The Hindu Business Line : Cabinet okays norms for PSU wage negotiations

THE Union Cabinet on Wednesday approved guidelines for all Central public sector undertakings (PSUs) under various Ministries/Departments to enable the PSU managements to negotiate the wage structure of workers for five years, effective from January 1, 2002.

According to the guidelines approved, the PSU managements will be free to negotiate the wage structure for their employees not covered by the Justice Mohan Committee report in respect of pay revision of Central PSUs. The terms agreed upon will have to keep in view and be consistent with the generation of resources/profits by the enterprises concerned. The Government will not provide any budgetary support for the wage increase negotiated between the workers and the PSU managements.

Further, those PSUs, which are monopolies or near monopolies or operate under the administered price mechanism (APM), will have to ensure that any increase in wages after negotiations does not result in an increase in the administered prices of goods and services.

With regard to the sick PSUs registered with the Board of Industrial and Financial Reconstruction (BIFR), the guidelines stipulate that until the Board approves the revival plan of such enterprises in which provisions have been made for additional expenditure on account of pay revision, no revision of pay will be allowed to the workers.

The workers drawing a basic pay of up to Rs 6,550 per month will be entitled to neutralisation of dearness allowance (DA) at 100 per cent of the basic pay, while those drawing a basic pay beyond Rs 6,550 per month will be entitled to neutralisation of DA to the extent of 75 per cent.

The guidelines also stipulate that the PSUs should implement the negotiated wages after confirming with their administrative Ministry and the Department of Public Enterprises (DPE) that the revision was within the approved parameters.

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