The
Finance Minister held Pre Budget 2018 discussion with the representatives of
central trade unions on 5th December 2018. The meeting, as
every year, appeared to be not more than a ritual. The ‘consultative meeting’
with the 12 trade unions that were called, lasted for around 1 hour. The trade
union representatives were requested to give their opinions in 3-4 minutes. The
trade unions were asked to express their concerns and suggestions related to
the union budget within this time frame.
Ten
central trade unions jointly presented their views in a note to the Finance
Minister. In her intervention Dr.Hemalata reiterated that pre budget consultation
with trade unions should not be treated as a mere ritual; the views of the
trade unions representing the workers who produce the wealth should be given
due place in the budget proposals. She also demanded that the Group of
Ministers constituted under the chairmanship of the Finance Minister in 2015 to
discuss the demands raised by the trade unions should continue discussions with
them and resolve their demands. Instead of focussing on improving ‘ease of
doing business’ to benefit the corporates, the government should focus on
improving India’s position in ‘Global hunger index’ and closing down the
‘gender gap’. This should be done by increasing allocations for social sector
including health and education, to the ICDS, National Health Mission, Midday Meal
Programme etc that serve the poor, particularly women and children. ILC
recommendations on recognising ‘scheme workers’ as ‘workers’, paying minimum
wages to them etc. should be implemented.
She
also emphasised the point that the government should increase spending on
social sectors like education and health and mobilise resources for this by
taxing the rich who can pay. It should focus on employment generation
increasing public expenditure on infrastructure. All vacant posts in various
government departments including railways etc should be filled up by fresh
recruitment. MGNREGA should be implemented in all rural areas and extended to
urban areas.
Dated
05.12.2017
The
Hon’ble Minister of Finance
Government
of India
North
Block,
New
Delhi, 110
001
Sub: Trade
unions view point on issues to be considered for framing budget for the year
2018-19
Sir,
To
start with, we urge you to take the views presented jointly by the trade unions
and incorporate them in the budget proposals so that this meeting would be
meaningful. We request you not to convert this meeting into a mere a ritual.
Please
recall that the Group of Ministers headed by you had an inconclusive discussion
with the trade unions on the 12 point charter of demands of the working people
of the country in August 2015. The GoM did not resume the discussions despite
requests from the central trade unions. The discussion the Labour Minister held
with the central trade unions on 7th November 2017 did not
yield any results.
Hence,
we feel compelled to reiterate our demands again and present our views as
follows:
· Increase budgetary allocations for social
sector: The government should increase
allocations on social sector and basic essential services like health,
education, food security etc. in the Union Budget. The necessary financial
resources should be raised internally by taxing the rich who have the capacity
to pay.
· Effective measures against deliberate tax
and loan repayment defaults: Effective
and firm measures should be taken against deliberate tax default by the big
business and corporate lobby to curtail the huge accumulation of unpaid taxes,
which have been continuously increasing. Further, wilful default should be made
a criminal offence, the list of wilful defaulters should be made public and
stringent measures such as fast track Debt Recovery Tribunals should be
implemented.
· Minimum wage: Minimum wage fixed on the basis of the
recommendations of the 15thIndian Labour Conference and the Supreme
Court judgment in Raptakos & Brett case and linked to Consumer Price Index
should be guaranteed to all workers. The 7th Pay Commission has
worked this to be Rs 18000 per month, which the government has accepted. Hence,
the minimum wage should not be less than Rs 18000 per month, which has been the
common demand of all the central trade unions. Need based minimum wage should
be considered as an essential part of social security.
· Resolve demands of the Government employees
regarding 7th Pay Commission: All
the pending demands of the Government employees in centre and states in regard
to 7th pay commission be resolved within time frame including
arrears of allowances with effect from 01.01.2016. The autonomous bodies
be included into for all the benefits of the 7th pay
commission.
· Price rise: The
prices of essential commodities, particularly of food items have been
spiralling making it impossible for the workers and other toiling people to
meet their basic daily needs. Speculative forward trading and hoarding are
major factors contributing to the price rise. The government should ban
speculative forward trading in essential commodities, take strong measures to
curtail hoarding and strengthen Public Distribution System, making it
universal. Stop the system of cash transfer to beneficiaries’ accounts in lieu
of PDS
· Stop disinvestment and strategic sale of
public sector units: The public sector has to be
strengthened and expanded. Budgetary support should be provided for the revival
of potentially viable sick public sector units. Strategic sale of the profit
making PSUs, which is being resorted to at present should be stopped. The
amendments to the Motor Vehicle Act, which pave the way for privatisation of
the state owned public transport system should be withdrawn.
· Employment generation: Employment generation has nosedived in the
recent period. Massive public investment in infrastructure, social sectors and
agriculture would generate employment. The union budget should give priority
and allocate the necessary funds for this. All vacant sanctioned posts in the
different government departments, PSUs and autonomous institutions should be
filled up through fresh recruitment. The ban on creation of new posts should be
lifted. The practice of surrendering/ abolition of posts should be done away
with.
· Prevent dumping: The increasing import of industrial commodities
including capital goods should be contained and regulated to prevent dumping.
Protect and promote domestic industries. This will also help in preventing job
losses
· Extend MGNREGA: Expenditure on MGNREGA should be increased to
cover all rural areas. Ensure immediate payment of wages to workers employed
under MGNREGA. It should be amended to include the urban areas as well. The
unanimous recommendation of 43rd ILC to extend the scheme to
urban areas, guarantee employment for a minimum of 200 days with statutory
minimum wage, should be implemented.
· Contract and casual workers: No contract/casual
workers should be deployed on jobs of perennial nature. The contract and casual
workers doing the same and similar work as the permanent workers should be paid
the same wages and benefits as paid to regular workers as directed by Hon’ble
Supreme Court of India in 2016.
· FDI: The
CTUs have been repeatedly demanding that FDI should not be allowed in crucial
sectors like defence production, railways, financial sector, retail trade etc.
But the government has persisted with this policy. Corporates with large NPAs
are allowed to invest in sensitive sectors like defence. We reiterate the
demands that FDI should not be allowed in the crucial sectors.
· Defence: Privatisation
of the defence sector should be stopped. The order outsourcing of the 143 items
of the total 273 produced by the public sector ordnance factories should be
withdrawn.
· Scheme workers: Regularise the workforce employed in the various
schemes of government of India including the ICDS, NHM, Midday Meal Programme,
National Child Labour Project, Sarva Siksha Abhiyan etc. Till this is done, at
least immediately implement the recommendation of the 45th ILC
that these scheme workers should be recognised as ‘workers’, they should be
paid minimum wages and provided social security benefits including pension.
Increase budgetary allocations to these schemes and stop privatisation of these
schemes in any form.
·
Domestic workers: The government should ratify the ILO Convention
189 and enact a central law and create support system for domestic workers.
·
Unorganised workers: Create a National Fund for Unorganised Workers
to provide social security for all unorganised workers including contract,
casual, migrant workers etc. Direct all state governments to frame rules under
the Street Vendors (Protection of Livelihood and Regulation of Street Vending)
Act and allocate funds for developing street vending as livelihood model.
Management of cess under the Building and other Construction Workers’ Welfare
Board, Beedi Workers Welfare Board etc. should be made the responsibility of
Ministry of Finance, which should ensure its proper collection, stoppage of
evasion and utilisation.
·
Labour law reforms: Stop labour law amendments that curtail the
basic and trade union rights of workers and provide unhindered ‘hire and fire’
facilities to the employers. The Code on Wages Bill, at present before the
Standing Committee on Labour and on the draft Code on Industrial Relations Bill
should be finalised on the basis of the opinions of the central trade unions
expressed unanimously. No labour law amendment should be undertaken without the
consent of the trade unions and workers who are the main stakeholders and the
most affected.
·
EPF: The
threshold limit for EPF scheme should be brought down to 10. Government and
employers’ contribution should be increased to provide a minimum pension of Rs
3000 per month and make it sustainable. Stop investing EPF funds in share
market. The Supreme Court has given a judgment and order for higher payment of
pension under EPS – 95. This option should be made available for all workers
covered under the said scheme.
·
Pension for all: Pension should be construed as deferred wage and
all workers who are not covered by any pension scheme should be ensured a
pension not less than Rs 3,000/- per month.
·
New Pension scheme: NPS should be withdrawn. All central and state
government employees recruited on or after 1.1.2004 should be covered under the
Old Pension Scheme.
·
Gratuity: Gratuity
under the Payment of Gratuity Act should be raised to Rs 20 lakhs and 30 days
wages instead of 15 days per completed year of service.
·
ADHAR: Government
should not rush making ADHAR linking compulsory
·
Closed and sick factories: Ensure that workers of closed factories get
their dues within a fixed time limit. Sudden winding up of the BIFR has left
many stakeholders without a remedy. Rules for carrying out the provisions of
the Sick Industrial Companies (Special Provisions) Repeal Act, 2003 should be
framed immediately to facilitate them.
·
Income tax exemption: The ceiling for income tax for salaried persons
and pensioners should be raised to Rs 5 lakh per year. Income Tax ceiling for
senior citizens should be raised to Rs.8 lakhs. All perks and fringe benefits
like housing, medical and education facilities and running allowances in
railways should be exempted from income tax net totally.
·
Political funding: Recently the government removed the limit on the
amount companies can donate to political parties and the need to name the
political party receiving the funds. This is far from the transparency promised
in public life. The earlier regime should be restored.
·
Railways: Adequate
financial resources should be allotted to the railways to ensure more
effective, accessible and affordable transport to the common people,
particularly the poor. The capabilities of public sector production units
should be utilised fully, further developed and strengthened. No measure should
be taken to privatise the railways. The measures to hand over the railway
stations across the country to private players should be immediately stopped.
Any property of railways should not be handed over to private sector through
lease or sale. The decision to allow 100% FDI in railways should be
withdrawn. The pending expansion, track renewal, signals up gradation projects
should be completed at the earliest. Adequate financial resources should be
allocated to improve safety systems and ensure safe rail travel for the people.
All the vacancies in the railways should be filled up. The long pending demands
of the railway employees like enhancement of ceiling in respect of running
allowance for tax exemption, housing scheme etc. should be addressed
positively.
To conclude:
We reiterate
our strong opposition to the anti worker measures being undertaken by the
government on the pretext of improving the ‘ease of doing business’, to benefit
the employers, particularly the big corporates, domestic and foreign.
We
once again urge upon the government to take concrete measures to resolve the 12
point charter of demands of the working people, being repeatedly raised by the
central trade unions, as well as the pressing issues listed above.
We
regret that none of the suggestions of the central trade unions, made in the
earlier pre budget meetings were incorporated in the previous budgets. We hope
that this would not be repeated yet again and the points raised by us will be
given positive consideration while framing budget 2018-19.