HYDERABAD: The Joint Action Committee of Employees, Teachers and Workers here on Tuesday deferred its plan to go on strike from May 15 following talks with Chief Minister Y. S. Rajasekhara Reddy.

It will, however, resume the agitation if the Rangachari Committee does not submit its report by May first week as promised by the Chief Minister at the talks, on eight major anomalies under the new pay scales. The eight issues include re-designating attenders as office assistants, raising the ceiling on house rent allowance, payment of stagnation increments and treatment of drivers as technical staff.

Finance Minister K. Rosaiah and JAC chairman B. V. Subba Rao, who participated in the deliberations, told reporters separately that the Government had agreed to pay one of the two DA instalments payable to the employees due from July 1, 2005 at 3.76 per cent. Payment of the second instalment, due from April 1, 2006, however, would be considered later depending on the financial position of the Government, the Minister said.

Mr Rao announced that the Chief Minister had agreed to exempt the government employees from payment of professional tax to the tune of 65 per cent. The employees, therefore, would pay only 35 per cent of the tax.

Report by June-end

The Chief Minister gave a commitment that the Rangachari Committee would submit its full report by June-end. He said the Chief Minister had issued orders for appointment of a three-member committee headed by the secretary (services), D. Ramakrishna, to go into the anomalies. It would submit its report within 60 days. The two other names for the committee would be finalised as suggested by the JAC in two days.

During the discussions, K. Lakshmaiah, president, Andhra Pradesh Revenue Services Association, complained that profession tax was not being collected from certain sections.

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