The Hindu Business Line : Payments to pensioners hit CDLB finances

THE Calcutta Dock Labour Board (CDLB) is facing a financial crunch because of the disbursement of payments to 7,000 pensioners. This is despite an increase in the operating income of the Board.

In 2004-05, this income was Rs 27.86 crore.. During April-July 2005, the revenue earned was Rs 9.01 crore against Rs 8.35 crore in the corresponding period of the previous year.

With a non-worker staff strength of 310 and 495 workers, the monthly wages and salaries payments of the Board is around Rs 1.65 crore, including overhead costs of Rs 25 lakh. The average monthly income is around Rs 2.25 crore.

On the other hand, for 7,000 pensioners the Board has to incur an expenditure of Rs 1.95 crore every month. A substantial part of the average operating income of Rs 2.25 crore is now used to pay the pensioners their dues. Around 700 staff and workers recruited after April 1, 1972 and January 1, 1979, respectively, till date are being provided with the facility of compulsory pension and NCPF (Non-Contributory Provident Fund).

Staff and workers who joined before this period had the option to accept pension and they enjoyed the facilities offered by a Contributory Provident Fund (CPF). Now they have begun exercising the pension option. The component of the Board's contribution to the CPF is being transferred to the designated pension fund. Around 60 per cent of the pensioners have already used up their own contribution to the fund.

As a result of the financial crunch, the CDLB has three-months' arrears in the payment of salaries and pensions. The DA payment has also been frozen. The Board has appealed to the Union Ministry of Shipping for a corpus of Rs 546 crore for payment of arrears, commutation of pension and the creation of a pension fund.

According to a member of the Trustee Board of the CDLB, the erstwhile Board administration was not able to visualise the scale of the future pension liability as a result of which no proper pension fund was created.

The Board did not even take any action to realise the pension contribution from the stevedores for their employees, which, according to a Supreme Court judgment, is the sole responsibility of the stevedores. However, to cover the liability of gratuity and provident fund, the Board took appropriate action.

Mr Amitabha Banerjee, General Secretary, Calcutta Port & Dock Industrial Workmen Union, and a long-time member of the Trustee Board, said that had the CDLB administration availed itself of the scope created in February 1996 by the then Secretary of the Shipping Ministry and Chairman of DWAC (Dock Workers' Advisory Committee), Mr S. Sundar, to refer to the Pension Committee constituted by the Union Government the case of the port and dock workers, the present problem could have been avoided.

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