Unhappy with the wage settlement, 80 per cent of State Bank of India (SBI) officers in the senior management grade have resigned from the membership of the officers’ association.
The finer details of the industrywide wage revision for bank employees have already been worked out and the agreement will be made official next week.
View the details of negotiation on 13th April.
“There has been an exodus from the officers’ association from the Mumbai Corporate centre alone”, said an employee involved in the issue.
Referring to the dissatisfaction among officers, TN Goel, president of the All-India State Bank of India Officers’ Federation, said the basic issue with the decision for just a 17.5 per cent hike, which was making it difficult to structure the pay scales. Hence, various groups feel they are getting a raw deal. Specific issues regarding SBI staff and officers will be taken up after the industry-level pact is signed.
However, SBI officials who have resigned from the association are of the view that the wage negotiations are more focused on issues other than a decent wage package. Officers allege that the first priority of the present settlement is giving a second pension option to those who did not opt for the scheme in 1993.
The second priority of the settlement had been providing “stagnation increments” to officers in scale I to III, they said. The position in the SBI cadre increases in an ascending order from scale I to scale V. Scale IV and V comprise senior management.
“The stagnation benefit creates an anomalous situation whereby a person in a lower scale, who was either not found fit for promotion or did not opt for promotion, draws the same basic salary as a person who is shouldering higher responsibilities after being promoted to a higher scale. Moreover, the wage settlement does not extend the same benefit to scale IV or V officers, where stagnation is more than 12 years and is followed by frequent transfers”, they said.
“The most objectionable part of the settlement is that the representatives of the SBI officers’ association, rather than struggling for higher wages for members, have settled for less. This is because IBA had proposed pay scales of Rs 15,000-54000 as increase in basic salary across the board whereas the association settled for Rs 14,500-52,000”, said the officers.
GD Nadaf, general secretary, All India Bank Officers’ Association, said that from around two-and-a-half years of arrears, employees opting for the second pension scheme might have to forgo seven to eight months of arrears as contribution to the pension fund in lieu of the provident fund.
The finer details of the industrywide wage revision for bank employees have already been worked out and the agreement will be made official next week.
View the details of negotiation on 13th April.
“There has been an exodus from the officers’ association from the Mumbai Corporate centre alone”, said an employee involved in the issue.
Referring to the dissatisfaction among officers, TN Goel, president of the All-India State Bank of India Officers’ Federation, said the basic issue with the decision for just a 17.5 per cent hike, which was making it difficult to structure the pay scales. Hence, various groups feel they are getting a raw deal. Specific issues regarding SBI staff and officers will be taken up after the industry-level pact is signed.
However, SBI officials who have resigned from the association are of the view that the wage negotiations are more focused on issues other than a decent wage package. Officers allege that the first priority of the present settlement is giving a second pension option to those who did not opt for the scheme in 1993.
The second priority of the settlement had been providing “stagnation increments” to officers in scale I to III, they said. The position in the SBI cadre increases in an ascending order from scale I to scale V. Scale IV and V comprise senior management.
“The stagnation benefit creates an anomalous situation whereby a person in a lower scale, who was either not found fit for promotion or did not opt for promotion, draws the same basic salary as a person who is shouldering higher responsibilities after being promoted to a higher scale. Moreover, the wage settlement does not extend the same benefit to scale IV or V officers, where stagnation is more than 12 years and is followed by frequent transfers”, they said.
“The most objectionable part of the settlement is that the representatives of the SBI officers’ association, rather than struggling for higher wages for members, have settled for less. This is because IBA had proposed pay scales of Rs 15,000-54000 as increase in basic salary across the board whereas the association settled for Rs 14,500-52,000”, said the officers.
GD Nadaf, general secretary, All India Bank Officers’ Association, said that from around two-and-a-half years of arrears, employees opting for the second pension scheme might have to forgo seven to eight months of arrears as contribution to the pension fund in lieu of the provident fund.
Source : Business Standard.
33 comments :
The entire 9th BPS is rotating on second option for pension only ignoring the parity in salary increase that has taken place in the year 2008 to till date in various sectors. AIBOC under the present leadership failed miserably in all fronts.The SBI senior management members should have taken this decision at least a year back would have given better results.
BETTER LATE THAN NEVER.
CC OFFICERS, WE ARE WITH YOU.
AIBOC DESERVES FOR THIS.
WE HAVE TO FIGHT AT BOTH FRONTS, AIBOC AS WELL AS IBA TO SAVE US
Kudos!!!....I think officers r waking after a long sleep..
Now the union leaders has crossed the limits..
I hav already cancelled the union subscription...
All officers should resign against the injustice done to wage revision for the mean cause of Pension option at the cost of wage revision....
Three Chears to SBI Officers....
dear leaders
Wakeup now things are not gone beyond our reach yet. Final settlement is not signed till now, we are ready to fight, go for indefinite strike for a reasonable hike for all cedars, otherwise initial steps taken by senior management will speared among all officers against the injustice done in the wage revision.
G.G.Kumbhat
(Ret. Manager SBBJ)
Resigned officers are from Senior Management level comprising Executives from Scale IV and above.Majority of them have not participated in the strike calls given by unions during the period under settlement. Their act of resigning should not dishorten officers from Scale I to Scale III.Anyway this is not the time to react.Lakhs of award staff and Scale I to Scale III officers, who were instrumental in making all strikes success and finalyzation of the settlement are actual losers than executives.
Ref Shankar, 14th April
If you don't know the facts, dont comment. Almost all the members of SMGS-IV & V in SBI are members of AIBOC and have participated in all the strike calls, what to say for wage revision even for the non sense second option in other banks. I am also one among them. So my sincere advice to all alike Mr. Shankar, please ascertain the facts before making any comment.
ppl like shankar sitting at higher union position are responsible for making 9th bipartite a complete mess...
They see mistake in everybody excet them....
These ppl are responsible for making pension option a priority rather than wage revision which is the main motive of every bipartite...
Referring to Archana-April 15, 20108:32 AM
Pusjkar-April 15, 2010 9:04 AM
Donot advise others.After ascertaining facts only I have commented. I am not a fool to listen to nonsense advises. You may be knowing about SBI. But know about all other Nationalised banks and ascertain what was the participation of Scale IV and above executives in strikes and then go to advise others.I handled Personnel department and in particular Strike matters and sent the information to the concerned authorities
Let Archana do not think that she is better off than others just bcoz she is with SBI and second option of pension in other banks is non sense. Don't preach others and do not stoop to low levels being a bank officer. Try to maintain decency and respect feeling of others. If IBA or Govt was not inclined to consider second option of pension unions would have been forced to keep quiet. When they are not minding giving second option to others what is your problem? No body is there to listen to you. I have already noticed your rubbish and dirty comments earlier and some one has already cautioned you to be polite and still you have not learnt. Shankar
Dear SHANKAR/ Rajgopal,
You are right that nobody should write comments below standard .
However, it is also fact that mixing of wage revision with 2nd pension option is the only reason for such poor wage revision this time. We could have got much more than this soo called 17.50% hike without the pre-condition of pension settlement.
You are right that 2nd option of pension is equally important but do you think wage revision was not so importent. Why it was kept as last Agenda item in the strikes/ agitations of the Union during last three years. UFBU has never given priority to wage revision. Even in the charter of denmand of FEb & June 2009, it was 6th and last item.
Therefore, we are not against the 2nd pension option but the way the union has made it a pre-conditiion for 9th BPS was not ethical. Even they are not ready sign BPS on 20.04.2010 as proposed by IBA because of remaining pension issues. Whether there is any restrction on rectifyiny any anomely after finalising the BPS ? This attitude of UFBU is the reason that serving employees are feeling cheated.
Regarding SBI officers move, I think you are not aware of facts, so please don't comment.
Referring Rajgopal-April 15, 2010 12:39 PM
In your comment,at the end my name has appeared.I think it is an error.
Attacking others is a crime.But fighting for self defence is not a crime.Though there is no need to reply to Ms Archana's comments,it is done just to remind her that she is not the authority to decide pension option to bank employees. Ask her whether she has read what Sri Krishna Iyer, Former Chief Justice of India has written to Sri Manamohan Singh, our Honourable Prime Minister of India about the injustice done to PF optees and stressing the need for Prime Minister's intervension and to settle one more pension option to PF optees of Bank employees immediately. No.Defenitely she does not know that.Whether she is above our Honourable Chief Justice of India Or our Prime Minister? When they are convinced about the legal validity of second option of pension to PF optees and have acted favourably,whether we are required to answer to utterings of these ignorant half knowledge officers? Let anybody bark like anything they want.Let us fight for our right legally.Let the wage revision take its own time.
Mr Pushkar has commented that "ppl like shankar sitting at higher union position "
He does not know that I am not a member of any union. My pay slips confim that.That is why I am not making any comment about any union.
My comment was not against any executive who participated in strike calls.Nor it was not against any executive who was prevented by the Management by giving threats such as disciplinary action etc. My comment was purely against those who are members of unions,who, after taking all benefits from unions(Let them be in any union)like favourable transfers, promotions etc and then not participate in strikes.My comment was that the time of resignation by SBI executives was not the appropriate time.They should have resigned immediately after knowing that the wage settlement was at 17.50 %.They should have formed their own union immediately and fought for their rights at that time itself.IBA is always favourable to them.Whereas a lower level officer has to fight for each and every rupee.
Mr. Shankar, pl note that in my email ID Rajagopal is preceding my name. So i am also Shankar. It is not an error. I understand the feelings of all our brethren in the banking industry. We have waited for so long though not with full patience. We have to work together in this industry to bargain our rights, which is a pity, though we like or not. I am aware of Sc IV & V participating in SBI strikes which i have witnessed in Chandigarh. May god bless all and give good sense to move towards banking pay commission atleast to benefit bankers in future. Even Central Govt pay commission had opposition from union leaders on some issues. It can never be 100% correct.
This is the worst BPS ever in the history.
Members will realize it when it will come into effect.(Hope soon, But this BPS seems to be an endless exercise)
Don't expect it will resolve in next 5 days. It may take still 15-20 days more.(minimum)As not any date is fixed for next talks and couple of major issues are still to resolve.
1. Date of effect of pension and few other demands of improvement in pension.
2. AIBEA still not agreed on Spacial Pay issue.
3. Issue of outsourcing.
4. New Pension scheme :- IBA issued instruction to all bank management to implement NPS from 01.04.2010 as agreed in MOU 27.11.09. But Union wants to implement NPS for new entrants from date of settlement.
Friends, what is there with UFBU to expect. They were begging with IBA for 9th BPS. UFBU outsourced its chairperson C H Venktachalam a retired Bank employee. Is he capable of understanding the feeling of Bank officers. Every bank officer is unable to answer his own self-consciousness. He has almost pledged his self respect, dignity and esteem and are toiling 24 x7 x 365. No sunrise or sunset several of our officers see their sleeping children in bed late in the night. Officers we do not want UFBU and let us demand a Bank Pay commission to decide wage related matters in future.
Have you worked out at what cost pension option is given to me...I took VRS in Sept-2009,whether i will be trated as existing employee or retired employee?Further the person who has retired one month before the effective date of pension agreement he has to bear cost of rs 360000/and the person retired one month after agreement has to bear only rs 60000/?what an injustice....please clarify and take up the matter with the appropriate forum immediately before signing pension option agreement.
Regards,
M.C.Agrawal
{posted by administrator following request of Mr Agarwal}
Dear all,
These leaders has sold entire bank officers. As these leaders are going to retire very shortly they hardly bother about young generations who have to served banking industry more than 2-3decades.The biggest mistake was done when UFBU was formed and CH Venkatchala has become chairman.It is right time that each officers should resign from Association.
Giving 1.6times of pay(costing more than 10months of arrear to PF Optees pension)arrers means already what we are getting will halved. Why it should be borne by the Pension optees, what mistake they have committed? Shame shame to chipkoos leaders.
Dear Friends, CHV is not the only person to blame. All the nine constituents are party to the ruin of tens of hundreds of bankmens' interest. Now slowly people are starting to show their finger towards IBA and AIBOC. I am giving below what AIBOA has to say on the entire episode. While I fully agree that AIBOC especially Com. Nadaf is capable of inflicting great injuries to their own members (what to talk of members of other associations)I feel AIBOA and others are also equally responsible, for, an abetter of a criminal is at par with the criminal in the eys of law. Now is the time for the leaders to cry foul and trying to earn sympathy. please go through the text to know the version of AIBOA
MOU dated 27.11.2009
Developments in small committee meetings
Ever since we signed the MOU dated 27.11.2009 all constituents of UFBU are striving to reach the settlement on pension and revision of pay at the earliest.
However, the first destablising development came when IBA after MOU dated 27.11.2009 was signed on the basis of existing parameters of costing in the industry, brought SBI pension balancing, a factor which was not there in earlier two settlements and after SBI employees got 120 crores as compensation on the pension scheme introduced in Banks. IBA brought this after MOU keeping UFBU in dark till we signed MOU 27.11.2009 and they did not accept our legal demand to keep this amount of nearly 300 crores outside the load, without reducing the load factor of 17.5% to 16.5%.
But IBA using the pressure on the unions to expedite the settlement imposed the questionable addition to reduce our load factor.
Another destabilsing aspect took place amongst officers’ Associations when we met IBA Chairman to plead for higher starting basic and stagnation, it was decided by the unions that we will work out scale of pay adjusting incremental pattern to reach 15000 starting pay.
However AIBOC unilaterally met IBA and announced completion of small committee work and wanted us to agree to their scheme. We had prepared our chart at 15000 with suitable adjustments in incremental pattern and said that we would go with them on other matters if starting pay is agreed at 15000/- so as to reduce the difference with Govt. officers which have increased by leaps and bounds due to grade pay etc., after VI Pay Commission implementation.
...contd/-
contd from the previous one/-
AIBOC expressed its inability to go further and despite other small improvements, Junior officers are again left in the lurch. Without delinking Executives pay, we unnecessarily reduced their pay in the process sealing our prospects to improve our wages in future.
This policy of AIBOC to negotiate with IBA on separate lines has led us to difficulties. While AIBOC was always critising UFBU, they flouted 20+ demand of united UFBU to land us at 17.5%. Thereafter they revisited SBI demand to make it 16.5%. They wanted higher wage for officers but did not accept AIBOA’s proposal to place separate demands and to pursue the charter with IBA and Govt., separately. Instead they sat with UFBU till date of effect and merger points were decided and showed a picture as if they are not agreeing with 17.5% but eventually made it 16.5% in favour of SBI. Convenient stand was taken at every point of time to distribute the load on the basis of numbers without basic principles of fair loading principles to all sections.
Another sad feature of AIBOC negotiation is that while HRA we had differed with IBA costing excess nearly 50 crores, they have not even declared this publicly. Similarly after reducing starting pay to Rs.14500/- now AIBOC is complaining of relativity problem as workmen get special pay of Rs.1000/- wef 1.5.2010.
However more than anything above AIBOA is worried that IBA is adopting standards and methods questionable in nature to push higher level of recovery from the load factor and from individuals nor incumbent to pay the deficit on account of delayed option. Having extracted higher appropriation in respect of incremental cost sharing and deficit funding, IBA has so far denied normal feature of pension like DA neutralization, updation, anomaly rectification for the last10 years With further recovery for incremental cost for 276600 persons and deficit recovery, IBA has achieved higher cost of pension taking nearly 5% more than PF cost of 10% with which pension was exchanged in the beginning. Slowly pension is proving more costlier than the benefits especially after this settlement.
It is this trend of negative bargaining by IBA to pauperise the community that make us generally worried about the state of collective bargaining in the industry and the need for transparency to evolve demands below which the unions will not accept any settlement with Bankers.
SOURCE: AIBOA'S WEBSITE
Dear friends,
If the existing pension optees are also required to cough up hefty penalty to continue, then why the persons who are retired (say even atleast after 01.11.2007) be left off from paying the additional cost but can enjoy pension on par with others. And for the sake of accommodating non optees why the existing pension optees should be penalised and if at all why at equal rate? And for all practical purposes the word existing employees should mean who ever worked as on 01.11.2007 the date of effect of the settlement and not the date of signing the settlement,for, it will greatly affect the interest of people who retired in between, making them to cough up 56% over whatever they received in case of non optees and letting off from paying in case of pension optees at 1.6 times of basic pay as on 01.11.2007. And it should be the initial starting basic pay of respective scales for arriving at 1.6 times. But going by the experience this time around where no logic has played any role in the minds of all concerned, we can not expect any prudent outcome. That is the saddest aspect.
In the process of returning 156% of CPF (Bank's contribution), the retiring officers (pf optees) are actually paying back nothing to `Pension Fund'. If the date of effect of pension payment is 1.4.2008, then taking into account (i) Commutation Rs.2,00,000 + (ii) Arrears of pension for 2 years Rs.16,000 x 24 = 3,88,000 i.e. Rs.5,88,000/- (approx), nothing will come to pension fund. On the other hand, serving employees have to return 1.6 times of Nov'07 `pay' (Rs.22,000 x 1.6 = Rs.35,200 for clerks & Rs.32,000 x 1.6 = Rs.51,200 for officers approx). It is clear from the above calculation that a retired pf optee will get pension of Rs.16,000/- approx. per month even without contributing a single pie to the pension fund. In the other hand the serving pf optees have to pay penalty from their 9th bps arrears. This is the only reason even though almost all areas of 9th bps have been discussed and settled, only date of effect of pension is hanging. The old foxes bloody union leaders (retired) are playing with the emotions of lakhs of serving employees. Carry on IBA, don't pay pension arrear from 01.04.2008 instead only stick to your stand of 01.04.2010. In conclusion, I would like to submit that this is the only area for which wage negotiation is unduly delayed. Thanking you.
Dear Aditya
Just think of those who retired during the SVRS and longing for pension. They did not receive pension for the last several years. Atleast let them get pension from 01-04-2008 onwards. Unless you suffer you will know the pinch.
Circular No.11/V/2010
April 15, 2010
To:
ALL UNITS / STATE COMMITTEES
Comrades,
MOU dated 27.11.2009
Developments in small committee meetings
Ever since we signed the MOU dated 27.11.2009 all constituents of UFBU are striving to reach the settlement on pension and revision of pay at the earliest.
However, the first destablising development came when IBA after MOU dated 27.11.2009 was signed on the basis of existing parameters of costing in the industry, brought SBI pension balancing, a factor which was not there in earlier two settlements and after SBI employees got 120 crores as compensation on the pension scheme introduced in Banks. IBA brought this after MOU keeping UFBU in dark till we signed MOU 27.11.2009 and they did not accept our legal demand to keep this amount of nearly 300 crores outside the load, without reducing the load factor of 17.5% to 16.5%.
But IBA using the pressure on the unions to expedite the settlement imposed the questionable addition to reduce our load factor.
Another destabilsing aspect took place amongst officers’ Associations when we met IBA Chairman to plead for higher starting basic and stagnation, it was decided by the unions that we will work out scale of pay adjusting incremental pattern to reach 15000 starting pay.
However AIBOC unilaterally met IBA and announced completion of small committee work and wanted us to agree to their scheme. We had prepared our chart at 15000 with suitable adjustments in incremental pattern and said that we would go with them on other matters if starting pay is agreed at 15000/- so as to reduce the difference with Govt. officers which have increased by leaps and bounds due to grade pay etc., after VI Pay Commission implementation.
AIBOC expressed its inability to go further and despite other small improvements, Junior officers are again left in the lurch. Without delinking Executives pay, we unnecessarily reduced their pay in the process sealing our prospects to improve our wages in future.
This policy of AIBOC to negotiate with IBA on separate lines has led us to difficulties. While AIBOC was always critising UFBU, they flouted 20+ demand of united UFBU to land us at 17.5%. Thereafter they revisited SBI demand to make it 16.5%. They wanted higher wage for officers but did not accept AIBOA’s proposal to place separate demands and to pursue the charter with IBA and Govt., separately. Instead they sat with UFBU till date of effect and merger points were decided and showed a picture as if they are not agreeing with 17.5% but eventually made it 16.5% in favour of SBI. Convenient stand was taken at every point of time to distribute the load on the basis of numbers without basic principles of fair loading principles to all sections.
Another sad feature of AIBOC negotiation is that while HRA we had differed with IBA costing excess nearly 50 crores, they have not even declared this publicly. Similarly after reducing starting pay to Rs.14500/- now AIBOC is complaining of relativity problem as workmen get special pay of Rs.1000/- wef 1.5.2010.
However more than anything above AIBOA is worried that IBA is adopting standards and methods questionable in nature to push higher level of recovery from the load factor and from individuals nor incumbent to pay the deficit on account of delayed option. Having extracted higher appropriation in respect of incremental cost sharing and deficit funding, IBA has so far denied normal feature of pension like DA neutralization, updation, anomaly rectification for the last10 years With further recovery for incremental cost for 276600 persons and deficit recovery, IBA has achieved higher cost of pension taking nearly 5% more than PF cost of 10% with which pension was exchanged in the beginning. Slowly pension is proving more costlier than the benefits especially after this settlement.
It is this trend of negative bargaining by IBA to pauperise the community that make us generally worried about the state of collective bargaining in the industry and the need for transparency to evolve demands below which the unions will not accept any settlement with Bankers.
With greetings
/R.J.SRIDHARAN/
GENERAL SECRETARY
seetha said...
let us be united and dont accept this wage revision agreement, resign from the union, dont pay levy act intelligently in the coming election, express ur grieviences think about the solution just discussing about the problem never solves it let us start to think about the solutions sincerely
Dear Madame,
what you said may be eligible for the next settlement and this 9 BPS
you are bound to this settlement under the leadership of U F B U.Because of 2nd option pension it made everybody to wipe. Forget it we aspire good in the next settlement. This settlement is lesson for bank employees.
ALL RETIRED PF OPTEES SHOULD UNDERSTAND THAT EFFECTIVE DATE CAN'T BE DT:01/04/2008. IF IT IS SO HOW CAN 1.6 FACTOR CAN BE ADJUSTED RIGHT FROM THE ARREARS OF JUST FIVE MONTHS.
Thanks.
Dear Chandan
Why it is not possible to collect 1.6 % of the revised basic pay. IBA need not collect from the arrears. Collection can be done by recovering from the emmployees operative account also. It need not be from the arrears.
ALL employees pf or pension should reject this wage agrreement where
AIBOC in particular played a bebus lachar and lazy role.
UBFU be united
force an interim reief.
renegotiate the BPS
PENSION OPTEES ARE BEING FORCED TO BEAR THE COST FOR A DECISION WHICH DOES NOT RELATE TO THEM.
Referring to Adithya-April 16,
2010-11:52 AM
Your calculation is not correct but one gets pleasure while reading it.If you work out the actual amount to be paid by some 20to 25 persons and what they are getting, you will observe that employees are required to repay to the managements to the extent of Rs 5 to 6 lakhs in Senior Manager's cadre in addition to PF received at the time of retirement.
"Pension" is defined as" Deferred payment in consideration of past service" in WEBMASTERs dictionary.
Consideration is "Polite respect" as per the above dictionary.
In other words, pension is paid in consideration of past "Service" with due respect to employees and not in consideration of "Money" from employees.
IBA and UFBU have made pension issue a mockery by demanding share of 30 % of the load by PF optees.
You will observe that nowhare in the world employees are asked to share the burden of pension since it is treated as a social security measure.
If at all goodwill prevails upon IBA and Government, they should settle pension issue without demanding even a single pie from employees, except PF ampount recieved at the time of retirement.
But in our country, we can only dream such things.
The so called UFBU is a divided house. AIBOA is critising AIBOC for reduction of basic pay from Rs15000/ to Rs 14500/ as per AIBOA web sight.AIBEA has own reservation on out sourcing and adequate enhancement in special pay for spl.asstt, Head Cashier etc.God knows when 9th BPS would be signed.
Its wake up call n time to think
First of all HATS OF TO SO CALLED GREAT LEADERS FOR THEIR PENSIONS
wake up plz
New joinee in bank from 1-04-2010 will not have pension as no one thinks about them :)they think only about retired leaders no one care about working employee
is Central gov employees having any union for deciding pay structure but we have and still we have pay structure poor then them.
now its up to us wheither follow them or be professional and fight for our rights
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