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Bharatiya Pratiraksha Mazdoor Sangh: Memorandum to 7th CPC


No: BPMS / 7CPC / 226 A (8/3/L)

Dated: 30.07.2014


The Member-Secretary, 
7th Central Pay Commission,
 Chatrapati Shivaji Bhawan, 
1st Floor, B-14/1, 
Qutab Institutional Area, 
New Delhi – 110016 

Sub: – Submission of Memorandum. 

Dear Madam, 
We have for reference your notification inviting memorandum from stakeholders expressing their views/opinions/comments on the various terms of references to the commission. 
In this context, being a responsible stakeholder, we are hereby submitting our detailed Memorandum for your kind consideration. 
We also desire to depose oral evidence for the Commission, if and when called upon to do so, and shall be glad to provide any further clarification and/or information as may be needed/called upon by the Commission. 
Kindly acknowledge receipt. 
Thanking You, 
Yours Truly,
(M. P. SINGH) 
General Secretary

  1. Introduction 
  2. Principles of Pay Determination 
  3. Minimum-Maximum Ratio 
  4. Consideration for determining salary for various levels 
  5. Proposed General Pay Structure 
  6. Overview of Economic Conditions 
  7. Proposed Pay Structure (Common Categories) 
  8. Proposed Pay Structure (Specific Categories) 
  9. Annual Increment 
  10. Pay Fixation 
  11. House Rent Allowance 
  12. Children Education Allowance 
  13. Knowledge Update Allowance 
  14. Medical Allowance 
  15. Leave Travel Concession 
  16. Transport Allowance 
  17. TA/DA while on Tour 
  18. Washing Allowance 
  19. Split Duty Allowance
  20.  Risk Allowance 
  21. Armoured Vehicle Welding Allowance 
  22. Technical Allowance 
  23. Incentive for Quality Control 
  24. Incentive for promoting Small Family 
  25. HPCA / PCA 
  26. Special Allowance 
  27. Other Allowances 
  28. Advance for purchase of Bicycle & Warm Clothing 
  29. Advance for Medical Treatment 
  30. Advance for Festival 
  31. Advance for purchase of Computer 
  32. Advance for Purchase of Scooter 
  33. Advance for Natural Calamity 
  34. Advance for Hindi Training
  35. Advancer for Purchase of Motor Car 
  36. Advance for House Building 
  37. Leave 
  38. Study Leave 
  39. Gratuity 
  40. Group Insurance 
  41. Bonus 
  42. Income Tax Ceiling 
  43. Professional Tax 
  44. MACP Scheme 
  45. Death Relief 
  46. Recruitment & Retention of Talent 
  47. Promotion Policy 
  48. Administrative Issues 
  49. Merger of DA and Provision of Interim Relief 
  50. Judicial Pronouncements 
  51. Compassionate Appointments 
  52. Pension 
  53. Protection of Whistle Blowers 
  54. Speedy Decision in Service Matters 
  55. Strengthening of Joint Consultative Machinery 
  56. Amendment to Service Rules – co-relation of pay


Bharatiya Pratiraksha Mazdoor Sangh

Bharatiya Pratiraksha Mazdoor Sangh (hereinafter referred to as BPMS) is an Industrial Unit of Bharatiya Mazdoor Sangh. 
BPMS has under its belt more than 300 affiliated Unions functioning amongst Civilians across all the Directorates of the Ministry of Defence, and is thus a major stakeholder under the Commission. 
As a Federation which is recognised by the Government of India, BPMS has its representatives in all the forums of the Government, including National Council JCM. 
Therefore, as a responsible stakeholder, before proceeding further, we feel it would be appropriate and justified, if we could place on record, some of the relevant views expressed by previous Pay Commissions on the system of constituting the Pay Commissions. 
3rd Central Pay Commission 
“Our Experience has convinced us that the system of periodically revising the pay structure and conditions of service of the Central Government Employees on the recommendations of Pay Commission is not a very satisfactory one. We feel that even broad Judgements in these matters should be based on analysis of the relevant data. This is not possible when a Pay Commission is required to make recommendations on the pay scales and conditions of service for such a large number of employees within a limited period. We would, therefore, suggest the creation of a Standing body on Pay and Cadre Management.” 
4th Central Pay Commission 
“If we may venture to say so, the work of Pay Commission i s laborious and takes time.Moreover Pay Commissions come at Intervals of 10 years or so. A great change take place in the meantime both in regard to the system of pay determination and the promotion policies etc. Such changes take place quite fast in the case of compensatory allowance and other similar payment. An allowance which is considered sufficient today may not be reasonable, if changes take place quickly. It is therefore necessary that there should be permanent machinery to undertake periodical review of the pay, allowances and conditions of service of the Central Government employees. That will also enable Government to reverse the implantation of its pay policy in an effective, systematic and coordinated manner. We suggest that Government may set up such a body which be responsible for maintaining and updating the basic data on pay and allowance of Government employees to review the pay scales and rates of allowances and other related matters. 
5thCentral Pay Commission 
Para 171.8 “It is suggested that Government may set up a constitutional Body, which should be responsible for maintaining and updating the basic data on pay and allowances of Government employees and to review the pay scales and rates of allowances and other related matters on continuing basis. It would be in the fittest of times if the Permanent Pay Body is given a constitutional status and authority, as is the case with the Finance Commission.The Chairman, Members and Member Secretary can be appointed for a term of three years, so that there is change of guard every now and then. Recommendations of the Pay Body should not merely be advisory in nature as at present, but should be in the nature of an award which is binding on the Government as well as the Government Employees.” 
6th Central Pay Commission 
While restraining itself from making any direct comments on the issue, the th 6 CPC, however, while making its recommendations on “Regulatory Bodies” (Chapter 8.1) has opined that in such institutions / group consisting of sector regulators with an economic or financial role regulating both prices and standards of service, the tenure of their members should be fixed tenure. Therefore, if a broad, logical and unbiased interpretation is taken, the 6th CPC also inter-alia opined the need to have a permanent institution where the role is financial in nature. 
In view of the foregoing discussion, it would be appropriate and fair to suggest that the Government should set up a permanent bipartite Wage Negotiating Machinery for Central Government Employees with a mandate to revise their pay and allowances after every Five Years. It is also suggested that such a permanent body should not be merely a recommending body but its recommendations should have mandatory affect. 
Nevertheless, we proceed further to place on record our considered views on various aspects governing the terms of reference of this commission.
Ministry of Defence
The Ministry of Defence (Secretariat) comprises of 4 Departments viz. Department of Defence (DOD), Department of Defence Production (DDP), Department of Ex- Servicemen Welfare (DESW) and Department of Defence Research & Development (DDR&D) and a Finance Division. 
The Defence Secretary functions as Head of the Department of Defence and is additionally responsible for coordinating the activities of the four Departments in the Ministry. 
The principal functions of the Departments are as follows: 
(i) The Department of Defence deals with the three Services and with InterServices Organisations. It is also responsible for the Defence Budget, establishment matters, defence policy, matters relating to Parliament, Defence cooperation, and coordination of the activities. It is headed by Defence Secretary who is assisted by Director General (Acquisition), Additional Secretaries and Joint Secretaries. 
(ii) The Department of Ex-Servicemen Welfare which is a new addition is headed by Secretary (ESW). This Department basically deals with the formulation of policy and planning for the Rehabilitation/ Resettlement of Ex-Service Personnel and Pension matters of Ex-Servicemen, including pension grievances. 
(iii) The Department of Defence Production is headed by Secretary (Defence Production). He/She is assisted by one Additional Secretary and Joint Secretaries. This Department deals with matters pertaining to Defence Production, indigenization of imported stores, equipment and spares, planning and control of departmental production units of the Ordnance Factory Board, and of Defence Public Sector Undertakings (DPSUs). 
(iv) The Department of Defence Research and Development is headed by the Secretary (Research & Development) who is also the Scientific Advisor to the Raksha Mantri. Its function is to advise on scientific aspects of military equipment and logistics and the formation of research, design and development plans for equipment used by the Services. 
Defence Acquisition Council: The Government has set up a Defence Acquisition Council headed by the Raksha Mantri for decision making in regard to the totality of the new planning process, which inter-alia involves according „in principle‟ approval of Capital Acquisitions in the long term perspective plan and according „in principle‟ approval for each Capital Acquisition programme. The decision flowing from the Defence Acquisition Council are to be implemented by the following three Boards:
(i) Defence Procurement Board headed by the Defence Secretary; 
(ii) Defence Production Board headed by the Secretary (Defence Production); 
(iii) Defence Research & Development Board headed by the Secretary (Defence Research & Development). 
These Boards have been entrusted with specific functions. A Defence Acquisition Wing headed by Director General (Acquisition) has also been created to assist the Defence Procurement Board in its functioning. 
The Acquisition Wing, within the Ministry of Defence, is a unique structure, having an integrated set up with Officers from the Department of Defence, Finance Division and Services Headquarters working together as a close-knit team. All matters concerning acquisition of Capital nature will be dealt in the Acquisition Wing. It will fill the void of a dedicated specialist organisation for Defence Procurement as pointed out by the Group of Ministers. 
The Acquisition Wing consists of four Divisions, viz., Land, Maritime and Air Force Division dealing with Army, Navy & Air Force respectively and a Systems Division dealing with systems having Tri-Services applicability. Each of the Divisions has a Joint Secretary designated as Acquisition Manager, an Additional FA (Joint Secretary level officer) designated as Finance Manager and a Service Officer of „Two Star‟ rank designated as Technical Manager. The Acquisition Wing with its components of Civil and Defence Service Officers working as a team provides the necessary synergy to the entire acquisition process. 
The new structures are intended to facilitate expeditious decision-making in an integrated manner in areas relating to acquisitions for the three Services while at the same time imparting a higher degree of transparency and cost effectiveness to the process of acquisition of equipment, weapon and weapon systems. 
The Finance Division of the Ministry of Defence is headed by a Financial Adviser. He is tasked with exercising financial control over proposals involving expenditure from the Defence Budget, and with the responsibility for internal audit and accounting of Defence expenditure. In the latter tasks, he is assisted by the Controller General of Defence Accounts (CGDA). 
Services Headquarters and Inter-Service Organisations: 
In order to execute its assigned functions, the Ministry of Defence is assisted by the three Services Headquarters and a number of Inter-Service Organisations (ISOs). The three Services Headquarters viz. the Army Headquarters, the Naval Headquarters and the Air Headquarters function under the Chief of the Army Staff (COAS), the Chief of the Naval Staff (CNS) and the Chief of the Air Staff (CAS) respectively. They are assisted by their Principal Staff Officers (PSOs). The InterService Organisations are responsible for carrying out the tasks relating to the common needs of the three Services, like medical care, public relations and personnel management of the civilians in the Defence Headquarters. Some Organisations also provide technical assistance to the Department of Defence Production. All these organisations function directly under the Ministry of Defence. 
Integrated Headquarters of Ministry of Defence.
Integrated Headquarters of Ministry of Defence comprising Army Headquarters, Naval Headquarters, Air Headquarters and Defence Staff Headquarters are associated in the formulation of policies in relation to matters concerning the Defence of India and Armed Forces of the Union. They would be responsible for providing executive direction required in the implementation of policies laid down by the Ministry of Defence. They shall exercise delegated administrative and financial powers. The role and function of the Services Headquarters ‘now’ designated as Integrated Headquarters in all other respects remains unchanged.
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