Sunday, April 11, 2010

Banks have earned more than Rs 1800 Crores by delaying the wage settlement.

Following is an article published in allbankingsolution.com .


Viewers are requested to analysis the article and send their comments.


"
You are aware that  UFBU  signed the minutes with IBA for increase of Rs.4816 crores wef 01/11/2007 (Rs. 2239 crores for officers and Rs.2576 crores for workmen employees)".  Moreover, for offering 2nd option for pension, it is said that bankers have to bear the cost of Rs.1800 crores.
Now, let us see how IBA is playing and squeezing the unions and the bankers.  We are of the view that the bank employees should not be asked to pay any amount towards the cost of offering 2nd option for option, rather they may be paid some additional amount.
This is based on the simple calculations.  Our union leaders are either totally zero in calculations or are in hand in glove with the IBA.
Now let us suppose the salaries had been increased w.e.f. 01/11/2007 i.e. from the due date itself, then banks would have to shell out Rs.4816 crores per year from that date itself.   We are sure that banks have utilized these funds for lending to borrowers in the market, and normally these are lent not below the BPLR rate which ranges from 11% to 15% in different banks.  Even if we take that these have been lent at only 12% p.a., then banks have already earned more than Rs.1800 crores (See the calculations below):-
Total Amount of Increase per year (Rs. Crores) 4816.00
Total amount of increase per month (Rs. Crores) 401.33

           (say 400 crs.)
Month When Arrears Amount of Increase Cumulative Amount  (Rs Crs.) ROI Intt for One month in Rs Crores
Not Paid Not Paid (Rs. crs.) Not Paid  %

01 November 2007 400 400 12 4.00
01 December 2007 400 800 12 8.00
01 January 2008 400 1200 12 12.00
01 February 2008 400 1600 12 16.00
01 March 2008 400 2000 12 20.00
01 April 2008 400 2400 12 24.00
01 May 2008 400 2800 12 28.00
01 June 2008 400 3200 12 32.00
01 July 2008 400 3600 12 36.00
01 August 2008 400 4000 12 40.00
01 September 2008 400 4400 12 44.00
01 October 2008 400 4800 12 48.00
01 November 2008 400 5200 12 52.00
01 December 2008 400 5600 12 56.00
01 January 2009 400 6000 12 60.00
01 February 2009 400 6400 12 64.00
01 March 2009 400 6800 12 68.00
01 April 2009 400 7200 12 72.00
01 May 2009 400 7600 12 76.00
01 June 2009 400 8000 12 80.00
01 July 2009 400 8400 12 84.00
01 August 2009 400 8800 12 88.00
01 September 2009 400 9200 12 92.00
01 October 2009 400 9600 12 96.00
01 November 2009 400 10000 12 100.00
01 December 2009 400 10400 12 104.00
01 January 2010 400 10800 12 108.00
01 February 2010 400 11200 12 112.00
01 March 2010 400 11600 12 116.00
01 April 2010 400 12000 13 130.00

GRAND TOTAL 1870.00
The above clearly shows that banks have already earned sufficient funds and are in a position to bear the additional cost of 2nd option to banker as they have delayed the settlement intentionally."

By courtsey :  allbankingsolution.com .

13 comments :

SHANKAR said...

May be there is some benefit to the bankers. But the calculations shown is hypothetical and not realistic in approach.

sudhakar said...

This calculation is no help for bank employees and not going to get any relief for us. Let us wait for outcome of 13th April meet and the amount to be contributed by pension optees and present PF optees seeking pension.

SUJIT said...

FORGET 9 TH BPS, EXPECT FOR 10 TH BPS,IF THE SAME DA NEUTRALIZATION FORMULA
IS MAINTAINED TO COSTRUCT THE NEW BP FOR 10 TH BPS AS ON 01/11/2012
THE CLERICAL BP WILL BE 14000-38000(approx.) FROM 7200 -19300 NOW, ASSUMING THE MODERATE AND CONSERVATIVE INCREASE OF CPI UP TO MAY 2012,
SO NO DELAY IT CAN BE DONE FROM THE VERY BEGINNING OF THE 10 BPS i.e FROM 01/11/2012 WITHOUT ANY FURTHER BARGAINING WITH IBA.

SUJIT said...

CORRECTION ASSUMING MODERATE INCREASE OF CPI UTO NOV 2011 UP TO WHICH DA WILL BE MERGED

bank wage revision said...

Dear firends

One rumour is that the pension fund outgo is being decided on basic pay

1.6 times of revised basic as on 01.1.2007 to going to be deducted from arrears payable

SHANKAR said...

Refer to bankwage revision-April, 11,2010 9:18 PM
Unless anything appears in union websites we need not believe any roumors

H.R. Dhiman said...

Refer SUJIT April 11, 2010 8:49 PM
It would in the interest of the bank employees, but it will not happen if UFBU remains our leader.
In fact term of BPS was raised from 4 to 5 years with the reason that in future memo of demands will be given well in advance and talks will resume 6 month prior to the expiry of the old BPS so that new BPS is signed on due date. But we have seen that where is that commitment ?

SK said...

Dear Mr Nadaf,

Why the Banks/ GOI is not in aposition to pay jusfified wages to permanent officers. You are fighting for a negligibe increase of 17.50% to officers. As per revised salary structure, a probationary officer will get Rs.3.00 lacs approx while the Management Trainees (MTs recruited by SBI and some other banks) taken from from some third class management colleges (through backdoor in the name of campus placement and not through open competion like PO ) are being paid around Rs.6.00 lacs per annum for same job. Some of them are not even MBA but only 1 year diploma holders from NIBM.

Who is responsible for this anomely. Have AIBOC raised this issue to the IBA/ GOI. Top management is obliging its near and dear ones by recruiting their relatives in the management trainees and association is silent on the issue. I doubt that union people must be also getting some benefit from this back door entry. Other wise why are they silent on this issue.

The annual increament for these so called MTs is around Rs.1.00 lacs p.a. and the responsibilities assigned to them is just like scale-II officers (credit analysts in CPCs) . They are also free from all type of mandatory assignments.

When the Banks have no money for their regular officers, how are they managing to pay these guys higher than an existing AGM ?

jayaram said...

BANKS NORMALLY DO NOT PAY INTEREST ON DELAYED PAYMENT OF ARREARS DUE TO WAGE REVISION.THERE IS ALSO NO RECORD TO SHOW THAT THERE IS ANY DEMAND FROM UNION/ASSOSCIATION FOR SUCH INTEREST PAYMENT.TO OVERCOME THIS THE UNIONS MAY DEMAND CERTAIN PERCENTAGE OF INCREASE AS ADJUSMENT PAY IMMEDIATELY AFTER EXPIRY OF BIPARTITE SETTLEMENT.FOR EXAMPLE THE UNIONS HAVE TO DEMAND AN INCREASE OF ATLEAST 20 PERCENT OR MORE AS ADJUSMENT PAY ON GROSS MONTHLY SALARY AFTER EXPIRY OF THE CURRENT 9TH BPS SETTLEMENT. THAT IS WEF 01.11.2012 THE INCREASE OF 20 PERCENT OR MORE AS AGREED TO BE PAID ON GROSS MONTHLY SALARY IS TO BE ADJUSTED OUT OF ARREARS AFTER ACTUAL SETTLEMENT.TO THIS EFFECT AN APPROPRIATE CLAUSE MAY BE ADDED IN CURRENT 9TH BPS NOW ITSELF.THIS TO CERTAIN EXTEND WILL BE BENEFICIAL TO ALL EMPLOYEES.-R.JAYARAM

Vasu said...

We are happy that we are able to reach understandings on a number of issues with the negotiating team of IBA. We propose to take up the remaining issues with the Chairman of IBA seeking his direct intervention, immediately. Meanwhile we wish to inform that IBA will hold a meeting with UFBU on 13th April, 2010 to discuss and finalize Pension Scheme.
Source : All India Bank of Baroda officers' Association cir 11 of 10th april

Vasudevan

Vasu said...

While agreement appears to have been reached on various issues as per All India Bank of Baroda Officers'Association circular 11 of 10th april, it seems pension related issues would be taken up only on 13th of this month .( It was to have been taken up for finalization today)
Besides on a number of issues direct intervention of chairman of IBA is proposed to be sought. Having regard to the above it would be a miracle if final settlement is signed by 15th of April as announced by all earlier (14 th April being a holiday in most of the places). Vasudevan

GIREESH SUMAN said...

What are we doing? We know that whatever we write here ourleader will do what their boss(IBA) say.so wait until they get a best conclusion for us. Otherwise its better to be a servant in govt. service than be a clerk in a nationalised bank.

chandan said...

SPREAD THIS MESSAGE:
-------------------------------------------------

Shame on our salary revision. For central govt employee the wage revision is at 40% with lot of other benefit, for PSUs the revision range from 60% to 90%, for UGC teaching professional the revision is at 60% & even in many state govt the revision is more than 50% ** BUT PSUs BANKS revision is at 17.5% ** please ask yourself do you work less than others\do your organisation is not making enough profit\are you working at a very comfortable work environment without risk & responsibility ??? if your answer is no ??? then you deserve a respectable wage hike.{let us make it a mass movement} Please circulate to all colleagues{send SMS to a minimum 15 colleagues} so that message will reach to its destination.
------------------------------------------------------------------------------------------------------------

Exact lines that I received yesterday from one of my colleague through SMS.

Thanks.

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