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50% DA MERGER…-CENTRAL TRADE UNIONS JOINT MEMORANDUM TO FINANCE MINISTER

June 10, 2014 rajasinghmurugesan

CENTRAL TRADE UNIONS JOINT MEMORANDUM TO FINANCE MINISTER

 Date: 06 Jun 2014 20:38:30

6th June 2014

The Hon’ble Minister of Finance,
Govt. of India,
North Block,
New Delhi

Dear Sir,

 

We welcome you over your takeover as Finance Minister of the new Govt. formed on verdict of the people of India and thank you for having invited the Central Trade Unions representing the most important stake holder, the working men and women of this country, in both organized as well as unorganized sector, to this pre-budget consultations.

We wish that our candid observations, considered views and concrete proposals are taken in the right spirit and responded with all seriousness and given appropriate reflections in the ensuing budget 2014-15.

Our proposals:

Some of these specific proposals have time and again been placed by us in various policy making fora including the earlier pre-budget consultations. However, we would like to reiterate them, urging your positive response:

Take effective measures to arrest the spiraling price rise and to contain inflation; Ban speculative forward trading in commodities; Universalise and strengthen the Public Distribution System; Ensure proper check on hoarding; Rationalise, with a view to reduce the burden on people, the tax/duty/cess on petroleum products.

There must be massive investment in the infrastructure in order to stimulate the economy for job creation. It is our considered view that the Public sector should take the leading role in this regard. The plan & non-plan expenditure should be increased in the budget to stimulate jobs creation and guarantee consistent income to people.

Minimum wage linked to Consumer Price Index must be guaranteed to all workers, taking into consideration the recommendations of the 15th Indian Labour Conference as enriched by Apex Court of the country as reiterated in 44th ILC in 2012. In any case, it should not be less than Rs.15,000/- p.m.

FDI should not be allowed in crucial sectors like defence production, telecommunications, Railways, financial sector, retail trade, education, health and media.

The public sector units played a crucial role during the year of severe contraction of private capital investment immediately following the outbreak of global financial crisis. PSUs should be strengthened and expanded. Disinvestment of shares of profit making public sector units should be stopped forthwith. Budgetary support should be given for revival of potentially viable Sick CPSUs.

In view of huge joblosses and mounting unemployment problem, the ban on recruitment in Govt. deptts, PSUs and autonomous institutions (including recent Finance Ministry’s instruction to abolish those posts not filled for one year) should be lifted as recommended by 43rd Session of Indian Labour Conference. Condition of surrender of posts in govt. departments and PSUs should be scrapped and new posts be created keeping in view the new work and increased workload.

Proper allocation of funds be also made for interim relief and 7th Pay Commission.

The scope of MGNREGA be extended to agriculture operations and employment for minimum period of 200 days with guaranteed statutory wage be provided, as unanimously recommended by 43rd Session of Indian Labour Conference.

The massive workforce engaged in ICDS, Mid-day meal scheme, Vidya volunteers, Guest Teachers, Siksha Mitra, the workers engaged in the Accredited Social Health Activities (ASHA) and other schemes be regularized. No to privatization of centrally funded schemes. Universalisation of ICDS be done as per Supreme Court directions by making adequate budgetary allocations.

Steps be taken for removal of all restrictive provisions based on poverty line in respect of eligibility coverage of the schemes under the Unorganised Workers Social Security Act 2008 and allocation of adequate resources for the National Fund for Unorganised Workers to provide for Social Security to all unorganized workers including the contract/casual and migrant workers in line with the recommendations of Parliamentary Standing Committee on Labour and also the 43rd Session of Indian Labour Conference. The word BPL redefined and redistributed at the earliest.

Remunerative Prices should be ensured for the agricultural produce and Govt. investment public investment in agriculture sector must be substantially augmented as a proportion of GDP and total budgetary expenditure. It should also be ensured that benefits of the increase reach the small, marginal and medium cultivators only;

Budgetary provision should be made for providing essential services including housing, public transport, sanitation, water, schools, crèche health care etc. to workers in the new emerging industrial areas. Working women’s hostels should be set up where there is a concentration of women workers.

Requisite budgetary support for addressing crisis in traditional sectors like Jute, Textiles, Plantation, Handloom, Carpet and Coir etc.

Budgetary provision for elementary education should be increased, particularly in the context of the implementation of the ‘Right to Education’ as this is the most effective tool to combat child labour.

The system of computation of Consumer Price Index should be reviewed as the present index is causing heavy financial loss to the workers.

Income Tax exemption ceiling for the salaried persons should be raised to Rs.5 lakh per annum and fringe benefits like housing, medical and educational facilities and running allowances should be exempted from the income tax net in totality.

Threshold limit of 20 employees in EPF Scheme be brought down to 10 as recommended by CBT-EPF. Pension benefits under EPS unilaterally withdrawn by the Govt. should be restored. Govt. and Employers contribution be increased to allow sustainability of Employees Pension Scheme and for provision of minimum pension of Rs.3000/- p.m.

New Pension Scheme be withdrawn and newly recruited employees of central and state govts on or after 1.1.2004 be covered under Old Pension Scheme;
Demand for Dearness Allowance merger by Central Govt. and PSUs employees be accepted and adequate allocation of fund for this be made in the budget;
All interests and social security of the domestic workers to be statutorily protected on the lines of the ILO Convention on domestic workers.

The Cess Management of the construction workers is the responsibility of the Finance Ministry under the Act and the several irregularities found in collection of cess be rectified as well as their proper utilization must be ensured.

In regard to resource mobilization, we would like to emphasize the following:

A progressive taxation system should be put in place to ensure taxing the rich and the affluent sections who have the capacity to pay at a higher degree. The corporate service sector, traders, wholesale business, private hospitals and institutions etc. should be brought under broader and higher tax net. Increase taxes on luxury goods and reduce indirect taxes on essential commodities as at present the overwhelming majority of the populations are subjected to Indirect taxes that constitute 86% of the revenue.

Concrete steps must be taken to recover huge accumulated unpaid tax arrears which has already crossed more than Rs.5 lakh crore on direct and corporate tax account alone, and has been increasing at a geometric proportion. Such huge tax-evasion over and above the liberal tax concessions already given in the last two budgets should not be allowed to continue.

We welcome the constituted of SIT for black money and urge for speedy action.
Effective measures should be taken to unearth huge accumulation of black money in the economy including the huge unaccounted money in tax heavens abroad and within the country. Finance Minister should make provisions to bring back the illicit flows from India which are at present more than twice the current external debt of US $ 230 billion. This money should be directed towards providing social security.

Concrete measures be expedited for recovering the NPAs of the banking system from the willfully defaulting corporate and business houses. By making provision in Banking Regulations Act, CMDs and Executives to be made accountable for creation of NPAs.

Tax on Long term capital gains to be introduced; so also higher taxes on the security transactions to be levied.

The rate of wealth tax, corporate tax, gift tax etc. to be expanded and enhanced.

ITES, outsourcing sector, Educational Institutions and Health Services etc. run on commercial basis should be brought under Service Tax net. Govt. Small saving instruments under postal and other agencies be encouraged by incentivizing commission agents of these scheme

OUR SERIOUS CONCERN:

We would like to express our strong resentment that the previous Govt. failed to positively respond to the collective voice of the Central Trade Unions on the very important issues concerning the working people of India, both organized and unorganized, consistently repeated in the form of a ‘10 point charter’ backed by several collective nationwide programmes. We expect that this Govt. will take initiative to discuss these issues with the Central Trade Unions in order to find a solution.

We also express our opposition to the so called Banking Reforms encouraging private sector/capitalists banking at the cost of public sector banks which saved the economy to an extent during the last global financial meltdown. Several such measures against the working men and women in this country including anti workers proposals contained in the New Manufacturing Policy have our strong opposition, as in our experience these kinds of measures have helped the growth of only a small section of the capitalists while the larger sections of the working population continue to be marginalized and impoverished.

POST BUDGET MEETING WITH TRADE UNIONS

Successive Finance Ministers have agreed to hold post budget meetings / consultations with the central trade unions. However, it has not been materialized except for one occasion. We understand such meetings did take place with the Corporate Associations/Employers Federations. We would like to importunate upon you to arrange such post budget meeting with trade unions also.

With regards,
Yours sincerely,

BMS INTUC AITUC HMS CITU

Source: BMS

da-merger

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Filed Under: 50% Da merger, 7th pay commission, CG Staff news June 10, 2014 1 Comment

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