CIRCULAR No .23
Circular No. 23/2013-16 Dated – 02.04.2015
Dear Comrade,
We invite your kind attention to the synopsis of the discussions the staff side had with the 7th CPC on 23rd and 24th March, 2015. You will notice there from that the discussions were cordial and the staff side had been able to present their case admirably well. You must have also noticed that the 7thCPC has categorically stated that they would go by Dr. Aykhrod formula in arriving at the minimum wage. However, they were a little skeptical of the rates quoted by us. As you are aware we have taken the rates from the information we have collected through our units in the 8 Metro Cities. Since this is likely to be the bane of contention at the time of finalization of the report, we must be able to establish that the rates other than the one we had submitted is not acceptable to us being bereft of the benefit of retail prices ruling at the relevant point of time. In order to bolster our argument, we would like our leaders especially in the following cities and in other places to purchase the following articles from a reputed Mall as also from a normal provision store with bills duly signed by the owners of the retail outlet and send over to the Confederation CHQ immediately. The bill should bear the signature, the rate per kg. and the signature or seal of the concerned establishment. Please treat this as most urgent and a task of serious nature for the rates adopted by the 7th CPC will have far reaching consequences if not contested at the appropriate time.
With greetings,
Yours fraternally,
Sd/-
(M. Krishnan)
Secretary General.
Rice/Wheat: Different qualities: Rate per kg. (Purchase the highest, lowest and middle rate quality items)
Dal: Toor, Moong, urid: May be different qualities are available. Purchase three qualities. The highest, lowest and the middle of each item. (Rate per kg.)
Raw vegetable: Mention the names of each item: rates must be per kg. Mention the names in Hindi and English.
Green Vegetable: Mention the names of each item : (rates per kg.) Please mention the Hindi and English names.
Other vegetables: per kg. rate: same as above. Mention the names in Hindi and English.
Fruits: Purchase variety of fruits: with names in Hindi and English: Different qualities: Quote rates per kg. (We shall take the average price at the end).
Milk: Purchase both from the Government owned outlets like Mother diary etc. as also from the private vendors. Quote the price per kg.
Sugar/Jaggery: Varied qualities may be available. If that the case purchase the highest, lowest and middle quality: Rate per kg.
Edible Oil: (Please prefer the sunflower oil). All other oils can also be purchased and bills obtained. Rate per kg.
Fish and Meat: (Fish = different varieties are available. Purchase the best, lowest and the middle level: Same for the meat also. In any case cased, goat meat to be the basis)
Detergents: There are different qualities: Purchase the best, the cheapest and the middle quality. Rate per kg.
Eggs; Rate per one:
Clothes: per meter: Purchase only cotton white and coloured clothes; (Quality: Best, Cheapest and middle quality)
Metro Cities taken; Delhi, Mumbai, Kolkata, Chennai, Bangalore, Bhubaneswar, Hyderabad, Trivandrum .
New POSB Account Opening / Purchase of Certificate Application Form for Individuals
14th Finance Commission Directions to 7th CPC
Click Here for 14th Finance Commission report on 7th CPC
Refer page no 240 to 250 of the report
17.24 Technically, the recommendations of a Central Pay Commission are only for Central Government employees and States are not bound to follow suit. Indeed, up to the 1980s, States constituted their own Pay Commissions and prescribed their own pay scales, based upon their fiscal capacity. However, since the Fifth Central Pay Commission, salaries and allowances in States have tended to converge with those in the Union Government and since the Sixth Central Pay Commission, almost all States have adopted the Union pattern of pay scales, albeit with modifications.
17.27 Our concern is the likely impact on overall budgetary resources, particularly of the States, once the recommendations of the Seventh Central Pay Commission are announced and adopted by the Union Government. All States have asked us to provide a cushion for the pay revision likely during our award period. The Union Government's memorandum has built, in its forecast, the implications of a pay increase from 2016-17 onwards. recommendations of the Seventh Central Pay Commission are likely to be made only by August 2015, and unlike the previous Finance Commissions, we would not have the benefit of having any material to base our assessments and projections and to specifically take the impact into account. We have, therefore, adopted the principle of overall sustainability based on past trends, which should realistically capture the overall fiscal needs of the States.
17.28 In our view, on matters that impact the finances of both the Union and States, policies ought to evolve through consultations between the States and the Union. This is especially relevant in the determination of pay and allowances, where a part of the government itself, in the form of the employees, is a stakeholder and influential in policy making. A national view, arrived at through this process, will open avenues for the Union and States to make collective efforts to raise the extra resources required by their commitment to a pay revision. More importantly, it would enable the Union and States to ensure that there is a viable and justifiable relationship between the demands on fiscal resources on account of salaries and contributions to output by employees commensurate with expenditure incurred. In this regard, we reiterate the views of the FC-XI for a consultative mechanism between the Union and States, through a forum such as the Inter-State Council, to evolve a national policy for salaries and emoluments.
17.29 Further,we would like to draw attention to the importance of increasing the productivity of government employees as a part of improving outputs, outcomes and overall quality of services relatable to public expenditures. The Seventh Central Pay Commission, has, inter alia, been tasked with making recommendations on this aspect. Earlier Pay Commissions had also made several recommendations to enhance productivity and improve public administration. Productivity per employee can be raised through the application of technology in public service delivery and in public assets created. Raising the skills of employees through training and capacity building also has a positive impact on productivity. The use of appropriate technology and associated skill development require incentives for employees to raise their individual productivities. A Pay Commission's first task, therefore, would be to identify the right mix of technology and skills for different categories of employees. The next step would be to design suitable financial incentives linked to measurable performance. We recommend the linking of pay with productivity, with a simultaneous focus on technology, skills and incentives. Further, we recommend that Pay Commissions be designated as 'Pay and Productivity Commissions',with a clear mandate to recommend measures to improve 'productivity of an employee', in conjunction with pay revisions. We urge that, in future, additional remuneration be linked to increase in productivity.
Pensions
17.30 Pensions have been growing steadily, and the liability for pension payments is likely to cast a very heavy burden on budgets in the coming years. Some of the factors contributing to this growth are: (i) the rise in pensions recommended by successive Pay Commissions; (ii) removal of the distinction between people retiring at different points of time, so that all pensioners are treated alike in their pension rights; (iii) taking over the liability for pensions of retired employees of aided institutions and local bodies; and (iv) increasing longevity. The New Pension Scheme (NPS), a contribution-based scheme introduced by the Union Government in 2004 for all new recruits after the cut-off date, has now been adopted by all States, with the exception of West Bengal and Tripura. This scheme has the merit of transferring future liabilities to the New Pension Fund and factoring the current liability on a State's contribution from its current revenues. We urge States which have not adopted the New Pension Scheme so far to immediately consider doing so for their new recruits in order to reduce their future burden.
Conclusion: - The recommendations of 14th Finance Commission are important for 7th Pay Commission. As the recommendations of 14th FC is applicable with effect from 01.04.2015 the impact of above mentioned recommendations will be the part of 7th CPC. Need not to say that 7th CPC has the challenge to prepare the report in stipulated time including the views of 14th FC.
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