Reply to 7th CPC Questionnaire

Transcription

1 Reply to 7th CPC Questionnaire 1. Salaries 1.1 The considerations on which the minimum salary in case of the lowest Group C functionary and the maximum salary in case of a Secretary level officer may be determined and what should be the reasonable ratio between the two. Minimum salary may be based on 15th ILC norms taking into account neo developments in facilities like communication and use of fuel etc. The computation of wages based on 15th ILC norms may be undertaken by a joint study including labour representatives to avoid VI CPC related differences of opinion in minimum wage computation. It should further be improved with a fair comparison with the wages prevailing in profitable central public sector units. After VI CPC the minimum recruitment qualification has been revised to matriculation / ITI. It applies to Grade Pay Rs.1800 and also GP Rs Therefore there is no meaning in difference of GP at the minimum. The minimum may be construed at the GP 1900 level. For an initial recruitment the group C is granted Rs =7730 as minimum starting scales: When compared with the apex pay in central got i.e the ratio is 1:9.6. The ratio thus can be reasonably made 1:9 at the ratio available in Thailand another developing country. 1.2 What should be the considerations for determining salary for various levels? Of functions falling between the highest level and the lowest level functionaries? A ratio of 1 : 5 between minimum of lowest scale and minimum of apex scale within group c cadre may be adopted as broad parameter for

2 the lowest and apex scales with reasonable differences in between. At present it is 1 :1.98 to 2. The present intermediate differences like Rs.4200 GP after 2800 and only Rs.4600 GP after Rs.4200 and only Rs.4800 after Rs.4200 should be reasonably rationalised. The difference between 1800, 1900, 2000, 2400 are very minimal, do not attract. The job content, responsibilities, training requirement etc has to be taken into account. There are no different scales for various categories of loco pilots. They have for 3 different categories same GP of Rs Some categories like train clerks do not have common group C apex scale though entry qualification is the same. These discriminations and differences should be taken care of when determining the intermediate scales within the group c scales. If Grade Pay and Band Pay system is changed and different scales to different categories in the cadre are introduced this can be avoided. 2. Comparisons 2.1 Should there be any comparison/parity between pay scales and perquisites between Government and the private sector? If so, why? If not, why not? Fair comparison of pay scales and perquisites of regular employees of both Govt and corporate houses can be made provided that their pay scales are above the 15th ILC norms in fair comparison with public sector. 2.2 Should there at all be any comparison/parity between pay scales and perquisites between Government and the public sector? If so, why? If not, why not? Definitely, yes. The parity between central govt employees and public sector employees was broken and gap widened as a consequence of only pay commissions for the CG employees once in 10 years without any bargaining opportunities, where as, the public sector employees got away

3 from the pay commission method and entered into collective bargaining and had wage increase every 4 or 5 years. The central govt employees wages were determined by demand and supply and the pay scales of CPSEs were determined by collective bargaining. Here lies the reason for doing away with the discrimination in the govt sector. Therefore the fair comparison with public sector is a must as the govt is a model employer. Apart from that the central govt employees should be placed above others to be able to monitor the implementation of govt policies. The position obtaining earlier should be restored. 2.3 The concept of variable pay has been introduced in Central Public Sector Enterprises by the Second Pay Revision Committee. In the case of the Government is there merit in introducing a variable component of pay? Can such variable pay be linked to performance? The second pay version committee s recommendation for executives of CPSES is not practicable in railways where productivity is determined on over all basis. Every employee, every officer contribute to the ultimate run of the train. Performance related pay in railway will lead to favouritism and nepotism leading to dissatisfaction and dejection of honest sincere employees ultimately affecting the safety of the running of trains. The present structure of pay scales with its hierarchy well established over the years should not be disturbed. 3. Attracting Talent 3.1 Does the present compensation package attract suitable talent in the All India Services & Group A Services? What are your observations and suggestions in this regard? If the New Pension System is abolished it will attract the talents into Govt service. The pay and perks available to CPSEs at least should be extended in central govt. At present many officers after certain period of

4 time drift away to private sector. The maintenance of parities with CPSEs is therefore the need of the hour. 3.2 To what extent should government compensation be structured to attract special talent? Sixth CPCs recommendation of contractual services of technocrats, professionals, and scientists without pensionary benefits have not attracted talents. Talents can be attracted only when pay scales and perks are at least comparable with CPSEs with restoration of old pension. 4. Pay Scales 4.1 The 6th Central Pay Commission introduced the system of Pay Bands and Grade Pay as against the system of specific pay scales attached to various posts. What has been the impact of running pay bands post implementation of 6th CPC recommendations? The pay bands and Grade pay system did not form part of demand by any trade union, but it was introduced. It has depressed the pay scales. On various occasions it plays against the interest of employees. For example when an employee is transferred on lower grade his band pay only is protected depressing his pay. In National Anomaly Committee many issues have been brought for withdrawing the system of Band pay and Grade pay. This discriminatory system should be scrapped and open ended pay scale system should be introduced with annual increments. 4.2 Is there any need to bring about any change? It should be changed to open ended pay scales with a minimum for each category. 4.3 Did the pay bands recommended by the Sixth CPC help in arresting exodus and attract talent towards the Government? No. On the other hand the reverse has happened.

5 4.4 Successive Pay Commissions have reduced the number of pay scales by merging one or two pay scales together. Is there a case for the number of pay scales/ pay band to be rationalized and if so in what manner? The merger of pay scales has only withdrawn the promotional prospects and attendant increment benefits. It has very badly affected the railway loco pilots who has to bear same grade pay for various higher responsibilities. Since the Keymen had similar pay as that of Trackmen there was no enthusiasm in Trackmen to work as Keyman. There fore different scales should be maintained. 4.5 Is the grade pay concept working? If not, what are your alternative suggestions? It is not working. It should be replaced by an open ended pay scale. 5. Increment 5.1 Whether the present system of annual increment on 1st July of every year uniformly in case of all employees has served its purpose or not? Whether any changes are required? No, It has to be changed. If a person gets promotion between January and June his promotional fixation takes place after drawing his due increment on Ist July. If an employee gets promotion between August and December he is disadvantaged since next increment is only from Ist July of next year. If there is another increment date falling in January it will help such employees to get promotional benefits. For some other reasons also there should be two increment dates as on Ist January and Ist July. 5.2 What should be the reasonable quantum of annual increment?

6 An employee can superannuate after 10 years service and get full pension. Under the circumstances an employee who enters service must get at least 10 % of his basic pay annual increment so that his pay doubles in Ten years. At least when an employee voluntarily retires after 20 years of service his pay should double which can be attained if 5% annual increment is given. There is no any justification to retain present 3%. 5.3 Whether there should be a provision of variable increments at a rate higher than the normal annual increment in case of high achievers? If so, what should be transparent and objective parameters to assess high achievement, which could be uniformly applied across Central Government? The present system of 20% of officer getting variable increment of 3 to 4% is non transparent, discriminative and discontentment prone. The variable increment system should be abolished. 5.4 Under the MACP scheme three financial up-gradations are allowed on completion of 10, 20, 30 years of regular service, counted from the direct entry grade. What are the strengths and weaknesses of the scheme? Is there a perception that a scheme of this nature, in some Departments, actually incentivizes people who do not wish to take the more arduous route of qualifying departmental examinations/ or those obtaining professional degrees? The ACP scheme was introduced after considering various aspects which cause dejection without any promotion in the normal vacancy based channel. In Indian railways there remain 3 lakh vacancies and in central govt 6 lakh vacancies as on as per Brochure on pay and Allowances. There is ban on filling up of vacancies that exists for a year or more. In the circumstances ACP is the only alternative to relieve tension. It should therefore be improved with

7 - 5 promotions once in five years. - In MACP the next pay scale in the hierarchy of the cadre should be given as against the next grade pay in the schedule. Though the category has got next GP of only 2800 an employee in 1900 is given first MACP to 2000, second MACP to 2400 and third to 2800, thus defeating the very purpose of promotion. This can be achieved by eliminating present Grade Pay, Band Pay system also. - even if an employee is transfered he should continue to get the MACP obtained. 6. Performance What kind of incentives would you suggest to recognize and reward good performance? Incentive system in Railways where safety is involved will affect the morale and ultimately affect the safety. 7. Impact on other organizations Salary structures in the Central and State Governments are broadly similar. The recommendations of the Pay Commission are likely to lead to similar demands from employees of State Governments, municipal bodies, panchayati raj institutions & autonomous institutions. To what extent should their paying capacity be considered in devising a reasonable remuneration package for Central Govt. employees? Salary structure in states were far lower than central govt employees earlier. Due to struggles of state govt employees in all the states they have at present attained broadly similar scales. in many states they revise every five years. This revision is made applicable to corporation, municipality and panchayath employees also by the state govt. The state govts are at present paying their employees managing their resources. Central govt has by many means deprived the state govts of their legitimate revenues. These should be restored to make their economy become better. The central govt, by many ways, leaves the legitimate income that should come to the govt. For example it has foregone taxes to

8 the tune of Rs.31 lakh crores from A liberal govt towards corporates cannot deny the legitimate fair wages to its employees and also to the state govt employees. The expenditure on pay and allowances of central govt employees including defence and railways as part of Revenue receipt and revenue expenditure have halved. as% of as % of revenue revenue receipts expenditure % 14.5% % 7.30% This is as per the own data provided by finance ministry in the Brochure on pay and allowances. The corporates who have increased their profit are allowed to desist from paying taxes. This discriminatory attitude brews discontentment and hence the wages of central, state govt employees should be increased. What ever increase is there it is only on account of Dearness allowance, the compensation for price increase, for which employees are in no way accountable. Therefore all Central and state govt employees should be given similar wage increase no comments Allowances

9 9.1 Whether the existing allowances need to be retained or rationalized in such a manner as to ensure that salary structure takes care not only of the job profile but the situational factors as well, so that the number of allowances could be at a realistic level? Existing allowances should be retained. At the same time allowances should be linked to price index as is done to Transport Allowance and Night duty allowance. The 25% increase only after 50% increase should be revised to effect increase 100% every 6 month. The patient care allowance should be continued to the hospital staff as a package for risk undergone. The Night duty allowance is of different nomenclature and content and cause. It should be paid to the hospital staff along with patient care Allowance. 9.2 What should be the principles to determine payment of House Rent Allowance? House Rent Allowance should be paid at actual rate reduced by 10% of basic pay being the component of house rent in minimum pay. 10. Pension 10.1 The retirement benefits of all Central Government employees appointed on or after a re covered by the New Pension Scheme (NPS). What has been the experience of the NPS in the last decade? Many employees who entered after in late part of their age on various grounds in Rlys and had minimum 10 years service retired without any pension. Even accumulated wealth has not been settled. They have been left in lurch as against the supreme courts judgment in Nakara Vs UOI. THe PFRDA in its website has listed the risks of investment of which one is loss of principal. In that case the retiree will be thrown on the streets in lurch since the market is volatile. In the NPS there is no family

10 pension nor minimum pension guarantee and no gratuity is paid in violation of Gratuity Act The reason that there is increasing expenditure on pension is untenable because there is expenditure to the govt even is NPS. They have to shell out 10% of the wages as matching grant. The defence forces for whom 54% of pension expenditure is going have been exempted from NPS. The aim of govt is to privatise the pension in the pursuit of liberalisation as against the social security of 8% senior citizens. Hence the NPS has to be scrapped and old pension should be restored 10.2 As far as pre appointees are concerned, what should be the principles that govern the structure of pension and other retirement benefits? Pension should be calculated at 50% emoluments (pay + DA+HRA) or 75% of Basic pay. Lowest paid employees should be given the last pay drawn as pension. After every pay commission the pay of the pensioner should be refixed notionally and revised to the pay of the post last held and pension revised accordingly. The pension should be increased every 5 years as follows 65 = 5% 70 = 10% 75 = 15% Commutation either be restored after 12 years or calculation should be made for 15 years instead of 12 years. 11. Strengthening the public governance system The 6th CPC recommended upgrading the skills of the Group D employees and placing them in Group C over a period of time. What has been the experience in this regard?

11 The group D employees upgraded to group c with GP 1800 are trained and utilised as skilled workers and hence their pay has to be upgraded on par with the lowest grade skilled workers of the skilled cadre instead of keeping them out of the skilled cadre strength In what way can Central Government organizations functioning be improved to make them more efficient, accountable and responsible? Please give specific suggestions with respect to: a) Rationalisation of staff strength and more productive deployment of available staff; In the name of rationalisation of staff strength even safety category posts are kept vacant in Railways. When there were 1.49 lak safety category vacancies only was filled. safety review committee under the chairmanship of Anilkakodker recommended for filling up of 1.26 lak safety category vacancies with in 6 months. But only vacancies were filled. There are 16.28% vacancies in central govt. The mindless rationalisation followed has played havoc and many accidents happen due to lack of staff. In Railways many posts remain without manpower. For example thousands of unmanned gates need manpower to avoid death of invaluable human beings. Drivers work many nights continuously. Many gatemen work 12 hrs a day. The ratinonalisation in principle has lead to mindless economy in expenditure leading to safety hazards. 7 CPC must recommend for dropping the policy of keeping vacanicies unfilled in the name of economy in expenditure or rationalisation and also recommend for creation of posts wherever needed without matching surrender of posts which causes dearth of staff in needful areas. 12. Training/ building competence

12 12.1 How would you interpret the concept of competency based framework? In railways training is imparted in training schools all over Indian Railways. Competency certificates are issued to competent persons after training. The periodical training of staff is affected due to large number of vacancies and without trainee reserve staff. 7 CPC should recommend for Trainee reserve posts commensurate with the training length One of the terms of reference suggests that the Commission recommend appropriate training and capacity building through a competency based framework. a) Is the present level of training at various stages of a person s career considered adequate? Are there gaps that need to be filled, and if so, where? b) Should it be made compulsory that each civil service officer should in his career span acquire a professional qualification? If so, can the nature of the study, time intervals and the Institution(s) whose qualification are acceptable, all be stipulated? c) What other indicators can best measure training and capacity building for personnel in your organization? Please suggest ways through which capacity building can be further strengthened? As far as rail ways are concerned in service training is imparted and a separate committee with competent Railway personnel should study and recommend for better training management. 13. Outsourcing 13.1 What has been the experience of outsourcing at various levels of Government and is there a case for streamlining it? Outsourcing experience in railways has played havoc in safety. Even then it is followed even in areas of perennial nature of work like maintance shed, open line yards, workshops and even in production of rolling stock.

13 This leads to poor standards of safety items and causing heavily on the human lives. An example is welding of track by outsourcing where unskilled untrained workforce is utilised in the highly skilled work leading to large scale weld falure and consequent derailments. In areas of cleaning of coaches and stations the out sourcing has affected the sanitation very badly due to irresponsibility of contractors not employing sufficient man and using cleaning compounds. Since mass of people use the railways the cleaning has to be by responsible and accountable departmental agencies. Therefore outsourcing is dangerous to the railway activities. Besides the contract workers are not even paid minimum wages. Though the contract labour (abolition and Regulations) Rules directs that they should be paid similar wages on par with guaranteed wage, leave, resting facilities etc. Inhuman exploitation is going on in the name of outsourcing. It is estimated that there are about 7.5 lakh contract workers in Indian Railways as against lakh on rolls. Many contractors have abandoned the work half way and deserted the work. Therefore out sourcing in Railways should be stopped Is there a clear identification of jobs that can be outsourced? In Railways all are perennial nature of work with safety considerations and should not be out sourced. 14. Regulatory Bodies No comments 14.1 Kindly list out the Regulators set up under Acts of Parliament, related to your Ministry/ Department. The total number of personnel on rolls (Chairperson and members + support personnel) may be indicated No comments

14 14.2 Regulators that may not qualify in terms of being set up under Acts of Parliament but perform regulatory functions may also be listed. The scale of pay for Chairperson /Members and other personnel of such bodies may be indicated. No comments 14.3 Across the Government there are a host of Regulatory bodies set up for various purposes. What are your suggestions regarding emoluments structure for Regulatory bodies? No comments 15. Payment of Bonus One of the terms of reference of the 7th Pay Commission is to examine the existing schemes of payment of bonus. What are your suggestions and observations in this regard? The present system of payment of bonus in railways is productivity linked bonus. Though the productivity of Railwaymen is increasing every year the bonus could not be availed according to the number of days of wages to announced as bonus due to wage ceiling Rs.3500 pm. This has to be removed in the case of productivity linked bonus. Besides the productivity parameters adopted by Railways should be made transparent with the consultation of labour, A minimum statutory Bonus should be ensured and PLB be paid over and above this level.