The deadlock between the Punjab government and state employees over Dearness Allowance (DA) has been resolved following successful discussions in Chandigarh. After a crucial meeting with Chief Secretary KAP Sinha, employee unions officially decided to call off their planned protest and resume normal duties.
Administrative Talks and Withdrawal of Notices
During the meeting between union representatives and Chief Secretary KAP Sinha, key employee demands were discussed in detail. The administration provided a firm assurance that show-cause notices issued to protesting workers on August 27 would be formally withdrawn. Additionally, both sides agreed that a high-level meeting between union delegates and the Chief Minister would be convened soon to evaluate pending matters.
Cancellation of Extended Mass Leave
Union leaders had initially announced a single-day strike scheduled for September 8. Facing an unresolved dispute, they had resolved to escalate the agitation by taking mass leave and halting public operations through September 11. Following the positive outcome of talks with the Chief Secretary, the entire agitation plan has been cancelled.
DA Hike Context and Legal Proceedings
The state had previously announced a DA increase from 42% to 60%, granting roughly 85 thousand public sector employees allowance parity with central government staff. Meanwhile, litigation regarding pending DA arrears remained before the High Court, where judicial proceedings kept pressure on the administration. The agreement reached in the latest meeting brings operational stability back to state departments across Punjab.
