1. Pension Option : In today’s meeting IBA informed that the report of the common actuaries relating to the additional cost for extending pension option to the past retirees from 1996 has been received which has identified an additional net liability of around Rs. 3,000 crores. IBA indicated that the issue can be resolved on the same basis as will be finalised for the existing PF optees who are in the banks’ service. It was decided to discuss the issue further.
However, IBA insisted that the new employees who will henceforth join the banks should be governed by the new pension scheme as has been implemented by the Government for new employees from 2004. From UFBU, we vehemently objected to this condition and demanded that the future employees should also be governed by the existing pension scheme.
In view of the divergent views on the matter, it was decided to discuss the matter further in the next round of meeting.
Regarding sharing of the additional cost, from UFBU we maintained our earlier stand that Rs. 1,500 crores can be borne by us while the balance by the banks. The IBA, while informing that they would like to resolve the issue by discussion, did not indicate any further offer than that was made in the last meeting.
2. Wage Revision : In this meeting, from UFBU we emphasized the need for a substantial increase in the offer made by the IBA. After discussion, IBA came forward to offer an increase in wages of Rs. 3,600 crores for the employees and officers put together as against Rs. 2,750 crores offered in the last round of discussion. We stated that the offer of IBA needs to be further improved substantially.
Preceding this discussion, in the morning session the IBA had another round of discussion with the workmen unions regarding streamlining the Special Pay Post in the emerging context of CBS system in the bank branches. It was agreed to discuss the matter further. Regarding IBA’s demand for a provision to dispense with the employees above the age of 50 years without holding any departmental enquiry in public interest, the same was rejected by the unions and IBA agreed not to insist on the same.
It has been decided that very shortly further round of discussions will take place on the above issues with a view to find an early and amicable resolution of our demands.
Source : All India Bank Employees Association.
24 comments :
The offer of IBA to extend the Pension Benefit to all retirees on the same lines as in the case of existing employees meets with uprightness. The sharing of Pension Bill by employees is absurd since it would make Pension Contributory for existing employees. It is absurd for Unions to demand non-contributory pension to future employees and onctributory for existing employees. Existing employees take the benefit by surrebdering their CPF earnings so far accrued.
C N Venugopalan said...
The offer of IBA to extend the Pension Benefit to all retirees on the same lines as in the case of existing employees meets with uprightness. IBA can correct past sins to a certain extent by doing so.The sharing of Pension Bill by employees is absurd since it would make Pension Contributory for existing employees. It is equally absurd for Unions to demand non-contributory pension to future employees and contributory for existing employees. Existing employees take the benefit by surrendering their CPF earnings so far accrued.
Retirees without pension have been waiting for years for another option. Any further delay, for whatever reason, is DENIAL OF JUSTICE & RIGHT TO LIVE. The issue should be settled immediately & arrears should be paid,from date of retirement,to save retirees from further debt & humiliation.Natural justice demands it .LET ALL CONCERNED OPEN THEIR EYES & SEE REALITY. TK Chandramohanan, Trivandrum .
IBA being the APEX body of the banks in India is like a mother and UFBU being the sole negotiator with IBA is like a father.
Imagine there are 2 sons and 1st son being already retired from the service, second son still in active service. Needs of first
son normally will be fulfilled by father and mother. Justice by any means prevails in according preference to the first son.
I mean to say the case of VRS retirees should be of utmost importance to IBA and UFBU which I feel is not really happening.
This is KALIYUGA. Father and mother patronising the youngest one leaving the eldest one in TRISHANKU.
My appeal to IBA and UFBU leaders, please treat both the sons equally and divide the share between the sons uniformly. PF optee VRS
retirees have toiled their life and because of some problems/ misgivings / misrepresentations by the unions leaders, these PF optees have not opted for pension earlier. It is in the interest of all that due importance and preferance should be given to VRS optees first and then the option for existing employees ( naturally they are benefitted with wage revision also )
I appreciate the Herculean Task of Shri CN Venugopal in single handedly fighting for this just cause All concerned are advised to take note of the ONE MAN ARMY WORK achieved by SHRI C N VENUGOPAL for this useful work which will help lakhs and lakhs
of retired and serving PF-VRS optees
CONGRATULATIONS MR VENUGOPAL once again for your VICTORY
Wage talks for banking industry failed once again on 21st February, 2009. Banks are making a foul bargain by mixing the Pension issue with the wage hike. Trade Unions evinced no interest to bring into effect the MOU of 25th February, 2008 to logically conclude the Pension matter within three months from then. It became a vague jumble and banks got an opportunity make a bargain for it against the future wage rise when unions failed to get the MOU implemented within the time frame.
Mr. M V Nair, CMD of Union Bank is heading the committee of Wage Revision representing IBA. In his bank, a sum of Rs.1000 Crores have benn spent for changing its logo recently. Ten percent of the amount so wasted would have been sufficient to meet the entire Pension Bill ( including arrears payable) to all those who are denied the benefit. When the Bank sent out nearly 4000 pepople through VRS in 2000-2001, It could easily pay an average sum of Rs. 9.00 lakhs to all the retirees as ex-gratia at the then existing profit level. Profits have increased five to six times now. The percentage of retirees from CPF segement through VRS is less than 10. The normal retirees from 1995 till 2008 would also be about 600 from the CPF segment. If arrears of Pension to all these people work out on an average Rs.9.00 lakhs, the outlay will be less than Rs.100.00 Crores, which is less than 10 percent of the amount wasted on the logo change.
Pension is not a new benefit, but an already granted one. A proper implementation of the Pension Scheme now in operation in letter and spirit in the Bank would vest with all employees a right to fresh option. It was originally offered with a clause for forfeiture of entire past service, if one participated in a strike any time resulting in majority of employees not opting for it. When the clause was deleted from the Pension Regulations, law cast a responsibility on banks to extend fresh option. But Banks did not function legally on the issue and failed to extend option. Moreover, they revoked the options of many employees exercised in terms of draft Pension Regulations, which were final and irrevocable in nature when the Pension Regulations sanctioned by the Government did not have a provision for revoking an exercised option.
Neither the Trade Unions nor the directors representing the officers and employees on board different banks perform their role to protect the interest of the community they represented. In the case of the retired , Unions do not have any responsibility or commitment. They cut off all relations no sooner does the subscriptions cease. All the retired are driven to Courts for getting their rights enforced.
Banks have devised Reverse Mortgage, a scheme for old aged to mortgage their house plot and to raise the money to meet subsistence in case their children fail to take their care. But the same banks ignore thier own people who are retired and deny them the Pension. Pension is the right to live of an employee, a right akin to fundamental right- and the item has immunity even from Court attachments. Then what about its denial altogether. Is it not a heinous crime that Banks do and unions abett through their silence? Fundamentals have eroded on the part of Banks and Unions equally and both are competing to deceive their own people. Is India travelling in the right direction even as the the democratic country is passing through the seventh decade of indepencence? Is freedom still not a Mirage?
Pity Mother India! Pardon the culprits!
-C.N Venugopalan, Ex Manager, Union Bank Of India
Dear Friends,
Gone through the coments of Mr.Chandramohan and of Mr. Venugopal. Nicely discussed the Wage Issue and Pension Issue
Venugopal has done a Herculian Task for establishing the rights of the working and the retired. He has cornered both IBA and Bank Unions. He used the unions as his weapon to beat the IBA and forced them to coorrect the past mistakes. Good work to be appreciated by all- retired and the working alike.
T K Baburaj,
Thommankudiyil, Marottichode, Kochi 682 024
Dear Banker friends,
Your Union leaders are cheating you. They are a group of hawks who had grown with your sweat and blood and have never done any kind of work in the Bank and are enjoying their service life like feudal lords. Bank employees are bonded labourers, who have surrendered their right to demand from their employers minimum wages for survival to a group of selfish bourgeoisies who call themselves as Comrades.
A leader is a person who sacrifices himself for sake of his people. Look at your Union leaders, whether you have heard about any such sacrifices done by them. Instead, friends you have sacrificed your life for their existence and survival. Look at the past wage settlements, your Union leaders have taken two to three years to settle your wage hike with IBA for getting a meager 10 to 13 % increase. Whether you really need a Union for reaching a settlement for such meager hike, that too after negotiating for 36 long months! What should you call such Union leaders?, NPAs or White Elephants!. They deserve no better name than “Brutus”. Don’t forget that still you have paid (or rather extracted from you ? ) to the Union leaders from your salary arrears.
Now, when the entire employees in Banking industry are anxiously waiting for an expeditious Wage Settlement, our Union leaders talk about issues like Pension option, transfer policy, compassionate appointment and privatization and nothing on wage revision. The public statements issued by the Union leaders after their meetings with IBA focus largely on the above issues. This sheer act of gross irresponsibility, reminds the infamous quote of the Marie Antoinette - the wife of King Louis XVI of France: "Let them eat cake, then!".
The last Nationwide Strike for two days in August 2009, which put the entire Banking services into a standstill, called by Union was not withdrawn by them even though one day before the commencement of the strike IBA Chairman has offered a 17.5% hike. Now, when Unions are going to settle the wage hike for 17.5% in the forthcoming meeting on 25th Sept 2009 at Mumbai, why should these Union Leaders be left scot free for the economic loss caused to the nation due to the two days strike, apart from the two days’ salary sacrificed by the bank employees. Still, these shameless leaders will approach you sooner to extract their share from your salary arrears.
Neither the Unions nor the Directors representing workers and officers on Board banks have done anything beneficial for the employees during the last three decades when the compensation to employees in banking sector nosedived in relation to that for the Government employees. Government employees who take their salary from the exchequer are paid 40 percent hike when bank employees who are in profit making segment whose wage bill is met by the concerned institutions are offered a low package. In 1979, PCR was introduced for standardising ( Cutting down) the Pay Scale in Banks to match it with that of the Government officials. Pay Commissions allowed reasonable hike every time and now the Government employees who work leisurely for 5 days a week (rather resting in the office) are given attractive salary when bank employees who toil for six days a week and beyond are offered a pittance as hike. This is the plight of bank unions.
As a result of the strike putting Pension also in the demand list, a MOU was reached on 25th Feb.2008 to settle Pension Issue within three months from then. The time frame got exceeded and eighteen months elapsed in place of the agreed 3 months. The delay gave a leverage to the banks to make a foul bargain on Wage Hike in the name of Pension liability arising as the independent issue of Pension got mixed up with Wage Revision. If Pension issue was to get cleared within 3 months, bank employees could have secured at least 30 percent as hike.
As per Pension Regulations, the Pension Fund is to comprise mainly of 10 percent of Pay of each employee to be contributed by Banks( representing the amount of CPF -employer's share). After transferring the CPF balance of all those who joined the Pension Scheme in 1995, banks did not transfer the envisaged 10 percent on monthly basis in respect of them. The amount was siphoned by banks and converted as Profits for past 14 years and distributed as dividends or kept as reserves. Unions had no say in the matter. Nor did the directors make any comments on it. If the amount is brought back, the Pension Funds would be sufficient to pay double the amount of Pension to all the retired. The formula of sharing Pension liability by employees is an absurd one for the same reason. Union Bank reportedly spent Rs.800 Crores for changing its logo when Rs.75 Crores would be enough to meet the Pension arrears of all the retired who now have no pension.
No one in the Pension Scheme now is to suffer any burnt for extending the benefit to their counterparts who are now left out by Pension Scheme. Leaders feel that fresh option is not viable financially. They were more concerned than the banks with the financial obligations. Any one is welcome to correct me in case any of my statements are wrong.
I invite you to visit the blog www dot bankpension dot blogspot dot com and to write to me over ceeyenvee at gmail dot com
C N Venugopalan Ex Manager Union Bank
The Current UFBU leaders are heading the Union from last 3 decades. and slowly Banker's wages slipped downward and now compare Central Govt and Banker's Wages. Banker's wages are below 50 %. Still they are our leaders. We all banker's have not realised that these leaders are useless, and doing no goods to Banking community. Current emploees are sacrificing their salary by striking and leader are not bothered about wages. They are bothered only about their pension only. How can they be our true representative. If their was no pension issue, we would have comfortably got 40% rise in wages. But due pension issue we will be getting at the most 17.5%. This is a permanent loss to current employee through out their career. We have been cheated by our so called leaders. These leader only convinced thier followers to go for PF Option. They chose the pension option in full conciousness, now since time has turn against them, they are forcing all current employee to bear the loss of their mistake.
This is the time to tell our leader, leave the issue of pension immediately and settle the Wage revision at least 35 %.
Very truly said aks. If the retirees are facing any problem, its only due to their own bad decisions taken for waht so ever reason in full hosho hawash. Wasn't it. then why are the union leaders spoiling the wage revision of younger ones. Shame on all of us to have such leaders.
Kundan's comment appears as having made without going into the details deep. The decision of the majority to stay out of Pension had a scientific basis. Unions have miserably failed in sorting out the Pension Issue as also wage revision of the youngsters. If they had succeeded in solving the isolated Pension Issue without mixing up with wage pact and to adhere to the time frame of three months from 25th February, 2005, they could have secured at least 30 percent hike this time. Both items are mixed up to the disadvantage of memmbers.
I dont have anything against retirees getting pension option, or anything, but it shouldn't be at the cost of youngsters.We were not responsible for 1) your not opting pension at that time, 2)Delay in sorting pension issue
BANK’s WAGE REVISION Mathematics
1. Initially IBA has agreed for Rs 6000/ Crore as wage revision Burden due external relativity (6th Pay commission recommendation). Later on improved up to Rs 7800 Crores.
2. Employee Unions raised the demand for pension Option. Option was converted into Pension burden calculation and sharing of Pension burden. Silently and conveniently External Relativity was ignored and lost.
a) Initially for current employee Pension burden (Rs 6000/ crore )
b) later on even for employees retired after 1996 pension burden Rs 3000 Crores.
3. Mathematics of pension is as follows
Assumption Rs 250/ crores is 1%
Phase 1 (figures in Crore)
Total Wages offered by IBA = Rs 7800/- (Approx 31.2 %)
Total Burden of Pension = Rs 6000/-
Out of which
IBA agreed pension burden = Rs 4200/ (deducted from wage offer)
Wage revision offer shown to us = 3600 Crores (7800 – 4200= 3600) (actually 14.4 %)
Employee to bear Pension burden = Rs 1800/
Net (Actual ) Wage revision offer is only = Rs 1800/
(Rs3600 -1800= 1800) = 7.20 %
High Lights of wage revision Agreement :-
1. IBA was ready to pay 31.20 % rise Rs 7800/ Crore
2. Full pension burden is adjusted from wage hike in either way.(7800-6000)
3. Unions wants to help even retired (after 1996) employee from this wage revision.
4. Net Wage revision offered is meager Rs 1800/ Crore (Aprox 7.20%)
5. If pension is actually given as an option Employee would get 31.20 % rise in wage which when compared with external relativity (Central Govt employee was given 33 % to 40 % Rise.) may be in acceptable limit.
6. Pension burden is fully loaded on Bank’s employees.
7. Decision of Retired employee burden (RS 3000/ Crores ) sharing is not clear.
8. In desperate bid to obtain 2nd pension Option, Union have opened a new way to IBA for sharing the future wage revision burden by employees.
9. This is not the pension option, it is burden sharing by Current employees.
10. Unions are silently playing against current employee interest, Members needs to be alert of development, and read all UFBU circulars carefully. And Act if necessary.
An Appeal
An appeal is made to all serving pension optee to unite & get prepared to file a writ against the pension load factor & present wage settlement. We ( present employees who are pension optee) should not share pension load at any cost. Those retired in 1996 or onwards and now want to opt for pension must share the total burden. (They don’t even deserve to get 2nd option for pension because CPF was there conscious decision ) We are not at fault they had taken decision to opt for CPF. They are increasing the load & as a result of which there is no compatible wage revision.
Our one step forward will save our future & dignity in the banking.
Let us unite and file a writ. Let us come forward .
write at : pensionoptee@gmail.com
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