New Delhi: The central government employees unions demanding higher
allowances, a realistic view of what government can afford, the Finance
Ministry sources have confirmed.
Speaking to senior Finance Ministry sources were keen to the demands
being met, insisting the work of the ‘Committee on Allowances’ to submit
its final report within May, will determine what is doable.
"The government has a lot of pressures on the purses this year and
higher allowances obviously is a key one. Demands are reasonable and
realistic. But the government will not be held hostage," said one senior
source last night.
They told "The issue of higher allowances is currently under consideration by the 'Committee on Allowances'.
In line with their mandate, the committee will produce a report within May.
This report will form the basis of negotiations with the central
government employees unions. Any higher allowance settlement emitting
from these negotiations must be affordable and sustainable.
The National Joint Council of Action (NJCA), which is a centralised
union of several central government employees unions, has told cabinet
secretary that the higher allowances must be given with retrospective
effect from January 1, 2016.
The committee will have regard to the national finances before accepts NJCA above demand, the source said.
The central government employees unions had threatened to call for
nationwide strike in May due to delay in implementation of higher
allowances.
In response to this, the sources said, "the government expects the
'Committee on Allowances' to report by May or even before then. They are
going to be very difficult discussions and negotiations."
The 'Committee on Allowances', headed by Finance Secretary Ashok Lavasa
was formed in July last year for examination of the recommendations of
7th Pay Commission on allowances other than dearness allowance as the
pay commission had recommended abolition of 51 allowances and subsuming
37 others out of 196 allowances.
The committee was initially given four months time to submit the report to Finance Minister Arun Jaitley.
Later, the Finance Minister Arun Jaitley extended the deadline for
report submission to February 22, 2017 but committee has not yet
submitted its report.
The central government employees got theirs arrears of basic pay arising
from implementation of the 7th Pay Commission recommendations in one go
in August salaries. The hike in basic pay has been made effective from
January 1, 2016 but they are still awaiting for the higher allowances.
The employees now get all allowances except dearness allowance,
according to the 6th Pay Commission recommendations until issuing of
higher allowances notification.
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