Sunday, September 28, 2014

UFBU AND AIBOC circular on talks dt 26.09.2014

Text of UFBU circular on Wage revision Talks on 26.09.2014:
Further to the last round of meeting held on 17th instant, another round of bipartite meeting was held with the IBA today (26.9.2014). 
IBA was represented by Shri Rajeev Rishi (CMD Central Bank of India), Chairman of the Negotiating Committee along with other members of the Negotiating Committee. UFBU was represented by all its constituent unions.
In today's meeting there was a detailed discussion on our demand for 100% reimbursement of hospitalisation expenses incurred by the employees/officers and their family members and the group mediclaim scheme offered by the IBA in response thereto. 
We explained our various apprehensions about the implementation of the scheme and hassle-free reimbursement of claims thereunder. We reiterated that employees/officers should not be required to deal directly with the insurance company or their Third Party Administrators.
IBA has agreed and accordingly clarified that even though employees would be covered by the mediclaim scheme, they would continue to submit their claims to the management as hitherto and the reimbursement would be made by the Banks with the improved benefits of the scheme accruing to the employees. 
IBA also agreed to incorporate the suggestions submitted by the UFBU while finalising the scheme.  Hence a broad in-principle consensus was mutually agreed upon and the final scheme would be worked out accordingly on the above lines.

We also raised the following issues during the discussions today:
Ø    Pension related matters i.e. 100% DA on pension for pre-Nov. 2002 retirees, improvement in family pension, provision for periodical updation of pension
Ø    Introduction of 5 days banking / 5 days working
Ø    Regulated working hours for officers
After discussion, IBA informed that they are inclined to favorably consider the demand of 100% DA on pension for pre-Nov. 2002 retirees. 
IBA further informed that cost aspect on improvement in family pension is being worked out and they would soon take a decision on the same.  IBA responded positively on this issue.
As regards updation of pension, IBA informed that in view of the high cost involved, it would be difficult to agree to the same.  On our insistence, IBA agreed that any viable and affordable proposition from the UFBU in this regard would be examined.
As regards 5 day banking / 5 day working, IBA regretted their inability to accept our demand in the present situation. From UFBU, we insisted on this issue and hence IBA agreed that if a detailed note is submitted to them with the requisite logic and rationale, they would apply their mind afresh on this issue.
On the issue of regulated working hours for officers, IBA was not inclined to agree to the same. However, on drawing their attention to the note submitted by the Officers Organisation, IBA agreed to study the same and react subsequently.
From the IBA, they wanted to know our views and reactions on introduction of cost to company method as well as fixed and variable pay concepts. From UFBU we have reiterated our standpoint that the same are not acceptable to us.  IBA also insisted for limiting the wage revision discussions upto scale III officers instead of upto scale VII which was also declined by us.
On the vital issue of improvement in the offer of IBA over 11%, despite our indication that we would be flexible in our demand, depending on improvements in other areas, IBA has conveyed that they are unable to improve their offer unless UFBU scale down further in its demand considering the financial constraints of the banks. 
We categorically informed IBA that UFBU would be reasonable and flexible in its approach provided the same is reciprocated by the IBA on the issues raised by us and insisted on IBA to improve their offer to take the negotiations forward. 
However, IBA was adamant in their stand and did not improve their offer and stuck to their earlier offer of 11%.  UFBU expressed its unhappiness over the rigid stand of IBA on improvement.
In the UFBU meeting held subsequently, representatives of all the constituent unions expressed their dissatisfaction and condemned the lackadaisical approach and adamant attitude of IBA and unanimously decided to undertake agitational programmes to press our demands and to expedite the settlement.  After deliberations, it was decided to observe One day Protest Strike preceded by the following action programmes:
Between 18.10.2014 and 31.10.2014
(Date shall be decided by the State Unit of UFBU)
It was also decided that the one day protest strike shall be followed by intermittent and relay strikes as well as indefinite strike.  Detailed circular on the date of one day protest strike and other agitation programmes will be issued in due course.
Sd.  M V Murali, Convener
AIBOC SAYS..................

Dear Comrades, we have received the reaction from many of you on the outcome of the 
meeting with IBA. Our Confederation expressed its clear view in the UFBU meeting held on 26th
September, 2014, that we want quick and sustained agitational programme against the apathy 
of IBA and the Government on our just and reasonable demands. We also suggested that our 
strike call should be for 13th and/or 14th October preceded by programmes like no late sitting, 
not coming on Sundays and Holidays, Badge wearing, relay hunger strikes, rallies and 
demonstrations. Undersigned offered the challenge to hold a rally/demonstration on 27th
September, 2014 itself at Delhi. However, the above programme only could be decided by the 
UFBU. We call upon our members to be in preparedness for any call of the UFBU/organization.
With revolutionary greetings, 
Yours sincerely, 


BALAN said...


Bank men wages started falling on relativity basis vis a vis central government and other public sector employees since 1986, historic fourth pay commission implementation generously awarded by the then Prime minister Rajiv Gandhi by taking the plight of the poorly paid employees at that time and need to raise their standard of living vis a vis productivity in the government department and also to attract/ retain the talent and to reduce the attrition level. Concept of FIVE DAY WEEK also was his brain child with the same productivity theory. Government and public sector employees got 30% pay hike. Then fifth pay commission in 1996 with another 30% pay and perks. Sixth pay commission award was one of the best ever the employees got because of the introduction of grade pay and pay band. Public sector employees also got hefty pay hike during these 20 years.The only one sector which was penalised in pay hike was FINANCIAL INSTITUTION EMPLOYEES. BANK LIC RBI ETC.
Refereshing the old theory of pillai committee which was introduced during 1979 with the sole aim of reducing the wage level of the officers in the name of standardisation. The then union cabinet accepted the pillai committee in letter and spirit by stating that bank officer should be equal to class I officer and not more than that. At that time the cabinet secretary s basic pay fixed band 3000 was the maximum of general managers basic pay.
Bank men were proud of the DA formula and the increment pattern FIXED BY AWARDS and secured by successive bipartite settlements with skilful negotiations by the then leaders who had good rapport and have a say with their affiliated parties . The so called HIGH WAGE ISLAND which normally the financial SECTOR EMPLOYEES USED TO BE REFERRED BY THE THEN DISTINGUISHED FINANCE MINISTER C. SUBRAMNIAN was possible because of the very good incremental span as for as award staff were concerned . The management also were forced to accept because of the risky nature of the job and various responsibilities that bank employees are taking.
Wages of bank men were determined once in 5 years based on bi partite settlements. Even though the habit of fixing an arbitrary amount for officers and award staff continues and percentage of fixing the wages is happening even before construction of need based pay scales unions became helpless to get better settlement . IBA cleverly managing the unions in the name of CAPACITY TO PAY.LOAD FACTOR ETC.
All public sector navaratna companies are paying very good salaries even from the sub staff level to top persons. How the capacity to pay is coming. They are raising the end product cost to maintain the profitability.oil marketing companies are adequately compensated for their losses under the compulsions of electoral gains to maintain the fuel cost lower.For state and central government employees it is coming from consolidated fund of india . hence there is no necessity of burden or load arising in their cases.
Now take this peculiar position of banks. In which category it is coming. Truly it is a public sector. But wages were standardised by taking the government pay structure for officers and pension option also was allowed in 1995 .so technically they are considering bankers similar to government employees.Compulsions similar to the petroleum sector need to be extended to the banking sector also where service charges rate of interest are low. SB interest is deliberately kept low. Subsidy is necessary to the banking sector like petroleum sector.
Banks are transferring thousands of crore to the central government pool year after year. Bank men staff strength is the lowest and productivity per employee became the highest as on date since bank nationalisation.
to be continued

BALAN said...

Let the authorities think for a moment why they are hesitating to improve the salary on par with public sector. All banks with the exception of one or two can be classified as navaratna companies based on their performance which is improving year after year. LET THEM TAKE A GENUINE MANPOWER EXERCISE .then only the authorities can come to know how they are destroying the banking sector which is the backbone of the economy.
After the introduction of the sixth pay commission the entry level salary for the clerks is not even 70% of what the government employees are drawing. Even the back office staff BPO personnels are drawing more salaries. The human tendency is to compare the level of salary prevailing at the time of entry point. Due to poor comparative pay level ,the clerical staff are not continuing for years together and they are waiting for the opportunity to switch over. Hence the attrition rate is higher when we compare the number of persons who is capable of delivering things ie the cream among those recruited. So on the tag end we may be left with the products who can not deliver much on a comparative basis. If this trend continues, then the quality of the personnels may not be high. If the govt and or public sector wages had been raised vertically will it not be applicable to bank staff .During 1970s at the time of maximum recruitment were in full swing large number of the post graduates joined the banking industry as a clerk, grown with the organisation. Served with full enthusiasm got promotion as officer in 4 to 5 years time. Enjoyed good wages on a comparative basis at that time. All these theory were evaporated now and bank officers are today a struggling lot without adequate manpower , work load of more than 10 hours per day with work on holidays also added with responsibilities, vigilance fear and the routine irregularities and advance failure given in good faith etc.
IBA , the name itself lost its glory and pride because of the negative attitude of the personnels . they have gone to the extent of inserting some important words from the agreed minutes. If this is the status , then how the UFBU can rely on them and simply negotiating for years together. Nearly one lakh employees and officers are going to retire in the coming three or 4 years and unless and otherwise the bosses. MOF IBA are coming to the ground realities in terms of manpower recruitment combining with sizeable increase on par with public sector navaratna companies to retain the manpower and to induce fresh talented blood into the stream ,we can see the complete collapse of the efficient management system in another 10 years and only see paper profits. to be continued

BALAN said...

There are instances that a retired general managers family is getting less pension than the sub staff retiree.even though the pension regulation is very clear that whatever is applicable to RBI will follow ,100% neutralisation to pre 1.11.2002 retired pensioners are yet to be considered favourably. Why such type of things are happening . who is responsible why there is no accountability. The law makers are yet to open their eyes. Let them permit the eligible benefits agreed to the eligible persons as per the regulations.
INSTEAD OF SUBMITTING FRESH CHARTER OF DEMANDS let the UFBU can bring pressure on the government /MOF to rectify the big gap created between the officers of scale I and officers of thee government of india.
Let them sanction across the board special pay of 30% of the existing basic pay as special pay or grade pay from the substaff to general manager scale VII level for the same consumer price index of IX th bipartite settlement.THIS SHOULD HAVE BASIC PAY STATUS RANKING FOR DA. Let them also in crease the HRA as applicable to government employees which will directly benefit the officers who are not taking bank lease. Let them also sanction transport allowance and education allowance. All these will take the salary hike level to more than 30 to 40 % high . this can be implemented from 01.11.2012 for 5 years. There after let them fix the wages based on their seventh pay commission which is the base level for negotiation by ufbu with iba. Unless and otherwise this anomaly is rectified first the industry will become humanly sick . This combine with the mounting of npas will result in chaos. Hence all the authorities who are genuinely interested in the health of the banking industry should take care of the health and wealth of their employees.
A committee comprising of MOF IBA UFBU AND MEMBER FROM RETIRED ASSOCIATION IF ANY can be appointed to go into the question of pension updation to all the employees and officers to be decided within a reasonable time frame.

chennamsetty said...

Balan sir are you on facebook. Young bankers needs guidance.

Contact Us

Viewers may share any information with the administrator in this email
Any news, if approved, may be published in this blog under his /her name.
Related Posts with Thumbnails

Blog Archive

Bookmark This Page

Bookmark and Share
All the information published in this webpage is submitted by users or free to download on the internet. I make no representations as to accuracy, completeness, currentness, suitability, or validity of any information on this page and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. All the other pages you visit through the hyper links may have different privacy policies. If anybody feels that his/her data has been illegally put in this webpage, or if you are the rightful owner of any material and want it removed please email me at "" and I will remove it immediately on demand. All the other standard disclaimers also apply.