those allowances/privilieges that central govt. Employees get are difficult to wish away as removing those would put them on a disadvantage as salary wise while attracting talent. Currently a central govt. Servant (group A) after probabtion earns about 42k Inr. The same figure for PSU like power grid is above 1 lacs.
A better course of action is to out source non railway related works to private companies through open tendering and significantly reducing employees through automation wherever possible. But unions in IR willl never, ever allow such rational steps to be taken.