CENTRAL TRADE UNIONS SUBMITS
JOINT MEMORANDUM TO FINANCE MINISTER
17th January 2015
The
Hon’ble Minister of Finance, Govt. of India,
North
Block, New Delhi
Dear
Sir,
We
thank you for inviting the central trade unions representing the working people
in the country in both organized and unorganized sector for this pre-budget
consultation.
In the
previous pre-budget consultation meeting with you held on 6th June 2014, we urged upon you to please
consider a directional change in the economic policy regime from that pursued
during the previous government which, you have also admitted, had landed the
country’s economy in a bad situation. In fact, we had articulated our views and
proposals on that premise. But we like to submit candidly that our proposals
did not receive a positive response and the economic policies followed the same
trajectory and made situation worse for the mass of the people during the
intervening period.
Sir, the Mid Term Economic Analysis (2014-15)
by Govt of India itself admitted that for the period under review despite
increase in GDP growth rate, and a much bigger increase in profit of the
corporate sector and big business lobby, the wages for the working people who
actually create the GDP in both rural and urban areas plunged on the average.
Overall standard of living of people deteriorated and unemployment situation in
the country has not improved in the least. Much more jobs were lost owing to
closure/lockout, retrenchment than created during the intervening period. And
in the midst of such situation, the Govt has already decided to cut already
budgeted expenditure in the social sector such as MNREGA, Health, Education etc
which we strongly deplore. Such a phenomenon warranted serious
reconsideration on directional change in the economic policy regime and we
again urge you for the same.
We express our serious concern and dismay over
the manner the Govt have been pushing various major economic policy related
decisions through promulgation of Ordinances. At least eight Ordinances were
promulgated during last eight months of the new Govt. We record our determined
opposition to such practice of Ordinance route of governance. In particular we
also oppose the Ordinance on coal sector, insurance sector and on Land
Acquisition Act and want you to please take note of the rousing opposition and
struggles by the workers and the farmers against such disastrous exercises. We
demand all such Ordinances should be withdrawn forthwith.
We wish that our candid observations,
considered views and concrete proposals are taken in the right spirit and
responded with all seriousness and given appropriate reflections in the ensuing
budget 2014-15.
Our proposals:
Some of these specific proposals have time and
again been placed by us in various policy making fora including the earlier
pre-budget consultations. However, we would like to reiterate them, urging your
positive response:
Take effective measures to arrest the
spiraling price rise and to contain inflation; Ban speculative forward trading
in commodities; Universalise and strengthen the Public Distribution System;
Ensure proper check on hoarding; Rationalise, with a view to reduce the burden
on people, the tax/duty/cess on petroleum products.
There
must be massive investment in the infrastructure in order to stimulate the
economy for job creation. The Mid Term
Economic Analysis(2014-15) published by Govt of India has clearly mentioned
about the failure of the PPP experiments in infrastructure development and
opined for public investment. It is
our considered view that the Public sector should take the leading role in this
regard. The plan & non-plan expenditure should be increased in the budget
to stimulate jobs creation and guarantee consistent income to people.
§
Minimum
wage linked to Consumer Price Index must be guaranteed to all workers, taking
into consideration the recommendations of the 15th Indian
Labour Conference as enriched by Apex Court of the country as reiterated in 44th ILC in 2012. In any case, it should not be
less than Rs.15,000/- p.m.
§
FDI
should not be allowed in crucial sectors like defence production,
telecommunications, Railways, financial sector, retail trade, education, health
and media.
§
The
public sector units played a crucial role during the year of severe contraction
of private capital investment immediately following the outbreak of global
financial crisis. PSUs should be strengthened and expanded. Disinvestment of
shares of profit making public sector units should be stopped forthwith.
Budgetary support should be given for revival of potentially viable Sick CPSUs
§
In view
of huge joblosses and mounting unemployment problem, the ban on recruitment in
Govt. deptts, PSUs and autonomous institutions (including recent Finance
Ministry’s instruction to abolish those posts not filled for one year) should
be lifted as recommended by 43rdSession of Indian Labour Conference. Condition
of surrender of posts in govt. departments and PSUs should be scrapped and new
posts be created keeping in view the new work and increased workload.
§
Proper
allocation of funds be made for interim relief of 20% and 100% DA merge with
basic pay and allowances including neutralization percentage be paid on merged
DA in view of 7th CPC to all Govt. employees. Similarly, 100% DA
of PSU employees be also merged with basic pay.
§
The
scope of MGNREGA be extended to agriculture operations and urban areas as well
and employment for minimum period of 200 days with guaranteed statutory wage be
provided, as unanimously recommended by 43rd Session
of Indian Labour Conference. The drastic cut already inflicted on the MNREGA
allocation should be restored.
§
The
massive workforce engaged in ICDS, Mid-day meal scheme, Vidya volunteers, Guest
Teachers, Siksha Mitra, the workers engaged in the Accredited Social Health
Activities (ASHA) and other schemes be regularized. No to privatization of
centrally funded schemes. Universalisation of ICDS be done as per Supreme Court
directions by making adequate budgetary allocations.
§
Steps
be taken for removal of all restrictive provisions based on poverty line in
respect of eligibility coverage of the schemes under the Unorganised Workers
Social Security Act 2008 and allocation of adequate resources for the National
Fund for Unorganised Workers to provide for Social Security to all unorganized
workers including the contract/casual and migrant workers in line with the
recommendations of Parliamentary Standing Committee on Labour and also the 43rd Session of Indian Labour Conference.
§
Remunerative
Prices should be ensured for the agricultural produce and Govt. investment
public investment in agriculture sector must be substantially augmented as a
proportion of GDP and total budgetary expenditure. It should also be ensured
that benefits of the increase reach the small, marginal and medium cultivators
only;
§
Budgetary
provision should be made for providing essential services including housing,
public transport, sanitation, water, schools, crèche health care etc. to
workers in the new emerging industrial areas. Working women’s hostels should be
set up where there is a concentration of women workers.
§
Requisite
budgetary support for addressing crisis in traditional sectors like Jute,
Textiles, Plantation, Handloom, Carpet and Coir etc.
§
Budgetary
provision for elementary education should be increased, particularly in the
context of the implementation of the ‘Right to Education’ as this is the most
effective tool to combat child labour.
§
The
system of computation of Consumer Price Index should be reviewed as the present
index is causing heavy financial loss to the workers.
§
Income
Tax exemption ceiling for the salaried persons should be raised to Rs.5 lakh
per annum and fringe benefits like housing, medical and educational facilities
and running allowances, Railways Running Staff and a staff in other deptts
should be exempted from the income tax net in totality.
§
Threshold
limit of 20 employees in EPF Scheme be brought down to 10 as recommended by
CBT-EPF. Pension benefits under EPS unilaterally withdrawn by the Govt. should
be restored. Govt. and Employers contribution be increased to allow
sustainability of Employees Pension Scheme and for provision of minimum pension
of Rs.3000/- p.m.
§
New
Pension Scheme be withdrawn and newly recruited employees of central and state
govts on or after 1.1.2004 be covered under Old Pension Scheme;
§
Demand
for Dearness Allowance merger by Central Govt. and PSUs employees be accepted
and adequate allocation of fund for this be made in the budget;
§
All
interests and social security of the domestic workers to be statutorily
protected on the lines of the ILO Convention on domestic workers.
§
The
Cess Management of the construction workers is the responsibility of the
Finance Ministry under the Act and the several irregularities found in
collection of cess be rectified as well as their proper utilization must be
ensured.
In
regard to resource mobilization, we would like to emphasize the following:
A
progressive taxation system should be put in place to ensure taxing the rich
and the affluent sections who have the
capacity to pay at a higher degree. The corporate service sector, traders,
wholesale business, private hospitals and institutions etc. should be brought
under broader and higher tax net. Increase taxes on luxury goods and reduce
indirect taxes on essential commodities as at present the overwhelming majority
of the populations are subjected to Indirect taxes that constitute 86% of the
revenue.
§
Concrete
steps must be taken to recover huge accumulated unpaid tax arrears which has
already crossed more than Rs.5 lakh crore on direct and corporate tax account
alone, and has been increasing at a geometric proportion. Such huge tax-evasion
over and above the liberal tax concessions already given in the last two
budgets should not be allowed to continue.
§
The SIT
constituted for unearthing black money must deliver visible result which is yet
to be seen. Effective measures should be taken to unearth huge accumulation of
black money in the economy including the huge unaccounted money in tax heavens
abroad and within the country. Finance Minister should make provisions to bring
back the illicit flows from India which are at present more than twice the
current external debt of US $ 230 billion. This money should be directed
towards providing social security.
§
Concrete
measures be expedited for recovering the NPAs of the banking system which is on
the increasing trend again from the willfully defaulting corporate and business
houses. By making provision in Banking Regulations Act, CMDs and Executives to
be made accountable for creation of NPAs.
§
Tax on
Long term capital gains to be introduced; so also higher taxes on the security
transactions to be levied.
§
The
rate of wealth tax, corporate tax, gift tax etc. to be expanded and enhanced.
§
ITES, outsourcing
sector, Educational Institutions and Health Services etc. run on commercial
basis should be brought under Service Tax net. Govt.
§
Small
saving instruments under postal and other agencies be encouraged by
incentivizing commission agents of these scheme
OUR SERIOUS CONCERN:
We would like to express our strong resentment
that the previous Govt. failed to positively respond to the collective voice of
the Central Trade Unions on the very important issues concerning the working
people of India, both organized and unorganized, consistently repeated in the
form of a ‘10 point charter’ backed by several collective nationwide
programmes. We expect that this Govt. will take initiative to discuss these
issues with the Central Trade Unions in order to find a solution.
We also express our opposition to the so
called Banking Reforms encouraging private sector/capitalists banking at the
cost of public sector banks which saved the economy to an extent during the
last global financial meltdown. We also oppose increase in limit of FDI and disinvestment
of equity in insurance sector and FDI in pension. We strongly oppose the FDI in
Defence and Retail Sector. Several such measures against the working men and
women in this country including anti workers proposals contained in the New
Manufacturing Policy have our strong opposition, as in our experience these
kinds of measures have helped the growth of only a small section of the
capitalists while the larger sections of the working population continue to be
marginalized and impoverished.
We also oppose the hectic
measures of changing labour laws in the name of labour reform both by the
central and the state governments which are basically aimed at legitimizing
ongoing widespread violations by the employers’ class and also throw out
overwhelming majority of the workforce of the purview of the labour laws
themselves at the total mercy of the employers.
POST BUDGET MEETING WITH TRADE UNIONS
Successive Finance Ministers have agreed to
hold post budget meetings / consultations with the central trade unions.
However, it has not been materialized except for one occasion. We understand
such meetings did take place with the Corporate Associations/Employers
Federations. We would like to importunate upon you to arrange such post budget
meeting with trade unions also.
With
regards,
Yours
sincerely,
Brijesh Upadhyay S Q Jama Harbhajan Singh Sidhu D L Sachdeva
BMS
INTUC
HMS AITUC
Tapan
Sen R K Sharma S P Tewari Monali Santosh Roy
CITU AIUTUC TUCC SEWA AICCTU
Ashok
Ghosh Shanmugan
UCTU LPF
