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Wednesday, May 7, 2008

PSU employees' wages to revise every 5 years



NEW DELHI: Employees of state-run companies, who have often been given
a short shrift when it comes to salaries and wages, may finally be in
for some good news.

The government has allowed central public sector units to revise wages
of all non-executive employees every five years instead of 10 years.
This comes even as executive cadre employees, opting for central
dearness allowance (CDA) norms, would get a 6% hike in their DA
emoluments.

The wage revision for non-executives would cover almost 17 lakh
personnel, representing about 80% of the total workforce employed in
state-run companies.

The government has increased the amount of DA payable to executives to
47% from the existing 41%. The five-year pay revision would also
include assimilation of DA into the basic pay.

The government will bring in necessary amendments to the policy laid
down by the seventh round of wage recommendations to make the new
guidelines effective. A circular in this regard has been sent to all
the CPSEs and nodal ministries.

The department of public enterprises (DPE) has, however, asked the
ministries concerned to handle the situation individually (on a case-
to-case basis) and carefully.

"We have decided that PSUs should be allowed to revise the wages of
unionised workers every five years as 10 years is too long a time in
the fast changing circumstances," a DPE official said.

The CPSEs who want to revise the pay for their unionised employees
before 10 years will have to submit a proposal in this regard to the
nodal ministry, describing the reason for such revision.

The ministry may also advise the management of CPSEs to explain to the
associations or trade unions concerned about their official position
on the issue. The new guidelines would help the unions in demanding a
comparative pay to the executive workers once the recommendations of
the second pay revision committee are out.

The committee is likely to give its recommendations by the end of this
month. The pay committee for CPSEs does not give recommendations for
employees below the executive cadre.


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