Indian National Bank Employees’ Federation
(A Banking Wing of INTUC)
Dr. G. Sanjeeva Reddy – M.P.
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Subhash S. Sawant
INBEF/GS/SSS/2010/26 April 27, 2010
The Chairman Indian Banker’s Association World Trade Centre Complex, Centre 1, 6th floor, Cuffe Parade,Mumbai 400 005.
Reg: Pension cost sharing amongst existing employees.
Ref: MOU dated 25th February, 2008 and Record Note of the Discussions held on 27th Nov. 2009 Between IBA and UFBU.
This has reference to your letter No.HR&IR/MV/76/90/155 dated 21st April 2010 inviting us to sign the 9th Bipartite settlement on 27-04-2010. We would like to draw your attention to the discussions held on 16th April, 2010 in consonance to the modalities signed on 27-11-2009 that interalia stipulates - “30% (Rs.1800.54 crores) by all the employees who are in service of the banks as on the date of the Memorandum of Settlement/Joint Note to be signed between the parties in this regard. This amount will be recovered from the arrears payable on wage revision.”, you had informed us that all employees who are in service shall have to pay 1.6 times of the revised pay as on 01-11-2007.
To our utter surprise just on the eve of the signing agreement for which the entire workforce serving in the industry are eagerly awaiting, you have violated from the understanding reached earlier and now insisting upon us to agree that only the CPF optees shall have to bear the entire burden of 1800.54 crores by contributing 2.8 times of their pay as on 01-11-2007 in lieu of 1.6 times that was agreed upon.
This is a major deviation from the earlier understanding as our organisation could have submitted alternate proposal on 27-11-2009 for the benefit of the employees to which we have been deprived of.
Further since 01-04-2008 quite a large number of employees have retired from service for whom you have decided to recover 56% in addition to the Bank’s contribution that they will be surrendering for opting pension. This will definitely jeopardize the interest of both the serving and retired employees as the very basis of actuarists calculation will undergo a change.
In view of the above we would like to submit that we are signing the 9th Bipartite settlement under protest without prejudice to our rights to maintain the sanctity of the understanding reached earlier.
Subhash S Sawant