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Employment under Central Government -Draft of JCM Memorandum to 7th CPC

June 26, 2014 Leave a Comment

Draft of JCM Memorandum to 7th CPC –PREFACE

Draft of JCM Memorandum to 7th CPC – Please give your valuable suggestions
National Council (Staff Side) Joint Consultative Machinery Central Government Employees 13-C, Ferozshah Road, New Delhi – 110001 E Mail : [email protected] No.NC/JCM/2014
Shiva Gopal Mishra Secretary Dear Comrade, The draft of JCM Memorandum to 7th CPC is placed on National Council JCM website www.ncjcmstaffside.com you are requested to send your suggestions if any positively before 28th June 2014. We will be submitting our memorandum on 30th June.most urgent
With greeting
Sd/-
yours sincerly 
 (Shiva Gopal Mishra)
PREFACE
The 6th CPC submitted its report in March 2008. It made major changes in the structure of pay scales by introducing the concept of Grade Pay. Their recommendations were implemented with effect from 1.1.2006. There were plethora of anomalies, common as well as department specific. None of these anomalies were removed despite several rounds of discussions.

On 1.1.2011, the percentage of DA entitlement crossed over 50%. Since the erosion of the value of wages by that time had become enormous, the demand for merger of  DA was raised by the employees. Some of them demanded setting up of the 7th CPC on the plea that the residency period of any wage structure must not exceed 5 years, especially in the background that the pay revision in most of the PSUs takes place at the interval of 5 years. They also pointed out that unlike the 5th CPC the 6th CPC had not suggested as to when the next wage revision must be attempted. The Government ignored those demands, despite well knowing that the inflation and abnormal price rise of food and other essential commodities had reduced the purchasing capacity of the government employees significantly. Government refused to discuss these demands either bilaterally or at the forum of JCM. A section of the employees went on a day‟s strike action, while the industrial workers took the strike ballot. Climate of confrontation emerged. Taking note of these developments, Government in September 2013 announced the setting up of the 7th CPC. The Standing Council of JCM, National Council met on to discuss various issues connected with the finalisation of the terms of reference. The following suggestions were made for incorporation in the Terms of Reference (TOR): a) The Commission should have a labour representative. b) DA (the extent of percentage as on 1.1.2014) to be merged and treated as pay for all purposes. c) To include GDS within the ambit of 7th CPC. d) To grant Interim Relief @ 25% of Pay + GP. e) To ensure that the 7th CPC recommendation will be effective from 1.1.2014. f) To ensure parity in pension for all pensioners as per the 5th CPC recommendation. In spite of holding out assurance, no further discussions were held. The Government unilaterally notified the Terms of Reference. The Staff Side has now submitted a memorandum to 7th Central Pay Commission on the twin issues, i.e. the need to grant interim relief and merger of Dearness Allowance. It will be the endeavour of the Staff Side to bring about community of approach on all issues concerning the wages, allowances and other relevant matters, as was the www.ncjcmstaffside.comcase in the previous occasions. We are hopeful that all the Associations/ Federations/Unions of Central Government employees will endorse this memorandum, prepared by the Staff Side, National Council, JCM on their behalf. No doubt they will submit separate memorandum on department specific issues. With this introduction, we submit this memorandum to the 7th CPC for their consideration.

Chapter II
 Employment under Central Government  
We have relied upon two Governmental  sources to prepare the requisite data needed to analyse the trend of growth or decline in the number of personnel employed by the Government of India.  The Pay Research Unit, functioning under the Department of Expenditure  has published the brouchure carrying data up to the financial year 2011-12.  The Director General, Employment and Training has published the Census of Central Government Employees which carries details for the year 2008-2009 (31.3.2009).  The tables appended to this chapter are sourced from the above mentioned Brouchers.   
 Table 2-1 depicts the sanctioned and working strength group-wise , for a period covering 7 years from 2005-06 to 2011-12, whereas Table 2.2 indicates the position in 1995-96 and 2011-12.  The sanctioned strength as in 1995-96 (for all groups together) which stood at 4215932 shrunk to 3684543 in 2011-12.  The reduction effected through abolition of posts or whole scale conversion of Department in to  PSUs was of the order of 531389 (12.6%), when it is viewed with reference to the working strength (men in position), the reduction was 808248 (20.7%).  The difference between the sanctioned strength of 1995-96 and working strength of 2011-12 was as huge as 1131402.  In other words, the government was functioning with almost 27% less man power, even though the man power requirement in the 16 years between 1995-96 to 2011-12 had enormously increased due to the expansion of Governmental activities both extensively and intensively.  The  canard  that was spread through out the period that the government had accumulated a lot of fab in the post independent era,  unfortunately gathered momentum, which led the government to set up the Expenditure Commission, in the wake of 5th CPC wage revision.  Not being satisfied with the speed of abolition of posts, Government issued an executive fiat in 2001, whereby two-third of all vacant posts was directed to be abolished.  The posts are normally created in government after a procrastinated inter-departmental study.  The  Cabinet has to give its assent for  the proposal for creation of posts to materialise.  In the process of implementation of the said executive fiat, which was in currency from 2001 to 2009 (nine years continuously), the posts created after such thorough deliberations and with the seal of approval from the highest political forum was simply ordered to be abolished arbitrarily.  This created a void, which affected adversely the very functioning of some departments, www.ncjcmstaffside.com
making it necessary for the heads of organizations either to outsource the functions or contract it out or engage personnel on fixed time period contract basis, giving room for plethora of administrative problems.  The efficacy, built assiduously over the years by the Departments was destroyed.  The  Citizen  Charter prepared by these  Departments, remained only as an ornamental piece on the walls of Government offices. 
Incidentally, it may be noted from Table 2.2 that there had been no reduction or abolition in Group A posts but reduced the sanctioned strength of Group B (Gazetted) posts which, however, have no element of direct recruitment.  The entire 1237682 Group D posts were either abolished or upgraded as Group C.  
The illogical directive, conceived by the Department of Personnel as a means to speed up the process of  pruning  brought in its wake the undesirable practice of exploiting the job seekers.  They were driven to the doors of unscrupulous contractors for pittance of wages.  What we would like to bring to the notice of the Commission is that the existence of a large array of personnel employed by the Government through contractors and other methods in violation of the laws of the land, whose number is invisible in the statistical data, we have reproduced in this chapter.  Though reprehensible, it is a fact that there had been a concerted effort on the part of the Government to push a major segment of the governmental functions  into informal sector where employment need not be in consonance with the existing rules and regulations.  
We fervently hope that the Commission will be able to collect the data of such informal employment by each department;  data of the functions outsourced;  and the expenditure incurred thereon to get a fair view of the number of persons actually employed by the Government of India in carrying out its day to day activities.  
From the figures depicted in Table 2.3, it could be seen that Railways continue to be the biggest employer engaging the largest number of Government employees.  As on 1.3.2012 Railways had on their rolls, 1305700 persons, of which 1288400 are Group C employees.  Ministry of Home Affairs, under whom the para-military forces function, has taken the second position with 830276 persons employed as on 1.3.2012.  They have pushed the Defence Ministry to third position.  During the period between 1995-96 and 2011-12, unlike in many other organization, there had been no abolition of posts in para-military services.  In fact there had been a constant increase in their number.  In the year 1995-96, the Ministry of Home Affairs had 5.7 lakh employees.  As on 1.3.2012 it rose to 9.3 lakhs.  
Defence civilian employees number about 368594 with a percentage share of 11.95.  Postal employees are 211107 (6.84%), Revenue 98787 (3.2%) and others 270066 (8.76%).  These figures clearly indicate that large majority of Central Government employees  (88%) are either industrial or operational staff.  Hardly 10% constitute 
the administrative, technical, professional and clerical staff.  Vast majority of the employees is deployed in those organizations providing goods and services.  The general impression that the wage bill of Central Government is for administrative purposes is , therefore,  ill-covered.    
Woman Employees   
As per Table No.2.4, of the total number of regular employees as on 31.3.2009 (for which the figures are available) the number of woman employees were 311002, i.e., 10.04%.  Railways have 28.66% with reference to total woman employees and just 6.43% with reference to railway workers.  The respective figures for Communication Ministry is 11.10 and 15.78 for Defence civilians, 12.66 and 10.79 and in the case of others 47.58 and 13.11. 
The largest number of employees as on 31.3.2009 was in the Grade Pay bracket of 2400 and  2800.  802194 persons (25.89%) were  either with Grade Pay of Rs. 2400 or Rs.2800.  Location-wise, largest concentration of Central Government employees was in Delhi, i.e., 203051 (6.55%) due to the fact that all Central Ministry headquarters are located at Delhi. 
Table No. 2.7 reveals the declining trend of regular employment in Central Government.  In 1990, as per the census of Central Government Employees prepared by DGET the number of regular employees was 37.74 which got reduced to 30.99 in 2009 (Figures are available upto 2009).  The index (Base Year 1971 = 100) has come down from 141.27 (in 1991) to 114.82 (in 2009).   The DGET has highlighted the following indicators that emerged from the census:   
1). As per the result of Census Enquiries, the total regular employment under Central Government as on 31st March, 2009 was 30.99 lakh as against 31.12 lakh on 31st March, 2008. The employment has, thus, recorded a decline of 0.42% in 2009 over 2008. 
  
(2).Employment in Ministry of Railways was the highest (44.74%) followed by the Ministry of Home Affairs (24.14%), Defence civilian (11.77%), Communications & IT (7.06%) and Finance (3.49%). Other Ministries/Departments collectively shared the rest of 9% of the total Central Government regular employment.   
(3).Out of 30.99 lakh regular employees, 3.11 lakh were women. The proportion of women in the total employment is almost static, around 10% in the year 2009, 2008 and 2006.   
  
(4).About 95% of regular Central Government employees were Non-Gazetted. The overall ratio of Gazetted to Non-Gazetted employees was 1:19. In the  case of Ministry of Railways, however, this ratio was 1:114. 
  
(5) Amongst regular Central Government employees, 63% were holding Group-„C‟ posts and 26% were in Group-„D‟ posts. About 8% were holding Group-„B‟ posts whereas employees holding Group –„A‟ posts were only about 3%.   
(6).About 90% of regular Central Government employees were found in the Grade pay of Rs. Up to 1800 to Rs. 5400 which mainly consists of Group „B‟, Group „C‟ and Group „D‟ posts. Only 0.16% employees were in the highest scale i.e. HAG + Apex & Cabinet Secretary level.   
(7).Amongst regular Central Government employees, 18% were working at offices located in „X‟ class cities and 29% in „Y‟ class cities. The percentage of employees in all the cities/areas other than class X and Y cities was 53%.   
(8).Amongst States and Union Territory Administrations, the highest number of regular Central Government employees was in the State of Uttar Pradesh (9.51%) followed by Maharashtra (9.06%), West Bengal (8.54%), Delhi (6.55%), Andhra Pradesh (5.97%), Tamil Nadu (4.79%) and Madhya Pradesh (4.07%). In remaining States/U.Ts the proportion was less than 4%.  
In the chapter dealing with the state of economy of the country, we have given a Table 3.4  indicating the declining trend in the percentage share of wages and allowances with reference to both revenue receipts and expenditure.  The 3rd CPC has gone on record to state that a fall in the percentage share of wages and allowances against the revenue receipts/expenditure will provide the requisite leeway for the Government without placing any undue strain on the exchequer.  One of the oft-repeated contention is that increase in the wages of government employees would generate demand-pull inflation, which ultimately reduce their purchasing power to the levels before the said revision.  This is not only fallacious but mischievous too.  As observed by the National Commission on Labour (in the context of grant of Dearness Allowance) the inflationary pressure due to wage increase is extremely insignificant.  With every organized sector of the economy securing benefits through collective bargaining it is unethical to single out the government employees and that too on an untested hypothesis of demand pull inflation.  In fact as mentioned elsewhere in this memorandum, the central government employees had been bearing the  brunt  of the consequences of inflation.  When the avowed objective of public policy is to expand employment opportunities and raise the level of productivity, protection of existing real wages and normal rates of growth of such wages cannot be portrayed by any stretch of imagination as anti-development.

Table 2.1
Gr.A
Year
Number of sanctioned posts
Number of incumbents in position
Number of vacant posts
Percentage of vacant posts to total sanctioned posts in the group
2005-06
91414
79005
12409
13.57
2006-07
91750
78987
12763
13.91
2007-08
93360
79469
13891
14.88
2008-09
93616
80663
12953
13.84
2009-10
96504
82926
13578
14.07
2010-11
98977
82272
14503
14.65
2011-12
100869
87960
12909
12.80
B(G)
Year
Number of sanctioned posts
Number of incumbents in position
Number of vacant posts
Percentage of vacant posts to total sanctioned posts in the group
2005-06
87038
80150
6888
7.91
2006-07
83147
76093
7054
8.48
2007-08
81701
74177
7524
9.21
2008-09
88890
79446
9444
10.62
2009-10
91307
80405
10902
11.94
2010-11
86657
76479
10178
11.75
2011-12
86840
76724
10116
11.65
B(NG)
Year
Number of sanctioned posts
Number of incumbents in position
Number of vacant posts
Percentage of vacant posts to total sanctioned posts in the group
2005-06
71960
60086
11874
16.50
2006-07
73253
62500
10753
14.68
2007-08
73906
60833
13073
17.69
2008-09
102075
78626
23449
22.97
2009-10
115086
95483
19603
17.03
2010-11
142098
116249
25849
18.19
2011-12
144454
113477
30977
21.44
C(NG)
Year
Number of sanctioned posts
Number of incumbents in position
Number of vacant posts
Percentage of vacant posts to total sanctioned posts in the group
2005-06
2343081
2071299
271782
11.60
2006-07
2343359
2075497
267862
11.43
2007-08
2346621
2091793
254828
10.86
2008-09
2337494
2094655
242839
10.39
2009-10
3299398
2809545
489853
14.85
2010-11
3335797
2804736
531061
15.92
2011-12
3352380
2806369
546011
16.29
Gr.D
Year
Number of sanctioned posts
Number of incumbents in position
Number of vacant posts
Percentage of vacant posts to total sanctioned posts in the group
2005-06
932985
818445
114540
12.28
2006-07
955024
816193
138831
14.54
2007-08
966600
810560
156040
16.14
2008-09
942208
773953
168255
17.86
Unclassified
Year
Number of sanctioned posts
Number of incumbents in position
Number of vacant posts
Percentage of vacant posts to total sanctioned posts in the group
2005-06
291
289
2
0.69
2006-07
4
4
0
0

Table 2.2.


Table 2.2.
Statement showing sanctioned and working strength Group-wise in 1995-96 and 2011-12 of civilian employees of the Government of India. (including para- military force personnel)
Group A
Year
Sanctioned Strength
Working Strength
Vacant Posts
% of Vacant Posts
1995-96
89262
76891
12371
13.86
2011-12
100869
87960
12909
12.80
Group B(G)
Year
Sanctioned Strength
Working Strength
Vacant Posts
% of Vacant Posts
1995-96
95652
86694
8958
9.77
2011-12
86840
76724
10116
11.65
Group B(NG)
Year
Sanctioned Strength
Working Strength
Vacant Posts
% of Vacant Posts
1995-96
93166
87203
7963
8.55
2011-12
144454
113477
30977
21.44
Group C
Year
Sanctioned Strength
Working Strength
Vacant Posts
% of Vacant Posts
1995-96
2674836
2476146
198690
7.42
2011-12
3352380
2806369
546011
16.29
Group D
Year
Sanctioned Strength
Working Strength
Vacant Posts
% of Vacant Posts
1995-96
1237682
1142788
94894
7.66
2011-12
0
0
0
0
Unclassified
Year
Sanctioned Strength
Working Strength
Vacant Posts
% of Vacant Posts
1995-96
25334
23056
2278
9.38
2011-12
0
0
0
0
Total
Year
Sanctioned Strength
Working Strength
Vacant Posts
% of Vacant Posts
1995-96
4215932
3892778
325154
7.71
2011-12
3684543
3084530*
600013
16.28
Reduction
531389
808248
(-)274859
12.6% w.r.to s/s/95-96
20.7%w.r.to w/w of 95-96
*The difference between the sanctioned strength of 1995-96 and the men in position in 2011-12 is 1131402, which works out to 26.83% with reference to the S/S of 1995-96  Source: Brochure on Pay and allowance of Central Government Civilian Employees 2011-12 and 1995-96.

Note: During the period between 1995-96 and 2011-12 (16 years) the total number of posts abolished in all categories works out to 531389 which is 12.6% of the SS of 1995-96 and the vacancy position rose from 325154 to 600013 i.e. from 7.71% to 16.28%. The brunt of the reduction had been borne by Group B Non-gazetted and Group D.

Table 2.3
GROUP WISE & STATUS-WISE NUMBER OF CENTRAL GOVT. CIVILIAN REGULAR
EMPLOYEES AS ON 1.3.2012. IN MAJOR MINISTRIES/ DEPARTMENTS
A*
B(G)
B(NG)
C
Total
1
Railways
S/S
8748
7652
0
1560388
1576788
Percentage
8.67
8.81
0
46.55
42.8
W/S
9228
8072
0
1288400
1305700
Percentage
10.49
10.52
0
45.91
42.33
2
Home Affairs
S/S
18953
2390
42776
864815
928934
Percentage
18.79
2.75
29.61
25.8
25.21
W/S
14817
1763
32921
780775
830276
Percentage
16.85
2.3
29.01
27.82
26.92
3
Diffence(Civilian)
S/S
13773
12213
14518
443233
483737
Percentage
13.65
14.07
10.05
13.22
13.13
W/S
13185
11847
11174
332328
368594
Percentage
14.99
15.44
9.85
11.84
11.95
4
Posts
S/S
610
1155
5639
203703
2111.7
Percentage
0.61
1.33
3.9
6.08
5.73
W/S
610
1155
5639
203703
211107
Percentage
0.69
1.51
4.97
7.26
6.84
5
Revenue
S/S
8255
24144
31355
74569
138323
Percentage
8.18
27.8
21.71
2.22
3.75
W/S
5881
20885
23353
48668
98787
Percentage
6.69
27.22
20.58
9.74
3.2
6
Others
S/S
50530
39286
50166
205672
345654
Percentage
50.1
45.24
34.73
6.13
9.38
W/S
44239
33002
40390
152435
270066
Percentage
50.29
43.01
35.59
5.43
8.76
S/S total
100869
86840
144454
3352380
3684543
W/S Total
87960
76724
113477
2806369
3084530

* includes some non guzetted posts also.

Source.  Page No. 25 of Brochure on Pay and Allowances of Central Govt. Civilian employees 2011-12    (Brochure-34)  by  Pay Research Unit Department of Expenditure Minisry of Finance New Delhi

 S.No.
Ministry
Women employment as on 31st March, 2009
Number
percentage share to the Total regular employees in the respective organization.
Percentage share to the total women employees in Central Government.
1
2
3
4
5
1.
Communication & IT
34525(of218788)
15.78
11.10
2.
Railways
89128(1386123)
6.43
28.66
3.
Defence (Civilian)
39353(364718)
10.79
12.66
4.
Others
147996(1128878)
13.11
47.58
Total
311002(3098507)
10.04
100

Source: Table: 3 . Page 5. Census of Central Government Employees: DGET 

Table 2.5
Estimated distribution of regular central government employees
according to various grade pay:
As on 31st March 2009
Grade Pay in Rs.
No. Of employees
Percentage to total
Upto                    Rs. 1800
792677
25.58
Rs. 1900 and       Rs. 2000
544426
17.57
Rs. 2400 and       Rs. 2800
802194
25.89
Rs. 4200, 4600    Rs. 4800
731877
23.62
                            Rs. 5400
84266
2.72
Rs. 6600 and       Rs. 7600
71500
2.31
Rs. 8700 and       Rs. 8900
39286
1.27
Rs. 10,000           Rs.12000
27323
0.88
HAG + Apex and Cabinet Secretary
4958
0.16
Total
3098507
100.00
Table 2.6
Location wise Dispersal of employees in different class of cities
Employment in 2009
Class/ City
Number
% to total
“X” class Cities
Bangalore(UA)
31565
1.02
Chennai(UA)
68392
2.21
Delhi(UA)
203051
6.55
Greater Mumbai(UA)
101389
3.27
Hyderabad(UA)
60461
2.92
“Y”Class Cities
895570
28.90
All the Cities / Area other than Class X and Class Y Cities
1647646
53.18
Total
3098507
100.00
Table 2.7
Trend in Central Government regular employment during 1990-2009
Central Govt. employment(regular)
As on 31st March
Number (in lakh)
% increase/ decrease over previous available year
Index of employment(Base 100 in 1971)
1990
37.74
0.69
139.8
1991
83.13
1.03
141.27
1992-94
–
–
–
1995
39.82
4.43
147.54
1996-2000
–
–
–
2001
38.76
(-)2.66
143.61
2002-2003
–
–
–
2004
31.64
(-)18.37
117.23
2005
–
–
–
2006
31.16
(-) 1.53
115.45
2007
–
–
–
2008
31.12
(-) 0.13
115.30
2009
30.99
(-) 0.42
114.82
Table 2.8
Statement showing Sanctioned Posts and Men in position department-wise
Year
Railway
Defence
P&T
Other Deptts.
Home Affairs
Total Sanctioned strength
Total Men in Position
1
2
3
4
5
6
7
8
1995-96
17.1
15.9
5.9
5.1
7.5
7.2
6.0
5.4
5.7
5.4
4217932
3892778
1996-97
17.0
15.0
5.9
5.1
7.5
7.3
6.1
5.5
5.9
5.4
4218194
3894948
1997-98
15.6
14.5
5.8
5.0
8.6
7.9
6.0
5.3
5.9
5.7
4192735
3847049
1998-99
15.1
14.0
5.8
5.0
7.7
7.1
6.0
5.3
6.0
5.7
4967049
3729274
1999-00
16.8
15.8
5.8
5.0
7.7
7.1
5.3
4.7
6.1
5.8
4172031
3855316
2000-01
15.6
15.5
5.8
5.0
3.0
2.8
5.2
4.7
6.4
6.1
3606482
3426018
2001-02
16.3
15.1
4.7
3.5
2.9
2.7
5.1
4.5
7.3
6.9
3633006
3289849
2002-03
16.3
14.8
4.7
3.5
2.9
2.7
5.1
4.5
7.3
6.9
3620183
3236503
2003-04
16.2
14.5
4.7
3.5
2.3
1.9
5.2
4.5
7.2
6.9
3560433
3128134
2004-05
16.0
14.3
4.7
3.5
2.3
1.9
5.1
4.4
7.5
6.8
3559831
3088009
2005-06
15.8
14.1
4.7
3.6
2.3
2.3
4.8
4.1
7.5
6.9
3526769
3109274
2006-07
15.7
14.1
4.8
3.6
2.2
2.2
4.9
4.2
7.7
7.0
3546537
3109274
2007-08
15.7
13.9
4.8
3.6
2.2
2.1
4.9
4.0
8.0
7.4
3562188
3116832
2008-09
15.8
13.8
4.8
3.6
2.2
2.2
4.8
3.9
8.1
7.5
3564283
3107343
2009-10
15.8
13.6
4.8
3.6
2.1
2.1
4.8
3.8
8.6
7.6
3602295
3068359
2010-11
15.8
13.3
4.9
3.8
2.1
2.1
4.8
3.7
9.1
8.0
3663529
3081938
2011-12
15.8
13.1
4.8
3.7
2.1
2.1
4.8
3.7
9.3
8.3
3684543
3084530
 Figures in columns 2 to 6 are in lakhs rounded to one decimal point and actual figures given in Column 7 & 8 representing total figures. – Figures given in second line represent men in position in each year. 

SOURCE-http://ncjcmstaffside.com/wp-content/uploads/2014/06/Memorandum-to-be-submitted-by-NCJCM-Staff-Side-24.06.2014.pdf

Filed Under: 7th CENTRAL PAY COMMISSION, 7TH CPC NEWS, 7th pay commission, 7th Pay Commission for pensioners

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