Remove Anomalies And Arbitrariness In Implementation Of Dearness Allowance For Executives Of PSUs : FOPO
Federation also asks government to issue guidelines for payment of arrears due to executives on account of freeze applied during the period July 2020 to June 2021
The Federation of Oil PSU Officers (FOPO) has written to Secretary, Department of Public Enterprises, demanding removal of anomalies and arbitrariness in implementation of Dearness Allowance in respect of Central Public Sector Enterprises. Convenor of FOPO, Shri Mukul Kumar told www.indianpsu.com “DA freeze was implemented only in respect of executives and non-unionized supervisors and not made applicable to workmen as a result of which executives were given an unfair and unequal treatment and were paid lesser DA as compared to workmen who report to them. The same is violative of rights of equality and natural justice and needs to be corrected by allowing arrears for the period 01.10.2020 to 30.06.2021 and those who are retiring soon would be the biggest sufferers”.
FOPO is an apex organization of officers of Oil PSUs comprising Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), Oil and Natural Gas Corporation (ONGC), Hindustan Petroleum Corporation Limited (HPCL), Oil India Limited (OIL), Gas Authority of India Limited (GAIL), Chennai Petroleum Corporation Limited (CPCL) and Numaligarh Refinery Limited (NRL).
A copy of the letter sent by FOPO is reproduced below for the benefit of the viewers of www.indianpsu.com –
Shri Ali Raza Rizvi
Secretary, Department of Public Enterprises
Lodi Road, CGO Complex, Block No. 14
New Delhi-110003
Subject: Removal of anomalies and arbitrariness in implementation of Dearness Allowance in respect of Central Public Sector Enterprises
Dear Sir,
We draw your kind attention towards DPE OM dated 03.08.2017 on pay revision in respect of CPSEs w.e.f. 01.01.2017 and quote the guidelines in respect of Dearness Allowance as under:
QUOTE :
- Dearness Allowance: 100 % DA neutralization would be continued for all the executives and non-unionized supervisors, who are on IDA pattern of scales of pay w.e.f. 01.01.2017. Thus, DA as on 01.01.2017 will become zero with link point of All India Consumer Price Index (AICPI) 2001 = 100, which is 277.33 (Average of AICPI for the months of September, October & November 2016) as on 01.01.2017. The periodicity of adjustment will be once in three months as per the existing practice.
UNQUOTE :
The guidelines were being implemented in its letter and spirit till Government of India announced its decision for freezing of DA in respect of CPSEs. It is worthwhile to mention that the decision to apply DA freeze was implemented only in respect of executives and non-unionized supervisors and not made applicable to workmen as a result of which executives were given an unfair and unequal treatment and were paid lesser DA as compared to workmen who report to them. The same is violative of rights of equality and natural justice and needs to be corrected by allowing arrears for the period 01.10.2020 to 30.06.2021.
Furthermore, DPE OM No. W-02/0039/2017-DPE (WC)/GL-II/21 dated 02.08.2021 was issued arbitrarily for restoration/unfreezing of DA w.e.f. 01.07.2021 (for III quarter of 2021) with AICPI applicable for April to June 2021 (II quarter of 2021).
The same has not only resulted in a loss of approximately 1.5 % of DA for CPSE executives under 2017 scales but also done away with age old practice and formula for DA revision as explained below:
| DA Period | Practice Prior To DA Freeze | OM Dated 02.08.2021 |
| July To September | Average AICPI March To May | Average AICPI Dec. To Feb. |
We are enclosing copy of DPE OM W/02/0039/2017-DPE(WC)/GL-XI/20 dated 14.08.2020 for your ready reference and perusal which clearly indicate the error committed in issuance of OM dated 02.08.2021. The OM dated 02.08.2021 is devoid of any rationale and is in contravention of pay revision guidelines mentioned above and Presidential Directives issued for pay revision in respect of each CPSE.
We request your kind intervention in getting the matters resolved on an urgent basis by issuance of revised OM for DA revision w.e.f. 01.07.2021 in line with the DPE guidelines and issuance of OM for DA revision w.e.f. 01.10.2021 on the same pattern. Further, we also request for issuance of guidelines for payment of arrears due to executives on account of freeze applied during the period July 2020 to June 2021 to maintain equity with workmen and other employees who are working under the supervision of executives.
Thanking you,
Yours sincerely
(Mukul Kumar)
Convenor FOPO
