Clarification On Dearness Allowance

Dearness Allowance Controversy – Part 3

For the sake of some friends who believe and argue what they have brought is gold, not paddy husk, I wish to ask these - 

1. When central government employees could demand and achieve merger of the entire D.A. outstanding as on 31-12-2005 (2642 points) with their Basic Pay for fixing revised Basic Pay with effect from 01-01-2006, why UFBU could not achieve 100% merger of outstanding D.A. at 3028 points, but instead settled for merger of D.A. at 2836 points only, leaving 192 points in the process? 
2. As I have been repeatedly highlighting, it is the Basic Pay that determines the amount of DA, HRA, Leave Encashment, Pension Commutation, Monthly Pension, Family Pension, Gratuity and most importantly future pay scales.  Then, why did UFBU settle for merger of D.A. at a lower AICPI?  Does anyone have convincing answer? 
3. Even for 10th BPS, merger at 4440 points (vis-a-vis 4876 points) has been accepted by UFBU and without any shame or guilt, our UFBU tomtom that it's a great achievement.  In this case too, 436 points have been sacrificed resulting in a loss of Rs.4,000 per head, per month, on an average.
4. Similarly, making IBA to commit for implementing revised pay scales and allowances with effect from 01-11-2012 is considered a huge victory.  What is so special or extra-ordinary in this? It is always that way from the beginning. The revised pay scales will be implemented from the day following the date of expiry of the previous settlement.
5. Some of our friends here have conveniently forgotten or cleverly suppressed the fact that even as per 6th CPC, the aggregate of Basic Pay, Grade Pay and Transport Allowance are way above our present Basic Pay and after 7th CPC, things will only worsen, however much increase is shown in 10th BPS. 
6. Finally, bank staff had residual D.A. of 7.20% (i.e.172 points in AICPI - 48 slabs) as on 01-11-2007, whereas at this point, D.A. of central government employees was at 9.00%.  Now, as on 01-07-2014, D.A. of bank staff is forecast at 97.05% or 97.35%, whereas the D.A. of central government staff is forecast at 107%, thus widening the gap gradually from 1.80% to not less than 9.65%.
7. I remind once again, D.A. for central government employees is paid on the aggregate of Basic Pay, Grade Pay and Transport Allowance.  But, bank staff get their D.A. only on their Basic Pay.   So, both in terms of percentage and in absolute terms, we suffer huge loss.

Now you tell me, who is wiser?

Date: 07-04-2014                                                                                                            pannvalan

Link Of Blog Written a Few Days Ago On Dearness Allowance By Same Writer