in February 2013. In the two rounds of meeting between the CTUOs and the Group of Minister, nothing transpired in concrete terms except vague statements by the ministers on steps to be taken or being taken on some of the issues, that too not in the right direction.

 

The Govt’s press release mentioned, inter alia, certain issues in support of their unfounded claim.

1. The Govt stated about “appropriate legislation for making formula based minimum wages mandatory and applicable” for all. But despite concrete pointers made by the trade unions that such formula should be what has already been unanimously  recommended by the 44th Indian Labour Conference in 2012 and again reiterated by 46th Indian Labour Conference in July 2015 in which the Govt of India is also a party,  the Ministers did not give any concrete commitment on the same. In fact said formulae recommended by 44th ILC in 2012 and reiterated by 46th ILC in July 2015, makes minimum wage around Rs 20000/- at 2014 price level and the Trade Unions demanded only Rs 15,000/. The Ministers’ vague formulation does not ensure even half of that. Is such a position worth consideration?
   
2. On contract workers, the Govt assured that they will be guaranteed minimum wages. What is there to assure except spreading deliberate confusion?  Existing laws of the land lawfully ensures payment of minimum wages to contract workers. The Govt’s statement regarding “sector specific minimum wages for the contract workers” also does not make any sense. The trade unions demanded “same wages and other benefits as regular workers in the concerned industry/establishment to be paid to contract workers.” The 43rd Indian Labour Conference held in 2011 recommended the same and 46th ILC unanimously reiterated the same in 2015, in which, again, the present Govt is a party. How could they deny the unanimous recommendation of the highest tripartite forum in the country like Indian Labour Conference?
   
3. The steps taken by the Govt on Labour Law amendments, are meticulously designed to throw out more than 70% of the workers on industries and other establishments from the purview and coverage of almost all basic labour laws and also to eliminate almost all components/provisions of rights and protections of the workers. This was supplemented by more aggressive steps already taken by a good number of state governments to already amend the labour laws in the similar lines. On this issue, the Govt stated only that they will hold tripartite consultation before taking such steps.  The trade unions demanded scrapping of such proposals by the central govt and also not to give assents (through President) to the unilateral amendments made by the state governments. Even in all the tripartite consultations held on some of the proposals of the Govt, the trade unions’ unanimous suggestions has been ignored by the Govt in favour of loud supportive applauds of the employers. Once these retrograde changes in labour laws totally dismantling the rights and protection measures for the workers and also throwing more that 70% of the workers out of the purview of labour laws are enacted, thereby rendering the almost entire working people a right-less entity in their workplace, what would ensure even payment of minimum wage and other social security benefits for them, even if those provisions are improved ?  Can any trade union, worth its name accept such a machination designed to impose conditions of virtual slavery on the working people ?
   
4. Despite repeated insistence by all the trade unions, the Govt refused to concede to the demand for recognizing  the Scheme workers, viz., Anganwadi, Mid-day meal, ASHA, Para-teachers and others as “worker” with attendant rights of statutory minimum wages and other benefits in gross violation of the unanimous recommendation of the 45th Indian Labour Conference in 2013, reiterated again by the 46th ILC  in 2015. These workers and all the schemes have been put to further crisis threatening their existance owing to drastic cut in budgetary allocations for those schemes. In such a situation, does the assurance of the Govt to “extend social security measures” and “working out ways” for the same carry any meaning?
   
5. On bonus issue, the Govt has assured to revise the eligibility and calculation ceiling to Rs 21000/- and Rs 7000/- respectively from existing Rs 10000/- and Rs 3500/-. Trade Unions’ demand has been that since there is no ceiling on profit, all ceilings in the Payment of Bonus Act should be removed altogether. Trade unions also demanded substantial upward revision of the formula for gratuity calculation and remove the ceiling on gratuity payment. The Govt has negated the demands.
   
6. On price rise situation, claim of the Govt that it has gone down does not match with ground reality in respect of commodities for daily necessities of the common people. The demands of the trade unions for putting a ban on speculation/forward trading in essential commodities and services along with universalisation of public distribution system throughout the country have been totally ignored.
   
7. Trade Unions demanded stoppage of disinvestment in public sector undertakings playing crucial and supportive role in advancement of the national economy. Govt totally ignored the same, rather has been going on aggressively in disinvestment route  in all the major PSUs much to the detriment of the interest of the country’s economy.  On the demands for stoppage of further FDI in defence, railways and financial sector, the stance of the Govt is continuing to be a total denial. Rather, the Govt has been aggressively pursuing deregulation and privatization in strategic sectors like electricity, Port & Docks, Airports etc in a big way.

There are other issues as well, statement of Govt continued to be totally vague and their claim is unfounded. How can anybody, rather any trade union worth its name can consider above stands taken by the Govt on vital demands of the workers as a positive development and move out from the programme of united strike action ?

 

Therefore, there is absolutely no reason for reconsidering the decisions of the Central Trade Unions for countrywide general strike on 2nd September 2015. Rather, the situation demands that there should be no vascillation in carrying forward the call for general strike on 2nd September 2015 throughout the country in all sectors of the economy with firm determination.

 

The Central Trade Unions appeal to all working people irrespective of affiliations to make the call for countrywide general strike against the anti-worker, anti-people policies of Govt a massive success.

                                                                                                                        Tapan Sen
General Secretary CITU

Source: Confederation

Bonus Issue – Report on detailed discussions and conclusions of 46th ILC

Bonus Issue – Report on detailed discussions and conclusions of 46th ILC 

Removal of Conditions on payment Ceiling eligibility Limits, Decisions to pay Minimum Bonus without linking to loss when the performance indicator satisfy grant of bonus- The major conclusions emanating from the discussions in the committee are as follows:

The Conference committee on amendment of Bonus Act – Removal of Conditions on Payment Ceiling, Eligibility Limits. Decisions to pay Minimum Bonus without linking to loss when the performance indicator satisfy grant of bonus constituted to discuss the Agenda item No. 3 of 46th session of the Indian Labour Conference met under the chairmanship of Captain Abhimanyu, Minister of Labour, Govt. of Haryana. Shri Om Prakash Mittal, General Secretary, Laghu Udyog Bharti (LUB) and Ms. Meenakshi Gupta and Mr. B.B. Mallick, Joint Secretary, MoLE respectively were the Vice-Cheirman and Member Secretary of the Committee. The Committee had the representation of all the stake-holders (Workers’ Group, Employers’ Group and State Government).

2. At the very outset, the chairman of the committee welcomed all the representatives. He observed that the issue of bonus has been pending for long.

He expressed the hope that all the partners would understand and appreciate the position of each other and give recommendations keeping in the view the larger national interest. The Vice-Chairman also welcomed all the Members. Thereafter, the Member Secretary introduced the subject. The agenda has following 3 issues:-

(i) Removal of calculation ceiling;
(ii) Removal of Eligibility Limit; and
(iii) Decisions to pay Minimum Bonus without Linking to loss when the performance indicator satisfy grant of bonus.

3. It was mentioned that last revision in the limits (Calculation Ceiling – Rs. 3500 and Eligibility Limit-RS. 10,000) was done in 2007 based on the recommendations of the 41st ILC.

4. The committee had very intense detailed discussions on all the aspects of the Agenda Item no. 3.

(i) The Trade Unions were of the view that all the ceilings under the payment of Bonus Act. 1965 i.e. eligibility ceiling, calculation ceiling and maximum percent of bonus payable need to be removed. They further expressed that they would like to reiterate the stand taken by them in the tripartite meeting held on 20 October, 2014.

(ii) The Employers, representatives were of the view that total removal of various ceilings may lead to spurt in industrial relation issues. They observed that while making any change in the payment of Bonus Act, 1965 productivity of the workers and paying capacity of the employers have to be taken into account. They further observed that they are not in favour of indexation of cost of living for the purpose of ceiling and bonus calculation. The term ‘Employee’ should be substituted by the term ‘workman’ as defined under the industrial disputes Act. The present system of prescribing limits both for eligibility and calculation should be retained.

(iii) The State Government representatives were of the view that minimum, limit of bonus (8.33%) may continue. Regarding limits with regard to calculation and payment ceiling it was stated that they had no comments to offer. They further observed that distinction between statutory bonus and productivity linked bonus is quite relevant in this regard.

(iv) The State Government representatives also suggested that the central Government may consider notifying the limits for eligibility of bonus and calculation of bonus through and administrative process based on tripartite mechanism rather then legislative process every time. Appropriate amendment to the payment of Bonus Act, 1965 may have to be carried out accordingly.

Labour laws Amendments proposed/ done by central or State Governments Conclusions of the committee are as follows:-

1. The committee reiterates historical role of tripartite mechanism functioning in the country before any enactment/ amendment of labour laws.

2. Any labour law amendments/ enactment should take into account three purpose namely:

(i) justify and welfare of workers;
(ii) Sustainability of enterprises and job creation; and
(iii) Industrial peace.

3. The labour laws need to be relooked and updated in a time bound manner.
4. Committee recommends that the overall exercise of the labour law amendments should be discussed in the tripartite forum and the broad and specific proposals should also be discussed in tripartite meetings.

Recommendations of committee on “Employment and Employment Generation” of 46 the Indian Labour conference (ILC) are as follows:-

1. The committee noted that the recommendations of 43rd to 45th ILC on Employment & Employability need to be fully implemented.

2. Recognising the employment potential in micro and small industry, especially in rural areas, an effective single-window system be established to promoted agro-based and micro & small industries with facility like concessional finance etc. A system for centralized marketing of products manufactured by these industries can also be developed.

3. Enhance the outlays and threshold for public employment generation programmes in both rural and urban areas.

4. Fill up vacant posts in Central Government, State Governments and Public Sector Undertakings in a time bound manner.

5. Reiterate the necessity for publishing quarterly employment and unemployment data.

6. With Central and State Government moving to on-line systems for employment exchanges there is a need for capacity building of Employment Exchanges officers for their revised roles under National Career Service (NCS). Need for integration of Central and State IT initiatives to avoid duplication.

7. Utilization of idle capacity in Vocational and Educational Institutions and closed/ sick industry for demand responsive training.

8. Enhance and expand areas for Recognition of Prior Learning (RPL) with effective assessment.

9. Enhance number and improve quality of assessors for vocational training and consider including ITI faculty for assessments.

10. To identify labour-intensive industries and new areas where jobs can be created like renewable energy and reusable resources etc. and providing employment liked training.

11. Evolve strategies for increasing female workforce participation in both public and private employment.

Source: PIB News