The government, which has been facing a serious problem of mounting attrition levels in central public sector enterprises (CPSEs), has allowed CPSEs to reduce the lower limit of wage revision periodicity for unionised workers to five years from the existing 10 years. However, the management of any CPSE would require the concerned minister’s nod to implement such a move. In the guidelines notified by the Department of Public Enterprises, the new norms — which would serve as as a major tool for CPSE unions in negotiating pay revisions under long term-contracts — would be applicable with effect from January 1, 2007.

With the government’s latest decision, CPSE executives and non-unionised supervisors, who come under the purview of the Pay Revision Committee, too are expecting a similar recommendations. The panel, headed by Justice M J Rao, is expected to give its recommendations by the end of next month.

Prior to 1997, CPSE pay revisions used to be carried out after every five years for executive and non-unionised supervisors. Unionised workers, too, were allowed to negotiate pay revisions under long-term contracts. But from 1997, the government fixed the pay revision period to 10 years. Now, considering the demand of unionised workers and the “brain drain” at executive levels, the government has reversed the 1997 decision. The move is expected to give relief to 16.14 lakh employees in 244 CPSEs. Casual workers and contract labourers may benefit from the decision.

Speaking to The Indian Express, Standing Conference on Public Enterprises (SCOPE) chairman Sarthak Behuria said, “The financial implication of the government’s guideline regarding pay revision periodicity cannot be ascertained now as this would be applicable only to unionised workers. Moreover, the period for pay revision would be decided on a case to case basis. Every CPSE is not profit-making.”

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