Friday, April 16, 2010

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

19 comments :

sudhakar said...

After the lapse of 30months associations are bringing the true colors now. What is the use. Both the associations successfully deceived the members to the fullest extent, the existing pension optees and PF optees who are seeking pension now.Now what the UFBU proposes to do. IBA will not agree what ever you say as you have failed to get even single item from them as per your choice.Enough is enough complete the process at an early date as you cannot achieve any thing under the present circumstances.

Parameswaran said...

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.

Parameswaran said...

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

A CLASS cities AREA I AREA II
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 ]



……………………………..

workplace bullying said...

Silver jubilee celeberations of AIBOC at Ethiraj college auditorium on 24.4.2010. Comrades of Chennai and neighboring places, please come with black flags and let us agitate. G D Nadaf pledged the officers cause to IBA for his gains. Let us teach him a lesson. We will burn the effigy of G D Nadaf in Binny Junction on 24.4.2010. Protest at the venue of the celeberations. Friends come in groups of hundreds let us this goat a fitting lesson

sanjay said...
This comment has been removed by the author.
sundaram said...

Dear Sirs,

Gap on pension fund for retirees estimated at Rs. 934 Cr. by IBA. It is supposed to be shared by 65000 already retired PF optees.

Per optee's contribution to fill the gap is 934 Cr./65000 = Rs. 1.44 lakhs

As per the understanding between IBA/UFBU, 56% 0f CPF should be surrendered in addition to CPF already received by the retirees,.

Retirees are spread over a period of 9 years from 2001- 02 to 2009-10 and estimated at 65000.

Calculations:

I In 2001, the average BPF contribution received by the majority of retirees is assumed as around Rs. 3,00,000 (Conservative estimate)

II In 2010, the average BPF contribution received by the majority of retirees is assumed as around Rs. 8,00,000 (Conservative estimate)

(I wish to point out that very few opted for VRS in 2001 by PF optees as they were not eligible for pension benefits. )

III 65% of I = Rs. 1,95,000

IV 65% of II =Rs. 5,20,000

Average of III & IV = 3,57,500 (Average is taken as the retirements took place gradually over a period of 9 years)

This is assumed as the average inflow to the pension fund for filling the shortfall gap per retiree.

It is further assumed that at least 15% will prefer to continue as PF optees reducing the number of retired PF optees to 51000.

If they opt for pension now, the collection for short fall in the pension fund gap works out to 59000x Rs.3,57,500=Rs. 2109.25 Cr

as against the gap of Rs. 934 Cr. being the share of retired PF optees. which is 2.25 times the gap envisaged.

Therefore, the basis of arriving at 56% of PF contribution to be surrendered by retired PF optees appears to be incorrect even on
conservative basis.

Please go through the above working and please offer your comments. The contribution by retired PF optees should be max. around

Rs.1.59 lakhs (Rs. 934Cr/ 59000 ) that too without commutation adjustment.

Kind attention to Mr.Ramachandran, Mr.Parameswaran

Regards,
R.Sundaram

Parameswaran said...

I agree with Sundaram's comments. But i do not know how IBA/UFBU combine arrived this figure. Let us wait and see till the final settlement is reached.

shilpi said...

where is left ¤

guneet said...

PENSION OPTEES ARE BEING FORCED TO BEAR THE COST FOR A DECISION WHICH DOES NOT RELATE TO THEM.

Parameswaran said...

without knowing all along pension burden was shared by PF optees. Now why these pension optees are crying. If they are getting benefit they keep silent. What is the logic. They should have refused pension if IBA is not able to give pension from the pension fund.

Ramachandran said...

What Mr.Parameswaran has written is absolutely correct. But the pity is that in the 7th and 8th BPS all employees including PF optees have contributed for the pension fund. The only problem is that many of the present pension optees are not aware of the same because our leaders have never made the same public. It was confidential exercise.Even many PF optees are not also aware of the same. Only some top leaders are aware of the same.

But now that our leaders have made it public that all the employees including pension optees have to contribut for the pension fund all the pension optees have come to know the same and hence the display of biggest heart burning towards particularly retired PF optees.

Had the leaders given the necessary educative series of the settlement to the general members they would have understood the correct position and there will not be shouting from the roof top by the existing pension optees.

Who to be blamed for?

Parameswaran said...

Thank you Ramachandran

I said only the gist of it. You narratted in detail. Thanks. Now atleast blog members will know this.

BALAN said...

PRACTICAL SOLUTION TO DIFFUSE THE SETTLEMENT CRISIS


THE CONCEPT OF CONTRIBUTION BY THE EMPLOYEES TO FILL THE GAP ITSELF IS MAKING NO SENSE.
1800 CRORES IS NOT A VERY BIG AMOUNT WHEN COMPARED TO THE BANKING INDUSTRY AS A WHOLE BARRING SBI
ONLY LOGIC IS THAT SOME AMOUNT NEED TO BE COLLECTED FROM PERSONS WHO HAS RECEIVED THE PF AMOUNT BANK CONTRIBUTION.
AND WANTS TO AVAIL PENSION NOW.
HENCE FIX 0.08 IN LIEU OF 8% AS A FACTOR AND MULTIPLY THIS BY NUMBER OF COMPLETED YEARS THAT THE PF CONTRIBUTION REMAINED WITH THE PF RETIREE.
ALLOW COMMUTATION FROM THE DATE OF RETIREMENT AND WAIVE DEDUCTION TILL THE DATE OF EFEFCT NOTIONALLY.AND ACTUALLY START DEDUCT THE COMMUTATION AMOUNT FROM THE DATE OF EFFECT, WHETHER IT IS 01.04.2008 OR 01.04.2009 OR 01.04.2010. THIS IS IN LIEU OF GIVING EFFECT FROM THE DATE OF RETIREMENT.
RELEASE 100% DA NEUTRALISATION TO PRE 01.11.2002 RETIREES IMMEDIATELY AS IT WAS A GROSS IRREGULARITY COMMITTED BY IBA IN CONNIVANCE WITH UFBU.DURING 2005 SETTLEMENT .
SINCE A VERY POOR SETTLEMENT NOT EVEN TO THE NOTORIOUS FIGURE OF 17.5% IS COMING RELEASE COMPLETE ARREARS WITHOUT DEDUCTING ANY AMOUNT FOR PENSION LOAD AS BANK CAN ABSORB ENTIRE 100%. FOR GIVING PENSION.
AFTER GIVING PENSION TO ALL WORK THE LIABILITY AFTER 31.03.2010 AND PROVIDE FOR ACCORDINGLY . WORK THE RATIO OF PROFIT VS STAFF COST AND SEE THE PERCENTAGE YOURSELF .
YOU CAN APPOINT A COMMITTEE TO GO IN TO THE QUESTION OF PENSION UPDATION/INDEXATION OF PENSION/HIGHER PENSION WITH INCREASE IN AGE ETC AND OFCOURSE WHETHER THE BANKS ARE HAVING CAPACITY TO PAY THE AMOUNT BY COM;PARING THE AVAILABLE FIGURES BEFORE ALLOWING POLITICAL WRITE OFF /COMPROMISE PROPOSAL LEAKAGES/TRANSFER TO THE GOVERNEMNT COFFERS.
ALLOW THE BANK EMPLOYEES TO WORK PEACEFULLY TO GENERATE MOREPROFIT.
PAY MONETARY COMPENSATION FOR INCREASED STAY IN OFFICE BEYOND THE STIPUILATED HOURS AND FOR COMING FOR WORK ON HOLIDAYS.
@ 250 PER DAY FOR OFFICERS AND @150 PER DAY FOR CLERKS FOR DAILY OVERSTAY FOR COMPLETION OF DAYS WORK
@500 PER SUNDAY FOR CLERKS AND @1000 PER DAY FOR OFFICERS IF THEY COME ON HOLIDAYS /GOING FOR RECOVERY/PRONOTE RENEWALS APART FROM TRAVELLING ALLOWANCE .
SAVE THE BANK EMPLOYEES FROM BECOMING THE POOREST IN THE GOVT/QUASI GOVERNEMNT /PUBLIC SECTOR
SAVE BANK PENSIONERES FROM BECOMING CITIZEN BELOW THE POVERTY LINE
SAVE THE FACE OF UFBU BY TAKING POSITIVE ACTION ON PENSION RELATED ISSUES

GET YOUR FACE (IBA) ALSO SAVED FROM THE CURSES OF A NEARLY A MILLION EMPLOYEES AND THEIR FAMILIES.

K BALASUBRAMANIAN

rahul said...

Mr.Balan,
pl.stop dreaming atleast now
when things are clear& irreversible.

shilpi said...

chor

r rajendran woraiyur trichy said...

For Mr.Parameswaran comment over Mr.Sundaram on April 17, 2010 7:36 AM:

Mr.Shankar has explained in his comment yesterday about how IBA/UFBU combine arrived at 56% figure towards pension cost to be
borne by PF retirees.

For Mr.Rahul comment over Mr.Balan on April 17, 2010 3:57 PM:

Dreaming will fetch something atleast for next BPS and many things invite legal complications and no logic on many issues and also reversible as per law as experienced by IBA last year dear!

akhilesh said...

Thank you Mr. Shankar for your reply.
One more question. I retired on Jan 2010 as scale two manager from Allahabad Bank as P.F. OP TEE . What will be my position if I opt pension .I shall be treated as exiting or retired officer. Please reply. What amount I have to towards pension fund.

akhilesh said...

As per central bank of india officers
asso. finance minister has agreed for pension will be paid from 1 11 2009.
What will be position of an officer
retired on Jan 2010 as pf op tee whether exiting or retired?

Venkat said...

Sundaram is wrong in figures.Pension Fund is rotated in the market and even shows 100% rise on many days.Pension fund management should be supervised by Pensioners by independent audit and not by serving officers

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