The country?s biggest employer, the Indian Railways, is finally feeling the pinch of the global economic slowdown. Or so it seems, if a recent circular stating a move to withhold payment of 60% arrears of the Pay Commission, productivity linked bonus (PLB) and second installment of dearness allowance to its employees is anything to go by.
The move has not only created a huge flutter within the 14 lakh strong Railway workforce but has also led railway minister Mamata Banerjee to pull up the ministry top brass, seeking an explanation. The railway ministry, in turn, has turned on the heat on the Eastern Railways from where the ministry circular is purported to have leaked.
The circular, issued by railway ministry?s executive director, finance (Budget), Anjali Goyal, quoted railway minister Mamata Banerjee?s recent observation, that, ?In the context of the global economic slowdown and its consequent impact on the Railways? earnings and resource generation position, I would expect the board to adopt austerity and economy in all our expenditure proposals. Money saved is money generated?, and then goes on to underline the thrust on austerity and economy.
The circular then states that since the Railways? earnings till the end of June this year were ?not up to the mark?, the focus would be on economising the Ordinary Working Expenses (OWE) to the maximum extent possible in the eventuality of any shortfall in earnings.
Mentioning the setting of spending limits and the cuts made under various heads, the circular states, ?Besides, the amount provided in BE for 60% arrears of Pay Commission, second installment of IRFC lease charges, PLB, second installment of DA have also been withheld to be released later on their being sanctioned.?
The Railways disbursed Rs 13,600 crore to implement the recommendations of the Sixth Pay Commission last fiscal and has to shell out Rs 14,600 crore this fiscal to pay the remaining amount.
Significantly, the ministry circular also clearly states that the additional amounts provided for ?cleanliness and sanitation? have also been held back.
?These will be released only when specifically asked by the Railways for intensifying the cleanliness activity,? the circular states.
Cleanliness being high on Banerjee?s agenda, the move is learnt to have further annoyed the minister. The railway ministry?s PR machinery, meanwhile, has gone into an overdrive to clarify the situation.
While the Eastern Railways issued a clarification stating that ?the amounts provided for 60% arrear of Sixth Pay Commission, PLB and installment of DA indicated in the said letter are separately sanctioned and the same will be released to the Railways in time when they are due? and that ?there will be no compromise on payment of staff dues?, officials in the Rail Bhavan blamed the ?poor drafting? of the circular for the fiasco. ?Circulars giving out directions about austerity measures to be adopted are routine. Linking Pay Commission arrears, PLB and DA could have been avoided,? a railway ministry ministry official said.