INDIAN OIL EMPLOYEES’ UNION (SR) 6, KATCHALEESWARAR STREET, CHENNAI - 600 001 & 139, NUNGAMBAKKAM HIGH ROAD, CHENNAI - 600 034 IOEU: CIR-1/2009 20-1-2009 Dear Comrade, NEW YEAR’S MESSAGE Year 2009 is dawn with the fond hope that this year shall bring cheer to the Nation as a whole. This we say, since, in the year 2008, the whole World had witnessed a global recession and economic crisis, which had its impact on our Nation. This trend had slowed down the Nation’s GDP growth from 8%, witnessed highest inflation rate of 12% besides rise in prices of all commodities. In this context, you should note, inspite of two-stimulus package made by the Government of India, recession continued both in export and domestic market. Adding fuel to the fire, the price of crude had climbed to an all time high of 142 US Dollars per barrel during July, which had now dropped to 37 US Dollars during January 2009.-You were well aware, consequent to the high price of crude and the policy decision of the Government not to allow rise in price of petrol, diesel, LPG & kerosene in relation to the crude price, it was projected that the under- recoveries of the Oil PSEs shall be around Rs. 2,45,000/- crores for the year 2008-09. This situation is now changed in a big way due to the sustained drop in the price of crude since September, which is now priced around 37 US Dollars per barrel. However, we should note, the public sector oil companies may not close the year 2008-09 with profit, due to the thinning refinery margins, high inventory costs and huge interest costs on large borrowings during the year. In the meanwhile, the govt., in all certainty, shall reduce the price of petrol, diesel besides domestic LPG. While the whole Nation is facing economic meltdown, we should note with concern the growing trend of terrorism, which we have witnessed on the night of 26th November in Mumbai City, which have led to the loss of nearly 200 lives besides injuries on three hundred innocent people. At the dawn of the New Year, we had sadly seen the biggest Corporate fraud - above 7000 crores of “Satyam”, which was awarded with “Golden Peacock Global Award” few months back for the best governance of the Corporate sector. It is in the first week of the New Year, we have witnessed the petroleum sector Officers’ historic strike, which has totally disrupted the supply of petroleum products throughout the country for three days. In the above said scenerio, we welcome the New Year, which we are sure, our Nation would overcome ail the ills of the economy and, at the end, would bring cheers to Nation as a whole. Officers’ strike - an observation: At the outset, we congratulate the entire officers’ community for their exhibition of unflinching loyalty to the call of “indefinite strike” action from 7th January 2009. Indeed, the strike action by the officers of the petroleum sector is unparallel in the annals of the industry, which has resulted in the total disruption of the supply of petroleum products throughout the country, within the shortest span of 48 hrs. Atthe same time, we should remember that this impact was possible, since the Chief Managers manning the Terminals, Installations, LPG Plants etc., were the participants of the strike, which had gained added strength with the active participation of all the subordinates of the Chief Managers such as A, B, C & D grade officers. This apart, many of the Dy.General Managers and others, who were deputed to monitor the activities of the Units, e only mute spectators without displeasing the striking officers. As far as the workmen and the we have remained in duty without oppc impetus and added the impa ct workmen are concerned, you are ing the officers’ strike, which ha ware, given You are aware, during the days o: as T.V. have condemned the Press, advocated total privatization of the Petroieum Indus: of the people at large, the Truck operators were the movements of essential goods. It is at this stage, the Government of India and the Management of Oil Companies, who were making repeated appeals passionately, turned their anger and began their threat of invoking ESMA and also preparing to deploy Army to break the strike. The Management of the Oil Companies, who were felt humiliated since their appeals not been positively reacted by the striking offi even after the judiciary’s “stay” on strikes, began its offensive against them by way of unilateral dismissal besides suspension of the striking leaders. In this way, the strike was called off forcibly without any solution to the grievances of the striking officers of the Petroleum Industry. Why only blame Officers’ Assoc’ ? You should note, the Oil sector Officers’ Association is functioning very actively from the middle of 90s. You would he surprised to note, it was only the Petroleum Ministry that had given due recognition to the Officers’ Association and, on many occasions, this Association was allowed to have direct discussion with the Petroleum Ministry bypassing the respective Oil Company Managements. You may kindly note, when the First Pay Revision Committee for PSE Officers under the Chairmanship of Justice Mohan had submitted its recommendations to the Government, it was the Officers’ community which obtained an assurance from the then Petroleum Minister that the understanding shall remain only for a period of 5 ; t, in to-day’s context, the Oil Sector Officers’ Association demands of 5 years period, stem from the above said assurance. In a similar way, we have seen that the Petroleum Sector Officers, because of their constant discussions only with Petroleum Ministry have realized many concessions and privileges. In the si r fashion, when the Justice Jagannadha Rao Commit recommendations for the Second Pay Revision for PSE Officers got released, the Officers’ Association, having disappointed with the recommendations, rejected same and started dialogues with the Petroleum Minister for consid: on of thei: specific demands exclusively for the Petroleum Sector. Further, this Association had a meeting with Mr. Santosh Mohan Dev, Minister in charge of DPE in the presence of the Petroleum Minister and, in this meeting, both the Ministersappeared to have given positive hopes on their specific demands before the Cabinet Mecting held on 20th Nov., ond it is at this stage, the Cil Sector Officers’ defer their strike action, Association had agreed t ao Committee’s x icum Ministry, « on the officers’ specific demands through the Home Minister, Shri. P.Chidambaram. inal decision on Ju once again tf Pei fh had given hopes, having failed with deep disappointment to the Officers’ community, the strike action took place with a clear one-month notice. In the above said situation, we strongly feel, the Government of India instead of condemning the strike action should do self introspection, as to the cause of the striics. History of Wage Settlements in the Public Sector: iy 70's, the wage settlements in the Public Sector lated and monitored by the D y E) for the workr liberalization, privat a Committee exclusive Une with the Pay Commission, under the Chairmanship of Justice Mohan (Retired preme Court Judge). This Committee, taking into consideration various aspects in the wale of the new economic policy, made its recommendations for ull neutralization for erosion of wages due to rise in prices, besides many 's which include profit sharing bonus in the form of increased productivity which was allewed to be in force tili 31-12-2006, In the wake of the constitution of Sixth Pay Commission for the entire Central Government Employees, the government constituted the Second Pay Revision Committee head Rao {Retired Judge of the Supreme Court) exclusiv nity of the public sector enterprises w a specific deration the new tasks before the PSUs in the wake of liberalization and aiso to work in tandem with the recommendations of the Sixth Pay Commission, This Second Pay Revision Committee had submitted its recommendations on 30-5-2008. In this context, you should note, the public sector enterprises which are numbering more than 240 are divided into four schedules, such as A, B, C & D, depending on their c ea of operation, level of business etc., Amongst the PSUs, few in “A” Schedule, as Oli Companies are called “Navaratnas” and many others are called “Mi Tr norms. ‘The “Rao Commitice” in its recommendations divided the PSUs into 5 categories instead of four the companies like Indian Oil were categorized as “A” plus and comparison to others, such as additional fitment, w scales of pay for Chairman, Director eto., esolved to ets of scale below Board levei besides uniform sius DA as on 1-1-2007. In other words, the