Friday, 12 April 2019

Minimum Pay/Fitment Formula & National Pension Scheme (NPS)-Letter

We have written a letter, on behalf of CCGGOO, to the leaders of all Political Parties discussing two pressing issues (namely, Minimum Pay/Fitment Formula determined after 7th Central Pay Commission and the National Pension Scheme or NPS), affecting more than One Crore Central and State Government employees (including PSU, Local and Autonomous Bodies) for their kind perusal and with the request to kindly impress upon the next Central Government to address the issues. The letter has already been submitted to the leaders of most of the major National and Regional Political Parties and the Text is given below.

We, on behalf of the Confederation of Central Government Gazetted Officers’ Organizations (CCGGOO), are writing this letter at the time, when the entire country is going through the process of General Election to Lok Sabha, 2019. Naturally all issues, considered as relevant by the people of India, are being discussed and debated.

CCGGOO, the umbrella organization for all Central Government Group B Gazetted and Group A promotee officers’ Service Associations, cutting across the Departments, is specifically concerned about the issues pertaining to the Central Government employees. Among many such issues, we believe that the following two issues are bothering the Central Government employees including Gazetted Group B and Promotee Group A Officers most and therefore, need a little elaboration.

A. 7th Central Pay Commission; Fitment factor and Minimum Pay: You are aware that Central Pay Commission (CPC) is the mechanism of reviewing the pay, allowances and other general service conditions of all Central Government employees irrespective of the grades (including all uniformed officers and personnel of defence forces and paramilitary forces like CRPF, CISF, BSF etc.) in a regular periodicity of 10 years. The 7th CPC's recommendations were implemented w.e.f. 01.01.2016. The basic focus of any CPC report is the determination of Minimum Pay and the Fitment Factor, as that is the basis of the pay structure for all cadres under consideration.

7th CPC failed to appreciate the proposed minimum pay and the fitment factor proposed by the entire Central Government Workforce before the CPC (Rs. 26,000/- applying the fitment factor of 3.7), along with the detailed workings on the basis of the International Labour Organization's approved formula (commonly known as Dr. Wallace Aykroyd Formula which was relied upon by consecutive CPCs). The 7th CPC worked out the minimum pay as Rs. 18,000/- applying the fitment factor of 2.57, relying upon some unscientific criteria.

Despite repeated representations by the Central Government employees and service associations including Confederation of Central Government Gazetted Officers Organisations, discussions with the authorities and the assurances given, the fitment factor remains unchanged and the minimum pay is being kept at Rs. 18,000/- only. This decision has not only dashed the hopes of lakhs of Central Government employees, but  also has disappointed crores of State Government employees, employees of the Central & State PSUs, Local Bodies and Autonomous Bodies, even the employees of Private Sectors, as the minimum pay of the Central Government employees is always the reference point for the others. It will be agreed that a satisfied workforce of Central and State Governments is always of prime importance, as they are the key for implementation of all Government Policies. Denial of the proposed Minimum Pay and the Fitment Factor has literally left more than one crore families across the country disappointed and disgruntled.

B. National Pension Scheme (NPS): You will appreciate that a pension scheme, consistent with available resources, should enable a pensioner to live a decent, poverty free, dignified post retirement life, consistent with the standards enabled by the wages paid to him while in service. Pension is not a gratis granted by an employer at his discretion. Pension is not an ex-gratia payment. Indeed it is a payment for the past service rendered, akin to deferred wages. It is a social welfare measure for rendering socio-economic justice to those, who in the heyday of their life ceaselessly toil for the employer on an assurance that in their old age they would not be left in the lurch. Pensioners’ form a class by themselves and this class is not divisible for purposes of entitlements and payment of pension to those who retire ‘before’ and those who retire ‘after’ a certain date.

The introduction of ‘New Contributory Pension Scheme’ or NPS for those who joined Central Civil Services on or after 01-01-2004 has negated the element of assurances with no guarantee of any minimum pension or any commitment to pay pension by Government. By introducing New Pension Scheme, two classes of pensioners have been created by the Government as pensioners who had joined service prior to 01-01-2004 and those who joined service on or after 01-01-2004. Those, who joined service in the Central Government prior to 01-01-2004 and retired, are now getting minimum pension of Rs.9000 plus DR per month.  But those who joined service after 01-01-2004 have no such assurance of a minimum pension, as they will be at the mercy of the "Market". The quantum of pension being received now by such NPS retirees is only confirming such apprehension.

The above issues have been forwarded from all corners of the staff side to the Central Government seeking to scrap the NPS and bring back the old pension scheme (OPS). The chorus are getting louder, as almost all the State Governments have adopted the NPS, sooner or later, exposing or like to be exposing over a Crore families of this country to uncertainties of the "Market", which they obviously don’t deserve after rendering decades of distinguished service.

Our request:

Despite your extremely busy schedule during this election season, we request you to kindly ponder over the above issues and to appreciate the gravity of the situation. We solicit your indulgence in impressing upon the new Central Government, to be formed after the General Elections, 2019 to address these two prime concerns of more than one crore Central and State Government employees (including PSU, Local and Autonomous Bodies) and their family members.

Friday, 29 March 2019

AIDTOA requests that the following charter of demands be included in the election manifestoes of the political parties.

1.
Take immediate concrete measures to control sky rocketing prices of essential commodities; ban speculative trade in essential commodities; expand and strengthen public distribution system; no compulsory linkage of Aadhaar to avail services of PDS.

2.
Check unemployment through policies encouraging labour intensive establishments; link financial assistance to employers with employment generation; fill up all vacant posts in government departments; lift the ban on recruitment and 3 per cent annual surrender of government posts.

3.
Check outsourcing and contractorisation of jobs of permanent and perennial nature.

4.
Strictly implement equal wage and benefits to contract workers doing the same job as permanent workers, as per Supreme Court judgment.

5.
Strict implementation of equal pay for equal work for men and women as per Indian constitution.

6.
Fix national minimum wage as per the recommendations of 15th Indian Labour Conference and Supreme Court judgment in the Raptakos & Brett case.

7.
Assure minimum pension of Rs 6000 per month and indexed pension to all.

8.
Recognise workers employed in different government schemes, including anganwadi workers and helpers, ASHAs and others employed in the National Health Mission, midday meal workers, para teachers, teaching and non teaching staff of National Child Labour Projects, etc as workers and pay minimum wages, social security benefits including pension etc to all of them.

9.
Immediately revoke ‘Fixed Term Employment’ which is in violation of the spirit of ILO Recommendation 204 which India has ratified.

10.
Stop disinvestment of public sector undertakings.

11.
Revoke the decision to privatise railways, defence, port and dock, banks, insurance, coal etc. Immediately revoke decision allowing commercial mining of coal mines.

12.
Immediately resolve the issues of the central government employees related to the recommendations of the 7th Pay Commission.

13.
Scrap NPS and restore the Old Pension Scheme.

14.
Stop anti-worker and pro-employer amendments to the labour
laws. Ensure strict implementation of the existing labour laws.

15.
Implement paid maternity leave of 26 weeks, maternity benefit  and crèche facilities for women workers.

16.
Strict implementation of the Prevention of Sexual Harassment of Women at Workplace Act.

17.
Ratify ILO Conventions 87 and 98 on freedom of association and right to collective bargaining along with the ILO Convention 189  on domestic workers.

18.
Strengthen bipartism and tripartism; no decision should be taken on any issue related to labour without consensus through  discussion  with trade unions/Associations.

19.
Cut the subsidies given to the corporates.

20.
Minimum support price as per the recommendations of
Swaminathan Commission recommendations; strengthen public procurement system.

21.
Loan waiver to farmers.

22.
Comprehensive legislation covering social security and working  conditions for agricultural workers.

23.
200 days of work under MGNREGA. Enact similar legislation to cover urban areas. Fix minimum wages not less than minimum  wages of the state.

24.
Ensure effective implementation of Article 51 A of the      constitution that calls upon all citizens to promote harmony, spirit of common brotherhood, diversities and to transcend religious, linguistic, regional and sectional culture and to denounce policies derogatory to the dignity of women.

25.
Enact legislation to protect couples opting for inter caste  marriages.

26.
Ensure strict punishment for all guilty of rape and other cases of  violence against women.

27.
Strict implementation of the SC/ST Prevention of Atrocities Act.

28.
Ensure filling up of all posts reserved for OBC, SC /STs.

29.
Free education to all children up to Class XII along with technical  education.

30.
Free health care for all. Strengthen health infrastructure. Increase government expenditure on health to 5 per cent of GDP.

31.
Right to work as fundamental right by amending the constitution.


The country has adequate resources to meet the above demands. The neoliberal agenda being aggressively pursued by the Governments has aggravated concentration of wealth in a few hands at the expense of the workers and peasants who created the wealth of the country. It has widened disparities to vulgar heights. The struggle against the neoliberal policies should continue whichever government came to power after the elections, if it indulged in pursuing the same policies.

The governments are totally insensitive to the genuine demands of workers, employees & officers. They sought to further perpetrate the attacks on the working class and all sections of toiling masses to facilitate amassing of wealth by a few corporates and business houses. Whichever government comes to power should know that the working class will not tolerate continuation of the neoliberal regime any more and pro-people and pro-worker policies should be implemented.

Let’s continue the fight for alternative policies.