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issue of affordability clause is once for all withdrawn.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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