7th Pay Commission: These companies cannot afford a salary hike
The pay hike for CPSE officers would cost these units Rs 7,000 crore in 2017-18.
While many central government employees are waiting for higher allowances as per the 7th Pay Commission, there are many companies that cannot afford salary hike owing to huge losses.
There are 244 public sector undertakings out of which only 100 can afford criteria set by the Third Pay Revision Committee (PRC). In other words, there are only 100 public sector companies which will be revising the salaries of their employees.
BSNL cannot afford hike
There is a lot of manpower in companies such as the BSNL, Air India, Bharat Heavy Electricals Limited (BHEL). As these companies are suffering a huge financial loss, they cannot increase the salary of their employees. The Department of Public Enterprises (DPE) formed PRC last year in July. That was the same time when Union Cabinet had approved 7th Pay Commission recommendations.
Pay hike for CPSE officers
The pay hike for CPSE officers would cost these units Rs 7,000 crore in 2017-18. A pay revision of the same proportion would follow for the CPSE workers (non-officer staff), who constitute more than two-third of the total CPSE manpower. The PRC, had suggested a maximum of 15% pay hike (on sum of basic pay, stagnation increments and industrial dearness allowance) subject to the ability of the firms concerned to bear the consequent financial burden.
What PRC had recommended
The PRC has recommended a minimum pay of Rs 30,000/month, from Rs 12,600/month now, for executives and a maximum of Rs 3.7 lakh for CMDs, from Rs 1.25 lakh, for Schedule A CPSEs (Depending on profits, the CPSEs are categorised into different schedules, with highest being Schedule A, followed by B, C and D).
Negotiations
A Financial Express report while quoting sources said the DPE has already circulated a draft cabinet note on the CPSE pay revision for inter-ministerial consultations. After pay revision of officers are implemented, the CPSEs, individually, would negotiate with the respective employee unions on the pay hike for workers.
OneIndia News