DEPARTMENT OF PUBLIC ENTERPRISES

Questionnaire- Pay Revision Committee for executives and non-unionised Supervisors of CPSEs – w.e.f 1.1.2007.

1. Role of the Government

1.1 In view of present liberalised and competitive economic scenario, what should be the role of Government as owner in deciding pay structure, perks and allowances of CPSE executives?

2. Scales of Pay & uniformity in pay packages

2.1 (a) Should the present classification of schedule of CPSE (A,B,C,D) be revised? If so what alternatives do you suggest and the reasons thereof?

(b) Should the present system of uniformity of pay scales within each of the four schedules (A,B,C,D) continue or should it be revised?

(c) Should there be separate pay scales for Nav Ratnas and Mini Ratnas I & II?

2.2 Should there be any stipulation regarding uniformity of pay scales and perks among CPSEs, or should the decisions on these matters be left entirely to each CPSE?

2.3 If the Government is not to prescribe any degree of uniformity, what steps, if any, would be required to minimize the migration of superior talent to those CPSEs which are financially better placed, or for minimizing the possibility of any unhealthy competition amongst CPSEs or between CPSEs and Private Sector, to raise the salaries etc. to attract or just retain efficient and productive personnel?

2.4 What should be the reasonable ratio between the minimum and the maximum of the pay scale?

2.5 Should the number of pay scales existing now be retained, increased or decreased, or the same should be replaced by a running pay scale?

2.6 What is the desirable ratio of pay scale between top level and entry level?

2.7 What is the ideal ratio of manpower cost to cost of production/sales turnover in your industry and what is actual ratio in your Company?

2.8 How should pay be fixed in the revised pay scales? Should there be a point-to-point fixation? If not, please suggest a method by which it can be ensured that senior personnel are not placed at a disadvantage vis-à-vis their juniors and due weightage is given for the longer service rendered by the former.

2.9 Should the pay scales of Board level executives be re-designed in order to attract candidates of the requisite calibre; what emoluments would you suggest for the board level executives in CPSEs.

3. Increments.

3.1 What should be the criteria for determining the rates and frequency of increments in respect of different scales of pay? Should these bear a uniform or varying relationship with the minima and/or maxima of the scales?

3.2 Should the rate of increment be fixed or on percentage basis. If on percentage basis, indicate the percentage.

3.3 What should be the level of annual increment in terms of absolute value or/and percentage of basic pay?

3.4 Whether there should be stagnation increment for executives who reach the maximum of the scale. If so what should be the frequency.

3.5 Which are the scales in which comparatively a larger number of executives are stagnating in your Company?

4 Composition of the package

4.1 Presently the compensation packages include a number of allowances and perks. Would it be preferable to adopt a system of clubbing these into a consolidated salary in the interest of rationalization?

4.2 If a mix of basic salary, allowances (including HRA and CCA), perks, incentive payments etc. is to continue, what should be the proportion of each in the package?

4.3 What are present allowances. What are the changes you propose.

4.4 Should there be fixed salary and a variable component which is related to the performance of the individual. If so what should be the proportion.

4.5 Should incentives be made available to the members of the Board of Directors, and if so, what should be their nature and extent?

4.6 Should there be uniformity in perquisites, allowances and incentives amongst all CPSEs, or amongst CPSEs within the same schedule, or there is no need to prescribe any uniformity?

4.7 What should be the limit on perks of CPSE executives in terms of percentage of basic pay.

5. Company’s Performance Related Payments.

5.1 What should be the criteria for performance related payments?

5.2 Whether performance related payment be allowed on the basis of distributable profit of the Enterprise?

6. Recruitment, Promotion, Flight of Talent.

6.1 What has been the number of functional directors, executives and officers leaving your organization annually over the last ten years and how does it compare with a few similarly placed representative units in private sector? What could be the main reasons for their leaving? (Priority and weightage may please be indicated to the extent possible.)

6.2 What is the number of executives leaving in each category and its percentage to the total strength in the concerned category?

6.3 What is the system and what are the parameters for recruitment of management trainees or equivalent levels in your organization?

6.4 Please indicate the names of institutions from which management trainees have been recruited through campus recruitment. Also give institution wise details of number recruited and number resigned during the last 5 years.

6.5 What is the criterion for identifying the institution from which campus recruitment is to be made?

6.6 What is the current promotion policy in your CPSE? Are any changes required? Please give your suggestion.

7. Issues of relativity and comparison with Government/Private sector/Multinational Corporations.

7.1 Should the compensation packages in CPSEs for the period 2007 onwards be based on the packages as they now exist, with some percentage increase, or would you suggest any other method?

7.2 Should CPSE pay scales and allowances have any linkage to the pay scales and allowances in the Government? If so, what are your suggestions?

7.3 How does the current compensation package in CPSEs compare with their counterparts amongst listed private sector or multinationals companies?

7.4 What should be the relativity in remuneration between the top management and workmen?

7.5 What measures should be taken by the relatively weaker CPSEs with inadequate resources to attract better people who would be essential for improved performance? What should be the measures for additional resource mobilization by weaker CPSEs?

7.6 If a very substantial increase in the package of emoluments for CPSEs is recommended to bring them closer to the private sector, what changes in terms of performance targets, evaluation, accountability and other conditions of service etc., should be prescribed?

7.7 If it is not found feasible or justified to bring the public sector emoluments at par with those in the private sector, how close need the compensation package in CPSEs be brought to the private sector to attract and retain comparable talent?

7.8 Taking into account the benefits, excluding pay, derived by employees in CPSEs such as security of tenure, promotional avenues, retirement packages, housing and other invisibles, can there be any fair comparison between the salaries available in the Public Sector vis-à-vis the private sector?

7.9 What are your suggestions on harmonizing pay package of CPSEs with the economic condition of an average Indian and the demands of global competitive Economy?

7.10 Some countries have Civil Service/CPSEs pay scales almost to levels prevalent in the private sector on the hypothesis that a well-paid executive is likely to be honest and diligent. To what extent would such a hypothesis be valid and how far would such a course of action be desirable in the case of executives of CPSEs?

7.11 Would you suggest any changes in the existing relationship between pay packages of workmen and executives/supervisors immediately above level of workmen?

8. Issue of resources

8.1 Given the problem of resource constraints in many CPSEs, is it possible to enhance the overall compensation packages without increasing the financial burden on the enterprise? If so, how can this be done?

8.2 Should enhanced payments be deferred and linked to the future performance of the CPSEs and if so, to what extent? How can the employees be rewarded without a direct or immediate burden on the organization? Schemes like stock option provide an appreciation in the value of the holdings of the employees through the capital market mechanism – what other schemes of this nature can be suggested?

9. Central Dearness Allowance (CDA) related issues

9.1 Should the scales of pay of employees of CPSEs on CDA pattern be revised on the same conditions applicable to the employees of IDA pattern to maintain uniformity of pay revision?

9.2 Whether employees of CPSEs on CDA pattern be brought on IDA pay scales on promotions or otherwise on mandatory basis.

9.3 Should CDA pattern of scales be totally done away with?

10. Pay revision in Sick/BIFR referred CPSEs

10.1 Whether pay revision in sick CPSEs referred to BIFR be allowed as per present procedure only (i.e. strictly as per rehabilitation packages approved by or to be approved by the BIFR and after providing for the additional expenditure on account of pay revision in their package). What should be the pay revision policy for sick CPSEs, which are not referred to BIFR/BRPSE?

10.2 Whether the same condition would also be made applicable in case of pay revision of CPSEs following CDA pattern of scales of pay to maintain the parity between these two categories of employees in the same CPSE to avoid legal complication.

11. Specific proposals

11.1 In what manner can CPSEs functioning be improved to make them more professional, citizen-friendly and delivery oriented?

11.2 Please outline specific proposals, which could result in:

(i) Reduction and redeployment of manpower

(ii) Reduction of paper work

(iii) Better work environment

(iv) Economy in expenditure

(v) Professionalisation of services

(vi) Reduction in litigation on service matters

(vii) Better delivery of services/product by CPSEs to their users

(viii) Any other suggestions.

11.3 Do you think the concepts of contractual appointment, part-time work, flexible job description, flexi time etc., need to be introduced in CPSEs to change the environment, provide more jobs and impart flexibility in the working conditions of employees?

11.4 What steps should be taken to ensure that technical professionals with sophisticated education and skills are retained in their specialized fields in Central Public Sector Enterprises? Should they be appointed on contract with a higher status and initial pay, advance increments, better service conditions, etc?

12. Holidays.

12.1 Kindly comment on the appropriateness of adopting a five-day week in some CPSEs when other sectors follow six-day week. Whether the number of gazetted holidays in CPSEs offices should be reduced? Please also comment on the appropriateness of declaring holidays for all major religious festivals?

12.2 What do you think is the state of work ethics and punctuality in CPSEs officers? Kindly suggest ways of improving these?

13. Voluntary Retirement Scheme.

13.1 Is VRS the only way to rationalise manpower?

13.2 Should the VRS scheme notified by DPE on 5.5.2000, 6.11.2001 and 26.10.2004 continue or VRS package should be modified? If yes, give your suggestions?

14. Performance Appraisal

14.1 What is the present system of performance appraisal? What are your suggestions?

COMPENSATION PACKAGE IN CPSEs AS ON 31.12.2006

1. Name of CPSE:

2. Financials Status of CPSE (loss making/BIFR referred/profit making/Miniratna/Navratna)

3. Status of Pay Revision: (in IDA scale of pay - 1987, 1992 and 1997)

(In CDA scale of pay – 1986 and 1996)

4. Total No. of employees:

Pattern of scales of pay	Workman (unionized)	Non-unionised supervisors	Executives below Board level	Board level	Total
IDA Scales of Pay
CDA Scales of Pay

5. Nature of employees: Regular (State No.)……….Contractual (State No.)………..

6. Status of scales of pay: DPE model scales of pay / Deviated scales of pay

7. Reasons for deviation in scales of pay:

8. Approval of competent authority for deviation :(Please state the authority approving the deviations)

9. Periodicity of wage/ pay revision:

10. Increments fixed/if percentage basis then indicate

the percentage of basic pay:

11. Compensation Parameters	Workmen (unionized employees)	Non-unionized supervisors	Executives below Board level (E-0 to E-9)
i. Salary
Basic (incl. PP & any other type)
DA
Sub-Total
ii. Performance Related Payments
Incentive/Reward
Bonus/Ex-gratia
Sub-Total
iii. Allowances/Reimbursements/ Benefits
Conveyance Reimbursement
Night shift Allowance
Magazine/HRD Allowance
LTC/LLTC
Canteen
Entertainment Allowance
Leave Encashment
Furnishing Allowance (soft/hard)
Any others, if any (pl. specify)
Sub-Total
iv. Social Amenities/Benefits
Education
Housing (Township)
Medical
Others (pl. specify)
Sub-Total
v. Retiral Benefits
PF
Gratuity
Medical Benefits/facilities
Company’s contribution to Pension
Sub-Total
vi. Any other items
vii. Total (Cost to Company)
(i+ii+iii+iv+v+vi)

Note: - (i) While information on all components is requested for, at least total under each of the heads may kindly be furnished for detailed analysis by the pay Panel.

(ii) Whether performance related payments is based on distributable profit. If yes, indicate the percentage of distributable profit.

12. Remarks, if any: