Funds for DA Merger and Interim Relief on 7th CPC recommendations
Central Trade Unions submits Memorandum to Finance Minister to allocate funds for DA merger with pay and Interim Relief to Central Government Employees on 7th CPC recommendations
100% merger of DA with Basic Pay of PSU Employees requested
The Hon’ble Minister of Finance, Govt. of India,
North Block, New Delhi
Dear Sir,
We thank you for inviting the central trade unions
representing the working people in the country in both organized and
unorganized sector for this pre-budget consultation.
In the previous pre-budget consultation meeting with
you held on 6th June 2014, we urged upon you to please consider a
directional change in the economic policy regime from that pursued
during the previous government which, you have also admitted, had landed
the country’s economy in a bad situation. In fact, we had articulated
our views and proposals on that premise. But we like to submit candidly
that our proposals did not receive a positive response and the economic
policies followed the same trajectory and made situation worse for the
mass of the people during the intervening period.
Sir, the Mid Term Economic Analysis (2014-15) by
Govt of India itself admitted that for the period under review despite
increase in GDP growth rate, and a much bigger increase in profit of the
corporate sector and big business lobby, the wages for the working
people who actually create the GDP in both rural and urban areas plunged
on the average. Overall standard of living of people deteriorated and
unemployment situation in the country has not improved in the least.
Much more jobs were lost owing to closure/lockout, retrenchment than
created during the intervening period. And in the midst of such
situation, the Govt has already decided to cut already budgeted
expenditure in the social sector such as MNREGA, Health, Education etc
which we strongly deplore. Such a phenomenon warranted serious
reconsideration on directional change in the economic policy regime and
we again urge you for the same.
We express our serious concern and dismay over the
manner the Govt have been pushing various major economic policy related
decisions through promulgation of Ordinances. At least eight Ordinances
were promulgated during last eight months of the new Govt. We record our
determined opposition to such practice of Ordinance route of
governance. In particular we also oppose the Ordinance on coal sector,
insurance sector and on Land Acquisition Act and want you to please take
note of the rousing opposition and struggles by the workers and the
farmers against such disastrous exercises. We demand all such Ordinances
should be withdrawn forthwith.
We wish that our candid observations, considered
views and concrete proposals are taken in the right spirit and responded
with all seriousness and given appropriate reflections in the ensuing
budget 2014-15.
Our proposals:
Some of these specific proposals have time and again
been placed by us in various policy making fora including the earlier
pre-budget consultations. However, we would like to reiterate them,
urging your positive response:
Take effective measures to arrest the spiraling
price rise and to contain inflation; Ban speculative forward trading in
commodities; Universalise and strengthen the Public Distribution System;
Ensure proper check on hoarding; Rationalise, with a view to reduce the
burden on people, the tax/duty/cess on petroleum products.
There must be massive investment in the infrastructure in order to stimulate the economy for job creation. The
Mid Term Economic Analysis(2014-15) published by Govt of India has
clearly mentioned about the failure of the PPP experiments in
infrastructure development and opined for public investment. It
is our considered view that the Public sector should take the leading
role in this regard. The plan & non-plan expenditure should be
increased in the budget to stimulate jobs creation and guarantee
consistent income to people.
Minimum wage linked to Consumer Price Index must be
guaranteed to all workers, taking into consideration the recommendations
of the 15th Indian Labour Conference as enriched by Apex Court of the
country as reiterated in 44th ILC in 2012. In any case, it should not be
less than Rs.15,000/- p.m.
FDI should not be allowed in crucial sectors like
defence production, telecommunications, Railways, financial sector,
retail trade, education, health and media.
The public sector units played a crucial role during
the year of severe contraction of private capital investment
immediately following the outbreak of global financial crisis. PSUs
should be strengthened and expanded. Disinvestment of shares of profit
making public sector units should be stopped forthwith. Budgetary
support should be given for revival of potentially viable Sick CPSUs
In view of huge joblosses and mounting unemployment
problem, the ban on recruitment in Govt. deptts, PSUs and autonomous
institutions (including recent Finance Ministry’s instruction to abolish
those posts not filled for one year) should be lifted as recommended by
43rd Session of Indian Labour Conference. Condition of surrender of
posts in govt. departments and PSUs should be scrapped and new posts be
created keeping in view the new work and increased workload.
Proper
allocation of funds be made for interim relief of 20% and 100% DA merge
with basic pay and allowances including neutralization percentage be
paid on merged DA in view of 7th CPC to all Govt. employees. Similarly,
100% DA of PSU employees be also merged with basic pay.
The scope of MGNREGA be extended to agriculture
operations and urban areas as well and employment for minimum period of
200 days with guaranteed statutory wage be provided, as unanimously
recommended by 43rd Session of Indian Labour Conference. The drastic cut
already inflicted on the MNREGA allocation should be restored.
The massive workforce engaged in ICDS, Mid-day meal
scheme, Vidya volunteers, Guest Teachers, Siksha Mitra, the workers
engaged in the Accredited Social Health Activities (ASHA) and other
schemes be regularized. No to privatization of centrally funded schemes.
Universalisation of ICDS be done as per Supreme Court directions by
making adequate budgetary allocations.
Steps be taken for removal of all restrictive
provisions based on poverty line in respect of eligibility coverage of
the schemes under the Unorganised Workers Social Security Act 2008 and
allocation of adequate resources for the National Fund for Unorganised
Workers to provide for Social Security to all unorganized workers
including the contract/casual and migrant workers in line with the
recommendations of Parliamentary Standing Committee on Labour and also
the 43rd Session of Indian Labour Conference.
Remunerative Prices should be ensured for the
agricultural produce and Govt. investment public investment in
agriculture sector must be substantially augmented as a proportion of
GDP and total budgetary expenditure. It should also be ensured that
benefits of the increase reach the small, marginal and medium
cultivators only;
Budgetary provision should be made for providing
essential services including housing, public transport, sanitation,
water, schools, crèche health care etc. to workers in the new emerging
industrial areas. Working women’s hostels should be set up where there
is a concentration of women workers.
Requisite budgetary support for addressing crisis in
traditional sectors like Jute, Textiles, Plantation, Handloom, Carpet
and Coir etc.
Budgetary provision for elementary education should
be increased, particularly in the context of the implementation of the
‘Right to Education’ as this is the most effective tool to combat child
labour.
The system of computation of Consumer Price Index
should be reviewed as the present index is causing heavy financial loss
to the workers.
Income Tax exemption ceiling for the salaried
persons should be raised to Rs.5 lakh per annum and fringe benefits like
housing, medical and educational facilities and running allowances,
Railways Running Staff and a staff in other deptts should be exempted
from the income tax net in totality.
Threshold limit of 20 employees in EPF Scheme be
brought down to 10 as recommended by CBT-EPF. Pension benefits under EPS
unilaterally withdrawn by the Govt. should be restored. Govt. and
Employers contribution be increased to allow sustainability of Employees
Pension Scheme and for provision of minimum pension of Rs.3000/- p.m.
New Pension Scheme be withdrawn and newly recruited
employees of central and state govts on or after 1.1.2004 be covered
under Old Pension Scheme;
Demand for Dearness Allowance merger by Central
Govt. and PSUs employees be accepted and adequate allocation of fund for
this be made in the budget;
All interests and social security of the domestic
workers to be statutorily protected on the lines of the ILO Convention
on domestic workers.
The Cess Management of the construction workers is
the responsibility of the Finance Ministry under the Act and the several
irregularities found in collection of cess be rectified as well as
their proper utilization must be ensured.
In regard to resource mobilization, we would like to emphasize the following:
A progressive taxation system should be put in place
to ensure taxing the rich and the affluent sections who have the
capacity to pay at a higher degree. The corporate service sector,
traders, wholesale business, private hospitals and institutions etc.
should be brought under broader and higher tax net. Increase taxes on
luxury goods and reduce indirect taxes on essential commodities as at
present the overwhelming majority of the populations are subjected to
Indirect taxes that constitute 86% of the revenue.
Concrete steps must be taken to recover huge
accumulated unpaid tax arrears which has already crossed more than Rs.5
lakh crore on direct and corporate tax account alone, and has been
increasing at a geometric proportion. Such huge tax-evasion over and
above the liberal tax concessions already given in the last two budgets
should not be allowed to continue.
The SIT constituted for unearthing black money must
deliver visible result which is yet to be seen. Effective measures
should be taken to unearth huge accumulation of black money in the
economy including the huge unaccounted money in tax heavens abroad and
within the country. Finance Minister should make provisions to bring
back the illicit flows from India which are at present more than twice
the current external debt of US $ 230 billion. This money should be
directed towards providing social security.
Concrete measures be expedited for recovering the
NPAs of the banking system which is on the increasing trend again from
the willfully defaulting corporate and business houses. By making
provision in Banking Regulations Act, CMDs and Executives to be made
accountable for creation of NPAs.
Tax on Long term capital gains to be introduced; so also higher taxes on the security transactions to be levied.
The rate of wealth tax, corporate tax, gift tax etc. to be expanded and enhanced.
ITES, outsourcing sector, Educational Institutions
and Health Services etc. run on commercial basis should be brought under
Service Tax net. Govt.
Small saving instruments under postal and other agencies be encouraged by incentivizing commission agents of these scheme
OUR SERIOUS CONCERN:
We would like to express our strong resentment that
the previous Govt. failed to positively respond to the collective voice
of the Central Trade Unions on the very important issues concerning the
working people of India, both organized and unorganized, consistently
repeated in the form of a ‘10 point charter’ backed by several
collective nationwide programmes. We expect that this Govt. will take
initiative to discuss these issues with the Central Trade Unions in
order to find a solution.
We also express our opposition to the so called
Banking Reforms encouraging private sector/capitalists banking at the
cost of public sector banks which saved the economy to an extent during
the last global financial meltdown. We also oppose increase in limit of
FDI and disinvestment of equity in insurance sector and FDI in pension.
We strongly oppose the FDI in Defence and Retail Sector. Several such
measures against the working men and women in this country including
anti workers proposals contained in the New Manufacturing Policy have
our strong opposition, as in our experience these kinds of measures have
helped the growth of only a small section of the capitalists while the
larger sections of the working population continue to be marginalized
and impoverished.
We also oppose the hectic measures of changing
labour laws in the name of labour reform both by the central and the
state governments which are basically aimed at legitimizing ongoing
widespread violations by the employers’ class and also throw out
overwhelming majority of the workforce of the purview of the labour laws
themselves at the total mercy of the employers.
POST BUDGET MEETING WITH TRADE UNIONS
Successive Finance Ministers have agreed to hold
post budget meetings / consultations with the central trade unions.
However, it has not been materialized except for one occasion. We
understand such meetings did take place with the Corporate
Associations/Employers Federations. We would like to importunate upon
you to arrange such post budget meeting with trade unions also.
