The Union Cabinet on 22 November 2017 approved the Wage Policy for the 8th Round of Wage Negotiations for workmen in Central Public Sector Enterprises (CPSEs).
There are about 12.34 lakh employees in 320 CPSEs in the country.
Highlights of Wage Policy
• CPSEs Management will be free to negotiate wage revision for workmen where the period of wage settlement of five years or ten years has expired generally on 31 December 2016.
• Union Government will not bear any budgetary burden for any wage increase. The entire financial implication will be borne by the respective CPSEs from their internal resources.
• In those CPSEs for which the Government has approved restructuring or revival plan, the wage revision will be done as per the provisions of the approved plan only.
• CPSEs Management also need to ensure that negotiated scales of pay do not exceed the existing scales of pay of executives and non-unionized supervisors.
• CPSEs may adopt graded DA neutralization or graded fitment during the wage negotiations to avoid conflict of pay scales of executives/non-unionised supervisors with that of their workmen.
• CPSEs should ensure that the increase in wages does not result in increase in administered prices of their goods and services.
• The wage revision will only be done on the condition that there shall be no increase in labour cost per physical unit of output.
• The validity period of wage settlement will be for a minimum period of five years for those who opted for a five year periodicity and for a maximum period of ten years for those who have opted for a ten year periodicity of wage negotiation with effect from 1 January 2017.
The Wage revision of unionized workmen is decided by trade unions and managements of CPSEs in terms of guidelines issued by the Department of Public Enterprises (DPE) for wage negotiations.
Who: Union Cabinet
When: 22 November 2017