Cabinet approves guidelines for wage negotiations for CPSE's

New Delhi, Oct 16 (UNI) The Union Cabinet today gave its approval for policy guidelines for the seventh round of Wage Negotiations for the unionised workmen in Central Public Sector Enterprises valid for a period of ten years.

''The gudilines will be effective from January 1,2007,'' Minister for Information and Broadcasting Priya Ranjan Dasmunsi told newspersons here.

The guidelines indicate that no budgetary support for the wage increase will be provided by the Government under any circumstances.

''The resources for meeting the increased obligation for implementation of wage revision must be internally generated and must come from improved performance in terms of productivity and profitability and not from government subvention,'' he said.

Mr Dasmunsi said the period of wage settlement will be for ten years with 100 per cent DA neutralisation and the revisison will be subject to the condition that there shall be no increase in labour cost per physical unit of output.

''There may be rare exceptions, where units would already be working at optimum capaicty considering industry-wise norms, in such cases as the administrative Department may consult the Department of Public Enterprises,'' he said.

For CPSUs which are monopolies and near monopolies or operate under an administered price structure, the guidelines suggest that it must be ensured that any increase in wages does not result in an increase in the administered prices of their goods and services.

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