Strike called off after CM promises decision on OPS in budget session

State government employees in Maharashtra have withdrawn their indefinite strike after Chief Minister Eknath Shinde promised to discuss the possibility of reviving the old pension scheme (OPS) in the budget session. The state government has received a report on the feasibility of reviving OPS and has directed the finance and general administration departments to study the report and discuss it with union leaders. The CM stated that the final decision will be taken in line with the report and discussions with stakeholders. The committee has recommended tweaking the existing scheme to extend pension benefits.

After chief minister Eknath Shinde promised to take a call on the old pension scheme (OPS) in the budget session to be held in February-March, state government employees withdrew their indefinite strike which began on Thursday. Of the over 1.6 million government employees, half have joined service after 2005 and thus get benefits under the new pension scheme (NPS), which is not as lucrative as OPS.

Thane, India - December,14, 2023: From Thursday(Today), government employees have gone on an indefinite strike demanding implementation of old pension Scheme at thane collector office in thane ,in Thane , in Mumbai, India, on, Thursday, December ,14, 2023. ( Praful Gangurde / HT Photo )

The state government has received the report of the committee headed by retired IAS officer Subodh Kumar on the feasibility of the revival of OPS. It has directed the secretaries of the finance and general administration departments to study the report and discuss it with union leaders for smooth implementation of the scheme. The three-member committee was constituted in March this year after government employees went on strike, demanding restoration of the OPS which was discontinued in 2005.

Shinde, who held a meeting with the employees’ unions on Wednesday and assured them of “social and financial security”, made the announcement in the assembly on Thursday with an appeal to the employees to withdraw their strike. “The final decision will be taken in the budget session and it will be in accordance with the report submitted by the Subodh Kumar committee and the discussion on it with stakeholders,” he said in his statement.

The CM further stated that the state government had taken five important decisions. “One of these is that the employees whose recruitment process began through the advertisement issued before May 31, 2005, the date the OPS was scrapped, will be included in the OPS,” he said. “The decision will soon be taken by the cabinet, and it will benefit over 26,000 employees and officers.”

The Subodh Kumar committee has reportedly recommended tweaking the existing scheme to extend pension benefits that are somewhere between the OPS and the NPS. The committee has reportedly stated that the revival of the OPS is not possible, as this will put a tremendous burden on the state exchequer.

CM Shinde said on Thursday that the recommendations of the committee needed thorough deliberation and study before implementation. Two officers have been appointed to study the report and will discuss the recommendations with union leaders to arrive at a consensus. The officers will then submit their report to the government for its implementation.

Most of the 1.6 million government and semi-government employees represented by various unions participated in the strike on Thursday. “After the satisfactory assurance during our meeting with the CM on Wednesday, followed by his statement in the assembly, we have deferred our protest,” said Milind Sardeshmukh, president, Brihanmumbai State Government Employees Union. “Out of 18 demands, major ones have been accepted by the CM in principle. The strike will be relaunched in the budget session if the government fails to keep its word.”

Although the state government has promised to implement the new form of the pension scheme in March, it is likely to be deferred till July-August and announced just ahead of the assembly polls to reap political benefits. In the last winter session, deputy chief minister Devendra Fadnavis had announced that the implementation of OPS would not be possible, as it would put a huge burden on the state exchequer. However, he changed his stand after the OPS became a political issue and the ruling parties fared badly in the legislative council elections early this year.