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Ref.: Com /EC/26/
2009-12
March 9, 2010
All Office Bearers & E.C. Members
Sub :
GRATUITY CEILING
We reproduce hereunder the full text of
AIBOC Circular No.28 dated 8th March, 2010 on the above
subject for information of all concerned.
Sd/-
S Roy Choudhury
General Secretary
Quote
“Consequent upon enhancement of gratuity
ceiling from Rs.3.5/- lacs to Rs.10/- lacs (maximum) with effect from
01.01.2006 to Central Govt. employees as a part of 6th Pay
Commission recommendations, by an administrative order, we took up the
matter with the then Hon’ble Union Minister of State for Finance Shri.
Pavan Kumar Bansal and the then Hon’ble Union Labour Minister Shri.
Oscar Fernandes for enhancement of the Ceiling of Gratuity to Rs.10/-
lacs through an amendment to Payment of Gratuity Act 1972 with effect
from 01.01.2006. The undersigned along with Com.T.N.Goel, Jt.General
Secretary, AIBOC met both the Ministers at Delhi and presented our
case. Both of them assured us to do the needful in the matter. On
account of declaration of Lok Sabha elections, the matter remained
unresolved.
2. After installation of the 15th
Lok Sabha, once again we took up the matter with the ministry. The
undersigned met Hon’ble Union Labour and Employment Minister Shri.
Mallilkarjuna Kharge at Bangalore and also the Hon’ble Union Minister of
State for Labour and Employment Shri. Harish Rawat at Delhi along with
Com.T.N.Goel and submitted our memorandum on the issue. We also wrote a
letter to the Hon’ble Finance Minister, Government of India. We
continued our vigorous followup with the ministries to impress upon them
to move the bill in the winter session of the Parliament. We came to
know that, there was a stiff opposition from the Private Sector
employers and Corporates for enhancement of the gratuity ceiling.
Therefore, though Central Govt. was inclined to move the bill in the
Parliament, it could not materialize.
3. We are glad to understand that,
the Central Govt. Cabinet has cleared the proposal of enhancement in
gratuity ceiling to Rs.10/- lacs. The bill after clearance from the law
ministry will be placed before the Parliament by the Hon’ble Union
Labour Minister for amendment to the Payment of Gratuity Act 1972. The
amendment will cover Private Sector employees and all those coming under
Payment of Statutory Gratuity. The maximum ceiling is proposed at
Rs.10/- lacs. The date of effect may be decided by the Parliament.
4. Comrades, we have reached the
present state of getting approval of the Cabinet through our continued
and persistent followup with the concerned authorities. We hope that,
the bill will be moved in the current budget session of the Parliament.
We are following up the matter with the Govt. We shall advise the
members of further developments later.
With greetings,
Sd/-
(G.D.NADAF)
GENERAL SECRETARY”
Unquote
Ref.: Com /EC/ 21 /
2009-12
February 26, 2010
All Office Bearers & E.C. Members
Re.: TALKS WITH IBA UNFRUITFUL
We reproduce hereunder the full text of
AIBOC Circular No.16 dated 26th February, 2010 on the above
subject for information of all concerned.
Sd/-
S Roy Choudhury
General Secretary
Quote
“One more round of discussions with IBA
was held on 25/02/2010 at Mumbai to decide on distribution of wage load
of 17.5% and other related factors. Four Officers’ Organizations went in
a delegation to Shri K. Ramakrishnan CEO of IBA and submitted a common
proposal on distribution of wage cost on various components of salary
and allowances to the IBA, and requested for an early settlement. We
also requested the IBA to draw the final settlement on pension and
residual issues simultaneously, within the time frame fixed. He too
expressed his concern on undue delay in arriving at final settlement and
assured to expedite the matter.
2. Therefore the discussions with the
core committee of the IBA commenced in a cordial atmosphere. The IBA
core committee was represented by Shri. Jagadish Pai, B.B. Das, Rajeev
Rishi, Unnikrishnan and Venugopalan. After opening remarks from the
Chairman of the Core Committee, we presented our response on the IBA’s
proposal of 23/01/2010 and briefed on the basis of our proposal in
distribution of the cost.
3. In our proposal, we have taken
care to distribute the wage load in an equitable manner to all scales
from JMGs-I to Scale VII. The HRA percentage retained as comparable to
workman staff. Additional cost on pension, House Rent Allowance etc.,
are calculated on a scientific basis. The date of effect of pension to
CPF optees is assumed as from retrospective date. As more number of
officers are stagnated at lower level of scales, a provision for
additional two stagnation increments for officers in Scale-I to Scale IV
was also suggested by us. We ensured to avoid anomalous situation in
pay scales, and incremental pattern as compared to the workmen scales
etc.
4.
Unfortunately, on none of our proposals, there was a positive
response form the IBA and they stuck to their method of calculation of
additional cost on HRA, pension and distribution of wage load of 17.5%
on various scales. It appeared that, we have reached a dead end. The
discussions concluded without any fruitful result.
5.
Thereafter, we shared the information with our small committee
and other leaders and decided to seek appointment with the Chairman of
IBA to present our views. We also felt that, as avoidable delay is
causing much frustration among the rank and file, we should keep them
advised of factual position and be in readiness to take the issue to its
logical end without loss of further time. Accordingly, we communicated
to our members the outcome of the discussions through SMS. We have also
communicated to the Chairman of the IBA our concern on the stalemate,
and requested for his intervention and an appointment with him to
explain our stand, at the earliest. We propose to meet him in the next
week.
6.
Comrades, it appears that, IBA feels that it is their prerogative
to decide on the pay scales and method of calculation of additional cost
required for various components of salary and allowances out of 17.5%
wage hike. We can not accept their proposals as it has to be done
through bilateral discussions to avoid heartburn and anomalous situation
within officers’ cadre and also in comparison with workmen staff. We
have to take care of the aspirations of large number of our membership
who have stagnated in their respective scales and their career
progression. We are confident of convincing IBA on the line of the
distribution of wage cost, but things can not be taken for granted. The
time at our disposal is very short. Hence, we request our membership,
to be in readiness for organizational action, if the situation demands.
We shall advise further developments, after meeting the Chairman IBA. We
also request our membership to bear with the situation as it is our
intention to ensure justice to all category of officers in distribution
of wage cost equitably, among all components of salary and allowances.
With greetings.
Sd/-
(G.D. NADAF)
GENERAL SECRETARY” Unquote
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