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Govt not to delay implementing pay hikes

The government on Friday categorically stated in the Rajya Sabha that it had no intention to delay the implementation of the Fifth Pay Commission report and was willing to bear additional expenditure to satisfy certain sections of its employees.

Agriculture Minister Chaturanan Mishra, who was responding to the members's demand during zero hour for early implementation of the report, said the government had invited representations against the report by August 15, after which a final decision would be taken.

The minister said the government did not want to buy a strike by the employees after bearing a burden of Rs 135 billion and would prefer spending a little more to meet the objections of the employees.

The issue was raised by V P Duraisamy (Dravida Munnetra Kazhagam) who said it was not proper to delay implementation of the report after certain sections of the government employees had raised objections.

However, in the Lok Sabha, Finance Minister Palaniappan Chidambaram said the notification for the implementation of the Fifth Pay Commission recommendations was likely to be delayed as the government had asked the cabinet secretary to have another round of consultations with employees' representatives to "sort out" the grievances and anomalies.

Chidambaram said the Pay Commission recommendations were a "liberal package" and should have satisfied the employees. The best way to sort out anomalies would be to sit "across the table" in the anomalies committees and joint consultation machinery.

He did not refer to the threat by the government employees to go on strike over the anomalies issues.

Chidambaram said the burden of implementing the Pay Commission report would push up the annual salary bill of the central government by more than one and a half times to Rs 376 billion.

The finance minister agreed with Jaswant Singh that the government employees should respond to the wage increase by improving their work ethic and attitude to work.

Chidambaram pointed out that the annual burden of implementing the Pay Commission recommendations had been put at Rs 88 billion as a Rs 18 billion burden on account of gratuity and commutation had not been accounted for by the commission.

The finance minister said the new wages would be effective from January 1, 1996, but half the arrears would have to be compulsorily deposited in the general provident fund account for two years to tackle cash flow problems and promote savings.

Chidambaram rejected B V Badade's plea for tax exemption on the arrears as all income and allowances in the country were subject to tax.

Vijay Kumar Malhotra (Bharatiya Janata Party) said the Pay Commission had increased the disparity between the highest and the lowest paid employees instead of decreasing it.

Ashok Mitra (Communist Party of India-Marxist) and Jalaluddin Ansari (Communist Party of India) said the government should redress the grievances of employees and implement the Pay Commission recommendations early.

UNI