Pre Budget Consultation – Trade unions view point on issues to be considered for framing budget for the year 2018-19
The Finance Minister held Pre Budget 2018 discussion with the representatives of central trade unions on 5th December
2018. Representatives of all the central trade unions attended the
meeting. CITU was represented by its president Hemalata.
The meeting, as every year,
appeared to be not more than a ritual. The ‘consultative meeting’ with
the 12 trade unions that were called, lasted for around 1 hour. The
trade union representatives were requested to give their opinions in 3-4
minutes. The trade unions were asked to express their concerns and
suggestions related to the union budget within this time frame.
Ten central trade unions
jointly presented their views in a note to the Finance Minister. In her
intervention Hemalata reiterated that pre budget consultation with trade
unions should not be treated as a mere ritual; the views of the trade
unions representing the workers who produce the wealth should be given
due place in the budget proposals.
She also demanded that the Group of
Ministers constituted under the chairmanship of the Finance Minister in
2015 to discuss the demands raised by the trade unions should continue
discussions with them and resolve their demands. Instead of focussing on
improving ‘ease of doing business’ to benefit the corporates, the
government should focus on improving India’s position in ‘Global hunger
index’ and closing down the ‘gender gap’ This should be done by
increasing allocations for social sector including health and education,
to the ICDS, National Health Mission, Midday Meal Programme etc that
serve the poor, particularly women and children. ILC recommendations on
recognising ‘scheme workers’ as ‘workers’, paying minimum wages to them
etc should be implemented.
She also emphasised the point
that the government should increase spending on social sectors like
education and health and mobilise resources for this by taxing the rich
who can pay. It should focus on employment generation increasing public
expenditure on infrastructure. All vacant posts in various government
departments including railways etc should be filled up by fresh
recruitment. MGNREGA should be implemented in all rural areas and
extended to urban areas.
INTUC AITUC HMS CITU AIUTUC
TUCC SEWA AICCTU UTUC LPF
Dated 05.12.2017
The Hon’ble Minister of Finance
Government of India
North Block,
New Delhi, 110 001
Sub: Trade unions view point on issues to be considered for framing budget for the year 2018-19
Sir,
To start with, we urge you to
take the views presented jointly by the trade unions and incorporate
them in the budget proposals so that this meeting would be meaningful.
We request you not to convert this meeting into a mere a ritual.
Please recall that the Group
of Ministers headed by you had an inconclusive discussion with the trade
unions on the 12 point charter of demands of the working people of the
country, in August 2015. The GoM did not resume the discussions despite
requests from the central trade unions. The discussion the Labour
Minister held with the central trade unions on 7th November 2017 did not yield any results.
Hence, we feel compelled to reiterate our demands again and present our views as follows:
- Increase budgetary allocations for social sector: The
government should increase allocations on social sector and basic
essential services like health, education, food security etc in the
Union Budget. The necessary financial resources should be raised
internally by taxing the rich who have the capacity to pay.
- Effective measures against deliberate tax and loan repayment defaults: Effective
and firm measures should be taken against deliberate tax default by the
big business and corporate lobby to curtail the huge accumulation of
unpaid taxes, which have been continuously increasing. Further, wilful
default should be made a criminal offence, the list of wilful defaulters
should be made public and stringent measures such as fast track Debt
Recovery Tribunals should be implemented.
- Minimum wage: Minimum wage fixed on the basis of the recommendations of the 15th Indian
Labour Conference and the Supreme Court judgment in Raptakos &
Brett case and linked to Consumer Price Index, should be guaranteed to
all workers. The 7th Pay Commission has worked this to be Rs
18000 per month, which the government has accepted. Hence, the minimum
wage should not be less than Rs 18000 per month, which has been the
common demand of all the central trade unions. Need based minimum wage
should be considered as an essential part of social security.
- Resolve demands of the Government employees regarding 7th Pay Commission: All the pending demands of the Government employees in centre and states in regard to 7th pay
commission be resolved within time frame including arrears of
allowances with effect from 01.01.2016. The autonomous bodies be
included into for all the benefits of the 7th pay commission.
- Price rise: The
prices of essential commodities, particularly of food items have been
spiralling making it impossible for the workers and other toiling people
to meet their basic daily needs. Speculative forward trading and
hoarding are major factors contributing to the price rise. The
government should ban speculative forward trading in essential
commodities, take strong measures to curtail hoarding and strengthen
Public Distribution System, making it universal. Stop the system of cash
transfer to beneficiaries’ accounts in lieu of PDS
- Stop disinvestment and strategic sale of public sector units: The
public sector has to be strengthened and expanded. Budgetary support
should be provided for the revival of potentially viable sick public
sector units. Strategic sale of the profit making PSUs, which is being
resorted to at present should be stopped. The amendments to the Motor
Vehicle Act, which pave the way for privatisation of the state – owned
public transport system should be withdrawn.
- Employment generation: Employment
generation has nosedived in the recent period. Massive public
investment in infrastructure, social sectors and agriculture would
generate employment. The union budget should give priority and allocate
the necessary funds for this. All vacant sanctioned posts in the
different government departments, PSUs and autonomous institutions
should be filled up through fresh recruitment. The ban on creation of
new posts should be lifted. The practice of surrendering/ abolition of
posts should be done away with.
- Prevent dumping: The
increasing import of industrial commodities including capital goods
should be contained and regulated to prevent dumping. Protect and
promote domestic industries. This will also help in preventing job
losses
- Extend MGNREGA: Expenditure
on MGNREGA should be increased to cover all rural areas. Ensure
immediate payment of wages to workers employed under MGNREGA. It should
be amended to include the urban areas as well. The unanimous
recommendation of 43rd ILC to extend the scheme to urban
areas, guarantee employment for a minimum of 200 days with statutory
minimum wage, should be implemented.
- Contract and casual workers: No
contract/casual workers should be deployed on jobs of perennial nature.
The contract and casual workers doing the same and similar work as the
permanent workers should be paid the same wages and benefits as paid to
regular workers as directed by Hon’ble Supreme Court of India in 2016.
- FDI: The
CTUs have been repeatedly demanding that FDI should not be allowed in
crucial sectors like defence production, railways, financial sector,
retail trade etc. But the government has persisted with this policy.
Corporates with large NPAs are allowed to invest in sensitive sectors
like defence. We reiterate the demands that FDI should not be allowed in
the crucial sectors.
- Defence: Privatisation
of the defence sector should be stopped. The order outsourcing of the
143 items of the total 273 produced by the public sector ordinance
factories should be withdrawn.
- Scheme workers: Regularise
the workforce employed in the various schemes of government of India
including the ICDS, NHM, Midday Meal Programme, National Child Labour
Project, Sarva Siksha Abhiyan etc. Till this is done, at least
immediately implement the recommendation of the 45th ILC that
these scheme workers should be recognised as ‘workers’, they should be
paid minimum wages and provided social security benefits including
pension. Increase budgetary allocations to these schemes and stop
privatisation of these schemes in any form.
- Domestic workers: The government should ratify the ILO Convention 189 and enact a central law and create support system for domestic workers.
- Unorganised workers: Create
a National Fund for Unorganised Workers to provide social security for
all unorganised workers including contract, casual, migrant workers etc.
Direct all state governments to frame rules under the Street Vendors
(Protection of Livelihood and Regulation of Street Vending) Act and
allocate funds for developing street vending as livelihood model.
Management of cess under the Building and Other Construction Workers’
Welfare Board, Beedi Workers Welfare Board etc. should be made the
responsibility of Ministry of Finance, which should ensure its proper
collection, stoppage of evasion and utilisation.
- Labour law reforms: Stop
labour law amendments that curtail the basic and trade union rights of
workers and provide unhindered ‘hire and fire’ facilities to the
employers. The Code on Wages Bill, at present before the Standing
Committee on Labour and on the draft Code on Industrial Relations Bill
should be finalised on the basis of the opinions of the central trade
unions expressed unanimously. No labour law amendment should be
undertaken without the consent of the trade unions and workers who are
the main stakeholders and the most affected.
- EPF: The
threshold limit for EPF scheme should be brought down to 10. Government
and employers’ contribution should be increased to provide a minimum
pension of Rs 3000 per month and make it sustainable. Stop investing EPF
funds in share market. The Supreme Court has given a judgment and order
for higher payment of pension under EPS – 95. This option should be
made available for all workers covered under the said scheme.
- Pension for all: Pension
should be construed as deferred wage and all workers who are not
covered by any pension scheme should be ensured a pension not less than
Rs 3,000/- per month.
- New Pension scheme: NPS
should be withdrawn. All central and state government employees
recruited on or after 1.1.2004 should be covered under the Old Pension
Scheme.
- Gratuity: Gratuity
under the Payment of Gratuity Act should be raised to Rs 20 lakhs and
30 days wages instead of 15 days per completed year of service.
- ADHAR: Government should not rush making ADHAR linking compulsory
- Closed and sick factories: Ensure
that workers of closed factories get their dues within a fixed time
limit. Sudden winding up of the BIFR has left many stakeholders without a
remedy. Rules for carrying out the provisions of the Sick Industrial
Companies (Special Provisions) Repeal Act, 2003, should be framed
immediately to facilitate them.
- Income tax exemption: The
ceiling for income tax for salaried persons and pensioners should be
raised to Rs 5 lakh per year. Income Tax ceiling for senior citizens
should be raised to Rs.8 lakhs. All perks and fringe benefits like
housing, medical and educations facilities and running allowances in
railways should be exempted from income tax net totally.
- Political funding: Recently
the government removed the limit on the amount companies can donate to
political parties and the need to name the political party receiving the
funds. This is far from the transparency promised in public life. The
earlier regime should be restored.
- Railways: Adequate
financial resources should be allotted to the railways to ensure more
effective, accessible and affordable transport to the common people,
particularly the poor. The capabilities of public sector production
units should be utilised fully, further developed and strengthened. No
measure should be taken to privatise the railways. The measures to hand
over the railway stations across the country to private players should
be immediately stopped. Any property of railways should not be handed
over to private sector through lease or sale. The decision to allow
100% FDI in railways should be withdrawn. The pending expansion, track
renewal, signals up gradation projects should be completed at the
earliest. Adequate financial resources should be allocated to improve
safety systems and ensure safe rail travel for the people. All the
vacancies in the railways should be filled up. The long pending demands
of the railway employees like enhancement of ceiling in respect of
running allowance for tax exemption, housing scheme etc should be
addressed positively.
To conclude:
We reiterate our strong
opposition to the anti worker measures being undertaken by the
government on the pretext of improving the ‘ease of doing business’, to
benefit the employers, particularly the big corporates, domestic and
foreign.
We once again urge upon the
government to take concrete measures to resolve the 12 point charter of
demands of the working people, being repeatedly raised by the central
trade unions, as well as the pressing issues listed above.
We regret that none of the
suggestions of the central trade unions, made in the earlier pre budget
meetings were incorporated in the previous budgets. We hope that this
would not be repeated yet again and the points raised by us will be
given positive consideration while framing budget 2018-19.
With regards,
Yours sincerely
INTUC AITUC HMS CITU AIUTUC
TUCC SEWA AICCTU UTUC LPF
Source :
Confederation
