The Hindu Business Line : Cabinet okays norms for wage negotiations for Central PSUs

The Cabinet today approved the policy guidelines for the Seventh Round of Wage Negotiations for unionised workers in the Central public sector enterprises (CPSEs) allowing the managements to start independent negotiations with their respective unions.

The validity of the sixth round of negotiated wages expires on December 31 this year.

The validity period for the seventh round settlements would be for 10 years with 100 per cent dearness allowance neutralisation, the Minister for Information and Broadcasting, Mr P.R. Dasmunsi, told reporters after the Cabinet meeting.

New guidelines

According to the new set of guidelines, the increased expenditure to be incurred on account of wage hike has to be borne through internal funds and there would be no Budgetary support for them.

Permission has been granted for negotiations on the condition that no burden would be borne by the Government and the companies would have to generate funds from their internal resources by improving productivity and profitability.

Also, it has been mentioned that the wage revision must not result in any increase in labour cost per physical unit of output. However, the PSUs running on full capacity could be exempted.

For public sector companies, which enjoy monopoly or operate under administered price structure, the new policy states that they must ensure that the wage revision does not lead to rise in prices of their products, the Minister said.

In case of sick units that have been referred to the Board for Industrial and Financial Reconstruction (BIFR), they would continue to work on the existing policy guidelines; revisions would require BIFR approval.

Units that had incurred net loss during any of the past three financial years but not referred to either BIFR or BRPSE, may also be allowed to enter into wage negotiations, according to the new guidelines but permission would be given only if they provide an estimate to their administrative ministries as to how resources would be generated to meet the extra expenditure.

MICRO & SMALL ENTERPRISES

The Cabinet Committee on Economic Affairs also approved a package for promotion of micro and small enterprises.

The package would provide support for the development and promotion of micro and small sector units, facilitate employment generation and enhance the segment's competitiveness.

GANGA Erosion

The CCEA also gave its approval for the sanction of the revised scheme amounting to Rs 305.03 crore for taking up anti-erosion work in the Ganga basin States during the Tenth Plan period, a Government spokesperson said.

Out of the total amount, Rs 216.03 crore would be for utilisation by the various Ganga basin States, including Uttar Pradesh, Uttaranchal, Bihar, Jharkhand, Himachal Pradesh and West Bengal, while Rs 89 crore would be for the Farakka Barrage Project (FBP). According to the Plan approved, the Centre would provide 75 per cent of the outlay in the form of grant while the respective States would bear 25 per cent of the costs.

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