7th CPC Terms of Reference – Record Note of Meeting held on 24.10.2013

No16/15/2012-JCA

Government of India

Ministry of Personnel, PG & Pensions

Department of Personnel & Training

North Block, New Delhi

19th November, 2013

Sub: Record Note of the meeting held on 24.10.2013 at 3.00 PM to discuss the possible Terms of Reference (ToR) for the 7th CPC with the representatives of the Staff Side of JCM

The undersigned is directed to forward herewith a copy of the Record Note of the meeting held with Staff Side on 24.10.2013 to discuss the possible Terms of Reference of the Seventh Central Pay Commission.

sd/-

(Ashok Kumar)

Deputy Secretary (JCA)

A meeting was held on 24.10.2013 at 3.00 PM in Committee Room No 190, North Block under the chairmanship of Dr S.K.Sarkar, Secretary DOP&T to discuss the possible Terms of Reference (ToR) for the 7th Central Pay Commission, which is going to be set up by the Government, with the representatives of the Staff Side of JCM. List of Participants to this meeting  is at Annexure I.

At the outset, Secretary (P) welcomed the Staff side representatives and thanked them for attending this meeting on a short notice. He indicated that since this meeting has been convened to discuss the possible Terms of Reference (ToR) for the 7th Central Pay Commission, he hoped that the discussions would remain so focussed.

Sh Umraomal Purohit, Secretary, Staff Side, in his opening remarks stated that it would have been preferable that there was a proposal from the official side on this issue to the Staff Side and then the same could have been discussed further in a meeting where the Finance Secretary could also be invited. He then pointed out that the new concept of Pay Bands and Grade Pay structure as per the 6th CPC, which changed the pay structure in Government, had resulted in a new experience which was mixed. He stated that though the 6th CPC did not recommend merger of DA with Pay, they could not have anticipated such a high rate of inflation which resulted in such high rate of DA; the rate of Dearness Allowance presently was 90% and due to high inflation there was a need to consider merger of a part of DA with Pay. He also raised the question of Interim Relief pending finalisation of 7th CPC recommendations. Shri Purohit further mentioned that anomalies of 6th CPC should be resolved on priority before 7th CPC. He also suggested that there must be some machinery which should resolve anomalies within one year of implementation of CPC report.

M.Raghavaiah, while thanking the Chairman raised the issue of anomalous situations which had arisen due to the new concept of Pay Bands and Grade Pay structure as per the 6th CPC. He suggested that the Finance Ministry should look into this aspect as to how anomalies cropped up due to this and how these can be avoided in future. He was of the view that the anomalies cases which stand referred to the Ministry of Finance need to be cleared. He referred to anomalies relating to MACP scheme vis a vis ACP scheme and resolution pending thereon required to be resolved as already discussed in the Joint Committee meetings on MACPS. He also demanded that there should be merger of DA with Pay as was agreed to in 2004. He also pointed out that the Railway Ministry’s proposals on 6th CPC related matters presently pending with Ministry of Finance should be cleared.

The other representatives from Staff Side raised the following issues

1) Entry level pay to promotee employees at par with that admissible to Direct Recruits as was agreed in the National Anomaly Committee;

2) One of the ToR should be to set up a special bilateral mechanism to sort out anomalies arising out of Pay Commission recommendations;

3) Professional approach should be adopted in dealing with peculiarities concerning Railways and Defence civilian employees;

4) There should be parity between pre & Post CPC retirees for the purpose of pension etc.;

5) Cadre review/restructuring proposals should be delinked from the 7th CPC so that these are not delayed;

6) Wage Revision should be effective after every 5 years as in the case of PSUs;

7) If there is going to be separate CPC for the Armed Forces as had been reported in media, or if there is a representative of Armed Forces in the 7th CPC then there should be a representative of Labour in the  CPC;

8) CPC should not go by “Central Secretariat” structure to make its recommendations which does not take into account specific complexities in large Government organisations like Railways, Postal Department and Defence establishments.

9) Allowances should be enhanced concurrently with the pay consequent upon Pay commission implementation.

10) Supreme Court has upheld that MACP should be in the hierarchy of the Post and also for grant of NDA in 7th CPC rates w.e.f. 1/4/2007. These judgments should be implemented to all similarly placed employees.

11) The Secretary Staff side in the end requested that a copy of Terms of Reference as proposed by the Ministry of Finance may be circulated and then another meeting with Secretary, Department of Expenditure and Department of Personnel & Training be arranged to discuss & finalise the Terms of Reference of 7th CPC.

In his concluding remarks, the Chairman thanked the participants for their views and requested the Staff Side that they may send their suggestions in writing also.

ANNEXURE I

List of Participants in the Meeting held on 24th October, 2013 at 3.00 PM in Room No. 190, North Block, New Delhi.