Wednesday, April 8, 2009

BSNL Wage Revision Latest information by ashok Hindocha(M-9426201999)

Kindly go thro the following DPE Guidelines.. You can view and take them as some useful inputs. After MAY 2008 the question of mandatory 10 years periodicity has gone. The only mandatory guideline is not below 5 years. There is no such guideline to link periodicity with fitment. BSNL cannot run the show on its own whims and fancies. The question of 10% or 20% lower fitment comes for those PSE’s which are not able to adopt Revised Pay scales 2007.
In our case BSNL has already adopted the Revised Pay Scales. Neither the DPE OM dt 26-11-08 nor the Presidential Notification issued by DOT for BSNL Executives Pay Revision (dt 27-2-2009) mention about 10 years or any years- No mention of any periodicity. The inference is that it is not below 5 years- that is all. There is no categorical mentioning of any ceiling like ‘Executive’s Settlement’. Bilateral negotiations have no meaning unless the staff side has its own discussion space.
NCWA 8th (Coal wage Agreement) MOU is for 24% minimum guaranteed benefit on total emoluments with 100% neutralization- for 5 years w.e.f 1-7-2006. They are getting the benefit of 24% after their 7th NCWA from July2001 to June 2006 5 years not like our 10 years since 1997. In the last 10 years they revised their pay scales twice and so only 24%.
To keep relativity intact, in BSNL we should get at least 50% Fitment. Regarding Advance or IR no PSUs that sanctioned Advance linked the same with Fitment. It is the BSNL that shows its ugly face and unfortunately BSNLEU short of full bargaining strength is failing to clinch the issue. Unless the workers compel, things will not pass in our favour.
R.Pattabiraman CS NFTE TN 5-4-09
Relevant Guidelines of DPE
Policy for the 7th Round of Wage Negotiations for unionized workers in Central Public Sector Enterprises w.e.f. 1.1.2007.
The undersigned is directed to convey the decision of the Government that the next round of wage negotiations (which falls due on a general basis from 1.1.2007) with the workers of Central Public Sector Enterprises (CPSE) may be undertaken by the Managements of the Enterprises with the Trade Unions/Associations.
2. The wage negotiation and finalization will be subject to the following conditions:-
(iv) The validity period of wage settlement would be for ten years with 100% DA neutralization w.e.f. 1.1.2007. The revision shall be subject to the condition that there shall be no increase in labour cost per physical unit of output. There may be rare exceptions, where units would already be working at optimum capacity considering industry-wide norms. In such cases the administrative Department may consult this Department.
(DPE OM No.2(7)/2006-DPE(WC) –GL-XIV dated 9th November, 2006)
Policy for the 7th Round of Wage Negotiations for Unionized Workmen in Central Public Sector Enterprises (CPSEs) – periodicity of Wage Settlement.
The undersigned is directed to refer O.M. of even number dated 9.11.2006 regarding policy for 7th Round of Wage Negotiations for Unionised Workers in CPSEs w.e.f. 1.1.2007. Para 9(iv) of the O.M. dated 9.11.2006 provides for validity period of wage settlement from 10 years with 100% DA neutralization w.e.f. 1.1.2007. Considering the demands of various Unions/ Associations of CPSEs, the Government has decided that the validity of Wage Settlement can be for a period less than 10 years but not less than 5 years. The other provisions of the guidelines given in the above mentioned O.M. dated 9.11.2006 will continue. The Administrative Ministries/ Departments concerned with the CPSEs may take a decision on a case by case basis for the periodicity of Wage Settlement below 10 years but not less than 5 years, with the approval of their Minister.
2. This issues with the approval of Minister for Heavy Industries & Public Enterprises (DPE OM No. 2(7)/06-DPE (WC) – GL VI dated 1st May 2008)

Policy for the 7th Round of Wage Negotiations for Unionized Workmen in Central Public Sector Enterprises (CPSEs) – periodicity of Wage Settlement.
The undersigned is directed to refer O.M. of even number dated 9.11.2006 regarding policy for 7th Round of Wage Negotiations for Unionised Workers in CPSEs w.e.f. 1.1.2007. Para 9(iv) of the O.M. dated 9.11.2006 provides for validity period of wage settlement from 10 years with 100% DA neutralization w.e.f. 1.1.2007. Considering the demands of various Unions/ Associations of CPSEs, the Government has decided that the validity of Wage Settlement can be for a period less than 10 years but not less than 5 years. The other provisions of the guidelines given in the above mentioned O.M. dated 9.11.2006 will continue. The Administrative Ministries/ Departments concerned with the CPSEs may take a decision on a case by case basis for the periodicity of Wage Settlement below 10 years but not less than 5 years, with the approval of their Minister.
2. This issues with the approval of Minister for Heavy Industries & Public Enterprises (DPE OM No. 2(7)/06-DPE (WC) – GL VI dated 1st May 2008)

Wage negotiations for workers in Central Public Sector Enterprises in respect of those CPSEs, which have opted for five year wage negotiation w.e.f 1.1.97.
2. It has been decided by the Government that the wage negotiation for workers of such Central Public Sector Enterprises, who had opted for five year wage negotiation during the sixth round will be entitled for another five year wage negotiation. The wage negotiation may be commenced by the managements of the enterprises subject to the following conditions:-
vi. The workers drawing basic pay upto Rs.6550/- per month shall be entitled for neutralization of DA at 100% of basic pay and those drawing basic pay beyond Rs.6550/- per month shall be entitled for 75% neutralization of DA. The amount of DA drawn upto the basic pay of Rs.6550/- would be protected in the subsequent stages of basic pay in case the amount of DA calculated on the basis of 75% neutralization is less than what was drawn at the basic pay of Rs.6550/-.
vii. The validity period of wage settlement would be for five years w.e.f 1.1.2002. The workers of the Central PSEs who have opted for five-year periodicity of wage negotiation w.e.f 1.1.97 will necessarily go in for negotiation for another 5 year periodicity (from 1.1.2002 to 31.12.2006) and not for 10 years.
(DPE O.M. No.2/11/96-DPE (WC)-GL-I dated 11th February, 2004)

Board level posts and below Board level posts including non-unionised supervisors in Public Enterprises – Revision of scales of pay w.e.f. 1.1.1997.
The last revision of scale of pay of non-unionised supervisors, below Board level executives and executives holding Board level posts in Central Public Sector Undertakings was made effective from 1.1.1992 for a period of five years. As the next pay revision fell due from 1.1.1997, the Government had set up a high level Committee under the Chairmanship of Justice S. Mohan, Retd. Supreme Court Judge, to recommend revision of pay and allowances for these executives following IDA pay scales. Based on the recommendations of the Committee, the Government have decided that the scale of pay attached to these Board level posts and below Board level posts would stand revised w.e.f. 1.1.1997 as indicated in Annexure-I.
5. 100 per cent DA neutralisation may be adopted for all employees covered by the Committee’s recommendations who are on IDA scales of pay with effect from 1 January, 1997. The periodicity of adjustment should be once in three months, as per existing practice for these categories.
8. The next pay revision would be after 10 years.
(DPE O.M. No. 2(49)/98-DPE(WC) dated 25th June, 1999)

Policy for the Sixth Round for Wage Negotiations in Public Sector Enterprises.
The undersigned is directed to convey the decision of the Government that the next round of wage negotiations (Which fell due on a general basis from 1.1.97) with the workers of Central Public Sector Enterprises may be commenced by the Managements of the Enterprises with the Trade Unions/Associations, subject to the following conditions:-
3. The Justice Mohan Committee, which has already submitted its recommendations regarding pay package and perquisites for officers and non-unionised supervisors, have recommended pay revision in every 10 years instead of 5 years that has been in practice. In the event of Government accepting the recommendations of the Justice Mohan Committee in this regard, the revision of wages for the workers should also be effected once in every 10 years, in order to ensure uniformity. This aspect may also be kept in view. (DPE OM No. 2(11)/96-DPE(WC) dated 14th January, 1999)



DPE OM 26th NOV 2008
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DPE OM dated April 2 2009 correcting 9.4% factor

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