Monday, October 17, 2022

"Need for revising norms including old parents to raise the wage"

My article "Need for revising norms including old parents to raise the wage" published in today's (18.10.2022) editorial of Kalinga Chronicle, the popular English Daily from Odisha. Thanks to the entire editorial  team of  #KalingaChronicle.

It is highly unfortunate to ignore the old parents from the purview of wage-earner’s family while calculating the minimum need-based wage.

Since the Minimum Wages Act, 1948 was not complete in all aspects to provide the exact norms for fixing or quantifying minimum wages statutorily, the 15th session of the Indian Labour Conference (ILC) held in July 1957 constituted the basis for fixing minimum wages in India stating that the minimum wage should be need-based and ensure the minimum human needs of the industrial worker. Accordingly, it formulated five norms to serve as a guide for all wage-fixing authorities;  (i) three Consumption Units (CU) for one wage earner without incorporating the earnings of women, children and adolescents; (ii) a minimum food requirement of 2,700 calories per adult person per day  ; (iii) clothing requirements at 72 yards per annum for an average working family of four; (iv) a house rent corresponding to the minimum area provided for under the Government's Industrial Housing Scheme; and (v) 20% of total minimum wage for fuel, lighting and other miscellaneous items.  

But, considering these norms inadequate taking into account the socio-economic aspect of the wage structure, in 1992, the Hon’ble Supreme Court of India (SC), in the historic Workmen v Reptakos Brett & Co. judgment (1992) instructed to add few additional components, namely: children’s education, medical requirements, minimum recreation including festivals / ceremonies, and contingencies such as old age and marriage. The SC also directed that these consumption items should constitute 25% of the total minimum wage. In line with the norms set by the 15th  ILC (1957) and the SC judgment (1992), the wage-fixing authorities at central and state level have been setting minimum wages for their respective “scheduled” employments under the Minimum Wages Act, 1948. As aware, the Government of India has regularly set up Central Pay Commissions (CPC) to review and make recommendations on the work and wage structure of public employees. Six of the seven Pay Commissions so far have used the 15th ILC norms to calculate the minimum pay. In fact, the Seventh CPC, in its 2015 report confirmed that the use of the ILC 1957 norms constitute “the best approach to estimating the minimum pay as it is a need-based wage calculation that directly costs the requirements, normatively prescribed to ensure a healthy and a dignified standard of living”. 

Thus, the above 3 CUs of the wage earner devised by 15th ILC (1957) and subsequently accepted by the SC in 1992 considered the male as 1, female as 0.8 and the two children each as 0.6 CU respectively. It doesn’t include the parents of the wage earner. At the time of entry to the job, the wage earner may not have his/her spouse and children but must have the parents. But most surprisingly, while the ILC ignored the parents of the wage earner from the definition of a typical Indian family for computing the minimum need-based wage, the Hon’ble Supreme Court of India unfortunately also restricted the additional components like medical requirements and contingencies for old age etc. to the wage earner only. 

The people of India belong to different religions and faiths. They are governed by different sets of personal laws in respect of matters relating to family affairs, i.e., marriage, divorce, succession, etc. Historically, irrespective of religion and faith, the traditional, perfect and beloved family in India is the joint family which, in addition to the wage earner, his spouse and children consists of three to four living generations, including uncles, aunts, nieces, nephews and grandparents living together in the same home. The maintenance of all such family members on the part of the wage earner is not only ethical, but logical and legal also. But while attempting to increase the minimum wages through the above legislative changes, neither the ILC nor the SC did consider the potential consequences on these demographic groups.  

It is needless to state that in the present day society, the old parents are frequently witnessed to be seriously ignored and abused by the wage-earners who prefer to live in a nuclear family with his wife and children only. Hardly any wage-earner is shouldering the burden of the parents during their old age. One of the main reasons for such estrangement and abandoning the old parents by Indian youths is money or finances. A study conducted in June 2020, by the NGO Agewell Foundation, 71 per cent of India’s elderly reported an increase in maltreatment during the first Covid-19 induced lockdown. As a result, now the concept of old-age home is mushrooming in Indian society where the neglected parents are being sheltered which is too piteous. According to the Report of the Technical Group on Population Projections for India and States 2011-2036, there are nearly 138 million elderly persons in India in 2021 and it is further expected to increase by around 56 million elderly persons in 2031. There are 18 million homeless elderly persons in India based on the Longitudinal Ageing Survey of India 2020. Currently, there are 728 old age homes, both private and public in India providing different geriatric services. 

In this context, it is worth mentioning here that Maintenance and Welfare of Parents and Senior Citizens Act, 2007 casts obligations on children to maintain their parents/grandparents and also the relative of the senior citizens. Here, children include son, daughter, grandson, grand daughter, son-in-law, daughter-in-law and maintenance includes provision for food, clothing, residence, medical attendance and treatment. Similarly, as per the Act, parent means father or mother whether biological, adoptive or step father or step mother. In addition, Section 125 of the Criminal Procedure Code, 1973 which is secular in nature and applicable to all individuals equally irrespective of their religion, provides maintenance for the wife, children and parents.  Above all, the Central Civil Services (Conduct), Rules, 1964 include the dependent parents of the Government employee in the definition of family for the purpose of availing Leave Travel Concession (LTC), Medical Treatment etc. As such, the old dependent parents should not be ignored from the purview of the family while computing the minimum need-based wage and a family for the purpose should be considered for 5 CUs including the parents of the wage-earner as 2 CUs (Father 1CU and Mother 1CU) instead of existing 3 for fair play of justice. The increase in minimum wage determined as such will certainly change the behaviour of the wage-earner towards his/her old dependent parents in a positive way and thereby increase the ability to spend more quality time with them reducing the estrangements.

Now, the Hon’ble Supreme Court of India may take a sou motu cognizance of the issue and give a direction to all the wage-fixing authorities to consider the family as 5 CUs instead of the existing 3 for computation of minimum need-based wage which will be another landmark for protection of the senior citizens  of this public welfare country in addition to reducing the frequent agitations made throughout the year by different Trade Unions across the nation in this regard.  
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Wednesday, October 12, 2022

"Stop dillydally; 8th CPC already delayed by 5 years"


 My article "Stop dillydally; 8th CPC already delayed by 5 years" published in popular national English Daily 'The Pioneer' (Bhubaneswar Edition) on 13 October 2022 


In reply to a Rajya Sabha un-starred question “Whether it is a fact that the Government is considering not to constitute 8th Central Pay Commission (CPC), to revise salary, allowances and pension of the Central Government employees and pensioners”, the Minister of State of Finance said ‘No’ on August 2, 2022 which means that there is possibility of constitution of 8th CPC whose recommendations will be due with effect from 01.01.2026, i.e. after 10 years of implementation of the recommendations of 7th CPC on  01.01.2016.


 But, in the meantime, the Confederation of the Central Government Employees and Workers has started agitating demanding wage revision in every 5 years with implementation from 01.01.2021 (i.e. after 5 years of implementation of the recommendations of 7th CPC on 01.01.2016) instead of ten years since many State Governments and public sector undertakings are revising the salary, allowances and pension in favour of their employees in every 5 years.


 While demanding for constitution of 6th CPC for which 3 nationwide general strikes were conducted by the Central Government employees and pensioners in a series in 2012, 2013 and 2014, a demand was also placed for 5 years wage revision. Similar was the demand during constitution of 7th CPC which was not paid due attention by the Government. Contradictorily, the Chairman 7th CPC, in Para 1.22 of his forwarding report recommended that the matrix may be reviewed periodically without waiting for long period of 10 years. It can be reviewed and revised on the basis of Aykroyd formula which takes into consideration the changes in prices of the commodities that constitute a common man’s basket which the Labour Bureau at Shimla reviews periodically. It is suggested that this should be made the basis for revision of that matrix periodically without waiting for another Pay Commission.


 While the periodical review recommended as above has no sense at all without specifying a particular period, i.e. annually, biennially, triennially etc., there has been no review till date though 7th year is running in 2022 since implementation of the recommendations of the 7th CPC on 01.01.2016. Further, as replied by the concerned Minister of State to the above Unstarred Question, since the issue has not been considered by the Union Cabinet while according the approval for revision of pay and allowances based on 7th CPC, the above recommendations on review have not been implemented so far. Thus, the Union Government is playing dilly dally with more than one crore Central Government employees and pensioners for last 7 years.


 A technical analysis will reveal the serious lapses in timely constitution of the CPCs and implementation of the so called recommendations in time. When the 1st CPC was appointed in May 1946, its report was submitted in May 1947. The 2nd CPC was constituted just after 10 years in August 1957 which submitted its report in August 1959. But unfortunately, the 3rd CPC was appointed in April, 1970 which submitted the report in March 1973. Subsequently, the recommendations of 4th, 5th, 6th and 7th CPCs were implemented with effect from 01.01.1986, 01.01.1996, 01.01.2006 and 01.01.2016 respectively. Had the CPCs been constituted in a time gap of 10 years after implementation of the recommendations of the 1st CPC in 1947, the recommendations of the 2nd CPC to 7th CPC would have been implemented on 01.01.1957 (2nd), 01.01.1967 (3rd), 01.01.1977 (4th), 01.01.1987 (5th), 01.01.1997 (6th) and 01.01.2007 (7th) and by this time 8th CPC’s recommendations might have been over since 01.01.2017. Thus, when observed practically, the constitution of 8th CPC and implementation of its recommendations are already delayed by 5 years.


 Even if the Union Government considers 5 years wage revision for Central Government employees as demanded by the Confederation of the Central Government Employees and Workers, it is already overdue since 01.01.2021. Further, the recommendations of the 7th CPC are crystal clear for periodical review for revision of pay, allowances and pension without waiting for another Pay Commission.


 Thus, now, it is the moral responsibility of the Union Government to come forward for immediate revision of pay, allowances and pension of the Central Government employees without further plea in any manner failing which, more than one crore employees and pensioners will take to streets to achieve their genuine demands.  The trade union activities are going to get a greater momentum this time in association with many independent federations including the State Government employees.


 (The writer is general secretary, Confederation of Central Government Employees and Workers,  Odisha State Coordination Committee, Mob No. 9437022669)