Settlement of the demand of the Staff Side of Ministry of Defence to allot salary expenditure separately to the Ordnance Factories and to delink the same from the cost of OFB Products
No.NC-JCM-2019/Def
October 16, 2019
The Secretary (DP)
Department of Defence Production
South Block,
New Delhi — 110 001.
Subject : Settlement of the demand of the Staff Side of Ministry of Defence to allot salary expenditure separately to the Ordnance Factories and to delink the same from the cost of OFB Products.
Reference : Minutes of the 47th Meeting of the National Council (JCM) chaired by the Cabinet Secretary held on 13.04.2019 circulated vide DOP&T OM No. 3/1/2019-JCA dated 13th June, 2019.
Sir,
In the 47th Meeting of the National Council (JCM) held under the Chairmanship of Cabinet Secretary held on 13.04.2019, the Staff Side Members of the Ministry of Defence raised two important issues pertaining to Defence Civilian Employees. One of the issue was that during the Strike negotiations with the recognized Federations Department of Defence Production has agreed to consider the demand of the Staff Side to allot salary expenditure separately to the Ordnance Factories and to delink the same and various overheads from the cost of the product. The Secretary / Defence Production who attended the meeting informed the house that the issue is under active consideration of the Department of Defence Production and the same would be settled at the earliest.
It has now been brought to the notice of the undersigned that no favourable decision yet has been taken by the Ministry of Defence on the above demand. It is understood the issue is still pending with the Defence Finance Division of the MoD. Due to this the Army and other Forces are reluctant to place orders / workload to the Ordnance Factories on the plea that the cost of the product are more. Once the salary budget and various overheads like NPS Contribution, Pension Contribution, Expenditure on Defence Accounts Department, Hospitals, Residential Colonies etc. are delinked from the cost, the Army have assured to the Federations that they will be in a position to place indent to the Ordnance Factories including those products which are declared as “Non-Core”.
In view of the above position in the interest of the future of Ordnance Factories and its employees and as assured to the Staff Side of the Ministry of Defence and also in the National Council (JCM) it is requested that a favourable decision on this very genuine issue may please be taken at the earliest. The decision taken in this regard may please be informed to this Office.
Thanking you,
Yours faithfully,
Shiva Gopal Mishra
Secretary
Source : Confedreation
