“Management of the CPSEs would be free to negotiate wage
revision for workmen where the periodicity of wage settlement of five years or
ten years has expired generally on 31.12.2016 keeping in view the affordability
and financial sustainability...
of such wage revision for the CPSEs concerned,” said a press government release.
of such wage revision for the CPSEs concerned,” said a press government release.
Moreover, it says that no budgetary support for any wage
increase shall be provided by the Government. The entire financial implication
would be borne by the respective CPSEs from their internal resources.
In those CPSEs for which the Government has approved
restructuring/revival plan, the wage revision will be done as per the
provisions of the approved restructuring / revival plan only.
The management of the concerned CPSEs have to ensure that
negotiated scales of pay do not exceed the existing scales of pay of
executives/officers and non-unionized supervisors of respective CPSEs.
The management of CPSEs where the five year periodicity is
followed have to ensure that negotiated scales of pay for two successive wages
negotiations do not exceed the existing scales of pay of executives/officers
and non-unionized supervisors of respective CPSEs for whom ten years
periodicity is being followed, the statement added.
Other highlights of the decision include
To avoid conflict of pay scales of executives/non-unionised
supervisors with that of their workmen, CPSEs may consider adoption of graded
DA neutralization and/or graded fitment during the wage negotiations.
CPSEs must ensure that any increase in wages after
negotiations does not result in increase in administered prices of their goods
and services.
The wage revision shall be subject to the condition that
there shall be no increase in labour cost per physical unit of output. In
exceptional cases where CPSEs are already working at optimum capacity, the
administrative Ministry / Department may consult DPE considering industry
norms.
The validity period of wage settlement would be for a
minimum period of five years for those who opted for a five year periodicity
and for a maximum period of ten years for those who have opted for a ten year
periodicity of wage negotiation with effect from January 1, 2017.
The CPSEs would implement negotiated wages after confirming
with their Administrative Ministry/Department that the wage settlement is in
conformity with approved parameters.
It may be recalled that there are about 12.34 lakh employees
in 320 CPSEs in the country. Out of these, about 2.99 lakh employees are Board
level and below Board level executives and non-unionized Supervisors. The
remaining about 9.35 lakh employees belong to the unionized workmen category.
Wage revision in respect of unionized workmen is decided by trade unions and
managements of CPSEs in terms of guidelines issued by the Department of Public
Enterprises (DPE) for wage negotiations.
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