PRESS RELEASE dated 03.01.09 - that media never propagated fully
OSOA had taken the decision to go for Direct Action Program w.e.f. 07.01.2009 only after exhausting of channels by having discussions and agreeing to all the requests of Ministry of Petroleum and Natural Gas as well as Ministry of Heavy Industries, but they have always gone back on their promises. The chronology of events is as below:
Ø OSOA’s demand for 50% DA merger w.e.f. 1.1.2005 in line with merger for Govt. of India employees in January 2006.
Ø OSOA went on direct agitation on 29th May, 2006. Strike postponed with the intervention of ministry and verbal assurances. No outcome.
Ø OSOA’s demand for 50% DA merger w.e.f. 1.1.2005 in line with merger for Govt. of India employees in January 2006.
Ø OSOA went on direct agitation on 29th May, 2006. Strike postponed with the intervention of ministry and verbal assurances. No outcome.
Ø OSOA again went on strike on 5th September, 2006. Assurance of the Hon’ble Prime Minister was there to have a special dispensation to Oil Sector as well as 50% DA merger w.e.f 1.1.2005. Nothing done again.
Ø Pay Revision Committee headed by Justice M. J. Rao formed (30.11.06)
Ø Feed back through Questionnaire by OSOA Constituents
Ø Studies Conducted by SCOPE through M/S Mercer Consultants
Ø Studies Conducted by OIL Companies through M/S Hewitt Associates
Ø Presentation by OSOA to Justice M. J. Rao Committee(16.04.2007)
Ø Meanwhile 50% DA merger. Orders issued for PSUs w.e.f. 01.01.2007 instead of 01.01.2005 in May 2008. This would have happened automatically with the implementation of pay revision w,e.f. 01.01.2007. Hence nothing but just interim relief.
Ø Submission of recommendation by Justice M. J. Rao Committee (30.05.2008)
Ø Since then the Committee’s Recommendations, OSOA discussed in a few meetings & made appeals to MOP&NG through various communications to review the recommendations to suit the changing needs of the Oil Sector.
Ø OSOA got re-structured at its meeting on 28.08.08 in Mumbai with New Team of Office Bearers.
Ø OSOA Pay Revision Committee was formed on 28.08.08 which submitted its Report on 06.09.08
Ø Letter dated 28.08.08 from OSOA to Honourable Minister MOP&NG seeking to expedite the Pay Revision process & a hearing to put forth our grievances by 10.09.08. No response from the ministry.
Ø OSOA met honorable Minister of State for Heavy Industries & Public Enterprises Shri Raghunath Jha on 03.09.08 & appraised about grievances of Oil sector officers.
Ø OSOA on 19.09.08 again requested Honorable Minister MOP&NG for a hearing by 26.09.08
Ø OSOA met: Sri R. Bandhopadhyay, Secretary DPE on 19.09.08 submitted it’s Pay Committee Report.
Ø OSOA met Honorable Minister of State for Agriculture, Consumer Affairs, Food & Public Distribution on 24.09.08 who wrote a letter to Honorable Minister MOP&NG on that day Itself.
Ø Despite above efforts no response from MOP&NG till 29.09.08 to start dialogue.
Ø OSOA constrained to Issue Strike Notice dated 29.9.08 to start strike from 21.10.08
Ø Dialogue with Additional Secretary MOP&NG and AddI. Secretary (F&A — MOP&PNG on 15th October, 2008 — meeting cordial — discussions done but no concrete proposal from MOP&NG.
Ø 17th October 2008- Letter No. DOG-38011/3/2008 — fin.III(pt.II) dt. 17.10.2008 by Additional Secretary, MOP&NG. OSOA defers strike w.e.f. 21.10.2008 to 18.11.2008 in light of this assurance.
Ø 17th November 2008- Meeting with Hon’ble Minister of heavy Industries and Hon’ble Minister of PNG. During the meeting complete assurance by both the ministries to get the demand fulfilled in the Cabinet meeting of 20th November 2008. OSOA defers strike to 2nd December 2008.
Ø Cabinet goes by Committee of Secretaries report rather then demands as agreed with OSOA on 17th November 2008.
Ø 26th November 2008 DPE guidelines issued which was further downgraded w.r.t. to 2nd PRC.
Ø 29th Nov 2008 OSOA defers it direct action plan in wake of Mumbal incident.
Ø OSQA again calls for direct action program w.e.f. 7th Jan 2009.
On number of occasions, Ministry has issued letters recommending the genuine concerns of OSOA but none of them were followed in letter and spirit. In fact the interim relief of merger of 50% DA w.e.f 01.01.2007 vanishes because the DPE guidelines has failed to continue the benefit as it has done in case of Govt., where 6th Pay Commission had recommended merger of 74% DA but the Govt. finally approved merger of 86%, in other words continuing the benefit of 50% DA merger. In case of PSUs they have not done so and as such the increase arising out of this 50% DA merger will have to be returned by the employees thereby negating the 30% increase which the Govt. has given. This amounts to an effective loss to the tune of 12.22% of pre-revised basic pay as on 01.01 .2007. In fact the statement of the Govt that entry level officers was drawing Rs.68, 000/- on January 1, 2007 is incorrect. The fact is that he was drawing only Rs.27, 540/- of Basic and DA that too at the maximum of the scale. Monthly emoluments do not include Provident Fund, Gratuity etc., as these are part of terminal benefits. The performance payments are always dependent on the profit of the company which will vary and are not a confirmed payment. Hence, the actual increase at entry level works out to Rs.3989/- per month only.
The details of loss on benefits are given in the table below:
Ø Pay Revision Committee headed by Justice M. J. Rao formed (30.11.06)
Ø Feed back through Questionnaire by OSOA Constituents
Ø Studies Conducted by SCOPE through M/S Mercer Consultants
Ø Studies Conducted by OIL Companies through M/S Hewitt Associates
Ø Presentation by OSOA to Justice M. J. Rao Committee(16.04.2007)
Ø Meanwhile 50% DA merger. Orders issued for PSUs w.e.f. 01.01.2007 instead of 01.01.2005 in May 2008. This would have happened automatically with the implementation of pay revision w,e.f. 01.01.2007. Hence nothing but just interim relief.
Ø Submission of recommendation by Justice M. J. Rao Committee (30.05.2008)
Ø Since then the Committee’s Recommendations, OSOA discussed in a few meetings & made appeals to MOP&NG through various communications to review the recommendations to suit the changing needs of the Oil Sector.
Ø OSOA got re-structured at its meeting on 28.08.08 in Mumbai with New Team of Office Bearers.
Ø OSOA Pay Revision Committee was formed on 28.08.08 which submitted its Report on 06.09.08
Ø Letter dated 28.08.08 from OSOA to Honourable Minister MOP&NG seeking to expedite the Pay Revision process & a hearing to put forth our grievances by 10.09.08. No response from the ministry.
Ø OSOA met honorable Minister of State for Heavy Industries & Public Enterprises Shri Raghunath Jha on 03.09.08 & appraised about grievances of Oil sector officers.
Ø OSOA on 19.09.08 again requested Honorable Minister MOP&NG for a hearing by 26.09.08
Ø OSOA met: Sri R. Bandhopadhyay, Secretary DPE on 19.09.08 submitted it’s Pay Committee Report.
Ø OSOA met Honorable Minister of State for Agriculture, Consumer Affairs, Food & Public Distribution on 24.09.08 who wrote a letter to Honorable Minister MOP&NG on that day Itself.
Ø Despite above efforts no response from MOP&NG till 29.09.08 to start dialogue.
Ø OSOA constrained to Issue Strike Notice dated 29.9.08 to start strike from 21.10.08
Ø Dialogue with Additional Secretary MOP&NG and AddI. Secretary (F&A — MOP&PNG on 15th October, 2008 — meeting cordial — discussions done but no concrete proposal from MOP&NG.
Ø 17th October 2008- Letter No. DOG-38011/3/2008 — fin.III(pt.II) dt. 17.10.2008 by Additional Secretary, MOP&NG. OSOA defers strike w.e.f. 21.10.2008 to 18.11.2008 in light of this assurance.
Ø 17th November 2008- Meeting with Hon’ble Minister of heavy Industries and Hon’ble Minister of PNG. During the meeting complete assurance by both the ministries to get the demand fulfilled in the Cabinet meeting of 20th November 2008. OSOA defers strike to 2nd December 2008.
Ø Cabinet goes by Committee of Secretaries report rather then demands as agreed with OSOA on 17th November 2008.
Ø 26th November 2008 DPE guidelines issued which was further downgraded w.r.t. to 2nd PRC.
Ø 29th Nov 2008 OSOA defers it direct action plan in wake of Mumbal incident.
Ø OSQA again calls for direct action program w.e.f. 7th Jan 2009.
On number of occasions, Ministry has issued letters recommending the genuine concerns of OSOA but none of them were followed in letter and spirit. In fact the interim relief of merger of 50% DA w.e.f 01.01.2007 vanishes because the DPE guidelines has failed to continue the benefit as it has done in case of Govt., where 6th Pay Commission had recommended merger of 74% DA but the Govt. finally approved merger of 86%, in other words continuing the benefit of 50% DA merger. In case of PSUs they have not done so and as such the increase arising out of this 50% DA merger will have to be returned by the employees thereby negating the 30% increase which the Govt. has given. This amounts to an effective loss to the tune of 12.22% of pre-revised basic pay as on 01.01 .2007. In fact the statement of the Govt that entry level officers was drawing Rs.68, 000/- on January 1, 2007 is incorrect. The fact is that he was drawing only Rs.27, 540/- of Basic and DA that too at the maximum of the scale. Monthly emoluments do not include Provident Fund, Gratuity etc., as these are part of terminal benefits. The performance payments are always dependent on the profit of the company which will vary and are not a confirmed payment. Hence, the actual increase at entry level works out to Rs.3989/- per month only.
The details of loss on benefits are given in the table below:
OSOA has noted the appeal of Hon’ble Minister of Petroleum and Natural Gas through a press statement bringing out that the issue shall be studied in detail by a group of ministers. OSOA takes this opportunity to remind the government that the issues have been highlighted by us for the past six months without any resolution or any action on the assurances given earlier. OSOA also reminds the government that the officers of Oil PSUs have laid their lives for the nation whenever it was so demanded and shall continue to do so in the future. In commercial terms following is the contribution of Oil PSUs in the nation’s economy.· Oil sector turn over is Rs 5.5. Iakhs crores which 15 % of India’s GDP.
· Contribution of 64% of gross revenues of the Government.
· Supports 45% of the energy consumption of the nation.
· Shared subsidy burden to the tune of Rs 1, 40,000 Crores thereby saving the common man from the impact of high fuel prices.
The government also seems to be unaware of the struggle/hardship of the Officers of Oil Companies for the kind of services rendered by them in a given work environment. It is a matter of record that Officer community have always stood by the Management’s of Oil Co’s through thick and thin despite being intensively and extensively work loaded due to multitasking and high attrition rate and have given their blood and sweat in achieving glorious performance for oil industry. We are pained to see the press statement made by Government that they will not allow any one to “hold the country to ransom” for pay revision which does not augur well in the present context, apparently government being oblivious of the fact that our colleagues have sacrificed their lives and families for the sake of oil companies and country as a whole.
OSOA also reminds the government that it is the Oil PSUs who have been helping the country by sharing the subsidy and following the decisions of the government at the cost of most of the companies going in red.
OSOA deliberated and expressed that enough delay has taken place on the issue of pay revision and therefore the committee of Group of Ministers should resolve all our demands before 07.01.2009.
Accordingly, OSOA feels that oil PSUs officer’s have no other option but to further intensify the direct action program w.e.f. 0600 hours of 7th January, 2009.
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