What Constitutes A Reasonable and Justifiable Hike in Basic Pay in the 10th BPS

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S.Srinivsan, 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
Sl. No	Item	Anushakthi nagar co-op stores ( Mumbai )	Chembur open market (Mumbai)	Average
GROCERY ITEMS
01	Rice Old Masuri	24.00	32.00	28.00
02	Wheat	21.00	25.00	23.00
03	Tur Dal	66.00	80.00	73.00
04	Moong Dal	64.00	76.00	70.00
05	Udid Dal	58.00	78.00	68.00
06	Sugar	34.00	36.00	35.00
07	Jaggary	45.00	47.00	46.00
DETERGENT
01	Bath Soap – 125 gm	16.00	16.00	16.00
02	Surf	187.00	187.00	187.00
03	Detergent Cake – 125 gm	13.00	13.00	13.00
OIL
01	KPL Coconut Oil – 1ltr	125.00	127.00	126.00
02	Dhara Sunflower Oil – 1Ltr	109.00	125.00	117.00
03	Saffola Gold – 1Ltr	145.00	145.00	145.00
NON VEG ITEMS
01	Mutton	320.00	320.00	320.00
02	Fish	300.00	320.00	310.00
03	Egg – per dozen	48.00	48.00	48.00
DIARY PRODUCTS
01	Milk – Cow	32.00	36.00	34.00
02	Milk Buffalo	42.00	48.00	45.00
VEGETABLES
01	Onion	14.00	14.00	14.00
02	Potato	24.00	26.00	25.00
03	Tomato	30.00	32.00	31.00
04	Cabbage	40.00	40.00	40.00
05	Flower	50.00	50.00	50.00
06	Karela	40.00	40.00	40.00
07	Baingan	40.00	40.00	40.00

08	French Beans	100.00	100.00	100.00
09	Gajjar	40.00	40.00	40.00
10	Ladies Finger – Bhendi	40.00	42.00	41.00
11	Beet Root	40.00	40.00	40.00
12	Green Leaves	50.00	56.00	53.00
FRUITS
01	Anar	140.00	140.00	140.00
02	Apple	150.00	150.00	150.00
03	Pappaya	30.00	36.00	33.00
04	Pears	140.00	140.00	140.00
05	Moosambi	50.00	50.00	50.00
06	Chickoo	40.00	40.00	40.00
07	Bannana – per dozen	40.00	40.00	40.00

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Comparative Chart:

Sl.No.	Name:	Rate> 1.1.06	Rate > 1.1.12	Difference	% increase
1	Rice/Wheat(average)	18.00	25.50	7.50	41.7
2	Dhall (average of 4 items)	40.00	70.33	30.33	75.8
3	Raw vegetable(average of 8 items)	10.00	48.90	38.90	389.0
4	Green leaf vegetable	10.00	53.00	43.00	430.0
5	Other vegetable (average of 3 items)	10.00	23.33	13.33	133.3
6	Fruits(average of 7 items)	30.00	86.10	56.10	187.0
7	Milk (average of two varieties)	24.00	39.50	15.50	64.6
8	Sugar & Jaggery average	24.00	40.50	16.50	68.8
9	Edible oil (average)	50.00	129.33	79.33	158.7
10	Fish	120.00	310.00	190.00	158,0
11	Meat	120.00	320.00	200.00	167.0.
12	Egg	2.00	4.00	2.00	100.0
13	Detergents(quantity computed as per monthly requirements. Average of 3 items. Bathing soap, washing soap and detergent powder)	200.00	332.00	132.00	66.0
14	Clothing. Monthly requirement 60 meters without anciliary charges)	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* 15^th ILC Norms

As per the prevailing rates of commodities as on 01.06.2012

Item	Per Day PCU ( in Grams)	Per month 3 CU ( in Kg)	Price per Kg As on 01.06.2012	Total cost per month
Rice/Wheat	475	42.75	25.50	1090.12
Dal Toor/Urad/Moong	80	7.2	70.33	506.38
Raw Veg	100	9.00	48.90	440.10
Green Leaf Veg	125	11.25	53.00	596.25
Other Veg Onion, potato, tomato	75	6.75	23.33	157.48
Fruits	120	10.8	86.10	929.48
Milk	200 ml	18 Lt	39.50	711.00
Sugar/Jaggery	56	5.00	40.50	202.50
Edible Oil	40	3.6	129.33	465.59
Fish		2.5	310.00	775.00
Meat		5.00	320.00	1600.00
Egg		90 Nos	4.00	360.00
Detergents etc Bath & washing soap, washing powder, etc			332.00 per month	332.00
Clothing $		5 mtrs per month. Deduced from 60 mtrs per annum	Rs. 200 per meter	1000.00
Total				9165.90
Misc. @ 20% *				1833.18
Total				10999.08
Addl. Exp @ 25% **				2749.77
Total				13748.85
Housing				1527.65
Grand Total				15276.50

PCU = Per Day Consumption Unit

3 CU = Three Consumption Unit

* = 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/-

This in our opinion is a justifiable and reasonable demand

NOTES ;

*Resolution1.7.1, 1.7.2 adapted in 15^th Session of the Indian Labour Conference held at New Delhi in July 1957

*1.7.2 At the 15^th 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 children’s 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.

PS : I had arrived BARE MINIMUM basic pay of substaff as Rs15276.50.and clerical staff as Rs.. 16604/- these were based on prices of commodities in January 2012. if one calculates the current prices of commodities in cooperative stores/fair price shop and market prices ,or simulate the figures arrived at with 7% inflation it shall be much more. Hence what is suggested is only bare minimum increase in basic pay and accordingly the merger and loading should be made.

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