5:48 PM
To
THE CHAIRMAN
7TH CENTRAL PAY COMMISSION, POST BOX NO.4599
HAUZ KHAS.P.O. NEW DELHI-110016.
Respected
Sir,
Sub: Submission on questionnaire
Ref:
D.O.no.7CPC/15/questionnaire dated
9.4.2014
This
Association welcomes the appointment of 7th CPC under the
Chairmanship of your honourable self and wish to assure our co-operation in all
your efforts towards arriving just and reasonable decision on the Himalayan
task of fixing the pay and allowances of about 35 lakhs of employees who serve
the nation.
This
Association represents the strategically important category staff in Indian
Railways ie. the Assistant Loco Pilots, Loco Pilot Shunting, Loco Pilot Goods,
Loco Pilot Passenger, Motor men & Loco Pilot Mail. The recommendations of 6th
CPC pertaining to this category has not been realistic to the existing
conditions of service, infringed the historical relativities with that of
others and resulted in numerous anomalies many of which are still pending
before Anomaly committee & different forums. The grievances/demands on
their allotted pay scales by the 6th CPC and the allied matters have
been referred for adjudication before National Industrial Tribunal, Mumbai
Bench. The disputes are still under the consideration of the tribunal.
Considering
the importance of Loco Pilots in executing the huge task of transporting
millions of passengers and millions of tons of fright daily and the pathetic service
conditions prevailing, they deserve much better treatment in regard to their
Pay and Allowances. So we plead before your good self to kindly make it
convenient to hear the Association and also to travel in a locomotive as part
of the process of weighing the genuineness of the demands.
There is a general perception that the
recommendations of commissions are arbitrary in nature, as the views expressed
by various Ministry/Department on the demands of the workers are not being
revealed. There for we would like to suggest uploading the representations of
the concerned Ministry/Departments in the official website of the commission, to
enable the staff side to have a say on it.
We herewith attach the views of this
association on the questionnaire of the 7th CPC. A detailed
memorandum on the specific demands of this category will be submitted in time.
Thanking you Sir
Place
- ADRA
yours sincerely
Date:-
09/05/2014
M.N.Prasad
(Secretary General)
Enclosures: Reply to the
questionnaire (13 pages)
The views and answers of
AILRSA on 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.
Ans: Wage
structure in civil service is to be determined based on the computation of the
minimum wage, living wage, fair comparison of wages elsewhere etc. The 15th
Indian Labour Conference held in 1957 brought in the concept of “Need Based
Minimum wage”, on the basis of Dr. Aykhroid formula, to be provided for an
unskilled worker when employed. This definition underwent minor changes, when
the Supreme Court revised the norms later. The entry grade after 6th
CPC in central services is Group C with a minimum educational qualification of
10/+2/ITI who has to perform as a multi skilled worker. Thus the Commission is
required to first determine the need based minimum wage as per the Dr. Aykhroid
formula and make necessary adjustment to determine the wages of the lowest
category in Government of India services. The co-relation of the wages of the unskilled
and skilled worker at the lowest grade has always been of the order of 130% for
the skilled worker. The minimum of the pay has therefore to be determined at
130% of the need based minimum wage.
The
minimum maximum ratio of pay in different establishments varies. However, the
earlier Pay Commissions had generally adopted a ratio of 1:10. Since the entry
in the Central Government sector is no more in the grade of unskilled worker,
this ratio must be proportionately changed to 1:9. Therefore, without excluding the pay
of the Cabinet Secretary as done by the 6thpay commission while
taking minimum maximum ratio, the salary fixed for the Cabinet Secretary is to
be divided by the factor of 9 to arrive at the minimum salary of the lowest
post in Central Government Service.
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?
Ans:
Salary for various
levels of functions falling between the highest and the lowest level
functionaries should be determined by applying the vertical and horizontal
relativities which existed prior to sixth CPC and have evolved over a time
through various Pay Commissions. The loco running staff of Indian railways
shall be given for a special treatment, as their working condition and nature of
duties are entirely different from that of all other government employees.
It is unfortunate that none
of CPC for central government employee had ever done the job evaluation of the
central government employee in the different cadre and so the employee in
different cadre especially in loco running cadre in railway has been deprived
of their legitimate pay scale. All most all the CPC have taken into the
consideration the qualification of the post alone thus discrediting those
employees who are required to perform strenuous duties involving severe mental
stress. It is therefore suggested to give due credit to the job attributes also,
while determining the pay scale.
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?
Ans: The central government being
a model employer its employees should be treated accordingly and placed in a better
position than the employees of public/private sector are.
The Central Government
employees are the main sources through which the government policies are reflected,
managed efficiently, implemented successfully and so the pay scale and the
perquisites should be so attractive to draw efficient brains and highly talented
persons. in the Central Government Service. The strong building of nation and
its economy mainly depends upon the skills of the employees in managing the
government’s policy.
The pay scales and perquisites
of an employee in Public/Private sectors depends on its economical conditions,
the attitude of an employer and the bargaining capacity of workers, its trade
unions and so in the different sectors the employee avails different types of pay scales, perquisites
which cannot be quantified due to different nature of its work field. The main
function of the government establishments is to govern the country, to protect
the national public security and its interest in various fields. No doubt, it
leads some production units and some social utility services like railways sole
purpose of which are to serve the public and to contribute towards nation building.
The private sector motive is to make maximum profit whereas the Government
sectors ought to be service oriented serving the needs of the nation for which
sincere, dedicated, and motivated and better off employees is a must.
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?
Ans: Yes. For the sake of a
fair comparison of wages.
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?
Ans: As already stated, when
working system, responsibilities and accountability of public sector and
government employees’ is incomparable, then concept of variable pay for central
Government employees’ cannot be acceptable.
In railways, the performance and the punctuality are the fruits of
team work, which involves different departments, divisions and zones. So the
individual performance cannot be assessed in a fair way. Hence linking variable
pay to performance is unwarranted. The motto of central public enterprises is
profit, but in the government establishment, the concept is social justice.
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?
Ans: Any compensation package
for attracting talent is appreciable. But this should not be limited for All
India Services and Group A Services. There is an indication in the question that
there is no need of talent in the lower posts. Since Group A officers in
Central Government Service enjoy enormous power, perks and other standalone
privileges it continues to attract talents. In fact, only the most talented
among the talent pool enter the service owing to UPSC recruitment system and
those entering the service rarely quit.
Even a lot of Engineering/Medical/Management professionals are being
attracted to the service. Therefore compensation if required should not be
limited to Group A alone. In the Group C services too improvements need to be
made.
3.2 To what extent should government compensation be structured to
attract special talent?
Ans: Government may require
the service of professionals and technocrats with special talents for specific
jobs. The Commission may evolve a scheme for the recruitment and retention of
such professionals and technocrats with special perks, allowances and flexible
service conditions.
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?
Ans: There are grave
injustice because of the introduction of pay bands and merging of different pay
scales of different functional post in one grade pay by the sixth CPC. Merging
of promotional/feeder post in one grade pay not only demoralized the employees
but also made least interested in promotion which involves transfers and higher
responsibilities. In the sixth CPC, there was double standard adopted between
the employees’ and officers. All the group C&D employees were covered in 8
grade pays whereas remaining all grade pay were granted amongst the Group B and
Group A officers. And this resulted in lots of disputes between the employees; many
are in the consideration of the court of law.
The Pay Band and Grade Pay system evolved by the 6th CPC in
implementation of the concept of performance related pay structure in civil
service, as mentioned elsewhere, was a disaster. Having introduced without
proper consultation with the stake holders, It did not serve the requisite
purpose. The system brought about innumerable anomalies of varied nature, which
could not be addressed by the National or Departmental Anomaly committees
within the parameters stipulated by the Government. The failure of these
committees to address the issues which were appreciated by all concerned as
genuine stand testimony of the incorrigible character of the scheme leaving no
alternative except to discard it to be replaced by the Pay scale structure. The
introduction of pay band by sixth CPC, the impact was that there is no
stagnation of pay and nothing else. We suggest the scales of pay be open ended.
4.2 Is there any need to bring about any change?
Ans: Yes. There is a need to
revert to Time Scale pattern of wage structure abandoning the Pay Band &
Grade Pay Structure. The time scale of pay should have a minimum pay and annual
increment at the rate mentioned in answer to question No. 5.2 but without any
maximum so that it is a running pay scale. This will eliminate the phenomena of
stagnation. If the commission decides to retain pay band system, then the
number of Grade pay be increased for group C post, to eliminate the problem of
feeder and promotional post lies in same grade pay as exist in the category of
Loco pilots of Indian railways.
4.3 Did the pay bands recommended by the Sixth CPC help in arresting
exodus and attract talent towards the Government?
Ans: It was assumed by sixth
CPC that higher pay package to higher post will attract talent and honest candidates
in the higher post. However, it did not arrest exodus and attract talent
especially in group C post and also in specially qualified technocrats and
professionals. Withdrawing statutory pension scheme invariably cause exodus and
central services non attractive.
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?
Ans: Successive Pay
commissions had reduced the pay scales only at the Group C and D levels. It has
now reached a saturation point. There is no much scope to have further exercise
in this direction, rather there is definite need to increase the number of
Grade pay/scales in Group C.
4.5 Is the “grade pay” concept working? If not, what are your
alternative suggestions?
Ans: The same Grade Pay is
allotted for different posts, which carry different duties and
responsibilities, after the merger of some scales. For example under the
ministry of Railway, Loco Pilot Shunting Grade1, Loco Pilot Goods, Loco Pilot
Passenger, Motor man and Loco Pilot Mail have been allotted with one and the
same grade pay of Rs.4200, even though all these posts are declared as
promotional posts with selection process, and thus allowing the same Grade Pay
is unjust and unfair. Whereas the Primary teacher, the Senior teacher and the
Head masters have been granted three different grade pays even though there was
no much functional difference between the posts. Same is the case with the
nursing staff who have been given grade pay 4600, 4800, 5400 & 6600. Such
anomalies crept into the system because of indiscriminate merging of posts. In
practice it is seen that very few employees prefer to take higher
responsibility as taking of higher responsibility did not accrue any higher
emoluments than what they hold in lower post. The concept of Grade pay is not
working at all, as it gives rise to a lot of anomalies and disputes. It must be
replaced with the time scale pay structure.
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?
Ans: No. In fact the single
date increment system has brought in anomalies, which were discussed at length
at the National Anomaly Committee, without reaching an agreement. In our
Opinion, the commission must recommend, for administrative expediency, two
specific dates as increment dates. Viz. Ist January and Ist July. Those
recruited/appointed/promoted during the period between 1st Jan and 30th June,
will have their increment date on 1st January and those
recruited/appointed/promoted between Ist July and 31st December will have it on
Ist July next. This apart the Commission is required to recommend specifically
that those who retire on 30th June and 31st December be granted one increment on the last day of their
service.
5.2 What should be the
reasonable quantum of annual increment?
Ans: The present 3% is
inadequate as no Group C Employee will reach even 75% of the pay band even
after 30 years of service. Therefore it should be enhanced to at least 5% to
motivate performance.
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?
Ans: No need of provision of
variable increments because it will be impracticable to derive objective
parameter to assess high achievement uniformly applied across Central services.
Therefore, it gives way to nepotism.
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?
Ans: The present three
financial up gradations to be raised to five, one in every 5 years. Such
financial upgradation on should be given on cadre hierarchical and not as
present. The para 8 of MACP should be
dispensed with since it contradicts Para no.2 of MACP which states that financial advancement on
application of MACP will be 3% increasing pay in Pay band plus next grade pay.
Para 8 nullifies this. The scheme is required to be continued to motivate
employees. Normal promotions are dependent upon the availability of vacancies
at higher levels. The job requirement of certain organizations may not be
capable of creating requisite number of higher level positions whereas it might
need large number of personnel at lower levels. MACP alone can take care of
that specific situation. The arduous route of career progression through
examination and professional qualification, no doubt will be preferred if and
if only such promotions are made available for the eligible candidates within a
reasonable period of residency in the feeder cadre. Say three years.
Weaknesses:
a) On implementation of MACP
juniors get more pay than seniors in many categories.
b) The historical horizontal and vertical relativity that existed
prior to 6th CPC have been totally shattered.
6.
Performance
What kind of incentives would
you suggest to recognize and reward good performance?
Ans: In the present scenario
and in the present practice the method of analyzing the performance in various
departments is not conducive and equitable, will invariably lead to demoralize
the honest employees as nepotism intrudes.
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?
Ans: The fiscal deficit of
all the states in the aggregate declined in the recent years. The performances
in aggregate of the states have been quite spectacular to the extent that many
states have already achieved fiscal correction aided by enhanced tax revenues
due to the introduction of VAT. The successful introduction of VAT has
contributed to increased tax revenues. Most of the states adopted the sixth CPC
recommendations. It is our assessment that the most of the states would be in a
position to meet the additional expenditure arising on account of the
implementation of the recommendation of the 7th CPC. Devolving more tax revenue
share between centre and state can also be undertaken.
Capacity of a Governmental organization to pay cannot only be gauged
from the available resources but also from its potential to raise resources.
Wages cannot be determined on the single factor of capacity of the Government
to pay. It must be noted that there are various State Governments in the
country that pay better pay packets, perquisites and allowances to its
employees than what is provided to the Central Government employees. Panchayati
Raj institution, Municipalities, normally follow the salary structure of the
respective State Governments. It is also to be noted that various State
Governments do revise the wages of their employees once in five years. In any
case the incapacity of the government to pay cannot be a justification to deny
the minimum wage to workers and the salary structure based upon that concept,
especially in the background that the government is to function as a model
employer.
8. Defence Forces (8.1 to
8.6)
Ans: No comments.
9.
Allowances
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?
Ans: All allowances have
their own unique purposes and evolved based on detailed deliberations by
successive pay commissions. Therefore, it should be retained and improved progressively
9.2 What should be the principles to determine payment of House Rent
Allowance?
Ans: The principle adopted to determine HRA should
not be exclusively based on the population at the cities but should also
include the rate of rent prevailing. There should be a minimum HRA guaranteed
for those in lowest grade pays, irrespective of the pay drawn, which is to be
fixed taking into account the original
rent rate prevailing in the area for a 2 BHK house.
10. Pension
10.1 The retirement benefits of all Central Government employees
appointed on or after 1.1.2004 are covered by the New Pension Scheme (NPS).
What has been the experience of the NPS in the last decade?
Ans: Experience is very bad. Instead of NPS,
statutory pension need to be restored for the reasons –
1. Pension of government employees
is a deferred wage. Wage paid out to
them during the course of work tenure is kept low by design to cater for
pension.
2. Pension is a social
welfare measure and cannot be subjected to market risks
3. It does not guarantee
minimum return and thus lacks basic fibre of social security scheme.
4. It is in no way better
than the existing scheme. It does not provide guaranteed family pension to the
dependants and disabled siblings which exist in statutory pension scheme, even
in case of spouse and dependant parents where death of the employee occur in
early years of service there is no adequate social security. Leaving the honest
employee, unattended, uncared in his fag end of life is not ethical and against
the right enshrined in constitution and against morale.
5. The New pension scheme
has in fact created a class within class amongst the Central Government employees
which is discriminatory and impermissible. It is clearly in contravention of
the dictum pronounced by the Constitution Bench of the Supreme Court in Nakara
Vs Union of India and therefore deserves to be rescinded.
6. And all the employees are demanding to scrap
the NPS and include them in old pension scheme. For the same, all
trade unions in the national level are on the war path. So it is significant to
withdraw the NPS and allow old pension scheme to all.
10.2 As far as pre-1.1.2004 appointees are concerned, what should be
the principles that govern the structure of pension and other retirement
benefits?
Ans: The concept of modified
parity introduced by the 5th CPC must be replaced with the full parity concept
as was made applicable for the personnel retired prior to 1.1.1986. In other
words, the pay of every retired person must be re-determined notionally as if
he is not retired and then his pension to be computed under the revised rules.
This alone will protect the value of pension of a retired person.
5th CPC in their Para 127.6 has observed, “It needs to be averred
emphatically that pension is not in the nature of alms being doled out to
beggars. Senior Citizens (Retired Government employees) need to be treated with
dignity & courtesy benefitting their age. Pension is their statutory,
inalienable, enforceable right & it has been earned by the sweat of their
brow” Hon’ble Supreme Court, in its landmark 5 Judge Constitutional Bench
judgement dated 17.12.1982 in the case of D.S. Nakara Vs Union of India ruled –
“A Pension scheme consistent with available resources must provide
(adequate pension) so that the Pensioner would be able to live -
i) Free from want, with decency, independence and self respect and
ii) In a same standard equivalent to that prevailed before retirement
iii) Pensioners from payment of pension form a homogenous class.
Different formulae affording unequal treatment cannot be adopted to
compute their pension solely on the ground that some retired earlier and some
retired later.
A comprehensive scheme of retirement benefit has been suggested by the
stake holders both as an agenda in the National Council meeting of JCM and the
meetings of SCOVA. The Commission is requested to consider the well thought out
scheme formulated in those agenda and make recommendations to the Government,
so that the pension and retirement benefits will really become meaningful for
the retired employees.
A] Full pension should be 65% of the last drawn Basic Pay instead of
50%.
B] Dearness Relief to be merged with basic pension whenever dearness
relief crosses 25%.
C] Pension to be enhanced by 5% in every 5 years.
11. Strengthening the
public governance system
11.1 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?
Ans: The then existing Group
D employees, to the best of our understanding have all been trained, upgraded
or promoted to function as skilled group C employees.
11.2 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;
b) Rationalisation of processes and reduction of paper work; and
c) Economy in expenditure.
Ans: Whatever rationalization
effected so far by the Government had been through an unscientific and
arbitrary executive fiat like the one issued in 2001 and which was kept
operative till 2009. The said exercise only reduced the staff strength
drastically. We are not aware of any rationalization or reduction in Group A
cadres through this exercise even though the executive instruction covered all
grades and cadres in the Government service. It in effect made most of the
departments of the Govt. of India either non functional or dysfunctional. In
our considered opinion, the 7thCPC must recommend to the Government to set up a
Committee in each department with experts from outside the organization, the
officials from within the organization and representative of the Unions of the
respective department. Such committee shall study the functional changes taken
place over the years, especially due to the induction of modern technology the
new challenges and the best way to meet those challenges’ reduction in paper
work, customer satisfaction and economy in expenditure and make suggestions to
the Government for their acceptance and implementation in toto.
12. Training/ building
competence
12.1 How would you interpret the concept of “competency based
framework”?
Ans: This in fact is a matter
which must be considered by an Administrative Reforms Commission rather than a
Pay Commission.12.2 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?
Ans: In our opinion in -
service training is the best course for skill development.
13. Outsourcing
13.1 What has been the experience of outsourcing at various levels of
Government and is there a case for streamlining it?
Ans: Outsourcing deteriorates
the quality of service due to lack of dedication and accountability and it
paves way for corruption. It will lead to labour exploitation also.
13.2 Is there a clear identification of jobs that can be outsourced?
Ans: Jobs of perennial nature should not be
outsourced.
14. Regulatory Bodies (14.1
to 14.3)
Ans: 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?
Ans: As far as Railway is
concerned, it is defined as an industry. Therefore instead of productivity
linked bonus statutory bonus should be given.
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