Central PSUs allowed to negotiate wage talks

Central PSUs allowed to negotiate wage talks

Decks were cleared on Wednesday for wage revision of 9.35 lakh unionised employees of 320 central public sector enterprises (CPSEs).

The Union Cabinet, at a meeting chaired by Prime Minister Narendra Modi, approved the Wage Policy for the 8th round of wage negotiations for workmen in CPSEs.

However, the policy makes it clear that no budgetary support would be provided for any wage increase by the government, and the entire financial implication would have to be met by the respective CPSEs from their internal resources.

CPSEs in which the government has approved restructuring or revival plan, the wage revision will be done as per the provisions of the approved restructuring or revival plan only, an official statement said.

There are nearly 12.34 lakh employees of 320 CPSEs in the country, of whom some 2.99 lakh employees are board level and below-board level executives and non-unionised supervisors.

According to the decision taken, the management of CPSEs would be "free" to negotiate wage revision for workmen where the periodicity of wage settlement for 5 years or 10 years "expired generally" on December 31, 2016, keeping in view the affordability and financial sustainability of such wage revision for the CPSEs concerned.

The CPSE managements also have to ensure that negotiated scales of pay do not exceed the existing scales of pay of executives/ officers and non-unionised supervisors of respective CPSEs, the statement said.