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SEFI, BSOA up in arms against freezing dearness allowance of executives

Bokaro:  Around 2000 officers working in Bokaro Steel Plant (BSL) are sad that their dearness allowance (DA) has been freezed by the government in the view of the crisis arising out of Covid-19. It is applicable to the executives of all Central Public Sector Units (CPSU’s) in the country. However executive bodies have started raising voice against the freezing of DA as they find it very demotivating.

The order issued by the Ministry of Heavy Industries and Public Enterprises clearly mentioned that no arrears for the period  from October, 2020 till June, 30, 2021 will also be paid to the officers. Steel Executives Federation of India (SEFI) on Saturday requested withdrawal of order related to freezing of DA from the ministry.

File Photo- BSOA members in meeting.

Bokaro Steel Officers Association (BSOA), an affiliate of SEFI, also stated that there is huge resentment over freezing of DA among executives. BSOA president, A K Singh said that the non-payment of DA to the PSUs officers cannot be appreciated. The doctors and engineers along with other officers in BSL and SAIL have worked like corona warriors. They have kept the pace of production and maintain the profitability of the company to a great extent.

“But instead of rewarding the officers, they are being punished with freezing of their DA. It is really very sad,” said Singh. The pay revision of SAIL and RINL are still pending and officers are getting less salary as compared to the counterparts of other Maharatna companies. The decision to freeze DA is causing great dis-satisfaction among the employees, he added.

Meanwhile SEFI stated that the order has severely affected the morale of the executive’s employees of SAIL. Fighting against all odds of the prevailing pandemic, employees at SAIL have shown exemplary courage to meet the targets of the Company in spite of long pending issues of pay revision and associated benefits.

SEFI felt that any move to implement the scheme will lead to a devastating setback for the future of SAIL. Executives in SAIL are the backbone of the organization who are working day in day out to meet production targets, which is evident from the profit the company is making, said Bimal Kumar Bisi, general secretary, SEFI.

He added that although there was a slack in profit due to the corona pandemic in the 1st quarter of FY 20-21, the dedication of executives has again turned the company back to profit. While SAIL has paid the central government dividend to the tune of Rs.4000 crores over the years the last pay revision SAIL executives had was 13 years back in 2007.

Bisi also pointed that the salary, perks and allowances of CPSEs are not being paid from the central exchequer, and is paid by the CPSEs from their own income. Hence, there is no justification for such a DA freeze in the Industrial sector and such a move by Centre may be treated as illegal. While many CPSEs are yet to implement the 3rd pay revision, due to inability to satisfy the affordability clause in 3rd pay revision guidelines, the DA increase is the only respite employees are getting to make ends meet.

Orders mentioned :

Freezing of DA to employees of CPSEs drawing pay as per 2017, 2007, 1997, 1992 and 1987 IDA pay revision guidelines at the current rates till 30th June, 2021-reg. The undersigned is directed to say that view of the crisis arising out of COVID – 19, it has been decided that additional installments of DA payable to Employees of CPSEs drawing pay as per 2017, 2007, 1997, 1992 & 1987 IDA pay  revision guidelines, due from 01.10.2020 shall not be paid.

The additional installments of DA due from 01.01.2021 and 01.04.2021, shall also not be paid.  However, DA at current rates (w.e.f. 01.07.2020) will continue to be paid.  As and when the decision to release the future installment of DA due from 01.07.2021 is taken by the Government, the rates of DA as effective from 01.10.2020, 01.01.2021 and 01.04.2021 will be restored prospectively and will  be subsumed in the cumulative revised rate effective from 01.07.2021.  No arrears for the period from 01.10.2020 till 30.06.2021 shall be paid.

The above guidelines shall be applicable in case of executives and non-unionized supervisors of CPSEs drawing 2017 2007, 1997 1992 & 1987 IDA pay scales.  The DA rates in case of CPSE employees drawing CDA pay scales has already been frozen vide DPE’s OM no.  W – 02/0038/2017 – DPE (WC) GL – IX / 20 dated 28.04.2020 in line with the Department of Expenditure’s OM No.  1/1/2020 – EJI (B) dated 23.04.2020 in this regard.  All administrative ministries / Departments of Government of India are requested to bring the foregoing to the notice of the CPSEs under their administrative control for necessary action at their end.

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