Central Trade Unions submits Joint Memorandum including DA Merger and 5 Lakh IT Exemption to Finance Minister
CENTRAL TRADE UNIONS SUBMITS JOINT MEMORANDUM TO FINANCE MINISTER
17th January 2015
The Hon’ble Minister of Finance, Govt. of India,
North Block, New Delhi
Dear Sir,
We thank you for inviting the central trade unions representing the
working people in the country in both organized and unorganized sector
for this pre-budget consultation.
In the previous pre-budget consultation meeting with you held on 6th
June 2014, we urged upon you to please consider a directional change in
the economic policy regime from that pursued during the previous
government which, you have also admitted, had landed the country’s
economy in a bad situation. In fact, we had articulated our views and
proposals on that premise. But we like to submit candidly that our
proposals did not receive a positive response and the economic policies
followed the same trajectory and made situation worse for the mass of
the people during the intervening period.
Sir, the Mid Term Economic Analysis (2014-15) by Govt of India itself
admitted that for the period under review despite increase in GDP
growth rate, and a much bigger increase in profit of the corporate
sector and big business lobby, the wages for the working people who
actually create the GDP in both rural and urban areas plunged on the
average. Overall standard of living of people deteriorated and
unemployment situation in the country has not improved in the least.
Much more jobs were lost owing to closure/lockout, retrenchment than
created during the intervening period. And in the midst of such
situation, the Govt has already decided to cut already budgeted
expenditure in the social sector such as MNREGA, Health, Education etc
which we strongly deplore. Such a phenomenon warranted serious
reconsideration on directional change in the economic policy regime and
we again urge you for the same.
We express our serious concern and dismay over the manner the Govt
have been pushing various major economic policy related decisions
through promulgation of Ordinances. At least eight Ordinances were
promulgated during last eight months of the new Govt. We record our
determined opposition to such practice of Ordinance route of governance.
In particular we also oppose the Ordinance on coal sector, insurance
sector and on Land Acquisition Act and want you to please take note of
the rousing opposition and struggles by the workers and the farmers
against such disastrous exercises. We demand all such Ordinances should
be withdrawn forthwith.
We wish that our candid observations, considered views and concrete
proposals are taken in the justify spirit and responded with all
seriousness and given appropriate reflections in the ensuing budget
2014-15.
Our proposals:
Some of these specific proposals have time and again been placed by us
in various policy making fora including the earlier pre-budget
consultations. However, we would like to reiterate them, urging your
positive response:
Take effective measures to arrest the spiraling price rise and to
contain inflation; Ban speculative forward trading in commodities;
Universalise and strengthen the Public Distribution System; Ensure
proper check on hoarding; Rationalise, with a view to reduce the burden
on people, the tax/duty/cess on petroleum products.
There must be massive investment in the infrastructure in order to
stimulate the economy for job creation. The Mid Term Economic
Analysis(2014-15) published by Govt of India has clearly mentioned about
the failure of the PPP experiments in infrastructure development and
opined for public investment. It is our considered view that the Public
sector should take the leading role in this regard. The plan &
non-plan expenditure should be increased in the budget to stimulate jobs
creation and guarantee consistent income to people.
Minimum wage linked to Consumer Price Index must be guaranteed to all
workers, taking into consideration the recommendations of the 15th
Indian Labour Conference as enriched by Apex Court of the country as
reiterated in 44th ILC in 2012. In any case, it should not be less than
Rs.15,000/- p.m.
FDI should not be allowed in crucial sectors like defence production,
telecommunications, Railways, financial sector, retail trade,
education, health and media.
The public sector units played a crucial role during the year of
severe contraction of private capital investment immediately following
the outbreak of global financial crisis. PSUs should be strengthened and
expanded. Disinvestment of shares of profit making public sector units
should be stopped forthwith. Budgetary support should be given for
revival of potentially viable Sick CPSUs In view of huge joblosses and mounting unemployment problem, the ban
on recruitment in Govt. deptts, PSUs and autonomous institutions
(including recent Finance Ministry’s instruction to abolish those posts
not filled for one year) should be lifted as recommended by 43rdSession
of Indian Labour Conference.
Condition of surrender of posts in govt.
departments and PSUs should be scrapped and new posts be created keeping
in view the new work and increased workload.
Proper allocation of funds be made for interim relief of 20% and 100%
DA merge with basic pay and allowances including neutralization
percentage be paid on merged DA in view of 7th CPC to all Govt.
employees. Similarly, 100% DA of PSU employees be also merged with basic
pay.
The scope of MGNREGA be extended to agriculture operations and urban
areas as well and employment for minimum period of 200 days with
guaranteed statutory wage be provided, as unanimously recommended by
43rd Session of Indian Labour Conference. The drastic cut already
inflicted on the MNREGA allocation should be restored.
The massive workforce engaged in ICDS, Mid-day meal scheme, Vidya
volunteers, Guest Teachers, Siksha Mitra, the workers engaged in the
Accredited Social Health Activities (ASHA) and other schemes be
regularized. No to privatization of centrally funded schemes.
Universalisation of ICDS be done as per Supreme Court directions by
making adequate budgetary allocations.
Steps be taken for removal of all restrictive provisions based on
poverty line in respect of eligibility coverage of the schemes under the
Unorganised Workers Social Security Act 2008 and allocation of adequate
resources for the National Fund for Unorganised Workers to provide for
Social Security to all unorganized workers including the contract/casual
and migrant workers in line with the recommendations of Parliamentary
Standing Committee on Labour and also the 43rd Session of Indian Labour
Conference.
Remunerative Prices should be ensured for the agricultural produce
and Govt. investment public investment in agriculture sector must be
substantially augmented as a proportion of GDP and total budgetary
expenditure. It should also be ensured that benefits of the increase
reach the small, marginal and medium cultivators only;
Budgetary provision should be made for providing essential services
including housing, public transport, sanitation, water, schools, crèche
health care etc. to workers in the new emerging industrial areas.
Working women’s hostels should be set up where there is a concentration
of women workers.
Requisite budgetary support for addressing crisis in traditional
sectors like Jute, Textiles, Plantation, Handloom, Carpet and Coir etc.
Budgetary provision for elementary education should be increased,
particularly in the context of the implementation of the ‘justify to
Education’ as this is the most effective tool to combat child labour.
The system of computation of Consumer Price Index should be reviewed
as the present index is causing heavy financial loss to the workers.
Income Tax exemption ceiling for the salaried persons should be raised to Rs.5 lakh per annum
and fringe benefits like housing, medical and educational facilities
and running allowances, Railways Running Staff and a staff in other
deptts should be exempted from the income tax net in totality.
Threshold limit of 20 employees in EPF Scheme be brought down to 10
as recommended by CBT-EPF. Pension benefits under EPS unilaterally
withdrawn by the Govt. should be restored. Govt. and Employers
contribution be increased to allow sustainability of Employees Pension
Scheme and for provision of minimum pension of Rs.3000/- p.m.
New Pension Scheme be withdrawn and newly recruited employees of central and state govts on or after 1.1.2004 be covered under Old Pension Scheme;
Demand for Dearness Allowance merger by Central Govt. and PSUs employees be accepted and adequate allocation of fund for this be made in the budget;
All interests and social security of the domestic workers to be
statutorily protected on the lines of the ILO Convention on domestic
workers.
The Cess Management of the construction workers is the responsibility
of the Finance Ministry under the Act and the several irregularities
found in collection of cess be rectified as well as their proper
utilization must be ensured.
In regard to resource mobilization, we would like to emphasize the following:
A progressive taxation system should be put in place to ensure taxing
the rich and the affluent sections who have the capacity to pay at a
higher degree. The corporate service sector, traders, wholesale
business, private hospitals and institutions etc. should be brought
under broader and higher tax net. Increase taxes on luxury goods and
reduce indirect taxes on essential commodities as at present the
overwhelming majority of the populations are subjected to Indirect taxes
that constitute 86% of the revenue.
Concrete steps must be taken to recover huge accumulated unpaid tax
arrears which has already crossed more than Rs.5 lakh crore on direct
and corporate tax account alone, and has been increasing at a geometric
proportion. Such huge tax-evasion over and above the liberal tax
concessions already given in the last two budgets should not be allowed
to continue.
The SIT constituted for unearthing black money must deliver visible
result which is yet to be seen. Effective measures should be taken to
unearth huge accumulation of black money in the economy including the
huge unaccounted money in tax heavens abroad and within the country.
Finance Minister should make provisions to bring back the illicit flows
from India which are at present more than twice the current external
debt of US $ 230 billion. This money should be directed towards
providing social security.
Concrete measures be expedited for recovering the NPAs of the banking
system which is on the increasing trend again from the willfully
defaulting corporate and business houses. By making provision in Banking
Regulations Act, CMDs and Executives to be made accountable for
creation of NPAs.
Tax on Long term capital gains to be introduced; so also higher taxes on the security transactions to be levied.
The rate of wealth tax, corporate tax, gift tax etc. to be expanded and enhanced.
ITES, outsourcing sector, Educational Institutions and Health
Services etc. run on commercial basis should be brought under Service
Tax net. Govt.
Small saving instruments under postal and other agencies be encouraged by incentivizing commission agents of these scheme
OUR SERIOUS CONCERN:
We would like to express our strong resentment that the previous Govt.
failed to positively respond to the collective voice of the Central
Trade Unions on the very important issues concerning the working people
of India, both organized and unorganized, consistently repeated in the
form of a ‘10 point charter’ backed by several collective nationwide
programmes. We expect that this Govt. will take initiative to discuss
these issues with the Central Trade Unions in order to find a solution.
We also express our opposition to the so called Banking Reforms
encouraging private sector/capitalists banking at the cost of public
sector banks which saved the economy to an extent during the last global
financial meltdown. We also oppose increase in limit of FDI and
disinvestment of equity in insurance sector and FDI in pension. We
strongly oppose the FDI in Defence and Retail Sector. Several such
measures against the working men and women in this country including
anti workers proposals contained in the New Manufacturing Policy have
our strong opposition, as in our experience these kinds of measures have
helped the growth of only a small section of the capitalists while the
larger sections of the working population continue to be marginalized
and impoverished.
We also oppose the hectic measures of changing labour laws in the name
of labour reform both by the central and the state governments which are
basically aimed at legitimizing ongoing widespread violations by the
employers’ class and also throw out overwhelming majority of the
workforce of the purview of the labour laws themselves at the total
mercy of the employers.
POST BUDGET MEETING WITH TRADE UNIONS
Successive Finance Ministers have agreed to hold post budget meetings /
consultations with the central trade unions. However, it has not been
materialized except for one occasion. We understand such meetings did
take place with the Corporate Associations/Employers Federations. We
would like to importunate upon you to arrange such post budget meeting
with trade unions also.
With regards,
Yours sincerely,
Brijesh Upadhyay-BMS, S Q Jama- INTUC, Harbhajan Singh Sidhu-HMS, D L Sachdeva-AITUC
Tapan Sen-CITU, R K Sharma-AIUTUC, S P Tewari-TUCC, Monali-SEWA, Santosh Roy-AICCTU
Ashok Ghosh-UCTU, Shanmugan-LPF
Source: http://aiamshq.blogspot.in/
