7th CPC Quessionare – Reply given by JCM National Council (Staff Side)
No.NC-JCM-2014/ 7th CPC
The Secretary,
7th Central Pay Commission,
New Delhi
Sub: – Reply to Questionnaire
Respected Madam,
With regards,
7th CPC Questionnaire
1. Salaries
Group C is a skilled worker. MTS is the lowest category of Group C. The 6th CPC evolved the MTS by amalgamating some of the unskilled, semi-skilled and skilled functions without any scientific basis or logic. From the standpoint of the stipulation in the recruitment rules, eligibility criteria etc, MTS deserves to be categorized as a skilled worker. In practice, most of the departments have outsourced or contractorised the unskilled or semi skilled jobs leaving the MTS to cater to the requirements of the skilled functions.
Wage structure in civil service is to be determined on the basis of the computation of the minimum wage; fair comparison of wages elsewhere, growth in the economy etc. The living wage, which is a constitutional guarantee, has not been defined. The 15th Indian Labour Conference held in 1957 brought in the concept of โNeed Based Minimum wageโ on the basis of Dr. Aykhroid formula. The need based minimum wage is required to be provided for an unskilled worker whenever one is employed. The definition underwent minor changes, when the Supreme Court revised the norms later. Presently there are no unskilled regular employeesโ cadre in Government of India services. The Commission is required to first determine the need based minimum wage as per the Dr. Aykhroid formula and make necessary adjustment to determine the wages of MTS which is the lowest category in Government of India services. The co-relation of the wages of the skilled and unskilled worker at the lowest grade had always been of the order of 130% for the skilled worker. The minimum of the pay of the MTS/SS has therefore to be determined at 130% of the need based minimum wage.
The minimum maximum ratio obtaining in different countries as per information gathered by V CPC was as under:
1.2 What should be the considerations for determining salary for various levels of functions falling between the highest level and the lowest level functionaries?
Similarly semi-skilled workers engaged in hazardous activities like scavenging, maintenance of rail track, in Laboratories, Hospitals and handling chemicals, explosives etc. may also be considered for a special treatment.
2. Comparisons
There should be no comparison/parity between pay scales and perquisites between Government and the private sector for their functions and objectives are incomparable. While the private sector is motivated by the concept of maximization of profit, the requirement of quality service to public without any favour is the cardinal principle of governance. A civil servant is supposed to possess the qualities of being fearless, honest, appreciative of inherent difficulties, non- discriminatory between one citizen and the other; sense of equality; adherence to the rules and regulations etc.
However a โfair comparison with outside wagesโ is a principle which has been adopted world over for determination of wages of Civil (Government) servants and therefore at least at the bottom level, wages must be on par with the average minimum wage obtaining in selected Private/Public sector undertakings, subject to the condition that it should not in any case be less than the Need Based Minimum wage determined and quantified on the basis of norms adopted by the 15 ILC.
So far as perquisites are concerned no comparison with those obtaining in Private sector is possible except in the case of House Rent/Travelling Allowances. Other perquisites in the Private sector have been granted on altogether different considerations.
2.2 Should there at all be any comparison/parity between pay scales and perquisites between Government and the public sector? If so, why? If not, why not?
2.3 The concept of variable pay has been introduced in Central Public Sector Enterprises by the Second Pay Revision Committee. In the case of the Government is there merit in introducing a variable component of pay? Can such variable pay be linked to performance?
The concept of performance related pay structure was actually imported by the 6th CPC through the Pay Band and Grade Pay system. In the absence of an objective measurement criterion to evaluate the performance of individual officials and groups, the innovation was flawed right at the outset. The 6th CPC failed to recognize the fact that in Governmental set up, segmentalisation of functions into tiny units is next to impossible. In order to make the concept workable, the organization must be capable of finalizing clear cut targets both at the individual and group levels. This being difficult in most of the Governmental organizations, it is not desirable either to continue with the existing system or import or replicate what is done in the Public Sector Undertakings. This apart, it is pertinent to point out that most the west European countries, which adopted the Performance pay related scheme in civil service in the hay-days of Thatcher-Reagan era subsequently discarded it as infeasible.
3. Attracting Talent
4. Pay Scales
4.2 Is there any need to bring about any change?
No.
The Pay Band & Grade Pay structure has not prevented the highly qualified technocrats and professions to leave the Government in search of better career avenues in public and private sectors.
4.4 Successive Pay Commissions have reduced the number of pay scales by merging one or two pay scales together. Is there a case for the number of pay scales/ pay band to be rationalized and if so in what manner?
5. Increment
5.2 What should be the reasonable quantum of annual increment?
5.3 Whether there should be a provision of variable increments at a rate higher than the normal annual increment in case of high achievers? If so, what should be transparent and objective parameters to assess high achievement, which could be uniformly applied across Central Government?
5.4 Under the MACP scheme three financial up-gradations are allowed on completion of 10, 20, 30 years of regular service, counted from the direct entry grade. What are the strengths and weaknesses of the scheme? Is there a perception that a scheme of this nature, in some Departments, actually incentivizes people who do not wish to take the more arduous route of qualifying departmental examinations/ or those obtaining professional degrees?
No financial benefit accrues to a person who is promoted through the arduous route of examination or acquisition of professional qualification, when such promotion follows the financial upgradation under MACP Scheme. This has to be rectified by evolving a distinctly different financial benefit scheme on grant of actual regular promotion.
6. Performance
We are against the system of incentives to reward good performance as this would only encourage favouritism and nepotism for the reasons stated to our reply to question No.2.3 and 5.2
7. Impact on other organizations
8. Defence Forces
8.2 In what manner should the concessions and facilities, both in cash and kind, be taken into account for determining salary structure in case of Defence Forces personnel.
8.3 As per the November 2008 orders of the Ministry of Defence, there are a total of 45 types of allowances for Personnel Below Officer Rank and 39 types of allowances for Officers. Does a case exist for rationalization/ streamlining of the current variety of allowances?
8.4 What are the options available for addressing the increasing expenditure on defence pensions?
No comments
8.5 As a measure of special recognition, is there a case to review the present benefits provided to war widows?
No comments
8.6 As a measure of special recognition, is there a case to review the present benefits provided to disabled soldiers, commensurate to the nature of their disability?
No comments.
9. Allowances
The existing allowances need to be retained and enhanced. . They are at a realistic level having been evolved by successive Pay Commission over detailed deliberations.
9.2 What should be the principles to determine payment of House Rent Allowance?
The IIIrd CPC had recommended that Government should lay down appropriate HRA rates in different cities and town based not on population criteria, but on an actual assessment of prevailing level of rent in different cities and Towns. Alternatively, certain notional rents for different types of accommodation meant for officers and personnel of specified pay groups should be laid down for particular cities after studying the actual market rent in that city. The house rent allowance will have to be the actual rent payable by an employee in a particular location as reduced by 10% of basic pay being the amount factored in the computation of minimum wage.
10. Pension
We are of the considered opinion that the new pension scheme which came into existence for the employees recruited after 1.1.2004 must be scrapped. The old statutory pension scheme as was in vogue prior to 1.1.2004 must be made applicable to all Government employees irrespective of the date of their entry into Government service. The New pension scheme has in fact created a class within class amongst the Central Government employees which is discriminatory and impermissible. It is clearly in contravention of the dictum pronounced by the Constitution Bench of the Supreme Court in Nakara Vs Union of India and therefore deserves to be rescinded.
10.2 As far as pre-1.1.2004 appointees are concerned, what should be the principles that govern the structure of pension and other retirement benefits?
5th CPC in their Para 127.6 has observed, โIt needs to be averred emphatically that pension is not in the nature of alms being doled out to beggars. Senior Citizens (Retired Government employees) need to be treated with dignity and courtesy befitting their age. Pension is their statutory, inalienable, enforceable right & it has been earned by the sweat of their browโ Honโble Supreme Court, in its landmark Constitutional Bench judgement dated 17.12.1982 in the case of D.S. Nakara Vs Union of India ruled โ
โA Pension scheme consistent with available resources must provide (adequate pension) so that the Pensioner would be able to live
i) free from want, with decency, independence and self respect and
ii) At a standard equivalent at pre-retirement level.
iii) Pensioners from payment of pension form a homogenous class. Different formulae affording unequal treatment cannot be adopted to compute their pension solely on the ground that some retired earlier and some retired later.
A comprehensive scheme of retirement benefit has been suggested by the stake holders both as an agenda in the National Council meeting of JCM and the meetings of SCOVA. The Commission is requested to consider the well thought out scheme formulated in those agenda and make recommendations to the Government, so that the pension and retirement benefits will really become meaningful for the retired employees. We shall elucidate the points in detail when we submit the memorandum to the Commission on retirement benefits.
11. Strengthening the public governance system
The then existing Group D employees, to the best of our understanding have all been trained, upgraded or promoted to function as skilled group C employees and they perform well and efficiently.
11.2 In what way can Central Government organizations functioning be improved to make them more efficient, accountable and responsible? Please give specific suggestions with respect to:
Whatever rationalization effected so far by the Government had been through an unscientific and arbitrary executive fiat like the one issued in 2001 and which was kept operative till 2009. The said exercise only reduced the staff strength drastically. We are not aware of any rationalization or reduction in Group A cadres through this exercise even though the executive instruction covered all grades and cadres in the Government service. In fact there had been no rationalization but only reduction of manpower overburdening the existing workers and making most of the Departments difficult to perform perfectly. In our considered opinion, the 7thCPC must recommend to the Government to set up a Committee in each department with experts from outside the organization, the officials from within the organization and representative of the Unions of the respective department to study the functional changes taken place over the years, especially due to the induction of modern technology the new challenges and the best way to meet those challenges, reduction in paper work, customer satisfaction and economy in expenditure and make suggestions to the Government for their acceptance and implementation.
12. Training/ building competence
To ensure that periodical professional training is imparted to all personnel to update the skills.
12.1 How would you interpret the concept of โcompetency based frameworkโ?
No comments. This in fact is a matter which must be considered by an Administrative Reforms Commission rather than the Pay Commission.
12.2 One of the terms of reference suggests that the Commission recommend appropriate training and capacity building through a competency based framework.
a) Is the present level of training at various stages of a person’s career considered adequate? Are there gaps that need to be filled, and if so, where?
b) Should it be made compulsory that each civil service officer should in his career span acquire a professional qualification? If so, can the nature of the study, time intervals and the Institution(s) whose qualification are acceptable, all be stipulated?
c) What other indicators can best measure training and capacity building for personnel in your organization? Please suggest ways through which capacity building can be further strengthened?
In our opinion in- service training is the best course for skill development.
13.1 What has been the experience of outsourcing at various levels of Government and is there a case for streamlining it?
13.2 Is there a clear identification of jobs that can be outsourced?
No. for reasons stated in reply to question No. 13.
14. Regulatory Bodies
No comments.
14.1 Kindly list out the Regulators set up under Acts of Parliament, related to your Ministry/ Department. The total number of personnel on rolls (Chairperson and members + support personnel) may be indicated.
No comments. The reply has to be given Government Departments.
14.2 Regulators that may not qualify in terms of being set up under Acts of Parliament but perform regulatory functions may also be listed. The scale of pay for Chairperson /Members and other personnel of such bodies may be indicated.
No comments. The reply has to be given Government Departments.
14.3 Across the Government there are a host of Regulatory bodies set up for various purposes. What are your suggestions regarding emoluments structure for Regulatory bodies?
No comments.
15. Payment of Bonus
Source: http://confederationhq.blogspot.in/2014/05/7th-cpc-quessionare-reply-given-by-jcm.html
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