TNEB implements recommendations of Sixth pay commission with 40% hike
Friday, 13 November 2009
ET bureau, Chhenai

While the board will have to shell out Rs 1200 crore towards arrears payment, the revision will entail an annual additional expenditure of Rs 625 crore.
Tamil Nadu Government has implemented the recommendations of Sixth pay commission for employees and officers of Tamil Nadu Electricity board (TNEB) with a 40% hike in wages and allowances. The tamil Nadu Government announced revision in pay and allowances ranging from Rs 1400 to Rs 19510 per month across various cadres in TNEB from Mazdoors to chief engineers. The revision will take effect from December 1, 2007 ( it is due from December 1, 2006) and a formal wage accord for four years will be signed with the unions soon.

The State Minister for Electricity board, Arcot N Veerasamy said the revision will benefit about 76,000 employees and officers, 84,000 pensioners and 10,000 contract workers. While the board will have to shell out Rs 1200 crore towards arrears payment, the revision will entail an annual additional expenditure of Rs 625 crore.

A revised work norm will also be implemented along with the revision in wages and allowances, the Minister said. Despite the EB suffering a loss of Rs 7000 crore and struggling to cope with the power shortage, it has been forced to go in for a wage revision. It is expected to be bailed out by the State Government by stepping up the subsidy or providing other financial accommodation.

While there are 18 trade unions in TNEB, a majority of the workmen are represented by the unions affiliated to LPF, the DMK’s TU wing, CITU, AITUC and an independent federation.

Sources in CITU said while the contract workers were expecting their daily wage to be fixed at Rs 250, it has been raised by Rs 50 to Rs 120 per day. The sources also wanted the Government to give a fair deal to about 3500 part time staff by extending them the salary being paid to noon meal staff. The EB had issued an order to this effect in 1997 but not implemented so far.

Political circles viewed the wage revision in TNEB in the context of the ruling DMK’s game plan to retain the vote bank of Government employees and the working class at the time of assembly election due in May 2011.