7CPC News : Constituting 7th Central Pay Commission is the need of the hour – Union Minister Shri. Ajay Makan

Recently Central Trade Unions of Central Government employees conducted a Nation wide Two day Strike to settle their many demands.Though there were many demands including control the price rise of essential commodities and scrapping new pension scheme etc. But the main demand was Constituting seventh pay commission for central government employees , since the Dearness Allowance  now paid at the rate of 72 %  is heading to 100% level near future. In a move aimed at putting the demand for the 7th Pay Commission on the government’s drawing board, Union minister Ajay Maken has asked Prime Minister Manmohan Singh to set it up this year to neutralize the effect of soaring inflation.

His demand this week is the first voice in support of the panel from within Singh’s cabinet.

The content of Union minister Shri  Ajay Maken,s letter is given below

March14 2013

It is with a sense of pride that I seek to underline that about 3.2 million Central Government Employee and an equal number of pensioners inducting service personnel, hold you in high esteem and think of you as one amongst them. They look up to you as a leader who would not only empathize with their concerns but ensure deliverance as well. It was you who had constituted the Sixth Central Pay Commission (CPC) in 2005 which should have been set up in 2003 by the NDA Government.

2) Central Government Employee who are inducted in Government through a process of rigorous screening and testing as also stringent evaluation of a job performance are supposed to be the brightest. With golabalisation and multi-national corporation coming into the country, we have at hand a two fold challenge;

(a) do have a personnel pool with high acumen to deal with these MNCs,

(b) simultaneously a dress the challenge of high attrition on which in itself is a result of MNCs having come in. In order to attract as also retain the brightest minds in Government employrnenL it is but necessary that Central Pay Commission are set up regularly to look into and evaluate their pay structures and submit recommendations.

3) Ever since the selling up of the second Central Pay Commission all pay commissions have been set up In the 3 year of every decade baring the one tine when the NDA Government did not do so in the year 2003. The pay commissions are then required to submit their recommendations I reports in three years time. However, you had set up the sixth pay commission in 2005 and submitted its report in an year and hair, mud’ to the relief and succor of Govrrnent employees. We are again ‘ the ttrd year of the on-going decade and Central Gcverr.ment Employees are justifiabiy kokiig forward to the Seventh Pay Commission that would look into their needs.

The present wage structure of the Central Govt. Employees has been made on the basis of the Sixth Central Pay Commission’s recommendations, which were implemented with effect from 1.1.2006 in the case of Pay and in the case of allowances with effect from 1.9.2008. The erosion of real wages owing to the degree of inflation in the economy is hurting these employees very badly. The retail prices of those commodities, which go into the making of minimum wage, have risen by about 160% between 1.1.2006 to 1.1.2011, in comparison to D.A. compensation which on that date had been just 51%. II is also an acknowledged fact that the 6th CPC had computed the minimum wage by suppressing the retail price of these commodities In the market on the specious plea that official statistics of the retail prices of these commodities were not available. They therefore, computed the retail price by increasing the wholesale price by 20% for each of the commodity whereas the actual retail price in the market was 60% more than the wholesale price.

4) Broadly, one’s-emoluments should be adequate enough to commensurate with boundless and limitless assignments and to his duties and responsibilities in a better, effective and honest manner. The same has also to place, an employee to be in a position to fulfil his social and family obligations, such as education of children, their marriage, maintenance of a reasonable living standard for himself and his family members expected of Government servants and also to take care of his post retirement life.

5) The basis of fixing wages in the past was largely a consumer need related, which was considered at a bare minimum like the minimum nutritional level, minimum clothing, housing etc. But today life is more complex and living standards are not based on simple living and the same cannot be restricted to only for the working class. The producer of wealth being the consumer oriented also requires consumers, including the Central Government employees.

6) These employees are also placed in a disadvantageous situation vis-a-vis their counterparts in Central Public Sector undertakings in whose case, the wage revisions normally takes place after every five years through Collective bargaining. The wage revision of the Central Government employees if not after five years it must be after every ten years and the Government needs to consider setting up of the Seventh Central Pay Commission immediately. While conceding the fact that the Central Pay commission is formed only in every 10 years, howeer. with the coming  of the year 2011, prices of most of the products needed in day to day life is increasing.

In brief the following decision need to be taken on Priority so that a positive message goes among serving Central Government Employees Pensioners and Service and Para Military Personnel’s, the decision will also have bearing upon State Governments Employees:
A notification for constitution of 7th Central Pay Commission is the need of the hour, which is bound to have bearing upon about 20 million employees, which are opinion makers. Therefore the issues may please be considered by the concerned Ministries on Priority and appropriate decision is taken.
Sir, I will be extremely obliged if the above submission is considered favourably in larger interest of government employees as well as the party.

source : The Hindustan Times.com

Union Minister Shri Ajay Makan Letter