Friday 28 November 2014

Sixth Pay Commission Vs Ninth Bipartite

I just tried comparing Basic Pay of 6th pay commission to that of our 9th bipartite, scale to scale.
I found that armed forces have some similar hierarchical positions comparable to banks. ( Best Possible ).
Comparing the salaries is confined to Basic pay so that we can analyse the difference easily.
Will somebody try to analyse these.
Lieutenant       SCALE I    
BASIC PAY GRADE PAY TOTAL   BASIC   Difference
14360 5400 19760   14500   5260
14880 5400 20280   15100   5180
15400 5400 20800   15700   5100
15930 5400 21330   16300   5030
16450 5400 21850   16900   4950
16970 5400 22370   17500   4870
17490 5400 22890   18100   4790
        18700    
             
CAPTAIN       Scale 2    
17400 5700 23100   19400   3700
17930 5700 23630   20100   3530
18450 5700 24150   20900   3250
18970 5700 24670   21700   2970
19490 5700 25190   22500   2690
20010 5700 25710   23300   2410
20540 5700 26240   24100   2140
        24900    
             
MAJOR       Scale 3    
22280 6100 28380   25700   2680
22840 6100 28940   26500   2440
23410 6100 29510   27300   2210
23970 6100 30070   28100   1970
23540 6100 29640   28900   740
25100 6100 31200   29700   1500
25670 6100 31770   30600   1170
26240 6100 32340   31500   840
26800 6100 32900        
27370 6100 33470        
27930 6100 34030        
             
             
lt COLONEL       Scale 4    
             
26280 6600 32880   30600   2280
26970 6600 33570   31500   2070
27670 6600 34270   32400   1870
28370 6600 34970   33300   1670
29060 6600 35660   34200   1460
29760 6600 36360   35200   1160
30450 6600 37050   36200   850
31150 6600 37750        
31850 6600 38450        
32540 6600 39140        
             
             
COLONEL       Scale 5    
             
29760 7600 37360   36200   1160
30540 7600 38140   37200   940
31320 7600 38920   38200   720
32110 7600 39710   39300   410
32890 7600 40490   40400   90
33670 7600 41270       41270
             
             
BRIGADIER       Scale 6    
33240 8400 41640   42000   -360
34020 8400 42420   43200   -780
34800 8400 43200   44400   -1200
35590 8400 43990   45600   -1610
        46800    
             
MAJOR GENERAL       Scale 7 ( GM )    
43280 9000 52280   46800   5480
44370 9000 53370   48100   5270
45480 9000 54480   49400   5080
46620 9000 55620   50700   4920
47790 9000 56790   52000   4790
48990 9000 57990        
             
             
             
lt GENERAL            
48990 11000 59990        
50220 11000 61220        
51480 11000 62480        
52770 11000 63770        
54090 11000 65090        
             
             
             
             
VICE CHIEFS 80000          
SERVICE CHIEF 90000          

PAY SLIP COMPONENT - WHY ARE WE TALKING ABOUT THIS IN THE TENTH BIPARTITE

10th Bipartite we started hearing a new word.   Pay Slip Components, suddenly IBA and UFBU both started talking about it.  Want to know why my dear friends,  here we go.

In any bipartite , first thing that both parties would agree upon is the merger of DA and effective date of implementation, Next will be the percentage hike.  Third and the most difficult one is distributing the same  in the following 

1.       Pay Slip Components:  Most important, this is what we get every month.   The salary what we call it, consists of  Basic,DA,HRA,CCA, PQA,FPA  etc.,
 2.       Non Pay Slip Components:  We can broadly divide them into two.  a) Those settled under bipartite such as Medical Aid, Hospitalisation Expences, Halting allowance, LFC, Compensation on transfer.   b)  Other Allowances such as Petrol Limit, House Rent, Entertainment expences, Subscription allowances etc., which are negotiated by individual banks.
 3.       Superannuation benefits:  Pension, Gratuity, PF contribution, Encashment of Leave at the time of superannuation etc.,

Except Pension under superannuation benefits all others well defined and are same for all the employees according to their service and cadre . But iIn case off superannuation benefits we have three categories of employees
a.       Pension Optees.
b.      PF oftees.  ( Very few people are left in this category )
c.       New Pension scheme employees. ( They are yet to witness a Bipartite )

The cost of for PF optees  was 10% of their basic pay for all the bipartites. However  The cost of the pension opetees  was pegged at  26.5% of the basic for 7th Bipartite, 30.5% of the basic for 8th bipartite and 36% for 9th bipartite.     

Here is the tricky point, for PF optees Banks contributed 10%.  For pension optees IBA has forced the employees to share the “  incremental cost “ i.e over and above 10% basic pay by the employees.  ( All the employees including who had opted for PF )  The  “ incremental Cost was shared by all the employees in the following manner 

During the 7th Bipartite, IBA requested the Unions to bear additional cost on pension on account of increase in basic pay, in 50:50 proportions over and above 10% of pay.  The additional cost on pension, on account of increase in basic pay was estimated at 26.5% of the pay.  Excluding 10% of the share of the employees, remaining 16.5% cost was shared in the ratio of 8.25 / 8.25 each, by Unions and Management.
 Similarly during 8th Bipartite, incremental cost on pension on account of change in basic pay was estimated at 30.5% of pay.  Excluding 10% share of employees, remaining cost was shared in the ratio of 11.25% and 9.25% by the Management and Unions respectively. 

In the 9th Bipartite, incremental cost on account of salary revision is estimated at 36% of pay and in excess of 10% contribution by the employees, will be shared in 50/50 ratio at 13% each, by the Unions and the Management.

For the shortfall in the pension fund of pension optees all other employees have contributed by accepting to bear the incremental cost.  Other wise,  PF optees should get more salary than pension optees as superannuation benefits were less.   ( 26 % of basic pay for 9th bipartite which is really huge ).

Now for 10th bipartite another group was added NPS ( New Pension Group ),  the group which is very active, dynamic, courageous.   They are not like us, who were silent, paid twice for the pension what ever they have demanded.

Now there is no other way, IBA has to contribute totally for the retirement benefits by themselves, as they cannot differentiate three different group of employees, and leads to total confusion and chaos, as there are already court cases against 9th bipartite.

Friday 7 November 2014

TENTH BIPARTITE

Now a days at ground level we are seeing unrest among some P.O’s regarding  Bipartite settlement and many of them are in favor of becoming part of Central Pay Commission .  I am a close follower of various groups in FB also. I started searching and comparing various other settlements done for different organizations.  In fact the following are my observations which I feel  may be useful for explaining the young officers.
Due to various political reasons the govt has decided to give benefit to Central govt employees. If the intention of the govt is to give, it can give either through CPC or through BPS, i.e the final paying authority is the Govt only.  THIS IS VERY  SIMPLE LOGIC.
I got the II pay commission report  for central public sector enterpriseswhich has given its report in 2006.  These include giants like ONGC, BPCL , IOC, CHENNAI PETRO, ONGC VIDESH  etc.    The shocking part of it is that the salary is not equal for all.  The Govt has divided  the companies into 4 groups and the salary structure is different for each group.  The following is the example for the officers cadre
A+ CompanyABCD
Basic for officers in executive cadre14500-2500013500-2300012900-2210012200-2090011500-19800
Risk Pay13001300125012001100
A+ABCD
IOCAir India Ltd.HMT Ltd.Hindustan Shipyard Ltd.Tyre Corporation of India Ltd.
BPCLHindustan Aeronautics LtdNational Textile Corporation LtdHindustan Insecticides Ltd.HMT Bearings Ltd.
HPCLMMTC Ltd.IRCON International Ltd.Jute Corporation of India Ltd.Hooghly Dock and Port Engineers Ltd
ONGCChennai petroONGC Videsh Ltd.National Seeds Corporation Ltd.National Film Development Corporation
FCIRashtriya Ispat Nigam Ltd.Indian Railway Finance Corporation LtdMishra Dhatu Nigam Ltd.Rail Vikas Nigam Ltd.
BSNLMTNLHindustan Copper Ltd.HMT Watches Ltd.IDPL (Tamilnadu) Ltd.
What happens if separate pay commission  is appointed for our banks.  In case we are categorized according to size/profit/efficiency where will we go.   If it is not bipartite, the recommendations will be implemented immediately and our consent is not required. With regard to the indefinite strike , these Young P.O’s cant withstand the pressure from executives.  Further as public money is involved, the wrath of the public will be on us directly.  Imagine an account holder who has an SB balance of Rs.25,000/- and cant withdraw the same for three to four days and is in dire need of money.  We even can’t conduct a demonstration in a public place after a four to five day strike, because public will revolt against us as we would have already lost the sympathy by that time.  Further High Courts are now very active and  whenever doctors are on strike, somebody  filed a case in high courts and High court declared the strike as illegal and asked the doctors to join immediately and resolve the matter through negotiations. We want good wage revision, but it should be done through Bipartite.  But surrendering the rights to government is not at all acceptable. I am in the process of comparing stage by stage basic salary of 6th CPC Vs 9th Bipartite.  The same will be published here.