The Hindu : Norms for PSU wage negotiation okayed

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Thursday, Jan 08, 2004

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Norms for PSU wage negotiation okayed

By Our Staff Correspondent

NEW DELHI Jan. 7. The Union Cabinet today approved guidelines for all Central Public Sector Enterprises (PSEs) that enable the management of the Central Public Sector Undertakings to negotiate a periodic wage structure for workers with retrospective effect from January 1, 2002. The approval of these guidelines will enable the PSUs to start negotiations for the next round of wage settlement effective for five years but without any budgetary support from the Government.

The nine-point guidelines approved by the Cabinet gives freedom to the management to negotiate the wage structure for the employees not covered by the report of the Justice Mohan Committee in respect of pay revision in Central PSUs. The PSEs that are monopolies or near monopolies or operate under an Administered Price Mechanism will have to ensure that any increase in wages after negotiations did not result in increase in administered prices of their goods and services.

Briefing reporters after the Cabinet meeting, chaired by the Prime Minister, Atal Bihari Vajpayee, the Union Parliamentary Affairs Minister, Sushma Swaraj, said the wage revision shall be subject to the condition that there would be no increase in labour cost per physical unit of output and as regards sick units registered with the Board for Industrial and Financial Restructuring (BIFR), until the BIFR approved revival plan of such enterprises in which provisions have been made for additional expenditure on account of pay revision, she said. The workers drawing basic pay of up to Rs. 6,550 a month will be entitled for neutralisation of Dearness Allowance (DA) at 100 per cent of basic pay and those drawing basic pay beyond Rs. 6,550 a month will be entitled for 75 per cent neutralisation of DA. Ms. Swaraj said the management will have to ensure that negotiated scales of pay would not conflict with the existing scales of pay executives/officers and non-unionised supervisors. The validity period of wage settlement would be five years with effect from January 1, 2002.

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