Govt okays wage negotiations for PSU workers
The government on Monday empowered the managements of central PSUs to negotiate the wage structure with unionised workers from January next year.
By PTI |
NEW DELHI: The government on Monday empowered the managements of central PSUs to negotiate the wage structure with unionised workers from January next year.
While the validity of the sixth round of negotiated wages expires on December 31 this year, the settlement that would be reached under the seventh round would be good for 10 years with 100 per cent Dearness Allowance neutralisation, Information and Broadcasting Minister P R Dasmunsi told reporters after the Cabinet meeting.
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.
Further, 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.
Public sector companies, which enjoy monopoly or operate under administered price structure, must ensure that the wage revision does not lead to rise in prices of their products.
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Dasmunsi said sick CPSUs that have been referred to the Board for Industrial and Financial Reconstruction would continue to work on the existing policy guidelines. Until BIFR approves the revival plan for a PSU, in which provision has been made for additional expenditure on account of wage revision, no increase would be allowed. As per the policy guidelines, wage revision for companies referred to the Board for Reconstruction of Public Sector Enterprises (BRPSE) would be considered only on the basis of the Board's recommendations.
CPSUs, which 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.
But this 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.
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