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

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)

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.

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.

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

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

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

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

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

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

Year	Sanctioned Strength	Working Strength	Vacant Posts	% of Vacant Posts
1995-96	89262	76891	12371	13.86
2011-12	100869	87960	12909	12.80

Year	Sanctioned Strength	Working Strength	Vacant Posts	% of Vacant Posts
1995-96	95652	86694	8958	9.77
2011-12	86840	76724	10116	11.65

Year	Sanctioned Strength	Working Strength	Vacant Posts	% of Vacant Posts
1995-96	93166	87203	7963	8.55
2011-12	144454	113477	30977	21.44

Year	Sanctioned Strength	Working Strength	Vacant Posts	% of Vacant Posts
1995-96	2674836	2476146	198690	7.42
2011-12	3352380	2806369	546011	16.29

Year	Sanctioned Strength	Working Strength	Vacant Posts	% of Vacant Posts
1995-96	1237682	1142788	94894	7.66
2011-12	0	0	0	0

Year	Sanctioned Strength	Working Strength	Vacant Posts	% of Vacant Posts
1995-96	25334	23056	2278	9.38
2011-12	0	0	0	0

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.

		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

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 

	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

	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

	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

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

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