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Saturday, August 2, 2014

Supplementary Memorandum submitted by IRTSA to 7th Pay Commission for grant of Interim Relief and Merger of Dearness Allowance

Supplementary Memorandum submitted by IRTSA to 7th Pay Commission for grant of Interim Relief and Merger of Dearness Allowance 28.07.2014


INDIAN RAILWAYS TECHNICAL SUPERVISORS ASSOCIATION
(Estd. 1965, Regd. No.1329, Websitehttp://www.irtsa.net )

No:IRTSA/7th CPC/Memo/2014-2

Date:28.7.2014

CHAIRMAN,
SEVENTH CENTRAL PAY COMMISSION,
NEW DELHI.

(Through: Secretary, Seventh CPC by Email to secy-7cpc@nic.in)

Sir,
SUBJECT:- SUPPLEMENTARY MEMORANDUM

- APPEAL FOR SUO-MOTO CONSIDERATION FOR “GRANT OF INTERIM RELIEF & MERGER OF DA (DEARNESS ALLOWANCE) TO CENTRAL GOVERNMENT EMPLOYEES”.
Reference:-
 i) Terms of Reference para “5” of the Pay Commission – Gazette Notification of Government of India No.1/1/2013-E.III(A) Dated 28.2.2014.


ii) Our Memorandum Dated 26th May, 2014, to 7th CPC.

In continuation of our detailed Memorandum to the Pay Commission, cited above, we make the following submissions for the kind consideration of the Pay Commission, requiring immediate and urgent attention of the Pay Commission to mitigate the serious and ever rising hardship of the Central Government employees and Pensioners.

1. SUO-MOTO CONSIDERATION FOR GRANT OF INTERIM RELIEF FOR INTERIM REPORT – TO MITIGATE EXISTING HARDSHIP:

Grant of Interim Relief and Merger of DA, as justified hereunder, may please be considered under Para ‘5’- of Terms of Reference of the Seventh Pay Commission which inter-alia states that – “The Commission may consider, if necessary, sending interim report on any of matters as and when recommendations are finalized.” Finalisation of Report of the Pay Commission is bound to take considerable time. Meanwhile the employees will continue to seriously suffer on account of various reasons given below. It is therefore, imperative that adequate Interim Relief be provided to them to mitigate their ever rising hardship.

Term of Reference for an Interim Report by the Pay Commission, allows & facilitates the Pay Commission under its inherent suo-moto powers to consider and recommend for grant of an of Interim Relief and Merger of DA to Central Government employees and Pensioners – on following grounds besides others:

2. URGENT NEED FOR GRANT OF INTERIM RELIEF & MERGER OF DA:

1.1 There is an urgent need for grant of Interim Relief and Merger of DA (Dearness Allowance) to the Central Government Employees & Pensioners to mitigate the serious hardship suffered by them because of the following reasons:

i) Serious Impact of heavy inflation and price rise and consequential erosion of real wages since the implementation of the Sixth Pay Commission:Cost of living had increased in “back-breaking” proportions. High inflation has eroded the real value of money. The Pay & Allowances fixed after the Sixth Pay Commission, had lost their real value which has seriously eroded over the years due to fast changes happening around the world as well as within the Country.

Major changes in the pattern & requirement of Education, Housing & Health system in the country and changes in the pattern of diet and food requirements have all added to the financial needs of a common man– especially at the Lower and Middle levels.

ii) Unrealistic and erroneous compilation of Price Index (for Industrial Workers) on which calculation of DA is based:

Compilation of Consumer Price Index for Industrial Workers (CPI – IW) (on which payment of DA is based) –is totally unrealistic and not in accordance with the actual Market rates prevailing all over the Country for all the Consumer items. Weightage given to various items for compilation of Consumer Price Index, are disproportionate and not in accordance to the existing pattern of consumption by the working class due to changed economic and social requirements, especially in respect of Housing, Education and Other elements.

Cost of living as per actual rise of prices has gone up by over 200% but the DA being paid is only 100% from January, 2014.

iii) Non-Merger of DA on crossing 50% DA since 1st January, 2011 and 100% DA since 1st January, 2014 – which is unprecedented & unjust:DA had crossed 50% mark in January 2011, and the 100% mark in January 2014. But unlike in the past, it is for the first time in the last 40 years – since the Third Pay Commission – that the DA had not been merged with Pay on the grounds that it had not been recommended by the Sixth Pay Commission. This was one of the most retrograde part of the Report of Sixth Pay Commission. Employees have become very restless and frustrated – both on account of erosion of wages due to inflation and non-merge the Dearness Allowance. This was most unjustified and against the practice and recommendations of all the previous three Pay Commissions (from 3rd CPC to 5th CPC) all of whom had 3recommended for automatic Merger of DA with Basic Pay/Pension whenever it crosses 50%.

Source: http://www.irtsa.net/pdfdocs/Supplementary_Memo_for_IR_&_Merger_of_DA_to_7CPC.pdf

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