Wednesday, May 14, 2008

Circular dated 14th May,2008



CHQ: Manishinath Bhawan A2/95 Rajouri Garden

New Delhi. 110027

Phlone: 25105324 Fax :  25105324


Cell phone: 9811048303

Dated: 14-05-2008



Dear Comrade,


We place hereunder the official Minutes of the Standing committee meeting held on 7th May,2008. We do not fail to notice that the observation maid by the Secretary (Personnel) during the discussion that the recruitment to carry out the Group D functions would continue even after the whole scale up-gradation of all the Group D Posts into Group C, the only condition being the academic/eligibility condition of Matriculate/Inspector of Income Tax diploma do not find a place in the official minutes.


            The Committee of Secretaries will now meet the Staff Side on 17th inst


            With greetings,


Yours fraternally,



Secretary General

Minutes of the meeting of Standing Committee held on 7.5.2008


Opening Address


I.       A meeting of the Standing committee of the National Council (JCM) was held on 7.5.2008 in Conference Room No. 119, North Block, New Delhi, under the Chairmanship of Secretary (Personnel). 


The list of the members who attended the meeting from official side and staff side is placed at Annexure-I.


II.      The Chairman and Secretary, DoP&T welcome and thanked staff side and officials for attending  the meeting at a very short notice.  He requested the cooperation of the staff side for implementation of the 6th CPC recommendations at the earliest.


Thereafter the Chairman invited the leader and the Secretary, staff side.


III.            Leader of the staff side thanked the Chairman for his sustained cooperation for considering and resolving the grievances of staff side and organizing the meeting. He raised various issues for consideration in the meeting relating to the 6th CPC report. He conveyed the agitated feelings of various sections of employees more particularly those belonging to industrial establishments and explained the need to resolve the grievances for generating motivation and satisfaction.


Secretary staff side thanked the Chairman and conveyed the appreciation of the staff side regarding the positive atmosphere in which the meetings have been conducted and problems resolved.  He informed that various reactions are coming from employees in various parts of the country.  This is the first time that the pattern of the scales in Pay Commission has been changed.  He stated that Indian economy is on higher side, therefore, the Govt. servant should also be given his due and grievances resolved.  He also welcomed the invitation of DoP&T to hold first meeting in respect of the issues arising out of the 6th CPC.

           Secretary Staff side informed that the more we go through the report we come across more problems, however he requested to go through the agenda items.

  Thereafter discussion on the  agenda items commenced. 


1.       A. The minimum wage

           The computation of minimum wage of the 6th CPC is not acceptable for the following reasons in brief:-

i)          Prices applied for various commodities (included in the basket) is the wholesale price as increased by 20% which is not the norms prescribed by the 15 ILC;

ii)         The exclusion of 25% for meeting expenditure connected with social obligation like marriage, education of children, recreational needs etc. is on the untenable grounds.

iii)        The exclusion of 10% for the housing requirement (on the ground that HRA is given separately) is not correct as HRA is not a full reimbursement of the expenses incurred by the employee.


If these corrections are carried out the need based minimum wage will be what is computed by the staff side.


B. Even as per the formulation adopted by the 5th CPC the minimum wage works out to Rs.7400 i.e. by application of the percentage increase of the net national product which comes to 56.2%.


C. The Commission, without assigning any reason has rejected the demand of the staff side for parity in the minimum wage with what is obtaining in certain specified public sector undertakings.


D. For the above reasons, the minimum wage need to be worked out afresh and the same reflected in all the pay bands appropriately by applying the resultant multiplication factor as was done by the 5th CPC.


The Methodology of the 6th CPC in determining the minimum wage was explained by the official side.

During the discussion the Secretary staff side said  that the pay of any employee was 1.86 times of the basic pay in December 2005 whereas on 1.1.2006 as per the recommendations of the 6 th CPC has been taken as 1.74 times of the basic hence this reduction of 12% should be restored  to bring it at par with the pay  of December 2005.

The difference in retail price of various commodities has been taken as 20% above  the wholesale price.  However the staff side pointed out that as per the survey report of ASSOCHAM the retail price was 60% higher than the wholesale price.  A copy of the report was handed over to the Chairman and other members of the official side.  The staff side asked for the recomputation of the minimum wage as per the actual retail price of the commodities.

The staff side also stated that the addition of additional expenditure of 25% prescribed by the Supreme Court is for:

(a) educational expenses which are not fully reimbursed (except tution fees/hostel subsidy) like cost of books, uniform, transporation charges etc.

(b) medical expenses are only partially reimbursed.

(c) There is no separate compensation for social obligation like marriage, ceremonies etc.

(d) Old age security has assumed importance due to the fact that 10% of the emoluments are now being deducted from the salary of new entrants towards NPS.

In the light of the above, the staff side insisted that the additional expenditure @ 25% should be provided for the computation of minimum wage.In view of the provisions of FR 45A and 45 C and Rule 2A of the I.T. rules, 10% of total pay should also be added in the computation of minimum wage and not merely 3% as has been done by the 6th CPC.


The staff side further pointed out that the pay bands devised by the 6th CPC is contrary to what they have indicated in para 2.2.19(vii) of their report.  The pay band should have been devised with reference to minimum of the highest pay scale of the band.  By taking the minimum of the lowest pay scale of the band the CPC has virtually merged all the higher pay scales in the band into the lowest pay scales


The Chairman assured that the suggestions would be brought to the notice of the competent authorities.


2.       Fitment formula


Rejection of point-to-point fixation (which is normally adopted by the PSUs in their wage revisions as fitment formula) is for no sound reasons. There is no 40% hike as propagated by the Commission. By withdrawing the benefit of merger of DA the actual rise is between 15 to 28%. Our demand in this connection is as under:-


a)   The merged portion of the DA should be taken into account to arrive at the revised basic pay and Grade Pay in each case.

b)   Since quite a number of pay scales have been merged together (especially in Gr. B & C cadres) the senior employees who were in higher scales of pay and who have put in large number of years of service progressively get reduced benefits.

c)   Taking these two factors into account we suggest that the fitment formula as suggested by the Commission may be amended to incorporate the following:


"subject to the condition that the pay and grade pay so fixed is not less than 2.625 times of the pre revised basic pay."


The multiplication factor of 2.625 is the same as is applied in the case of the entry grade pay band and grade pay in the case of Gr.A officers. This clause will make good the loss of benefit one might suffer due to the exclusion of the DP from the computation process of fitment formula.


Secretary staff side informed that there was no 40%  hike as propagated  by the Commission the actual hike is between 15 to 18%.  They suggested the fitment formula as above.

It was explained by the official side that the situation in b) above had happened even after the 5th CPC's recommendations and was not a new feature.

The staff side clarified that in 5th CPC with the adoption of fitment formula of 40% which was deduced from the common multiplication factor of 3.25 (as opposed to fixed amount of grade pay) the impact of anomaly considerably reduced.


Chairman informed that it would be brought to the notice of the competent authorities.


3        Rate of increment


a)   The rate of increment suggested by the CPC is to be raised to 3.5% for the following reasons:-


i)     The 2.5% is below the existing rate of increment in many grades.

ii)    Due to the compounding factor, over a period of ten years, this might rise to 4.5% still less than the prevailing rate of increment in the PSUs which is 5% and above.


b)   The condition prescribed i.e. to have a minimum six months for applying the uniform date of increment must be done away with, as it is only to be applied in the initial year.


They requested for a uniform increment rate of 3.5%.


The official side informed that it has been noted and would be brought to the notice of the competent authorities.


4.       Transport allowance


The recommendation of the Commission is to subsume the CCA in the Transport allowance and raise the existing Transport allowance by 4 times. This has reduced the proportionate benefit to certain grades and categories of employees. We make the following suggestions:-


a)   Since the CCA has been subsumed in this allowance, no condition should be imposed for the grant of this allowance.

b)   Taking into account that some of the employees might get reduced benefit from the across the board rise at the rate of 4 times, the following rates may be applied.


Employees drawing grade pay      A-1/A class cities              Others

Rs.5400 and above                          Rs.3200+DA               Rs.2400+DA

Rs.4200-4800                                  Rs.2400+DA               Rs.1800+DA

Below Rs. 4200                               Rs.1600+DA               Rs.1200+DA


The staff side stated that the revised rates suggested by them is to take into account the effect of the errata issued by the Pay Commission later and to provide proportionate benefit to category between the grade pay of Rs. 4200 and 4800).


The staff side further proposed that 50% of Transport allowance should be taken into account for the OTA computation.


            Since CCA has been subsumed in this allowance hence there should not be any other restrictions such as persons living in the campusOfficial side stated that the issues will be looked into.


5.       Fixation of pay on Promotion


In the present scheme of things, wherein many grades have been merged under one single Pay band, promotion will not bring about any significant rise in emoluments. The benefit will be very insignificant in the case of promotion from one grade to another where the grade pay is one and the same. In that case the one increment benefit will be less than even what is obtaining today. We suggest to incorporate the following clause to take care of this situation.


"the pay plus grade pay so fixed on promotion shall not be less than 10% of pay plus grade pay the individual was drawing in the feeder cadre."


It was informed that the merits of the contentions of the staff side would be looked into.


6        Allowances and benefits withdrawn


Certain allowances and benefits have been withdrawn to be replaced with a new scheme. The New scheme will have to be formulated on the basis of discussion/agreement in the National/Departmental Council as the case may. Till such agreement is reached, the old scheme of allowances and benefits will continue to be operated relating to the revised basic pay and grade pay.


It was stated by the staff side that no allowances should be stopped. As far as the risk allowance is concerned it should continue and the risk insurance as proposed by the 6th CPC should be in addition.  They indicated that risk allowance given by the Govt. is to add to the nutritious diet of the employee so that the physical harm done by the risky job is at least partly minimized.

The staff side further stated that overtime and bonus should continue to be paid and should not be discontinued.  Any job related incentive scheme should be discussed separately and settled.

The official side stated that these issues will be looked into.


7.       Special duty allowance of North Eastern Region


We hope that the SDA will now become available for all employees working in the North Eastern Region. However, we feel that it is likely that the phraseology employed in detailing the scheme is capable of misinterpretation giving room for further discrimination amongst the employees posted in N.E. Region. This may, therefore, be appropriately clarified to mean that the employees and officers working in North Eastern Region are  entitled to draw this allowance.


Staff side requested for correct phraseology.

It was informed by the official side that once Govt. has taken a decision on the matter, the issues raised will be looked at the time of issue of orders.


8.       Daily allowance on tour


The rates of daily allowance which include the following elements, viz. food, conveyance and accommodation suggested by the Commission to the officers other than Gr.A is extremely meagre  and would not go to meet the expenditure involved. We suggest the following amendment.

The rates prescribed for grade pay of Rs.4200 to 4800 and below Rs.4200 may be replaced with the following.


Rs.4200 to 4800 Reimbursement of hotel accommodation of upto  Rs.1000 per day. Reimbursement of travel charges upto Rs.150 per diem for travel within the

city and reimbursement of food not exceeding Rs.200 per day. Below Rs.4200    Reimbursement of hotel accommodation of upto Rs.700 per    day. Reimbursement of travel charges upto Rs.150  per diem for travel within the city and reimbursement of food not exceeding Rs.200 per day.


Staff side requested that no bill should be required to support the claim for reimbursement of local travel and food as it was not possible to obtain any bill from local traveling modes and same was true for food also.

The official side stated that this was a matter of detail which could be considered once Govt. has taken a decision on the matter.


9.       Promotion ACP scheme


The scheme should be improved to provide three promotion at the intervals of ten, twenty and twenty five years of service.


They indicated as per the recommendations the ACP scheme is having reduced affect and hence not acceptable.

                 The official side stated that the matter would be examined.


Secretary staff side requested that soon after implementation of 6th CPC cadre restructuring should take place so that stagnation/hierarchy problems do not occur.


10.     Inappropriate rationalization.


There is a great deal of resentment over the rationalization of the scales of pay of S9 to S.12. The grievances in this regard must be addressed by appropriate decisions.


The staff side requested that the staff with qualifications of Matric/ITI should be placed in 3050-4590 grade instead of 2750-4400.  This issue is important for M/o Railway and Defence.


            The staff side insisted that the grade pay for S 11 and S 12 be appropriately revised as the 4 scales of pay merged in the pay band 2 have been provided with the same grade pay.


The staff side pointed out that the highest group B pay scale (2375-3500) had an edge over the Group A induction pay scale (2200-4000) in the IVth CPC, 5th CPC reversed this by granting Rs. 500 more to Group A induction pay scale.  The 6th CPC has further widened this gap to Rs. 7500.  This is not acceptable.  In this connection the staff side also pointed the grant of PB 3 to the Divisional Accounts Officers Grade I whereas all others have been placed in PB 2.


The official side informed that this demand of the staff side would be placed before the  higher authorities. 


11.    Pension


The Staff Side appreciates the acceptance of some of its suggestions for improving the pension of the old pensioners by the Commission. However, we feel the following amendment is needed in the case of pensioners.


a)    The minimum pension must be the minimum of the PB. with grade pay.

b)    The 5th CPC suggestion to  refix the pension on the basis of the notional pay as     on 1.1.1996 is to be implemented. The pension entitlement has to be worked out on that basis. The new commutation table to be applied only prospectively.

The restoration of commuted value of pension should be on completion of 12 years.


The staff side demanded that the recommendation for revising the commutation table may not be accepted and the commuted amount of pension may be restored after 12 years on the plea that the Govt. was recovering the entire amount of commuted value along with interest within that period.  They further stated that the submission made by them before the Secretary (Pension) may be considered.                                                 


Director(Pension) informed that they had received a representation through staff side and it would be examined and would be placed to the higher authorities through Secretary (Pension).


12      Fast Track Committee


There are cases like the Master Craftsmen, where the existing pay scales have been reduced to a lower scale. To consider these types of cases, a fast track committee may be set up.


It was informed that the certain categories like Master Craftsman in Railways are in 5000-8000 scale whereas now they have been brought down to 4500.  Secretary staff side emphasized that similarly in case of Pharmasists the whole background placed before the Pay commission is wrong therefore, wrong decision has been taken.  It need to be corrected immediately.  In the case of the Master craftsmen in Ministry of Defence  and LDC also similar anomaly exists.  They have requested to set up the Fast Track Committee in the concerned department to resolve.


The Chairman requested them to inform if they notice any such anomaly in near future in some other category also.


            Demand of the staff side was noted by the official side.




13      Anomalies


There are certain anomalies arising from the disturbance of vertical and horizontal relativities etc. For quick and time bound disposal of these anomalies a Joint Committee of the National Council JCM with the participation of the Secretaries of all concerned Ministries should be constituted.


The Chairman informed that since the departments/ministries did not have financial experts to deal with the 6th CPC recommendations hence it would be looked into at a later date.


14      Grameen Dak Sewaks


Grameen Dak Sewaks are employed by the Postal Department. They constitute the largest segment of the workforce of the Postal organization. We suggest that the pay, allowance, pension and other benefits in their case should be proportionately what is suggested to the regular civilian employees. Since the Group D Cadres have been abolished, they may be promoted/absorbed/regularized in Group C cadres in the same manner provided for matriculate/non matriculate regular Group D employees.


The representative of Department of Posts informed that the Gramin Dak Sewaks were out of the purview of JCM hence it would not be appropriate to discuss this issue in this meeting.  However, they informed that a separate Committee has been set up to look into the grievances.


It was further stated by the staff side that according to recommendations of the 6th CPC, all group D employees would be upgraded to group C post w.e.f. 1.1.2006.  They would continue to do the same job and would be paid arrears.

The Chairman assured that the issues discussed with the staff side would be brought to the notice of the higher authorities dealing with the VIth    CPC . He expressed his confidence and requested that the support of the staff side to resolve the legitimate issues should continue and their assistance whenever required would be taken.    He also stated that at a later stage the Committee of Secretaries may also discuss these issues with the staff side and that the process of consultation is likely to be  completed by  June end 2008. 

Secretary staff side thanked and assured of the continued support of the staff side.



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