Tuesday, November 20, 2007

Payment of Bonus to C.G Employees

Letter from Sri. Umraomal Purohit, Secretary (Staff Side) J C M to Secretary DOP&T and Secretary, (Expenditure) Min. of Finance, Govt. of India
On raising the ceiling for calculation purpose from the salary or Rs.2500/- P.M to Rs.3, 500/- P.M for payment of Productivity Linked Bonus for the year 2006-07

Letter No. NC – JCM/2007/89/10-24 dated 31.10.2007
It has been learnt that on 27.10.2007 President has promulgated the Payment of Bonus (Amendment) Ordinance 2007 according to which section 12 of the Payment of Bonus Act 1965 has been amended raising the ceiling for calculation purpose from salary of Rs.2500/- p.m to Rs.3, 500/- p.m w.e.f 1.4.2006.
It is, therefore, requested that for the payment of Productivity Linked Bonus/Adhoc Bonus for the year 2006-07 to Central Govt. employees, the ceiling for calculation purpose from salary also be raised from Rs.2500 p.m to Rs.3500 p.m and the revised orders issued for payment of Bonus for 2006-07 at the revised ceiling of Rs.3500 p.m.
Incidentally it may also be indicated that when the above ceiling was raised from Rs.1600/- p.m to Rs.2500/- p.m by amending Bonus Act in the past, the necessary change was also made in case of Central Govt. employees as well and the difference was paid. It is urged that amendment/correction may kindly be made without any undue delay so that Central Govt. employees are not unduly exercised.

Amendment to Bonus Act 1965

Amendment to the payment of Bonus act, 1965
The Cabinet in its meeting held on October, 1, 2007 has approved the Amendments to the payment of Bonus Act, 1965, which are as follows:
i) Amendment to Section 2 (13): To raise the eligibility limit for payment of bonus from the salary or wage of Rs.3500/- to Rs. 10,000 per month.
ii) Amendment to Section 12: To raise the ceiling for calculation purpose from the salary of wage of Rs.2500/- to Rs.3500/- per month, and:
iii) Deletion of Section 32 (vi): To cover the employees employed through contractors on building operations.
PRESS NOTE
On 27th October 2007 the President has promulgated the Payment of Bonus (Amendment) Ordininance, 2007 containing the following amendments: -
i) Amendment to clause (13) of Section 2 of the Payment of Bonus Act, 1965 to raise the eligibility limit for payment of bonus from the salary or wage of Rs.3500/- per month to Rs.10, 000/- month.
ii) Amendment to Section 12 of the Payment of Bonus Act, 1965 to raise the ceiling for calculation purpose from the salary or wage of Rs.2500/- per month to Rs.3500/- per month;
iii) Deletion of clause (vi) of section 32 of the Payment of Bonus Act, 1965 so as to cover the employees employed through contractors on building operations.
Thus the employees, including those employed through contractors on building operations will be entitled to receive bonus as per the revised ceilings, for the year 2006-07 and onwards.
The Ordinance shall be deemed to have come into force on 1st April 2006.
Ministry of Labour & Employment, New Delhi, Kartika 07, 1929 / October 29, 2007.

Review of the Franchising Scheme

A meeting to review of the Franchising Scheme was held with the Dept. of Posts on 19.11.2007 at Dak Bhawan. Sri. D.Theagarajan, Secretary General and Sri. Bhagawan, Financial Secretary, NUPE-C represented FNPO in the meeting along with leaders from NFPE side. The meeting was presided by the DDG Planning. Both the Federations opposed the franchising scheme. The FNPO opposed the scheme on the following grounds.
(a) During the discussion in the last meeting held on 3.11.2006, it was informed that these Franchising Post Offices would be provided in the extension areas of the city/town where the Post Offices are not available. But the promise of the Department was not kept up.
(b) According to information available, franchising did not bring any traffic to the Department as on date. The Secretary General furnished the information collected by him from the 10 franchisee outlets from Tamilnadu in support of his claim. The FNPO expressed the following apprehensions:
1. There is a possibility of mingling fake stamps into original stamps, as there is no cross check to see whether correspondingly functions done by franchisees, for example sale of postal statoneries (Stamps, inland letters, cover etc.,)decrease/increase in the post office concerned.
2. MO Commission is given as Rs. 3.50 per MO booked which will lead to unnecessary splits causing loss of commission earned by the Departrment. For example if Rs. 500 is sent as MO, normal commission is Rs. 25 (5 x 5). If the same amount is sent in 10 MOs of Rs.50/- each, commission to be given to franchise Rs. 3.50 x 10 = Rs. 35/- earning Rs. 25/- and paying Rs. 35 as commission.
3. If the franchise after collection of huge money from the public, absconded, then the Department will loose not only money but also the very image of the Department will go, causing damage to the Goodwill so far earned.
4. The most important point is that franchisees definitely will try to convert our customers into their customers by way of collection lf letters at their premises etc. This will lead to unnecessary payment of commission to the franchises.
5. As on date public is approaching post office only to send II class articles and parcels and Business Mails. Other personal communications are made only through electronic media such as cell phone, e-mail etc. The post is the last resort of personal communication. Therefore, franchising of Post Offices is not an alternative to bring the courier mails to the Department. Instead we can utilize our infrastructure properly. As on date we have 1,55,000 post offices unlike any other organization in the world. We can relocate the post offices wherever necessary.
6. Above all, the details of income which come from franchising outlets is very meager, a franchisee, paying Rs. 10,000/- as deposit getting commission of maximum Rs.2000/- per month, after employing a person in the shop. Therefore, this franchise willnot continue our job sincerely in due course. The scheme will become like 'PSSK', 'LSV' 'LPA' in near future. The scheme will not anyway to improve our business as well as the need of public. Hence, my Federation totally oppose the franchising of postal outlets.
{N.B: The abov note was given to the department by the FNPO on 19.11.07}
The department furnished the details of business transacted by the Franchisees in respect of sale of stamps/stgationery, No. of RLs booked, No of Speed Post articles booked, No. of Mos booked and retail services in Rupees.