Archives- News Updates On November

Centre to frame law barring govt doctors from taking favours

Gulam Nabi Azad, Union Health and Family Welfare Minister, at a Nationalistic Doctor’s Forum Programme said that the central government will soon frame laws to prevent government doctors from taking gifts and cash from pharmaceutical companies. Citing a conflict of interest, the minister said that doctors prescribe costly medicines to patients in exchange for the favors. Also, the government will set up institutes like AIIMS in West Bengal and strengthen private-public partnership to improve healthcare facilities in India.

Source: www.business-standard.com, November 30, 2009. “Law to prevent govt doctors from taking company favours soon”

PSUs bank employees get salary hike and pension benefits

PSU banks and unions have settled their negotiation with a salary hike of 17.5 percent for around 702,000 employees while also making 332000 serving and retired employees eligible for pension scheme. This hike will have a retrospective effect from November 2007 and would place an additional burden on the banks. This is the second pension option for employees who have not opted in 1993. However, State Bank of India employees association has not accepted this proposal and has walked out of the wage settlement.

Source: www.business-standard.com, November 28, 2009. “Bank employees get 17.5% wage hike, pension benefit”

SBI employees reject the PSU bank wage settlement

The All India State Bank Officers Federation (AISBOF) rejected the proposal of a 17.5 percent salary hike with a pension scheme and is demanding a separate pay revision. As per S K Haldar, vice-president of AISBOF, 3 lakh SBI employees are ready to go on an indefinite strike to demand a separate pay revision at par with Central government employees. However, Indian Banks Association and United Federation of Banking Unions, representing 9 banks, have agreed to the pay revision.

Source: economictimes.indiatimes.com, November 28, 2009. “SBI union rejects new wage pact, demand separate revision”

Bill to amend Workmen's Compensation Act introduced in Lok Sabha

Labour Minister Mallikarjun Kharge, on 24th November, 2009 introduced Workmen's Compensation (Amendment) Bill, 2009 in the Lok Sabha. The Bill aims at providing better compensation and amenities to the working class.

The Bill proposes to increase compensation to workmen in case of injury or death from the existing Rs 90,000 to Rs 1, 40,000. It also seeks to increase the amount given to workers for performing last rites to Rs 5,000. Moreover, compensation given to workers would be now based on the price index.

On introduction of Bill arguments were raised that, the compensation suggested was less when compared increase in the inflation rates. Thus, demands were raised to double the amount of compensation suggested in the Bill.

The bill also proposes to fix time limit for settlement of cases involving compensation within three months. For this it was suggested to equip the commissioner with penal provisions to fine companies which do not provide compensation within the fixed time limit.

Source: business.rediff.com, November 25, 2009. “MPs demand hike in workmen's compensation”

New Marine Fisheries Act faces opposition

The draft Marine Fisheries (Regulation and Management) Act 2009, which proposes to regulate fishing activities in the exclusive economic zone beyond territorial waters, has faced opposition from fishermen and state government, especially of Tamil Nadu and Kerala. As per this act, any Indian fisherman using any fishing vessels outside the territorial waters of India will require a special permit besides the fishing license, which is valid only upto 12 nautical miles from the coast. The act also imposes high penalty and strict oversight on violators of the provisions.

Source: www.financialexpress.com, November 24, 2009. “Fishermen oppose Marine Fisheries Act”

Foreign workers face problems due to strict visa policy

The Indian government has framed a strict visa policy for foreign workers in India, which is likely to affect employment status of people from various countries working in India. High commissioners of China, Japan, UK are worried and waiting for a clarity in policy. Notably, Chinese workers are involved in infrastructure projects across the country, of which, 25,000 were asked to depart by 31 October this year while many others still face uncertainty. The power ministry has requested the home ministry to resolve the issue in view of the delays in completion of infrastructure projects.

Source: www.indianexpress.com, November 24, 2009. “‘Strict’ policy on foreign workers raises eyebrows”

Pilots to face alcohol test before take off

The latest order issued by Director General of Civil Aviation under flying policy stipulates that pilots across all segments - airlines, air taxi operators, state government and private aircraft operations - take an alcohol test before flight take off. The guidelines specify that pilots found guilty of alcohol consumption before the flight, for the first time, will be debarred from duty for at least four weeks; and pilots committing the offence for the second time in a row will be removed permanently from flying duties.

Source: www.indianexpress.com, November 24, 2009. “No more flying high, pilots to take alcohol test before take off”

CSMMU docs continuing private practices despite ban

The teachers at Chhatrapati Shahuji Maharaj Medical University have shown their total disregard for the law by continuing to operate in private clinics despite a ban on the same. Teachers in this medical college have received two salary hikes this year, putting them at par with AIIMS in the salary chart, in spite of which, their private practices continue unabated. The doctors have been, at times, caught of doing so against the contract but due to references and their connections in bureaucracy and political arena, legal proceedings against them have got unnecessarily delayed and stuck in red tape.

Source: timesofindia.indiatimes.com, November 24, 2009. “Docs continue with private practice despite ban”

Hiring activity to be around 30 percent

A survey conducted by PHD Chamber of Commerce shows that only 30 percent of the respondents are planning to hire personnel in the next few months. The survey, which consisted of 186 responses from different companies, shows that the demand for people has risen in middle and entry level positions. The respondents said that there are various reasons for low hiring, one of the main reasons being lack of skill. Satish Bagrodia, president of the chamber, said that reform in the education system is needed to impart skills.

Source: www.business-standard.com, November 23, 2009. “Only 30 per cent of industry plans to hire: Survey”

CEOs salary to be capped at 1.5 crore by IRDA

IRDA chairman J Harinarayan said that IRDA is thinking about capping the salary of managerial staff of insurance firms. He added that there should be a limit fixed on the amount policyholders are charged for managerial remuneration. According to sources, IRDA is now considering to cap the salary of CEOs in the insurance sector at Rs. 1.5 crore annually, which could be paid from policyholder’s fund; and any subsequent amount should be paid by promoters.

Source: timesofindia.indiatimes.com, November 23, 2009. “IRDA may cap CEO salary at Rs 1.5 crore”

PSUs to be leased out to private players for 99 years

The government is planning to lease out 6 public sector units to private players for upto 99 years to turn around these companies while overriding norms which specify a minimum 51% govt holding in PSUs. The government is planning to appoint consultants for valuation of companies. As a new divestment policy, leasing these sick and non-functional PSUs will be beneficial to the government and private players as well.

Source: economictimes.indiatimes.com, November 23, 2009. “New Divestment Policy: Centre to lease 6 PSUs to private Cos for 99 years”

Orissa government reforms medical services to attract doctors

Prasanna Acharya, Orissa Health and Family Welfare Minister, informed that the government is taking serious steps to attract more number of doctors to government services. Orissa Public Service Commission (OPSC) is in process of recruiting 556 doctors, and is still short of doctors in the state. The retirement age of doctors has been raised from 58 to 60, and age limit of contractual doctors to 68 years. Special allowances are being given to various grade of doctors and a transparent transfer policy is in consideration with the government.

Source: www.expressbuzz.com, November 22, 2009. “Salary hike for contractual docs likely”

AP govt department recruits engineers, bypassing the state Public Service Commission

The agriculture marketing department of Andhra Pradesh, while bypassing the AP Public Service Commission, is set to employ 72 mechanical engineers based on the merit list prepared by JNTU, an unauthorized recruiting agency. While the norms require civil engineers to be hired to supervise the work being taken up in 321 market yards in the state, the department has recruited mechanical engineers, 11 of them from the Andhra Pradesh Heavy Machinery and Engineering Limited (APHMEL), in a clear violation of guidelines.

Source:timesofindia.indiatimes.com, November 20, 2009. “PSC ignored as agri dept goes ahead with engineers' recruitment”

Meeting between APSRTC and Union postponed to Saturday

In a meeting held between the APSRTC management and the National Majdoor Union on 19th November in Hyderabad, issues like wage revision, abolishing of contract recruitment of drivers and conductors, regularization of contract workers were discussed. However, the RTC management assured the union members of a solution in another meeting to be held on Saturday, where both parties could meet after calculating the financial implications of these measures. According to the union, if the management agreed to their demands, they will avoid resorting to strike.

Source:timesofindia.indiatimes.com, November 20, 2009. “RTC union to hold talks again on Saturday”

CII to bridge the gap between academics and industry

In order to help students from the weaker sections of the society to join the industry with better soft skills, the Confederation of Indian Industry (CII) is mulling with the idea of getting associated with various institutes, offering suggestions to these schools to improve their weaker areas. CII also plans to set up a finishing school in Indore while also exploring other areas for the same. It plans to rope in CII industrial members as faculty for the training programme, which starts with an initial batch of 25-30 students.

Source:www.business-standard.com, November 20, 2009. “CII to raise trained workforce for industries” 

Omitting J&K in ESR map: No pay hike for officers at fault

In a general body meeting conducted by the Pune Municipal Corporation in October last week, the state of Jammu and Kashmir was found missing in its 2008-09 Environment Status Report map. Reportedly, the map was downloaded from www.worldatlas.com, and was erroneous. The corporation has put the blame on two of its officers involved in the process and has decided to hold back their next annual salary hike.

BMC to increase its revenues through stamp duties

The Brihanmumbai Municipal Corporation (BMC), which is facing a severe financial crunch owing to the global financial meltdown, has decided to ask for a 50% share of the stamp duty and registration charges on property deeds. Awaiting a formal request, it also wants a share of the professional tax deducted from an employee's salary, which in turn would increase civic revenue by Rs 1,500 crore. All this amidst the increase in BMC employees’ salaries, which lowered BMC’s revenues by Rs1,800 crore.

Goa govt to reconsider hike in minimum wages

The Goa Small Industries Association (GSIA), along with other associations, has made a request to the state government to reconsider a 45% hike in minimum wages in the state, which fixed the minimum wage to Rs 150 per day.  The MSME sector would be severely hit by this hike as the investments would dip, entrepreneurship will be discouraged, employment opportunities will diminish and wage disputes will increase, according to the president of GSIA.

Source:timesofindia.indiatimes.com, November 16, 2009.“GSIA plea to reconsider hike in minimum wages”

Minimum wages in Goa set to increase

Joaquim Alemao, Goa’s labour minister announced that the minimum wages of unskilled and labour class workers will be raised from Rs 103 to Rs 150 with a notification to this effect to be issued soon. The decision was taken at a minimum wage advisory board meeting after a big debate between employers and trade unions, with the former arguing for a raise to Rs 123 and the latter demanding Rs 275 per day. The board later decided to raise the minimum wage to Rs 150 per day in order to help improve the living conditions of unskilled workers.

Source:timesofindia.indiatimes.com, November 11, 2009.“Minimum wages to be raised soon”

Overall salary increase to be around 8 percent in 2009

A survey done by Mercer on a 93 companies’ mix of all sectors and sizes concluded that in spite of the economic slowdown, overall salary hike for the year 2009 will be around 8 percent and for 2010 will be 10.9 percent. It was also found that in the next 3 months over 50 percent of the surveyed companies will increase their headcount, while only 2 percent will be cutting down employee size. Indian companies seem to have beaten the recession by deferring salary hikes and imposing a freeze on hiring.

Source:Labour Law Reporter, November, 2009.“Coming soon double digit salary hike: Mercer study” Page No. 322

Govt not to interfere in the matter of CEO’s salary

In a press conference, while campaigning for the Congress-NCP Alliance in Mumbai, Prime Minister Dr. Manmohan Singh said that companies are free to decide the salaries of their CEOs. He responded to the recent debate on high corporate salaries that Government has no intention to interfere in this matter. The PM also clarified that his past remark on the issue was a general statement, not signifying the govt’s intention.

Source:Labour Law Reporter, November, 2009. “Companies free to decide on CEO salaries” Page No. 322

Maharashtra govt. medical college teachers get a salary raise

Maharashtra state medical education secretary Milind Mhaiskar confirmed that a salary hike has been given to medical college teachers in the state. The revised salary for a lecturer inclusive of all incentives will be Rs 50000 per month, while that of assistant professor will be Rs 70000 and a professor will get Rs 1 lakh per month. A member of Maharashtra State Medical Teachers’ Association expressed happiness over the salary hike as their demands were fulfilled without them going on a strike.

Source:timesofindia.indiatimes.com, November 12, 2009.“State hikes pay of govt medical college teachers”

Sikkim to hike minimum wages soon

The labour department of Sikkim has proposed to raise the minimum wages in all four categories of workers, i.e. unskilled, semi-skilled, skilled and highly skilled. As per the proposal, the rise will be; for unskilled worker Rs 130 from Rs 100, for semi skilled Rs 145 from Rs 115, for skilled workers Rs 165 from Rs 130 and for highly skilled workers Rs 190 from Rs 150. With the subsequent rise, Sikkim will have among the highest minimum wage rates for workers in the country.

Source:economictimes.indiatimes.com, November 11, 2009.“Sikkim raises workers’ daily wages”

For Genpact, there is no slowdown in recruitments

According to Genpact CEO Pramod Bhasin, firms which had been recruiting candidates during the financial crisis will soon benefit from the recovery in the Indian economy. Genpact has hired close to 6000-7000 people globally this year. While it is looking at global acquisitions to expand operations, Genpact’s recruitment in India will be 75 to 80 percent of the company's total global hiring.

Source:economictimes.indiatimes.com, November 9, 2009.“Strong companies kept hiring during slowdown: Genpact CEO”

Technology companies to step up hiring activities

With signs of improvement in business prospects and the global economy, many technology firms like Accenture and Infosys BPO, which were severely hit by the economic crisis last year, plan to recruit 2000-8000 people. Firms like Standard Chartered also would hire close to 3000 employees by 2010. Moreover, most of the top domestic and transnational companies are likely to go for campus placements from engineering and management schools in December.

Source:economictimes.indiatimes.com, November 9, 2009.“Tech firms to go headhunting”

Railways to recruit Group C employees

With the appointment of new chairmen in 20 Railway Recruitment Boards (RRB), the railway ministry has lifted a freeze in the recruitment of around 40,000 group C employees. Incidentally, railway is the single largest employer in the country and almost 50000 employees retire every year. The RRBs are expected to conduct examinations for the appointments of various posts including loco driver, station master, supervisor and guards in February next year.

Source:economictimes.indiatimes.com, November 9, 2009.“Railways to fill up 40000 vacant posts soon”

No salary hike for lower level executives in IT sector

Though the economic situation continues to improve for IT companies, recovery continues to be at a low pace. The IT sector is now gaining projects from the government and global MNCs with that ratio increasing steadily along with their profits. In spite of this, companies have decided against a salary hike for middle level and lower level executives, restricting it to about 0-5 percent; while salaries of CEOs and higher level executives has been increased 8-10 percent as companies believe that they cannot afford to lose top-level executives.

Source:www.siliconindia.com, November 6, 2009.“More projects, but no hike in salary for lower level executives"

Flexibility in staff management required to survive in the post-recovery world

Manpower Inc, an employment services industry firm, suggests that companies should have a more flexible and strategic approach towards their employees, especially after last year’s recession. This will help them to get hold of the best talent and retain them. Also, contingent employees should be considered as practical resource and steps for their betterment must be taken. Effective steps in manpower management will lead the companies to manage risk and increase productivity.

Source:www.financialexpress.com, November 5, 2009.“Companies need flexible approach towards staff management: Manpower”

Companies facing problems to regain employees after slowdown

The companies which resorted to layoffs and salary cut during the economic slowdown are now having a hard time gaining employees. Their knee-jerk approach of lay-offs has adversely affected the reputation amongst prospective employees. The companies which did not stick to their promises after campus recruitment are also facing the heat while former employees are also advising friends and familiar people against joining such companies.

Source:economictimes.indiatimes.com, November 5, 2009.“Payback time: Cos may face heat for layoffs, salary cuts”

Govt employees to get smarter outfits

The government is all set to bring changes in the uniform of employees in public sector units, armed forces and in the state government. The new outfits will be more professionally designed with a smart look. The Central Vigilance Commission office, which decides the tendering of the various processes, is insisting on composite mills for the clothes since the process of weaving, spinning and processing is done at the same place in a composite mill, thus maintaining the quality and colour of the clothes.

Source:economictimes.indiatimes.com, November 5, 2009.“Govt staff to shed grey, tired look for chic”

Earth works wages under NREGS revised in Orissa

Orissa has revised the NREGS (National rural employment guarantee scheme) earth works employees wages for unskilled labourers from Rs 70 to Rs 90. Officials have also said that revised wages for lifting the 100 cubic feet of earth in ordinary soil is raised from Rs. 100 to 120, for hard soil from Rs. 135 to 160 and for stony soil from Rs. 215 to 250. This was done to attract job seekers towards NREGS as there is a high fall in the demand for NREGS jobs.

Source:economictimes.indiatimes.com, November 5, 2009.“Orissa revises wages for NREGS job seekers”

Patna HC orders hike in the salary of civil court employees

Patna High Court passed an order to the state government to raise the salary of civil court staff to the level of government employees’ salary after the Sixth Pay Commission recommendations. The division bench of HC judges directed the state government to pay the raised salary to the civil court staff within a month and arrears be paid within a stipulated time-frame since government employees have already received it.

Source:timesofindia.indiatimes.com, November 4, 2009.“HC orders pay hike for civil court staff”

Coal India to up CSR contribution

On the occasion of 34th foundation day of Coal India Ltd (CIL), Coal Minister Sriprakash Jaiswal said that CIL will devote five percent of its net profit for the Corporate Social Responsibility (CSR) fund. Also, the company will provide support to 100 meritorious students in BPL households for their higher education and will also offer them a job in the company. Mr. Jaiswal also proposed to fix minimum wages for the contract coal workers, which should be higher than state government’s minimum wages.

Source:www.ptinews.com, November 1, 2009.“Coal India to devote 5 per cent net profit to CSR”