NOTES 55 private sectors ? The Pay Commission should be structured on a federal basis and its recommendations be made applicable to all the states and union territories in a uniform manner. A large number of unions of employees in different sectors agitate for parity with their counterparts in the Central Government in matters of scales of pay, dearness allowance and other conditions of employment. The recent strike of school teachers in Haryana or of college teachers in various parts of the country for the acceptance of UGC scales are cases in point. Whenever the Central Government improves the pay scales of its employees, it sets in motion a chain reaction all over the country. It is, therefore, very desirable that a federal pay commission should review the pay structure of both state and Central Government employees and recommend uniform scales all over India. The Pay Commission has deliberately rejected the principle of pay co-ordination between private and public sectors in order not to start a competitive wage escalation. However, it hopes the government will take steps 10 implement a broad-based income and wage policy for the country. The Commission has accepted the view that the wage policy enunciated for 4 million Central Government employees has to be extended to the private sector as well, but no concrete measures have been suggested for the purpose. A much bigger number of workers seek employment in the private sector, and,, in this sector the need for getting the scales implemented is paramount. By the very fact that the Commission's proposals will be implemented in the public sector, conditions of disequilibrium are bound to be created in the labour market and the tendency of labour to shift from private to public sectors will grow. But in a labour-surplus economy where a high degree of unemployment prevails, the private sector does not find much difficulty in recruiting from the "reserve army" of unemployed. It is the existence of this situation that makes the problem more difficult of solution. RUDDAR DATT