Saturday, March 29, 2008




CHQ: Manishinath Bhawan A2/95 Rajouri Garden

New Delhi. 110027

Phlone: 25105324 Fax :     25105324


Cell phone: 9811048303



Dated:27th March.2008



            Notice is hereby given for a meeting of the National Executive  of Confederation, CHQ at our  Hqrs on 27th April.2008 to the discuss the following agenda.

1.      6th CPC recommendations and formulation of our approach.

2.      Any other matter with the permission of the Chair




Secretary General


Tuesday, March 25, 2008




CHQ: Manishinath Bhawan A2/95 Rajouri Garden

New Delhi. 110027

Phlone: 25105324 Fax :     25105324


Cell phone: 9811048303




            The Sixth Central Pay Commission which submitted its report to the Govt. yesterday has fixed the minimum wage at Rs. 5740/-only.  The Central Govt. employees had demanded the fixation of Minimum wage as per the norms formulated by the 15th ILC which works out to Rs. 10,000 p.m. The computation has been rejected by the Commission on untenable and unsustainable grounds.  Had the minimum wage been computed on the basis of the norms laid down by the 5th CPC. i.e. the percentage increase of the Net National Product over a period of ten years, which the Govt. had accepted in 1997, the minimum should have been determined at Rs. 7400/-.  Thus the minimum wage determined by the 6th CPC is even less than what had been recommended by the 5th CPC and accepted by the then Government as fair and reasonable.  The Pay Commission has gone on record to state that no comparison could be made to the wages obtaining in the Public Sector Undertaking. 

      The first four scales of pay suggested by the 5th CPC for the Group D Employees of the Government have been now removed.  The existing employees in these grades are to be moved to Group C cadres through a process of training thereby indicating that the unskilled functions in the Governmental sector would be contractorised or outsourced. On this specious plea the Commission has flaunted that the Minimum wage in the Governmental sector would hereafter be Rs. 6660 and thus calculated the ratio between the minimum and maximum wages at 1:12.  The real ratio between the minimum and maximum wages have been raised from 1:11.76(determined by the 5th CPC) to 1:15.68.  While huge rise in emoluments have been provided to the senior officers of the Government, the Group B,C and D employees have been totally neglected. 


      The Commission has recommended to withdraw the benefit of merger of DA granted to the Govt. employees in 2004.  The new fixation of pay in the revised scales of pay will be by disregarding this benefit.  The proposed 40% fitment benefit will thus be reduced to 28%, when the actual fixation takes place. 

      The Grade pay concept has been introduced as a prologue to the introduction of a performance related pay system without specifying any objective yardstick to measure the performance.  The rate of increase has been pegged down to the level of 2.5% much below even what is obtaining presently under the 5th CPC dispensation..   Another suggestion is to replace the existing adhoc and productivity linked bonus with performance related incentive.  The Commission has inter alia suggested for the reduction of holidays from 17 to 3 without compensatory increase in the number of restricted holidays.  The present health care system under the CGHS is to be replaced by the Medi-insurance for the new entrants.  The pension scheme presently in vogue for those who are recruited prior to 1.4. 2004 has not been extended to the new entrants while they are perforce to contribute 10% of their salary for the new contributory Pension scheme. No doubt the Commission has kept its promise of submitting its report within the prescribed time frame and recommended that its suggestion should be made effective from 1.1.2006.

      To give impetus to the policy of privatization and contractorization, the Commission has recommended for Corporatisation of Indian Railways, which employs the largest number of Central Government employees and for total outsourcing of all the Group D functions across the board in all Central establishments.  In the circumstances, the Central Government employees are constrained to reject the retrograde recommendations of the Commission and demand that the Govt. renegotiate wage revision issue afresh bilaterally. 

      The Confederation has called upon the Central Government employees throughout the country to organize demonstration on 26th March, 2008 to register its emphatic protest over the totally unacceptable recommendations of the 6th CPC.  It also calls upon the sister organizations to unitedly fight to bring about a decent wage settlement for the Central Government Employees.

K.K.N. Kutty.

Secretary General.





CHQ: Manishinath Bhawan A2/95 Rajouri Garden

New Delhi. 110027

Phlone: 25105324

Fax :     25105324


Cell phone: 9811048303





Dear Comrade,


            We send herewith a brief synopsis of the important features of the report of the 6th CPC submitted to the Government yesterday.  The full text of the report is available at the web site of the Pay Commission, the address of which is given hereunder. Kindly access the same.




            The Commission has fixed the minimum wage at Rs. 5740 against the demand we had placed for the grant of Rs.10000 as the need based minimum wage computed as per the formulations of the 15th ILC norms. The CPC has mutiliated the norms to bring down artificially the quantum.


            The first four scales of Pay I;e S1,S2,S2A and S3 have been knocked off.  The S 4 scale of 5th CPC i.e. 2750-4400 has been taken as the base scale of pay, the total emoluments of which at the beginning will be Rs. 4860+1800=6660.  The Commission has stated that this would be the minimum wage for future as the existing group D employees who are matriculates will be allowed to be migrated to this scale of pa.  Those who are not matriculates may be allowed to come over to the said scale of pay on a successful completion of training programme.  This has been used as a clever device to flaunt the minimum wage at Rs. 6660 and thereby to show that the ratio of the minimum and maximum salary has been kept at 1:12.  The fact is that the minimum wage is 5740 and the maximum being the salary of the Cabinet Secretary at Rs. 90000. This brings about the ratio of 1: 15.68, an all time high to boost the emoluments of the officers of Gr A services. There had been not a single valid argument or reason adduced the Pay Commission to reject the demand for the need based minimum wage.  Even as per the norms adopted by the 5th CPC the minimum wage ought to have been fixed at Rs. 7408/=


            A new concept of Grade Pay has been imported to give the impression that a 40% rise is given at the fixation stage in respect of each employee. If we take into account the revised fitment formula of the 6th CPC in which they had taken out the benefit of merge of 50% DA given in 2004, the net  increase will only be 28%.  The chicanery could be further seen from the fact that a mere Rs. 360 has been added to the pre revised S8 scale of pay i.e. Rs. 4500-100-7000 to replace it with the new scale of pay of Rs. 4860-20200. The fallacy in the construction of the revised scale of pay is further evidenced from the fact that the replacement suggested by us for S 8 in our memorandum begins with Rs. 20000 with an annual increment rate of Rs. 1000. Besides even as per the 6th CPC conversion factor the initial pay of S 8 ought to have been Rs. 10125.  By employing a clever device in the name of Grade Pay, the Pay Commission has virtually retained the pre revised scale of pay with a little cosmetic change.  The fact of the matter is that the Government is empowered to alter or altogether dispense with the grade pay in the case of any single employee in the name of extension of the performance related pay scheme later to the Gr B,C and D cadres.


            Without going much into the details of the impact, we should convey to you that the present dispensation is absolutely unacceptable and requires to be re-negotiated bilaterally with the Government.  What should be our formulation in the light of the scheme of things brought about through various recommendation of the Pay Commission is a matter for discussion, deliberation and consensus with the Railways and Defence Federations.  Efforts are on the anvil for bringing about a united approach both in the matter of formulating the demand and the manner and methodology of pursuing it to its logical end.


            You may kindly go through the enclosed note as also the various other recommendation of the Commission in the meantime and convey us your considered views so as to help us to formulate the demands that we should place for discussion at the staff side meeting of the National Council JCM


            As has been decided by us in our National Executive meeting held at Mumbai on 2nd and 3rd March, 2008 we call upon you to organize massive protest demonstration, rally etc.on 26th March, 2008 eliciting the full participation of all employees to educate and mobilize them against the retrograde and thus unacceptable recommendations of the 6th CPC.


            With greetings,

Yours fraternally,



K.K.N. Kutty

Secretary General


Synopsis of the important features of the 6th CPC recommendations:


1.                  Revision of pay takes effect from 1.1.2006

2.                  The fitment formula is as under:

Pay as on 1.1.2006 + 74% Pay (as DA)- rounded off to the nearest Rs;10+prescribed grade pay.( which is said to be 40% of the maximum of the pre-revised scale of pay) This means the benefit of merger of DA ( to the extent of 50% given in 2004) will not be available, thereby reducing the net benefit to 28%

3.                  The adhoc and PLB Bonus will be replaced by Performance related incentive scheme.

4.                  The women employees have been provided with staggering working hours, special leave for child care, maternity leave upto 180 days, increased working facilities like working women hostel etc.

5.                  In no future no non-matriculate will be recruited to the Govt. service.  The unskilled jobs are to be outsourced or contractorised. Those recruited on compassionate ground without the requisite matriculation qualification will only be paid a fixed salary of Rs. 4440, which is below even the minimum wage of Rs. 5740.  The period spent on this pay will be treated as training and will not be counted for any purpose.

6.                  The proposed rate of increment i.e. 2.5% may bring about a dip in the quantum of the pre revised increment in certain cases. The demand for increment at 5% of pay stands rejected. The increment in all cases will be with effect from Ist July.

7.                  There is an element of performance related increase in the increment rate by 1% .This is applied initially for Gr.A officers to be extended to other grades later.

8.                  The Govt.has been given the discretion to do away with the grade pay even in individual cases as part of introduction of performance related pay scheme.

9.                  The minmum wage is fixed at Rs. 5740 and not at 6660 as is being propagated.

10.              Maximum salary is Rs. 90000 even more than the salary prescribed for the Vice President India, thereby bringing about the ratio between the minimum and maximum at1: 15.68 whereas it was 1:11.76 in the case of 5th CPC

11.              No change in the periodicity of payment of DA nor in its methodology of computation. The index base year will be shifted to 2001 from 1982. The CPC recommended that no DA merger should be allowed hereafter.  The CPC has recommended for the construction of a separate cost of living index for central government employees.

12.              The CCA is subsumed in the transport allowance and the transport allowance is increased by  times.

13.              HRA. The following recommendations have been made: A1 cities will called X class Cities.- 30% pay + grade pay. A B1 & B2 will be Y class- 20% (increase by 5%) C and unclassified will be Z Class Cities with 10% HRA. (increase 2.5% and 5% respectively)

14.              As and when the DA is increased to 50%,all allowance will be increased by 25%. i.e. only 50% neutralization in the case of allowances.

15.              Education allowance has been raised to Rs. 1000.

16.              Persons stagnating at the maximum of the pay band for more than one year to be placed in the next higher pay band without change in the grade pay.

17.              New entrants: CGHS is replaced by medi-insurance.

18.              The Number of closed holidays have been reduced to three and the restricted holidays have been increased to 8.

19.              Pension: Full pension at 50% of last pay drawn or average emoluments of 10 months whichever is beneficial on completion of 20 years and above qualifying service. On attaining 80 years of age the pension would increase by 20% of Basic pension – at 85 – 30%, at 90-40% , at 95 – 50% and at 100- 100%. Commutation table revised. No change in the periodicity of pension restoration. No change in the EL encashment quantum. Full pension for 10 years as family pension in case of death in harness. Family pension will also get increased in the same ratio as per the age mentioned above. Ex gratia in the case of death while performing duties will be doubled. The ex gratia compensation raised to 10 lakhs in the case of employees who die in accident  and 15lakhs in the case of who lose life due to act of violence. Fitment benefit same as in the case of serving employees. Childless widow may continue to get family pension even after remarriage. Unmarried daughter will get family pension for life.

























Monday, March 10, 2008


All India CGHS Employees

Indefinite Strike withdrawn



at the

Intervention of the Confederation


                                            KKN Kutty

                                                     Secretary General

Saturday, March 8, 2008




Manishinath Bhawan

A/2/95 Rajouri Garden

New  Delhi. 110 027


Phone:  011 2510 5324

Mobile: 0  9811048303


E mail:



Dated: 8th March, 2008

Dear Comrade,


            The Standing Committee of the National Council met on 7th March, 2008.  The meeting was presided over by the Secretary, Personnel, Shri S. Misra. The meeting discussed the left out items in the agenda of the 14th December, 2007 meeting.  In the initial remarks made by the Staff Side, the following issues were raised.


1.      The non-holding of the meeting of the National Council and Standing periodically as per the provisions of the constitution of the JCM and demanding the intimation of the date for the next meeting of the National Council.

2.      Grant of revised bonus on the basis of the enhanced ceiling limit.

3.      Final view of the Government on the implementation of the Board of Arbitration Awards.

4.      The discontinuance of the practice of referring the non arbitrable items for the further negotiation with the Committee of Ministers;

5.      Arbitrary and unilateral reference of the anomaly committee items to the 6th Pay Commission which has deprived the staff side to present their case before the commission

6.      Amendment to the terms of reference of the 6th Pay Commission without any intimation to the Staff Side.

7.      The delay in the grant of recognition for several organizations that had made applications for verification and reverification.

8.      The impending strike action by the CGHS Employees Association and the requirement of the Government's intervention and negotiation to avert the strike.

9.      The delay in taking decision in respect of the risk allowance for the employees of the new ordnance factories.

10.  The necessity to take an immediate decision in the matter of removing the ceiling on compassionate appointment in the light of the detailed note submitted by the Staff Side.

11.  The reduction effected in the rates of impatient treatment and consequent denial of hospitalization for the CGHS beneficiaries.


The response was as under:-


(a)    Meeting of the National Council will be held soon

(b)   The discontent of the employees in the matter of denial of enhanced bonus has been brought to the notice of the Govt. and the same is being considered.

(c)    The crux of the discussion between the official and staff side on the implementation of the arbitration awards have been placed before the Cabinet Secretary for taking a final view.  No further discussion with the staff side is contemplated.

(d)   The Pay Commission has assured the Govt. to submit their report within the time schedule  i.e. before 6th April, 2008

(e)    Steps have been taken to expedite grant of recognition to the Service Associations. The Staff Side will give a list of organizations, which has completed all formalities and awaiting recognition for the effective monitoring of the DOPT

(f)     The Chairman asked the Health Ministry to hold discussions with the representatives of the All India CGHS Association and if necessary with the Staff Side with a view to avert the strike action. The reduction in the rates were effected on the basis of the grouping of cities which have been reviewed and city-wise rates have been notified in respect of seventeen stations and in respect of the rest, the notification would be issued soon. The Health Ministry officials informed that action has been taken against the hospital for the unfortunate death of an beneficiary officer (who was not hospitalized and treated for kidney failure) at Chennai. Some of the Staff Side members will be meeting the Health Ministry officials on 10th of 11th and assurance has been held out for a meeting with the Health Secretary very soon.

(g)    The risk allowance issue concerning Defence employees stands referred to the Department of Expenditure.  The DOE was asked to dispose of the issue in the light of the requirement that the new ordnance factory employees must not be denied the benefit of risk allowance when the other are being given on the basis of the approved 41 risk factors.

(h)    The Chairman apprehended that the 6th CPC might not take cognizance of the reference made to them on the anomaly issues.

(i)      The Chairman assured that whatever procedure had been adopted in the past in the case of non arbitrable items would continue to be followed.

(j)     The detailed Note given by the Staff Side in the matter of compassionate appointments is said to be under consideration to remove the discrimination between the Railway employees and others. . The Staff Side said that they would furnish the number of pending applications department wise soon.








Agenda items:


            The outcome of discussion on the left over agenda items in brief is as under:



Increase in the incentive bonus to workshop staff on merger of DA

The Railway Ministry will give their decision very soon


Revised rates of subscription and insurance cover under CGIS

Decision will be taken within three month.


Remote locality allowance to Mussorie

MOF was asked to consider this demands on the basis of the discussion held in the meeting on line with Shimla


Conveyance allowance.

Await the 6th CPC recommendation


Natural calamity advance

Amendment to GFR 247 is awaiting decision of the Cabinet Secretary


5th CPC anomaly

Please see the remark at(h) above


Grant of ACP for canteen employees

Decision of the CAT has been implemented.


Fresh option for pension benefit. Canteen employees

CAT decision has been implemented.


Benevolent fund

Fresh note submitted by the Staff Side. This would be considered and decision communicated in a month's time. 


Increase in the fixed medical allowance.

Not agreed to


Ex-gratia for SRPF retirees

The order having been quashed by the Court, the DOE will take a decision in the matter quickly.


Commutation of pension to retirees against whom disciplinary proceedings are pending.

The matter is being examined.


Family pension for widowed step mother.

Disagreement will be recorded.


Relaxation  in pension rules to take into account the notional fixation benefit

This will be considered.


Training period to be treated as Pension.

Orders issued. The proviso in the order will be redrafted.


Second ACP to Junior Accounts and Auditors

Disagreement will be recorded


Compassionate Appointments

Please see remarks at (j) above.


Stepping up of the pay of senior on par with the juniors who were granted ACP

The High Court judgment in the matter will be examined.


Counting of  full service rendered as casual labour for pension

This would be examined in the light

Of the discussion.


Protecting the benefits of temporary status employees on regularization.

Agreed to.


The reversion to lower post as a penalty should only for a specified period

The clarification to the effect that such reduction can be for an unlimited period of time will be reconsidered.


Regularization of casual employees employed after 1993

Instructions will be reiterated to implement the Supreme Court judgment for one time regularization of those who rendered 10 years of service. In respect of other, the suggestion of the staff side to introduce a "deemed temporary status" position will be considered.


Change of fixation of pay on unanticipated development or change in rules

Clarificatory orders will be issued within a fortnight delegating the powers to the concerned Ministry/Department.


H.Qrs allowance to Group C and D. employees.

The staff side to give a detailed note.


Fixation of pay on promotion- exercise of option.

The suggestion of staff side that the option should be obtained after intimating the relative benefit was accepted.


Revision of rates of Educational Assistance

Await 6th CPC recommendation.


Night duty allowance to Chowkidar

Staff Side has submitted the note


Implementation of pending awards.

Please see remark (c) above. In respect of higher pay scales to Audit and Accounts cadres, the staff side offered that the revision may be effected notionally from 1.1.86 and actual payment effected from. 1.1.2006.The Official side has noted this offer.




            With greetings,


Yours fraternally,


Secretary General.