PSUs freeze DA for not just executives but non-executives as well?

New Delhi: Even though the Department of Public Enterprises (DPE) had said in its November 19 order that the government has decided to freeze additional Dearness Allowance (DA) for executives and non-unionised supervisors of PSUs, internal memo circulated by a few PSUs (and accessed by PSU Watch) shows that the allowance has been frozen for workmen as well. "In view of the crisis arising out of COVID-19, it has been decided that additional instalment of dearness allowance payable to employees of CPSEs drawing pay as per 2017, 2007, 1997, 1992 and 1987 IDA pay revision guidelines, due from October 1, 2020, shall not be paid," the DPE had said in its November 19 order.

HAL, BEL, BDL freeze DA for both executives and non-executives

In an internal memo released by the HR department, titled 'Freezing of Dearness Allowance for Executives (including TC personnel) and Non Executives,' Bharat Electronics Ltd (BEL) said, "It has now been decided to freeze the Dearness Allowance for Executives (including TC personnel) and Non Executives. Accordingly, the DA rate payable for the quarter commencing from 01.10.2020, 01.01.2021 and 01.04.2021 will be 18.4%." Similar circulars were released by Bharat Dynamics Ltd (BDL) and Hindustan Aeronautics Ltd (HAL). 

ALSO READ: PSU Executives' Associations ask govt to roll back DA freeze, term decision 'unreasonable'

"Considering the aspects at paras 1 to 3 above, the differential DA paid at the revised rates in respect of Officers and Workmen for the month of October 2020 as notified vide letter dated 7.10.20 referred at (ii) above will be recovered. However, DA at the rate applicable w.e.f 1.7.20 will continue to be paid," HAL said in its memo. 

DA freeze would affect 15 lakh PSU employees: NCOA

In a letter to the Minister for Heavy Industries and Public Enterprises Prakash Javadekar, the National Confederation of Officers' Association (NCOA) had argued that the Centre's decision will not just impact executives and non-unionised supervisors in PSUs but unionised workmen as well. "DPE issues guidelines for 'executives & non-unionised supervisors' only. Further, as per DPE guidelines, 'the wages (ie Basic Pay & DA) of unionised workmen are to be settled through wage negotiation / tripartite settlement, which cannot be in conflict with that of Pay Revision of Executives.' Accordingly, the DA freeze conveyed by DPE on 19th November, 2020 would automatically be applied to unionised workmen also to avoid conflict. This would impact around 15 Lakh employees of Central Public Sector Enterprises," the NCOA had said in the November 23 letter.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)