Punjab’s government employees are writing an old electoral script on the eve of the Assembly elections, demanding the release of all Dearness Allowance (DA) arrears, even as the government persists with the idea of an honourable compromise that works for both sides.At the heart of the confrontation are the employees’ demands for payment of 18 per cent pending DA arrears, restoration of the Old Pension Scheme, withdrawal of the July 17, 2020, decision taken by the previous Congress government imposing central pay scales on all prospective employees and withdrawal of the January 15, 2015, letter that paved the way for giving basic pay to employees during their three-year probation period.The Punjab government argues that the different state pay commissions, created by previous governments, have already given employees a much higher pay grade than what even central government employees receive.Not only that, the government has been reiterating that it inherited the pending DA arrears from the previous Congress government and, before that, the SAD-BJP governments.The state government also argues that DA parity with the Centre cannot be granted because the pay scales of Punjab government employees are already much higher than those of central government employees.The government argues that the take-home salary of a Punjab government clerk with 42 per cent DA was Rs 54,812 per month, while the salary of a central government clerk with 60 per cent DA was Rs 36,962. If the DA were increased to 60 per cent, a clerk’s salary in Punjab would be Rs 61,760, which would be Rs 24,800 more than that of a central government clerk.“Despite this, we have been disbursing the arrears as per the approved liquidation plan. We have already cleared more than Rs 4,500 crore in dues. We are willing to talk to employees and fulfil our commitment, but it cannot be done in one go. The government has to work judiciously for the benefit of all segments,” says Finance Minister Harpal Singh Cheema, adding that employees too should be reasonable in their demands.He told The Tribune that if the DA of all employees were to be enhanced to 60 per cent, it would create an additional annual liability of Rs 6,500 crore.With around 3.50 lakh employees and nearly four lakh pensioners backing the agitation, the sheer size of the constituency has turned the dispute into a potential electoral liability for the Mann government.That is because Punjab has seen employee agitations become politically consequential before almost every Assembly election over the past two decades. This time, moreover, different sections of the state’s electorate are beginning to converge on a common platform.Apart from employees, farmer unions have also been drawn in.“A majority of employees are from farmer families. Obviously, the unions feel for us and have extended their support. After two days of protests outside the residences of AAP ministers, the two segments will now jointly protest outside the residences of ruling party MLAs this coming weekend,” said Sukhchain Khera, convenor of the Sanjha Mulazim Manch.The employee agitation gathered momentum after the Punjab and Haryana High Court, on August 3, directed the state to clear pending DA dues within 15 days. The liability is estimated at Rs 14,191 crore. The government has since filed an SLP before the Supreme Court, arguing that clearing the arrears within 15 days would be difficult.First, the outgo was equal to the government’s three-month salary and pension bill—a substantial sum of money—and, secondly, it would violate proper budgetary and constitutional withdrawal procedures.The agitating employees pulled back their protest after the state Chief Secretary’s intervention last week, though initially it seemed that both sides were headed for a face-off. It all began when employees staged a massive rally on August 7 and attempted to march towards the Punjab Vidhan Sabha. On August 27, they went on a “Maha Hartal”, proceeding on mass casual leave.At first, the government took a tough stand against the agitating employees by responding with show-cause notices. Chief Minister Bhagwant Mann even said that dialogue could not take place while employees remained in protest mode.The unions retaliated by threatening to campaign against the AAP in the coming elections. The government then tried another tack—proposing an enhancement of DA for a section of employees recruited after July 20, 2020. But the move failed to satisfy the unions because the larger issue—the accumulated DA arrears of the pre-2020 workforce—remained unresolved.The standoff intensified again on September 8, when employees launched a statewide pen-down strike. Again, the government initially threatened disciplinary action and reiterated the “no work, no pay” principle, but eventually refrained from punitive action.The political leadership has since repeatedly maintained that it is willing to talk to employees. AAP state president Aman Arora has said that their doors remain open. Arora recently told The Tribune, “The employees and pensioners are an integral part of the government’s family, and we are open to resolving their just demands through discussions.”The Mann government’s reluctance to concede is rooted in economics as much as politics. The DA liability alone is enormous. Conceding the other demands would have a cascading financial impact. The government would have to contend with the fiscal implications of restoring the OPS, removing pay anomalies, restoring assured career progression benefits, and regularising contractual and outsourced workers.Certainly, AAP does not want to send out a message that sustained street pressure can force the government to concede. It is fully aware that any such settlement may trigger similar demands from other organised groups, as farmers, teachers, contractual workers and several other sections are already agitating.Punjab’s electoral history shows that governments rarely escape employee agitations when elections are approaching. Here’s a lowdown:Before the 2012 elections, the SAD-BJP government faced sustained protests over pay anomalies arising out of the Fifth Punjab Pay Commission. The then government went in for last-minute concessions, saving the day for the alliance.Ahead of the 2017 polls, the SAD-BJP regime faced protests by employees, teachers and NHM workers and contractual workers. It hurriedly passed a law to regularise services of contractual, adhoc and work charged employees in 2016, though it came too late to prevent an anti-incumbency wave.In 2021, just before the polls, employees blocked roads and followed then Chief Minister Charanjit Singh Channi to his residence and constituency. The government responded with the 2.59 pay multiplication factor and a regularisation law for 36,000 contractual workers.