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Wednesday, 29 June 2016

NFIR Press Note : Expressed serious disappointment over the Government’s decision on 7th Pay Commission minimum wage

NFIR Press Note : Expressed serious disappointment over the Government’s decision on 7th Pay Commission minimum wage

The National Federation of Indian Railwaymen (NFIR)’s General Secretary expressed serious disappointment and unhappiness over the Government’s decision on minimum wage. Although there is justification of upward revision of minimum wage, the Government has not done justice to the employees. Similarly, the multiplier factor has not adequately been revised, Dr. Raghavaiah General Secretary NFIR said.

Dr. Raghavaiah further said that as already decided by the NJCA, Railway employees will go on strike from 6:00 AM of 11th July 2016.

Source : NFIR
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NFIR : 7th CPC Recommendation totally disappointing

NFIR : 7th CPC Recommendation totally disappointing.

NFIR
NATIONAL FEDERATION OF INDIAN RAILWAYMEN
3,Chelmsford Road, New Delhi – 110 055
Affiliated to:
Indian National Trade Union Congress (INTUC)
International Transport Workers Federation (ITF)

No.IV/NJCA(N)/2014/Part II
Dated: 29-06-2016
The General Secretaries of
Affiliated Unions of NFIR

Brother,

Sub: 7th CPC Recommendations – reg.

Cabinet’s decision on minimum wage is totally disappointing as no improvement has been made. Equally in multiplier factor, there is no improvement.

As already decided, the JCM constituent organizations will be compelled to go on strike.

NJCA will meet very soon (either today or tomorrow) to take stock of the situation and issue directions.
Yours fraternally,
sd/-
(Dr.M.Raghavaiah)
General Secretary
Source: NFIR
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Unhappy with 7th Pay Commission hike, government employees to go on strike on July 11

Unhappy with 7th Pay Commission hike, government employees to go on strike on July 11

Govt Employees Strike

The 7th Pay Commission report that received a nod from the Cabinet chaired by Prime Minister Narendra Modi, will levy a pay hike of 23.55%.
Nearly 32 lakh central government employees have announced they will be going on a strike starting July 11, protesting against the 23.55% salary hike approved by the Cabinet on Wednesday, Zee Business channel news frash indicated.

Earlier in the day the Cabinet approved the recommendations put forth by the 7th Pay Commission panel, which will impact the salaries of one crore government employees.

Under the final approval, the basic salary of government employees will be hiked by 15% and the overall 7th Pay Commission pay hike stands at 23.55%. The central government employees, unhappy with the rate of pay hike had warned earlier that they will stage a strike on July 11, demanding a pay rise of atleast 30%.

At current levels, the salary hike is the lowest in 70 years, but a senior government official stated tight fiscal situation as the reason, stating that a provision to increase it to 18-20% was still open.

On July 4, M Krishnan, Secretary General of the Confederation of Central Government Employees and Workers issued a notice to the employees who are member and affiliated organisations regarding the pursuance of an indefinite strike from July 11 2016.

Krishnan had earlier said that if the government adopts delayed tactics or issue unilateral orders rejecting our demands, then confrontation shall become inevitable.

The Confederation of Central Government Employees & Workers on June 27, also put up a notice calling for an indefinite strike from July 11 and demonstrations and rallies in front of all important government offices and centres from July 4 to July 10.

Source: dnaindia
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Cabinet approves 7th Pay Commission recommendations

LIVE Update : Cabinet approves 7th Pay Commission recommendations:


The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years.

The Union Cabinet on Wednesday approved the recommendations made by the 7th pay commission, news agency ANI reported.

The details of the approval, which will be made public soon, is likely to see a higher increase in the basic pay than the nearly 15 per cent recommended by the 7th Pay Commission for over 1 crore government employees and pensioners.

The pay panel had in November last year recommended 14.27 per cent hike in basic pay at junior levels, the lowest in 70 years. The previous 6th Pay Commission had recommended a 20 per cent hike which the government doubled while implementing it in 2008.

After considering the increase proposed in allowances, the hike in remunerations comes to 23.55 per cent.

The 7th Pay Commission report will be effective from January 1, he said, adding that the Cabinet will decide if the arrears for the six months have to be paid in one go or in installments.

Source: 7cpc.in
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Exclusive: Union Cabinet granted Seventh Pay commission recommendations

Exclusive: Union Cabinet granted Seventh Pay commission recommendations

modi-jaitley-7th-CPC

The Cabinet has cleared all recommendations made by the Seventh Pay Commission report that will result in about 23.55 percent overall increase in salaries, allowances and pension for more than 1 crore government staff and pensioners. The move is expected to give a big boost to the economy as consumption demand in urban areas is likely rise owing to the rising income levels.

In January, the government had set up a high-powered panel headed by Cabinet Secretary PK Sinha to process the recommendations of the 7th Pay Commission which will have a bearing on the remuneration of nearly 50 lakh central government

The Sinha committee has submitted its report on the recommendations, a PTI report said.

Here's a quick look at the recommendations and the likely implications for the economy:

The recommendations

The Pay Commission recommended 23.55 percent overall increase in salaries, allowances and pension. This is estimated to put an additional burden of Rs 1.02 lakh crore, or nearly 0.7 percent of the GDP, on the government.

The panel recommended a 14.27 percent increase in basic pay, the lowest in 70 years. (The 6th Pay Commission recommended 20 percent hike. This was doubled while implementing it in 2008.)

The minimum pay in government is recommended to be set at Rs 18,000 per month. This is more than double the present Rs 7,000.

The maximum pay is set at Rs 2,25,000 per month for apex scale and Rs 2,50,000 per month for cabinet secretary and others at the same pay level (as against the current Rs 90,000 per month).

In order to bring in greater transparency, the report has recommended replacing the present system of pay bands and grade pay with a new pay matrix.

Of the total financial impact of Rs 1,02,100 crore, the increase in pay would be Rs 39,100 crore, increase in allowances Rs 29,300 crore and increase in pension Rs 33,700 crore.

Also, Rs 73,650 crore of the outgo will be borne by the general budget and Rs 28,450 crore by the Railway Budget.

Implications for economy

The Pay Commission recommendations, once implemented, are expected to boost the consumption demand, and in turn growth.

As R Jagannathan argued in this article, the recommendations could turn out to be an opportunity for prime minister Narendra Modi as the "dash of additional expenditure may be just the prod required for restarting the virtuous cycle of consumption, investment, growth, profits and all the related paraphernalia".

However, there are other issues. It is going to increase the general expenditure of the government. When these recommendations were made, inflation was moderate. But the actual implementation of these recommendations is coming at a time when inflation is rearing its head again. So, there are chances that a spike in demand supported by higher pay to the government staff may just push the inflation further up.

It also has to be remembered that crude oil prices that were benign a while back are not so now. The prices for crude are seen around $50 dollar a barrel now and a further increase cannot be ruled out. However, the only thing that may come to the rescue is a Brexit-induced global demand slowdown that will keep the commodity prices, including that of crude, under check.

The Reserve Bank of India, in its last policy statement, had raised these concerns while saying the surprise rise in April inflation has rendered uncertainty its future trajectory.

"...There are upside risks – firming international commodity prices, particularly of crude oil; the implementation of the 7th Central Pay Commission awards which will have to be factored into projections as soon as clarity on implementation emerges; the upturn in inflation expectations of households and of corporates; and the stickiness in inflation excluding food and fuel," it said.

Above all, a PTI report said citing sources that the secretaries’ panel may have recommended higher pay increase, with minimum entry level pay at Rs 23,500 a month and maximum salary of Rs 3.25 lakh.

If the government approves this, the outgo will increase further and so will the burden on government expenditure. It will also have serious repercussions on fiscal deficit of the government which has been set at 3.5 percent of GDP.

Past experience


However, Richa Gupta, senior economist, Deloitte India, thinks the net impact of the implementation of the recommendation is going to be positive on the economy.

"Overall, there are three aspects: once implemented the recommendations will result in an increase in urban demand; this may in turn lead to higher inflation and put a burden on the government spending. But past experiences tell us that the net impact of pay commission implementation has always been positive," she said.

Also, it is to be noted that the global economy may continue in a rough patch due to Brexit. In such a scenario, the only factor that could help India is the domestic demand and a 23.55 percent compensation hike for government staff will only help, Gupta added.

Source: firstpost.com
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