Confederation of Central Government Employees and Workers Karnataka
State
To
Shri Basudev Acharyaji
Hon'able Member of Parliament
No 21 Ashoka road
New Delhi.
Respected
Sir,
With reference to our discussion we had at hotel Kansika
Bangalore on 9/2/13 in connection with the subject that the All India Consumer
Price Index Number for Industrial Workers (CPI-IW) on base 2001=100
& DA formula for the Central Government employees, many State Government
employees, Bank employees, LIC, and other employees is wrong and needs a
re-look . I am submitting a note over this issue for you perusal and need full
action.
It is observed that the All India Consumer Price Index Number for
Industrial Workers (CPI-IW) on base 2001=100 is not correct common items
used by the Government servants and common worker are not reflected in
this basket there are nearly 252 items in the basket more than 50% of these
items are not required for comparison fo your daily needs , this policy
of introduction of these items has effect of bringing down the All
India Consumer Price Index Number for Industrial Workers (CPI-IW) actual
terms the prices of essential commodities required for daily life which
are rising are neuturiseled by introduction of large number of
other items in the basket of All India Consumer Price Index Number for
Industrial Workers (CPI-IW.
In actual terms the prices of food articles have
gone up by more than 200% in last six years whereas All India
Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100
has shown an increase of just 104 points All India
Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100
which was at 115 points as on 1/1/2006 is just 219 points as on
1/1/2013. Hence the points instead of raising to 200 points is just
105 points. as published in its web site of The Ministry of Statistics
and Program Implementation vide http://mospi.nic.in/Mospi_New/upload/price-wage-rur-india-oct11-dec11.pdf. The prices of the articles are
collected through selected post offices and complied and calculated by the
Ministry of Statistics and Program Implementation. The prices collected by a post office in September 2012 in
Karnataka State is enclosed for your reference.
Compare 6th CPC Rates as per table 2.21 of the 6th CPC report , Consumer
Price Index Rates published by Government of India and Market Rates
prevailing as on today, for example today the actual price price of Rice is Rs
52 per kg in Bangalore , but as per 6th CPC computation it is only Rs 18 per kg
as per Consumer Price Index of 2001 it is only Rs 21 per kg, this
shows an increase of 200% over the 6th CPC prices (table number 2.21). almost
all articles have shown an increase over 200%. Due to failure of
monsoon & diesel price increase the prices will go up further , but we will
be compensated partially only next year as due to faulty DA formula .
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6th
CPC rates and present rates common items used on daily basis
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Comparative Chart:
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Slno
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Item
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Per
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6th CPC rates
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Rates
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Rates as
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% change
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in Rs as in
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as per CPI
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per Market
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compare
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table 2.21
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in Rs
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in Rs
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to 6th CPC
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as on 1.1.2006
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as on 1.12.12
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as on 1.2.13
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prices
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1
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Rice
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Kg
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18
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21
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55
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266
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2
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Dal (Toor/ urd)
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Kg
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40
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59
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85
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145
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3
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Raw Veg
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Kg
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10
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15
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30
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300
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4
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Greenleaf Veg
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Kg
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10
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14
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25
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250
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5
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Other Veg
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Kg
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10
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17
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25
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250
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6
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Fruits
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Kg
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30
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25
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80
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266
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7
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Milk
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lt
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24
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26
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34
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125
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8
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Sugar and jaggery
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Kg
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24
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34
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40
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166
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9
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Edible Oil
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Kg
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50
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96
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100
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200
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10
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Fish
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Kg
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120
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157
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320
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266
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11
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Meat
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Kg
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120
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257
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320
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266
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12
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Egg each
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each
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2
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4
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5
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250
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13
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Detergents etc
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Kg
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200
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240
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350
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175
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14
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Clothing
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Mt
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80
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61
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150
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187
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15
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Cokked meals
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32
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70
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187
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CPI: Consumer Price Index
published by Government of India
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Market Rates as per local
market rates in Bangalore
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The actual DA for central government employees should have been 180 % not
just 80% as on 1/1/2013. The Consumer Price Index of 2001 which was at 115
points as on 1/1/2006 should have been more than 300 points rather than
at 219 points as on 1/1/2013.
Current DA formula
Dearness
Allowance = (Avg of AICPI for the past 12 months - 115.76)*100/115.76
The
Average of the past 12 months should be removed and the division factor of
115.76 is also not correct. . The weightage of three months average should have
been taken in account rather than 12 months average, by which is the DA
for entire year of 2006 was only 2% due to faulty formula.
The
whole system of the All India Consumer Price Index Number for Industrial
Workers (CPI-IW) on base 2001=100 & DA formula for the Government
employees is wrong and needs a relook.
a) The Prices of the articles are
continuously rising.
b)
The DA is announced twice in a year that is January and
July respectively
c)
The Index point which was at 100 on 1/1/2001
d)
The Index point which was at 115.76 on 1/1/2006.
e)
From 1/1/2006 to 30/12/2012 the points has risen from
115 points to 219 points there by there is an increase of 104 points
compared to 80% DA.
f)
The Price of an article which was as on 115.76 on
1/1/2006 is Rs 206 as on 30/12/12 that is the market cost of today’s
price is 219 and Government employee if he goes to market to buy
the article has to pay an increased price of Rs 104 /- and DA is just 80. that
means simple calculation of 104% DA should be given to Government Employees.
g)
The prices which are increased from January to July are
provided DA w.e.f. from JULY. That is that the prices which are increased for
example the Cost groundnut oil is Rs 70 as on 1st July 2011 shows an
steady increase and is Rs 90 as on 30th June 2012 DA as on 1st July 2012 is
computed as average of Rs 70 & Rs 90 that is it works out to Rs 80.
There after it is divided by factor 115.6 that works out to Rs 69 hence
no DA is admissible even though the prices are increased from Rs 70 to Rs 90.
h)
The prices which are increased from past twelve months are
not compensated only it is compensated after 6 months of increase. Hence the
worker is cheated. For example if the price of an article is increased abruptly
after DA is announced on July 2011 and He has to wait for compensation till
JULY 2012. due to average of 12 months criteria. That is no immediate
compensation of price rise is available to him. That is he has to pay
from his pocket to buy the article.
i)
The Variable DA should be there as in case of
petrol prices as and when the international crude is increasing the oil
companies raise their prices of petrol, so no burden on them, same should
be the case of Government Employees as and when the AICPI increase then the DA
should automatically increase every month.
j) Recommendation of 6th
CPC vide para no 4.1.13
The Commission is of the view that the National Statistical
Commission may be asked to explore the possibility of a specific survey
covering Government employees exclusively, so as to construct a consumption
basket representative of Government employees and formulate a separate index.
Meanwhile, the Government may continue to use the AICPI (IW) for estimating the
DA.
Hence
separate DA AICPI should be formed for Government employees
Need based Minimum Wage
The
most comprehensive criteria for covering all the basic needs were evolved by
the 15th Indian Labour Conference (ILC) in 1957 for fixing minimum wages.
The norms are that a need-based minimum wage for a single worker should
cover all the needs of a worker’s family consisting of a spouse and two
children below the age of 14 (considered as three consumption units -- husband:
one unit, wife: 0.8 unit and two children: 0.6 units each).
The
food requirement was to be 2,700 calories, 65 grams of protein and around 45-60
grams of fat as recommended by Dr Wallace Aykroyd for an average Indian adult
of moderate activity. Dr Aykroyd pointed out that animal proteins, such
as milk, eggs, fish, liver and meat, are biologically more efficient than
vegetable proteins and suggested that they should form at least one-fifth of
the total protein.
Dr
Aykroyd worked on nutrition for nearly 30 years and was director of the
Nutrition Division, Food and Agriculture Organization, United Nations. In
1935, he was appointed director of the government's nutritional research centre
in India, situated in Coonoor in the south.
The 15th ILC further resolved that clothing requirements should
be based on per capita consumption of 18 yards per annum, which gives 72 yards
per annum for the average worker's family. For housing, the rent
corresponding to the minimum area provided under the government's industrial
housing schemes was to be taken. Fuel, lighting and other items of
expenditure were to constitute an additional 20% of the total minimum wage.
The
Supreme Court upheld these criteria in the case of Unichoy vs State of Kerala
in 1961. In the later Raptakos Brett Vs Workmen case of 1991, the SC went one
step further, and held that besides the five components enunciated by the 15th
ILC, minimum wages should include a sixth component, amounting to 25% of the
total minimum wage, to cover children's education, medical treatment,
recreation, festivals and ceremonies. The SC also observed that a wage
structure including the above six components would be nothing more than minimum
wage at subsistence level which the workers must get at all times and under all
circumstances.
The Sixth Central Pay Commission has recommended a minimum wage
of Rs 6600/- per month against the demand of Rs 10,000/-per month as
worked out by Staff side of JCM, Today the minimum need based wage works out to
Rs 20,000/ per month. Today we require a minimum salary of Rs 20,000/- taking
into the present prices into account, todays wages works out to just Rs 12000/-
including DA hence 50% increase in salary is required.
I request your kind self to take up the matter.
Comradely yours
(P.S.Prasad)
General Secretary
