Shri Mallikarjun Kharge, Labour Minister, has stated that the Contract Labour Act will be changed to extend all benefits of the regular workers to the contract workers.Well Indeed.
What is happening in most of the industries and government departments is that even the provisions in the Contract Labour Act are not being implemented by the employers. Take for example the BSNL, a PSU formed out of the government department.
In BSNL in most of the places the Minimum Wage announced by the Central Government is not implemented. The Social Security measures like EPF, ESI etc. are not implemented. In many places, even the records are not maintained. The Bonus has been denied. Workers are being retrenched by the employer. There is no intervention by the government despite the facts brought to it’s notice.
Contract Labour Act changes on the anvil – Labour Minister
18 Tuesday Oct 2011
Posted in Uncategorized
VAN Namboodiri's Blog 
the media men is biting the rate,also a big corruption activities done on the name of contract passing,top to bottom administrators are involved in this contract system,stop contract system,provide alternative way,if the excess workers are in the firm,give permanent job to r,m,for seewping work,sedentary works ,also a big evil born in bsnl,business assistant,the work done by official on duty,department pay extra commission and bringing a huge loss!avoid contract system in all governments system for better out put!too many cooks spoil the broth!bring v.r.s or avoid irregularity for healthy future!a little knowledge is danger for future avoid key operated toys!
Signature campaign of PFRDA.pdf (application/pdf Object)
http://www.bsnlnewsbyashokhindocha.blogspot.com M-09426254999
Petiitiion addressed to the Priime Miiniister for Siignature
campaiign
To,,
The Priime Miiniistter off IIndiia,,
New Dellhii
Siirr,,
We submii tt tthiis Pett ii tt iion tto brr iing tto yourr k iind nott iice and tthrrough yourr good off ff iice
tto tthe att ttentt iion off tthe Honorrablle Parr ll iiamenttarr iians off ourr countt rry cerr ttaiin
aspectts off tthe rre– iintt rroduced PFRDA bii ll ll ,, whiich wii ll ll have adverrse iimpactt on tthe
exchequerr iin generrall and on tthe prrevaii ll iing serrviice condii tt iions off tthe Ciivii ll
Serrvantts .. We prray tthatt ourr submiissiions iin tthiis rregarrd may pllease be caused tto
be consiiderred earrnestt lly and tthe iimpll iicatt iion off tthe prroviisiions off tthe bii ll ll crr ii tt iicall lly
anallyzed and examiined and ttake deciisiion tto k iindlly wii tthdrraw tthe Bii ll ll ff rrom tthe
Parr ll iiamentt ..
We submii tt tthe ffoll llowiing fforr yourr crr ii tt iicall and objjectt iive anall ysiis off tthe Bii ll ll ::
1.. The Conceptt off olld age securr ii tty fforr ciivii ll serrvantt iin tthe fforrm off pensiion has
a verry anciientt orr iigiin datt iing back as earr lly as tthii rrd centturry BC,, tthe quanttum
beiing hall ff off tthe wages on compllett iion off fforr tty yearrs bllemiishlless serrviice tto
tthe k iing..
2.. IIn tthe llas tt centturry,, one off tthe measurres ttaken by tthe colloniiall rrullerrs tto
att tt rrac tt ttallentted perrsonnell tto tthe rroyall serrviice was tthe iintt rroductt iion off
pensiion scheme fforr ciivii ll serrvantts iin 1920.. The Royall commiissiion tthrrough
ii tts varr iious rrecommendatt iions iimprroved tthe scheme and tthe 1935
Goverrnmentt off IIndiia Actt prroviided ii tt s ttattuarry stt rrengtth..
3.. The lland marrk jjudgmentt off tthe Suprreme Courr tt iin D..S.. Nakarra and ottherrs
Vs.. Uniion off IIndiia ((AIIR–1983–SC–130)) ((appll iicablle tto tthe Centt rrall and Sttatte
Goverrnmentt emplloyees,, tteacherrs ,, and all ll sttake hollderrs off pensiion systtem))
concepttuall iized pensiion sttatt iing tthatt pensiion iis neii ttherr a bountty norr a grrace
besttowed by tthe sweett wii ll ll off tthe emplloyerr ,, butt a paymentt fforr tthe pastt
serrviices rrenderred.. II tt was constt rrued as a rr iightt sttep ttowarrds sociio–economiic
jjustt iice and a concrrette assurrance tto tthe eff ffectt tthatt tthe emplloyee iin hiis olld
age iis nott lleff tt iin tthe llurrch..
4.. The ff ii ff tth Centt rrall Pay Commiissiion whiich was sett up by tthe GOII iin 1993 tto
go iintto tthe wage s tt rruc tturre and pensiion scheme off tthe Centt rrall Goverrnmentt
emplloyees rrefferr rr iing tto tthe Judgmentt off tthe Suprreme Courr tt cii tted,, obserrved
((Parra 127..6)) tthatt ““pensiion iis tthe sttattuttorry,, iinall iienablle and llegall lly
enfforrceablle rr iightt earrned by tthe cii vii ll serrvantt by tthe sweatt off tthe brrow and
beiing so mustt be ff iixed,, rreviised,, modii ff iied and changed iin tthe way nott
diissiimii llarr tto sallarry grrantted tto serrviing emplloyees.. ””
5.. The guiidiing prr iinciiplle adoptted iin detterrmiiniing off pay package off ciivii ll
serrvantts iis tto sprread outt tthe wage compensatt iion overr a llong perr iiod off tt iime
wherreby wages paiid outt durr iing tthe worrk ttenurre iis llow iin orrderr tto eff ffectt
paymentt off pensiion off rrett ii rrementt .. As such ciivii ll serrviice pensiion iis rr iightt ll y
tterrmed as defferr rred wage.. Whii lle iin tthe orrganiized prr iivatte secttorr tthe
emplloyerr iis rrequii rred tto contt rr iibutte equall sharre tto tthe Prroviidentt Fund off tthe
emplloyees,, tthe Goverrnmentt neii ttherr contt rr iibuttes tto tthe Prroviidentt Fund off tthe
ciivii ll serrvantts norr ttakes any pensiion subscrr iiptt iion ff rrom hiim..
6.. IIn an unwarr rrantted iintterrventt iion iin tthe Sttattuttorry deff iined beneff ii tt Pensiion
sys ttem,, tthe IIMF iin ttheii rr worrk paperr ((WP//01//125,, ((2001)) prropounded tthe
crreatt iion off a pensiion ffund by ell iicii tt iing ff rrom tthe Wage earrnerrs att tthe earr ll iiestt
sttage off ttheii rr emplloymentt so as tto ffettch an annuii tty decentt enough tto
susttaiin hiim att tthe olld age.. IIn ffactt ii tt was a suggestt iion fforr a rrett rrogrrade
change overr ff rrom tthe deff iined beneff ii tt pensiion scheme tto a deff iined
contt rr iibuttorry s ys ttem.. Whii lle suggestt iing so,, tthey have cattegorr iicall lly sttatted
tthatt IIndiia does nott suff fferr demogrraphiic prressurre experr iienced by majjorr
countt rr iies,, fforr IIndiia’’s popullatt iion beyond tthe age off 60 was aboutt 7% iin 2004
ch rrose tto 8..6% iin 2010 and iis estt iimatted att 13..7% iin 2030 and 20% iin
2050..
7.. The New contt rr iibuttorry pensiion scheme enunciiatted by tthe Goverrnmentt off
IIndiia and adoptted by mostt off tthe Sttatte Goverrnmentts iis coverred by tthe
PRFDA bii ll ll .. The bii ll ll iintterr all iia,, enviisages a sociiall securr ii tty scheme fforr all ll
who desii rre tto have an annuii tty att hiis olld age whiich iis vollunttarry and nott
mandattorry.. Howeverr ,, iin tthe case off Ciivii ll Serrvantts ,, who arre rrecrruii tted tto
Goverrnmentt serrviice aff tterr tthe prrescrr iibed cutt –off ff datte(( 1..1..2004 iin GOII
serrviice)) tthe scheme iis mandattorry iin as much as tthe emplloyees iis bund tto
subscrr iibe 10% off hiis emollumentts tto tthe Pensiion Fund and tthe Govtt .. beiing
tthe emplloyerr woulld contt rr iibuttes equall amountt .. No emplloyee iis entt ii tt lled tto
optt outt off tthe scheme..
8.. Despii tte tthe iinabii ll ii tty tto brr iing iin a vall iid enacttmentt ,, tthe Centt rrall and all ll Sttatte
Goverrnmentts ottherr tthan tthose off Westt Bengall ,, Kerralla and Trr iipurra tthrrough
ii ll llegall executt iive orrderrs deciided tto iimpose tthe contt rr iibuttorry pensiion systtem
arrbii tt rrarr ii ll y on tthe Centt rrall and Sttatte Goverrnmentt emplloyees.. Whii lle tthe Govtt ..
off IIndiia nott ii ff iicatt iion exclluded tthe perrsonnell iin tthe arrmed fforrces and parra–
mii ll ii ttarry es ttabll iishmentts,, tthe Goverrnmentts off tthe Leff tt rrulled Sttattes off Westt
Bengall ,, Kerralla and Trr iipurra consciiouslly contt iinued wii tth tthe exiistt iing deff iined
beneff ii tt pensiion systtem..
9.. The PRFDA Bii ll ll stt iipullattes tthatt ttherre wii ll ll nott be any expll iicii tt orr iimpll iicii tt
assurrance off tthe beneff ii tt exceptt marrkett based guarranttee.. The subscrr iiberr iis
tthus exposed tto tthe ffoll llowiing rr iisk s att tthe exii tt ..
a)) II ff ttherre iis a majjorr marrkett shock ,, tthe subscrr iiberr tto tthe New Pensiion scheme
may end wii tth no abii ll ii tty tto purrchase an annuii tty..
b)) Siince annuii tty iis and cannott be costt iindexed,, tthe rreall worr tth off tthe annuii tty
miightt ffall ll dependiing upon tthe iinff llatt iionarry prressurre on tthe economy..
c)) As perr tthe scheme,, tthe subscrr iiberr iis tto make tthe choiice off iinvesttmentt
porr tt ffoll iio.. The Ciivii ll Serrvantt beiing mostt lly uniinfforrmed iin ff iinance and
iinvesttmentt rrellatted matt tterrs ,, he miightt end up iin mak iing wrrong choiices whiich
woulld eventtuall lly rrob hiim off tthe olld age pens iion..
d)) The subscrr iiberr iis perr fforrce tto contt rr iibutte tto tthe charrges off tthe iinvesttmentt
managerrs,, whose prr iiorr ii tty off tten iis as tto how much prroff ii tt tthey coulld make
tthrrough iinvesttmentt off tthe huge corrpus off pensiion ffund iin tthe vollatt ii lle sharre
marrkett ..
10.. The pensiion ffund crreatted by tthe emplloyees’’ subscrr iiptt iion and tthe
emplloyerrs ‘‘contt rr iibutt iion whiich dii rrectt lly ff llows ff rrom tthe exchequerr ((whiich iis
notthiing butt ttax rrevenue off tthe Govtt .. )) iis made avaii llablle fforr tthe sttock
marrkett operratt iions whiich iis nott onlly unetthiicall butt allso bllattantt diiverrsiion off
publl iic ffund fforr prr iivatte prroff ii tt ,, botth Forreiign and IIndiian capii ttall iistts..
11.. IIn tthe case off Ciivii ll Serrvantts rrecrruii tted aff tterr tthe cutt –off ff datte,, tthe new
scheme rrepllaces tthe exiistt iing much bett tterr ““deff iined beneff ii tt ”” pensiion
scheme.. IIn tthe prrocess,, tthe Goverrnmentt has crreatted ttwo cllasses off ciivii ll
serrvantts viiz.. tthe one wii tth a deff iined beneff ii tt pensiion scheme and tthe ottherr
wii tth tthe contt rr iibuttorry pensiion scheme iin whiich tthe emplloyee iis tto parr tt wii tth
10% off hiis emollumentts tto become entt ii tt lled fforr an olld age sociiall securr ii tty
subjjectt tto tthe vagarr iies off sharre marrkett perrmii tts.. Siince iin botth tthe case,, tthe
pay,, all llowance,, perrk s,, and ottherr beneff ii tts,, prr iivii lleges,, dutt iies and
rresponsiibii ll ii tt iies arre tthe same ii tt amountts tto wantton diiscrr iimiinatt iion off one
agaiinstt anottherr whiich iis nott susttaiinablle iin llaw,, rrattherr viiollatt ii ve off tthe
exiistt iing constt ii ttutt iionall prroviisiions..
12.. The wage stt rructturre prresentt lly desiigned fforr tthose who arre rrecrruii tted prr iiorr
tto tthe cutt –off ff datte and aff tterr iis on tthe same prremiise and iis deprressed tto
enablle tthe Govtt .. tto meett tthe pensiion ll iiabii ll ii tty iin ffutturre.. By iimposiing tthe new
contt rr iibuttorry pensiion scheme on tthe emplloyees who arre rrecrruii tted aff tterr tthe
cutt off ff datte tthe Govtt .. nott onlly deniies tthe sttattuttorry deff iined pensiion beneff ii tt
tto tthem butt allso compell tthem tto contt rr iibutte off earrniing an undeff iined annuii tty,,
whiich mustt be charrac tterr iized as hiighlly diiscrr iimiinattorry..
13.. Those who arre coverred by tthe contt rr iibuttorry pensiion scheme wii ll ll become
entt ii tt lled fforr an annuii tty,, a porr tt iion off tthe accumullatted contt rr iibutt iion iis ablle tto
purrchase,, basiing upon tthe acc rrett iion tto tthe ffund ff rrom tthe iinves ttmentt .. Therre
iis,, howeverr ,, no guarrantteed miiniimum amountt off pensiion fforr tthose who arre
coverred by tthe new scheme,, wherreas tthe ciivii ll serrvantts coverred by tthe
exiistt iing scheme do gett a deff iined and guarrantteed miiniimum pensiion and on
hiis deatth hiis ffamii lly memberrs ((wii ffe,, wiidowed and unmarr rred daughtterrs and
unemplloyed sons bellow tthe age off 25)) become entt ii tt lled fforr ffamii lly pensiion..
The diiscrr iimiinatt iion ffacttorr iis tthus compounded..
14.. The PFRDA Bii ll ll when enactted,, ii tt iis rr iightt lly ffearred,, wii ll ll empowerr tthe
Goverrnmentt tto all tterr orr even deny tthe prresentt emplloyees and pensiionerrs
tthe sttattuttorry deff iined pensiion beneff ii tt as has been done iin tthe case off tthose
who arre appoiintted aff tterr tthe cutt –off ff datte..
15.. II tt iis sttatted tthatt tthe prr iime objjectt iive off tthe iintt rroductt iion off tthe contt rr iibuttorry
pensiion scheme iis tto substtantt iiall lly rreduce tthe outt ff llow on ac countt off
pensiion ll iiabii ll ii tty.. The majjorr pensiion ll iiabii ll ii tty off Goverrnmentt iis accountted fforr
by Arrmed Defface perrsonnell .. They arre howeverr exclluded ff rrom tthe purrviiew
off tthe contt rr iibuttorry pensiion scheme.. The perrsonnell iin tthe Parra Mii ll ii ttarry
fforrces arre allso exclluded ff rrom tthe ambii tt off tthe new Scheme.. Whii lle doiing
so,, ((no doubtt tto att tt rrac tt tthe peoplle tto serrve iin tthe arrmed fforrces fforr securr ii tty
fforr tthe Natt iion)) tthe Govtt .. iis bound tto meett tthe pensiion ll iiabii ll ii tty ff rrom tthe
consoll iidatted ffund off IIndiia.. The arrgumentt advanced by tthe Govtt .. tto coverr
tthe Ciivii ll Serrvantts iin tthe ambii tt off tthe new Pensiion scheme has been ffound
tto be unsusttaiinablle by tthe sttudy commiis siioned by tthe 6tt h CPC.. Shrr ii ..S..
Chiidambarram,, Acttuarry,, iin hiis rreporr tt ,, ((Annexurre tto ““A sttudy off Terrmiinall
beneff ii tt off Centt rrall Goverrnmentt emplloyees by Dtt .. K.. Gayatt rr ii ,, Centt rre fforr
Economiic Sttudiies and poll iicy,, IInstt ii ttutte fforr Sociiall and Economiic change,,
Nagarrbhavii ,, Bangallorre)) has poiintted outt tthatt tthe Goverrnmentt ll iiabii ll ii tty on
accountt off contt rr iibuttorry pensiion scheme woulld iin eff ffectt iincrrease fforr a
perr iiod spanniing fforr tthe nextt 34 yearrs ff rrom tthe exiis tt iing Rs..14,,284 Crr .. tto
Rs..57,,088 Crr .. ((2004–2038)) and iis ll iikelly tto ttaperr off ff onlly ff rrom 2038
onwarrds.. The exchequerr iis bound tto have an iincrreased outt ff llow fforr tthe nextt
34 yearrs and wii ll ll be call lled upon tto bearr tthe acttuall pensiion ll iiabii ll ii tty off
deffence perrsonnell and perrsonnell off parra mii ll ii ttarry fforrces ,, besiides makiing
tthe contt rr iibutt iion tto tthe Pensiion ffund off tthe Ciivii ll serrvantts rrecrruii tted aff tterr tthe
cutt off ff datte.. The speciious pllea tthatt tthe exchequerr iis bound tto gaiin due tto
tthe contt rr iibuttorry pensiion scheme iis ttherrefforre nott borrne ff rrom ffac tts..
16.. Off tthe prresentt pensiion ll iiabii ll ii tty off tthe Govtt .. off IIndiia,, whiich iin 2004–05
was 0..51% off tthe GDP,, 0..26% iis accountted fforr by tthe Deffence ((whiich iis
50% off tthe ttottall pensiion ll iiabii ll ii tty.. )) The sttudy rreporr tt off tthe Centt rre fforr
Economiic Sttudiies has conclluded tthatt tthe pensiion ll iiabii ll ii tty as a perrcenttage
tto GDP whiich iis jjustt 0..5% prresentt ll y iis ll iikelly tto decll iine giiven tthe grrowtth
rratte off IIndiian economy..
17.. Siince mostt off tthe Sttatte Goverrnmentts have chosen tto swii ttch overr tto
““contt rr iibuttorry pensiion scheme”” ,, iin ffaii rrness (( ff rrom tthe Sttudy conductted by tthe
Centt rre fforr Economiic Sttudiies and poll iicy)) ii tt can be conclluded tthatt tthe
pensiion ll iiabii ll ii tty off all ll tthe Sttatte Goverrnmentts arre bound tto iincrrease tto tthrree
tt iimes off whatt iis ttoday by 2038..
18.. The ff ii rrstt verrsiion off tthe PFRDA Bii ll ll was pllaced befforre tthe Parr ll iiamentt by
tthe NDA Goverrnmentt iin 2003.. The 6tt h CPC sett up tthe Commii tt ttee tto go iintto
tthe ff iinanciiall iimpll iicatt iion on accountt off tthe iincrreasiing numberr off pensiionerrs
and suggestt all tterrnatt iive ffundiing metthodollogy iin 2006.. The saiid Commii tt ttee
came tto tthe iinescapablle concllusiion (( rrepott submii tt tted iin 2007)) tthatt ““ tthe
exiistt iing sys ttems off pensiion arre iincrreasiinglly becomiing compll iicatted aff tterr
tthe iintt rroductt iion off tthe New Pensiion scheme”” and warrned tthatt ““cautt iion has
tto be exerrciised iin iinii tt iiatt iing any ffurr ttherr rrefforrms”” .. IIn tthe ll iightt off tthe
concllusiion off tthe saiid sttudy rreporr tt whiich rrevealled tthe ffactt off serr iious
escallatt iion iin tthe pensiion paymentt outt ff llow,, tthe rratt iionalle off tthe rre–
iintt rroductt iion off tthe PFRDA bii ll ll iin 2011 coverr iing tthe ciivii ll serrvantts iis
iincomprrehensiiblle,, Undoubttedlly,, tthe Bii ll ll when enactted iintto llaw wii ll ll tthrrough
tthe exiistt iing pensiionerrs tto a ff iinanciiall lly iinsecurre ffutturre and tthe exiistt iing
worrkerrs tto tthe vagarr iies off tthe sttock marrkett .. We,, ttherrefforre,, earrnestt lly prray
tto yourr good–sell ff tto brr iing back all ll tthe ciivii ll serrvantts iinclludiing tteacherrs
ii rr rresespectt iive off tthe datte off entt rry iintto Goverrnmentt serrviice as allso tthose
ii rr rregullarr lly appoiintted wii tthiin tthe ambii tt off tthe exiistt iing sttattuttorry deff iined
pensiion beneff ii tt scheme..
We may,, iin ff iine,, quott iing tthe conclludiing parragrraph ((Page 76 off tthe rreporr tt off tthe
Centt rre fforr Economiic Sttudiies and Poll iicy — IInstt ii ttutte fforr Sociiall and Economiic
Change)) off tthe Commii tt ttee sett up by tthe 6tt h CPC..
“Maiinlly giiven tthe ffactt tthatt tthe ffutture ll iiabii ll ii tty all tthough may be llarge
iin tterms off absollutte siize iis nott ll iikelly tto llastt very llong and does nott
constt ii ttutte an allarmiinglly biig share off tthe GDP whiich iis allso on tthe
decll iine.. II tt appears tthatt pursuiing tthe exiistt iing ‘‘Pay as you go’’ tto meett
tthe ll iiabii ll ii tty wii ll ll be an iideall sollutt iion..”
Appeall you,, fforr tthe dettaii lled rreasons adduced iin tthe fforregoiing parragrraphs,, tthatt
tthe new pensiion scheme enshrr iined iin tthe PFRDA Bii ll ll may be wii tthdrrawn ff rrom
tthe Parr ll iiamentt botth iin tthe iintterres tt off tthe Cii vii ll Serrvantts and tthe exchequerr ..
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http://www.bsnlnewsbyashokhindocha.blogspot.com M-09426254999