WHAT CONSTITUTES REASONABLE, JUSTIFIABLE HIKE IN BASIC PAY IN THE 10 BIPARTITE? By S.

Srinivasan President NUBE Let us compare the chart of the price of 14 commodities, which go into the computation of minimum wage. Placed here under is the computation of the Minimum wage on the basis of the prices of the requisite articles as in January, 2012. It could be seen that while the prices on an average registered an increase of 152% the DA compensation had only been 76.50% ( that too if we take the quarter July 2010-Sept2012, it was 63% in February 2012 ). This fact may kindly be used to bring home the necessity of revision of wages and arriving at minimum basic wage immediately. Sl. No Item Rate Anushakthi nagar Chembur open Average co-op stores market ( Mumbai ) (Mumbai) GROCERY ITEMS 24.00 32.00 28.00 21.00 25.00 23.00 66.00 80.00 73.00 64.00 76.00 70.00 58.00 78.00 68.00 34.00 36.00 35.00 45.00 47.00 46.00 DETERGENT 16.00 16.00 16.00 187.00 187.00 187.00 13.00 13.00 13.00 OIL 125.00 127.00 126.00 109.00 125.00 117.00 145.00 145.00 145.00 NON VEG ITEMS 320.00 320.00 320.00 300.00 320.00 310.00 48.00 48.00 48.00 DIARY PRODUCTS 32.00 36.00 34.00 42.00 48.00 45.00 VEGETABLES

01 02 03 04 05 06 07

Rice Old Masuri Wheat Tur Dal Moong Dal Udid Dal Sugar Jaggary

01 Bath Soap 125 gm 02 Surf 03 Detergent Cake 125 gm 01 KPL Coconut Oil 1ltr 02 Dhara Sunflower Oil 1Ltr 03 Saffola Gold 1Ltr 01 Mutton 02 Fish 03 Egg per dozen 01 Milk Cow 02 Milk Buffalo

01 02 03 04 05 06 07 08 09 10 11 12 01 02 03 04 05 06 07

Onion Potato Tomato Cabbage Flower Karela Baingan French Beans Gajjar Ladies Finger Bhendi Beet Root Green Leaves FRUITS Anar Apple Pappaya Pears Moosambi Chickoo Bannana per dozen

14.00 24.00 30.00 40.00 50.00 40.00 40.00 100.00 40.00 40.00 40.00 50.00 140.00 150.00 30.00 140.00 50.00 40.00 40.00

14.00 26.00 32.00 40.00 50.00 40.00 40.00 100.00 40.00 42.00 40.00 56.00 140.00 150.00 36.00 140.00 50.00 40.00 40.00

14.00 25.00 31.00 40.00 50.00 40.00 40.00 100.00 40.00 41.00 40.00 53.00 140.00 150.00 33.00 140.00 50.00 40.00 40.00

Comparative Chart:

Sl.No. Name: 1 2 3 4 5 6 7 8 9 10 11 12 13 Rice/Wheat(average) Dhall (average of 4 items) Raw vegetable(average of 8 items) Green leaf vegetable Other vegetable (average of 3 items) Fruits(average of 7 items) Milk (average of two varieties) Sugar & Jaggery average Edible oil (average) Fish Meat Egg Detergents(quantity computed as per monthly requirements. Average of 3 items. Bathing soap, washing soap and detergent powder) Clothing. Monthly requirement 60 meters without anciliary charges)

Rate> 1.1.06 18.00 40.00 10.00 10.00 10.00 30.00 24.00 24.00 50.00 120.00 120.00 2.00 200.00

Rate > 1.1.12 25.50 70.33 48.90 53.00 23.33 86.10 39.50 40.50 129.33 310.00 320.00 4.00 332.00

Difference 7.50 30.33 38.90 43.00 13.33 56.10 15.50 16.50 79.33 190.00 200.00 2.00 132.00

% increase 41.7 75.8 389.0 430.0 133.3 187.0 64.6 68.8 158.7 158,0 167.0. 100.0 66.0

14

80.00

150.00

70.00

88.0

2127.9/14=152%@ @As against the increase of 152%, the bank employees were granted DA @63% as on February 2012(9th Bipartite Dearness Allowance - 19 Slabs more from February-2012 D.A. Rates @ 0.15% per slab for 420 Slabs over 2836 points for all cadre/stages is 63.00%)

Minimum Wage based on* 15th ILC Norms As per the prevailing rates of commodities as on 01.06.2012 Item Rice/Wheat Dal Toor/Urad/Moong Raw Veg Green Leaf Veg Other Veg Onion, potato, tomato Fruits Milk Sugar/Jaggery Edible Oil Fish Meat Egg Detergents etc Bath & washing soap, washing powder, etc Clothing $ Total Misc. @ 20% * Total Addl. Exp @ 25% ** Total Housing Grand Total PCU = Per Day Consumption Unit 3 CU = Three Consumption Unit Per Day Per month Price per Kg Total cost per PCU ( in Grams) 3 CU ( in Kg) As on 01.06.2012 month 475 42.75 25.50 1090.12 80 7.2 70.33 506.38 100 125 75 9.00 11.25 6.75 48.90 53.00 23.33 440.10 596.25 157.48

120 200 ml 56 40

10.8 18 Lt 5.00 3.6 2.5 5.00 90 Nos

86.10 39.50 40.50 129.33 310.00 320.00 4.00 332.00 per month

929.48 711.00 202.50 465.59 775.00 1600.00 360.00 332.00

5 mtrs per month. Deduced from 60 mtrs per annum

Rs. 200 per meter

1000.00

9165.90 1833.18 10999.08 2749.77 13748.85 1527.65 15276.50

= 20% miscellaneous charges towards fuels, electricity, water, etc

** = Additional Expenses @ 25% includes expenditure towards education, medical, treatment, recreation, festivals, etc.as per Supreme Court decision. $ Clothing as prescribed is 70 yards per year. This will work out to 5 mtrs per month and the cost include the ancillary charges like stitching etc. Hence the minimum wage to be demanded for 10 bipartite settlement should be Rs15276.50. that is basic pay applicable to sub staff employees. Taking the relativity formulae of 8 th bipartite at the initial stage between clerk and sub staff which is 100:92 the minimum basic pay for clerical staff works out to Rs.. 16604/-. Taking the ratio between starting pay of officer employees to clerical employees of banks at 14500/8000(Graduate clerk). A bank officers minimum starting salary should be Rs30100 This in our opinion is a justifiable and reasonable demand NOTES ; *Resolution1.7.1, 1.7.2 adapted in 15th Session of the Indian Labour Conference held at New Delhi in July 1957 *1.7.2 At the 15th Session of the Indian Labour Conference held at New Delhi in July 1957, an important resolution was passed, which laid down that the minimum wage should be need-based and should ensure the minimum human needs of the industrial worker. The following norms were accepted as a guide for all wage- fixing authorities including Minimum Wage Committees, Wage Boards, Adjudicators, etc.: (i) In calculating the minimum wage, the standard working class family should be taken to comprise three consumption units for one earner, the earnings of women, children and adolescents being disregarded. (ii) Minimum food requirements should be calculated on the basis of a net in take of 2700 calories, as recommended by Dr. Akroyd for an average Indian adult of moderate activity. (iii) Clothing requirements should be estimated on the basis of a per capita consumption of 18 yards per annum, which would give for the average workers family of four a total of 72 yards. (iv) In respect of housing, the norm should be the minimum rent charged by Government in any area for houses provided under the Subsidised Industrial Housing Scheme for low income groups ; and (v) Fuel, lighting and other miscellaneous items of expenditure should constitute 20 per cent of the total minimum wage. The Resolution further laid down that wherever the minimum wage fixed

was below the norms recommended above, it would be incumbent on the authorities concerned to justify the circumstances which prevented them from adherence to the aforesaid norms. The Resolution, thus, tried to give a concreteness to the whole concept of minimum wage. **In 1991, the Supreme Court in its judgment expressed the view that childrens education, medical requirement, minimum recreation, including festivals ceremonies, provision for old age and marriage should further constitute 25 per cent and be used as a guide for fixing the minimum wage.