Friday, February 26, 2010



A-2/95,Manishinath Bhawan,Rajouri Garden, New Delhi-110 027

Tel: 011-2510 5324:  Mobile: 98110 48303


Confdn/Circular No. 6/2010

Dated: 26th February, 2010.


Dear Comrades,


            As you are aware the Central Trade Unions including the INTUC and BMS had united decided to carry out programmes of action against the neo liberal economic policies, especially in the matter of price rise, disinvestment of PSUS  etc.  In their press statement issued on 16th December, 2009, a call had been given for satyagraha/Jail Bharo to be organized on 17th February, 2010.  Due to some unavoidable circumstances, this programme had to be postponed and would now take place on 5th March, 2010.


            We have in our National Sectt. Meeting held recently taken the decision to be part and parcel of these prgrammes of action.  Though Jail Bharo may be difficult for our comrades to participate, we request all affiliates and State Committee to enlist the participation of all our comrades in the demonstration that would be held prior to the court arrest.  If the programme is being carried out at a centrally located place in each town and city, our comrades may kindly be asked to go over to that location to participate in the demonstration.  If no such central place is identified, the State Committee of Confederation may explore the possibility of organizing the programme at a pre identified place or office as the case may be. 


            The five demands are:


(a)    Contain price rise of essential commodities through appropriate corrective and universal distributive measures; contain speculation in commodity market.

(b)   Take concrete proactive measures for employment protection in the recession stricken sectors along with the stimulus package being offered to the concerned entrepreneurs.

(c)    Ensure strict enforcement of all basic labour laws without any exception or exemption and stringent punitive measures for violation of labour laws.

(d)   Take steps for removal of all restrictive provisions based on poverty line in respect of eligibility for coverage of the schemes under the unorganized workers social security Act, 2008 and create National Fund to provide for National Floor level social security to all unorganized sector workers.

(e)    Stop disinvestment of shares of Central Public Sector enterprises; instead  use their growing reserve and surplus for expansion  and modernization purposes and also for revival of sick public sector undertakings.


We have today issued a Press Statement on the Budget presented by the Finance Minister in the Parliament.  A copy of the same is enclosed.  Our views on the Budget are contained in the Press Statement.  This Statement has been prepared before we get into all details of the Budget as it was not placed on the Website immediately after presentation.


With greetings,




We have today issued a Press Statement on the Budget presented by the Finance Minister in the Parliament.  A copy of the same is enclosed.  Our views on the Budget are contained in the Press Statement.  This Statement has been prepared before we get into all details of the Budget as it was not placed on the Website immediately after presentation.


With greetings,

Yours fraternally,



K.K.N. Kutty

Secretary General

Press Statement


A-2/95,Manishinath Bhawan,Rajouri Garden, New Delhi-110 027

Tel: 011-2510 5324:  Mobile: 98110 48303





26th February, 2010



The Budget presented by the Finance Minister, Shri Pranab Mukherjee  today is totally disappointing in so far as common people and  especially the workers are concerned.  The Finance Minister has allowed tax concessions to the extent of Rs. 26,000 crores under Direct taxes and decided to garner additional revenue of Rs. 46500 crores from indirect taxes including service taxes.  The share of Service taxes is to the tune of Rs. 3000 crores.  He has proposed to raise the excise duty by 2% across the board.  Most of the concessions in the indirect taxes come in the form of customs duty on imports. 


The increase in the revenue resources from indirect taxation has been made on the specious plea that the global economic recession has turned the corner and  the  Indian economy is poised for 8% growth.   For sustaining the growth in the economy, the common has to be burdened further and the rich to be spared of taxation, seems to be  the ideology of the Finance Minister.  Due to the unprecedented rise in prices of essential commodities especially food items, the common man is made to bear the brunt and nothing has been proposed by the Finance Minister to help him out. Due to the proposed increase in the excise duty on petroleum products and rolling back the concession offered earlier as part of the stimulus package,  there would be further increase in the prices of all essential commodities injecting further inflation. 


In the case of salaried tax payers, the Finance Minister has not thought it necessary to increase the non taxable maximum, whereas he has offered concession in the rate structure of those tax payers who are in higher income bracket of Rs. 3 lakhs and above.  While those in the income bracket of Rs. 3 lakhs and 8 lakhs would be enjoying a lesser tax burden, even the unskilled workers would be drawn into the ambit of income tax liability for the minimum taxation limit has been pegged down to what it was in 2009-10  For no valid reason, the standard deduction available to the salaried tax payers was withdrawn in 2005.  The repeated pleas made by the workers year after year have gone into the deaf ears of the Finance Minister.  The deduction was not restored whereas such deduction continue to be made available to other category of tax payers.


In the situation in which the workers are placed presently, there is no alternative to organizing united and militant struggles to force the Government to withdraw taxation proposals that inflicts unbearable burden on people at the lower strata of the society.


K.K.N. Kutty

Secretary General.


Sunday, February 21, 2010

Circular No.5



A-2/95,Manishinath Bhawan,Rajouri Garden, New Delhi-110 027

Tel: 011-2510 5324:  Mobile: 98110 48303

Confdn/05 /2010

Dated: 18.02.2010

Dear Comrades,


            The last  National Sectt. Meeting inter alia discussed the possibility of a joint action programme with the AISGEF and AIDEF in the event of the Government introducing the PFRDA Bill and the new direct taxes code in the Budget session of the Parliament.  While the AISGEF was to take a decision in the matter in their all India Conference which was scheduled to be held in the first week of February at Hyderabad, the AIDEF had promised us to discuss the issue in their organizational fora and revert back to us.  So far we have not received any communication from the AIDEF.  The All India Conference of the AISGEF had to be postponed due to the ongoing agitation in Andhra Pradesh.  Hence, no finality could be reached on the proposal for organizing a day's strike somewhere in March, 2010.


            The Budget session is likely to commence on 22nd Feb.2010.  The National Secretariat had discussed of the necessity of organizing a demonstrative programme in the first week of the Parliament session.  It was decided that Lunch recess programme should be organized in front of all offices eliciting the participation of all the employees in the respective office on a pre determined date. Taking into account the requirement of sufficient time to organize the programme, we call upon the affiliates and State Committees to ensure that the lunch hour demonstration is organized in front of all offices on 10th March, 2010 to oppose the introduction of the new Direct Taxes code and the reintroduction of the PFRDA Bill and to oppose the phenomenal increase in the prices of all essential commodities an offshoot the neo linberal economic policies of the Govt. of India.  The life of common people especially the wage earners has been made miserable. The following telegram/Savingram may be sent to the Hon'ble Finance Minister, Shri Pranab Kumar Mukherji, (at North Block, Central Sectt. New Delhi.)


Reintroduce the statutory defined benefit pension scheme for all CGEmployees recruited after .1.1.2004 by withdrawing the PFRDA Bill and amend the direct taxes code as demanded in the memorandum submitted by the Confederation of CGE and Workers .Strengthen the Public distribution system  by making all workers and all essential commodities  within its ambit.


            Enclosed herewith is a copy of the letter sent  by the Confederation to the Hon'ble Finance Minister  in response to the draft proposal placed on the website by the government.

With greetings,

Yours fraternally,


K.K.N. Kuty

Secretary General.




Manishinath Bhawan,

A/2/95 Rajouri Garden

New Delhi.110 027



Phone : 011-25105324



No.D/16/2009                                                             Dated 25th November, 2009



Shri Pranab Kumar Mukherjee,

Hon'ble Finance Minister,

Government of India,

North Block,

New Delhi.


Dear Sir,


            Sub:  New Direct Tax Code – To replace the IT Act, 1961 –

                     Suggestion – Submission of.

                                                            ** **


            Confederation of Central Government Employees and Workers represent the Central Government Employees working in various departments under Government of India, other than Railways and Defence.  We have been directed by the National Executive Committee of our organization, which met on 13.09.2009 to submit the following for your kind consideration while bringing in the new legislation on Income Taxation with respect to the New Direct Tax Code proposals placed on website on 12.8.2009.


1.        We  find that the tax structure proposed under the new Direct Tax Code is highly skewed in favour of the persons belonging to higher income bracket as is evidenced from the following table: 

2.        The deduction/exemption of income must not be replaced with tax incentive in the case of salaried class of employees for "deductions" are permanent in nature whereas tax incentive are only for the period where such income is locked up in specified investments.  The salaried employees do not have income for keeping in the permanent investment portfolio.  They can do so only for a limited period.

3.        The specified investment portfolio approved by the PFRDA is not insured against vagaries of speculation.

4.        The deduction of PF contribution which has now been made as an incentive, having been made to suffer tax on withdrawal on EET basis, is not acceptable.

5.        The proposal to tax the HRA, Medical reimbursement, LTC, etc. which were hitherto given exemption,  thereby increasing the tax liability is not acceptable as it amounts to reduction in salary.  Therefore, the non taxable maximum in the case of salaried employees must be raised to Rs.5 lakhs. The said suggestion is made taking into account the fact that various deduction presently available have been either withdrawn or converted into tax incentives attracting taxation at the time of withdrawal [ such as LTC, Leave encashment, interest on Government securities, family pension, deduction  u/s 80C, 80D, 80DDB etc.]

6.        The proposed withdrawal of deduction presently available for House Building loans and interest thereon would not only make the aspiration of a salaried employees to own a house a mirage but would also act as a disincentive for construction activities rendering thousands of workers in that sector redundant. This proposal therefore deserves to be dropped.

7.        The area of perquisite taxation must not be enlarged to cover the small income salaried tax payers as what is provided to them is not perks in its real sense but only as a part reimbursement of an eventual and inevitable expenses one is to incur to remain employed.

8.        To augment the revenue resources of the Government, it is necessary that the exemption, which is allowed to remain in the new Direct tax Code for the Charitable Institutions and non profitable organizations is withdrawn.

9.        Make provisions in the statute for quoting  PAN mandatory for all ITS data to be submitted  to the Income Tax Department in AIR forms.

10.     The Direct Tax Code ought to have attempted to widen the tax base and taxation at increased rates in the case of taxpayers who derive income from Business and Profession given to the fact that the tax GDP ratio in our country stood 17.7 percent compared to 30.1 percent in Switzerland, 40 percent in Germany, 50 percent in Denmark, 39 percent in U.K and 28.2 percent in USA.

11.     Assessing at least 10 percent of the black income pervading in our economy would result in doubling the GDP in a few years with the concommitant benefit of increased revenue generation. The new tax code has no proposal to address the need for unearthing the black income.

12.     The new tax code has also not appreciated the irrefutable fact that the salaried tax payers do not avoid tax liability stipulated by the statute and they are the honest tax payers. They ought to have been treated differently and should have been given specific exemptions and deductions or retained the existing one.

Thanking you,

                                                                                                  Yours faithfully,



                                                                                                   (K.K.N. Kutty)

    Secretary General


Thursday, February 11, 2010





Manishinath Bhawan,

A/2/95 Rajouri Garden

New Delhi. 110 027.

E mail.



Dated: 10th Feb. 2010.


Dear Comrades,


The draft minutes of the last meeting of the National  Anomaly Committee held on 12.12.2009. were discussed with the Director JCA(Secretary Official Side).  It was decided that the amendments required would be communicated to him in writing and thereafter the same could be finalized after further discussion with the Staff Side, a procedure that had been followed till date.  Accordingly, the Staff Side had submitted the amendments to the draft minutes. We place hereunder the copy of the letter the Staff Side Secretary had sent to the Official side requesting to incorporate the amendments to the minutes. .

The official side without any further discussion, finalized the minutes incorporating some of the amendments (in Bold print) which have been placed on their website indicated below.


            It has been decided that Staff side would further discuss this matter with Director JCA and press for incorporation of  leftout amendments.

            With greetings,

Yours fraternally,



K.K.N. Kutty.

Secretary General


Copy of staff side secretary's  letter addressed to the Secretary Official Side, JCM. National Council.


Umraomal Purohit


Staff Side.

JCM. National Council

13.C Ferozeshah Road,

New Delhi. 110 001


Shri Dinesh Kapila,

Deputy Secretary )JCA) &

Member Secretary (National Anomaly Committee)

Department of Personnel and Training

JCA Section

North Block,

New Delhi.110 001


Dear Sir,


Sub: Draft minutes of the meeting of the National Anomaly Committee. Regarding.


            Kindly refer to the discussion, some of the Staff Side members had with you on the above subject.


            We send herewith the text of amendments required to be made in the draft minutes.


            Thanking you,


Yours faithfully,





Text of Amendments required in the draft minutes of the meeting of the National Anomaly Committee held on 12th December, 2009.


Page No.4. Item No.1-4. Line No. (in page No.4):4.    Add the following as the penultimate sentence:

The Staff Side reiterated that it was an anomaly precisely for the reason that vide Para 2.2.19, the 6th CPC  has  stated unambiguously that where pre revised pay scales have been merged it has been done by extending the minimum prescribed for the highest pay scale with which the other pay scales are being merged.  However, the pay band has been fixed with reference to the minimum of the lowest pay scales which have been merged.


Page No.4 Item No. 5. Line No. 15. The last sentence in the para (i) of agenda Item No. 5. may be replaced with the following:


            The JS(Per) agreed to allow the employees to revise their option and to delegate powers to the administrative ministries to allow such revised options.


Page No. 5. Item No. 5(iv) Line 16. Add the following sentence.  The Staff Side further stated that the pay granted to the fresh entrant is the deemed minimum pay of the post and no promotees can be fixed below the minimum pay of the post to which he is promoted on regular basis. 

Replace the last sentence in the said para with the following:

            The Department of Expenditure agreed to issue enabling orders in the matter.


Page No. 6. Item No. 5(v). Add the following at the end of the paragraph. 

            The Staff Side further stated that the Revised Pay Rules in relaxation of F.R. are meant only for the purpose of fixing the pay in the revised Pay scales.  It has no application thereafter.  It is on this specific understanding that the staff side had demanded the one time relaxation as otherwise  the one time relaxation would not address similar issues of future recruitees and promotees. The Official Side contended that the Revised Pay Rules would override the provisions of the Fundamental Rules permanently.  The Staff Side then contended that an increment has to be granted on completion of one year service.  It must not be postponed except on award of a penalty on initiation of disciplinary proceedings.  After some further discussion, the official side agreed to reconsider this matter.


Page No. 6 Item No.5(vii).Add the following at the beginning of the paragraph:

            The Staff Side stated that as per the existing scheme the temporary status employees have been granted the minimum of the corresponding scale of pay of regular employees (with benefit of annual increments). Therefore it would be necessary that these employees if they are non matriculates are given the requisite training and the benefit of fixation of pay at Rs. 7000/- (with grade pay of Rs. 1800_ with effect from 1.01. 2006. The Secretary, Staff Side pointed out that in respect of those who have retired/died during the period between 1.1.2006 and 1.9. 2008 it would not be possible to impart training to them.  He, therefore, suggested, referring to his letter in this regard that they may be given the benefit of Grade Pay of Rs. 1800 with effect from 1.01.2006. Regarding granting of temporary status to casual labourers, JS(Per) informed that the Department of Expenditure had already rendered their advice in the matter to JS(E) DOPT. Further action is to be taken by DOPT.  The Chairman said that this issue would be considered sympathetically.


Page No. 7.

Item No.15,16 & 17- Parity in Pension to all Pensioners. Line No. 17.


            Kindly omit 16 and 17 in the heading as these items were not discussed at the meeting.

            Add the following  in Line  No. 23 after the sentence ending with the word 'recommendations.'

            The Staff Side further stated that the 6th CPC in para 5.1.47 has stated that in order to maintain the existing modified parity between present and future retirees it will be necessary to allow the same fitment benefit as is being recommended for the existing Government employees.

Page No. 8 Item No.15. Line.3. Add the word  "same" in between the words "allowing" and "fitment"


Page No. 8 Item No.15. Line 3. Replace the words: "equal to 40% of their existing pension" with the following:

            As is being recommended to the existing Government employees


Page No. 8 Item No.15. Line.9 Replace the following sentence

"Officers of Department of Expenditure stated that this was not the intent of the recommendation of the Pay Commission. 

            With the following:

            After some discussions, the official side agreed to re-examine the issue.


Add the following in page No. 8 at the end.


"At the conclusion of the meeting, the Staff Side took up the matter concerning non representation of Postal Federations in the National Council as some members of a Federation which could not muster even 5% membership had been approaching one court or the other in a bid to delay the verification process and consequent recognition of the Associations and Federations in the Postal Department.  As it would be a never ending process,  the denial for the unions who had mustered more than 75% of the membership representation in the National Council would be a miscarriage of justice, the Staff Side added..  The Director (SR) of the Postal Department, who had represented the Postal Department in the official side agreed with the contention of the Staff Side and reported to the Chairman, that they had granted adhoc recognition to the Unions who had mustered the requisite membership and the Department Council had also been convened and met on adhoc basic.  The question of granting of representation to the representatives of the Staff in the National Council had been referred to the Department of Personnel and their advice in the matter was being solicited.  The Chairman assured the Staff Side to look into the matter and take appropriate decision soon.


The denial of revised higher Grade Pay to Master Craftsmen of Workshops in MMS in the Postal Department, while affording the same to those in Railways and Defence was also raised by the Staff Side.  The Department of Expenditure pointed out that they had not received any reference from the Postal Department in this matter, whereas the official side representative of the Postal Department stated that they had referred this matter to them earlier.  After some discussion, it was agreed that the Department of Expenditure and the Postal Department would sort out this matter expeditiously."


Amendments in the bold print have been incorporated in the finalized Minutes