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Pay Revision of Employees of State Public Enterprises
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GOVERNMENT OF
ASSAM
DEPARTMENT OF
PUBLIC ENTERPRISES
No.PE.42/96/19.
Dated Dispur the 17th May/99
From: Shri C. K. Sharma,
IAS
Secretary to
the Govt. of Assam,
Department of
Public Enterprises
Dispur,
Guwahati-6
To: The
Chairman/Chairman cum Managing Director/Managing Director/Chief
Executive Officer/Executive Director ____
Sub: ASSAM SERVICES (ROP)
RULES 1998 AND REVISION OF PAY SCALE ETC. OF THE EMPLOYEES OF THE
STATE PUBLIC ENTERPRISES OF THE STATE OF ASSAM
Sir
I am
directed to inform you that the All Assam State Govt. undertaking
Workers union has been submitting of repeated appeals to the Hon'ble
Chief Minister for issue of instruction to release revised pay scale
to the employees of the State Level Public Sector Enterprises.
In this
connection, the guidelines issued by the Finance Deptt. vide FTC
32/95/84 dtd.15.10.98 (copy enclosed) may be referred to . The
instructions on the matter specifically state that the entire
financial burden for the purpose of making payments of the revised
pay scale and other benefits will have to be met from the resources
of the enterprise concerned and no financial support would be given
from the State Govt. to the PSUs for the purpose. As such, it is
imperative that while considering the proposal on release of revised
pay scale, the Board of Directors of the enterprises will very
carefully examine the capability of the enterprises to bear the
burden through assessment of performance of the enterprise in terms
of business turnover, profit earning, turnover per employee and the
performance plan for the following years, as this will lead to a
continuing liability. It is clear that unless the performance is
improved and surplus generated, the liability of bearing increased
financial burden can not be taken.
Only after
the Board of Directors is convinced of the capability of taking the
burden of increased liability on account of revision of pay scale,
the enterprises may move the Finance Department through the
respective administrative Departments, for necessary approval,
supported by relevant details on the proposal.
Yours
faithfully,
Sd/-C.K.Sharma
Enclo: As stated
Secretary to
the Govt. of Assam
Public Enterprises Department
Dispur,
Guwahati-6
Memo No.PE.47/96/19-A,
Dated Dispur the 17th May/99
Copy to:
The Principal
Secretary/Commissioner & Secretary/Secretary to the Govt. of
Assam ______.Department, Chandmari./ Dispur
The Financial
Commissioner / Secretary to the Govt. of Assam, Finance department,
Dispur
By order etc
Sd/-C.K.Sharma,
Secretary to
the Govt. of Assam,
Public
Enterprises Department, Dispur, Guwahati-6
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GOVERNMENT OF
ASSAM
FINANCE (PRU)
DEPARTMENT
RECORD NOTE
OF THE DISCUSSION HELD BETWEEN COMMISSIONERS OF PUBLIC ENTERPRISES
AND FINANCE DEPARTMNTS ON 26TH DECEMBER 2002 ON THE MATTER
OF REVISION OF PAY SCALES OF THE EMPLOYEES IN THE STATE LEVEL PUBLIC
ENTERPRISES
The Finance
(PRU) Department brought up that the Chief Minister, Assam desired
examination of adoption of uniform policy in respect of revision of
Pay Scale of the employees of the State Level Public enterprises
The following were
considered:
The Pay
Commission 1988 on Public Sector enterprises categorized the State
Level Public enterprises in 4 levels in consideration of nature of
activities, size of operation, number of employees and extent of
investment. While the Pay scales were recommended to be revised
post-wise in each of the public sector, for the Chief Executives,
the Commission recommended 4 different scales as per the levels of
the Enterprises for the Chief Executives. The Pay Commission of 1994
for State Public Enterprises recommended scale to scale revision and
not enterprise and post-wise. Since all the enterprises cannot be
equated, uniform pay scales even for same nomenclature of posts in
different enterprises was not considered logical
The
Finance (PRU) Department has already issued concurrence of revision
of Pay scales in following 12 enterprises/organizations, subject to
the condition that the entire financial burden for the purpose of
making payment of the revised pay scales and other benefits would
be made from own resources of the enterprises and no financial
support would be given from the State Government for this purpose,
in terms of letter No.FPC 34/95/60 dated 25.2.97 and FPC.32/95/64,
dated 15.10.98.
Assam
Tribal Development Authority
Assam
Plains Tribes Development Corporation Ltd.
Assam
State Dev. Corpn. for OBC Ltd.
Assam
Fisheries Dev. Corporation Ltd.
AMTRON
Assam
Tea Corporation Ltd.
Assam
Mineral Dev. Corporation Ltd.
Assam
Minority Dev. Board.
Assam
Financial Corporation
Ashok
Paper Mills Ltd.
Assam
State Text Book Production Corporation Ltd.
Assam
Gas Company Ltd.
Supplementing
the directions of the Finance Department, the PE Department vide
letter No.PE 42/96/19 dated 17.5.99 advised the enterprises, that
the Board of Directors of the enterprises would very carefully
examine the capability of the enterprises to bear the burden, through
assessment of performance of the Enterprises in terms of business
turn over, profit earning, turn over per employee and the performance
plan for the following years, as the pay revision would lead to
continuing liability. Only after the Board of Directors is convinced
of the capability of taking the burden of increased liability on
account of revision of pay scale, the Enterprises could move the
Finance department through the respective Administrative Departments
for necessary approval, supported by relevant details. This circular
was issued as per discussions with the Hon'ble Chief Minister in May,
1999.
As such, the
uniform policy in this regard would be to consider proposals of the
Enterprises in terms of directions of the PE and Finance Departments
for scale to scale revision as per recommendation of the Pay
Commission of 1994 and based on level and post-wise recommended
scales of the Pay Commission of 1988. Further all proposals for pay
revision should be along with the decisions of Governing Body on the
capability of the PSU of taking the burden of increased liabilities
on account of revision of pay scales without any additional
assistance for State Government. The proposals should be routed
through PE department with a complete analysis of the resources for
meeting the additional financial burden due to pay revision
Sd/- (A. K.
Thakur) Sd/-( Alok Perti)
Commissioner &
Secretary Commissioner & Secretary
Finance Deptt.
P.E.Department
Memo No. FPC 10/2000
Dated Dispur, the 4th January, 2001
Copy to:-
The
Commissioner & Secretary to the Govt.of Assam
P.E.
Department, Dispur
By order etc,
Sd/-
Under
Secretary to the Govt. of Assam.
Finance(PRU)
Department
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GOVERNMENT OF
ASSAM
FINANCE (PAY
RESEARCH UNIT) DEPARTMENT
DISPUR,
GUWAHATI - 6
No. FPC.
32/95/60 Dated Dispur the 25th February 1997
From : Shri S. C. Das IAS
Commissioner &
Secretary to the Govt. of Assam
Finance Department
To : The Commissioner &
Secretary to the Govt. of Assam
_________ Department
Dispur
Sub : Recommendation
of the Assam Pay Commission, 1994 on the revision of pay scale etc.
of the employees of State Public Enterprises of the State of Assam
Sir,
I am
directed to forward herewith a copy of the Report of the Assam Pay
Commission, 1994 for State Public Enterprises duly accepted by the
Government.
You are
requested to strictly follow the guidelines indicated below while
initiating action as per recommendation of the Pay Commission.
The
individual Public sector undertaking under the Government of Assam
may consider at the level of Board of Directors the question of
granting revised pay scales and other benefits to its employees by
taking into account that it will have to depend on its own
financial capability for the purpose of making payments of the
revised pay scales and other benefits, and that no financial
support would be given from the State Government to the Public
Sector Undertaking for that purpose
While
considering revision of pay scales for the employees of the
Public Sector Undertaking under the Government of Assam, as stated
above, the revised pay scales as accepted by the Government of
Assam on the recommendation of the Assam Pay Commission, 1994 as
applicable to the employees of the State Government should be kept
in view
Except
in case of those units, which are covered by bi-lateral agreement,
the revision of pay scales for the employees of Public Sector
Undertakings under the Government of Assam may be considered, as
stated above, provided there has been no revision of pay scales
after 1.1.89
Prior
approval of the Finance Department of the State Government should
be obtained by the Board of Management of the Public Sector
Undertakings through the concerned administrative Department of
the State Government before giving effect to any proposed revision
of pay scales, etc. in respect of its employees as stated above
The receipt of the letter
may kindly be acknowledged
Yours
faithfully
Sd/- 25.2.97
Commissioner &
Secretary to the Govt. of Assam
Finance
Department
Memo No. FPC.32/95/60-A
Dated Dispur the 25th February/1997
Copy for information and
necessary action with a copy of the Report to:
The
Secretary to the Govt. of Assam, Public Enterprises Department
Dispur
The
Managing Director/Chief Executive Officer/General Manager
_________________.
They are requested
to kindly acknowledge the receipt of the Report
By order etc.
Sd/- 25.2.97
Commissioner &
Secretary to the Govt. of Assam
Finance
Department
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GOVERNMENT OF
ASSAM
FINANCE (PAY
RESEARCH UNIT) DEPARTMENT
DISPUR,
GUWAHATI - 6
No. FPC.
32/95/64 Dated Dispur the 15th October 1998
From : Shri R. K. Bora
IAS
Secretary to the Govt.
of Assam
Finance Department
To : The Commissioner &
Secretary to the Govt. of Assam
_________ Department
Sub : Assam Services
(ROP) Rules 1998 and revision of pay scale etc. of the employees of
State Public Enterprises of the State of Assam
Ref : This office
letter No. FPC. 32/95/60 Dated 25.2.97
Sir,
With
reference to the above, I am directed to request you to follow
strictly the guidelines indicated below while initiating action for
revision of pay of the employees of the State Public Enterprises of
the State of Assam.
Individual
Public Sector Undertakings under the Government of Assam may
consider at the level of Board of Directors the question of granting
revised pay scales and other benefits to its employees by taking
into account the revised pay scales provided in the Assam Services
(ROP) Rules, 1998, subject to the condition that the entire
financial burden for the purpose of making payments of the revised
pay scales and other benefits, will be met from their own resources.
No financial support would be given from the State Government to the
Public Sector Undertaking for that purpose
While
considering revision of pay scales for the employees of the Public
Sector Undertakings under the Government of Assam, as stated above,
the revised pay scales as accepted by the Govt. of Assam and
published in the A.S.(ROP) Rules, 1998 vide notification No.
FPC.5/94/169 dated 4.7.98 and notification No. FPC.5/94/248 dated
4.7.98 as applicable to the employees of the State Government should
be kept in view.
Except
in case of those units, which are covered by bilateral agreements,
the revision of pay scales for employees of a public sector
undertaking under the Govt. of Assam may be considered, as stated
above, provided there has been no revision of pay scales after
1.1.89.
Prior
approval of the Finance Department of the State Government should be
obtained by the Board of Directors, Board of Management of the
Public Sector undertakings through the concerned administrative
department of the State Government before giving effect to any
proposed revision of pay scales, etc. in respect of its employees as
stated above.
The receipt of the letter
may kindly be acknowledged.
Yours
faithfully
Sd/-
Secretary to
the Govt. of Assam
Finance
Department
Memo No. FPC.32/95/64-A
Dated Dispur the 15th October/1998
Copy for information and
necessary action to:
The Secretary to the
Govt. of Assam, Public enterprises Department Dispur
The Managing
Director/Chief Executive Officer/General Manager _________________.
They are requested to
kindly acknowledge the receipt of the letter
By order etc.
Sd/-
Secretary to
the Govt. of Assam
Finance
Department
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GOVT.
OF ASSAM
DEPARTMENT
OF PUBLIC ENTERPRISES
HOUSEFED
COMPLEX : BLOCK IV : 1ST FLOOR
BELTOLA
ROAD : DISPUR:
GUWAHATI
781 006
No.
PE (D) 16/2003/49 Dated Dispur the 17th December 2003
From
: Sri A. K. Das
Adviser (P)
To : The
Principal Secretary to the Govt. of Assam
Industries/ Transport Department,
DISPUR
The Commissioner & Secretary to
the Govt. of Assam
Agriculture
/ Cultural Affairs / Education / Hill Areas / Home / HT & S / AH
& Veterinary / WPT & BC / Power / Urban Development /
Finance / Fisheries / Mines & Minerals / Tourism Department,
DISPUR
The
Commissioner & Special Secretary to the Govt. of Assam
PWD,
DISPUR
The Secretary to the Govt. of
Assam
Co-operation
/ Soil Conservation / Minority Welfare Development Department, DISPUR
The Secretary to the Govt. of
Assam
Irrigation Department, Chandmari,
GUWAHATI 781 003
Sub : JUDGMENT OF HON'BLE SUPREME COURT OF INDIA ON TRANSFERRED
CASE No.8 of 2000
Sir,
I am
directed to forward an extract from the copy of judgment of the
Hon'ble Supreme Court of India in Transferred case No. 8 of 2000
relating to Central Public Sector Undertaking, which may be of
interest to you, in dealing with demands for salary & revision of
pay scales of the employees of the State Level Public Enterprises
under your administrative control.
Yours faithfully
Enclo
: EXTRACT
Sd/-
A.K.Das
Adviser(P)
: Department of Public Enterprises
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EXTRACT
FROM THE JUDGMENT
On
TRANSFERRED CASE No.8 of 2000
in
the SUPREME COURT OF INDIA
The legal position is
that identity of the Government Company remains distinct from the
government. The Government Company is not identified with the Union
but has been placed under a special system of control and conferred
certain privileges by virtue of the provisions contained in Section
619 and 620 of the Companies Act. Merely because the entire share
holding is owned by the Central Government will not make the
incorporated company as Central Government. It is also equally well
settled that the employees of the Government Company are not civil
servants and so are not etitled to the protection afforded by Article
311 of the Constitution (Pyare Lal Sharma v. Managing Director AIR
1989 SC 1854). Since employees of Government Companies are not
government servants they absolutely no legal right to claim that
government should pay their salary or that the additional expenditure
incurred on account of revision of their pay scale should be met by
the government. Being employees if the companies it is the
responsibility of the companies to pay them salary and if the company
is sustaining losses continuously over a period and does not have
financial capacity to revise or enhance the pay scale, the
petitioners cannot claim any legal right to ask for a direction to
the Central Government to meet the additional expenditure which may
be incurred on account of revision of pay scales. It appears that
prior to issuance of the Office Memorandum dated 12.4.1993 the
Government had been providing the necessary funds for the management
of Public Sector Enterprises which had been incurring losses. After
the change in economic policy introduced in early nineties,
Government took a decision that the Public Sector Undertakings will
have to generate their own resources to meet the additional
expenditure incurred on account of increase in wages and that the
government will not provide any funds for the same. Such of the
Public Sector Enterprises (Government Companies) which had become
sick and had been referred to BIFR, were obviously running on huge
losses and did not have their own resources to meet the financial
liability which would have been incurred by revision of pay scales.
By the Office Memorandum dated 19.7.1995 the Government merely
reiterated its earlier stand and issued a caution that till a
decision was taken to revive the undertakings no revision in pay
scale should be allowed. We therefore did not find any infirmity
legal or constitutional in the two Office Memorandums which have been
challenged in the writ petition.
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