MEMORANDUM OF UNDERSTANDINGOMOL) ARRIVED AT Page 1 of 12 BETWEEN THE MANAGEMENT OF FOOD CORPORATION OF INDIA AND BHARTIVA KHADYA NIGAM KARAMCHARI SANG FCLON REVISED WAGE STRUCTURE al 12: 14 RECOGNISED UNION AT ALL INDIA LEV IN PREAMBLE WHEREAS the existing wage structure of Category III & IV employees of the Corporation in Industrial Dearness Allowance pattern was revised as per Memorandum of Settlement signed on 01.04.2010 for the period 01.01.2007 to 31.12.2016. WHEREAS the Bhartiya Khadya Nigam Karamehari Sangh (BKNK Sangh) submitted their Charter of Demands relating to revision of wage w.e.f, 01.01.2017. allowances and other benefits vide its letters no. BKNKS/GS/NEC/2018 dated 30.01.2018 and 01.08.2018, letter no, BENKS/NEC/ GS/ 2018 dated 23.07.2018. WHEREAS in furtherance of the objective to arrive at a mutually agreed revised wage structure w.e.f. 01.01.2017 based on the aforesaid Charters of Demands. Bipartite negotiations with the Nationally recognized Union of Category III & IV employees and the Management were commenced on 23" July, 2018 towards achieving a complete wage settlement and to come to an amicable understanding in these matters. The last wage revision being operative for a period of 10 years i.e. from 01.01.2007 to 31.12.2016, this Memorandum of Understanding (MOU) for wage settlement is now done for a period of 10 years w.e.f, 01.01.2017 to 31.12,2026. as per the Department of Public Enterprises (DPE) guidelines issued vide OM no. W-02/0015/2016-DPE(WC)-GL- XXIV/17 dated 24.11.2017 and MOCAF&PD, New Delhi letter no, 17012/5/2017-FC-I!t dated 28.06.2018 regarding wage policy for the 8” Round of Wage Negotiations for workmen in Central Public Sector Enterprises (CPSES) NOW as a result of the protracted discussions held during various rounds of negotiations, a Memorandum of Understanding (MOU) has been reached in full and final settlement of various demands contained in respective Charter of Demands. The term of which are set out in the following paragraphs:- Contd... Jat She Tiles as ( de 1% Kee? my Be? Cc “\\ . pactsPage 2 of 12 TERMS OF UNDERSTANDING 2. APPLICABILITY This MOU shall cover all regular Category IIL & IV employees on IDA pay scales. 2.1, PERIOD OF OPERATION The MOU shall cover the period effective from 01.01.2017 and operate till 31.12.2026 (10years) LES OF PAY The revised scales of pay effective from 01.01.2017 corresponding to the existing (pre- revised) pay scales are as und Scale Existing scales (Rs.) Revised scales (Rs.) No. S- 8100-18070 ae 23300 - 64000 S-2 8300-19710 a 24000 - 70000 8-3 8500-20580 24700-72000 S-4 8900-22100 26200 - 76300 S-5 9300-22940 28200 - 79200 86 {9900-25530 30500 - 88100 S-7 11100-29950 34000 - 103400. S-8 13300-31050 36000 - 107200 a Sipe cz Le * — Ber et? (6 > Contd. tn Sheri reo \. fees of aod Abn < Fa Lae! gin & Owacm 7 ssaPage 3 of 12 3. METHODOLOGY FOR PAY FIXATION 3.L.a. ‘To arrive at the revised Basie Pay(BP) as on 11.2017. fitment methodology shall be as. under: A B e 1 D | Revised BP as O1.01,.2017)° BasicPay + | | Industrial Dearness_ 115% of | | Agprepate amount | Stagnation + Allowance (IDA) @ 119.5% | (A+B) | = | rounded off to the Increment (s) as || as applicable on 1.12017 +, || next Rs.10/-, | on 31.12.2016 (under the IDA pattern | | (Personal Pay computation methodology | /Special Pay not |_| linked to All India 1 | | tobe included) | Cumulative Price Index | (AICPI) 200) 00 series} | eT case revised BP as on 01.01.2017 arrived so is less than the minimum of pay scale, Pay will be fixed at the minimum of the revised pay scale. 3.1.b. Bunching of Pay, if applicable, shall be dealt as per the instruction issued by DPE vide Annexure III(A) of OM No. W-02/0028/2017-DPE(WC)-GL-XIII/17 dated 03.08.2017 as amended from time to time. 3.2. After fixation of pay as per clause 3.1, the employees will be eligible for annual increment in revised scale of pay as on 01.01.2017 @ 3% of revised basic pay and will be rounded off to the next multiple of Rs.10. y be The employees who have joined or shall be joining the services on or after 01.01.2017 will be placed in the revised pay scales at the minimum of the scale from the date of their joining, Such employees will not be eligible for the fitment benefit under the pay revision 4. ANNUAL INCREMENT ‘The annual increment would be @3% of the revised Basic Pay rounded off to the next multiple of Rs. 10/-w.e.f. 01.01.2017. Contd... - a Grey —~ Sy Fee C abs. Bier ale ( Bor (ut Day? eet, Sep? prrebaond Caled CTAC HIT CHM Dvash & enedcAI Page 4 0f 12 IN OF PAY ON PROMOTION ON OR AFTER 01.01.2017 One notional inereme: qual to the 3% of the basic pay being drawn by the emple the pay scale before such promotion, would be granted and rounded off to the next multiple of Rs 10/- sin INDUSTRIAL DEARNESS ALLOWANCE (IDA) IDA as on 01.01.2017 will be Nil with link point of All India Consumer Price Index(AICPI) 2001=100, which is 277.33. The IDA payable w.e.f, 01.04.2017 onwards shall be as per the IDA rates circulated by DPE from time to time, Whenever DPE issues instructions for merger of IDA into Basic Pay, the same shall also be applicable to category II & IV employees in accordance with the guidelines issued by DPE. HOUSE RENT ALLOWANCE (HRA) The HRA on the revised scales of pay will be payable from 21.06.2018 at the rates notified by the Govt. of India from time to time. The present rates of HRA as notified by the Govt. of India are as under:~ CLASSIFICATION OF CITIES RATE OF HRA. X-Class (Population of 50 Lakh and above) 24% of Basic Pay 'Y-Class (Population of 5 Lakh to 50 Lakh) 16% of Basic Pay Z-Class (Population below 5 Lakh) 8% of Basic Pas Rate of HRA will be revised to 27%, 18% & 9% for X, Y and Z class cities respectively when IDA crosses 25% and further revised to 30%, 20% and 10% when IDA crosses 50%. LEASED ACCOMMODATION ‘The Union demanded for lease facility as per the formula applicable to Category 1 & Il employees. After protracted discussions, it is agreed to review the issue after 3 years from the date of signing of Memorandum of Understanding (MOU). Contd... Ogle Zz ars ee aE (ye aes) = ae ex (i ee. 70d be bar? dediog fo ve pce Kis hanPage 5 of 12 9 LOCATION BASED COMPENSATORY ALLOW AN Location based Compensatory Allowances shuill be paid at the rates and other terms sind conditions notified by: DPE vide O.M. No, W-020028 2017-DPEQWC)-GL-XVII7 dated 07.09.2017 as amended from time to time trom 21.06.2018 10, PERKS AND ALLOWANCES 10.1 For perks and allowances, cafeteria approach subject to ceiling of 35% of revised basic pay will be adopted allowing Category III & IV employees to choose from a set or cafeteria of perks and allowances formulated after approval of fringe benefits. (01 in lieu of existing allowances and 10.2. The employees will have choice of allowances/perks upto 32% of Basi¢ Pay under the cafeteria in addition to LTC and PLI. 10.3 Out of overall ceiling of 35%, the ITC component shall be kept at 1% of basic pay and the present LTC scheme shall continue to be regulated as per the current provisions as amended from time to time. 10.4 The Productivity Linked Incentive scheme will also continue and the maximum incentive payable under the scheme would be 2% of basic pay of employees subject to term and conditions of PLI scheme. However, BKNK Sangh has demanded that PLI to be kept outside the ceiling of Perks and allowances for which court case has been filed and hence. keeping the existing scheme of PLI outside the ceiling of perks and allowances will be reviewed depending upon the final outcome of court case. 10.5 The perks and allowances shall be payable w.c.f.01.01.2017. 10.6 As regards FCI owned accommodation provided to the employees. the Corporation’ would bear the Income Tax liability on the “non-monetary perquisite” of which $0% shall be loaded within the ceiling of 32% of Basic Pay on perks and allowances. This benefit shall be payable w.e.f 21.06.2018, Contd... haya ose Be |b exe ye aan Gas (ee tem) es Sy ariel cies) EN or alPage 6 of 12 «1. OVERTIME ALLOWANCE Board of Directors of FCI in its 386TH -BD Meeting dated 21.05.2018 had approved for Keeping the payment of OTA outside the limit of Perks and Allowences. Further. in compliance to Department of Food letter No. 16-1/2018-FC-I dated 01.01.2019 and protracted discussions during wage negotiation, it is agreed for keeping payment of OTA on revised Pay scale outside the ceiling of Perks and allowances. The OTA payment from 01.01.2017 to before the date of signing of Memorandum of Settlement (MOS) shall be made on pre revised Pay scale and no arrear is payable. Further, OTA payment shall continue to be regulated as per the existing provisions as amended from time to time 12. REIMBURSEMENT OF MEDICAL EXPENSES ‘The Union strongly demanded for reverting back to the earlier system of reimbursement of actual medical expenses. Presently, the fixed amount of quarterly payment of Rs.2250/- per quarter is being paid. In addition, Reimbursement of medical expenses for prolonged/chronic diseases/lab test and the indoor treatment is paid over and above the said limit, as per the existing scheme of the Corporation However, afier protracted discussions it is agreed that existing system of reimbursement of medical expenses shall be dispensed and reimbursement of actual medical expenses as allowed to Category I and II shall be allowed from the date of the signing of Memorandum of Settlement (MOS). The terms and conditions of reimbursement shall be applicable as per instructions issued by the Corporation from time to time. Further, the reimbursement of Medical expenses shall be reviewed after 3 years from the date of signing of Memorandum of Understanding (MOU) by the Management in consultation with nationally recognized Union. 13. SUPERANNUATION BENEFITS 13.1 The retirement benefits shall be allowed as per DPE instructions from time to time. Corporation shall continue to contribute up to 30% of Basic Pay plus DA towards Contributory provident Fund, Gratuity, Post-Retirement Medical Scheme and Pension (DCPS) of employees. Cont Bob) gegen ie a Ane re Cee ta VL Y ORT, \ bet ey CTeait Senn ovaud ( At foPage 7 of 12 13.2. The Ceiling of gratuity stands raised from Rs.10 Lakhs to Rs. 20 Lakhs w.e.f. 01.01.2017. Besides the ceiling of gratuity shall increase by 25% whenever IDA rises by 50%. The income tax exemption shall be allowed to employees on or after 29.03.2018. The existing requirement of superannuation and minimum 15 years of service has been dispensed with for the pension Scheme w.e.f. 01.01.2017, 13.4 The existing Post-Retitement Medical Benefits will continue to be linked to requirement of superannuation and minimum of 15 years of continuous service for employees. 13.5 In case of food transferees who have opted for retirement benefits of the Central Govt. servants under Section 12(A) of Food Corporation Act, 1964, the retirement benefits shall be determined /allowed as per the Act 14. EXISTING ALLOWANCES: 14.1 All existing allowances/perquisite not specifically covered under this MOU ceases to exist with effect from 01.01.2017. Further, no new allowance or perquisite or benefit, not already applicable except the allowance or perquisite or benefit allowed by GOI and circulated by DPE, will be allowed during the period of operation of this MOU. 14.2. Only allowances/perquisite i.e. Overtime allowance, location based compensatory allowances are outside the purview of 35% ceiling of Perks and allowances. 15. TRANSFER GRANT ‘Transfer benefit viz. consolidated transfer grant and packing charges shall be revised from date of signing of MOS.:- ‘Scale No. Rate as per last revision _| Revised ‘Transfer | Transfer Outside | Transfer Transfer Outside Within | Region Within Region | Region Region S-1t0S-2 [4000 | One month Basic | 8800 80% of last Pay month’s Basic Pay $310 8-5 [6000 | OnemonthBasie | 13200 80% of last Pa month's Basic Pay_| 8-6 8000 [One month Basic | 17600 80% of last Pay month's Basic Pa $-7&S-8 [10000 | One month Basic | 22000 80% of last Pay month's Basic Pay | © Fixed Transfer Grant shall increase by 25% every time whenever the IDA payable on the revised pay structure goes up by 50%. Sie ee - ay ite! eee C5065 ST Co EM OVE EM J16. 16.1 16.2 16.3 16.4 17. 171 17.2 173 17.4 17.5 Page 8 of 12 PRODUCTIVITY IMPROVEMENT AND COST EFFECTIVENESS The Union has agreed to extend full support to all initiatives taken by management for improving efficiency. enforcing strict discipline and punctuality The Union has also agreed to reduce wa ¢ 10 improve utilization of all human. material and technological resources for higher productivity and to make all out efforts to, achieve the targets set under MOU with the Ministry of CAF&PD for improving the efficiency and productivity Ithas also been decided that re-deployment, rotation and re-training consistent with skills and technology will be adopted. wherever necessary, especially in the context of technological changes. The Family Planning Incentive for small family norms shall be discontinued from 01.01.2017. GENERAL The fixed Interim Relief amount paid to the Category Ill & IV employees at the rate of 10% of the Basic pay as on 01.01.2017(pre-revised scale) subject to a minimum of Rs 1000/- per month shall be adjusted against the pay revision arrears payable under 1 MOU. Arrears on account of Wage revision shall be paid after adjusting /recovering the amount already paid at pre-revised Pay Scale The payment of arrears shall be subject to deduction of Income tax, recoveries towards ‘on account of CPF, Pension (DCPS) etc. as per Rules. Anomalies, if any, will be considered and addressed by the Managemen; suitably. ‘The management has no right to alter any clause of this MOU unilaterally without agreement with nationally recognized Union Contd.Page 9 of 12 17.6 his MOL shall be in fowe aan! binding on the p suid shall alse continue to remai in force until resis 17.7 This MOU is subject to the approval of the Board of Directors and the Gost, of India Agreeing to the above. signed by both the panies at New Delhi on this day 1" of February 2019. For and on behalf of For and on behalf of Food Corporation of India Bhartiya Khadya Nigam Karamchari Sangh js Le? eyes ybasi, IAS) oi Executive Director (Personnel) President (NEC) tpt ech Dy ne eshalget9 (Ai (U.S. Duggal ) Executite Director (Finance) Generéll Secretary(NEC) rn phe ear 3 ae ta Sharma) DM. Dinit) Chief General Manager (Finance) Sr. Vice President (NEC) ene (Manjeet Singh) jeneral Manager (IR-S) Sr. Addl. Genil. Secretary (NEC) We (Deyes* Kumar Yadav) (Bhabesh Kumar Saha) Gerheral Manager (PE) Secretary (Co-ord), NEC ES tare iy. on CHRRASH KUMAP) ci Dag ernol Megs (Ef) (Ran Pal Bike cae ‘Addl. Gent. Secy.(NEC) gohege (Ajit Kumar Dubey) Vice President ( NEC) He Kao Mots i, |