Govt permits mgmt of CPSEs to initiate wage-negotiation

The government on Tuesday approved a proposal for permitting the management of central public service enterprises (CPSEs) to initiate wage negotiations for their employees.

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However, the negotiations are subjected to the condition that negotiated scales of pay would not come into conflict with existing scales of pay of executives/officers and non-unionised supervisors of the respective CPSEs.

"The Cabinet today approved the proposal for permitting the management of CPSEs to initiate wage negotiations generally effective from January 1, 2012, subject to the condition that negotiated scales of pay would not come in conflict with existing scales of pay of executives/officers and non- unionised supervisors of the respective CPSEs," an official statement said.

It said the move would benefit employees of those CPSEs which opted for five years of wage settlement effective from January 1, 2007 "and they can now go for another wage negotiation for 5 years w.e.f January 1, 2012".

There are 260 CPSEs in the country employing 13.98 lakh people (2.74 lakh executives, 0.31 lakh non-unionised supervisors and 10.93 lakh unionised supervisors and workmen) as on March 31, 2012.

Further, the Cabinet Committee on Economic Affairs (CCEA) also approved the proposal for providing non-plan budgetary support of Rs 11.93 crore for liquidation of statutory dues for the period from April 1, 2010 to September 30, 2012 (provident fund) and wages from April 1, 2010 to September 30, 2012 to Hindustan Photo Films Mfg Co Ltd.(HPF), Ootacamund.

"Payment of outstanding dues of salary and wages would mitigate hardships of the employees, thereby motivating them for better output and prepare them to achieve the goal of revival/restructuring of the company," it said.

In addition, it added that clearance of outstanding statutory dues (provident fund) is likely to result in fulfilment of statutory requirement. The CCEA also approved the revival of the Nagaland Pulp & Paper Co (NPPC) through infusion of funds of Rs 309.38 crore, regularisation of inter se diversion of fund of Rs 54.60 crore. It has also increased the authorised capital of NPPC from Rs 150 crore to Rs 250 crore.

"The CCEA also gave its approval to avail term loan of Rs 156.50 crore from commercial banks against government guarantee," it said. It said the revival plan comprises rebuilding/ re-furbishment of paper machine, pulping mill, new power plant.

"The company would produce both pulp and paper in the first phase," it said, adding "with the implementation of the revival plan, the networth of the company will become positive and it will start posting profit from the first year after implementation". It said the company will start making profit on sustained basis and its dependence on Centre for financial assistance for disbursement of salary and wages and statutory dues to employees shall cease, and it will come out of the purview of the Board of Industrial and Financial Restructuring.