The Cabinet on Wednesday cleared the way for the eighth round of wage negotiations for workmen in Central Public Sector Enterprises (CPSEs) by clearing a policy in this regard. However, the policy makes it clear that no budgetary support would be provided for any wage increase by the government, and the entire financial implication would be borne by the respective CPSEs from their internal resources.

“In those CPSEs for which the government has approved restructuring/ revival plan, the wage revision will be done as per the provisions of the approved restructuring/ revival plan only,” an official release said.

According to the approved policy, CPSE managements would be free to negotiate wage revision for workmen where the periodicity of wage settlement of five years or 10 years has expired generally on December 31, 2016 “keeping in view the affordability and financial sustainability of such wage revision for the CPSEs concerned,” the release added.

Also, CPSE managements need to ensure that negotiated scales of pay do not exceed the existing scales of pay of executives/ officers and non-unionised supervisors of respective CPSEs, it added.

There are about 12.34 lakh employees in 320 CPSEs in the country. Of these, about 2.99 lakh are board-level and below board-level executives and non-unionised supervisors, while the remaining 9.35 lakh employees are in the workmen category.

“Wage revision in respect of unionised workmen is decided by trade unions and managements of CPSEs in terms of guidelines issued by the Department of Public Enterprises (DPE) for wage negotiations,” an official release said.

The wage policy also makes it clear that CPSEs must ensure that any increase in wages after negotiations do not result in an increase in administered prices of their goods and services, as also any wage revision “shall be subject to the condition that there shall be no increase in labour cost per physical unit of output.”

Judges’ salary revised

The Cabinet also approved revised salaries, gratuity, allowances and pension for the judges of the Supreme Court and High Courts.

Arrears on account of the revised salaries, gratuity, pension and family pension with effect from January 1, 2016, will be paid as a one-time lumpsum payment, the Cabinet said.

“The approval will pave the way for necessary amendments in the two laws viz. the Supreme Court Judges (Salaries and Conditions of Service) Act, 1958 and High Court Judges (Salaries and Conditions of Service) Act, 1954, which govern the salaries of the Chief Justice of India (CJI), Judges of the Supreme Court of India, Chief Justices and all Judges of High Courts," an official release said.

The increase in the salary and allowances will benefit 31 Supreme Court judges (including the Chief Justice of India) and 1,079 judges (including the Chief Justices) of the High Courts, besides, approximately 2,500 retired judges.