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A MISERABLE 2 PER CENT – ARTICLE BY SRI. VINODH RAI, FORMER CAG ON 7TH CPC

Former Comtroller and Auditor General, Rai is chairman of Banks Board Bureau.
On 30, headlines across newspapers were on the Union government having approved the Seventh Pay Commission recommendations. The Economic Times headline read, “Central staff hit pay dirt: An early Diwali”. The newspaper said the government had accepted the recommendations doling out ‘hefty’ pay hikes. The salaries were expected to increase in the range of 14 per cent to 23 per cent. The bold fonts also announced that the lowest salary was to increase from Rs 7,000 per month to Rs 18,000. The highest salary, received by the cabinet secretary, was to go up to Rs 2,50,000 from Rs 90,000.
Sounds huge, does it not? But we need to analyse this. What is the bonanza and what are the hefty pay hikes which are speculated to be “fueling inflationary pressures”?
Actually, the salary of Rs 7,000 and Rs 18,000 are not comparable. The equivalent of the Rs 7,000 basic salary, which was fixed 10 years ago and currently applicable with the dearness allowance added on, is Rs 15,750 (Rs 7,000 basic plus 125 per cent DA). In the salary of Rs 18,000 now announced, the DA is subsumed. Thus, a more accurate comparison would be the present salary of Rs 15,750 and the new salary of Rs 18,000. Similarly, the cabinet secretary at present receives Rs 2,02,500. The newspapers also announced that the total outgo as a consequence of the hike was expected to be Rs 1 lakh crore.
The comments on social media are more expressive! They question whether government employees actually deserve higher salaries: “Being paid more for what?”, “More pay for less and less work”, and “Babus don’t deserve a hike.” In fact, it is speculated that these increases will fuel inflation. Another school of thought believes that it will kickstart spending, thus generate demand and hence increased economic activity.
CANDID TALK

Illustration: Bhaskaran

The Pay Commission is announced once in ten years. Thus any increase in basic salary comes about once in ten years. Even if we were to assume that this Pay Commission has brought about a hike of 20 per cent, it would tantamount to a simple rate of 2 per cent per annum. Which employee in the private sector would be content with a 2 per cent per annum hike? A couple of years ago, I was pleasantly surprised to hear of the bonus received by one of the youngsters in the family. I found that his annual bonus alone was more than the sum of the total salary earned by me over my entire career! He could afford at least two vacations abroad for himself and his kids every year, travelling business class. My wife and I have never been on any vacation as yet. At most, every year we visited our parents using up my earned leave or she would accompany me if I travelled on work. For him the weekend is a total break from work—he gets no official calls over the weekend. Mine was a 24×7 job when I could not refuse anyone who called me. Once when my wife reminded the caller that he had called on a holiday, he had the gumption to remind her that official phones were given to government functionaries so that they could be contacted all the time!
There is then the fear that the pay increase will cause financial difficulties to state governments. True, it will. However, prudent financial management requires constant mobilisation of resources. However, considering the fact that we have just about an election every year, to local bodies or state legislatures or the general election, very few governments can take appropriate measures to increase taxes or tap methods to raise resources. If you cannot take harsh decisions to raise resources, why blame government employees who get a paltry increase of 2 per cent per annum?
I acknowledge that government employees are not the most popular guys. To a large extent, we are to blame for this. This perception needs to be addressed and only we can do that with our own endeavors and actions. However, if the general public still continues to grudge the paltry increase, they must realize that if you pay peanuts you get only ……….!

COM.V.A.N.NAMBOODIRI SHARES HIS INTERESTING EXPERINCES.

Through Memory Lane

It was a pleasant evening. After participating in the two classes organised in the study class organised at Malampuzha, Palakkad by BSNLEU Circle Union, Kerala on 8th August and visiting the dam nearby, all the participants met together to hear Com.V.A.N.Namboodiri about the great struggle of the P and T movement and its march ahead. In simple words he narrated his personal  experiences of about six decades in the movement.The participants asked questions and were replied. Com.Muralidharan Nair, former AGS BSNLEU was the Moderator, circle President Com.A.V.Kuriakose presided and Com.K.Mohanan Cidcle Secretary Kerala made the introduction speech. Com..Namboodiri narrated many interesting incidents of the march of the movement.

Com.Namboodiri honoured Com.Mohanan on behalf of BSNLCCWF CHQ for leading the glorious struggle of Kerala CCLU, despite victimisation, transfer, suspension etc. It was a tribute to Kerala workers who organised the struggle.

Many comrades suggested that these experiences should be written and published for the future generation.

CHERTHALA (ALAPPUZHA DISTRICT) AREA CONFERENCE HELD.

Cherthala Area Conference was held successfully on 07-08-2016 under the presidentship of Com.C.P.Sreekumaran Nair. Com.N.Guruprasad, Circle Secretary inaugurated the conference . Com.P.Surendran, District Secretary presented the organisational report and Com. P.K. Ravindran, Area Secretary placed the report on activities.

Office bearers were elected with Com. P.K.Ravindran (President) Com.P.Rajeevan (Area Secretary) and Com. C.P.Sreekumaran Nair (Treasurer)

Saudi Arabia: Thousands of Indian workers are waiting for a plate of food in the mess organized by the Indian Embassy in Jedda

Saudi Arabia: Thousands of Indian workers are waiting for a plate of food in the mess organized by the Indian Embassy in Jeddah

03 Aug 2016
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Thousands of Indian workers are waiting for a plate of food in the mess organized by the Indian Embassy in Jeddah as a result of the dismissals in Saudi Enterprises especially in Construction sector. At present more than 3 million Indian workers are “trapped” in Saudi Arabia unable to cover their basic needs nor buy a ticket to return to their country 800 of them recently fired by “Oger” Construction Company.

In the same time, Saudi Workers which have not been paid for 7 months by the same Company demonstrated on 30th and 31st of July outside the central offices of “oger” in Jeddah. Their demonstration was so massive that all central roads were blocked and the police attacked the workers in struggle.

The World Federation of Trade Unions is watching the situation tightly and calls all the workers in Saudi Arabia regardless their ethnicity to unite their voices with the class oriented trade union movement.

The Secretariat

Corporate Office letter on issues relating to medical facility extended to retired employees

BSNL Corporate office has issued two letters on issues related to medical claims of retired BSNL employees based on our detailed letter to CMD, BSNL and subseuent discussion had with him and Director( HR),BSNL. Though these have not addressed all the issues, we shall continue to pursue with the BSNL management for further improvements. Meanwhile Circle/District Secretaries are requested to approach the concerned authorities for effective implementation of these directives.

<<view letter>>

COM.G.G.PATIL,AGS BEREAVED.

SHRI.B.G.PATIL (86), ELDER BROTHER OF COM.G.G.PATIL, ASSISTANT GENERAL SECRETARY HAS PASSED AWAY AT 0830 ON 7TH AUGUST, 2016 AT HIS RESIDENCE AT NAVANAGAR, HUBLI, KARNATAKA.

CHQ COVEY ITS DEEP CONDOLENCES TO ALL HIS FAMILY MEMBERS.

7th Pay Commission implementation-Committee Formed to Examine the 1st Option for Revision of Pension

 

Government Decision on Options

Both the options recommended by the 7th Central Pay Commission as regards pension revision be accepted subject to feasibility of the implementation.Revision of pension using the second option based on fitment factor of 2.57 be implemented immediately.

The first option may be made applicable if its implementation is found feasible after examination by the Committee comprising Secretary (Pension) as Chairman and Member(Staff). Railway Board, Member (Staff), Department of Posts, Additional Secretary & Financial Adviser, Ministry of Home Affairs and Controller General of Accounts as Members.

Source : http://www.pensionersportal.gov.in/