OTA - Over Time Allowance - Workshops and Otherthan Workshops

  

OTA - Over Time Allowance - Other than Workshops

• What is the Over Time Allowance  - When the staff is required to work extra hours they will be compensated by payment of Over Time Allowance. 

 

• OTA stands for Over Time Allowance 

 

• The ordinary rate of pay means Basic Pay + DA

 

• The ordinary rate of pay means Basic Pay + DA + 30% of basic pay in the case of Running Staff.

                               OT Work  - No of times of Ordinary Rate of Pay 

Over Time Work done	No of times of Ordinary Rate of Pay
Between the limits of Roster Hours & the Statutory limit	1 ½ times
Beyond the Statutory limit	2 times

 

OTA - Principles of Averaging - Applicable to: 

1. Running Staff 

2. Operating Staff 

3. Shift workers 

4. Workers whose work is connected with the work of the above 3 categories  

 

Principles of Averaging:  

Categories / Averaging	Not applicable	1 week	2 weeks
	Office clerks Erstwhile Group D staff in Offices (excluding Station & Shed staff)  Trackmen (Eng. Dept)  Works staff (Eng. Dept)  Store staff (excluding Store van clerks)	Other Essentially Intermittent	Intensive  Continuous Essentially Intermittent (Gateman, Caretakers, Saloon Attendants etc)

• Rest Days - OTA not eligible 

 

• Rest Days - Beyond Roster hours - OTA is eligible.  

 

• For foregoing the Rest, they are eligible for CR (Compensatory Rest)  

 

• The hourly rate of OTA will be worked out on the basis of roster hours over the relevant averaging period as under: 

Hourly rate of pay for staff governed by Averaging Principal =	Period of averaging No. of roster hours of work in the averaging period	X	1/30 of the monthly ordinary rate of pay
Hourly rate of pay for those not governed by Averaging Principal =	1 No. of daily roster hours of work	X	1/30 of the monthly ordinary rate of pay

  

OTA - Over Time Allowance - Workshops  

• Sources: 1. Chapter 3 of Rolling Stock Code (Paras 325 to 329)  2. Section 59 of the Factories Act, 1948 

 

• OTA stands for Over Time Allowance

 

• Avoid OT: Ensure the Outturn, by Long-term planning and day-to-day activity planning in Workshops.   

 

• OT booked - Very exceptional and urgent circumstances only. That too after exploring the possibility of rescheduling jobs that are urgent ahead of those not so urgent.  

 

• Workers in OT - Should also “Punch in and Punch out” in the GA system (Gate Attendance system) 

 

• No OT - Sections where Incentive schemes exist 

 

• Prior Sanction of CWM (Chief Works Manager) is required to book OT 

 

• OT Requisition - M 326 - Two copies.  One copy to Time Office.  Second copy to Accounts office. 

 

• The number of OT hours booked with reasons - Put up to HOD/PHOD at Hqrs for approval.  

 

• OT worked in One week should not be counted against ‘Short’ time worked in another week.  

 

• OT Booking - under the supervision of not less than JE (Junior Engineer)  

 

• OT Booking - Not for less than Half an Hour. 

• OT Calculation -  Daily basis or Weekly basis 

• OTA - 2 times the Ordinary Rate of Wages 

 

• OTA - Single Rate - For staff sent out from the Workshop on duty.  Since DA (Daily Allowance) and OTA are given for different set of conditions, both these types of payment should be made provided the conditions prescribed are satisfied in each case  

• Ordinary Rate of Wages:  

Includes: 1. Wages 2. DA 3. HRA 4. Cash equivalent of the benefits i.e., concessional sale to workers of food grains & other articles 

  

Excludes: 1. Bonus

 

• OT eligible -  1. More than 9 hours in a day   2. More than 48 hours in a week.  

 

• OTA - Supervisory staff eligible  

• OT Calculation - Rounding Off 

• Less than 30 minutes - ignored 

• 30 minutes to 60 minutes - counted as an Hour.  

 

• OTA - No of hours worked beyond shop hours x 1/208th of Pay + DA  

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Outsourcing - Workshop Accounts

 

Outsourcing - Workshop Accounts  

• Source: Rolling Stock Code 2022 -11th chapter - Capacity Optimization and Product Development 

 

Background: 

 

• In this dynamic world, new products emerge and old ones disappeared.  

 

• Demand shifts from one product to another. 

 

• Innovation alters methods of production and so on.  (Examples is Vande Bharat Trainsets/DPRS- Distributed Power Rolling Stock) 

 

• However to meet such rapid changes in technology and to meet the wide changes in the product matrix or quantum of Outturn, out age old Production Units and Workshops (3 to 4 decades) are not ready. 

 

• Moreover such changes are notified only during the year in question and not having sufficient time for advance planning. 

• So it is necessary to create flexible structures with complete freedom to adopt strategies like outsourcing, staff multi-tasking, multi-skilling, flexible deployment of manpower amongst different shops within the PU/Workshop to match capacity with demand etc. 

 

• In PUs/Workshops, final assembly and production of certain critical sub-assemblies and components has to be done in-house. 

So that, non-critical jobs can be outsourced and the staff that may be rendered excess in these shops to be re-deployed in assembly and critical items of work.  

Need to Outsource: Where the outsourcing the work to other agencies become inescapable under circumstances such as: 

1. No possibility of getting the work in other Railway Workshops with known capacity & capability for the Product. 

2. Sudden spurt in the requirement of components/sub-assemblies far beyond the capacity of the shops. 

3. Reduction of staff in Non Core shops (due to shifting to Core shops) 

4. Introduction of new mateial/technology for which skills/capacity/equipmet may not be available within the PU/Workshop. 

5. Economy in Cost due to large scale of production with the supplier. 

6. Short-term or One time jobs - For which permanent capacity cannot be feasible. 

7. Requiring heavy infrastructure which may not commensurate with the quantity required by Railways.  

Under the above circumstances, the Shopin-charge should decide to opt for Outsourcing.  

• Outsourcing - Two types  

1. Outsourcing to Units outside the Railway Workshop  

 

2.  Outsourcing for Works within the Railway Workshop premises

Outsourcing to Units Outside the Railway Workshop

• Approval of the PU/Workshop In-charge  

 

• Finance Concurrence required.  

 

• Certain excluded items - finalized by Zonal Railways only with Finance concurrence. 

 

• Pricing: In-house manufacturing cost minus  over heads plus overheads at commercial rates  for cost comparison purpose.  

Outsourcing for works within the Railway Workshop premises 

 

• In case of certain assemblies, sub-assemblies and critical items and their testing. (because quality is important) 

• Control of quality of workmanshipi through stage inspections. 

 

• Specilized large-scale infrastructure needed for the manufacturing process not available with vendors. 

 

• The costly specilized equipment not useful for other than Railway works. In such cases, it will inflate the vendors bid price which will ultimately get loaded on the cost of production. 

 

• Logistiical problems and disproportionate transportation costs.  

Safeguards to avoid contract disputes - If Work is outsourced within the Railway Premises: 

1. Separation: Work area for the Contractor and Railways 

2. Defining Shared machine and equipment time available to the Contractor to avoid mix up. 

3. Raw materials and consumables to be supplied by the Railways - Stock should be kept separately and accounted for. 

4. Consumption norms for raw materials and consumables for eachh item issued to the Contractor by the Railways 

5. Agreement - signed by the Contractor and Shop In-charge 

6. Accounted and documented of Electric power, water and utilities incl: tools provided by  Railways 

7. Control of quality of workmanship by Inspection 

8. Accountal of Scrap / left over material to be returned by the Contractor and kept separate 

9. Industrial safety standards as prevailing in the shop – equally applies to the workers engaged by the Contractor. 

10. Compliance of all legal provisions. 

 

Check List

 

 

Check list for precautions to be taken before contract is awarded for outsourcing work inside the workshop with outside labour.
Sl.  No.	Precaution to be taken	Yes	No
1	Separate work area for Contractor
2	Requirement of Railway supplied consumables – like special electrodes, water, electricity etc. been computed and listed
3	Material requirement for outsourced job been separately worked out
4	Machine hours for use of Railway equipment for the job been computed and listed
5	Payment to contract workers is being made through bank, in a transparent manner or not
6	Separate ID for workers of Contractor
7	Accountal of contractor supplied items, raw materials and consumables
8	Proper Railways supervision on the work.
9	Complying of all legal provisions
Note: The answer to all the items is to be ‘yes’,  Before outsourcing Contract is awarded.

 

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