PAY COMMISSION: Bank Bipartite Talk on 29.12.2009 : IBA meets Officers' Association in Mumbai.

Tuesday, December 29, 2009

Bank Bipartite Talk on 29.12.2009 : IBA meets Officers' Association in Mumbai.

Today(29.12.2009) at Mumbai, the second round of the Small Committee meet was held at IBA office, World Trade Centre, Mumbai.

The Small Committee of IBA was represented by Shri Jagdish Pai, Executive Director, Canara Bank, Shri B.B.Das, Shri Rajeev Rishi, Shri R.C.Srivastava, Shri Suresh Chandra, Shri K.Unnikrishnan and Shri M.Venugopalan, AIBOA, INBOC and NOBO were represented by Shri S.Nagarajan, Shri K.K.Nair and Shri S.K.Rathod respectively.

Responding to the proposal submitted by Four Officers’ Organizations on 10th December 2009, IBA provided a salary chart constructed on 2836 Index point merger with average 20% loading along with notes on outsourcing and pension specifying that 13% of the Basic pay of SBI officers to be kept separately undistributed which SBI will decide how to deal with the same.

In response, the association impressed upon IBA the need to have higher start of pay for officers considering the large scale dissatisfaction caused in the last wage revision, tax on perquisites etc. It was also stated that appropriation from the Industry level wage load to SBI on pension costing, leave encashment on retirement loaded exclusively, construction of pay scales with 11% loading with merger start at Scale I are unacceptable to the Organizations. With regard to outsourcing, it was stated that the associations shall revert to them after discussions amongst themselves.

While taking note of the view points, the IBA representatives assured to revisit the areas of concern and respond to the officers' organizations.

Source : All India Bank Officers' Association.

10 comments :

Unknown said...: irs,

Will you kindly answer to my following questions:-

1.If we had to accept wage rise of 17.5% and house rent 8.5% and so on what was the need for so much of high demand on all items in our charter of demand like 50% rise in salary and 30% HR and negotiating on such demands for 2/3 years, when the achievements are nowhere near the demands?.This has resulted in frustration for all in general and distress to the pensioners as you are prepared to accept prospective rise in pension for 9BPS retirees.

2.Is it legal to settle pension matters by UFBU or other unions as they(retirees) cease to be member of such unions on their superannuation etc.?. Therefore,in the fitness of things the respective prevalent pension rules should be the guiding factor.Please clarify leaders why
wage arrears is retrospective while pension is prospective? Why not the reverse?

3.While the gratuity ceiling fixation is in the purview of the employers ( in our case respective managements) why are we waiting for the union govt. to enhance the ceiling?

December 29, 2009 11:16 AM
Blogger workplace b; December 29, 2009 at 8:01 PM
BALAN said...: NEW MEANINGS FOR ABBREVIATIONS
UFBU UTTER FAILURE BANK UNIONS
IBA INTELLIGENT BARGAINING ASSOCIATION

NEW PROVERB FOR BANKMEN
LESS PAY MORE WORK MAKE LIFE MISERABLE

BALASUBRAMNIAN; December 29, 2009 at 9:53 PM
Unknown said...: Dear Sir,

Dont just crib at what is happenning. The union leaders are taking us for a ride. If we do not take action now, we pay all our life as the gap will widen so much that u will never be able to fill that with these retired union leaders in charge working for their own benefit. Below is a draft submitted by staf oof a public sector bank and 28 members have resigned on the issue. Please coordinate and take action. Talking only will not help now.

22.12.2009

Dear Sir,

Sub: Resignation from Union Membership.

Referring to the above matter, we have to say that 9th Bipartite Settlement reached by the UFBU has been unsatisfactory to a large extent and has unmotivated the young officers of the Bank. The settlement has not taken into account the actual cost of living and wage standards prevalent in the other public sector institutions. The wage increase is paltry and is not expected to support a decent standard of living associated with the respective designations over the next five years. Also, the gap between the bank employee wages and wages of other Govt. Services have widened over the years leading to an inferior quality of living when compared to personnel of same designations in other organizations. This has been mainly due to unfair bipartite settlements done by UFBU over the years. The expectations of young officers have been jeopardized by UFBU and we have lost confidence and faith in UFBU. We do not expect any amelioration in the present condition of the employees even in future with respect to wage negotiations with UFBU being the representing body of Bank Employees as the same is lead by retired officers who neither understand the expectations of serving employees nor reflect the true leadership of the bank employees. They have been using these platforms to their political and economical advantage by extracting a major share of these settlements for their own benefits without looking into the plight of the current serving employees. We are also against the mindless strikes being called by the unions that are deviating from the core issues of employee welfare. Moreover, these developments have left us demoralized and have shaken our spirits & expectations.

In view of the above, we hereby submit our resignation from the Union and we request you to stop the deduction of Union Subscription from our salaries with effect from December 2009.

Thanking You,

Yours Sincerely,

Sd/-; December 30, 2009 at 11:36 AM
Unknown said...: Dear All,

The so called union leaders that populate the so called "mighty" umbrella UFBU have always taken the members for granted and have made mighty promises before the MOU was signed.

The mighty promises considered of demands for the wage rise which is no where near the MOU which they have signed. Naturally this wage revision for bankmen is bound to and has already caused widespread dissatisfaction among workmen and officers considering vis-a-vis the wage increase in Central Govt. and various State Govts.

Even now the leaders talk of sacrifice, "tyag", etc., etc., and urge everyone to participate in futile strikes when some constituents of the UFBU are not even part of it. I would like to ask the leaders till what time the employees will have to undertake such "tyag" and participate in these useless strikes???

Let the wage revision of bankmen be taken care of by the Govt. from the next time. If not better than the Central Govt. wage increase, at least it will be equal to it the next time.; December 30, 2009 at 12:48 PM
Anonymous said...: Dear all why to participate in strike on futile issues.We have categorically informed our Union that we will not take part in a strike which is other than employee welfare/pay parity.
We took a stand and did not participate in strike on 16-12-2009.All of you gather some courage and dislodge these union and form a seperate forum which actually fights for welfare of employees rather than demanding more than 100% and settling for peanuts i.e.17.50%; December 30, 2009 at 3:03 PM
mohanlal52 said...: Dear experts,

I give hereunder the Views of Shri Sushil Ahuja and Shri T.N. Goel. I shall be glad if any one can advise who is right and how? Minutes of MOU regarding pension option is already known to you.

Regards

(I) VIEWS OF SHRI SUSHIL AHUJA
Beware of wrong statement
RS IN CRORES
(i) Wage bill of the Banking Indusry as on 31.3.2007 27520(iii)Wage bill of Industry minus SBI 19587
17.5% OF 19587= 3427.725
(vii) Share of Management in this cost 70% 6300
OTHER BANKS ARE GETTING 3427+6300=RS 9727 CRORES I.E. MORE THAN 40% THEIR WAGE BILL HIKE IS MORE THAN 40%
WAGE BILL + PENSION OF SBI
Wage bill of SBI as on 31.3.2007 7933 + 6.5 % DEMAND = 7933+515= 24% WE WILL BE GETTING ONLY 17.5% OF 7933 CRORES + 6.5% OF RS. 7933 CRORES I.E. 24 %.

(II) VIEWS OF SHRI T.N. GOEL, GENERAL SECRETARY SBIOA
Here is the correct position:
(Rs. In Crores)
(i)Wage bill of the Banking Indusry as on 31.3.2007 27520
(ii)Wage bill of SBI as on 1.3.2007 7933
(iii)Wage bill of Industry minus SBI 19587
(iv) Cost of 2nd Option of pension for seving staff 6000
(v) Cost of 2 nd Option of Pension for retired staff 3000
(vi)Total cost of Pension Option 9000
(vii)Share of Management in this cost 70% 6300
(vii)Share of employees 30% 2700
(viii)Cost per Year to Managements 6300/5 1260
(ix)Cost per year to employees per year 540
(ix) Pension cost as %age of wage load 1260/195.87 6.43%
(x)Employees contribution in Pension 2100
(xi)Contribution as %age of wage load 540/195.87 2.75%
(xii)Incremental cost of Pension on change of Basic Pay after wage revision appx. 3.50%
COST TO THE MANAGEMENTS
Wage revision cost to Managements 17.50%
Pension cost to the Managements of other banks 06.43%
Total cost 23.93% Say (24%)

BENEFIT OF WAGE REVISION TO EMPLOYEES
Wage Increase agreed by UFBU 17.5% Less incremental cost of pension (xii) above 3.5%
Balance 14.00%
Less employees contribution for pension 2.75%
Actual hike 11.25%
IN SBI BOTH FEDERATIONS ARE FIGHTING TO GET THE FULL
INCREASE OF 24%. HENCE THE DELAY

kindly examine; December 31, 2009 at 6:27 PM
Unknown said...: News is that there will be a meeting with IBA on 6th Jan 2010. Let us hope pay structure will be finalised on that day.; January 3, 2010 at 4:46 PM
C N Venugopalan said...: Sir,

Sub: Bank Men and Wage hike

The IBA recently settled a pay hike of 17.50 percent and a fresh option for bank men, including the retired who stayed away from the scheme when it contained a penal clause. Bank unions blow the trumpet saying that the percentage of wage hike is the highest one ever secured as if they are tadpoles in the deep old well. The statistically precise statement becomes quite unacceptable in the context of the 40 percent pay hike given to five days working government employees in the pre-election phase when the six days working bankers are settled for 17.50 percent, which is 56.25 percent less than the pay hike to the former.

Pension Option is a benefit already given in 1995 and later denied unlawfully to majority of employees. The final and irrevocable options of certain employees were revoked and others who could not opt when the scheme contained the penal clause were not given a fresh chance when the clause was deleted in 1999. Unions and directors representing officers and workmen remained mute spectators while the fundamental right of the people they represented was taken away. Bipartite Settlement inked in 2005 stated that the issue of fresh option cannot be reopened. Retired, who were victims were driven to courts and the apex court that heard appeals rejected the plea of the bank men in 2001. Government too took a negative stand that fresh option can not be considered at any rate causing hardship to the retired for years.

Even as public sector banks ( excepting State Bank of Saurashtra and State Bank of Indore whose data were not available) made incremental profits of Rs. 32,148.77 Crores for past three years over the 2006 level, IBA worked out a deficit of Rs.1800 Crores for meeting the Pension burden asking the employees to share this 30 percent of the identified liability. The incremental profit of 13 prominent private sector banks for identical period stood at Rs. 19,486.14 Crores. The hike in interest income of the PSBs was Rs. 1,19,919.63 Crores and that of the private sector banks was Rs. 75,780.05 Crores. Spurt in profits and interest income, makes the demand of IBA on the employees to share a portion of the Pension Burden a real plight. Want of financial muscles to bear legitimate establishment expenditure proves as a mere extenuation while analyzing facts and figures.

The Agricultural Debt waiver in 2008 came to Rs.70,000 Crores and other normal write off during the past three years stood at about Rs.25,000 Crores. It takes any Indian to utter surprise when banks which could splendidly bear the burnt of the Rs.95000 Crores on write off find it difficult to extend a reasonable package to the workforce and make a foul bargain for Rs.1,800 Crores for paying the pension.

Pension Regulations have specifically excluded the resigned employees from its purview albeit possessing the prescribed minimum service qualifying for pension. Mode of exit ought to be immaterial and Pension Scheme has to be fine tuned to encompass resigned too when banks are paying pension to VRS retirees who were given a special package for quitting employment. Resignation is the purest form of Voluntary Retirement embraced voluntarily whereas the VRS is a scheme of induced retirement through special incentives offered.

The Minister of Finance and members of Parliament who have taken oath in the name of the Constitution of the country consenting to treat identical people equally will be at a default if they shut their eyes before realities and fail to extend uniform treatment to bank men of all sort. The fact that Bank employees take their salaries from the profits banks make and not from the exchequer should also be taken care of while settling their deal vis-à-vis government employees.

Yours faithfully,

C N Venugopalan; January 8, 2010 at 6:54 PM
chandan said...: 34 SLAB(PROBABILITY) BANK DA FOR FEB-2010:

Labour Bureau Government of India declared a six point rise in Agriculture Labourer's price index for the month of Dec-2009. Basing on this Two point rise is expected on CPI for Industrial Workers,to be declared on 29th Jan-2010 for the month of Dec 2009.So the average for the quarter of Oct-Dec 2009 will be 167.66 and will result 34 slab or 6%+ increase on Bank DA for Feb.In worst case also,it can't go below the 32 slabs.; January 22, 2010 at 11:07 PM
chandan said...: WHY BPS IS DELAYED???:

"Once the wage is settled the workers are required to dole out a levy i.e. a percentage of the arrears of their revised wages to their trade unions which they belong. Obviously you understand the trick, more the delay in wage revision, more the amount of arrears so bigger the amount of levies! Surprised! but this is the norm of wage negotiations and despite of deep resentment amongst the workers (whose voices are always suppressed) for the delay and the undue levy, the practice is on ever since bipartite wage negotiation between Indian Banker’s Association and several trade-unions"

'EXTRACT, TAKEN FROM SOMEONE'S COMMENT'; January 23, 2010 at 5:04 PM

Tuesday, December 29, 2009

Bank Bipartite Talk on 29.12.2009 : IBA meets Officers' Association in Mumbai.

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