Labour Progressive Federation, the Labour wing of DMK, one of the recognized National Trade
Union Centre, thank the Government of India and the Finance Minister for inviting the
Federation for pre-budget consultation that creates opportunities for engaging, educating and
empowering workers, which can equip and advance a more vibrant working class.
Preamble
Exponential rise of unemployment along with the population growth is a major concern for
everyone. The introduced social uplift schemes have not percolated down and the rock bottom
sufferers of the populace still continue to live with expectations. This is a matter of grave
concern to all stake holders. In these circumstances, we strongly urge for a thrust on the issues
of inflation, poverty, unemployment and social infrastructure in the coming Union budget 20152016 with encouraging proposals to the advantage of the society as a whole.
In the labour front, miseries are added mostly on labour class by way of ruthless plans for
retrenchment, in the name of financial viability. The tendency of subjecting and forcing the
workers alone to face and shoulder the ill effects of economic crisis of an industry should end
with. To avoid such repetitions in the coming days, it is essential to empower Trade Unions to
have a close watch over the affairs of the Companies and in fact they should be allowed to play
the role of a watch dog.
With the above preamble, we are listing a few of budget expectations that come to our mind
from our perspective.
1
Fillip to Economy by abolishing coercive Tax Machinery
Budget for 2014-15 projected an interest expenditure of Rs 4.27 lakh crore on a proposed
Budget size of Rs 17.94 lakh crore which is roughly 25%. Further, the Budget estimates a
receipt of a mere Rs 2.07 lakh crore from Excise Duty and Rs 2. 16 lakh crore from Service tax
aggregating to Rs 4.23 lakh crore.
This imbalance on the Indian economy is a debt trap since When borrowings to pay interest,
Crucially, as our Government needs to borrow even pay its interest, it tweaks policies [like
mandating banks to invest substantial amount of its deposits into Governmental Bonds] to suit
the same.
To put things in perspective, the entire collection of Excise Duty and Service Tax goes on to
fund our interest expenditure!
In the alternative, if there were no interest pay-outs, we could abolish the Excise Duty and
Service Taxes. Imagine the fillip that this could give to our economy, notably our manufacturing
sector and small business which would thrive simply in the absence of a coercive tax
machinery.
2
Income Tax Exemption
The system of Tax exemption may be removed in all cases by introducing uniform slabs. No
Tax be levied up to Rs 5, 00,000/ -, reason being the rate of inflation due to abnormal rise in
prices.
Individual Persons may be brought under TAX net as under:
5, 00,001 to 10, 00,000
10, 00,001 to 20, 00,000
20, 00,001 to 30, 00,000
30, 00,001 and above
10%
15%
20%
25%
Total exemption on Home Loans against the Principal or Interest Component whichever is
higher be given throughout the tenure of the loan.
All types of Insurance Premium Payments be exempted from Tax net by removing the present
ceiling limit and concession under clause 80(C)
All types of Provident Fund are brought under EEE regime, regardless of when it is withdrawn
Amount of interest earned by Senior Citizens in any instrument, up to Rs.2,00,000 be exempted
from TAX.
3
Introduction of better policies on education & Health
Better policies to keep the education from Government compete with non-government education
sector. Why should there be race for students to join non-govt schools despite the fact there
are better infrastructure available in Govt educational institutions. Is it lack of efforts from
Government or the polices of the govt that gives morale losing trend for the schools to
administer / run.
Similarly in health sector why is it that only the have nots approach govt hospitals / health
centres when others (even a lower middle income group people) prefer to go to non-govt
hospitals despite prohibitive charges. Better competitive policies both in the education & health
sector may be introduced.
4
Inclusion of GDS workers for consideration of 7th CPC by widening the scope of
Terms of reference of 7th Pay Commission.
The Group of Workers, earlier predominantly known as EDAs in Department of Posts, is
renamed as Grameen Dak Sevaks and continues to work primarily in village post offices.
without any status of regular employees, these group of officials are denied with regular status
for over than sixty ( 60 ) years, except with extension of limited social security measures
available for regular employees. There is a persistent demand based on the recommendations
of various committees to regularize GDS employees.
In the interim period, it may kindly be considered to widen the scope by amending the Terms
of reference of 7th Pay Commission to include the area of GDS and recommend proposals in all
respects including their regularization.
4
Deplorable conditions of PSUs
The deplorable conditions of PSUs, are to be truthfully analysed and steps to be taken to really
improve all PSUs.
We refer the condition of BSNL. In the present scenario and given conditions, for the survival
and existence of BSNL, a remedy is absolutely necessary to augment resources. Due to
obvious reasons, the company that was a very profitable enterprise & a veritable power house is
now not even a semblance of its former self and is facing biggest test.
BSNL instead of facing steady increase in revenue and profit, it is a steadily facing increase of
the decline story. If the company is allowed to continue with this sort of financial drain, no doubt,
the resultant effect will be a bailing out situation
BSNL would be a potent instrument in the hands of Government for achieving its social
objectives in regard to spread of telecommunication network in the country, that under no
circumstances Government would allow BSNL to become non-viable as it has to be kept always
in strong and healthy condition
The Government should step forward to implement the following agreement it reached with
BSNL Unions and save the company, instead of planning to close it down in a phased manner.
“Government will ensure financial viability of the corporation for which purpose it will extend
financial support / reimbursement for discharging obligations for any uneconomical services
including rural telephony services and such others that are uneconomical.
Government will consider and provide a package of measures so that the viability of BSNL is
not impaired because of implementation of any socially desirable uneconomic activity, such as
rural telephony, undertaken by BSNL at the behest of Government.
5
Disinvestment
It is evidently visible and also has been seen that the Government is not successful in attempts
of disinvestment. In effect, such process have not brought in expected revenue to the
Government. Alternatively, disinvestment process witnessed total defeat. Hence we
request
the Government of India to drop in toto, the proposal or plans of disinvestment. Instead we
suggest the Government can make attempts to revive sick units and establish new
organizations by utilizing the net profit earned through PSUs and by disposing the equipment,
infrastructure and properties of already closed down PSUs.
Disposal of equipments, infrastructure & properties of once and for all closed units –
Utilising the funds received through such disposals & net profits earned through PSUs to
revive sick units and establishing new units.
Repeated attempts of the Government proved fatal and is evidently visible that disinvestment
were not successful. In effect, such process have not brought in expected revenue to
Government had witnessed no benefit except total defeat. Taking into consideration, the factors
for failure of the process, the Government may, once for all, drop the proposals and plans on
this count.
Instead, the Government may attempt to revive sick units and establish new organisations by
utilising net profit earned through PSUs and also by diverting the funds realised by disposing the
equipment, infrastructure and properties of those PSUs closed down once and for all.
6
Repeal of important statues in consultation
Repeal of important statutes should be in consultation with all the stakeholders and not with
haste. Classic example is that of the New Companies Act, 2013. When there are only 5% of
the companies are in the listed category requiring severe and strict monitoring mechanism and
stringent rules to prevent public money being swindled, the provisions of the New Companies
Act disregarded this fact and made the rules which are not relevant for 95% of the companies in
India which are not listed and about 70% of the companies are covered under MSME.
7
Suitable Mechanism & Interface to resolve conflicts
Federal structure of the constitution creating a conflict between state and centre and a
mechanism to set these things right, should be in place. For eg. conflicting stand taken by the
State governments in respect of SEZ benefits to the business community while the central laws
confer the benefits. In the absence of the interface between these two there is total chaos at
the ground level wherein small players are worst hit.
8
Appointing and extending the scope of Wage Review Committee for PSUs.
As Government has appointed Pay Commission for Government Employees, the expectation
towards appointment of Wage Review Committee has increased. It is the high time to consider
and appoint wage review committee for PSUs. Hitherto the wage review committee was
empowered to consider and offer recommendations restricted with executives. The NonExecutives, all these were forced to bargain wage revision within their industry, resulting in an
imbalance between industries on periodicity, percentage of perquisites, besides wage difference
even at staring level. To offset the imbalance and to create a sense of motivation among PSU
non executive workers, it is desirable to expand the area / jurisdiction of PSU Wage Review
Committee
9
Pay Commission / Wage Review General Issues
1
Decision to merge 50% DA with Pay as and when the percentage of DA / IDA
crosses 50%, as a standing order.
2
In the event of delay in wage settlement / Pay revision beyond a period of six
months from the date of eligibility for such revision, decision for automatic grant
of Interim relief
3
Implement revised wages simultaneously for both the executives / non
executives in PSUs to avoid growing dissatisfaction within the industry.
4
Quinquennial wage revision in PSUs and also Pay Revision for Government
Employees by removing the existing long span years in both the areas.
5
Maintenance of logical relativity in Pay between Executives and Non Executives
working in Public Sector Enterprises owned by Government of India.The ratio
between the lowest pay of the non-executive and the highest pay of the
executive was 1:19 in 1970 in Public Sector, before commencement of the
system of collective bargaining. After 5 rounds of wage agreements, by 1996 this
relativity was improved to 1:4.7. However, in the 6th round of wage revision that
came into effect from 01.01.1997, the non-executives were discriminated and the
executives were highly favored. As a result the above said relativity in wages has
deteriorated from 1:4.7 to 1:7. This distorted relativity has to be corrected and the
relativity should be restored to 1:4.7.
10
6
Unorganized sector is made up of jobs in which the Minimum Wage Act is either
not, or only marginally, implemented. The absence of unions in the unorganized
sector does not provide any opportunity for collective bargaining.
7
National Minimum Wage be introduced replacing the existing provisions to
ensure uniform minimum wage throughout the country.
Migrant Workers
Major contributors to the economy of the country are the workers who have migrated to different
countries. Movement of these workers on migration to destination countries are in increasing
order. From statistics it is learnt that thousands and thousands of migrant workers are in
custody in different countries. Irregular migrants on deportation are made vulnerable to
smuggling and trafficking. Migrants are deported without any savings due to change of laws in
destination countries. All these adding together have left the migrant or his family in very
awkward situation and in harness. To mitigate it is essential to rehabilitate migrants. It is the
time to consider having separate plan outlay for migrants.
11
Strengthening the activities of Postal Department
Communication Services more particularly for rural mass is through Postal Department’s
activities and similarly so to middle and low income group of urban mass.
Government has granted license to number of Courier Service Operators, who have established
their offices and outlets throughout the country, providing access to General Public. In the
absence of easy access to Post Offices, people avail the services of courier by paying heavy
rates for registration of articles.
We propose opening of speed post service outlets in all areas, more particularly in residential
localities, through which Public are benefitted and Postal Department’s revenue is increasing.