NATIONAL  PENSION  SYSTEM (NPS)

AND FUTURE OF PENSION IN THE NEO-LIBERAL ERA.

M. Krishnan

Ex-Secretary General, NFPE &

Confederation of Central Govt. Employees & Workers

(Paper presented in the National Webinar organised by AIPRPA
on 17-12-2020)

              Fourth Central Pay Commission headed by the Retired Justice of Supreme Court of India Shri. Ashok Singhal, made the following observations regarding pension in para 2.13 of Part-II of its report:

              “The concept of pension, however old in its origin, had the latent and real desire to provide for an eventuality - known and unknown.  The known eventuality was old age and probable reduction in earning power, while unknown eventuality was disability by decease or accident or death.  It’s real purpose was security, social security.  Eventhough the begining was oblique, indiscernible and faint, but the germ of an effort to provide security ran through the provision and it is natural that it should have grown and flowered with the development of human understanding and desire to look after and provide for those who deserve it, for, man has constantly been seeking means by which to enhance his economic security.”

              Payment of pension to Government employees strted in Europe for the first time in Nineteenth Century.  It’s genesis can be traced to the first Act of Parliament in United Kingdom (Britain) in1810, to be concerned with the provision of pension generally in Public Offices.  The Act which sustantively devoted itself exclusively to the problem of Superannuation pension was passed in 1834, called Superannuation Act 1834.  These are landmarks in pension history because they attempted for the first time to establish a comprehensive and uniform scheme for all, whom we may call civil servants.  In England, the basic social security pension was introduced from the year 1946.  In USA the pension was first introduced as a social security scheme.  It was thereafter, that the Civil services retirement pension system was introduced in USA in 1920.  In fact, social security in old age commended itself in earlier stages as a moral concept, but in the course of time it required legal connotation. 

              In India the first pensioner’s Act was introduced in 1871.  Under the Pensioners Act 1871,  enacted during the British Regime, Pension is a bounty given as a matter of grace, depending on the sweet will of the employer and was to be paid by the Collector or the Deputy Commissioner or other authorised officer.  Initially this class of Pension appears to have been introduced as a reward for loyal service.

              In the course of transformation of society from feudal to welfare state and as socialistic thinking acquired responsibility, states obligation to provide security in old age, an escape from undeserved want, was recognised and as a first step, pension was treated not only as a reward for past service, but with a view to helping the employee to avoid destitution in old age.  The quid-pro-quo was that when the employee was physically and mentally alert, he/she has rendered unto the master the best, expecting the master to look after him in the fall of life.

              After Independence of our country, just like every citizen of our country, Pensioners also expected positive changes in the attitude of the National Government towards ,the issues of pensioners and improvement in the Pension structure.  But nothing of that sort happened.  Instead, the very same attitude of the British Government was followed and pensioners became a neglected lot, a category of unwanted people, a non-productive financial burden, a head-ache to the Government.  Once an employee retires from service, the nexus between him and the Government was broken.  Problems of pensioners were being placed at the lowest position in the priority list, instead of seriously considering them on top priority basis.  The Government mostly remained adamant, refused to budge, turned a deaf ear to the problems of pensioners.  In the 1st, 2nd and 3rd Central Pay Commission’s terms of reference, revision of pension structure and other pensionary benefits of the Central Government employees was not included.  Poor Pensioners could not ventilate their grievances and they could not demonstrate as there was no organised movement of pensioners at that time.  Most of the poor pensioners prayed to the God to improve their lot.

              Inspite of acknowledging the right to pension in Article 366(17) of the Constitution of India, in reality no preference was given to pensioner’s till 1982.  1982 became a turning point in the history of Pensioners in India.  It is in that year, Honourable Supreme Court of India upheld the right to Pension.  The historic judgement in the Nakara case, which is called the magna carta of pensioners, was delivered on 17-12-1982 by the five member constitution bench of the Hon’. Supreme Court of India.  I am not going into the details of the Judgement, as my collegue Com: K.Raghavendran has already dealt in detail, the important aspects of the judgement.

              It is at that time, in 1983, Central Government appointed 4th Central Pay Commission.  Inspired by the historic judgement, Pensioners Associations, big and small, sprang up at all important cities of the country.  The National Council, Staff side of the Joint Consultative Machinery, of the Central Government serving employees also siezed of the importance of the judgement.  Just like 1st, 2nd & 3rd Central Pay Commissions  in the terms of reference of the 4th Central Pay Commission also, there was no mention about revision of pension and other pensionery benefits of Central Government employees.  Combined demand of National Council (JCM) staffside and the Pensioners organisations compelled the Government to amend the terms of reference of 4th CPC and the following item was also incorporated in the terms of reference.

              “to examine the existing pension structure including DCRG and making recommendations which may be desirable and feasible”.

              Fifth Central Pay Commission headed by Retired Supreme Court Justice (Shri) S.Ratnavel Pandian made the following observation regarding pension.

              “Pension is their deferred wage.  Pension is their statutory, inalienable and legally enforceable right and it had been earned by the sweat of their brow”.

              In the year 1971, the Hon’ble Supreme Court of India while disposing the case pertaining to Deokinandan Prasad Vs. State of Bihar, declared that pension is a property under Article 31(1) of the Constitution and by a mere Executive order, the state had no power to withhold the same.

              Fourth Central Pay Commission in para 2.3 of the Part-II Report, reiterated as follows:-

              “Pension is not by way of charity or an ex-gratia payment, or a purely social welfare measure, but may fairly be said to be in the nature of a “right” which is enforceable by law”.

              As already mentioned consequent on pronouncement of Nakara Judgement by the Hon’ble Supreme Court of India, the Government was compelled to include the clause regarding revision of pension and pensionary benefits, in the terms of reference of 4th and 5th Central Pay Commission.  But when it came to 6th Central Pay Commission, the terms of reference was modified as follows:

              “To examine the principles which should govern the structure of pension to the present and former Central Govt. Employees appointed before 1st January 2004.”

              Thus the revision of pension and pensionary benefits of Central Govt. Employees appointed after 01-01-2004, was completely excluded from the purview of 6th Pay Commission.

              The reason for this change is that the Govt. of India has introduced a New Contributory Pension Scheme for the Central Govt. employees who joined service on or after 01-01-2004.

Pension Refeorms in India and New Contributory Pension Scheme (NPS):

              Consequent on implementation of neo-liberal globalisation policies in 1980s, Pension privatisation offensives has engulfed the workers and employees almost all over the world.  Govt. of India also faithfully followed the international dictates of the world capitalism.  Union Finance Minister of the erstwhile BJP Govt. ie. A.B.Vajpayee Government in its budget speech 2001-02 envisaged a new Pension Scheme based on defined contribution instead of defined benefit, to new entrants entering Government service.  As a sequel to the above announcement  a High Level Expert Group was constituted on 25th June 2001 to review the existing pension scheme and provide roadmap for introducing a new pension system based on defined contributions.  Based on the recommendations of this committee called “Bhattacharyya Committee on pension reforms”, the BJP Govt. issued an order on 17-12-2003, under the title “New Pension for those appointed on or after 01-01-2004”.  Government of India promoulgated an ordinance on New Pension Scheme (NPS) on 4th December 2004 to give legislative sanction to the order.  Most of the State Government in India also followed the suit.  Govt’s repeated attempt to pass an Act in parliament could not succeed  due to  stiff opposition of left parties who supported the then UPA Government in power.  Finally when a Government without the support of Left Parties came to power the Pension Fund Regulatory and Development Authority Act (PFRDA Act) was passed in the Parliament on 2013 September 18th.

Political and Economic background of the New Pension System (NPS).  The concept of privatized and individual pension account and Private Fund Managers arose in the mid-eighties in Europe and United States, when the economy of these countries ,suffered from a serious recessionary situation.  In Europe, the Government and Corporate sector thought of this change in concept and implementation of Pension reforms largely by promoting a gradual switch over for providing “Pensions” through funded schemes - ie; from defined benefit to defined contribution, either managed by or on behalf of employing companies (known in Britain as occupational pension scheme) or else on an individual basis (Personal pensions).

              Official propaganda sought to justify this to the public on the grounds that the cost of tax payers on the state funded schemes is no longer affordable and the pension fund scheme can provide finance for productive investment and economic regeneration.  The idea was that this private individual finance, collected as pension contribution from the employees, when invested will boost ,the declining share market and help economic revival.  In fact, the impetus behind the switch over towards funded pension schemes came from politically powerful vested interests in the financial sector (ie. corporates) who were anxious to strengthen and perpetuate the importance and profitability of their own “industry”, thereby also increase the size of the “wall of money” which helps to prop up the market value of their financial securities and other assets.

              Naturally, those who also promote such increasing flows of funds into financial markets (share markets) did not care to dwell on the likelihood that supply of funds may be rapidly out-stripping the demand, and that there is consequent risk of serious losses to investors (here in the case of Pension fund investors are employees) and the collapse of the financial institutions.  In reality, any benefit supposed to depend on the vagaries of share market is always vulnerable to total ruin.  This happened during 2008 world recession.

              At the begining of 1980’s, the International Monetory Fund (IMF) and World Bank, seriously took up the cause of privatised Pension Scheme and consequent Pension Funds and burnt mid-night oil to make a number of studies and set up various working groups.  Publishing of the India specific report released by World Bank in April 2001 titled - “India - Challenge of old age income security” was followed by another report ‘ “IMF working paper on Pension reeforms in India” published in September 2001.  The reports clearly stated that Pension obligation (ie. obligation of the Government to pay pension as per the Pension Rules) or promise ,made by the Government, which has potential on exerting pressure on Government finance, has been the focuss in assessing medium to long-term fiscal sustainability.  In tune with the above neo-liberal dictates of the IMF and World Bank, in the 2001-2002 Budget spech of Finance Minister of then BJP Government made the observations the Central Govt.’s Pension liability has reached unsustainable proportions and hence it is high time that a new contributory pension scheme is introduced for the Government servants entering the Central Government services.

              It is quite clear that what the Government of India was trying to do by introducing the so called “New Pension Scheme” was nothing but faithfully following the pro-corporate pension reforms in toto and thus it is a part of the imperialist globalisastion in the interest of big capitalists and Multi National Companies and it has nothing to do with the welfare of the employees or pensioners or any individual or even Government finances. 

              Parliamentary Standing Committee on Finance (2010-2011) of 15th Lok sabha of Ministry of Finance headed by shri. Yaswanth Sinha in its 14th Report on PFRDA Bill, has made the following observations - Para 44 - “The Committee, deeply concerned about the uncertainity of returns on the funds of the subscribers, are dismayed at the casual approach of the Government as reflected in clause 20(g), wherein the hapless subscribers have no implicit or explicit assurance of benefits, except market based guaranteed returns mechanism, neither tried or tested.  As any effective pension scheme needs to be underpinned by stability of returns and reasonable post retirement incomes, it is imperative that Government should provide for minimum guaranteed returns, and not mere camouflage of market based guarantee, which should not be less than the minimum returns available currently under ,the defined benefit pension scheme.  The Committee therefore, desire that the Government must divise a mechanism to enable subscribers of NPS to be ensured of such a minimum assured/guaranteed returns for their pensioners, so that they are not put to any disadvantage vis-a-vis other pensioners and thus going a long way in creating a sense of security amongst the employees that not only would their capital be safe but they would also be getting stable returns on the same.  The Committee, therefore, recommended that clause 20 (2)(g) of the Bill be altered accordingly”.

              Neither the Government has taken any action to guarantee Minimum Pension as recommended by Parliamentary Standing Committee, nor it has introduced a minimum assured returns scheme as provided in sub-section 2(d) of section 20 of PFRDA Act 2013.

              The Audit Report dated 4th August 2020 on National Pension System by the Comptroller and Auditor General of India (C&AG) in Para 3.7 of its report made the following observations/recommendations -

              “As per PFRDA Act 2013, vide sub section 2(d) under Section 20, the subscriber seeking minimum assured returns shall have the option to invest his funds in such schemes providing minimum assured returns as may be notified by the Authority.  Even after a lapse of more than 15 years since introduction of the NPS, the subscribers were yet to receive such minimum assurance.  Immediate steps need to be taken for providing Minimum Assured Returns Scheme (MARS) in compliance to the provisions of the PFRDA Act, to the subscriber for ensuring their social security post retirement”.

              As per the C&AG Audit report dated 4th August, 2020, as on 31st March 2018, there are 58.01 lakhs Government sector subscribers including 17,58,144 Central Government employees, 31,63,415 State Government employees, 1,70,856 Central Autonomous body employees and 7,08,585 State Autonomous body employees.  The pension of these 58 lakhs employees is not guaranteed and hence they are living in a State of uncertainity about their futurte.  Further they are not eligible for family pension after death on retirement, Dearness relief, Additional pension inspite of the fact that they are paying 10% of their salary every month including Dearness Allowance towards New Pension Scheme.  They are also not eligible for pension revision through Pay Commissions. 

              At the same time Corporates and Multi National Companies are happy because as per the C&AG Audit report dated 4th August 2020, the total Asset Under Management (AUM) in NPS amounted to 3,99,245 crores as on 31st January 2020 with 3,41,815.87 crores pertaining to Government Sector.  (Central and State Government employees).

Employees and Pensioners under Old Pension scheme (OPS) are also not safe:

Clause 12(5) of PFRDA  Act is reads as follows:

              “Notwithstanding anything contained in clause (c) of sub section (3), the Central Govt. may, by notification extend the application of this Act to any other pension scheme (including any other pension scheme exempted and notified ,under clause (c) of Sub section (3)”.    That means no seperate Act is to be passed in Parliament for this purpose.

              The Central Govt. has made an attempt in this regard, through 6th Central Pay Commission appointed in 2004, ie. immediately after the introduction of New Pension Scheme from 01-01-2004.

              As mandated by Government, the 6th Central Pay Commission chaired by Rtd. Justice Sreekrishna has appointed Centre for Economic Study and Policy, Institute for Social and Economic Change (ISEC), Bangalore to suggest various options for suitable self-sustaining models to finance the pensions of Central Government employees with the final objective that funds so devised are able to meet substantially the entire pension liability of the Government ie; pension liability of employees and pensioners coming under the Old Pension Scheme (OPS)  and to assess the financial liability that will need to be initially incurred by the Government for implementation of such self-sustaining models.

              The Committee made the following recommendations -

              “In case, the Government want to create a pension fund to discharge their entire pension liability (ie; the pension liability of Central Government employees and Pensioners coming under old Pension Scheme), the study by the Institute of Scoial and Economic Change (ISEC) reveals that the net present value of the projected pension liability is Rs.3,35,628 Crores; based on an assumed rate of return of 8 percent.  A fund of this magnitude will help the Government to meet the pension payments from the returns of the fund and help avoid earmarking resources on an annual basis for the mounting pension outgo that takes place on account of Pay As You Go System (ie. old Pension System) that currently happens in each budget.”

              Government has neither accepted this recommendation of 2006 of 6th Central Pay Commission nor rejected it.  As ,the number of Old Pension Scheme pensioners and Old Pension Scheme Central Govt. employees are coming down every year, the Government may consider the proposal at the appropriate time.  Thus, it may be seen that the chances of converting the existing OPS pensioners and OPS Central Government employees into pensioners getting pension from Pension fund is still hanging over their head ,as a democleus sword.  Suppose the pensioners and employees coming munder the purview of Old Pension Scheme are brought under a Funded Pension Scheme, as explained earlier, by a Gazette notification by the Government, they will be governed by clauses and rules of PFRDA  Act.  Their pension will be from Pension fund.  The amount of pension will depend upon the vagaries of share market.  If Pension Fund collapse, there is no guarantee that they will get pension.  Further, they will not be eligible for Dearness Relief, additional pension on attaining the age of 80 years, family pension if death takes place after retirement, pension revision  based on the recommendations of Pay Commissions.

What shall we do and how we can overcome this situation?

              There is no short cut before the Central Government employees and Central Government Pensioners, both NPS and OPS, to overcome this situation.  Our social security is in danger.  We have to mobilise and fight against these neo-liberal pension reforms.  We should build up a mass movement.  We should learn lessons from the farmers of India.  Immediately on passing the farms reforms Acts, they spontaneously reacted.  It is high time to organise, similar type of movement against NPS.  Our one and the only demand should be “Scrap NPS and restore OPS” (ie; Scrap National Pension System mand restore Old Pension System).  If 32 lakhs Central Government Employees and 33 lakhs Central Government Pensioners rally behind the demand and come to the street, no Government can ignore it.  Along with the Central Government Employees and Pensioners, if we succeed in making the State Government employees and State Government Pensioner and Autonomous body employees and Pensioners,  numbering about 150 lakhs also join the movement,  it will become a force of about more than two crores in numbers and the Government will be compelled to Scrap NPS and restore OPS. Let us work together for such a mass movement of Employees & Pensioners.  It is not impossible.  If farmers can do it, we can also do. 

......................

 PRESS NEWS 

Ministry of Communications

India Post Payments Bank launches its digital payments’ services ‘DakPay’, aims to Transform Banking Experience at the last mile

DakPay is double strength of service offerings in the form of online payments and home delivery of financial services – Minister Ravi Shankar Prasad

Posted On: 15 DEC 2020 1:58PM by PIB Delhi

Department of Posts (DoP) and India Post Payments Bank (IPPB) unveiled a new digital payment app ‘DakPay’ at virtual launch event today. The App is launched as part of its ongoing efforts to provide Digital Financial inclusion at the last mile across India.

DakPay is not just a digital payment app but a suite of digital financial and assisted banking services provided by India Post & IPPB through the trusted Postal (‘Dak’) network across the nation to cater to the financial needs (‘Pay’) of various sections of the society – be it sending money to the loved ones (Domestic Money Transfers – DMT), Scan QR code and make payment for services/merchants digitally (Virtual debit card & with UPI), enabling cashless ecosystem through biometrics, providing interoperable banking services to the customers of ANY BANK (AePS) and Utility Bill Payment services.

At the launch event Minister Ravi Shankar Prasad appreciated India Post Payments Bank’s efforts during fight against Covid-19 by providing doorstep financial assistance through AePS leading to financial empowerment of the unbanked and the underbanked.

Announcing the launch of the “DakPay”, Shri Ravi Shankar Prasad, Union Minister for Communications, Electronics & IT and Law &Justice said, “India Post stood the test of times by serving the nation through various postal services digitally and physically during nationwide lockdown. Launch of DakPay adds up to the legacy of India Post which is about reaching out to every household. This innovative service will not only give access to banking services and postal products online, but also is a unique concept where one can order and avail postal financial services at doorsteps. I strongly believe that this double strength of service offerings in the form of online payments and home delivery of financial services combined with nationwide network of Postal department will be another big leap towards Prime Minister’s vision of a financially inclusive and an AatmaNirbhar Bharat.

On the occasion, Shri Pradipta Kumar Bisoi, Secretary (Posts) & Chairman, IPPB Board said that, “Dak Pay brings simplified payment solutions to all by offering all customers access to the banking and payments products and services either through an App or in assisted mode with the help of the trusted Postman. Dak Pay is truly an Indian solution designed to address the financial needs of every Indian”.

“The unveiling of DakPay is a landmark achievement in IPPB’s journey and will further deepen comprehensive financial inclusion to bring forth the dawn of a ‘Truly Inclusive Financial System’. Our motto is  - Every customer is important, every transaction is significant and every deposit is valuable.” Said Mr. J Venkatramu, MD & CEO, India Post Payments Bank.

About India Post Payments Bank

ndia Post Payments Bank (IPPB) has been established under the Department of Posts, Ministry of Communication with 100% equity owned by Government of India. IPPB was launched by the Prime Minister Shri Narendra Modi on September 1, 2018. The bank has been set up with the vision to build the most accessible, affordable and trusted bank for the common man in India. The fundamental mandate of India Post Payments Bank is to remove barriers for the unbanked & underbanked and reach the last mile leveraging the Postal network comprising 155,000 Post Offices (135,000 in rural areas) and 300,000 Postal employees.

IPPB’s reach and its operating model is built on the key pillars of India Stack – enabling Paperless, Cashless and Presence-less banking in a simple and secure manner at the customers’ doorstep, through a CBS-integrated smartphone and biometric device. Leveraging frugal innovation and with a high focus on ease of banking for the masses, IPPB delivers simple and affordable banking solutions through intuitive interfaces available in 13 languages.

IPPB is committed to provide a fillip to a less cash economy and contribute to the vision of Digital India. India will prosper when every citizen will have equal opportunity to become financially secure and empowered. Our motto stands true – Every customer is important, every transaction is significant and every deposit is valuable. For further information on IPPB, visit www.ippbonline.com RCJ/M

(Release ID: 1680754) Visitor Counter : 2202 

India Post Launches Digital Payment App

India Post Payments Bank's UPI App. It's simple, secure and make payments in an instant! Try it from the Google Play Store. 

https://play.google.com/store/apps/details?id=com.fss.ippbpsp

Video Link : https://youtu.be/l6XsumnNd_E

 TRIBUTE TO COMRADE K.G. BOSE!

RED SALUTE TO COM.K.G.BOSE!

11^th December 2020 is the 46^th death anniversary of Com. K.G.Bose, the dynamic leader of the P and T and Central Government Employees. He was a former President of NFPTE as also former President of All India Postal Employees Union Class III. He was elected as an M.L.A. of W. Bengal Assembly and appointed as a Member of the Pay Commission for State Government Employees.

Com. K.G.Bose’s prominent role in the P and T Strike of 1946, Historic Strikes of 1960 and 1968 is well known. He was arrested, jailed for months and dismissed in connection with the proposed strike of 1949, but continued to lead the P and T movement till his death in 1974.

His life was a saga of struggles and sacrifices. He always fought for correct policies in the organization.  Even during treatment in London for dreaded cancer, his thoughts were always about the P and T movement, his colleagues and comrades. Com. K.G. continues to be an inspiration for generations of workers.

On his 46^th death anniversary, NFPE &R III AP CIRCLE  pays its respectful homage to the memory of Com.K.G.Bose!

RED SALUTE TO COM.K.G.BOSE!

 

EMPANELMENT OF PRIVATE DAY CARE THERAPY CENTERS FOR AYURVEDA, YOGA & NATUROPATHY UNDER CGHS  (CLICK THE LINK BELOW TO VIEW_)

Click Here to view/download the pdf

CENTRAL GOVERNMENT EMPLOYEES GROUP INSURANCE SCHEME - TABLE OF BENEFITS FOR 01.10.2020 TO 31.12.2020 (CLICK THE LINK BELOW TO VIEW)

https://doe.gov.in/sites/default/files/CGEGIS%20Table%20of%20Benefits%2001.10.2020%20to%2031.12.2020_0.pdf

 *******************

CLARIFICATION REGARDING ADMISSIBILITY OF TRANSPORT ALLOWANCE DURING NATION-WIDE LOCKDOWN DUE TO COVID-19 PANDEMIC

(CLICK THE LINK BELOW TO VIEW)

https://doe.gov.in/sites/default/files/MX-M452N_20201202_143448.pdf

RELAXATION OF SERVICE FOR LSG

 

RELAXATION OF SERVICE FOR LSG

 NOTIFICATION FOR COMPETITIVE EXAMINATION FOR RECRUITMENT TO THE CADRE OF POSTMAN AND MAILGUARD FROM ELIGIBLE MTS AND GDS FOR THE VACANCY YEAR 2020 (01.01.2020 TO 31.12.2020) IN RESPECT OF ANDHRA PRADESH CIRCLE  (CLICK THE LINK BELOW TO VIEW)

http://utilities.cept.gov.in/dop/pdfbind.ashx?id=5040

 REVOLUTIONARY GREETINGS 

Revolutionary Greetings to all the Leaders and Members of Confederation of Central Government  Employees’ and National Federation of Postal Employees who made the Strike on 26^th November-2020 a grand success against the anti people, anti working class  and anti farmers policies being pursued by the present Central Government.

      You have once again established the rich heritage and traditions of struggles and fight by Confederation and NFPE against the oppressions and onslaughts unleashed by the Government and to save the democratic Trade Union Right.

 This Strike has also given strong reply to some of the so called Trade Unions who withdrawn from the Strike and issued statements in favour of the Government and administration but We (Confederation and NFPE) have recognition of our fellow Workers.

 We on behalf of Confederation and NFPE convey our sincere thanks and Congratulations to all of you, who participated in this Historic Strike.

 

           R N PARASHAR

   SECRETARY GENERAL

CONFEDERATION & NFPE

                                        .............. UDAYKANT,CIRCLE SECRETARY,R III,AP CIRCLE

 

  24^th NOVEMBER 2020 - REVOLUTIONARY GREETINGS TO ALL COMRADES ON THE 67^th FOUNDATION DAY OF NATIONAL FEDERATION OF P & T EMPLOYEES (NFPTE)!

 

HOMAGE TO THE GREAT LEADERS WHO FORMED AND BUILT UP THE MILITANT ORGANISATION

 

RED SALUTE TO THE MARTYRS OF 1960 & 1968 STRIKES

 

NFPE CONTINUES IN THE GREAT TRADITION OF NFPTE

  One Day-Nation Wide Strike

26^th November 2020

On Call of NFPE & Confederation of Central Government employees and workers along with all Central Trade Unions and Independent Federations against anti people, Anti farmers and Anti Working-Class people's policies of Central Government.

Make every possible effort to make the Strike 100% Success.

 

 THE TASK BEFORE THE POSTAL EMPLOYEES AND CENTRAL GOVT. EMPLOYEES

EITHER FIGHT OR PERISH.

                                                                      M. Krishnan

Ex- Secretary General, NFPE & Confederation

1.      Central Government employees, particularly postal employees have a history of one and a half century of struggle spanning from pre-independence period to post-independence era. I am not venturing to explain the history of that period of sacrifice, brutal repression, severe punishments, and martyrdom in this article. That can be, on another occassion. I am trying to explain the common character of the struggles conducted by the Central Government employees and postal employees in pre and post independence era and their future task based on this experience.

2.      If one analyse the struggles organised during seventy years period prior to 1947, it can be seen that majority of those struggles were mainly for achieving defined wage structure and service conditions which was not in existence at that period.  Thus, through several big and small agitations and strikes, fixed working hours, wage structure based on the nature of duty performed, annual increments, leave entitlement, allowance to compensate price rise, pensionery benefits, right to organise and collective bargaining were achieved by employees from the most oppressive and unwilling British Government. 

3.      None of the benefits were granted as a gratis by the British Government.  Each benefit was obtained through heroic struggle.  The strike oganised by Postmen of Pune Head Post Office under the guidance of great freedom fighter Late Balagangadhara Tilak in the year 1880, the indefinite strike of Telegraph workers in 1908 under the leadership of Henry Barton, the indefinite strike of 1918 by Postmen of Mumbai under the leadership of V.G.Dalvi, the struggle organised by Potal Clerks in the years 1920-21 against the retrograde recommendations of Postal Enquiry Committee Report under the inspiring leadership of late Tarapada Mukherjee, the founder father of Postal Trade Union movement, the historic speech and clarion call for struggle by Tarpada Mukherjee in the 1921 Lahore speech and his consequent dismissal from service, the non-coperation agitation in 1931 of Postal employees under the leadership of Dada Ghosh, the 25 days strike of 1946 which is written in golden letters in the history of Indian Independence struggle, commenced by Postmen of Mumbai and then joined by entire P & T employees and finally converted into a biggest working class strike, inspired and guided by the revolutionary leader Late K.G.Bose, who electrified the entire Central Government employees movement --- all these struggles were organised for achieving new benefits which were not available to Central Government employees till then.  Most of the benefits which are now enjoyed by the Central Government employees are the result of the prolonged struggles conducted in pre-independent India, during British regime.  Thousands of known and unnown leaders and workers had sacrificed their entire life for the cause of posterity during those period.

4.      After independence (1947) upto 1990’s the struggle conducted by Central Government employees and Postal employees was mainly for improving or betterment of the benefits earned during the pre-independence period and to some extent for realizing some left out benefits like Bonus.  The main cause of the struggles were for betterment of wages and other service conditions mainly through various pay commission mechanisms and also through various ED committees in the case of Gramin Dak Sevaks formerly called as Extra-Departmental Agents.  The indefinite strike notice of 1957 demanding appointment of second Central Pay Commission and nationwide preparations thereof, indefinite strike of 1960 which lasted for five days demanding modifications and improvement of second pay commission recommendations, the historic one day strike of 1968 September 19th demanding Need Based Minimum Wage, 1974 Bonus strike of Railway Employees in which other Central Government employees also joined as solidarity strike for few days, the struggle against the attack on wages, DA and other service conditions during the 1975 Emergency period, the historic 1984 one day strike solely for realization of GDS demands, many other agitational programmes other than strikes --- all were conducted for improvement of wages and other service conditions.  These struggles were organised at national level under the leadership of legendary leaders like Dada Ghosh, K.G.Bose, N.J.Iyer, K.Adinarayana, Om Prakash Gupta, S.K.Vyas, and N.P.Padmanabhan and many other leaders in various states.

5.      The post independence period upto 1990’s was also the period of tremendous growth and leap forward of Central Government services and departments.  It was a period of all-round development of Central services.  Through the five year plan, the Central Government expanded the Central services to all parts of the nation for catering to various needs of the people like Communications, health, education, industry etc. etc.  More and more offices were opened in cities and villages.  To cope up with the work load due to opening of new offices and further expansion of services thousands of new posts were created and lakhs of new employees were recruited and appointed.  To supervise and coordinate the activities of field offices, Administrative offices at State, Central and Ministry level were also established.  Thus there was big increase in the number of offices and number of employees in Central Services during this period.  The quality of the services also has improved a lot.

6.      This growth trajectory lasted for 42 years from 1947 to 1990.  From 1991 onwards very big policy change took place in Central Services.  Neo-liberal globalisation policies were implemented in all sectors of the economy.  Central services were not an exception.  Closure of offices, merger of offices, Ban on recruitment, abolition of vacant posts, Ban on creation of new posts, Largescale outsourcing of the work performed by Central Government employees, introduction of Casual, Contract and daily rated mazdoor system, corporatisation of Government departments as a prelude to eventual privatisation are some of the neo-liberal policies introduced in Central Government services.  Fifth, Sixth and Seventh Pay Commissions, Expenditure Reforms Commission and various expert committees gave recommendations to expedite the implementation of neo-liberal policies in all Central Goverment departments.  During this period various types of resistance struggles were organised by Central Government employees in general and in each department.  In Postal department struggle and strikes against reorganisation and closure of Post Offices and RMS Offices, outsourcing of speed post booking, non-filling up of vacancies and closure of Branch Post Offices took place during the period from 1991 onwards along with the struggle for improvement of wages and service conditions and also against curtailment of trade union facilities.

7.      From 1991 onwards, the struggle of Central Government employees are mainly against the neo-liberal policies of closure, downsizing, outsourcing, corporatisation and casual contract system.  Unlike in the pre-independence period upto 1947 and post-independence period upto 1990’s, when the struggles  were  mainly for achieving benefits and for improving the wages and service conditions, the struggles from 1991 onwards in the Central Government departments was mainly for job security of employees.  Existence of each department and its employees faced big challenge from the policy of the Government.  Consequently, as a corollary to these attacks, attack on wage structure, social security and trade union rights also intensified.  The contributory pension system (NPS) was introduced. Instead of struggle for improving the existing benefits, the struggle for protecting the existing benefits became more prominent.  Confederation of Central Government Employees &  Workers organised strikes in 2012, 2014 and 2016. The historic sixteen days All India strike of Gramin Dak Sevaks took place during this period.

8.      The Telecom department, which was a part of Central Government Services with about five  lakhs employees and 10000 crore rupees yearly profit was corporatised during the period of neo-liberal reforms. Private telecom companies are given licences to operate. Government privatised VSNL. Ultimate result was that BSNL and MTNL became loss making entities and lakhs of employees were sent out on Voluntary Retirement scheme (VRS).

9.      After coming to power at Centre in 2014, the BJP-led  Modi Government started vigourously implementing the extreme neo-liberal polices of naked privatisation and dismantling of  public sector and Government departments.  In the defence sector the FDI limit is raised to 74% from 49%.  Defence ordinance factories are going to be corporatised and privatised.  In postal department India Post Payment Bank (IPPB), a  public limited company, started functioning.  Proposal for corporatisation of Postal Life Insurance and Rural Postal Life Insurance is pending approval of the cabinet.  Conversion of the existing parcel Directorate into a seperate company is in the pipeline.  Most of the work now done by postal employees such as booking of registered and speed post articles, money orders, acceptance of all savings bank deposits etc are going to be handed over to a public limited company called  Common Service Centre (CSC). If all the above reforms are implemented, thousands of  postal employees will become surplus and their job security will be in danger.  The situation in other Central Government departments is also more or less the same.  Govt’s decision to close down 12 out of 17 Government of India Printing Preses is an eye-opener to all those who believe that NDA Government will protect their job.  During the Covid-19 pandenic period, the Government has declared unbridled privatisation of all strategic sectors including Space Research, Atomic energy, Defence production etc.  The refusal of the Central Government to honour the assurance to increase the minimum pay and fitment formula, rejection of the demand to scrap Contributory Pension Scheme (NPS) and restore Old Pension Scheme (OPS), refusal to grant civil servant status and all benefits of regular employees to Gramin Dak Sevaks, increasing attack on the trade union rights are all part of this extreme neo-liberal policies pursued by the Government.  Freezing of Dearness Allowance and impounding of arrears till 30-06-2021 in the name of Covid-19 crisis is another blow to the Central Government employees.  Stringent measures to implement the provisions of FR 56(j),(l) and Pension Rules 48 is a calculated move by Government to terrorise the employees. 

10.    Central Government employees in general and Postal employees in particular are facing very very serious challenges and crisis, never faced in the past, due to the ruthless policies being implemented by Modi Government.  Their job security, wage structure, social security and trade union rights are under severe attack.  How to overcome this situation?  How to protect the hard-won benefits of the employees which are the fruits of the struggle and sacrifice made by thousands of workers and leaders in the past 150 years?  The answer is that the Central Government employees, especially Postal Employees, who have a history of heroic struggles and sacrifice, should be ready for uncompromising struggle and for more sacrifices than the sacrifices of our earlier leaders and  workers at grass root level.  Benefits, wages and service conditions which are the products of hard-won battles of the past, can be protected through still bigger and more militant struggles only.  This is what history teaches us.  There is no short-cut.  There is no substitute for the struggle for existence.  There is only two options left - either fight or perish.  Let us not surrender.  Let us stand up and fight.  Let us make the 2020 November 26th one day National Strike a resounding success.

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