NFIR objects PLB Committee’s view on Productivity Linked Bonus Agreement signed in 1979 – NFIR demands salary calculation ceiling should be removed as the payment of bonus for Railway employees is linked to the productivity as enunciated in the agreement dated 22 November 1979
National Federation of Indian Railwaymen
3, CHELMSFORD ROAD, NEW DELHI – 110 055
No. I/10 Part-IV
The Secretary (E),
Sub: Committee for evolving a new formula for Productivity Linked Bonus (PLB) on Indian Railways – reg.
(i) Railway Board’s letter No. ERC-1/2014/23/15 dated 21/03/2014.
(ii) NFIR’s letter No. I/10/Pt. IV dated 09/04/2014.
(iii) Railway Board’s letter No. E(P&A)II-2013/PLB-8 dated 11/02/2015 and 03/03/2015.
At the outset, NFIR invites kind attention of the Railway Board to Federation’s letter dated 09/04/2014 wherein Federation had conveyed its disagreement to the Railway Board’s decision for disturbing the bipartite agreement and proceeding with formation of a Committee of AMs for evolving new formula for calculation of Productivity Linked Bonus (PLB) in Railways.
2. NFIR also takes strong objection to the views of the AMs Committee who feel that the Scheme for PL Bonus for Railway employees was introduced in consultation with the two Federations. In this connection, NFIR desires to clarify that the bipartite agreement for payment of PL Bonus to Railway employees was signed jointly by the Railway Board and Federations on 22nd November 1979. Federations further desires to state that the agreement can only be modified with mutual consent of the stake holders.
3. From the above it could be seen that the PL Bonus agreement was reached in the year 1979 for providing substantial motivation to the workforce for achieving higher production by way of enhancing their output and improved quality of service. Over the years the freight loading has been improved as a result of dedicated efforts of workforce.
4. It is further stated that since the last two years, the Railway Board has been attempting to reduce the number of days of wages towards payment of PL Bonus in the name of Capital Input. There were strong protest and the Federations did not agree for any reduction of 78 days wages. The Railway Ministry had accordingly paid PL Bonus to Railway employees equivalent of 78 days wages with notional calculation of salary @ Rs. 3500 p.m. during two previous years. A bench mark “78 days wages” needs to be adopted in any case when a formula is required to be finalized in consultation with us. Equally the salary calculation ceiling should be removed as the payment of bonus for Railway employees is linked to the productivity as enunciated in the agreement dated 22 November 1979.
NFIR hopes that the Railway Board would give serious consideration to the above points and take steps towards reaching an agreement with the Federations in the interest of preserving healthy industrial relations in the Railways.
(Dr. M. Raghavaiah)