Empowered Committee to finalize a mechanism for a new formula for running allowance.
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
No.E(P&A)II-2013/RS-14 New Delhi, dated: .6.2013.
1.The General Secretary, 2.The General Secretary,
3, Chelmsford Road, 4, State Entry Road,
New Delhi-110055. New Delhi – 110055
Sub: Empowered Committee to finalize a mechanism for a new formula for running allowance.
Ref: (i) NFIR’s letter No. IV/RSAC/Conf./IV dt. 8.4.2013.
(ii) AIRF’s letter no. AIRF/Sub-Committee No. 143 (94) dt. 6.4.13
The issues raised by the federations in the letters referred above, expressing concern on the formation of Empowered Committee on the captioned subject without consulting the staff side, have been considered by Board. At the outset Board would like to assure the Federations that the said committee has the clear mandate for holding detailed consultations with the federations and all the other stakeholders as well before firming up their recommendations. It would be pertinent to mention in this context, and the Federations would be well aware, that the scheme of Running Allowance for the running staff of Indian Railways since its inception has been deliberated upon by a number of committees in the past, and detailed and meaningful consultations with staff side have been the essential feature of the recommendations of these committees. The inherent purpose behind formation of this Committee is to devise a workable solution to long pending issues of the Running staff which would be both in the interest of the Running Staff as well the organization. Board would, thus, like to reiterate that the apprehensions expressed by the staff side are clearly misplaced.
2. Prior to implementation of VIth CPC, Kilometreage Allowance was being paid to the Running Staff based on a formula devised by RAC 1980, which was arrived at after taking into account the views of all the stakeholders duly taking into account the then scales of pay and allowances of both running and non-running staff. VIth CPC brought in a radical change in the pay structure of government employees. In line with the general principle of de-layering adopted by the Commission, number of pay scales were amalgamated into fewer pay bands. The new pay structure rendered the 1980 formula unfeasible and thus arose a need for a new formula. As the Federations would be well aware, Board then constituted a Joint Committee for devising a new formula and determination of the quantum of pay element. Since the said Committee instead, merely doubled the running allowance, like other allowances, and subsequent developments of increasing the running allowance by 25%, number of issues were left unaddressed. For instance, in the absence of a formula-based running allowance, the demand for revision from the date of the pay commission could not be addressed. Taking all these factors into account including the pressing need for a dynamic formula, as was existing earlier with good results for all the stakeholders, Board decided to constitute this Committee.
3. As regards the request to dissolve the Empowered Committee, it is stated that the Indian Railways has an evolved system of finding solutions to various contentious issues that it is faced with, in consultation with all the stakeholders. It would thus not be fair to stall such a system as demanded. The process of consultations with all the stakeholders, which could not happen earlier due to the elections for recognition of Federations in April, would soon commence, and the representatives of the staff side would be welcomed for offering their views, so that the organizational interests in general and those of the Running Staff in particular, are well served.
For Secretary/Railway Board.