Correlation of the hourly rate of the Industrial Employees deployed on Piecework System in Ordnance Factories: AIDEF, INDWF & BPMS Joint representation to OFB

Correlation of the hourly rate of the Industrial Employees deployed on Piecework System in Ordnance Factories: AIDEF, INDWF & BPMS Joint representation to OFB:-

ALL INDIA DEFENCE EMPLOYEES FEDERATION 

INDIAN NATIONAL DEFENCE WORKERS FEDERATION 

BHARTIYA PRATIRAKSHA MAZDOOR SANGH 

21-05-2014 

Kindly refer to the minutes of the meeting held on 06/02/2014 under the Chairmanship of AS (A) with the representatives of the 3 federations i.e. AIDEF, INDWF & BPMS in connection with the notice of “Indefinite Strike”’ from 17/02/2014. With regard to the above demand the following decision was taken:

“Demand was agreed to. However the issue of giving retrospective effect to the same will be examined separately”. 

As agreed by MoD. the govt. Orders for correlation of hourly rate in 6″‘ CPC pay scales was issued on 04/03/2014 giving effect from the date of issue of govt. Letter i.e. 04/03/2014. As decided in the meeting held on 06/02/2014, OFB is required to forward a proposal to MOD in this regard for extending the benefit w.e.f. 01-01-2006. It is Pertinent to mention here that OFB has already made a recommendation to MOD for correlation of the hourly rate in 6″‘ CPC Pay scale w.ef 01/01/2006. Since a need is being felt to further elaborate the matter and justify the demand appropriately in proper context, the federations have further deliberated the matter in detail and find it pertinent to bring the following facts which put the things in perspective and justify the demand for correlation of hourly rates w.ef. 01-01-2006. 

1) In the past. right from 3rd CPC onwards, and during the entire duration of 4th CPC, the federations were representing for removing the anomalies in the then existing Piece-Work System in which the higher grade employees were given the hourly rate of lower grade and there was no protection for their annual increment and promotional benefits etc. Since the Govt. did not concede the demand of the Federations to remove the anomalies in the then existing Piece work system, the matter went upto the Supreme Court and by the time the Supreme Court was considering the matter, ‘the 5th CPC pay scales were implemented w.e.f. 01-01-1996. The Supreme Court directed to set up a committee to address all those anomalies pointed out by the affected unions.

2) Accordingly the piecework correlation was implemented as per 5″‘ CPC pay scales, which was based on the direction of the Hon’ble Supreme Court. The scheme was implemented w.e.f. 01-03-2000 provisionally for a period of 2 years, and thereafter MoD vide letter dated 18th August 2005 conveyed the sanction of the President for continuation of the Piece Work System in Ordnance Factories on a regular basis w.e.f. 01-04-2002 as contained in the MoD Letter dated 01-03-2000.

3) As elucidated above, the entire scheme, and the methodology therein was under adjudication. As a result of the Supreme Court judgement, a new scheme of correlation of hourly rate which was based on an agreement between the Federations and OFB, came into effect from 01-03-2000. Since the scheme itself was new, which was totally different from the previous scheme, the question of retrospective effect was neither felt nor demanded by the federations, as the same was not possible.

4) The Basic Pay/Time wages of the Industrial employees deployed in Piece-work system in the Ordnance Factories are regulated on the basis of their output/Piecework earnings. For this purpose the hourly rates are correlated in their Pay scales. Since the revised Pay scales based on 6″‘ CPC recommendations was given effect from 01-01-2006, as a natural corollary, the hourly rate correlated in the 6″’ CPC Pay scale should also be effective from the same date i,e. 01-01-2006 and not from a prospective date as has been implemented as an interim measure as per decision taken in the meeting held with the Federations in MoD on 06-02-2014.

5) The principle that the hourly rate of the pieceworkers should be correlated from the date of revision of the pay scales of the workers has already been established by the Court of law and Govt have issued orders accepting the court verdict in the past. Based on the recommendations of the 3rd CPC Govt appointed an Expert Classification Committee(ECC) to revise the pay scales of various trades based on job classification etc.Accordingly the recommendation of the ECC to revise the payscale from Rs.210-290 to Rs. 260-400 w.e.f.  16/10/1981 However Govt issued orders on correlation of Piece work rates in the upgraded pay-scale of Rs.260-400 w.e.f. 19/07/1983, i.e.from the date of issue of the Govt Order.  However the matter was adjudicated and the court directed Govt to revise the hourly rate of the pieceworkers w.e.f.16/10/1981 i.e. from the date of revision of the pay scale and not from a prospective date. Govt. subsequently issued orders on 16″‘ October 1995 to correlate the hourly rate in the upgraded pay-scale of Rs.260-400 w.e.f. 16/10/1981. 

In mu view of the above justification it is requested that OFB may kindly forward the proposal to MoD with favourable recommendations for extending the benefit of correlation of hourly rates in 6th CPC pay-scales w.e.f. 01~01-2006.