NEW DELHI: The continuous decline in exports may result in job losses and impact economic growth, exporters bodyFIEO on Saturday said.”Based on the order booking position, exports may significantly decline in volume terms in months to come, which will result in layoffs,” Federation of Indian Exports Organizations (FIEO) president S C Ralhan said in a statement.”If exports continue to move in the negative territory, it will sooner or later put pressure on CAD ( current account deficit) and may derail the rebuilding of economy.” ( Courtesy: The Times Of India. )
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GLOBAL ECONOMY MAY BE SLIPPING INTO 1930S- LIKE DEPRESSION- SAYS RBI GOVERNOR.
LONDON, JUNE 26:
Reserve Bank of India (RBI) Governor Raghuram Rajan has asked central banks from across the world to define “new rules of the game” as he warned that the global economy may be slipping into problems similar to those faced during the Great Depression of the 1930s.
Rajan, who has been warning against competitive monetary policy easing by central banks, however, said the situation is different in India, where the RBI still needs to bring down lending rates to spur investments.
‘Debate central bank action’
“We need rules of the game in order to effect a better solution. I think it is time to start debating what should the global rules be on what is allowed in terms of central bank action,” he said at a London Business School (LBS) conference here last evening
“I am not going to venture a guess as to how we establish the new rules of the game. It has to be an international discussion, an international consensus, built over time after much research and action,” Rajan said.
“But I do worry that we are slowly slipping into the kind of problems that we had in the 1930s in attempts to activate growth. And, I think it’s a problem for the world. It’s not just a problem for the industrial countries or emerging markets; it’s now a broader game,” the RBI Governor noted.
Investment concerns
Asked specifically about interest-rate cuts from an Indian perspective, he said: “I try to shut out market reactions as far as I can. We (India) are still in a situation where we have to spur investment and I am worried more about that.
“So I shut out the asset price (hike) reaction and think more about ‘is this going to bring bank lending rates down’ and, therefore, channel cheaper credit into firms and then they will invest. However, the issue gets much more complicated for other markets,” he said.
The RBI Governor was addressing the ‘Perspectives’ conference organised by AQR Asset Management Institute at the LBS campus on the subject of ‘The Central Banker Perspective’
He highlighted the tremendous pressure for growth which, in turn, creates enormous pressure on central banks to take action.
Rajan stressed that seven years on from the economic crisis, central banks have done a lot.
Shifting growth
“The question is are we now … in trying to produce growth out of nowhere … shifting growth from each other, rather than creating growt
Of course, there is a past history of this during the Great Depression, when we got into competitive devaluation,” he warned
Rajan also highlighted the need for countries to work together on capital flows
“We have to become more aware of the spill-over effects of our actions. And the rules of the game that we have — what is allowed and what is not allowed — need to be revisited,” he said.
( courtesy: BUSINESS LINE. )
BRICS BANK TO START BY APRIL, 2016.
Shri. K. V. Kamath, first President of New Development Bank, also known as BRICS Bank has stated that the functioning of the bank is expected to commence in April, 2016.
NDB, founded by the BRICS nations ( Brazil, Russia, India, China and South Africa ) has now decided to expand its operations to other member nations as well. Shri. K. V. Kamath has also said that the bank would be different from other institutions such as the ‘World Bank and the Asian Development Bank. It would have a different mindset and be a lot more flexible in its operations. An important aspect will be with regard to the speed of lending.
Mr. Kamath stated that the bank would have Vice Presidents from three other nations. Mr. K. V. Kamath, former Chairman of ICICI bank and Infosys, will take over as the head of the multilateral development institution in July, 2015 at Shanghai in China.
AUSTRALIA JOINS ASIAN INFRASTRUCTURE INVESTMENT BANK.
In a significant development, Australia, which had not joined the China led Asian Infrastructure Investment Bank due to pressure from USA, has joined AIIB. Australian government’s decision has come after extensive discussions with China and other key partners globally. Australia will invest about $ 930 million to the financial institution to become the sixth largest share holder while India is the second largest share holder.
Australia will contribute $ 930 million as paid-in capital to the AIIB over five years. AIIB will have paid-in capital of $ 20 billion with total authorized capital of $ 100 billion. According to official statement, there was an estimated infrastructure financing gap of around $ 8 trillion in the Asian region over the current decade.
Though it has been shunned by USA and Japan, the bank has already 57 prospective members.
7th PAY COMMISSION HAS CONCLUDED DISCUSSIONS WITH STAKE HOLDERS.
The following is the message which is published in official website of 7th pay commission….
Further to the memoranda received from a variety of Organisations, Federations, Groups representing civil employees in the Government of India as also from the Defence Services, the Commission has had fruitful and wide ranging discussions on relevant issues with all stakeholders. Such interactions have now been concluded. Valuable inputs have been received and the work of compilation and finalization of the report is underway, so that the Commission completes its task in the time frame given to it. Accordingly, any future requests for meeting with the Commission will not be entertained.
Source: 7cpc.india.gov.in
THE DRACONIAN EMERGENCY COMPLETES 40 YEARS.
The ‘Emergency’ declared by Indira Gandhi government is completing 40 years. It was in the late hours of 25th June 1975, that the ‘National Emergency’ was declared by Prime Minister Indira Gandhi, after her election was nullified by the court.
Democracy was given a burial. Civil rights were denied. Almost all the opposition leaders and activists at all level were arrested and put behind bars. Opposition M.P.s were also jailed. Complete censuring of newspapers was ensured. No news of even a small criticism of government was allowed. Trade unions functions were strictly curtailed. Dearness Allowance was frozen. Extra constitutional forces controlled the government. Compulsory sterilization was forced. It was a period of terror.
Many leaders of Central Govt. Employees, including Posts and Telegraphs were put in jail. I was taken in to custody twice. These arrests and atrocities continued while the emergency was on.
Hoping that the opposition has been demolished and that Congress will be elected with much majority, general elections were declared. Most of the leaders of the opposition contested the elections, while in jail. The Congress party was utterly defeated, even Indira Gandhi being defeated in her own constituency. The newly formed Janatha party came in to power. The hated Emergency was over.
Another such dictatorship and Emergency will not be tolerated by the people of India.
FEEDBACK OF NC JCM MEETING WITH 7th PAY COMMISSION ON 09-06-2015.
National Council (Staff Side)
Joint Consultative Machinery
for Central Government Employees
Shiva Gopal Mishra
Secretary
No.NC/JCM/2015
Dated: June 15, 2015
All Constituent Organisations of National Council(JCM)
Dear Comrades,
As indicated in our last circular letter, the final meeting with the 7th CPC was hled on 9.6.2015. Earlier on 8th afternoon, the Staff side had met separately to chalk out the course of negotiations. The National JCA also met on the same day. The National Anomaly Committee met on 9th June, 2015 at 3.00 pm under the Chairmanship of Joint Secretary (E) Department of Personnel at Room No. 72 North Block, New Delhi. We give hereunder a brief synopsis of the discussions at all the meetings.
1. Meeting with 7thCPC
The following Staff Side members were present at the Meeting:- Com. M. Raghavaiah(Leader Staff Side – NFIR), Com. Shiva Gopal Mishra(Secretary, Staff Side-AIRF), Com. Guman Singh, Com. R.P. Bhatnagar and Com. B.C. Sharma(all from NFIR), Com. Rakhal Dasgupta, Com. J.R. Bhosale (AIRF), Com. KKN Kutty, Com. M.S. Raja and Com. M. Krishnan (from Confederation and NFPE), Com. Srikumar and Com. R.N. Pathak(from AIDEF) Com. Srinivasan and Com. Surjeet Singh( From INDWF).
(a) Date of Effect – The Chairman has made it clear that the Commission would recommend 1.1.2016 as the date of effect of their recommendations. The Commission would finalise its report by end of August and would submit the same to the Government thereafter. They would adopt Dr. Aykroyd formula for the computation of the Minmum wage. To the specific query made by the Staff Side, the Commission said that they would factor the probable increase In the rate of retail prices of the commodities and would arrive at the minimum wage as on 1.1.2016. There had been no reply to the loss of wages to the employees due to the erosion of the real value of wages as there was no interim relief or benefit accrued from the merger of DA. These demands, therefore, stand rejected.
(b) Increase in the insurance coverage in cases of death in harness – The Staff Side recalled the assurance held out by the Commission earlier to have the actuarial assessed by an expert agency to accede to the demand of the staff side to increase the subscription and the insurance coverage. The Staff Side was of the opinion that their suggestion to share the subscription in the ratio of 3:7 was reasonable but in the absence of an expert study, the Government might not accept the same. The commission said that they would explore the possibility of such an assessment by the LIC before finalization of the report.
(c) Fitment Formula – The Commission might accept the suggestion made by the Staff Side in respect of fitment formula with requisite change in the ratio on the basis of the quantum of minimum wage determined.
(d) In the matters of rate of increment, quantum of allowances etc. – The Commission did not come out clearly of their thinking in the matter.
(e) Parity in Pension entitlement of the past and present pensioners – The Commission is yet to make up its mind on the suggestion made by the staff side in the matter. They however said that almost all the Pensioners organizations which met the Commission had pleaded for this and the same is linked with the one rank one pension demand of the Armed forces personnel.
(f) MACP Scheme – The difficulties and anomalies pointed out by the Staff Side and various other organizations have been taken note of by the Commission. The Commission assured to evolve a methodology to resolve the problem.
(g) Opposition to the induction of casual/daily rated workers and contractorisation – The Commission said that they were opposed to the unfair practice of exploitation of labour. For jobs which are of perennial and permanent character, regular workers must be recruited, the Commission added and that would obviate the need for outsourcing and contractorisation. Since most of the outsourced jobs do not require any academic qualification, the Commission was of the opinion that the revival of Group D cadre would help to address the issue. However, the Commission stated that if only the staff side sends in a communication in writing, the Commission would be able to make any recommendation in the matter. The Staff Side reiterated that they are totally opposed to outsourcing, induction of casual workers and contractorisation and the same has been made explicit in their memorandum.
(h) Parity in the pay scales between the personnel in the Central Sectt and those in the subordinate establishments – The Commission stated that they have appreciated the stand taken by the Staff Side in the matter. The Commission was non committal on other issues raised by the Staff Side members.
WAGE NEGOTIATIONS IN BSNL SHOULD START WITHOUT DELAY.
It is time to start the wage negotiation for the employees in BSNL, which is due from 01-01-2017. Last time the negotiations took more than 3 years and orders were issued only in 2010, which was with effect from 01-01-2007.
The VII CPC for Central government Employees was appointed in 2014, whereas the implementation was to be from 01-01-2016 only. In the same way, the wage negotiation for BSNL employees should start two years earlier than the due date.
BSNL Employees Union has already demanded for the same.
COM.V. A. N. NAMBOODIRI ADDRESSES SPECIAL MEETING IN HYDERABAD.
A meeting of the AIBDPA Hyderabad District was held at BSNL Bhawan premises on 23rd June 2015. A good number of Pensioners as well as regular employees were present. Comrades Ramachandrudu, Circle Secretary AIBDPA, J.Sampath Rao, Circle Secretary, BSNLEU, Mohan Reddy, District Secretary and other leaders were present. Com. V.A.N.Namboodiri, Patron BSNLEU and Advisor AIBDPA spoke in detail about the latest developments after the 21-22 April strike and the discussions held with the Secretary DOT and Minister Communications on the 78.2% IDA pension fixation and other issues. He also called upon the employees to fully participate in the strike on 2nd September 2015 called by the Central Trade Unions on the 10 points demands. Com. Namboodiri was felicitated by the AIBDPA.
KERALA CIRCLE EXECUTIVE COMMITTEE MEETING HELD.
The Circle Exective Committee Meeting, AIBDPA, Kerala has been held at K G Bose Bhavan, Ernakulam on 23-06-2015.
Com.K.G.Jayaraj, General Secretary inaugurated the meeting with an elaborate speech covering almost all the issues. Com.R.Aravindakshan Nair, Circle President presided. Com.N.Guruprasad, Circle Secretary welcomed the gathering and presented the brief report .
Com.P.V.Chandrasekharan, CHQ Patron, Coms.Karayi Sreedharan , V.Kesavan, K.Arjunan Circle Patrons addressed. Com.M.P.Kunhanandan,CHQ Treasurer participated.
All the district secretaries and circle office bearers participated in the discussion.
The CEC decided to conduct the two days hunger fast before the CCA Office on 21-22 July successfully.Also decided to associate closely with the Forum in the month long ‘save BSNL’ campaign.
