Cabinet Nod For New Wage Policy, 15th Finance Commission
New framework to allow CPSEs to negotiate wages with workers directly.
The Union Cabinet today cleared a slew of proposals including a new wage policy framework for employees of central public sector enterprise and setting up of the 15th Finance Commission.
The new policy framework will allow CPSEs to directly negotiate wage revisions with their workers, said Finance Minister Arun Jaitley told reporters following the Cabinet meeting today.
The government will not provide any budgetary support for the wage revisions and the CPSEs would have to bear the entire financial impact, wire agency PTI said in a report quoting unnamed sources. The management of CPSEs would also have to ensure that the negotiated scales of pay do not exceed the existing scales of executives and non-unionised supervisors of the respective companies, the report added.
15th Finance Commission Set In Motion
The Cabinet also cleared establishment of the 15th Finance Commission which was proposed in the Union Budget earlier this year. The Modi administration had allocated Rs 10 crore towards the finance commission in the 2017-18 Union Budget. The commission is tasked with deciding how revenue proceeds are shared between states and the Centre, Jaitley said. Its recommendations will be in place for five years, he added. The members of the panel will be decided later.
Judges To Get Salary Hike
Judges of the Supreme Court and the 24 high courts will get a salary hike as Cabinet approved a proposal in this regard. Law Minister Ravi Shankar Prasad said at the press briefing that a bill would be introduced in Parliament to effect the pay hike. The benefit of the hike will be given from Jan. 1, 2016, he added.
The then Chief Justice of India TS Thakur had written to the government in 2016 seeking a hike in salaries of Supreme Court and high court judges.
Other Decisions
- India will become a member of the European Bank of Reconstruction and Development. India will initially buy 100 shares of the multilateral institution and the finance minister will later take a call on increasing holding, Jaitley said.
- The Cabinet extended financial support to the Indian Institute of Corporate Affairs. The institution was expected to turn financially autonomous this year, however, a deficit in its earnings remains, Jaitley said. The IICA will now get Rs 18 crore till 2019-2020, he added.
- The Union Cabinet also recommended changes to the Insolvency and Bankruptcy Code which will be done through an ordinance. Jaitley refrained from giving any further details since the proposals are yet to be approved.
