A NOTE ON WAGE REVISION FOR NON-EXECUTIVES

Introduction
Some forces who have no concern for the interest of the non-executives are making a big
propaganda that BSNL Employees Union is un-necessarily delaying the settlement of the wage
revision for non-executives. They want to hide certain facts from the employees and thus gain in
their propaganda against the recognised union. Hence it is necessary to bring to the notice of the
BSNL employees certain facts regarding the wage revision process for non-executive employees
in CPSEs(Central Public Sector Enterprises).

Central Govt. Employees Wage Revision

For the Central Government staff, whether Gazetted or Non-Gazetted, the wage revision is on the
basis of the recommendations of the Pay Commission. So far six pay commissions were appointed
on wage revision for Central Government Employees. The sixth pay commission’s report was
recently implemented, with revision of pay scales from 1-1-2006. The orders for implementing
the sixth pay commission report were issued by the Government on 29-8-2008, i.e two years
and eight months after wage revision was due. No interim relief was paid to Central
Government employees.

Wage Revision process in CPSEs

In CPSEs, (Central Public Sector Enterprises) the wage revision process is entirely different from
that of the CGEs. The wage revision of the Executives in all CPSEs is being done on the basis of
the recommendation s of Pay Revision Committee and Government’s orders on it. But in the case
of non-executives, it is being done through negotiation and agreement between the management
and recognised union, in each CPSE, based on the guidelines issued by the Government.
Therefore, unlike in Central Government, the wage revision in CPSEs will be implemented at
different times for the executives and non-executives and not simultaneously. But the date of
implementation of the wage revision will be the same for executives and non-executives. So far
six wage revisions have taken place for the non-executives in CPSEs. The sixth wage revision
has come into effect from 1-1-1997. The agreements for non-executives for the sixth wage
revision due from 1-1-1997 were signed in the year 2000 only. In ONGC, it was signed on 12-
7-2000, in SAIL it was signed on 23-7-2001 etc.

Anti-Worker Guidelines
The seventh wage revision is due from 1-1-2007, both for executives and non-executives. The
Government has issued certain guidelines to the CPSE managements for wage negotiation for the
sevent wage revision due from 1-1-2007. These guidelines were issued in November 2006, vide

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DPE(Department of Public Sector Enterprises) circular 2(7)/2006-DPE(WC) –GL-XIV dated 9th
November, 2006. These guidelines were anti-worker in nature.

Review of past experience

The co-ordination committee of the unions of various public sector enterprises, known as CPSTU,
[Committee of Public Sector Trade Unions] in which BSNL Employees Union is a prominent
partner, has revied these guidelines and formed a strategy. The CPSTU found that in the sixth
wage revision which was effected from 1-1-1997, the executives were given more wage rise and
the non-executives were given less wage rise and discriminated. Prior to sixth wage revision, the
ratio between the minimum pay of non-executive (Group D minimum pay) and the maximum pay
of the executive (maximum pay of CMD) was 1:4.7. But this ratio was changed to 1:7 i.e
executives were favored more, in the sixth wage revision. The CPSTU has decided to fight against
this discrimination in the seventh wage revision due from 1-1-2007. But how to do this? If non-
executive wage agreements were signed first with some wage increase and thereafter, executives
were granted high increase in wages, nothing can be done in such a situation since the wage
agreement is already signed. Therefore the CPSTU has consciously decided to wait until the wage
revision of the executives and thereafter only negotiate and sign the agreement on the basis of fair
comparison with the wage revision of the executives.

The CPSTU has taken another important decision. Until the sixth wage revision, the wages in
CPSEs were revised every five years. Thus from 1971 to 1996, in twenty five years, five wage
revisions have taken place. But during the sixth wage revision, due to the conditionalities imposed
by World Bank on the Government, the CPSTU has decided to reverse this and fight for five year
periodicity for wage revision.

Struggles on Wage Revision

On the basis of the above said considerations and other considerations, the CPSTU has decided to
organise struggle on the following demands:

a) No disinvestment/privatization in PSUs

b) The tenure of wage agreement should be 5 years instead of 10 years

c) The relativity between the wages of non-executives and executives should be improved
in favour of the non-executives and at least the relativity of 1:4.7 existing before 1-1-
1997 should be restored

d) Annual increment should be granted as percentage of basic pay, on cumulative basis

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 e) Merger of 50% D.A w.e.f 1-4-2004(This is for PSUs following CDA scales pattern. In
PSUs like BSNL etc following IDA Scales, it is to be from 1-1-2005 when the D IDA
has reached 50%)

f) Financial and policy support should be given by the Government for reviving sick PSUs
and the employees of these PSUs should be given wage revision.

g) Wage revision for contract workers, and their wage should be at least equal to the
minimum wage and benefits of the regular employee.

h) Filling up of all vacancies in non-executive cadres through recruitment of permanent

employees.

Accordingly several struggles were organised by CPSTU on these demands. BSNL employees
Union has mobilised BSNL employees in all these struggles. Finally, strike notice was given by
all the affiliates of CPSTU for one day strike on 7-5-2008. On the eve of the proposed one day
strike on 7-5-2008, a meeting was held between the Prime Minister and the CPSTU delegation on
28-4-2008. Com Sitaram Yechury M.P and Polit Buteau member of CPI(M) accompanied the
CPSTU delegation. The proposed strike on 7-5-2008 was deferred based on the assurance of the
Prime Minister in this meeting.

Achievements on Wage Revision

Based on the assurance of the Prime Minister in the above said meeting, the DPE has released
notification on 1-1-2008(DPE OM No. 2(7)/06-DPE (WC) – GL VI dated 1st May 2008) notifying
that PSU managements can agree for five year tenure wage agreement, with the approval of the
concerned minister. Thus through the common struggle of the PSUs workers under the banner of
CPSTU and with the support of the left parties, the anti-worker condition of 10 years tenure for
wage agreement was defeated.

Due to the struggles under the banner of CPSTU, orders for merger of 50% DA w.e.f.1-1-2007
were issued by the Government. But the BSNL management tried not to implement it in the name
of serious decrease in the profit of BSNL. Through the united struggle of executives and non-
executives in BSNL under the banner of Joint Forum, we could compel the management to issue
orders for implementing the DA merger.

Besides, the concept of increment as percentage of basic pay on cumulative basis has become a
reality due to the struggles of CPSTU in which BSNLEU is a proud partner. For CGEs and for
CPSE executives, this was already implemented. (Increment as percentage on basic pay
cumulatively means if the basic pay is Rs 20,000/-, and the increment rate is 3%, in the first year
the increment will be 600 and the basic pay will be 20600/-. Next year the increment will be 3%
on 20,600 and so on.)
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Thus before signing wage revision agreement, we have achieved two favorable conditions:-1) the
possiblity of 5 year periodicity instead of 10 year periodicity for wage revision, so that after wage
revision from 1-1-2007, another wage revision will become due w.e.f 1-1-2012 instead of 1-1-
2017, and 2) increment as percentage on basic pay cumulatively. Besides, we have achieved 50%
IDA merger also.

Strategy followed by BSNLEU

As per the strategy decided by CPSTU, BSNL Employees Union has waited until the 2nd Pay
Revision Committee has submitted its report on the wage revision of executives in CPSEs. As per
the recommendations of this Committee submitted in May 2008, the minimum pay of CMD has to
be increased from 27500 to Rs 1,00,000/-. Comparing this, we have submitted memorandum on
our wage revision demands to the CMD in August 2008 demanding increasing the minimum pay
of Group D from Rs 4000/- to 14000/- and increase in all other scales accordingly. The demands
on Pay, Allowances, Perks, Pensionary benefits etc were submitted in this memorandum.

The Government has adopted the report of the executives’ pay revision committee in November
2008 with certain modifications. Accordingly, orders were issued by DPE on implementation of
the revised pay scales for executives in CPSEs w.e.f 1-1-2007, on 26-11-2008. In this the
Government has directed the PSEs to implement this revision in full only when the annual
additional expenditure on account of pay revision for the executives is not more than 20% of the
profit before tax for the company in the year 2007-08. In case it is more than 20% of the profit,
the wage revision package has to be implemented partly. Each PSE has to examine this and send
proposal for the approval of its administrative department/ministry. After the approval of the
administrative department, the revised pay scales for executives will come into effect from 1-1-
2007 and the revised allowances will come into effect from the date of approval of the
administrative department.

Wage Revision of BSNL Executives

Accordingly, BSNL has considered the DPE circular on pay revision for executives and found that
implementation of full package will not result in additional expenditure more than 20% of profit
before tax for the year 2007-08 and hence sent proposal to DoT for implementing the full
package. The DoT has approved the same and issued its approval order on 27-2-2009. In turn
BSNL has issued orders on 5-3-09 revising the wages of BSNL executives. The following are the
important points in this order:

1. The pay scale of CMD was revised from 27750-750-31500 to 80000-1,25,000.

2. The revised IDA scales of JTO and SDE were tentatively fixed as 16400-40500 and
20600-46500 respectively, subject to revision of their pay scales further.

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 3. Pay fixation in the revised scale on 1-1-2007 will be done by adding 30% of the
emoluments(pay on 1-1-2007+68.8% DA on it) to the emoluments on 1-1-2007 and
rounding the amount to the next ten.

4. Increment of 3% on revised basic pay will be given cumulatively.

5. Revised pay scales will come into effect from 1-1-2007.

6. HRA will be paid @30% for stations with 50lakhs or more population, @20% for
stations having population from 5 to 50 lakhs and @ 10% in stations having population
below 5 lakhs, on the revised pay w.e.f 27-2-2009.

7. All other allowances and perks will remain unchanged until further orders.

8. Forty percent of the arrears on account of wage revision as above will be paid in 2008-
09 and remaining 60% in 2009-10.

9. The periodicity of wage revision was not specifically mentioned. It was left open. (So
that if non-executives achieved 5 year periodicity for wage revision, the same can be
implemented for executives.)

Wage Negotiations started for Non-Executives

Since the executives wage revision is over and since the Central Government Employees wage
revision is over, now we can go ahead with wage revision negotiations in full steam, as per the
decision of the CPSTU. We can bargain in the negotiations keeping in view the wage revision of
CGEs and Executives and can achieve a better agreement on this basis. Therefore we have
compelled the management to continue the wage negotiations until agreement is reached. The
nexe wage negotiation committee meeting will be held on 30-3-2009 at 2.30 pm and it will be
held continuously until agreement is reached. Meanwhile the sub-committee on wage
revision(consisting of management and union representatives) has visited the head quarters of
SAIL, GAIL and NTPC in Delhi and studied the existing pay scales, allowances, perks, and
pensionary benefits available there. The sub-committee has also obtained and studied the recent
wage revision agreement signed in Coal India Limited. On the basis of this study, the sub-
committee has submitted its report to the wage revision committee for utilising it as an input in
the negotiations.

The sub-committee has found that in SAIL, GAIL and NTPC which it has visited, no wage
revision agreement is signed so far for non-executives. In SAIL, the wage negotiations have
atarted recently. In GAIL, even though management has asked, union has not submitted
memorandum on wage revision, since wage revision of executives in it is not yet implemented. In
all the CPSEs (which are more than 200) wage revision for non-executives has taken place no

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where except in Coal India limited.( In Coal India Limited, the wage revision was due from 1-7-
2006 and the agreement was signed on 24-1-2009, with five year periodicity for wage revision).

All the above facts prove that BSNL Employees Union is following the correct path regarding
wage revision and doing its level best, as a recognised union, to achieve a better wage agreement
for non-executives. Along with wage revision for regular employees, the BSNL Employees Union
is also demanding and fighting for equal wages for Contract labour and casual labor on par with
minimum of regular employees.

Since it may take one or two months for conclusion of wage agreement and one or two months
thereafter for approval of wage agreement by DoT, and since executives were already paid 40% of
the wage revision arrears, we are demanding for payment of interim relief(Fifty percent of basic
pay or Rs 3000/- whichever is more) w.e.f 1-1-2007.

The wage negotiations starting on 30-3-2009 will be continued until agreement is reached. The
CHQ will inform the developments in the wage negotiations through CHQ web-site. All
Circle/District and Branch Secretaries are requested to daily see the CHQ website and inform the
employees accordingly on wage negotiations.