Friday, April 30, 2010

NBEF signs the negotiation (9th BPS for Banks) under protest,

Indian National Bank Employees’ Federation
(A Banking Wing of INTUC)
Dr. G. Sanjeeva Reddy – M.P.

President

 

 
            Subhash S. Sawant
            General Secretary
INBEF/GS/SSS/2010/26                                                                           April 27, 2010

To
The Chairman                                                                                                                           Indian Banker’s Association                                                                                                     World Trade Centre Complex,                                                                                                 Centre 1, 6th floor,                                                                                                                    Cuffe Parade,Mumbai 400 005.
 Dear Sir,
 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.
 Thanking you,
sawantsign
Yours sincerely,
 
 Subhash S Sawant
General Secretary

Wednesday, April 28, 2010

9th BPS signed : Hefty pay hike for bank staff


Bankers will have fatter wallets this year.
Almost 5 lakh bank employees and 2.5 lakh officers will get a pay increase of 17.5 per cent after the unions signed their ninth bipartite wage revision agreement today with the Indian Banks’ Association (IBA), the bank employer’s forum.
The wage hike will be effective from November 1, 2007.
The accord will raise the wage bill of the banking sector by over Rs 5,200 crore, annually.
In public sector banks, the additional outgo will be Rs 4,816 crore. For private and foreign banks, it will amount to Rs 400 crore.
The wage bill of nationalised banks stood at Rs 27,520 crore as on March 31, 2007.
The settlement will cover 26 nationalised banks, 12 private sector banks and eight foreign banks.
The IBA, six workmen unions and four officers’ associations signed the agreement that will be valid for five years.
A statement issued by the IBA in the evening said the basic pay of officers at the entry level will be between Rs 14,500 and Rs 52,000 per month (compared with a floor of Rs 10,000, earlier).
The basic pay for clerical staff will range between Rs 6,200 and Rs 23,900. Subordinate staff will get between Rs 5,500 and Rs 13,800 per month.
Dearness allowance will be payable for every rise or fall of 4 points over 2836 points in the quarterly average of All India Average Working Class Consumer Price Index (General) Base 1960 = 100 at 0.15 per cent of pay.
Besides the wage hike, it was decided that employees and officers covered by the provident fund scheme would be given the option to join the pension scheme. This means that employees and officers who did not opt for pension (choosing instead to be covered by a provident fund) when it was offered in 1993 could switch over to the pension plan.
Reports say that in such an event, those who have retired will have to surrender over 50 per cent of PF money, including interest.
The IBA added that a defined contributory retirement benefit scheme as governed by the contributory pension scheme introduced for employees of the central government with effect from January 2004 will be introduced for workmen/officers joining the services of banks on or after April 1 this year.
A statement from the All India Bank Employees Association says that under the settlement close to 2.60 lakh employees and officers who are now covered by contributory provident fund will get a chance to join the pension scheme which is a demand of the unions. More than 50,000 retirees will also get the option to join the pension scheme.
Bank unions welcomed the wage agreement inked today, though the INTUC-affiliated Indian National Bank Employees’ Federation said it signed the pact under protest.
“This is one of the greatest achievements...it is the best deal employees can get,” said G D Nadaf, the general secretary of the All India Bank Officers Confederation. 

Source : The Telegraph. 

Press Release from IBA :
 PRESS RELEASE

HIGHLIGHTS OF SETTLEMENTS DATED 27.4.2010 SIGNED WITH WORKMEN UNIONS & JOINT NOTE DATED 27.4.2010 SIGNED WITH OFFICERS’ ASSOCIATION ON WAGE/SALARY REVISION AND ONE MORE OPTION OF PENSION

Today IBA has signed industry wide wage agreement with 6 Workmen unions and 4 Officers’ Associations.  The salient features of the Settlement are as under :
 
Ø      Total no. of employees covered under the Settlement – 5 lakhs workmen employees and 2.5 lakh officers working in 26 Public Sector Banks, 12 Old Private Sector Banks and 8 Foreign Banks.
 
Ø      The wage revision is effective from 1.11.2007.

Ø      Total wage increase of Rs.4816 crores representing 17.5% increase on the establishment expenses of Rs.27520 crores as on 31.3.2007.

Ø      The pay scales of Officers are Rs.14500-Rs.52000.
Ø      The pay scales for Clerical staff : Rs.6200-23900
Ø      The pay scales for subordinate staff : Rs.5500-13800
Ø      Total wage increase for officers and award staff is Rs.4816 crores.
Ø      DA is payable for every rise or fall of 4 points over 2836 points in the quarterly average of All India Average Working Class Consumer Price Index (General) Base 1960 = 100 at 0.15% of Pay.
 
Ø      Rationalisation of Special Pay posts - All the existing special pay posts are rationalized and only three categories will remain – (i) Single Window Operator – A and Single Window Operator-B; (ii) Head Cashier and (iii) Special Assistant.
 
Ø      All part-time employees (lump sum) will be brought to 1/3rd scale wages w.e.f. 01.05.2010.
 
Ø      Pension: Another option of pension will be given to all existing employees who did not opt earlier and also who have retired/died after pension regulations 1995/96; A defined contributory retirement benefit scheme as governed by the “contributory pension scheme introduced for employees of Central Government with effect from 1.1.2004”  will be introduced  for workmen/officers joining the services of banks on or after 1.4.2010.  There shall be no separate contributory provident fund in respect of these workmen/officers.
 
Top

Tuesday, April 27, 2010

Bank 9th Bipartite is all set to be signed today [27th April] : option for pension with 17.5% hike in salary.

AS PER AIBOA , THE AGREEMENT WILL BE SIGNED AT 5 P.M. TODAY. WAIT FOR MORE DETAILS.
Earlier news :
Nearly 3.20 lakh public sector bankers are about to get another opportunity to opt for a monthly pension, which they had silently craved for years. The group includes some 60,000-odd retired bankers.

Finance Minister Pranab Mukherjee, it is learnt, is open to extending such pension benefit with retrospective effect from November 2009. A final agreement between the Indian Banks’ Association (IBA) and bank unions is expected to be signed on April 27, when they meet to finalise the distribution of wage increase under the ninth bipartite.

“We are likely to clinch the deal tomorrow,” All India Bank Employees’ Association president Rajen Nagar told ET.
This chunk of bankers did not opt for pension when it was offered to them first time in 1993. They opted for provident fund, instead.

The United Forum of Bank Unions and the bank management’s association IBA have decided that retired bankers willing to switch over to the pension plan will have to surrender 56% of the PF, plus the interest on it.

They have also mutually decided that existing bank employees will have to share 30% of the additional pension burden while banks will shoulder the balance. Additional pension burden on account of existing employees is pegged at Rs 6,000 crore.

“Around 50% of bank employees had opted for monthly pension and it has proved to be a better choice. All provident fund optees are now expected to go for pension,” a senior banker said.

Public sector bank employees in general are entitled to only two retirement benefits — pension or provident fund and gratuity. There is an exception though: SBI employees get three superannuating benefits provident fund, gratuity and monthly pension.

The negotiating parties are scheduled to meet on Tuesday to finalise the micro details of the ninth bipartite wage settlement covering over 7 lakh bank employees in the public sector realm. They are expected to complete the formalities related to the pension issue.

The negotiating parties have agreed on a 17.5% wage hike amounting to an increase of Rs 2,577 crore. Nearly 2.44 lakh officers and 4.68 lakh workmen employees will benefit from the wage revision, which is due from November 2007.

As per the distribution of the enhanced kitty goes, basic pay for officers at the entry level is likely to be Rs 14,500 a month compared with Rs 10,000 under the eight bipartite.

For clerical staffers who are graduates, the basic pay is likely to be Rs 7,000 a month from Rs 4,840 earlier. For subordinate staffs, it will be Rs 5,500 per month, against Rs 4,060. 

Source : The Economic Times.

Friday, April 23, 2010

Bank Pay : 9th Bipartite likely to be signed on 27th April in Mumbai.


Bank unions and the Indian Banks' Association (IBA) are likely to ink the final settlement of the industry-level wage revision on April 27 in Mumbai. The wage revision for the banking industry is due from November 2007.
The decks have been cleared for the final settlement after a delegation of the United Forum of Bank Unions (UFBU), led by its convenor Mr C. H.Venkatachalam, met the Union Finance Minister, Mr Pranab Mukherjee, at North Block on Wednesday, sources privy to the developments said.
In November 2009, the UFBU and IBA had agreed for a 17.5 per cent increase in wages under the proposed ninth bipartite settlement, which would span five years until October 2012. It was also agreed to give both existing as well as certain retired employees another chance to opt for pension benefits.
As many as 7.75 lakh employees from 26 public sector, 12 private and eight foreign banks would benefit from the final wage settlement.
The annual wage bill for the public sector banks, including the State Bank of India Group, was Rs 27,500 crore for the year ended March 31, 2007. This ninth bipartite settlement would lead to an additional annual outgo of Rs 4,816 crore for the public sector banks and Rs 400 crore for private and foreign banks.
About 2.6 lakh existing (non SBI) employees are to get another chance to switch to pension from Provident Fund as a retirement benefit. Also, about 60,000 retired employees, who are PF optees, will now be given another chance to switch to pension benefits.
Public sector bank employees can currently avail themselves of only two retirement benefits — pension or provident fund and gratuity. In the eighth bipartite wage settlement, the bank unions had settled for 13.25 per cent hike.

Source : The Hindu Business Line. 

View the salary comparison with Central Govt. counterparts published in a Hindi Daily.

AIBOC issued its circular No. 50 on meeting with Hon'ble Finance Minister, Govt. of India. We are reproducing the same here for our readers.

CIRCULAR NO.50                                                                   22.04.2010
TO ALL AFFILIATES/MEMBERS:
MEETING WITH HON’BLE FINANCE MINISTER, GOVERNMENT OF INDIA

Members are aware that the date of effect of Pension to CPF Optees was not resolved at IBA level, hence, UFBU requested for intervention of Hon’ble Minister of Finance, Govt. of India.  Accordingly, leaders of UFBU met Hon’ble Finance Minister on 21.04.2010 at New Delhi and forcefully presented the views of the UFBU on the effective date of Pension to CPF optees, from 1st April 2008, as additional cost required for 2nd Option on Pension was assessed by the common Actuaries based on the details made available as on 31.03.2008. 

But the Hon’ble Finance Minister did not agree with the argument as IBA was of the view that, Pension has to be effective from the date of signing the final settlement on Pension. However, he
suggested that, effective date may be from the date of signing the MoU i.e. 27th November, 2009.

The UFBU will meet on 26th April, 2010 at Mumbai, to take a final view of the issue connected with pension, new pension scheme, outsourcing etc.

The IBA has called for a meeting with the UFBU on 27th April, 2010, at Mumbai, with a view to sign the final settlement on Pension and Salary revision.  We shall advise the further developments later.

With warm greetings,
Sd/-
(G.D. NADAF)
GENERAL SECRETARY

Manipur Pay Battle : No fund to pay arrears, says Ibobi

Manipur Chief Minister O Ibobi Singh has reiterated that his government has no capacity to include arrears while recommending the 6th Pay Commission in the State due to lack of adequate financial resources.
Briefing the media soon after a State Cabinet meeting here on Thursday afternoon, Ibobi said that the Cabinet minutely discussed the demands of the striking employees with inputs from financial experts and thereafter decided to exclude the arrears. “We are not reluctant to award the employees’ demand,” he said. “So we once again appeal the employees to rethink and reconsider their steps and withdraw the strike,” he added.
Over 60,000 State government employees under the banner of the Joint Administrative Council of All Manipur Government Employees’ Organisation and All Manipur Trade Union Council are on a cease work strike since January 16 last demanding implementation of the Sixth Pay Commission recommendations in the State should also include payment of arrears.
The Chief Minister further explained that an additional amount of Rs 69.68 crore was required to meet the State’s monthly expenditure of Rs 292.28 crore against the monthly income of Rs 222.61 crore.
JAC Secretary Th Chandramani has, however, said that Chief Minister’s appeal failed to convince the striking employees. “He (Ibobi) has been saying this since the beginning of our strike,” Chandramani said when contacted over phone. “Why is he not ready to sit with us and discuss it (the issue). This hints of some hidden agenda of thegovernment,” he opined. 

Source : The Assam Tribune.

Thursday, April 22, 2010

Bank Pay Hike : F.M. agrees to make pension effective w.e.f. Nov,2009. MOU may be signed on 27th April


 The reports have been coming that UFBU leaders met Honourable Finance Minister on 21/04/2010, who has agreed to make Pension effective from November, 2009.

Further, it is likely that IBA will invite UFBU for signing the MOU on 27/04/2010. UFBU will meet on 26th April to take final decision on different issues.

All India Union Bank Officers' Federation andCentral Bank Officers' Federation has confirmed the news of FM's consent about pension.

Details as per AIBEA version :-


"As discussed on 13th April, 2010, efforts were taken to meet the Finance Minister on the issue of effective date of pension option w.e.f. 1-4-2008 as against IBA proposal of effective date from date of settlement.

Yesterday evening, representatives of UFBU met the Finance Minister in his office in North Block. The following were present from UFBU.

1. C H Venkatachalam, AIBEA
2. S A Kadri, NCBE
3. Harvinder Singh, AIBOC
4. Alok Khare, AIBOA
5. Pradip Biswas, BEFI
6. O P Sharma, INBEF
7. Prem Makkar, INBOC
8. Ashwani Rana, NOBW
9. Sunil Deshpande, NOBO

It was represented to the Finance Minister that since the Actuarial Report was based on the details of 31-3-2008, the pension option settlement should be effective from 1-4-2008, i.e. those who were on service on 1-4-2008 should be treated as existing employees for the sake of the settlement and pension payments on account of the option should be made from 1-4-2008. FM did not agree with our viewpoints. However, he stated that the effective date can be taken as 27-11-2009, i.e. the date on which we had signed the MOU.

IBA-UFBU MEETING on 27-4-2010:

IBA has informed that another round of meeting with the UFBU will be held on 27-4-2010 with a view to signing the final settlement. UFBU will meet at Mumbai on 26th April to take final view of the issues involved including pension cost sharing, issue like outsourcing, etc to pave the way for signing the settlement."

Wednesday, April 21, 2010

Government extends time to visit NER areas on Leave Travel Concession by Air...


F.No. 31011/4/2007-Estt.(A)
Government of India
Ministry of Personnel, Public Grievances and Pensions
(Department of Personnel and Training)
  
New Delhi, dated 20th April, 2010
  
OFFICE MEMORANDUM
  
Subject: CCS (LTC) Rules, 1988 – Relaxation for travel by air to visit NER.
  
              The undersigned is directed to refer to this Department O.M. of even No.dated 2.5.2008 on the subject mentioned above and to say that the relaxation fortravel by air to visit North Eastern Region under CCS (LTC) Rules, 1988 is extended for further two years beyond 1st May. 2010
Smt.Raj Bala Singh
Under SecretarY to the Government of India
View the Order.

DOPT Order(dated 2 May, 2008) indicates...

*Group 'A' and 'B' Officers can travel to NER areas from their nearest posting area...

*Group 'C' and 'D' Employees can travel to NER areas only from Guwahati or Kolkata...

*Conversion of one block of Home Town LTC into LTC for destinations in NER.

  
F.No. 31011/412007-Estt.(A)
Government of India
Ministry of Personnel, Public Grievances and Pensions
(Department of Personnel and Training)
  
New Delhi, dated,2 May, 2008
  
OFFICE MEMORANDUM
  
Subject: CCS (LTC) Rules, 1988 - Relaxation for travel by air to visit NER.
  
               The undersigned is directed to say that in relaxation of CCS (LTC) Rules,1988, the Government

(i) Group A and Group B Central Government employees will be entitled to travel by Air from their place of posting or nearest airport to a city in the NER or nearest airport ..

(ii) Other categories of employees will be entitled to travel by air to a city in the NER from Guwahati or Kolkata.

(iii) All Central Government employees will be allowed conversion of one block of Home Town LTC into LTC for destinations in NER.
have decided to permit Government servants to travel by air to North Eastern Region on LTC as follows:-


  

              2. These orders shall be in operation for a period of two years from the date ofissue of this O.M.
  
              3. Data regarding number of Government employees availing LTC to NER may be maintained.
  
              4. In their application to the staff serving in the Indian Audit and AccountsDepartment, these orders issue after consultation with the Comptroller and AuditorGeneral of India.
(A. K. Chaturvedi)
Under Secretary to the Government of India



Monday, April 19, 2010

BSNL WORKERS’’ STRIKE STARTS FROM 20TH APRIL


 Update on 20/04/2010 : Indefiinite Strike of BSNL employees called off after agreement with Minister.



JAC unanimously decides to go ahead with the Indefinite Strike from 0600 hrs. on 20.04.2010
 
A meeting of the JAC was held today at New Delhi, at 1000 hrs, under the Chairmanship of Com. N.T. Sajwani. Representatives of all the unions and associations of the Non-Executives and Executives participated in the meeting. The meeting reviewed the discussions held with the Hon’ble Minister of Communications and CMD, BSNL on 16.04.2010. After taking all the aspects into consideration, the meeting came to a unanimous decision that the strike shall start as per the schedule. The indefinite stay out strike will start from 0600 hrs on 20.04.2010. All the CHQ Office-bearers as well as Circle, District and Branch Secretaries are requested to make all-out efforts to make the strike 100% successful.



Manipur Pay Hike : First round of talks with JAC likely today

First round of negotiations between the agitating employees and the Ministerial team constituted to iron out differences on the issue of 6th Pay Commission recommendations is likely to begin tomorrow afternoon, even as representatives of the employees are scheduled to meet the Governor on the same issue

According to a senior Minister in the SPF coalition, ahead of the negotiations with the agitating State Government employees, the Ministerial team specifically formed to chalk out means for ending the present administrative crisis, would discuss relevant issues under the chairmanship of Th Debendra.

Th Debendra, who holds the Revenue, Forest, Law and Legislative Affairs portfolios along with Minister members of the team and top ranked officials are supposed to meet before holding talks with the employees' representatives.
 
the senior Minister further said that the meeting between the Ministerial team and Government officials would be followed by a formal invitation to the JAC of AMGEO and AMTUC spearheading the cease-work strike.

The Minister also expressed hope that the proposed talks would end on a positive note that could pave the way for resolving the over three month long agitation.

Meanwhile, welcoming the Government's move of setting up the Ministerial team to hold negotiations with the agitating employees, publicity secretary of the employees' JAC Priyobratta expressed that the employees are keen to perform normal duty rather than waste time by resorting to agitation.

strongly advocating that only through negotiations could all outstanding differences be addressed, he also confided that representatives of Manipur secretariat Services Association, JAC, pensioners and teachers' body would meet the Governor at 11.30 am tomorrow during which a detail account of the employees' demands would be placed before Gurbachan Jagat.

Mention may be made that after Secretariat employees joined the agitation some days back the State administration had been crippled to a significant extent.
 
Source : The Sanghai Express/E-Pao 

Saturday, April 17, 2010

Bank 9th Bipartite : Final position for Officers' Pay Hike.


WAGE TALKS – WHAT HAS EMERGED SO FAR

1.               Scales of Pay

JMG Scale I – Rs.14500 - Rs.28100 + 2 Stg.increments of Rs.800 [available now] + 2 [new] addl.stag.increments @ Rs.900/- each

MMG  II – Rs.19400 - Rs 30600 + 2 stg.incements of Rs.900 [available now]+ 2 [new] Addl.stag.@ Rs.900/- each

MMG III – Rs.25700 to Rs.31500 + 2 stag.@ Rs.900 + 2 [new] Addl.stag.@ Rs.900 each

SMG IV – Rs.30600/- - Rs.36200/-
SMG V – Rs.36200 - Rs.40400/-
TEG VI-Rs.42000 – Rs.46800
TEG VII – Rs.46800 - Rs.52000/-

2.               Dearness allowance – for every 4 points rise/fall beyond 2836 points of CPI,
Dearness allowance at 0.15% per slab

3.               HRA @ 8.5%; 7.5%; 6.5% on revised Pay respectively.[BP+PQA+Stg.increments] for special places, Area I, other places.

4.               CCA @ same rate of 4% of BP and 3% of BP with max. at same amount ie; Rs.540/- and Rs.375/-respectively.

5.               Two additional stagnation increments for Scale I, II and III officers.  The first of which will be paybale from 1.11.2007 provided he/she has completed 3 years after receiving the II stagnation increment.  The fourth stagnation increment will be paid 3 years after drawing 3rd stagnation increment ie; 1.11.2010 or later.


6.               W.e.f. 1.5.2005 pension to officers retired during the period 1st April 1998 to 31.10.2002 will be refixed on pay definition in terms of Joint Note dated 14.12.1999 – No arrears / commutation in respect of this will be paid

7.               Similarly officers who retired in service during 1.11.2002 to 30.4.2005, Pension will be refixed pay as per Joint Note dated 2.6.2005.  No arrears or commutation will be payable.

8.               Medical Aid – JMG & MMG – Rs.5100/= and SMG & TEG –Rs.6200/- per annum

9.               Hospitalization

Upto scale III               Bed charges Rs.700/- for self per day
                                   Bed charges RS.525/- for family per day
                                   Other charges – 125% of workmen rates

Scale IV & above         Bed charges Rs.900/- for self per day
                                   Bed charges Rs.675/- for family per day
Other charges – 150% rates of workmen eligible for other charges

10.           Recovery – for rent 1.20% of first stage of pay and 0.25% for furniture of   first stage of pay or standard rent which ever is lower.

11.           FPP
    Increment    +     DA as on 1.11.2007 + HRA @ applicable rates
800                                                    58
900+                         65
1000+                       72
1100+                       79
1200+                       86
1300+                       94

12.           CAIIB Part I                           Rs.  410/- pm
CAIIB [both parts]                 Rs.1030/- pm

13.           Deputation Allowance
Outside the Bank – 7.75% of Basic pay with maximum of Rs.2300/ pm
Within the Bank   – 4% of Basic pay with maximum of RS.1200/- pm

14.           Hill Allowance
1000 meters                                    2% of BP max.Rs.550/ -pm
1500 meters less than 3000 meters 2.5% of BP max.Rs.680/-
3000 meters and above                   5% of BP max. of Rs.1570/-

15.           Halting allowance

                    Scale IV & above    1000                       800               700
                    Upto Scale III          800                         700               600

16.           LFC
a.  JMG entitled to travel by air to the eligibility I class AC
b.  Dependants income Rs.3500/- pm

17.           Project Area Allowance
Group A            Rs.290/= pm
Group B            Rs.255/- pm

     18.     Mid Academic Allowance       Rs.700/- pm

     19.     Split Duty Allowance    Rs.165/- pm

     20.    Date of effect – 01.11.2007
             [ except in the case of Hospitalisation. Halting allowance, Split Duty allowance,
               Mid Academic Transfer allowance and officiating allowance
              where it will be effective  from 1.5.2010 ]

Source : All India Bank Officers' Association

Friday, April 16, 2010

PSEB employees end STRIKE after talks with CM


Employees of Punjab State Electricity Board (PSEB) today ended their agitation against bifurcation of the body after Punjab Chief Minister Parkash Singh Badal assured them that their interest will be protected.

"The chief minister has assured us that there will be no privatisation and the interest of employees will be taken care of," Manjit Chahal, spokesman of Joint Forum of PSEB employees' bodies, said here.

"That is why we have decided not to extend our agitation and employees will join their duties tomorrow," he said.

Punjab government yesterday gave its nod for bifurcation of PSEB.

A group of employee leaders including Surinder Pehalwan representing Employees Federation met Badal this afternoon.

Chahal said that during the meeting, Badal "assured us that service norms involving pension, gratuity and leave encashment would be framed within ten days".

Bank Pay Hike : ALL INDIA BANK OFFICERS' ASSOCIATION'S CIRCULAR

Circular No.11/V/2010
April 15, 2010  
To:
ALL UNITS / STATE COMMITTEES    
Comrades,
MOU dated 27.11.2009
Developments in small committee meetings
Ever since we signed the MOU dated 27.11.2009 all constituents of UFBU are striving to reach the settlement on pension and revision of pay at the earliest.
However, the first destablising development  came when IBA after MOU dated 27.11.2009 was signed on the basis of existing parameters of costing in the industry, brought SBI pension balancing, a factor which was not there in earlier two settlements and after SBI employees got 120 crores as compensation on the pension scheme introduced in Banks.  IBA brought this after MOU keeping UFBU in dark till we signed MOU 27.11.2009 and they did not accept our legal demand to keep this amount of nearly 300 crores outside the load, without reducing the load factor of 17.5% to 16.5%.
But IBA using the pressure on the unions to expedite the settlement imposed the questionable addition to reduce our load factor.
Another destabilsing aspect took place amongst officers’ Associations when we met IBA Chairman to plead for higher starting basic and stagnation, it was decided by  the unions that we will work out scale of pay adjusting incremental pattern to reach 15000 starting pay.
However AIBOC unilaterally met IBA and announced completion of small committee work and wanted us to agree to their scheme.  We had prepared our chart at 15000 with suitable adjustments in incremental pattern and said that we would go with them on other matters if starting pay is agreed at 15000/- so as to reduce the difference with Govt. officers which have increased by leaps and bounds due to grade pay etc., after VI Pay Commission implementation.
AIBOC expressed its inability to go further and despite other small improvements, Junior officers are again left in the lurch.  Without delinking Executives pay, we unnecessarily reduced their pay in the process sealing our prospects to improve our wages in future.
This policy of AIBOC to negotiate with IBA on separate lines has led us to difficulties.  While AIBOC was always critising UFBU, they flouted 20+ demand of united UFBU to land us at 17.5%.  Thereafter they revisited SBI demand to make it 16.5%.  They wanted higher wage for officers but did not accept AIBOA’s proposal to place separate demands and to pursue the charter with IBA and Govt., separately.  Instead they sat with UFBU till date of effect and merger points were decided and showed a picture as if they are not agreeing with 17.5% but eventually made it 16.5% in favour of SBI.  Convenient stand was taken at every point of time to distribute the load on the basis of numbers without basic principles of fair loading principles to all sections.
Another sad feature of AIBOC negotiation is that while HRA we had differed with IBA costing excess nearly 50 crores, they have not even declared this publicly.  Similarly after reducing starting pay to Rs.14500/- now AIBOC is complaining of relativity problem as workmen get special pay of Rs.1000/- wef 1.5.2010.
However more than anything above AIBOA is worried that IBA is adopting standards and methods questionable in nature to push higher level of recovery from the load factor and from individuals nor incumbent to pay the deficit on account of delayed option.  Having extracted higher appropriation in respect of incremental cost sharing and deficit funding, IBA has so far denied normal feature of pension like DA neutralization, updation, anomaly rectification for the last10 years With further recovery for incremental cost for 276600 persons and deficit recovery, IBA has achieved higher cost of pension taking nearly 5% more than PF cost of 10% with which pension was exchanged in the beginning.  Slowly pension is proving more costlier than the benefits especially after this settlement.
It is this trend of negative bargaining by IBA to pauperise the community that make us generally worried about the state of collective bargaining in the industry and the need for transparency to evolve demands below which the unions will not accept any settlement with Bankers.
With greetings
/R.J.SRIDHARAN/
GENERAL SECRETARY

Wednesday, April 14, 2010

SBI officers quit association, protest wage settlement


Unhappy with the wage settlement, 80 per cent of State Bank of India (SBI) officers in the senior management grade have resigned from the membership of the officers’ association.

The finer details of the industrywide wage revision for bank employees have already been worked out and the agreement will be made official next week.



View the details of negotiation on 13th April.

“There has been an exodus from the officers’ association from the Mumbai Corporate centre alone”, said an employee involved in the issue.

Referring to the dissatisfaction among officers, TN Goel, president of the All-India State Bank of India Officers’ Federation, said the basic issue with the decision for just a 17.5 per cent hike, which was making it difficult to structure the pay scales. Hence, various groups feel they are getting a raw deal. Specific issues regarding SBI staff and officers will be taken up after the industry-level pact is signed.

However, SBI officials who have resigned from the association are of the view that the wage negotiations are more focused on issues other than a decent wage package. Officers allege that the first priority of the present settlement is giving a second pension option to those who did not opt for the scheme in 1993.

The second priority of the settlement had been providing “stagnation increments” to officers in scale I to III, they said. The position in the SBI cadre increases in an ascending order from scale I to scale V. Scale IV and V comprise senior management.

“The stagnation benefit creates an anomalous situation whereby a person in a lower scale, who was either not found fit for promotion or did not opt for promotion, draws the same basic salary as a person who is shouldering higher responsibilities after being promoted to a higher scale. Moreover, the wage settlement does not extend the same benefit to scale IV or V officers, where stagnation is more than 12 years and is followed by frequent transfers”, they said.

“The most objectionable part of the settlement is that the representatives of the SBI officers’ association, rather than struggling for higher wages for members, have settled for less. This is because IBA had proposed pay scales of Rs 15,000-54000 as increase in basic salary across the board whereas the association settled for Rs 14,500-52,000”, said the officers.

GD Nadaf, general secretary, All India Bank Officers’ Association, said that from around two-and-a-half years of arrears, employees opting for the second pension scheme might have to forgo seven to eight months of arrears as contribution to the pension fund in lieu of the provident fund.

Source : Business Standard.

Details of Talks with IBA on 13th April, 2010. IBA proposes to sign settlement on 20th April.


We reproduce herein the text of UFBU Circular No. 3 of date on the details of the discussions held between UFBU and IBA today (13th April, 2010) at Mumbai.

Pension related issues: While the draft of the Pension Option Settlement has been discussed and finalised, important issues of sharing the deficit / gap were discussed today. Various proposals of sharing method were discussed by us in the UFBU meeting including differential formula for pension optees and PF optees and taken up with the IBA. However, having regard to certain legal and other implications, it has been finalised to have a uniform sharing formula. The details are given in the UFBU circular herein.

Improvements in pension scheme: UFBU has also decided to take up various issues relating to improvements in the Pension Scheme like periodical updation of pension along with wage revision for serving employees, 100 % DA to be paid to all pensioners, common indexation of pension, increase in commutable portion of pension, increase in Ex Gratia for Pre-1986 retirees/widows, higher pension for pensioners above the age of 80, etc.

Final Settlement: Various informations are being floated amongst the employees that the 9th Bipartite Settlement would be signed on 15th, 17th, 25th, etc. As of now, IBA has proposed that the final settlement can be signed on 20th April, 2010 since according to them all the issues stand resolved and the draft is also getting finalised. However, from our side, there are very important issues like IBA’s proposals on outsourcing and increase in duties of Single Window Operators, Head Cashiers and Special Assistants without increase in Special Pay on which there are serious differences with the IBA. Without resolving these issues it would not be possible for AIBEA to sign the Settlement.

We will keep members informed of all developments. Units and members are requested not to be carried away or provoked by attempts from any quarter to create confusions and diversions.

Text of UFBU Circular No.3 dated 13th April, 2010.

Another round of bipartite talks was held between IBA and UFBU constituents at Mumbai today. IBA was represented by Mr. Ramakrishnan, Chief Executive, Mr. Unnikrishnan, Dy. Chief Executive and Mr. M. Venugopalan, Officer on Special Duty. From UFBU, representatives of all the 9 Unions were present.

In today’s meeting, issues relating to settlement on pension option were taken up. The draft Settlement was discussed in details and finalized.

Regarding retirees, the formula for contribution of Rs. 934 crores ( 30% gap ) of the deficit after refund of the PF amount (Bank’s contribution), it has been decided that the retirees will contribute as under:







Refund of PF amount (Bank’s contribution) actually received  at the time of retirement  (no interest is payable on this amount)
Rs.  X
Plus: 56 % on this amount of Rs. X
Rs.  Y
Less: Commutation amount Receivable from the Bank
Rs.  Z
Net Amount refundable to the Bank ( X + Y – Z )
Rs ……

Regarding existing employees / officers, out of the net gap of Rs. 6000 crores, Banks would contribute 70 % i.e. Rs. 4200 crores. For the balance of Rs. 1800 crores ( 30%) employees / officers would contribute as under: ( This will be a onetime contribution and would be recovered from the arrears.)

For existing employees/officers - 1.6 times of “ Pay ” payable for the month of November, 2007.

For employees who have joined the banks after 1st November, 2007 their contribution would be proportionately reduced.

Date of effect of pension option: IBA reiterated their stand that pension option would be effective from the date of the Settlement while we have explained our viewpoint that it should be w.e.f. 1-4-2008. Difference on this issue persists. UFBU decided to take steps to find a solution to this issue.

Improvements under Pension Scheme: We took up with IBA various improvements in the Pension scheme like periodical updation of pension along with wage revision for serving employees, 100 % DA to be paid to all pensioners, common indexation of pension, increase in commutable portion of pension, increase in Ex Gratia for Pre-1986 retirees/widows, higher pension for pensioners above the age of 80, etc. After discussion it has been decided to submit a memorandum on these issues to the IBA and the Government and to be pursued further.

Source : AIBEA

SBI officers protest wage settlement, quit association.

[Our gratitutude to Mr P. Mohan for continuously updating us regarding 9th Bipartite.]

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