Monday, September 30, 2024

The Fragility of the Digital World

 


The Fragility of the Digital World

Bruhaspati Samal

General Secretary

Confederation of Central Govt. Employees and Workers

Odisha State Coordination Committee


On July 19, 2024, the digital world came to a standstill as Microsoft experienced a massive outage that rippled across the globe. The ramifications were immediate and far-reaching. Businesses faced significant productivity losses and financial setbacks. Healthcare providers, dependent on cloud services for accessing patient data, found themselves in precarious situations. Educational institutions that relied on Microsoft Teams for virtual classes were forced to pause, disrupting students' learning schedules. Even consumer services such as Outlook, Teams, and OneDrive were inaccessible, severing communication channels and stalling collaborative efforts. The outage affected millions of users, halting business operations, disrupting communications, and exposing the deep vulnerabilities that lie beneath our reliance on cloud-based services. This disruption served as a stark reminder of how fragile our digital infrastructure can be, despite its seeming omnipresence.

It is needless to reiterate that in the 21st century, human life has become intricately connected to the digital world. Technology, especially the internet, has woven itself into nearly every aspect of daily life, creating a world where being offline seems almost impossible. According to a report by Statista, as of 2024, there are over 4.9 billion internet users globally, with social media platforms like Facebook, Instagram, and Twitter (now X) having over 4.8 billion active users. This shows that more than 60% of the world’s population relies on digital means to communicate and socialize, compared to just 1.7 billion people in 2010. The digital transformation in the workplace has been significant, especially post-2020 when the COVID-19 pandemic forced businesses to adopt remote working practices. According to a Gartner survey, by 2023, 48% of employees in large corporations were working remotely at least part-time. Additionally, e-commerce has exploded, with global e-retail sales reaching $5.9 trillion in 2023, making up 20% of total retail sales worldwide. Education has also seen a major shift, with online learning platforms becoming mainstream. As of 2023, over 220 million students worldwide were enrolled in online courses, according to UNESCO. The entertainment industry has been revolutionized by digital platforms. Streaming services like Netflix, YouTube, and Spotify dominate the industry, with Netflix alone boasting 238 million subscribers worldwide by mid-2024. Digital banking and payment systems have transformed the way financial transactions are conducted. A 2023 report by McKinsey noted that 78% of people in developed countries use digital banking services, with mobile payment apps like PayPal, Google Pay, and Apple Pay processing trillions of dollars annually. Crypto currencies have also gained traction, with Bitcoin's market capitalization reaching over $1 trillion in 2024. A WHO report from 2023 highlighted that 58% of global healthcare providers use telemedicine, which has become a lifeline for millions, especially in remote areas. The statistics show that human dependence on the digital world is profound and ever-increasing. Whether for communication, work, education, entertainment, financial transactions, or health, the digital world has become an integral part of daily life. This dependency is likely to deepen as technology continues to advance, reshaping human experiences in unprecedented ways.

Cloud computing has undoubtedly transformed the way organizations operate, offering unparalleled scalability and efficiency. However, this transformation has also created a dependency on a few dominant players in the tech industry, with Microsoft being a central figure. This outage highlighted the risks associated with this dependency. When one of these key players experiences a disruption, the effects are felt far and wide. The outage also underscored the broader issue of centralization in the digital world. This concentration of power poses a systemic risk: a failure in one company’s infrastructure can cascade through the global digital ecosystem, disrupting multiple sectors simultaneously. A malfunction—whether it be a hardware issue, software bug, or cyber-attack—can trigger a domino effect, leading to widespread outages. The complex nature of cloud architecture means that even a minor error in one part of the system can escalate quickly, affecting millions.  

It can be well imagined that the failure of the digital world would have catastrophic consequences. Global communication would collapse, crippling businesses, financial systems, and emergency services. Vital infrastructures like power grids, healthcare, and transportation, all reliant on digital systems, would face paralysis. The economy could plunge into chaos, with stock markets crashing and financial transactions halting. Social unrest could erupt due to the sudden loss of connectivity, access to information, and essential services. In a world so deeply embedded in digital dependency, such a failure could lead to widespread confusion, panic, and potentially, societal breakdown.

  The Microsoft outage is a reminder that our digital infrastructure needs to be robust, diversified, and prepared for potential disruptions. One key takeaway is the need for diversification. Businesses should consider spreading their cloud services across multiple providers to avoid being overly dependent on a single company. A multi-cloud strategy can reduce the risk of disruption from a single point of failure, providing a safety net in case one provider experiences issues. Disaster recovery planning is another crucial aspect. Organizations must have effective disaster recovery and business continuity plans to quickly respond to outages and minimize downtime. Regular testing and updates to these plans are essential to ensure they remain effective. Finally, transparency and communication from service providers during outages are vital. Users need timely and clear information about the nature of the disruption, the steps being taken to resolve it, and when services are expected to be restored. Effective communication can help manage user expectations and reduce the frustration that often accompanies such incidents.

  The Microsoft outage of July 2024 was a wake-up call for the digital world. It highlighted the vulnerabilities in our digital infrastructure and the need for greater resilience and preparedness. As we continue to embrace digital technologies, we must also acknowledge the risks and take proactive steps to mitigate them. Investing in cyber security, diversifying digital infrastructure, and ensuring robust disaster recovery plans are essential for building a resilient digital future. The incident also raises important questions about the concentration of power in the tech industry and the ethical implications of digital disruptions. As we move forward, these are issues that must be addressed to ensure the stability and security of our increasingly digital-dependent world.

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Confederation CHQ writes to the Finance Minister for declaration of DA/DR, PLB and Adhoc Bonus



Let the elderly lead fulfilling lives with care, respect


Let the elderly lead fulfilling lives with care, respect 

Bruhaspati Samal

General Secretary

Confederation of Central Govt. Employees and Workers

Odisha State Coordination Committee, Bhubaneswar


Every year on October 1st, the world comes together to observe the International Day of Older Persons. This day is dedicated to raising awareness about the unique challenges that elderly individuals face and promoting the development of a society that is inclusive of all age groups. As the global population of older persons rises, the urgency to address their needs has never been greater. While older adults contribute wisdom, experience, and guidance, many suffer from neglect, abuse, and lack of access to essential services. These challenges are further exacerbated by inadequate social protection systems, ageism, and socio-economic inequalities.

Globally, the elderly population is expanding rapidly. According to the United Nations, the number of people aged 60 years and older is projected to reach 2.1 billion by 2050, nearly doubling from 1 billion in 2020. Asia leads the world with around 630 million individuals aged 60 and above, while Europe follows with over 200 million, the highest proportion of elderly relative to the total population. Africa, though traditionally younger, is experiencing its own increase in elderly populations, with projections indicating 74 million older adults by 2050. The Americas, including the United States and Latin America, also face a growing number of elderly individuals, with countries like Brazil and Mexico feeling the strain of inadequate social systems to meet their needs.

India, home to over 140 million elderly people as of 2023, is facing a demographic shift that is adding to the urgency of addressing elder care. The elderly now make up more than 10% of India’s population, a number expected to grow to nearly 20% by 2050. This shift brings numerous challenges, particularly for a country where rapid urbanization and the disintegration of the joint family system are leaving many older persons without traditional support structures.

In India, many elderly people face multiple health-related issues, including chronic illnesses, disabilities, and mental health problems. The National Sample Survey (NSS) reports that 45% of older adults suffer from at least one chronic disease, with cardiovascular conditions, diabetes, arthritis, and cancer being particularly common. Mental health issues such as depression and anxiety are also widespread, yet often go undiagnosed due to societal stigma and lack of resources. Another significant challenge for India’s elderly is financial insecurity. The country lacks a robust social security system, with only about 10% of the workforce covered by formal pension schemes. This leaves the vast majority of elderly individuals reliant on their families or meager savings. In rural areas, where work opportunities are scarce and informal employment is common, older people are especially vulnerable. The absence of a universal pension system compounds the issue, pushing many elderly into financial hardship.

Additionally, the rapid urbanization in India has led to increasing isolation and loneliness among the elderly. The breakdown of traditional joint families means more older adults are living alone or in under-resourced old-age homes. Studies show that around 35% of elderly individuals in India experience loneliness, which can lead to mental health problems such as depression. Moreover, elder abuse remains a pressing issue. A report by HelpAge India revealed that 1 in 5 elderly individuals in the country faces abuse, which ranges from emotional neglect to physical and financial exploitation. Most of these cases go unreported, as many elderly individuals fear further alienation from their families or suffer from a societal stigma that discourages them from speaking out.

Ageism, or discrimination based on age, is another widespread issue affecting older persons around the world. In many societies, older adults are seen as a burden, leading to their marginalization and exclusion from social and economic life. This discrimination manifests in various ways, including reduced employment opportunities, limited access to essential services, and even neglect within families. United Nations data indicates that 50% of the global population holds ageist attitudes, contributing to the marginalization of older persons.

To address these growing challenges, governments and civil society must implement robust legal protections and policies that safeguard the rights of older persons and ensure their well-being. In India, for example, the Maintenance and Welfare of Parents and Senior Citizens Act of 2007 mandates that children and legal heirs are obligated to provide for their elderly parents, ensuring they are not neglected. The act also provides for the establishment of old-age homes and other welfare measures. However, despite these legal frameworks, enforcement remains a challenge, particularly in rural and economically disadvantaged areas. The responsibility for ensuring the well-being of older persons does not rest solely with governments; society as a whole must play a role. Strengthening family support systems is crucial, as is fostering a culture of respect and care for older individuals. Younger generations should be educated on the importance of elder care, and communities can develop programs to support the elderly. Volunteer organizations and local governments can collaborate to create age-friendly environments that promote inclusion and social engagement for older persons.

Investment in social services, particularly healthcare and pension systems, is essential. Governments must prioritize the expansion of universal pension schemes and provide better healthcare access tailored to the needs of older persons. Public health campaigns should also work to reduce the stigma associated with elder care and mental health issues. Technology can also play a pivotal role in addressing the challenges faced by older persons. Telemedicine services, digital literacy programs, and assistive devices can enhance access to healthcare and social services, particularly in remote or underserved areas. Governments and private sectors must invest in such technologies to bridge the gap in services available to elderly populations.

The International Day of Older Persons serves as a reminder that society must value and care for individuals of all ages, especially the elderly who have contributed significantly to our world. The problems they face—ranging from health and financial insecurity to isolation and discrimination—require comprehensive strategies to address them. By fostering a culture of respect, implementing strong legal protections, and ensuring robust social services, we can create a society that uplifts and supports older persons, allowing them to age with dignity and lead fulfilling lives.

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Thursday, September 19, 2024

The Pension Movement from NPS to UPS

 The Pension Movement from NPS to UPS

(A comparative study between OPS, NPS & UPS) 


Bruhaspati Samal

General Secretary

Confederation of Central Govt. Employees and Workers

Odisha State Coordination Committee, Bhubaneswar

eMail: samalbruhaspati@gmail.com

Mobile / WhatsApp No. 9437022669


Finally, the two decades of Pension Movement by all Central and State Govt. employees including teachers and pensioners across the Nation demanding to restore the Old Pension Scheme (OPS) and to scrap out the National Pension Scheme (NPS) introduced since 1st January, 2004 took another shape when the Union Cabinet, chaired by the Prime Minister Shri Narendra Modi approved a new pension system in the name of Unified Pension Scheme (UPS) on 24th August, 2024  guarantying an Assured Pension equivalent to 50% of the average basic pay drawn over the last 12 months prior to superannuation for a minimum qualifying service of 25 years which will  be proportionate for lesser service period up to a minimum of 10 years of service, Assured Family Pension equivalent to 60% of pension of the employee immediately before her/his demise and Assured Minimum Pension of Rs.10,000 per month on superannuation after minimum 10 years of service. On Assured Pension, Assured Family Pension and Assured Minimum Pension, Dearness Relief based on All India Consumer Price Index for Industrial Workers (AICPI-IW) as in case of service employees will be there. Lump sum payment at superannuation in addition to gratuity will be given equivalent to 1/10th of monthly emoluments (Pay + DA) as on the date of superannuation for every completed six months of service which will not reduce the quantum of assured pension. 


Soon after the Press Release of UPS while negligible positive responses are there from those supporting the BJP led NDA Govt., all the Central Trade Unions, Service Unions / Associations / Federations / Confederations involved in the pension movement for last 20 years have condemned the arbitrary action of the Govt. and released Press Notes demanding restoration of OPS.


The movement to restore OPS started from the very moment of introduction of the NPS through an Executive Order by the BJP led NDA Govt. on 22nd December, 2003. The Confederation of Central Govt. Employees and Workers with the support of as many as 126 Unions / Associations / Federations under its affiliation having more than 1.5 crores workers, employees and pensioners across the Nation vehemently opposed it.  Subsequently, many other independent federations and Central Trade Unions extended their solidarity to the movement. Several new organizations formed with the support of NPS beneficiaries later jumped to the movement. The matter was severally discussed in the National Council JCM. Being pressurized continuously, though the Govt. brought some changes in NPS like Family Pension, DCRG, partial withdrawal including increasing its own contribution from 10% to 14%, the same couldn’t appease the employees who only demanded restoration of OPS in toto. Subsequently, the National Council of Joint Action (NJCA) was formed comprising the Railway Federations, Confederation of Central Govt. Employees and Workers, All India State Govt. Employees Federation, All India Teachers Federation and Para-military Pensioners Association etc and the Pension Movement was accelerated from December 2022 which compelled the Central Govt. to constitute a Pension Committee under the Chairmanship of the Finance Secretary to improvise the NPS. When no positive solution did come out after several discussions with the Pension Committee, the Joint Forum of Restoration of OPS under the banner of NJCA submitted memorandum to the President, Prime Minister, Finance Minister and the Cabinet Secretary of India to go on indefinite Strike from 1st May, 2024. With the intervention of the Prime Minister of India, it was assured to the Staff Side to consider their suggestions in favour of the employees. The proposed strike was postponed.


The most unfortunate thing during the last two decades of uncompromising struggle of the employees is that the BJP led NDA Govt. arbitrarily introduced the NPS in the absence of any Act clearly violating the constitutional provisions guaranteed under CCS (Pension) Rules, 1972, now 2021 and  the historic judgement dated 17th December, 1982 of the Hon’ble Supreme Court of India in D S Nakra versus Union of India which categorically states, inter alia, "Pension is neither a bounty, nor a matter of grace depending upon the sweet will of the employer, nor an ex-gratia payment”. Going one step ahead, the Congress led UPA-I Govt. after coming to power in May 2004 brought the Pension Fund Regulatory Development Authority (PFRDA) Bill in 2005 which couldn’t be materialized due to strong opposition by the left party MPs supporting the Govt. at that point of time. After withdrawal of their support from the UPA-I Govt., the UPA-II Govt. reintroduced the above Bill in 2011 and could be able to pass the same with the support of NDA MPs on 19th September 2013 and implemented PFRDA Act 2013 on 1st February, 2014.  Again when BJP led NDA Govt. came to power in May 2014, it continued to run the NPS accusing the Congress led UPA Govt. During the 20 years of continuous struggle for restoration of OPS both the UPA Govt. and NDA Govt. were / are in power for 10 years each. Had the UPA Govt. shown little interest for employees’ welfare in protecting the social security of the pensioners, it could have been refrained from bringing the PFRDA Bill / Act and thus, there would have not been any possibility of UPS. So both Congress (UPA) and BJP (NDA) are equally responsible to snatch away the constitutional rights of the employees and pensioners.


Under the circumstances, the above decision of introducing UPS is just a bolt from the blue for the employees and pensioners since except restoration of OPS, nothing such as UPS was there in the agenda. Witnessing the result of the relentless struggle for last 20 years in vain, the entirety of workers, employees and pensioners of both the Central and State Govt. are getting annoyed. Now all the Service Unions / Associations / Federations / Confederations including Central Trade Unions are determined to accelerate the Pension Movement once again till OPS is restored. 


We have given a Table of Comparison which aptly speaks the positive aspects of OPS and negative aspects of both the NPS and UPS so far as social security to a pensioner is concerned. UPS is not the exact substitute of OPS as demanded. Though it has guaranteed Assured Pension, Assured Minimum Pension and Assured Family Pension, it is still contributory. 10% of the Basic Pay plus DA of the employee will be deducted per month as is being done under NPS. However, the Govt.’s share is likely to rise from present 14% to 18.5% of the Basic Pay plus DA of the employee.


India, with its vast and diverse population, has always faced the challenge of ensuring social security for its workforce. One of the most contentious issues in this domain has been the transition from the OPS to the NPS, now more commonly referred to as the UPS, a hybrid model of OPS and NPS. This shift has led to significant unrest among government employees, sparking numerous protests and struggle movements across the country.  The success of the proposed UPS depends on its implementation and acceptance by the workforce. The government will need to strike a delicate balance between fiscal responsibility and social security to ensure that the interests of both the state and its employees are protected. As India continues to evolve, the debate over pension schemes is likely to remain a contentious issue, with employees and their unions continuing to fight for what they perceive as their rightful dues. The outcome of this struggle will have significant implications not just for the future of pension schemes in India, but also for the broader relationship between the state and its employees.


A Comparison between OPS, NPS and UPS

Parameter

Old Pension Scheme (OPS)

National Pension Scheme (NPS)

Unified Pension Scheme (UPS) (Proposed)

Type of Scheme

Defined Benefit Scheme

(Non-contributory)

Defined Contributory Scheme

Hybrid Scheme (OPS+OPS) 

Minimum  service for full pension

20 years

Not Applicable

25 years

Minimum service to get pension

10 years

Not Applicable

10 years

Minimum Pension

9000

Not Applicable

10000

Pension Calculation

50% of the last pay drawn or average of last 10 months salary whichever is higher

Based on contributions and market returns

Guaranteed minimum pension (50% of last 12 months average salary) + market-linked returns

Government Contribution

100% (Government-funded)

14% of basic salary + dearness allowance

18.5% of basic salary + dearness allowance

Employee Contribution

No contribution required

10% of basic salary + dearness allowance

Same as NPS (10% of basic salary + dearness allowance)

Inflation Adjustment

Yes, pension is adjusted for inflation (Dearness Allowance - DA)

No automatic adjustment for inflation

Likely to include inflation-linked adjustments as OPS

Family Pension

Yes. Normal pension continues up to 67 years if the Pensioner dies before 67 and thereafter 30% of the normal pension.  

No guaranteed family pension

Proposed to include a guaranteed family pension.

60% of the 50% of last basic pay drawn as normal pension, i.e. 30% from the beginning

GPF

Yes

No

No

Gratuity

Yes

No

Yes

Commutation 

Yes

Not Applicable

No

DCRG

Yes

Yes

Yes

Increase in Pension

Additional pension of 20% at the age of 80, 30% at 85, 40% at 90, 50% at 95 and 100% at the age of 100 i.e Pension will be doubled at the age of 100

No such provision

No such provision

Market Risk

No market risk, as pension amount is fixed

High market risk, as pension depends on market performance

Reduced market risk due to guaranteed minimum pension

Withdrawal and Vesting

Pension starts immediately upon retirement, no withdrawal before retirement

Limited withdrawal (60% of the corpus) allowed before retirement;  

No withdrawal proposed. Entire corpus (10% of the employees + 18.5% of Govt.) may be retained.

Portability

Not portable between jobs

Portable between jobs

Expected to be portable like NPS

Financial Burden on Government

High, due to long-term liabilities

Reduced, as the burden is shared with the employee

Balanced approach, reducing burden while ensuring minimum security

Coverage

Central and state government employees who joined before 2004

All central and state government employees joining after January 1, 2004

Likely to cover all NPS members with additional benefits from1st April 2025.

Security and Assurance

High security, guaranteed pension

Low security, uncertain pension based on market performance

Moderate security, with a guaranteed minimum pension and market-linked benefits

Cost of Living Adjustments

Yes, adjusted to cost of living (through DA)

No automatic adjustments

Proposed to include cost of living adjustments

Legacy Issues

High government liability over time

Lower liability due to shared risk

Aims to balance legacy issues with employee satisfaction

 

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