PAY COMMISSION: Bank Employees' Wage Revision Talk Fails Again

Sunday, February 22, 2009

Bank Employees' Wage Revision Talk Fails Again

Yesterday (21-Feb-2009), another round of talks took place with the IBA in Mumbai on pending demands of pension option and wage revision.

1. Pension option: - As mentioned in our earlier circular, IBA insisted on introduction of new pension scheme i.e. defined contributory scheme on the lines of the scheme unilaterally introduced by the Central Government since 2004. After discussions, IBA stated that while some option can be given to the new recruits to choose between the existing pension scheme and the new pension scheme, within a period of three months, such an option facility can be available only for one year and thereafter, the new pension scheme should alone be operative for the new recruitees.

After mutual consultation, UFBU offered as under:-

a) Existing scheme to continue.
b) IBA should give the full details of their proposed new pension scheme.
c) After study of the new scheme, IBA & UFBU can discuss the feasibility of introducing the new scheme after one year for the new recruitees.
d) In the meantime, the issue should be delinked and option for the existing employees should be extended by finalizing the sharing formula without any further delay.

IBA informed staff side that they do not have any mandate to agree to our proposal but agreed to go to their Managing Committee scheduled on 27.2.2009 to discuss our proposal and thereafter would come back to us. However IBA reiterated that any resolution of our demand for pension option for the existing employees will have to be comprehensively resolved including a scheme for the new recruits.

2. Wage Revision:- On wage revision, IBA informed that they do not have mandate to go beyond the earlier offer of Rs. 3600 crores and hence cannot improve their offer any further.

In the light of above approach of the IBA, the UFBU met thereafter and felt that IBA is trying to go beyond the MOU of February, 2008 wherein no such conditionalities were informed by IBA on pension scheme. The meeting felt that in the matter of wage revision also, the IBA attitude was unreasonable since given the reasonable demand submitted by us, their offer falls far short of making any ground for a settlement.

Hence, the meeting decided that while we should take up the matter immediately with the Government and IBA Chairman to impress upon them to expedite the resolution of our above demands, the rank and file should be kept in readiness for agitation programmes including strike action should the IBA and Government try to impose that their conditions and thus delay settlement.

The meeting decided to immediately meet and submit a memorandum to Finance Minister, Labour Minister, Chairman of IBA and Chairman of Negotiating Committee in this regard.

Source : All India Bank Employees Association

25 comments :

Unknown said...: What the Hell these so called self styled leaders are doing..? they are just befooling Bank Staff- Who is just getting frustrated by the impotent behave of these guys.
In central govt. the staff who is enjoying 5 days working schedule and has less risk than Bank employees are getting almost double salary. And these IBA fellows are talking about 15% rise. Do they really want Indian Banks become worst working places. State Bank of India is paying its clerk(some of them are MBAs and PhDs) just 7000 rupees while a Peon is central govt. is getting aroud 14000.
Is it a fault of a person to join SBI. Same is the problem with a highly educated guy who joined this bank as a PO. His salary is just 16000,just equal to Clerk of a central govt. So how can u expect that Talent will come into these banks. Thats why alot of people are leaving these banks to join other sectors.
And still these leaders and IBA people are playing games with the future of Banks.
Why would a person will except lower salary after putting atleast 12 hours in Bank daily.
We faces risk daily and again we are punished for that, without going through the fact that our working conditions are worst in the world.
No one in Unions talk about that because these leaders never do work at bank. They are enjoying our Hard earned money, and uses it to shower gift to each other on one or another occassion.
So friend get up.. its action time.. Dont left ur future in these careless hands..
Demand regulated working hours and respected compensiation.
Thats our self respect.. and we should know how to earn that.; February 22, 2009 at 8:20 PM
pmvragh said...: Not only the unfair wages in the Banks, nowadays there is no human touch in the Banking industry.. Since the computerisation took place, the employees have become machines..With acute staff shortage and with more and more expectations from every staff, people are toiling..They are now forced to ditch their families since they have no time left after the day to day working...
I think the time has come for a sort of revolution..These so called bosses are intent in their own career path at the expense of the award staff..
the idiotic concept of keeping banks open for 12 hours and more is sheer wastage of power and time and intended to please some political nogooders..; February 23, 2009 at 5:47 PM
Unknown said...: Why these UFBU leaders dont ask IBA people- how much they regularly spend on board meetings and foreign jaunts, how much Gol- maal goes in compromise proposal and write offs in all the Banks, how much money changes hands in premises and other infrastrucutre fixing, how much assets thay make after joining the Bank and occupying top posts- UFBU has all this information which they neither share with the members nor thay make use of it at the negotiating table. Have you ever heard UFBU speaking about rampant corruption at various levels in Banks? Are they not able to do the whistle blowing ? Cant they get easy access to information of misdeeds which jeopardise the profitability of the Banks?
This is all a Naatak. Neither the UFBU nor IBA is serious. Did you observe that AIBOC does not give any quick updates aboput its tlks on website? Did you notice that every unions drafting of the reporting about the talks is the same. They are hand in glove with IBA. So when your leaders give long winding talks just blast them with above issues.; February 23, 2009 at 8:59 PM
Unknown said...: This is really disgusting what our union people are doing? And what IBA is giving only 13% what does it mean. They people are fooling our Bank employees every time.
Central government staff is putting how much pain in their work is not a matter but matter is how much risk they are taking in their working and decision, but in our Banking Industry each and every day is coming with higher risk and it is very painful with long hours of sitting and unwanted pressure from Govt. If Govt. itself is not in a position to pay higher salary then don't have a right to direct their PSU's bank to perform in social manner. Any body who is in the relation of bank staff people can well judge our social position and obligation but Govt. doesn’t understand that Why? Our working condition is poorest in term of staff shortage, long working hours and poor HR systems. Who will see these problems? Wage revision is not the only problem there should be a at least some similarity with the pay scale with center Govt.

If this type of situation will continue we may see a drastic change will come in banking industry after 2009-10 when large number of our Staff member will quit these Banks and join some other Private or International Banks.
Why they people don't understand that we people are also human beings. We also have a family, we also have a social life, we also have a friends and many other things we have but the only thing we don't have a time for them. It’s a time to think again, don’t keep your bright future in these hands. It’s a time to wake up and fights for our rights and for our self respect.; February 23, 2009 at 9:51 PM
Shiva said...: Have UFBU represented to Govt. of India as they have said?
Now if elections are declared before 9th bipartite settlement it would be deferred till the formation of new government and once the new govt. is installed which in itself appears to be a sticky affair in absence of a clear mandate(almost sure), these fellas will have not many more things at hand....and our cause will certainly be lost for ...God only knows how long.....
Friends.....please....somehow pressurise these UNION people to do something drastic to arm-twist the govt. to extract a respectable pay enhancement. Or else the new govt. which will be intoxicated for another 5 years wouldn't give much to us.; February 25, 2009 at 8:30 PM
Anuj said...: why the union is talking about the pension schemes for some employee at the cost of lakhs of employee. Why should we compromoise with our salary at the cost of their pension. All other state and central govt got the pay hike to the tune of 50-60% without any strike and struggle.
In the last five years inflation was arount 5-6%. Cumulative for five years it would be around 30-35% and wee have been given an increase of just 13%; which is very much a negative growth in the salary.
This should not be acceptable at any cost.; February 26, 2009 at 2:35 PM
rajesh said...: I dont understand why these union leaders are behaving like this. We have elected these leaders with blind faith. Whenever they have called for strike, we have always supported them, then why they are hesitating in calling strike and not on such serious issue, there must be some reason for this and everybody understands this. Do Union Leaders feel that if they call for strike we wont support it? I request union leaders to call for indefinite strike and if goes only for a week whole banking industry will come to stand still, whole economy will collapse then govt will understand the seriousness and our urge. Then only govt will understand these poor bankers when it will be made realised the kind of work do in comparaision to these Central Govt Employees. It is really shameful that State Govt employees and Central Govt Employees are earning double than what a bank employee is earning. They are administrative expenses whereas we are earning then asking for our share in the profit. There was a time in 1980 to 1987 when a bank's officer's salary was more than an IAS officer and today an officer in bank is getting lesser salary than a Cent. Govt. Clerk and a clerk in bank is getting lesser salary than a peon in Central Govt. Today 22 State Govt. Employees are earning better salary than bankers, whereas these state govt always look for Cent. Govt. help for meeting out their expenditures. I dont understand why only the bankers are treated as third grade employees in this country. We the bankers have today shown the world that Indian Economy is still strong whereas all over the world bank are collapsing. This is the foresightedness of Smt. Indira Gandhi that banks in India are still working for social development and are still under Govt Control but why now govt rewarding these poor bankers least, it shows how much the present govt care for us.

A BANKER; March 6, 2009 at 6:09 PM
Shiva said...: Fellow Bankers!
If we didn't mount enough pressure on our Most respected Union leaders....we will be left nowhere..come to think of it....an officer slogs out till late in evening and sometimes till the night too and his scale is at Rs.10,000/-.....we can atleast spread the word around so as to make this issue sound important to others...Please fellow bankers...use SMS and e-mails to make a movement....for our own good.; March 6, 2009 at 6:39 PM
Unknown said...: let us understand why we bank people are not able to get a decent raise in the shape of settlemnt.
-our so called leaders are least bothered about our fate as long as they get pension
-our so called leadres have ensured that second line of leadership dosent groom as then these oldies wil be thrown out. so we have to be contended with what these old so called netajee choose for us.
-our banks employes at our level are the most honest as an industry and individuals as well and as such do not have the capicity to arrange for hefty gifts for getting things done.

Think again,

Put a break on our so called leadership first.

Follw this

Come lead us,

Follow us,

or get out of way.; March 8, 2009 at 12:34 PM
Shiva said...: Fellow Bankers!
Just think what all responsibilities we get to shoulder and what are we being paid!!!!!! All courtesy our so called Leaders.

Lets make a difference by creating a cohesive force, first of all pressurize the union office bearers on branch/local level.....and most important of all...lets spread the message thru SMS and e-mail...lets give oursleves a target of 5 SMSs each day, spread the word around...FIRST AND FOREMOST IS A PROPER WAGE REVISON and anything else comes after that...please send mails and SMSs to fellow workmen...or else our cause will be lost.....Just think ...we are suffering financial losses on day by day basis.
Even if we get a proper wage revision with retrospective effect at a later point of time, what about the time value of MONEY?? Let us Rise and raise our concern in the most strongest manner.; March 9, 2009 at 2:00 AM
v.suryanarayana said...: Now days the bank union leaders are very selfish and are unable to deliver the goods.They least bother about the problems of the bank employees.If a union is really good , then it would have settled all the things before the announcement of Poll schedule.So our leaders are not serious. They least bother about us. First we have to fight with our leaders.; March 10, 2009 at 4:16 PM
C N Venugopalan said...: Bank employees and Officers have their representatives on board the public sector banks who remain inert on the issues of employees. In democratic India the profits banks make go to exchequer to meet the pension bill of MLAs and MPs who serve a short term of two years despite subsequent ouster from office. Even private run school staff too get a pension out of the profits banks make. Those who have retired have also done the same service as those now working. One segment is getting Pension whereas the other is not getting it. Unions say they have no commitment or responsibility in respect of the retired. The relations ignoring the fact that all would retire one day or other. Unions should not agree to Pension by sharing a portion of the proposed wage hike. Pension is to be met by banks out of the profits they make and not out of the remuneration payable to employees now on rolls. If the pension issue was to be logically concluded within three months from 25th March, 2008 as per the MOU, IBA would not have got an opportunity to club the issue with Wage Talks. Now everything is spoiled.

Unions were inert until 31st Dec.2005 on Pension though each and every employee on rolls are legally entitled to fresh Pension Option by virtue of the deletion of the clause enabling forfeiture of entire past services for participation in strike. None has got an option for Pension as per the Pension Scheme now in force ( sans the forfeiture of service clause) . The options once exercised were final and irrevocable as per the Pension Regulations approved by Government of India. But banks revoked the options of some employees on a mere advice from IBA, which proces was null and void. Unions did not notice the issue.

Placing the employees in two segements viz. Pension Segment and CPF is clear case of discrimination. It is opposed to Constitution of India. Those who are in the Pension Segment should help others in the CPF also to preserve sanctity and should not be concerned about their counterparts getting their legitimate right since all are doing the same work. The present status of the issue infringes the Equal Remuneration Act which mandates "equal pay for equal work, for both men and women" .

You may please visit the blog www.bankpension.blogspot.com to see some important information

C N Venugopalan Ex- Manager Union Bank of India , Nandanam, Kesari Junction N ParavoorKerala 683 513 Phone 0484 2447994 or 9447747994 e-mail ceeyenvee@gmail.com; March 18, 2009 at 8:32 PM
Unknown said...: Dear Colleagues,

Our " so called leaders " are mere " broakers " of their retired seniors. They are interested in only and only Pension. The overdue wage revision is a secondary item in every discussion with IBA/ Govt. The meeting starts with Pension and ends with pension. If they contnue to maintain the " Pension first " , we will get nothing in the name of wage settlement.
Why these deef, dumb, impotent and useless leaders are contnously ignoring the feelings of a common bankmen. They should leave the union immediately in the interest of Banks, bankers and the society. Let the governement decide our fate by setting-up a pay commission for Bankers.; March 21, 2009 at 1:24 PM
Indian Bank Radha said...: No reasonable man/women will join bank, unless wages are reasonable in tune with the risk and working climate. Officers exclusively are put to much pain due to frequent transfers which leave them with hand to mouth living conditions besides no care left for their family. No body including union leaders seem to have worried about this.Unless working conditions such as time norms for working hours, reasonable wages, compensatory packages are given, i fear that many officers wil not be able to see their retirement but will attain heavely abode.; April 5, 2009 at 9:34 AM
nimbalkar said...: It is better bank employees leave the banks to look out for other jobs as the union leaders will never achieve anything worthwhile.
Dont ask anyone to join in the banks as the salary starts from
Rs 7000 and he will lose all his youth in serving the banks with a lot of tension.
BP and diabetes are becoming common among bank employees and no health assurance for those who work in the banks; June 8, 2009 at 6:36 PM
C N Venugopalan said...: Dear Fellow Bankers,

Bank Trade Unions are functioning in queer ways. Leaders are working for their own goals. There are two directors ( representing workers and officers) on board different public sector banks charged whopse duty is to function as spokesmen of the workforce. All along, they have been sleeping or clapping hands on all wrong decisions prejudicially affecting workers.

Unions severe the connections with members when they retire. They drove all the retired to different courts for justice without addressing their issues. Many who were denied Pension Option had to approach Courts. Pension matter was a stale one until early 2006 and Unions had, in the course of 8th Bipartite Talks, surrendered the right of employees agreeing not to reopen it again.

Unions started adddressing the issue only after I issued an all India Circular on 10th January, 2006 to all fellow bankmen. ( You can see some items in the blog " www.bankpension.blogspot.com". You may visit the blog and scroll against the different items seen on the left hand side in the blog. ). Agitating for five days on the Pension Issue that was buried deep in the grave yard for years together, the bank unions once again proved that they have power. The MOU dated 25th February, 2008 agreeing to settle Pension Issue within three months from then is the Magna Carta of Pension in the history of Banking. Unions that were averse to Pension in mind did not enforce the MOU even after the anniversary date and allowed to mix it up with wage revision. The reluctant horse was pushed to the pond, but still it refused to drink water. If Pension issue was settled within the agreed time frame or within the next six months it would never have got mixed up with the Wage Talks, giving the IBA a bargain to for employee's contribution for meeting pension bill. Once again, the interests of workforce got pledged. The elephant continues to walk as per the tunes played by the mahout without realising its strength.

Pension becomes contributory for all present employees who will have to surrender Rs.8.00 lakhs to Rs.12.00 lakhs standing to their CPF for joining the scheme. Again, a portion of the proposed wage hike is reportedly contributed towards Pension Burden. After making it contributory for the existing work force, Unions bargain for a non-contributory Pension Scheme for people who are to be recruited in future without any sacrifice or contribution from their side. Is it not strange? Let you be the judge.

I have spent about Rs.3.00 lakhs out of my terminal benefit on Printing Postage and stationery to bring the issue of Pension to the present status. While unions say that they have no commitment or responsibility to retired employees, one retired officer has spent huge money and efforts lasting for eight years to secure Pension Benefit to those working when the unions they subscribe to remained non-performing on it.

Union is strength. Unions in might Union is right. Split among the different unions alone created the issues. Let a change of heart take place among the leaders so that they work for the real benefit of the members

The option is not a second option. As per the presnet Pension Scheme in operation in Banks ( sans the clause enabling forfeiture of entire past services for participatiuon in strike) no employee has got an option. If the existing Pension Scheme is implemented in letter and spirit, all are entitled to a fresh optio n which is the "first option" itself. It appears to be ridiculous when one calls it a second option. If they fail to sort out the Pension Issue separately people may start calling them UFBU assigning the expansion"Unscrupulous" for U

C N Venugopalan , Ex-Manager, Union Bank of India, "Nandanam" Kesari Junction, North Paravoor-683 513 Kerala- contact No. 0484 2447994 or 9447747994.; June 25, 2009 at 8:19 PM
nimbalkar said...: Once Bank employees salary was equal to College Lecturers and many left the colleges and joined the banks.
Today the leaders who are in charge of talks are submissive and themselves admit that it is of SSLC standard and say we could not get more.
Today a bank employee gets Rs 7500 as initial salary including all others DA etc
This is nowhere seen in any type of industry and everyone gets more.
Totally bank employees movement lost their entire bargaining power and it is criminal waste to allow these leaders to conduct wage parleys with IBA.
These elderly people do not leave the organisation but still are sticking to higher posts and never raised any " minimum wage concept " but are bargaining for 15% from Rs 7500 which may be around 1150 rupees.
Beggars or corrupt these leaders !
Let the paycommission come and decide the bank employees salaries
Let us chase these people to their home!; July 24, 2009 at 6:10 PM
nimbalkar said...: 1)Original Demand was for a rise in salaries of 40%. Many substaff promotives are not aware of anything

2) Today the leaders have come down to 20%

3) without taking any referundm are the leaders are right in reducing the demand by 50% ???

4)Simply because they have a mandate whether they can do any type of acts which are totally detrimental to the employees??

5) Officers organisations are atleast stubborn on 30% rise but these comrades are ready to agree for anything

6) beggars among us are propagating that officers org are stmbling block to the settlment

7) By making uneducated persons by substaff promotion the leaders are free to anything without anyone questioning
Worst scenerio in bank unionism; July 24, 2009 at 6:17 PM
ashwani said...: UFBU leaders are chor, they need to be beaten for betraying employees. When IBA is taking so rigit stand why UFBU leaders are not calling for indefinite strike . It shows they are hob nobbing with IBA for Directoship in banks. UFBU leaders are dalal of Govt. that is why they are agreeing for 17.5%. Bankers deserve at least 60% hike for parity with govt. besides working hours be reduced and 5 days week formula be implemented.All abnkers let us unite and resign en masse to form a non members association.
I have left the association. come on and join me.
Our demand is as under
60% increase in BP+DA
30 HRA
52 days bonus for working on saturday
360days leave accumulation
transfer allowances Rs.50000
children fee and medical reimbursement; October 9, 2009 at 6:07 PM
Unknown said...: Let All the existing (serving)pension optee bank employees unite and think to file a writ. Why they should bear the load of sharing pension burden of all those who retired in 1995 till date? SBI has refused to sign that they are having third option so they should not bear the load. Working on same logic why serving pension optee should bear the load. Due to this pension load (since 1995/96) wage revision is not equatebly justified .Even if second option of pension to be there it must be from the last settlement due i.e. 2007 November or at the most from 1.1.2007) Even in that case existing leaders who are CPF optee can get pension option It should not be given definately for the persons who retired before 2007; December 6, 2009 at 8:04 PM
CUSTOMER CARE FOUNDATION said...: Let us make issue simple by saving time and energy, let the Central Govt., direct IBA to give hike like it done for its employees and restrict timings strictly as mentioned at the branches. So that Bank employees will be hale and healthy if not as much as Govt employees at least better then now. Bank employees are facing additional health problems because of pressure and tension due to financial risk etc.; March 16, 2010 at 8:04 PM
C N Venugopalan said...: C N Venugopalan
Ex-Manager, Union Bank of India
Nandanam
Kesari Junction,
N Parvoor,
Kerala – 683 513
Phone. 0484 2447994 Mob: 9447747994 E-Mail: ceeyenvee@gmail.com

No.20100611 11th June, 2010

The Hon'ble Minister for Finance,
Govt. of India,
New Delhi

Sir,

Fresh Pension Option to Bank Employees –
Government shall not offend the Constitution and substantive law

I invite your kind attention to letter No. PMO ID No.9 3 2010 – PMP4 164953 and 164954, both dated 2nd June, 2010 from the Prime Minister's Office, forwarding my letter Nos. 20100511 and 20100511 (a) dated 11th May, 2010 to your office for appropriate action.

The Government that evolves out of the magnificent Constitution of the nation has the responsibility of conserving and protecting its grandeur by ensuring various guarantees like right to equality of the citizens besides its own sanctity. For the very same reason, the Government has to secure the various assurances and guarantees relating to equality of the people of all manners to place itself at the pinnacle of glory. The Government itself becoming a party to creating circumstances in which a certain community feels totally aggrieved will not be able to retain its sheen. The aggrieved will tend to make a hue and cry and will ultimately be driven to Courts of Justice for redressing their grievance resulting in huge influx of petitions in Courts that are already saddled with heavy backlog of cases.

IBA and Bank Unions have concluded an agreement to extend a fresh Option for Pension to those who could not exercise it when offered in 1995 because of the presence of an adverse chapter providing for forfeiture of entire past service of an employee in case one participated in strike any time. Though fresh option was legally mandatory to be extended to them when the particular clause was scrapped from the Pension Regulations in February, 1999, Public Sector Banks fraudulently kept the amendment in camera and failed to comply with the legal requirement and deprived majority of bank men of their legitimate right. Albeit the fact that the draft Pension Regulations of 1993 and the Final Pension Regulations sanctioned by the Government categorically stated that "an option once exercised shall be final and irrevocable", banks revoked the options of some employees (including me) exercised in response to the draft Regulations. This was done at the behest of IBA which is a mere voluntary organization of banks and had no powers to overstep the authority of the Government. IBA and Bank Unions, through their whimsical actions, evolved several queer banking equations, proving themselves as totally incompetent to address wage related issues of bank men. If the government goes by the recommendations of IBA – to be better called Indian Blunder Arcade- its very image will be get tarnished soon. It has become imperative that the Government set up a separate Pay commission for the Bank employees for determining the compensation for labour in the industry as in the case of Government servants.

contd/......; June 13, 2010 at 10:43 AM
C N Venugopalan said...: Now that the Government is examining the modalities of extending fresh Option for Pension, it is inevitable that the absurdities are eliminated and full justice is rendered to the people who have been stranded in life for want of income after serving the banks for making what they are now. I felt is desirable that proper feed back on items of strategic importance be given to MOF as otherwise, the wrong implementation of the scheme may generate an impression among the banking community that the MOF and the Hon'ble Minister heading it are devoid of the requisite faculties of mind. With a view to preventing fresh anomalies in the process of implementation, the following items deserve special attention:-

1. Banks are alleging deficit in Pension Funds and lack of financial muscles and make an attempt to recover from the beneficiaries of Pension Scheme a substantial amount from their wages. This has no locus-standi. The simple question that pops up is "what banks and Government would have done if every one had opted for Pension when offered initially?"
2. The recovery of Provident Fund (employer's share) paid at the time of retirement together with 56 percent on it from the retired is a gross anomaly. While commissioning the Pension Scheme in 1995, all those who retired from 01 01 1986 were given its coverage on refund of the CPF paid on retirement along with 6 percent simple interest. This is having precedence and if it is done, it will bring in some amount of fair play. One who retired 10 years back paying 56 percent of the CPF ( say on Rs.2.50 to Rs.3.5 lakhs) may not be suffering much, but one who retired recently say in 2009 also paying back the same 56 percent ( say on Rs.7.00 to Rs.9.00 lakhs ) will be the worst victim of the stipulation. The former must have at least enjoyed the interest on the amount while the latter has not at all. Subjecting the latter to such an irrational payment is vitiated by gross injustice. The envisaged recovery as also its modality is equally not maintainable.
3. Pension is payable under one and the same Pension Regulations. Recovery of a levy from one segment is illegal as another set of employees are paid pension without the levy.
4. While concluding the pact on Pension, the date from which Pension is payable to the already retired is reportedly fixed as 27th November 2009, the date of signing the pact. This deprives the beneficiaries of the Pension payable to them from the date of retirement to such arbitrary date, albeit their legal eligibility to get the same. In my own case, the amount of Pension forfeited through the pact would be Rs.9.00 to Rs.10.00 lakhs for the past eight years. If the bank and the government are to snatch away the pittance payable to an employee on retirement for its functioning, it poses a big shame to the great nation. The wage pact was one to be signed much earlier and the undue delay in signing the same has also put the beneficiaries to the loss of pension for the delayed period as per the "black pact". When one set of people who have done the same work for the organization are paid pension from the date of their retirement, denying the pension payable to the others till the arbitrary date is quite unfair from legal and social angles. It is heard that the date is agreed upon at the instance of the Hon'ble Finance Minister after the parties to the pact consulted him. If so, it can cast a shadow on the reputation of the Minister who himself is a legal luminary and a versatile genius and the decision takes things to the nadir of ethics.; June 13, 2010 at 10:43 AM
C N Venugopalan said...: 5. As per the Pension Pact, the commutation will be allowed as on the date of the option and not on the basis of the age at the time of retirement. This runs counter to Pension Regulations as subsequent amendment of the Regulations in any manner infusing fresh conditions will be as futile as patching a hole with darkness. Commutation is, in all fairness to be reckoned on the basis of the age at the time of retirement and not from the date of option as there is no enabling provision so far in the Pension Regulations. .
6. Recovery of 2.8 times the revised pay of November, 2007 from those who are in services is also not justified in any way as their counterparts who are already in Pension Segment are not made to pay the levy. Fact remains that when pay revision took place every time, a portion of the load factor was taken from the PF Optees and Pension Optees uniformly and placed in Pension Fund of Banks. Courts have viewed Pension as deferred wages and once again taking a fresh levy, that too from CPF optees alone for placing them in Pension Scheme is irrational. A number of suits are already filed in different parts of the country already by the victims.
7. The key industry is perpetrating inequality in compensating labour since three retirement benefits viz. Pension Gratuity and CPF are paid to employees in government run Allahabad Bank while those in other stronger PSBs banks paid two benefits only. The position obtaining in State Bank of India is also similar to that in Allahabad Bank. How can one reconcile if pay and allowances in MOF is different from that obtained in another Ministry.

The various legal aspects relating to the fresh option are reportedly being examined by the MOF in consultation with the Ministry of Law and Justice now. In order that righteousness is established in the process of implementation and the possible huge influx of petitions in various High Courts are prevented, it is felt essential that the recovery of 56 percent from the retired, 2.8 times pay from the working etc. are dispensed with and commutation is permitted on the basis of age at the time of retirement while extending fresh option. It is my humble submission that the Government shall not inflict an injury to the Constitution of the Country and to substantive law placing itself on Achilles' heels while dealing with the banking community that has contributed their mite to the Financial Sector in a great way. If instructions have already been issued, they may please be revised in a befitting way.

It is also pertinent to say here that the six days working bank men are paid a pay hike of 17.5 percent alone when the five days working government employees were paid 40 percent hike which is 229 percent higher than that of bank men. The proposed variable pay in baking industry is also fraught with serious repercussions as it will result in erosion in income when those who pleased the immediate boss will be paid lavishly.
.
I am enclosing a copy of the letter, Former Justice of Supreme Court Mr. Krishna Iyer had addressed to the Hon'ble Prime Minister in relation to fresh Option of Pension to be extended to bank men. A copy of my letter is also marked to the Ministry of Law for their information for doing the needful. It is my earnest desire to roar the slogan "Bharat Mata Kee Jai" as done hitherto and not "Weep, Weep Mother India".

I earnestly request you to consider the various matters at length and to have me a line in reply.

Thanking You,

Yours faithfully,

C N Venugopalan

cc.to:-

The Hon'ble Minister for Law and Justice,
Government of India, New Delhi; June 13, 2010 at 10:44 AM
C N Venugopalan said...: Retires and working may send a Requisition to MOF under RTI Act
Working may send it in the name of spouse/relative. This will help us avoid the 56 percent recovery, 2.8 times recovery etc

From
…………………………… Place:
-------------------- Date:

The Central Public Information Officer,
Government of India,
Ministry of Finance,
Department of Economic Affairs,
North Block
New Delhi 110 001

Dear Sir,

Requisition of Information under RTI Act, 2005

We invite your kind attention to letterNo.20060611 dated 11th June, 2010 Shri C N Venugopalan of Kerala has addressed to the Hon'ble Minister of Finance pointing out the anomalies in extending fresh option for Pension in Public Sector Banks.

The following anomalies in the proposal made by IBA have been listed out and brought to the attention of the Hon'ble Minister for his consideration:-

1. Recovery of CPF and another 56 percent on it as a contribution for pension coverage to retired
2. Recovery of 2.8 times November, 2007 pay in the case of the working people
3. Forfeiture of Pension from the date of retirement to the arbitrary date of 27 November, 2009 in the case of the retired.
4. Releasing commutation benefit without reckoning the age at the time of retirement.

Pension is an already sanctioned benefit to the bank employees which had been taken away illegally through the wrong implementation of the scheme and is not at all a new benefit. Whereas the Pension Scheme has been one and the same and Government and Public Sector Banks irrationally burdening one segment of employees alone totally lacks propriety. Such an action will constitute an offence upon the magnificent Constitution of the great democratic nation and on substantive law. Government approval for the illegal recovery recommended by IBA will go to prove that the oath of office the Hon'ble Minister has taken while swearing in "to treat people of all manners alike" gets breached.

I request that the action the government has taken to do away with the anomalies and to render justice to the bank men may please be intimated. The action report on the letter either separately or in the form of the notings on the letter under reference may be made available to me. In case the anomalies are eliminated in tandem with the provisions of the constitution and of substantive law, furnishing of the information sought will stand waived.

The prescribed fees for supplying the information is sent herewith

Thanking You,

Yours faithfully,

(Name)

Encl: Postal Order No.___________ dated _________ for Rs.10/- payable at N Delhi in favour of CPIO, MOF; June 13, 2010 at 10:46 AM

Sunday, February 22, 2009

Bank Employees' Wage Revision Talk Fails Again

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