Kerala - Thiruvananthapuram   

Employees seek audit of defence canteen earnings

Staff Reporter

Plea to declare canteen staff as Central staff

Thiruvananthapuram: The Defence canteen employees in Kerala have demanded a proper audit of canteen earnings.

In a petition to Defence Minister A.K. Antony, the employees said that the 3,500 units run defence canteens in the country earn crores of rupees annually as "quantitative discount" on products sold alone. The Supreme Court had ordered in 1999 that such earnings be deposited in the public exchequer. However, the order was being observed in the breach. They said it still "remained a mystery" how these funds were used and demanded a proper audit of such earnings.

The employees also sought Mr. Antony's intervention to implement a long-standing Supreme Court order (Civil Appeal no: 1039-40,1999) that declared them as Central Government employees. They pointed out that such a decision would not put any additional financial burden on the Central Government and the significant canteen earnings in terms of "quantitative discount" alone could be used to meet their salaries and other service benefits.

The apex court in its 2001 order had directed the Defence Ministry to formalise the service terms and conditions of the canteen employees. The order said they be treated as Central Government employees under the Ministry of Defence. The court also ruled that the Central Administrative Tribunal (CAT) was empowered to handle all cases concerning the canteen employees.

In 2001, the Defence Ministry issued a set of terms and conditions that said the canteen employees were not Central Government staff and they were "casual" appointments. Hence, they were entitled only to basic pay and dearness allowance. The unit head was given the power to terminate any employee at any point of time.

In 2002, the canteen employees termed the conditions as "anti-worker" and filed a contempt of court petition against the Defence Ministry. Subsequently, the court ruled that new terms and conditions be formulated in harmony with the spirit of the 2001 judgment. In 2003, the Defence Ministry formulated a new set of service terms and conditions.

They said the new terms and conditions cut their dearness allowance and the number of casual leave they could avail of themselves.

The case was referred to the CAT. The forum ordered the formation of a three-member committee of Government Joint Secretaries to look into the service conditions of the employees. It ruled that the employees be accorded all benefits guaranteed under Article 309 of the Indian Constitution.

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