Sunday, December 15, 2019

The Issue of DA Neutralisation



The Issue of Neutralization of IDA
For Loss Making PSUs

A Note on Loss Making PSUs was sent by me to the authorities concerned during Jan 2019.  In that note ‘bringing the employees of loss making units to the new scales’ was also dealt with. When CPC is implemented, no Govt employee is allowed to continue in the old scale. CPC means only current CPC scales. Like that after every PRC, if  the scales  becoming uniform concurring with the Current scales  then confusion would be  less regarding IDA of different years like 1997, 2007, 2017.


The sum and substance of that portion of the note is given below

“ At least one demand will help almost all the 70 loss making units to adopt 2017 new scales. Why different units whether profit making, loss making are in different scales like 2017, 2007, 1997 etc and getting different IDA orders issued for these different scales by DPE ?.  There will not be any problem of financial sustainability by making the new 2017 scales applicable to all PSus, even if any that would be  minimum. It is like conversion of old scales to new scales with new IDA.

The demand is when any ‘new scale’ is introduced, it is better if it is introduced to all PSUs as per PRC. IDA netralisation on a particular date is not wage enhancement- It is subsuming- it is correction of inflationary erosion on the real wage announced 10 years back. Fitment is wage enhancement. Linking that with PBT is understandable. But refusal to enter into new scales is discrimination.

 For this we may need an amendment in 3 rd PRC DPE guidelines, that is  “Allowing every PSU including the loss making PSUs to 2017 scales and graded fitment as per PBT ” or any specific order from DPE allowing neutralization as on 1-1-2017 with new scales. This one is accepted then that will be a better solution till the issue of affordability clause is once for all withdrawn. This will be a better position than merely standing on old scales like 2007 or 1997.”

 My note was sent to the concerned authorities. DPE only responded stating the issue was forwarded to DOT. But there was no response from DOT. But the issue is mainly concerned with DPE.  It is appreciable that atleast AUAB got a response from BSNL on account of its struggle notice.


A written statement (thro appeal) was given by BSNL informing the consideration of DOT. I quote the same.

"BSNL F.No. BSNL/7-3/SR/2018/1 dt 15-2-2018  Appeal
In para 6
 The Management has clarified to the representatives of employees that in view of the present financial position of the company on one hand and to give immediate relief to the employees of BSNL on the other hand, DOT is considering DA Neutralisation on the basis of 3rd PRC scales. This is in view of the fact that some of the groups brought to the information of Management that this would mitigate the stagnation of many employees. DOT will try for further 5 % fitment thereafter. However BSNL will not seek budgetary support to effect the Pay revision."

Once the employees  of BSNL get it, the same  may be extended to the BSNL IDA Pensioners also. The IDA pensioners may not get any enhancement due to IDA neutralisation but it is not harmful one to them. As on October 2019 both  2007 IDA rate ( 152% ) and if neutralisation extended then  2017 IDA rate ( 14.8%)  are the same on calculation- for every 100 rupees pension of 1-1-2017 both of the calculation would give  rupees 252 (inclusive of IDA amount).  But it would be helpful to enhance the minimum pension to Rs 9000 for the past pensioners also as after neutralisation employees have to be placed in 3rd PRC scales.

For employees it is useful on some aspects.

1. It will help them to come out of stagnation ( As most of them gone VRS,  exact beneficiaries may be less but before VRS it was 30000)

2. IDA neutralised will be helpful to get more quantum of increment- for every 100 rupees instead of 3 rupees they get 6.6 rupees- the amount is doubled because of IDA neutralization

3. HRA quantum will also be improved. The gain may be Rs 22 for every Rs 100

4. For any new Pensioner their minimum pension can't be less than 9000 Today even people in NE6 will not get it as their end scale is 17430 only. This section would get enhanced pension

Enclosure: Copy Of DPE lr dt 13-2-2019


16-12-19

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