Tripura Pay Hike : waiting for Election Commission clearance

The Left Front in Tripura confronts a major problem related to implementation of pay hikes to the 1.5 lakh employees of state government, PSUs and autonomous bodies before Lok Sabha elections.

The rules of pay prepared by the state government for the pay hikes was sent to the Election Commission in Delhi on March 30 by the state election department for clearance but the matter is still pending.

The Opposition Congress, however, has already made it a major issue in its election campaign. It is blaming the “lackadaisical” administration for the delay in implementing the hiked pay proposals.

Official sources said without the commission’s clearance increased salaries and allowance could not be paid to the employees.

“We are waiting for the commission’s clearance and we hope it will come early because it has already cleared the hike in pay and allowances for central PSU employees and those of West Bengal government employees,” a source in the state secretariat said.

Summary of BSNL Wage Negotiation Meeting held on 01.04.2009

In the emergent wage negotiation committee meeting held on 2.04.2009, the management side proposed fitment benefit on par with executives (30% on pay + 68.8% DA on 01.01.2007) for 10 year wage agreement, and proposed 10% fitment benefit for 5 year agreement. Union demanded and argued strongly for 5 year agreement with fitment benefit on par with executives. The union demanded interim relief at the rate of 50% of pay or Rs.3000/- per month, whichever is more, w.e.f. 01.01.2007. Management side said, interim relief can be decided on the basis of decision on fitment formula. Next meeting will be held on 08.04.2009.

View the confidential minutes of the meeting.

PSU Executive Pay Hike : Some Details.

The recommended hike ranges between 57 per cent and 379 per cent.

Over 210,000 executives in estimated 240 central public sector undertakings are in for a bonanza with a pay revision committee recommending a massive hike in their annual cost-to-company. The hike ranges between 379 per cent at the highest level and 57 per cent at the lowest across companies and levels.

This is assuming the maximum possible payout an executive can get. The award, if accepted, would mean that government servants, particularly defence personnel, would be paid far less in comparison even if one takes into account the recent hike recommended by the Sixth Pay Commission.

The second PSU pay revision committee, headed by former Supreme Court Justice M Jagannadha Rao, submitted its recommendations today to Minister of Heavy Industries and Public Enterprises Sontosh Mohan Dev.

"We are giving more authority to the companies. They can earn more profit and can share it with their employees," he said. The report has been sent to the Prime Minister's Office and the finance ministry. After it is examined, a final proposal will be put up for Cabinet approval. The process could take three-six months.

Shorn of variable components like risk pay and performance-related pay, the effective pay hike works out to between 25 per cent and 40 per cent, according to SM Dewan, director general, Standing Conference of Public Enterprises. "This is a paradigm shift in the government's thinking on running a business enterprise. It does not put us on a par with private sector companies, but it is a very good beginning," he added.   PSU GRAVY TRAIN No of CPSUs CMD Directors E5 E0 E/P E/P E/P E/P CategoryA+ 11 10.89/52.20 (379.33%) 10.35/36.96 (257.10%) 6.96/15.92 (122.98%) 3.8/7.66 (101.57%) Category A 45 10.89/41.76 (283.47%) 10.35/34.21 (230.53%) 6.96/12.69 (82.32%) 3.80/6.23 (63.94%) Category B 51 10.35/38.7 (273.91%) 9.13/29.28 (220.70%) 6.96/13/48 (93.67%) 3.8/6.97 (83.42%) Category C 52 9.13/29.28 (220.70%) 8.36/21.42 (156.22%) 6.96/12.79 (83.76%) 3.8/6.35 (67.10%) Category D 57 8.36/24.96 (198.56%) 8/19.56 (44.50%) 6.96/12.18 (75%) 3.8/5.98 (57.36%) Figures in Rs lakh/ annum are the total cost-to-company, inclusive of basic, risk pay, all perks and performance related pay.These amounts are the maximum payable. Figures in bracket are the % increase over existing annual CTC    E0: Entry level; E5: Mid level; E/P: Existing/Proposed The revised salary structure is proposed to come into effect from January 1, 2007.  The proposed pay structure seeks to reduce the disparity between public sector executives and their private sector counterparts and introduce a performance-based compensation culture.

In another far-reaching recommendation, the award calls for complete delinking of public sector and government pay scales. PSU employees are proposed to get much more than government officials.

For instance, the chairman and managing director of a company like ONGC, NTPC or Bharat Sanchar Nigam Ltd is proposed to be paid Rs 52.20 lakh a year, much more than the annual compensation of Rs 15 lakh (inclusive of all allowances and perks) that a secretary in the central government will get if the Sixth Pay Commission award is implemented in toto. On a strictly fixed-pay basis, a public sector chairman and director will get Rs 1.25 lakh a month in category A and Rs 65,000 a month in category D companies. In comparison, a government secretary will be paid a fixed Rs 80,000, while the cabinet secretary will be paid Rs 90,000 a month.

The report also recommends that central PSUs be categorised into five (A +, A, B, C, D) based on turnover, manpower and geographical spread.

"We want total delinking of PSUs from the government as we want them to become profitable and strong," said Board for Reconstruction of Public Sector Enterprises Chairman Nitish Sengupta, who was a member of the committee.

The pay will be split into two components, basic pay and risk pay, with the latter depending on categorisation, profitability and the executive's grade. Loss-making firms will not be required to shell out risk pay.

Pay panel's other recommendations

Employee stock options, linked to performance pay Performance-related payout amounting to 40-200 per cent of basic pay Risk pay of Rs 1,100 to Rs 25,000 per month New pay scale of Rs 65,000 - 75,000 of E-10 in A+ companies Sick companies to be allowed pay revision (without risk pay or variable pay) if they make cash profit Central PSUs not making cash profits to be examined by the Board for Reconstruction of Public Sector Enterprises CMDs and directors of sick central PSUs which have seen a turnaround will retire at 60 No upper limit on gratuity Separate fund for post-retirement medical treatment and to meet emergency needs of those who have retired Revision of pay for non-unionised supervisors to be decided by board of directors Retirement benefit of 30 per cent of basic pay, which includes CPF, pension, gratuity and post-retirement medical benefits Source : Business Standard.  Report of 2nd Pay Revision Committee For Executives of CPSEs Latest Office Memorandum on PSU executive pay hike.

BSNL Wage Negotiation : Update as on 01.04.2009

The third meeting of the Wage Revision Committee meeting was held today, 1^st April, 2009 under the Chairmanship of Shri R.K. Batra, PGM(IR), BSNL.

After much discussion, the official side agreed for wage agreement for 5 years periodicity the details of which will be discussed later.

With regard to the demand of the Staff Side for Interim Relief either 50% of the pay or Rs.3000/- whichever is more, the official side agreed to recommend to the management for grant of Interim Relief, the details of which will be worked out.

The Staff Side demanded early decision on HRA at CGE rates viz 30%, 20%, 10%. This will be further discussed.

Coms. V.A.N. Namboodiri, P. Abhimanyu, P. Ashoka Babu, K.R. Yadav and G. Mathpati attended from BSNLEU.

The next meeting of the committee will be held on 8^th April, 2009.

 Source : BSNL Employees Union.

IITs seek raise for researchers

The Indian Institutes of Technology have asked the government to hike remuneration for post-doctoral research fellows to over twice the amount offered at present, to catapult the IITs into the league of top research hubs.

India’s premier engineering schools, best known for their undergraduate education, have proposed research remuneration that will be higher than the salaries of most IIT teachers, top government officials revealed.

The proposed hike, top IIT administrators said, is the outcome of a fear that the institutes may be left behind in an expected rush by Indian research institutions to grab the best brains available.

Those who have PhDs — not just in India, but across the world — generally enjoy three employment opportunities immediately after completing their doctorates — teaching, post-doctoral research, and research for industry.

In India, teaching has traditionally been the most favoured option. Research for industry has picked up as a career option in recent years.

“Post-doctoral fellows are the ideal fuel for good research. They are young, enthusiastic, and in many cases more aware of the latest progress in their field than those who have been teaching for decades,” an IIT director said.

The unprecedented hike in fellowship amount for researchers who have just completed their PhDs, has been proposed by IIT Delhi to the human resource development (HRD) ministry on behalf of all the IITs.

The proposal is to be discussed on 1st April,2009 at the IIT Delhi board of governors meeting, where a ministry representative will be present.

The IIT post-doctoral research fellowships at present offer a monthly stipend of Rs 15,000 — this amount was fixed in 2006.

IIT Delhi has proposed raising the fellowship amount to Rs 35,000 per month in the first year of research, and an annual increase capped at Rs 40,000 — irrespective of the length of the research.

Apart from the monthly stipend, fellows can avail of house rent allowance of Rs 10,000 per month at present.

The hike proposal suggests that the HRA start in the first year at Rs 10,000, but be increased up to Rs 15,000 subsequently.

Each IIT offers 25 post-doctoral fellowships every year.

The proposed fellowship amount is higher than the current salary of even the senior most faculty member at the IITs. Faculty members do however earn beyond their salaries by offering consultancy services to private firms.

Once the government enforces planned salary hikes recommended by a committee under former Indian Institute of Science director Goverdhan Mehta, professors will earn more than the amount proposed for post-doctoral fellows.

But assistant and associate professors — the two faculty positions below the rank of a professor at the IITs — may continue to receive lower pay than the proposed compensation for the fellows, government sources said.

Prime Minister Manmohan Singh, on at least two occasions, has expressed “concern” over the inability of the IITs to produce research recognised internationally on a par with China and other East Asian countries.

Most research at the IITs at present is conducted by regular faculty members in time squeezed out between classes and personal commitments.

Source : The Telegraph