Thursday, October 22, 2009

Bank 9th Bipartite : Bank employees may have to wait little more for pay hike.

There is always a slip between the cup and lip, as they say. And for nearly 8 lakh officers and employees waiting for their wage hike , the gap may not be bridged in a hurry. This is even as the Indian Banks Association (IBA) and United Forum of Bank Unions (UFBU) have agreed upon a 17.5% wage hike.

But, there seems a devil hiding in the details of the proposed option to join the pension scheme for those who are out of the pension net currently. Issues like accounting for the cost of pension and its cost-sharing arrangement between bank management and employees have cropped up which is delaying the entire negotiation process. The wage revision is due from November 2007.

For starters, IBA and UFBU have now agreed upon a 17.5% wage hike over the establishment expenses of banks as on March 31, 2007. IBA, the body for the bank management, has also in principle agreed to offer the pension option to those who did not opt for it in 1993. Around 2.66 lakh public sector bank employees do not get monthly pension.

Even after agreeing on the second pension, IBA has put fresh conditions. It now wants employees to share a burden for building up the pension corpus. Then, the proposed introduction of New Pension Scheme (NPS) and variable pay are still need to be resolved, said All India Bank Employees Association (AIBEA) president Rajen Nagar. AIBEA is the largest bank union.

Top bankers who are part of the wage negotiation did not want to officially comment at this juncture. Yet, they have confirmed that IBA has agreed in principle to offer the second option for pension.

For the second pension option, banks (barring SBI) will have to shell out an additional Rs 6,000 crore collectively. IBA is also likely to consider pension option for bankers who retired before March 31, 2008 and are out of the purview of pension scheme.

Although, both the parties have in principle agreed to the core issues, some details are yet to be worked out, said State Bank of India’s employee’s association s general secretary for Bengal circle, Shyamal Karmakar. However, this pension issue does not really bother SBI employees who are always entitled to pensions.

However, UFBU -- the umbrella organisation for nine leading bank unions -- is not also comfortable with the IBA s proposal to introduce NPS for bankers joining after April 2010. We want the old pension scheme to continue till October 31, 2012. We have committed that unions will discuss the issue of NPS after this. Mr Nagar said. Incidentally, the ninth bipartite settlement will be valid till October 31, 2012.

We are also against the concept of variable pay. It deteriorates performance rather than improving it, Mr Nagar opined.

Source : Economic Times.


chandan said...

Why this 'TAMSA' is going on Today, Tomorrow & Day after Tomorrow etc.Look where we stand as on date.SHAME.

Comparison of Salaries of Bank Employees and Central Government (CG) Employees
Clerk ** (CG) Clerk - (Bank) Officer - (CG)
JMGS- (Bank) Executives - (CG) Executives- (Bank)
Basic Pay
5200.00 4410.00 15600.00 10,000.00 37400.00 20480.00
Grade Pay 1900.00 0.00 5400.00 0.00 8700.00 0.00
DA 1562.00 2160.90 4620.00 4,900.00 10142.00 10035.20
HRA 2130.00 661.50 6300.00 1,500.00 13830.00 3072.00
Conv All 1000.00 105.00 1000.00 0.00 1000.00 0.00
CCA 0.00 375.00 0.00 540 0.00 540.00
Edu All 1000.00 0.00 1000.00 0.00 1000.00 0.00
Total 12792.00 7712.40 33920.00 16940.00 72072.00 34127.20
Ø Salary has been calculated from ENTRY level which will keep on increasing (and also the difference!!).

Ø Salary has been calculated for Metro Cities.
Ø Officer in Bank are scale I to scale III.

Ø Executive in Bank are Scale IV and above.
Ø Education allowance calculated as minimum(For one child while it can be availed for 2).
Ø Difference shows how far behind we are in comparison to Govt Employees.
Ø Executive of Govt are Pay band -Scale 4 officers.
Ø Conveyance All varies from post to post and place to place it has been taken minimum.
Ø **Central Govt LDC has been compared with bank Clerk.
Ø There is automatic switching over to next scale after every 10 year in central Govt.
Ø In bank officer gets lease and petrol allowance which is also not sacrosanct.

r rajendran woraiyur trichy said...

we are proud to say that
we are indians fortunately
within the golden fingures of
Bharat Matha whereas
we are ashamed to say that
we are bankmen unfortunately within the iron fingures of
IBA representing
Bharat Mathaki Government.
Oh God! still you are alive...

rajendran r pnb

H.R. Dhiman said...

UFBU & IBA are playing the game of hide and seek and lacs of bank employees are being made fool. No body can be held responsible but we the bank employees are only responsible as we are following our leader who are playing in the hands of the management ang government. How strange Pilots who had no organisation,can compell their management & govt. to consider their demands within 24 hours, but we people who have a umbrella organisation like"UFBU" are "begging" for the last 2 years but all in vain. It will be possible only when new leadership emerges but when, god knows.......

sudhakar said...

As H R Dhiman has said, we are royal beggars. IN AP, a MP slaps a Manager, a district Collector orders the Bankers in a district to report progress of implementing state government schemes on monthly basis as his promotion is based in this parameter.Our Regional Heads and Head Office will bow to them shamelessly for their personal goals mortgaging the self respect of branch managers. Let us pray for the wisdom of our leaders.

sukhi said...


BALAN said...


From the ET news posted in the blog regarding wage negotiation process it is very clear that Government/IBA is buying time under one pretext or other in the name of load factor, costing pension etc thereby creating frustration among the cadres. Also this amounts to sidetracking from the real issue ie parity with central government employees. If the IBA is going on delaying this process at one time UFBU will be forced to accept the package already offered by IBA on 24 September 2009.
There is justification in getting pension for the persons who were not opted earlier because of the intelligent calculation that AIBOC/BEFI circulated advising the then younger employees to opt for PF.
The stand of the UFBU in regard to new pension to new employees regarding cut off date of 01.04.2012 instead of IBA s proposal of 01.04.2010 is immature. Non acceptance of the new pension even to the future staff is one thing and just getting it postponed to another two years is another thing. This lacks conviction.
Considering the carry forward load in the years to come when the central govt itself has opted for new pension to its employees, where is the chance for bank men to get the scheme undisturbed. This issue has to be addressed without prestige issue by the leaders and cut off date of 01.04.2010 should be accepted as ALL THE EMPLOYEES AS ON DATE IS GETTING PROTECTED. New employees are going to be employed with higher merged basic pay . If this is one hurdle means it is the fault of UFBU not IBA.
Having shooted out a beautiful letter to MOF by AIBOC leadership seeking parity wih central government officers , there seems to be no follow up .
There seems to be some unnoticed agenda as SBI packed AIBOC and NCBE wants higher pay and they are not taking new pension to new employees concept lightly. Not only the existing difference in pay that persists should be protected but also the equivalent amount of additional increase because of the unnecessary concept of pension load to nationalized bank employees because of the second option and pension to retirees who opted for pf , is delaying the issue.
Last time even on the strike day IBA jocularly withdrew the offer already made and made a mockery of the bipartite system. IBA is deriving guts to reduce offer even on the day of strike. What does it mean ?
When millions of state , central, public sector employees got fantastic wage revision at a huge burden to the public exchequer why this partisan treatment to bank employees. If the answer to this question may come through court THEN UFBU should explore that possibility also as the balance sheets are sound and can absorb the wage /pension burden .Let them say GOODBYE to this bipartite and seek justice by engaging eminent juries.
Let them also say goodbye to the proposed march to parliament against banking reforms which is causing irritation to GOVT who wants to make some reform in the banking sector. Accept some reforms like consolidation and out sourcing etc which have direct impact on establishment expenses. Unless and otherwise the attitude of the unions change nothing is going to materialize as this blog will get letters and comments from the frustrated bank men.
(tobe concluded)

BALAN said...

Liberal Salary increase to governmemnt employees since IV th pay commission is because of the change in attitude of the government in favour of its employees. That legacy is continuing and pouring as benefits.
Money /load will not be a constraint factor to the government if the attitude of UFBU changes. If unions cooperate with the government in implementing some of the reforms so as to please the world bank, then government will automatically climb down and settle the issue. If we accept for merger then it will be very good for all. No repetition of LEH MAN BROTHERS OR CITI BANK ETC will happen in INDIA because we are governed by strong RBI policies. This simple factor is very well known to both sides. If it appears to be a compromise or a set back it has to be accepted in the overall interest of bank employees and officers for betterment of the service conditions.
We once again safely presume that even congressmen will not accept complete reforms that may be proposed to the dictate of the world bank. What ever possible wherever there is direct link with the cost in the interest of the employees if it is the only way has to be accepted. It need not be construed as surrender of right but the need of the hour if government wants. If we are not going to achieve parity now by sacrificing certain principles it will never be achieved in future as DA INCREASES GAP ALSO WILL SUBSTANTIALLY GO UP.


Parameswaran said...

IBA and UFBU are simply dragging the issue. None of the settlements in the past have been settled within 2 to 2.5 years. The same thing may happen this time also. But this all other sectors have got wage increase but the poor bankers are still fighting for a lesser increase when compared to other employees.

RAJIV said...

The bankers should not accept and bycot the hike of 17.5% in salary and strongly oppose for this pitty hike with goverment in simillar way as our defence personal, has done after the implementation of 6th pay commission

I also request to all public sector bank employees to de-throne our leader, they are simply worthless.

Indian Bankers said...

Dear sir
I have a few questions to Union Leaders.
1.When the officer Association took the mandate for Settlement.
2.In Brazil the Unions have put the Settlement for vote.Why not the same process in India.

All young Officers are requested to Joint the forum which we can create to save ourselves from the clutches of these Old Generation Union Leaders/IBA.Who do not know todays harsh realities of Banking of today.These Union Leaders will never know these realities as they are fully concentrated on their share of pie.
They just loot the money given by subscribers.They should also follow corporate governance norms and publish the Balance sheet for transparancy.

Wage revision shall be taken up by unbiased third party who have sense.

workplace bullying said...

The bank employees were very eager about the wage revision. After 24.9.2009 it is slowly fading. No sensible person will digest the UFBU circular in its hidden contents and the bare truth that for the past 2 years nothing is done. A few retirees in the negotiating team seems to be sharing their leisure time with IBA for some thing else and not the benefit of the bank employees in total. Therefore, let all the bank men agitate with one voice to call for indefinite strike from 25th Nov till the demands are met. Also let us bank employees call upon the leaders to disclose their assets, amount of TA and Halting allowance they claimed for the meetings with with IBA. Further let us all resolve to stop subscriptions to the respective trade unions till the present negotiating team of UFBU is dissolved and a new team is formed.

C N Venugopalan said...

The Editor,
Economic Times

Dear Sir,

This bears reference to the ET Bureau report dated 22nd October, 2009 “Bankers may need to wait a little longer for wage hike”. The MOU dated 25th February, 2008 between IBA and Banks to settle the issue of Pension Option within 3 months from then is breached and the wage hike of 17.5 percent agreed on 7th August 2009 is pending on account of fresh item like variable pay. The burden of Rs.6000 Crores for fresh option on Pension in PSBs other than SBI is a mere statistical gimmick created through an actuarial exercise at the behest of IBA. Chapter III clause 7 of Pension Regulations dealing with Composition of Pension Fund mandates a contribution by the bank at the rate of ten per cent per month on the pay of the employee. But after transferring the then available employer’s contribution of CPF of those who opted for Pension into the Pension Fund in 1995, banks did not make the envisaged contribution in the subsequent period. A wide gap of 14 years is made all along, during which period more than Rs. 60,000 Crores of establishment expenditure was converted into profits and distributed as dividends and / or kept as reserves. Banks would have abundant Pension Corpus if the amount diverted is made good. Paucity of funds to meet Pension Bill is a lame extenuation for the key industry when banks have become vibrant with excellent working results. Banks like SBI and BOB had sought independent wage talks saying that common wage talks at the behest of IBA would not render justice to their employees. Dhanalakshmi Bank, a small private bank from Kerala standing under the umbrella of IBA has granted pay hike of 30 percent to the workmen staff and 40 to 50 percent to managerial staff ahead of finalization of common wage talks by IBA.

Fresh option of Pension is an independent issue which has to be sorted out separately. It can not be called a “second option” since no one has been given a chance to opt under the Pension Regulations (sans the clause enabling banks to forfeit the entire past services of an employee for participation in strike) in force now. Options were called for and registered, keeping the penal clause in the Regulations which was later scrapped on 27th February, 1999. Majority could not opt for it on account of the presence of the deleted clause at the time of option. When the clause was removed, a fresh option was mandatory, which banks did not allow and unions did not demand. In the case of some employees who had opted for Pension in terms of the draft regulations and took exit from the scheme when the final regulations sanctioned by Government and adopted by Boards infused the penal clause, banks revoked the options in spite of the fact that “options once exercised were final and irrevocable in character” and Regulations never contained a provision for revocation. All actions are vitiated by illegality. All those on rolls of banks at the time of commissioning the Pension Scheme are legally entitled to a fresh option. Propriety is lacking when IBA and Unions are making a fuss about an already vested right and delaying clearance of fresh option as also the agreed wage hike.

It is strange that banks which evolved and function on the sole premises of some law do not pay heed to legality in the process of functioning. VRS retirees of 2001 who were denied the promised benefit of notional service of 5 years for reckoning pension able services were driven up to the apex Court for solace. Unions kept silence when agreements were breached in respect of the retired. Even as Supreme Court passed the orders to pay, implementation was subjected to Board sanction and delayed. In the case of those retired 8 to 10 years prior to 31st March, 2008 without pension, their hardship is prolonging as IBA and Unions mixed up the independent issue of Pension with Wage talks making it a vague jumble.

C N Venugopalan said...

UBI headed by IBA Chairman spent about Rs.800 Crores for change of logo and related expenditure on ads. One tenth of the amount is sufficient to pay Pension and arrears to all retirees who does not have the benefit.

Even as all banks are making huge profits on a progressive basis, that extenuate projecting a gap of Rs.6000 Crores for all banks taken together.

IBA is making an attempt to convert its name as Indian Beggars Association/Indian Brigands Association

PRAKASH said...



Dhanalaxmi bank employees a prvt bank increased 30 to 50 %

sukhi said...

A new union should be formed CONSISTING OF OFFICERS BELOW 40 ONLY independent of these UBFU leaders which should bargain with IBA

Parameswaran said...

How much time they will take to resolve an issue which exists for the last 13 years. As rightly pointed by commentors the govt is simply writing off crores and crores of rupees and declaring dividend at the cost of employees welfare. Why they are behaving like this. Government's intention to wipe out the public sector banks by not having qualitative people.

Rajesh said...


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%
(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.

IYER said...

We bankmen are worried about the undue delay in clinching a decent wage settlement. It is time, all concerned - both IBA as well as the negotiating committee members come out with a WHITE PAPER on the status of the settlement and present a ROAD MAP with definite time frame to instil confidence in one million hearts which are presently reeling under frustration and deception!

Shridhar said...

wage revision/pension issues discussions are being held for last
24 months but no we have
forgotten by the time it reaches conclusion next settlement will be due.leaders are doing holding meetings with once in a month that to for one day and in every meeting some new issues are coming up no final decision once sharing of pension cost 30/70 agreed then why again that issue comes in the now what is the inform the members.any strike or agitation program you are contacting members and now why not informing members the developments.

SR said...

Yes , That is the truth. These so called self declared leaders are working against the interest of all of us. They are just passing the burden on us to oblige their retired forefather who have made them NETA . These UFBU leaders are just cheaters.

The only way to stop the cheating by our own leaders is to stop paying monthly cess in the name of union subscription. These fools are living luxarious life on our funds and same time cheating us for the benefit of there retired fathers.

Parameswaran said...

I wish to say please do not curse the seniors. You will also become like this one day. Actually seniors are only suffering because of the wrong guidance given by the association/union. Had they been properly guided they would not have done this mistake. So please desist from scolding them. Only because of them you people are working now. Please mind it.

chandan said...

Parameswaran is very right on the subject of seniors.New generation bank employees should read atleast Twenty years past history of bank employees journey to a new horizon.Union is a bad necessity in banking industry in our country because of unfriendly management system. Without union concept no bank employee can survive in banking industry in our country.So before deliver any loose comment, plese be cautious.Please keep it in your mind that Unions are not business houses.Try to understand the difference that sixth cpc is before the election but nineth bps is after the election and the tide after election is againstthe bank employees.

rishikesh said...

yes no one should curse seniors as they are always to guide and what banking industry needs most.
DO NOT FIND SUPPORT WITH THAT 9TH BPS AFTER ELECTION.......THIS was due from 2007 much much before elections.
earlier during 80s bps interval was of 4yrs only but it was later converted into 5 yr gap giving logics that this one year is for pre talk now onwards there will be no delay.
another concern is that related news comes from different sources other than from where it should have originated.It allows gossips and rumours to spread in.

chandan said...
This comment has been removed by the author.
chandan said...

Refering to rishikesh, I like to mention that for last Twenty years, unfortunately BPS has been settled/signed after two years from the date of its effect.Many bank employees believe that intention of unions, to collect maximum union-levy on arrear amount of BPS drawn by the employees, is one of the evil reason behind this high drama.

BALAN said...


On this blog of late there is a tendency either to accuse the senior persons and also the persons who has not opted for pension earlier by the bloggers. They are also scolding the UFBU LEADERS BY USING UNPARLIAMENTARY WORDS showing their anger. This tendency is not full y justified. The concept of pension itself is a well thought measure and the same old persons were responsible for getting the scheme introduced. Due to some miscalculation around 30% of the employees were not opted at that time. Hence the leaders are fighting for it so as to get the benefits due for them.
It is not a question of not having the funds. When government is spending huge amount to take care of its employees and also announcing thousands of crores bailout package , they can consider the demands provided there is give and take attitude from the leaders side.
1. Infighting should be stopped
2. Superiority between SBI group and non SBI group also is palying some spoilsport
3. reforms should be accepted
4. positive attitude to the government policies should be developed without playing politics of their political affiliations.
If the above principles /compromise whatever name we may call is followed then the entire process will become easy and if not now atleast in the wage revision of 01.11.2012 we can attain total parity.
The bloggers if they have influence in the union should write constructive suggestions through their forum and help the leaders resolving this vexed issue before the end of this calendar year atleast.


Kundan said...

The 9th BPS is getting delayed only due to the short sightedness of UFBU leadership consisting of NON SBI employees. Its due to that pensio hitch the talks of 17.5% hike is all there otherwise SBI people not only deserve more but have got more by this time. Which they are getting delayed, hence SBI leadeship should strongly come out of UFBU banner and get its separate settlement.

sudhakar said...

Mr Balasubramanyam, I am also a retired banker like you and nobody wishes to accuse the seniors as we ourselves are seniors by now. The point is lack of transparency on the part of UFBU and commitment our earlier leaders had vis a vis presnt leaders. The present leaders are politicians not a trade union leaders hence the problem. Let us accept the truth

Neeraj said...

There is no need of pursuing the dialogues related with peanut wage hike of 17.50%. The bankers must get the salaries at par with their counterparts in the Central Government. The pension funds of all the PSBs should be surrendered to the Consolidated Fund of India and the responsibility of paying pension to all the bankers of PSBs be borne by the Central Government.The urgent need for upward revision of salaries for in service officers and employees can not be ignored by any stake holder in Indian Banking Industry. It is high time that the career politicians in the banks' trade unions should desist from taking stand on behalf of the bank officers and employees, until and unless they obtain prior consent from the entire membership of their respective trade union.

Aggrieved Bank Officers said...

This is the high time to settle the issues among UFBU 1st then only they should negotiate.One of the constituent of UFBU ,NCBE already signed some settlement with SBI Management therebye leaving AIBOC weak.They can not take decent wage revision now till this infighting is addressed.There focus is not on getting better wages,AIBEA is only focusing on Pension.Mr Venkatachalam is the architect of the same.
These leaders are silently cheating the young employee and nothing will remain for them if these leaders continue infighting.
First of all there should be a referendum regarding who should negotiate.In todays time Bank officer is not in a postion to negotiate with the Management as he can be shown the door any time.He do not have any protection,Retired clerks negotiate on behalf of Officers.Even they do not know how to place the matter before the IBA.They drink together and come back.Issue cosy circulars,see the website of AIBOC.They wrote a letter to FInMIN and forgot to follow it up.In the scenario only a pay commission can do the justice.
All youngsters should fight for parity with PSU employees/Central Govt Employee.
It should be equal pay for equal work as given by Pillai Committee while rationalising the pay scales of Bankers.
All youngsters please wake up.

Aggrieved Bank Officers said...

How to live well after wage settlement of 3% (effective for Bank Employees)
There are thousand of Bank Staff which supports the union’s decision of 10-12% settlement demand on a/c of there few years in Job, fear of transfer and running businesses. But there is a big number which is suffering because of increasing expenses which are not being met by current wage revision. As all of us do not have the courage to challenge the ongoing system let us devise some ways to beat the rising cost.
1. If you own a house, give it on rent and shift to near by slum. This way you will be able to increase your income.
2. Apply for a BPL ration card. As per new manifesto you will get Wheat and Rice for Rs.2 or Rs.3 per KG whosoever make the government.
3. Use Municipal Primary schools for the education of your children, if you cannot afford private and live in an affordable housing i.e.Jhuggi.Some day your child may become slumdog Banker
4. Use Primary healthcare center for medical treatment.
5. Use Public conveyance on maximum occasions.
6. Take tuitions at home.
7. Look for alternate jobs if you are still eligible for other central/state Govt . jobs.
8. Purchase cloths form Jama Masjid market at cheap rate.
9. Buy vegetables when the whole community finishes purchasing. You will get vegetables at lower price.
10. Mr.Venkatachalam will ensure that you follow all the above religiously .Some day Government will come out with some rehabilitation plan for Bankers (Beggars) i.e. waiver of Staff Overdraft, Staff Housing Loan, Vehicle Loan etc
11. If you have any other idea to save money please add and send back to us.

Bank Officers (Beggars Association)

IYER said...

While everybody is venting their anger, no person directly involved in the negotiation is seemingly bothered to come out with any comment. It is unfortunate. Leaders, please comeforward and offer your version. It is very urgent. Try to alleviate the mis-conception that prevail now. It is not good for all the stake holders.

Neeraj said...

It is high time that the bankers should come forward to protest against irrational wage negotiations. Let us organise peaceful rally , with or without the trade union representatives to convey our concerns to the government. We have seen in recent past that most of the employees' groups had to agitate to get the sixth pay commission salaries. Hence it is needed that we bankers should organise a structured agitational path starting from "work to rule " onwards to get the much needed compesation at par with our counterparts in the Central Government.

SR said...

Dear IYER Sir,

You are too optimistic. Do you think that your so called leaders will respond. Definitely not.

If you still have hopes, maintain it.

The Ideas of ABO are the truth of the day. Actaul cost of living have almost doubled since the implementation of 6th pay commission and we are fighting for 17.50%. It is really shameful.

IYER said...

My Dear SRji, It is not that I am too optimistic. I am also equally frustrated on the delay. And on 17.5% too. As you have rightly pointed out even 6th pay commission parity would not match the present price level. Of course it is partially compensated by way of DA increase, notwithstanding the fact it is also coming into our hands belatedly - after three months of actually spending more - with implications of income tax on it. But at the end of the day, we have been living in a system where these things are prevalent for ages. Again I am not advocating for learning to live with these predicaments. We can learn from our mistake and refurbish our organisations and infuse young blood into leadership and try newer things - it is of course a long drawn exercise. Unfortunately, how many of the rank and file are actively devoting even time on these vital issues? In fact, we bank men are neither devoted to our institution nor to our organisations. It is the real reason for our inability to get a decent deal.

It is time we all come out openly on the streets irrespective of cadre or banner to find solutions. My observations were with a view to give an opportunity to the concerned people to clarify the position.

Neeraj said...

Dear BANKERS, The pension fund at any point of time is not likely to be self supportive in the years to come even after the load sharing and reduction in present wage hike . The reason is simple, the number of retirees are likely to go up substantially in next three years and a huge outgo will be there towards commutation and perennial pension offsetting the fresh infusions in the form of employees' monthly subscription
and the CPF corpus of CPF optees,who are opting for second option of pension .Rising life expectency and the inflation indexed pension is not likely to be compensated by the earnings out of pension funds. That clearly leads to a situation,where ever increasing requirement of pension payments are to be made out of Banking Industry's future profits or by runniing down the Corpus Fund. In both the cases the working employees will pay the price by way of lesser salaries and lesser hope for a bstter superannuation package .Thus,there is an urgent need to highlight the fact that the Banks' have been an important tool for bringing social justice and for development of Indian Economy and the bankers deserve to be treated at par with the officers and employees of the Central Government. The bankers also deserve a superannuation package at par with the employees of the Central Government . The most suitable option available in this matter is that the Government should take over all the pension funds of the Banking Industry and pay the Pension to all the retirees of the banking industry like it pays to the Central Government employees.We need to put forth our demand in clear terms to the government in this direction.

Parameswaran said...

Pension can be paid from the existing resources provided there is no massive write off, transfer of huge sum for reserves and cutting down unwanted expenditure like spending for change of logo etc. As rightly said by Mr. Venugopal in these columns that banks are not providing anything for pension as agreed at the time of pension settlement. Let us talk about workable solution.

Neeraj said...

We have discussed intellectually, so far and arrived at conclusion that something has to be done. We have also realised that the trade unions representing bankers lack wisdom and will to fight for the cause of the bankers for a decent pay. Hence, we need to organise among ourselves in coming week/s to take up this issue. Let the bank officers and employees meet at all multi-branch centres across the country and prepare and send representations to the Hon'ble President and the Hon'ble P.M.for intervention into the wage revision process for bankers , so that the bankers get parity with the sixth pay commission's salary package.

chandan said...
This comment has been removed by the author.
chandan said...

Refer to IYER October 28, 2009 2:29 PM I like to inform that so called huge DA is also applicable to GOI employees,There present index is around 10 point less than Bank DA due to calculation system.Huge increase of price index will also reflect for GOI employees for Jan-2010, to be declared in March-2010 will be around 8% and from July-2010, to be declared in Sep-2010 will be around 9 to 10%. This is a reflection of Bank DA 59 slabs of Nov-09

BALAN said...


Because of the severe infighting among the constituents and (mis) calculation on pension option load by the MOF forgetting the fact that banks can take the entire load , there is virtual stalemate going on.The leadership failed to take note of the near boiling point situation among the members cutting across union affiliation.
Active blog members who are in service and who are having many more years to serve has to make some publicity campaign to educate our parliamentarians regarding injustice meted out to the bankmen. Some members can join together and collect the mail id of top personal political personalities mainly opposition parties .and allies of the ruling party plus influential mps of the ruling party etc so that they can call calling attention motions which may cause irritation to the government and they can speed up the matter. The e mail should contain the wage revision issue in detail including PCR and the glaring difference that may prevail even after the proposed wage revision. One impact is that the people should know what injustice is being meted out to the bankmen who were in a commanding position in 1970s and eighties. Industry should not go bad because of non availability of the talents of future who are going to be the substitute of retirees in the years to come


Nishant said...

The bipartite has become a big joke and the talks a big farce else what can explain more than a month delay ( 47 days to be precise) in resuming talks wid IBA post strike.... also after 24th SEP no talks have been held..... so the "talks" seems to be a big eye wash and a mere gimmick. Only big booming words but no action. It was never a wage revision rather it was PENSION REVISION. It seems we may see the 9th n the 10th settlement together.

sudhakar said...

Let us forget what has been promised and what we have asked for. Let us ask for at parity with VI pay commission in every aspect even by coming out from ID act and let us go for indefinite strike to achieve the same.Pensioners also should join to demand for updation as is given to government employees.

bhagwan said...

This delay proves our leaders help
IBA to DECREASE number of bank employees to leave their jobs to
govt. for privatisation and for their own benifits ,this directly shows politics and selfishness but they dont think that what impact will go to the society oh.......

Maha said...

Let have two common demands..

1. Salry should be paid at par with central Goct employees / officers.

2. If UFBU is not able to achieve it, Let us resign from the respective unions.

Neeraj said...

The issue of pay parity with the officers and employees of central government has become common agenda of every banker and the unions will disintegrate if they are unable to represent the common cause of bankmen. Parity in superannuation package for working and retired banker is also a common agenda.THERE IS AN URGENT NEED FOR REVISING PENSIONS OF RETIRED BANKMEN AT PAR WITH THOSE OF PENSIONERS OF THE CENTRAL GOVERNMENT. When there is a will, there is a way and the concerned authorities should not take away the right of a dignified living from the bankers.

IYER said...

A meeting of the UFBU was held on 04.11.2009 in Chennai.

1. 1. The meeting took note of the negative approach of the Government in relation to the revised scheme of compassionate ground appointment/financial compensation to the family of the employees dying in harness and felt that the scheme as discussed and finalized between UFBU and IBA should be got expedited.

2. 2. As regards the condition of the IBA that the entire cost of pension arising out of the wage revision to be adjusted from the proposed wage revision and that in the next settlement again another actuarial valuation should be carried out and the gap should be funded by employees sharing the same, after detailed discussions, the UFBU while rejecting the above conditions, expressed its view that the additional pension cost can be adjusted by sharing a portion of the same as was done in the 7th and 8th bipartite wage revision.

3. 3. Regarding IBA’s condition that a new contributory pension scheme should be accepted by the unions from 1-4-2010 as a pre-condition for extending one more option for pension scheme, the UFBU felt that a mutually acceptable solution should be worked out to resolve the same as unilateral imposition of such conditions are not acceptable.

4. 4. Regarding IBA’s suggestion for introduction of the concept of fixed pay and variable pay for bank employees/officers, UFBU decided not to accept the proposal.

Based on the above, the meeting decided to pursue the issues with the IBA during the next round of talks to be held shortly and to expedite the conclusions as early as possible.


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