The
Hon’ble Minister of Finance, Govt. of India,
North Block, New Delhi
Dear
Sir,
We
thank you for inviting the central trade unions representing the working people
in the country in both organized and unorganized sector for this pre-budget
consultation.
In
the previous pre-budget consultation meeting with you held on 6th June 2014, we
urged upon you to please consider a directional change in the economic policy
regime from that pursued during the previous government which, you have also
admitted, had landed the country’s economy in a bad situation. In fact, we had
articulated our views and proposals on that premise. But we like to submit
candidly that our proposals did not receive a positive response and the
economic policies followed the same trajectory and made situation worse for the
mass of the people during the intervening period.
Sir,
the Mid Term Economic Analysis (2014-15) by Govt of India itself admitted that
for the period under review despite increase in GDP growth rate, and a much
bigger increase in profit of the corporate sector and big business lobby, the
wages for the working people who actually create the GDP in both rural and
urban areas plunged on the average. Overall standard of living of people
deteriorated and unemployment situation in the country has not improved in the
least. Much more jobs were lost owing to closure/lockout, retrenchment than
created during the intervening period. And in the midst of such situation, the
Govt has already decided to cut already budgeted expenditure in the social
sector such as MNREGA, Health, Education etc which we strongly deplore. Such a
phenomenon warranted serious reconsideration on directional change in the
economic policy regime and we again urge you for the same.
We
express our serious concern and dismay over the manner the Govt have been
pushing various major economic policy related decisions through promulgation of
Ordinances. At least eight Ordinances were promulgated during last eight months
of the new Govt. We record our determined opposition to such practice of
Ordinance route of governance. In particular we also oppose the Ordinance on
coal sector, insurance sector and on Land Acquisition Act and want you to
please take note of the rousing opposition and struggles by the workers and the
farmers against such disastrous exercises. We demand all such Ordinances should
be withdrawn forthwith.
We
wish that our candid observations, considered views and concrete proposals are
taken in the right spirit and responded with all seriousness and given
appropriate reflections in the ensuing budget 2014-15.
Our
proposals:
Some
of these specific proposals have time and again been placed by us in various
policy making fora including the earlier pre-budget consultations. However, we
would like to reiterate them, urging your positive response:
Take
effective measures to arrest the spiraling price rise and to contain inflation;
Ban speculative forward trading in commodities; Universalise and strengthen the
Public Distribution System; Ensure proper check on hoarding; Rationalise, with
a view to reduce the burden on people, the tax/duty/cess on petroleum products.
There
must be massive investment in the infrastructure in order to stimulate the
economy for job creation. The Mid Term Economic Analysis(2014-15) published by
Govt of India has clearly mentioned about the failure of the PPP experiments in
infrastructure development and opined for public investment. It is our
considered view that the Public sector should take the leading role in this
regard. The plan & non-plan expenditure should be increased in the budget
to stimulate jobs creation and guarantee consistent income to people.
Minimum
wage linked to Consumer Price Index must be guaranteed to all workers, taking
into consideration the recommendations of the 15th Indian Labour Conference as
enriched by Apex Court of the country as reiterated in 44th ILC in 2012. In any
case, it should not be less than Rs.15,000/- p.m.
FDI
should not be allowed in crucial sectors like defence production,
telecommunications, Railways, financial sector, retail trade, education, health
and media.
The
public sector units played a crucial role during the year of severe contraction
of private capital investment immediately following the outbreak of global
financial crisis. PSUs should be strengthened and expanded. Disinvestment of
shares of profit making public sector units should be stopped forthwith.
Budgetary support should be given for revival of potentially viable Sick CPSUs
In
view of huge joblosses and mounting unemployment problem, the ban on
recruitment in Govt. deptts, PSUs and autonomous institutions (including recent
Finance Ministry’s instruction to abolish those posts not filled for one year)
should be lifted as recommended by 43rdSession of Indian Labour Conference.
Condition of surrender of posts in govt. departments and PSUs should be
scrapped and new posts be created keeping in view the new work and increased
workload.
Proper
allocation of funds be made for interim relief of 20% and 100% DA merge with
basic pay and allowances including neutralization percentage be paid on merged
DA in view of 7th CPC to all Govt. employees. Similarly, 100% DA of PSU
employees be also merged with basic pay.
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 restored.
The
massive workforce engaged in ICDS, Mid-day meal scheme, Vidya volunteers, Guest
Teachers, Siksha Mitra, the workers engaged in the Accredited Social Health
Activities (ASHA) and other schemes be regularized. No to privatization of
centrally funded schemes. Universalisation of ICDS be done as per Supreme Court
directions by making adequate budgetary allocations.
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 in line with the
recommendations of Parliamentary Standing Committee on Labour and also the 43rd
Session of Indian Labour Conference.
Remunerative
Prices should be ensured for the agricultural produce and Govt. investment
public investment in agriculture sector must be substantially augmented as a
proportion of GDP and total budgetary expenditure. It should also be ensured
that benefits of the increase reach the small, marginal and medium cultivators
only;
Budgetary
provision should be made for providing essential services including housing,
public transport, sanitation, water, schools, crèche health care etc. to
workers in the new emerging industrial areas. Working women’s hostels should be
set up where there is a concentration of women workers.
Requisite
budgetary support for addressing crisis in traditional sectors like Jute,
Textiles, Plantation, Handloom, Carpet and Coir etc.
Budgetary
provision for elementary education should be increased, particularly in the
context of the implementation of the ‘Right to Education’ as this is the most
effective tool to combat child labour.
The
system of computation of Consumer Price Index should be reviewed as the present
index is causing heavy financial loss to the workers.
Income
Tax exemption ceiling for the salaried persons should be raised to Rs.5 lakh
per annum and fringe benefits like housing, medical and educational facilities
and running allowances, Railways Running Staff and a staff in other deptts
should be exempted from the income tax net in totality.
Threshold
limit of 20 employees in EPF Scheme be brought down to 10 as recommended by
CBT-EPF. Pension benefits under EPS unilaterally withdrawn by the Govt. should
be restored. Govt. and Employers contribution be increased to allow
sustainability of Employees Pension Scheme and for provision of minimum pension
of Rs.3000/- p.m.
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;
Demand
for Dearness Allowance merger by Central Govt. and PSUs employees be accepted
and adequate allocation of fund for this be made in the budget;
All
interests and social security of the domestic workers to be statutorily
protected on the lines of the ILO Convention on domestic workers.
The
Cess Management of the construction workers is the responsibility of the
Finance Ministry under the Act and the several irregularities found in
collection of cess be rectified as well as their proper utilization must be
ensured.
In regard to resource mobilization, we would like to emphasize the following:
A
progressive taxation system should be put in place to ensure taxing the rich
and the affluent sections who have the capacity to pay at a higher degree. The
corporate service sector, traders, wholesale business, private hospitals and
institutions etc. should be brought under broader and higher tax net. Increase
taxes on luxury goods and reduce indirect taxes on essential commodities as at
present the overwhelming majority of the populations are subjected to Indirect
taxes that constitute 86% of the revenue.
Concrete
steps must be taken to recover huge accumulated unpaid tax arrears which has already
crossed more than Rs.5 lakh crore on direct and corporate tax account alone,
and has been increasing at a geometric proportion. Such huge tax-evasion over
and above the liberal tax concessions already given in the last two budgets
should not be allowed to continue.
The
SIT constituted for unearthing black money must deliver visible result which is
yet to be seen. Effective measures should be taken to unearth huge accumulation
of black money in the economy including the huge unaccounted money in tax heavens
abroad and within the country. Finance Minister should make provisions to bring
back the illicit flows from India which are at present more than twice the
current external debt of US $ 230 billion. This money should be directed
towards providing social security.
Concrete
measures be expedited for recovering the NPAs of the banking system which is on
the increasing trend again from the willfully defaulting corporate and business
houses. By making provision in Banking Regulations Act, CMDs and Executives to
be made accountable for creation of NPAs.
Tax
on Long term capital gains to be introduced; so also higher taxes on the
security transactions to be levied.
The
rate of wealth tax, corporate tax, gift tax etc. to be expanded and enhanced.
ITES,
outsourcing sector, Educational Institutions and Health Services etc. run on
commercial basis should be brought under Service Tax net. Govt.
Small
saving instruments under postal and other agencies be encouraged by
incentivizing commission agents of these scheme
OUR
SERIOUS CONCERN:
We
would like to express our strong resentment that the previous Govt. failed to
positively respond to the collective voice of the Central Trade Unions on the
very important issues concerning the working people of India, both organized
and unorganized, consistently repeated in the form of a ‘10 point charter’
backed by several collective nationwide programmes. We expect that this Govt.
will take initiative to discuss these issues with the Central Trade Unions in
order to find a solution.
We
also express our opposition to the so called Banking Reforms encouraging
private sector/capitalists banking at the cost of public sector banks which
saved the economy to an extent during the last global financial meltdown. We
also oppose increase in limit of FDI and disinvestment of equity in insurance
sector and FDI in pension. We strongly oppose the FDI in Defence and Retail
Sector. Several such measures against the working men and women in this country
including anti workers proposals contained in the New Manufacturing Policy have
our strong opposition, as in our experience these kinds of measures have helped
the growth of only a small section of the capitalists while the larger sections
of the working population continue to be marginalized and impoverished.
We
also oppose the hectic measures of changing labour laws in the name of labour
reform both by the central and the state governments which are basically aimed
at legitimizing ongoing widespread violations by the employers’ class and also
throw out overwhelming majority of the workforce of the purview of the labour
laws themselves at the total mercy of the employers.
POST
BUDGET MEETING WITH TRADE UNIONS
Successive
Finance Ministers have agreed to hold post budget meetings / consultations with
the central trade unions. However, it has not been materialized except for one
occasion. We understand such meetings did take place with the Corporate
Associations/Employers Federations. We would like to importunate upon you to
arrange such post budget meeting with trade unions also.
With
regards,
Yours sincerely,
Brijesh
Upadhyay
BMS
|
S
Q Jama
INTUC
|
Harbhajan
Singh Sidhu
HMS
|
D
L Sachdeva
AITUC
|
Tapan
Sen
CITU
|
R
K Sharma
AITUC
|
S
P Tewari
TUCC
|
Monali
SEWA
|
Santosh
Roy
AICCTU
|
Ashok
Ghosh
UCTU
|
Shanmugam
LPF
|
January 29, 2015
Kalaivaraikalai
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