Trade unions demand the reversal of the economic policy trajectory
New Delhi. The representatives of the Central Trade Unions met the Union Finance Minister Arun Jaitely today and placed their point of view on the ensuing Budget 2016-17.
Through a jointly signed memorandum, all the central trade unions demanded the reversal of the economic policy trajectory.
The Representatives were Tapan Sen (CITU), Brijesh Upadhyaya, Saji Narayanan(BMS), Ashok singh (INTUC), D L Sachdeva(AITUC),Harbhajan Siddu(HMS), Rajeev Dimri(AICCTU), Shankar Saha( AIUTUC),Manali( SEWA) etc.
The memorandum is as follows-

Dated 4.1.2016
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 2016-17
Sir,
It has been an established practice over the years to convene a meeting of trade unions by the Ministry of Finance in the name of the pre-budget consultations. Unfortunately, it has been found that none of the suggestions given to the Government by the trade unions have ever been accepted. It has become a ritual to call trade unions for such meetings.
We, the Central Trade Unions instead of raising several issues, will concentrate mainly on 12 point demands of the working people submitted earlier to the government and on which your goodself being the Chairman of GoM had inconclusive discussions in August last year. Unfortunately the same have not been resumed inspite of requests made by the Central Trade Unions.
While framing the forthcoming budget, we reiterate and request that the Government instead of depending on foreign funds for growth and development of the national economy should concentrate on raising internal resources for funding the developmental schemes and welfare programmes and by taxing those who have capacity to pay instead of drastically reducing the allocations on social sector and basic services like health, education etc. The Govt must take firm measures to contain deliberate tax-default by the big business and corporate lobby leading to huge accumulation of unpaid direct tax dues.
Details of the issues which have direct bearing on the economic policies of the Govt. are as under:
1. Minimum Wage: Minimum Wage linked to Consumer Price Index must be guaranteed to all workers, taking into consideration the recommendations of the 15th Indian Labour Conference and further enriched by the Apex Court by an add on of 25%. The entire formulation was again unanimously reiterated by 43rd Indian Labour Conference. Based on the same, the 7th CPC has worked out the minimum wage of Rs.18000/- per month. Therefore, the minimum wage should not be less than Rs.18000/- per month. Needbased minimum wage is to be considered as essential part of social security.
2. Price Rise: Take effective measures to arrest the spiraling price rise especially of food and essential items of daily use. Ban speculative forward trading in essential commodities, check on hoarding and universalise and strengthen Public Distribution System.
3. Public Sector: PSU should be strengthened and expanded. Disinvestment of shares of profit making PSUs should be stopped. Budgetary support should be provided for revival of potentially viable sick PSUs.
4. Relentless and increasing flow of import of industrial commodities including capital goods must be contained and regulated to prevent dumping and also to protect and promote domestic industries and prevent loss of employment.
5. FDI: FDI should not be allowed in crucial sectors like defence production, Railways, financial sector, retail trade and other strategic sectors. In other areas, terms and conditions for FDI should be made public.
6. Employment Generation: Massive public investment be made in infrastructure structure and social sectors to generate more employment in order to arrest mounting unemployment. All vacancies of sanctioned posts in Govt departments, PSUs and autonomous institutions should be filled up through fresh recruitment. Ban on creation of new posts should be lifted; practice of surrendering / abolition of posts should be done away with.
7. The scope of MGNREGA be extended to agriculture operations and urban areas as well and employment for minimum period of 200 days with guaranteed statutory wage be provided, as unanimously recommended by 43rd Session of Indian Labour Conference. The drastic cut already inflicted on the MNREGA allocation should be made good and restored.
8. The massive workforce engaged in ICDS, Mid-day meal scheme, Vidya volunteers, Guest Teachers, Shiksha Mitra, the workers engaged in the Accredited Social Health Activities (ASHA) and other schemes be regularized. No to privatization of centrally funded schemes. Budget allocation should not be drastically cut as done in last year; it should be substantially increased. Universalisation of ICDS be done as per Supreme Court directions by making adequate budgetary allocations. The scheme workers should at least be given status of workers with attendant benefits as already recommended by the 45th Session of ILC.
9. Unorganised Workers Social Security: Steps be taken for removal of all restrictive provisions based on poverty line in respect of eligibility coverage of the schemes under the Unorganised Workers Social Security Act 2008 and allocation of adequate resources for the National Fund for Unorganised Workers to provide for Social Security to all unorganized workers including the contract/casual and migrant workers
State Govts be asked to frame rules under the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act and allocate funds for developing the Street Vending as livelihood models.
Proper management of Cess under construction workers welfare fundS be also ensured.
10. Income Tax exemption:- ceiling for the salaried persons and pensioners should be raised to Rs.5 lakh per annum and fringe benefits like housing, medical and educational facilities and running allowances in Railways should be exempted from the income tax net in totality.
11. Threshold limit of 20 employees in EPF Scheme be brought down to 10. Govt. and Employers contribution be increased to allow sustainability of Employees Pension Scheme and for provision of minimum pension of Rs.3000/- p.m. Proposal for introducing option in PF and ESI made in the last year’s Budget should be dropped.
12. New Pension Scheme be withdrawn and newly recruited employees of central and state govts on or after 1.1.2004 be covered under Old Pension Scheme.
13. Labour Law Reforms: The process of labour law reforms being pursued by the Govt. to provide for unhindered “hire and fire” and for pushing the majority of workers outside the purview and protection of most of the labour laws-all for ease of doing business be stopped. No labour law amendment be undertaken without the consent of trade unions and workers who are the main stake holders and also the most affected.
14. 7th Central Pay Commission: The Govt. must discuss the issues raised by National Joint Council of Action of Central Govt. employees and other organisations before taking any decision on the recommendations of Central 7th Pay Commission. The issues of minimum wage quantification, lowering of rates of some allowances and abolition of some others have wider ramifications and therefore require corrective measures.
15. Contract/Casual workers should not be deployed on jobs of perennial nature. Till regularization these workers should be paid the same wages and benefits as paid to regular workers doing the same work.
OUR SERIOUS CONCERN:
We oppose the hectic measures of changing labour laws by the central as well as some state govts. The Govt. besides taking steps for initiating discussion 12 point charter, should also make provision in the Budget for revival and rehabilitation of MSMEs in Tamilnadu which have been destroyed due to floods. Provision should also be made for rehabilitation of affected workers.
It is unfortunate that none of the suggestions made by us collectively in 17th January, 2015 pre-budget consultation meeting were included in 2015-16 budget. Rather drastic cut to the tune of Rs.4.40 lakh crores was made in the allocation of funds for social sector schemes. This drastic cut needs to be restored and covered up.
With regards,
Yours sincerely,
BMS INTUC AITUC HMS CITU
AIUTUC TUCC SEWA AICCTU UTUC LPF

Hastakshep