Sixth Pay Commission: Ministry of Defence Controversy with Armed forces Pay hike

The game that begun with the Sixth Pay Commission recommendations is not getting clear any furhter, especially with respect to what the Armed Forces or Defence Forces are trying to ask for. The latest news on Sixth Pay Commission is that there is a fresh controversy erupting between the Ministry of Defence and the Armed Forces. It may further delay the implementations of the Sixth Pay Commission. Leaders of various political parties have already made it a big agenda to highlight the Sixth Pay Commission recommendations. Wikipedia on Sixth Pay Commission News.

As per the news that had come in earlier, a high-level committee comprising of three Cabinet ministers was looking at the four "core issues" that the armed forces have raised after the Sixth Pay Commission report was released. To add salt to injuries, a new controversy has erupted. The Ministry of Defence (MoD) and the Armed forces are learnt to be at loggerheads with each other once again over salary related issues that have cropped up in the past one week.

There were already many anomalies that were reported to be corrected by the armed forces, but even after the high level committee instructions, the forces have now found some more new anomalies in the special instructions that were not there in the Sixth Pay Commission report approved by the Cabinet and notified by the government. Angered at being "short-changed", the chief of personnel officers committee (COPOC) of the three forces has shot a letter to the MoD asking it to remove seven aberrations that include the dilution of the provisions of the pay commission as approved by the Cabinet and in some cases restore the deleted portions. These are separate from the four core issues being examined by the ministerial committee headed by Pranab Mukherjee.

The adjutant general at present heads the COPOC that also comprises the personnel officers of the Air force and the Navy. Out of the many serious anomalies, the key ones are: the dilution of the definition of the military service pay; the subversion of the definition of rank pay and the fixing of the initial pay scale for Colonels and Brigadiers at a level that is lower than what is due.

The foremost issue is of the rank pay that will result in a lesser hike in waoges of all officers. The adjutant general has pointed out that the Fourth Pay Commission onward the rank pay is counted part of the basic pay. This is the government policy to club the two increases, thus affecting the quantum of house rent allowance, travelling allowance and DA. Under new orders, the MoD has delinked the rank pay from the basic pay. Hence, effectively reducing the HRA, travelling allowances and DA for each officer.

In case of the military service pay (MSP), the Sixth Pay Commission explains it as "compensation for difficulties specific to military life". The MoD in its latest orders to implement the pay commission report refers it to as a type of hardship allowance to "security forces" in forward areas. The personnel officers have questioned as to why the definition of the MSP has not been adopted from the pay commission itself.

Furthermore, on the MSP, the pay commission says that "in case of employees drawing the same grade pay, the priority (for status) should be on the total emoluments, including non-practising allowance for doctors and the MSP for forces".

The personnel chiefs have pointed out that the MoD has said the MSP shall not be linked to status and rank.

The initial pay fixation for Colonels and Brigadiers was to be done as per scale "S-25" of the pay commission. Under the new instructions, the Colonels and Brigadiers have been given scale "S-24" that is applicable to a grade that is lower in the civil ranks. This means the initial pay of a Colonel will be reduced by Rs 1,300 while a Brigadier will lose Rs 3,000.

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Are Your Employees Good Enough?

An old saying goes 'that in good times anybody can make money; in bad times only the best can.' In down times, even more than boom times, employees become the critical edge. And in good times or bad, your employees determine your profitability. Are they good enough?
If your company's numbers aren't where they should be, what can you do?

The first steps include a close examination of your business model and infrastructure. After looking there, you have to look to your people. Can they do the job? What value are they bringing to the company?

Make an employee list and rate each employee's value to your company. Keep it simple. One way is the ABC rating: A for keeper employees, B for those with 'maybe' or 'twilight zone' and C for those that need to be cycled out. Failure to do this puts your equity on a spinning roulette wheel, meaning your company must rely on outside miracles --like a rapid turnaround in the national economy -- for your profit/loss statements to improve. Las Vegas, anyone?

One obvious key to finding out about your employees is to rate them on measurable productivity tasks, such as how many units they produce an hour or their monthly sales total. Also think about the intangibles: are they a team player, do they help company morale, do they get along with co-workers, are they a fit with the company culture? By using these different viewpoints, you will get a more complete picture of your employee's true contribution.

At the same time, take a good hard look at where your company will be going in one year and in five years. Look at what form of company structure and organization will be necessary to meet your future needs. What will your future customer want? What kinds of employees will be needed to service your future customers?

When you get this picture clearly in place, and after you have evaluated all of your employees, you can make an extrapolation as to which employees will bring value in the future. You may be surprised at which employees may not have a spot in your future company. That's because an employee of today may not be appropriate tomorrow. Once you have determined you have inappropriate employees, you have to recruit new ones.

This isn't rocket science. The corrective actions you take depend on your company's specific circumstances. But from a global standpoint, you can either maintain the status quo including poor results, or change. The real problem is the amount of hard work required to make positive change happen. The temptation to go back to the 'bad numbers' comfort zone is so strong, only the most driven owners will be willing to pay the price required to get the numbers to work.

One of the most important questions your company must ask is: are your employees good enough?

Next time we will look at what you can do about it.




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