Bank Pay Hike Update : Details of Meeting with IBA on 28th Dec.

Further to the discussions held between the IBA and the Unions on 9 & 10th December, 2009 another round of bipartite discussions took place today at Mumbai between IBA and AIBEA / NCBE / BEFI / INBEF / NOBW. IBA was represented by their Core Committee headed by Mr. Jagdish Pai (ED, Canara Bank). All the 5 workmen unions were represented in the talks.

In today’s meeting, discussions continued on construction of pay scale, revision of special pay, allocation of cost of various items, cost of retirement benefits etc. From the unions’ side, we have emphasized that maximum possible cost to be allocated for construction of revised basic pay. Various suggestions and proposals were discussed in the meeting. However, the discussions have remained inconclusive since on some of the issues, the IBA team wanted to discuss the matter with the higher authorities before reacting to the unions.

It was decided to continue the discussions on the next round of talks for which dates will be fixed up shortly

ultimate solution for calculating arrear of Bank employee(officer, clerk,substaff etc)

Use this ultimate xls sheet to calculate the arrears of officers .

Solution for all the problem relating to arrears , new salary etc

http://www.2shared.com/file/9973081/8634e25c/Copy_of_Arrears-Worksheet-vers.html

Use this ultimate xls sheet to calculate the arrears of officers clerical and sub staff

http://www.2shared.com/file/9973131/640251a0/Bank_Arrear_2.html

Terms used in xls sheet.
FPP/FPA : Fixed personal allowance
FPP-PF /FPA-PF : Fixed personal allowance / Povident fund
PQA/PQP : Professional qualification allowance

Note : 1. Please check all the rows of "Old Basic" column of sheet "Fill Data" in Bank_Arrear 2
file.
2. After entering all the desired fields check sheet "Arrear sheet " in Bank_Arrear 2 file

Note : the results of arrears from two utilities may be different as the basic is not upto date.

New Salary of Bank PO after Wage hike

MS Office template for Bank PO's expected New Salary after 9th Bipartite Settlement

http://www.2shared.com/file/9595486/f2c0fee5/salary_as_per_9th_bipartite_se.html


MS Office template for Bank PO's old Salary before 9th Bipartite Settlement

http://www.2shared.com/file/9595490/2b86a91/salary_as_per_8th_bipartite_se.html

Just change your Basic and according to annual increment for Bank Officers .

MINUTES OF THE DISCUSSSIONS HELD ON 27th NOVEMBER 2009

MINUTES OF THE DISCUSSSIONS HELD

ON 27^th NOVEMBER 2009 between

IBA representing Management of Banks which are parties to the

Bipartite settlement and the Four Officers’ Association

viz., AIBOC, AIBOA, INBOC & NOBO on wage revision

Discussions were held between the Indian Banks’ Association representing management of Banks and the authorized representatives of Four Officers’ Associations viz., All India Bank Officers Confederation, All India Bank Officers’ Association, Indian National Bank Officers’ Congress and National Organization of Bank Officers on wage revision for officers in banks. After holding several rounds of discussions, the parties have mutually agreed as under:

1. The wage revision will be effective from 1.11.2007

2. The annual wage increase will be Rs.2239 crores

3. The additional cost of pension on account of wage revision in excess of statutory contribution of 10% of pay will be shared equally between management and employees [13% of pay each] and the share of employees so calculated will be deducted from the agreed wage increase while revising salary and allowances.

4. All other issues of the Management and Association discussed during the process of negotiation will be settled to the mutual satisfaction.

5. The parties will meet on mutually convenient dates to draw out a detailed Joint Note on the various issues on which consensus positions have been reached. The parties will endeavour to finalise the Joint Note within a period of ninety days from the date of this minute.

Signed on Mumbai on 27^th November 2009

for MANAGEMENT For OFFICERS’ ASSOCIATION

/sd/ /sd/ AIBOC / AIBOA/INBOC/NOBO

CONGRATS & RED SALUTES

CONGRATS & RED SALUTES

– UFBU SIGNS MINUTES WITH IBA

– ANNUAL WAGE INCREASE OF RS. 4816 CRORES FROM 1-11-2007

– ONE MORE OPTION FOR PENSION ACHIEVED

WE DEDICATE THIS ACHIEVEMENT TO THE MEMORY OF

COM. PRABHAT KAR ON HIS 25TH DEATH ANNIVERSARY DAY

Yes, today, 27-11-2009, is the 25th death anniversary of our great leader and doyen of

bank employees trade union movement, Com. Prabhat Kar. On this solemn day and during

the centenary year of this father of our movement, we deem it a befitting commemoration

and tribute to his life-long pioneering role in shaping up the service conditions of bank

employees that the Minutes have been signed with the IBA on our wage revision demand

and more importantly, securing another option for more than 3 lacs of

employees/officers/retirees to get the benefit of our unique pension scheme.

Salient features:

a) Annual wage increase of Rs. 4816 crores (Rs. 2239 crores for officers and Rs. 2576

crores for workmen employees) w.e.f. 1-11-2007.

b) All the existing employees who are now in PF scheme will be given an option to join the

existing pension scheme.

c) All those who have retired after the date of Pension Regulations till date will also be

given an option to join the pension scheme.

d) Full settlement on the above to be finalized within 90 days.

__________7th BPS ______ 8th _______ BPS NOW

Additional annual wage load 12.25 % 13.30 % 17.50 %

Total quantum of annual wage 1497 crores 2200 crores 4816 crores

increase (Officers & Workmen)

Annual Average Per Capita Increase:

Ø For Workmen employees 12,550 23,300 56,200

Ø For Officers 24,025 43,600 91,800

ONE MORE OPTION TO JOIN PENSION SCHEME- A UNIQUE ACHIEVEMENT:

– In 1993, after bitter struggles and against all odds, AIBEA and AIBOA achieved

pension scheme for bank employees. Today, once again, with the leading role of

AIBEA and AIBOA, another milestone has been anchored. More than 3 lacs bank

employees, officers and retirees will now get another option to join the pension

scheme to insulate themselves with this unique social security benefit. It is a very

commendable achievement indeed.

–

MOU SIGNED BETWEEN IBA & UFBU

CONGRATULATIONS TO ALL OF YOU FOR UNIQUE DISPLAY OF UNITY. MOU SIGNED BETWEEN UFBU & IBA ON WAGE REVISION SETTLEMENT & PENSION OPTION. WAGE REVISION 17.5%, PENSION TO ALL - COST SHARING 70:30, FINALISATION OF SETTLEMENT & ARREARS PAYMENT SHALL BE WITHIN 90 DAYS. DETAILS FOLLOW

BA, bank union to meet over wage revision

KOLKATA: The Indian Banks' Association (IBA) and United Forum of Bank Unions (UFBU) have agreed to meet on November 27 to take the wage bipartite

talks forward. Over 7 lakh public sector bank employees will keenly wait for the outcome of the meeting. Wage revision for them is due from November 2007.

Incidentally, both negotiating parties have agreed on a 17.5% wage hike. They have also in principle agreed to offer monthly pension to 2.66 bank employees, who did not opt for it in 1993. But their last meeting in the final week of September remained inconclusive as they could not arrive at the accounting methodology of pension.

"Issues like accounting for the cost of pension and the cost sharing arrangement between bank management and employees, the proposed introduction of New Pension Scheme (NPS) and variable pay are some issues that need to be resolved," said All India Bank Employees Association (AIBEA) president Rajen Nagar.

UFBU -- the umbrella organization for nine leading bank unions -- is not also comfortable with IBA’s proposal to introduce NPS for bankers joining after April 2010.

IBA and UFBU jointly finalise the pay hike plans for public sector bank employees. Talks on the eighth bipartite meeting has been on for quite sometime now. Public sector banks including State Bank of India have 2.44 lakh officers and 4.68 lakh workmen employees who are awaiting a wage revision now.

Bank Wage Revision : Are the Unions leaders in backfoot ?

Still there is no news about the next date of talks with IBA as it appears IBA wants to wear out these retired union leaders who are not in touch with the mood of the general employees and officers. IBA is trying that by delaying the next around of talks to the maximum extent possible they will frustrate these leaders who will be forced to sign on dotted lines. Union leaders are not at a bargaining advantage at this stage, as they have failed to get an honourable settlement at appropriate time due to their own politics.

The best time to get a reasonable settlement was around November 2007, when the new settlement had become due. At that time communists shared power with the government (most of bank unions are affiliated with communist parties) and elections were around the corner. Central Government employees were able to extract the maximum by hitting at the right time.

It is surprising that Bankers are frequently asked by Communists to go on strike on issues which are their personal agendas and not wage settlement or improvement in working conditions of the employees. They ask Bank union leaders to go on strike on petty issues which are related purely to their politics. However, we have never heard any communist leader either on TV or newspaper, wherein they come openly to support an honourable settlement for bank employees or ask for All India strike in favour of bank employees.

Do you remember when did the last time any communist leader (like Somnath Chatterjee, Karat Parkash , SitaRam Yechury) has given any statement in favour of bank employees or taken up this cause with Finance Minister or Prime Minister or spoken about the same in Parliament? Do you remember any contribution of communist leaders for better pay for bank employees when they shared power for over four years with Congress Government? Did they ever made any strong (we are not even aware of weak) speech in Lok Sabha or Rajya Sabha in favour of pay parity of bank employees with Central Government employees? Answer to all these are in negative. However, all these MPs ensued that their salaries and perks are increased manifold.

However, sensing the mood of the bankers, unions are now desperately trying to face save themselves and issue statements as if negotiations are going on with IBA. Therefore, they meet among themselves issue statements giving impressions to gullible bankers as if matters are under strong discussions with IBA. It is heard that a meeting of the UFBU was held on 4/11/2009, at Chennai. Com P S Pillai (President, BEFI) presided over the meeting. The following decisions were taken by UFBU: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.In respect of 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.In respect of 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.In respect of 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.

No union leader has the courage to respond to the numerous queries of the bankers who are anxiously waiting for honourable settlement.

(These analysis is made by a bank employee, debates are welcome in this issue. Publisher of this blog is neither in favour nor against of the opinion)

UFBU Meeting on 04-11-09

A meeting of the UFBU was held today (04-11-09) in Chennai. Com P S Pillai (President, BEFI) presided over the meeting.

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. 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. 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. 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.

Comrades, we are aware that speculations and rumours are being circulated here and there which are only adding to the anxieties of the membership. Hence UFBU appeals to all units and members not to fall a prey for such propaganda and close up the ranks at this crucial juncture when all attempts are being made by the UFBU to expedite the settlement.

SBI earnings climb by 10%

MUMBAI: State Bank of India, the nation’s largest, said quarterly earnings climbed 10% on gains from bonds and currency trading even as its profits from lending to companies and individuals fell. Bad loans rose. Net profit advanced to Rs 2490 crore in the September quarter matching estimates, from Rs 2260 crore a year earlier, the bank said in a statement.

A survey of analysts forecast showed its net profit may rise to Rs 2460 cr. "The performance would have been much better had it not been for the huge liquidity overhang, additional provisions for pensions and wage settlement," said O.P. Bhatt, the chairman of the bank. State Bank of India is fighting a deluge of deposits rush after the collapse of Lehman Brother Holdings led to a run on many banks which were seen weak.

The reduction of benchmark rates by the Reserve Bank of India to beat the credit crisis has brought down the lending rates for borrowers, but the banks, especially public sector ones, were not able to reduce deposit rates proportionately leading to pressure on their profitability. Also, the relaxation of bad loan norms to fight the credit crisis is coming home to roost.

"State Bank of India is a barometer of the Indian economy, and if the economy does well, so should State Bank, especially given its wide presence," said Sandesh Kirkire, chief executive officer of Kotak Mahindra Asset Management Co., which manages 380 billion rupees in Mumbai. "All indicators of the economy point to a revival and SBI should benefit directly from it," press reported Kirkire as saying.

Treasury profits rose 236% to Rs 545 crore from Rs 162 crore while profit from core fee income, i.e., commissions and brokerages, rose 58% to Rs 2103 crore, from Rs 1331 crore a year earlier, the bank said. But the lending business has not improved to the pre-credit crisis levels even as the central bank has cut its loans growth for the fiscal year to 18% from 20% earlier.

Its pre-tax profits from corporate lending fell 10.4% to 1,408 croers in the September quarter, from 1,573 crores a year earlier. So was the case with retail lending where pre-tax profits fell 27 % to Rs. 1703 crores from Rs. 2,337 crores a year earlier, according to the statement.

The stress in the economy despite the credit easing measures is reflected in rising bad loans of the bank. Gross non-performing assets, or NPA, rose to 2.99% in September ‘09 quarter, from 2.79% in the preceeding quarter. The incremental retail NPAs accounted for 44% of total incremental NPA.

The bank has provided Rs 7449 crore crore for bad loan on its gross NPA of Rs 17,376 crore. Its provision coverage ratio (PCR) stood at 42.8%. Mr Bhatt said that if RBI’s norm that all banks should have PCR of 70% is to be adhered, the bank will have to make additional provision of Rs 5,000 crore.

The bank’s NPA has increased by Rs 1662 crore in six months ending September 09. Deposits rose 25%, despite its attempts to stem the flow by lowering the interest rates. The deposits rose by Rs 9341 crore in second quarter compared to Rs 67,000 crore in the first quarter when investors fled for safety. The share of low cost deposits stood at 40.9% against 39.7% a year ago. Loans were at Rs 580,237 crore, growing 16% from a year ago.

Government betrayed Bank Employees

CHANDIGARH: The Government has betrayed 10 lacks bank employees of the country. Bank employees wage revision was due in November, 2007.In the last two year number of negotiation meetings took place.

On 9th June IBA offered 17.5% wage revision and one more option of pension to bank employees. Unions were demanding 20% plus for wage revision and one more option of pension. First time in the history of banking and wage negotiations Govt. reduced their offer from 17.5% to 15 and then 13%.

After observing two days strike on 6th and 7th August, 2009 Govt. restored their offer of 17.5% but put some more conditions like implementation of New Pension Scheme from 1.4.2010 for one more option of Pension Unions opposed it. In the last round of negotiation held on 24th September, 2009 IBA brought some more management issues like outsourcing and performance linked wages which were also rejected by the unions. Unions also protested against the IBA’s demand for sharing of deficit in Pension Fund during the next wage revision and thereafter no meeting took place.

Before Deepawali Govt. through Electronic and Print media gave the signal that they will settle the issues of bank employees and they will get wage revision before Deepawali. Through these signals Govt. took advantage in elections in three States. But no real efforts were made by the Govt. to settle the issues.

Sharing of deficit in Pension Fund during the next wage revision issue is pending with the Finance ministry. NOBW demands that Govt. should keep its word and settle the issues.

Bankers may need to wait a little longer for wage hike

KOLKATA: There is always a slip between the cup and lip, as they say. And for nearly eight lakh bank officers and employees waiting for their five-yearly 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.

TALKS WITH IBA Date: 24 / 09 / 2009

To All Constituent Unions & Members,
Dear comrades,
TALKS WITH IBA TODAY
Bipartite talks were held today with the IBA in Mumbai. IBA was represented
by Mr. M. V. Nair, Chairman and other members of the Negotiating Committee.
From our side representatives of all our unions participated in the talks.
All issues like quantum of wage increase, option to join pension scheme by
employees in PF, extending the option to retirees, Compassionate Appointment
/ Financial Compensation Scheme, etc were discussed in the meeting. IBA took
up their issues like outsourcing, streamlining the special pay posts, etc. Issues
like accounting the cost of pension, introducing new pension scheme etc was
also taken up by them. Discussions were held to take the issues forward with
amicable solutions. While some progress has been made to sort out the various
issues during today’s talks, there are also some hurdles and difficulties which
are needed to be overcome.
It was decided to discuss these issues further in next round of meeting and
endeavor to resolve the issues at the earliest to reach broad understanding on
the issues and to expedite the final settlement.
The discussions have now entered a crucial stage and hence we need to be
extremely careful while taking all efforts to finalise the settlement.

Bankers are not in a high-wage island

A bank officer earns just over half that of a Group ’A’ Central Government officer at the lowest level.

-------------------------------------------------------------------------
While the Pillai Committee recommendations, implemented in July 1979, established parity between bank and government officers, subsequent Pay Commissions over the years have widened the gap between the two categories.
-------------------------------------------------------------------------

K. Anandakumar

A myth has slowly gained ground that bank employees are paid inordinately high wages. While arriving at this opinion, there has been no attempt to compare the wages of bank employees with other comparable professions, chiefly those employed in government. A closer scrutiny would suggest that bank employees are, in fact, poorly paid, and not part of a high-wage island.

In a perfect market, every factor of production gets its due share. But in reality, markets are unfair and imperfect. The stakes are loaded heavily against the working class; that explains the growing disparity between the capital-owning/top managerial class and the labour class, despite breathtaking GDP growth rates.

The disparity exists not just vis-À-vis labour and the managerial class, but also across categories of the labour class. The latter exists because “relativity” has not been maintained.

There are two forms of relativity that need to be considered — internal relativity, which looks into whether the salary levels within the organisation correspond to the organisational hierarchy; and external relativity, which deals with the relationship between the wages paid and the market wages.

GOVT EMPLOYEES FAVOURED

Prior to 1979, Group ‘A’ Officers of Central Government were earning less than bank officers. In 1979, the Pillai Committee was constituted to study the salary structures of bank officers and Group ‘A’ Officers of the Central Government and bring equity among various banks.

The Committee observed that the functions and responsibilities of bank officers in the new set-up were comparable to those of Group ‘A’ Officers in the Central Government and suggested pay parity between them.

The Pillai Committee recommendations were implemented in banks with effect from July 1, 1979, and the pay scale of the lowest rung of officers in banks were equated with pay scales of the lowest rung of Group ‘A’ Officers of Central Government at Rs 700.

The parity which was established by implementing the Pillai Committee Recommendations was distorted by subsequent Pay Commission revisions. In the Sixth Pay Commission, the wages of Group ‘A’ Officers zoomed past the bank officers’ wages. External relativity was given a quiet burial.

It is quite appropriate to compare the salary of bank officers with Group ‘A’ Officers of the Central Government to ascertain whether bank officers constitute a high-wage island.

The basic pay according to the Fifth Pay Commission for Group ‘A’ Officers was Rs 8,000 and the corresponding pay for bank officers was Rs 7,100. But in the Sixth Pay Commission the basic pay for Group ‘A’ Officers of the Central Government went up to Rs 21,000 (basic pay Rs 15,600 + grade pay Rs 5,400) whereas the pre-revised basic pay of bank officers was only Rs 10,000.

Between the Fifth and the Sixth Pay Commissions, the basic pay of Group ‘A’ Government officers went up by 162.5 per cent.

The gross salary of government officers was Rs 31,312, whereas the bank officer’s salary was only Rs 16,110. It can be seen that a bank officer draws a gross salary which is just 51.45 per cent of the gross salary of Group ‘A’ officers at the lowest rung.

Even house rent allowance was paid at 30 per cent of basic pay for government officers, whereas bank officers were getting a maximum of 8.5 per cent in metros. The pre-revised salary of the bank clerk was Rs 6,600 as compared with the Central Government clerk’s salary of Rs 11,000.

Many State Governments have adopted the Sixth Pay Commission Recommendations. A number of public sector undertakings have implemented the Pay Commission recommendations as a benchmark for their salary revision.

The government, public sector and private sector undertakings are paying high salaries to their entire workforce, with the exception of the banking sector. Given these facts, can bank officers and employees be described as belonging to an island of high wages?

MORE WORK, LESS PAY

The business hours for the customers used to be four hours a day and working hours for the staff was seven hours with a 30-minute lunch break. To provide best customer service, the business hours have been increased to six hours, within the stipulated working hours of seven hours a day. After business hours, the bank staff need three to four hours to complete back-office work at the branch level, because of which the working hours for officers are practically extended to about 11 hours a day without any monetary compensation or increase in salary structure, whereas new generation private sector banks duly compensate the extended working hours in their salary packages.

We have completed 40 years of bank nationalisation, and we owe our gratitude to the then Prime Minister Indira Gandhi for taking the bold step. The country’s transformation since then is in no small measure due to the role played by nationalised banks.

We feel proud to work in nationalised banks and be part of the nation-building exercise.

We started with social banking but now have almost attained the standards of global banking. Yet, we are paid less than municipal wages.

The need of the hour is to restore the pay parity with government employees and uphold external relativity as done by the Pillai Committee 30 years ago.

(The author is Vice-President, AIBOC.)

Salary preperation templete

This template is helpful for the Bank Officers/managers who want to manage their expenses , tax calculation,salary automation etc , its handy and simple to use , Prepare your salary with the help of this template . Just change the Basic to your current basic.

http://templates.services.openoffice.org/en/node/2769

(To open above template you need to download the "Open office" software from : http://www.openoffice.org/)

http://www.2shared.com/file/7970091/dda507ae/bank_po1.html


(To open above template e you need to have MS office)

Salary Difference Central Govt Employees V/S Bank Employees (in May 2009)

BIPARTITE DISCUSSIONS WITH IBA - 24.09.2009 at MUMBAI

BIPARTITE DISCUSSIONS WITH IBA - 24.09.2009 at MUMBAI

info source http://www.aiboa.org/

Arrear & Salary of Bank PO after settlement

SBI staff seek hike in remuneration

Kolkata, Aug. 13 State Bank of India, it appears, will continue to struggle with the problem of staff shortage unless the remuneration of its employees is significantly stepped up.

According to the State Bank of India Staff Association, Bengal Circle, more than 13,500 employees of the bank retired in 2008-09, and though the bank recruited 33,000 people during the year, an estimated 40 per cent of the new recruits left on account of the poor pay packets.

The bank’s business is growing and with it the expectations of its customers about service quality. To render satisfactory customer service, the bank will need a motivated workforce. But the association apprehends it will not be possible to attract good people and thus build a motivated workforce at the current levels of remuneration. The problem will assume critical proportions in the next four years when a large chunk of the existing employees retire.

Contrary to the general perception, the remuneration of bank employees is poor vis-À-vis that of Central and State Government employees. As a spokesman for the association points out, the total remuneration of a clerk based in a metro and working in the lowest grade in SBI is Rs 7,919 per month, which is to rise to Rs 9,300 per month as per the Indian Banks’ Association’s recent offer of a 17.5 per cent wage hike. This compares poorly with the remuneration of a lower division clerk in the West Bengal Government, whose starting monthly income is Rs 11,880 and that of an upper division clerk in the Central Government, Rs 17,150.

A probationary officer in SBI starts with a salary of Rs 19,181 per month and in other banks Rs 16,146, says the spokesman. Side by side, under the State’s School Service Commission, a teacher with a Master’s degree starts at a monthly salary of Rs 21,000, a teacher with an Honours degree with Rs 19,000, and a teacher with a just pass degree at Rs 16,800. A West Bengal Civil Service Grade ‘A’ Officer starts with a salary of Rs 27,810, he adds.

Hats off to you Comrades Congratulations for the grand success of our two days Strike on 6th and 7th August, 2009

Salutes to all our members ! Congratulations. Once again the total unity and traditional militancy of the bank employees and officers have been so well-manifested, if at all anyone had any doubt about it. The 2 days continuous strike at the call of UFBU has been a roaring success. The participation has been so huge and massive. The turn out in the processions, rallies and demonstrations have been unprecedented. It was wholesome and overwhelming. Hats off to all our unions and members. You have done it again.

Our strike on 12th June was deferred because the IBA appeared to be positive and an agreement seemed possible. But the events thereafter have proved the designs of the Government and the bankers. Not only they went back on their offer, most shockingly, in the talks held as late as on 4-8-2009, they reduced their offer to 13%. They went back on the understandings on pension option as already agreed upon and informed further that the revised scheme on compassionate ground appointment/financial compensation scheme as mutually worked out cannot be implemented. They went back on all the issues and made a mockery of the negotiations held so far. It was obvious that the Government was calling the shots from behind. Hence, there was no alternative for the UFBU than to go ahead with the strike action. The last minute conditional offer of IBA could not be accepted by the UFBU. The employees and officers rightfully showed their resentment and anger over the IBA/Government going back on their offer and commitments. The insult and humiliation was befittingly answered by this strike.

About our strike, some newspaper editorials condemned the strike; the Corporates were furious; the Government was unhappy; the banking public were no doubt inconvenienced. But who was responsible for this ? UFBU served the strike notice on 16-7-2009. But IBA held the talks only on 4-8-2009 just one day prior to the strike. And if the bankers and Government go back on their commitments and offers, what do we do ? Can we keep quite ? Hence strike was the answer.

Our strike could not be ignored. The press and media conceded that the strike was total and full. The issue was raised both in the Lok Sabha and Rajya Sabha in the Parliament. Sri. Sanjiva Reddy, Sri. Gurudas Dasgupta, Sri. Basudev Acharya, Sri. Mulaym Singh Yadav, Smt. Sushma Swaraj, Sri. Sharad Yadav, Sri. R C Singh, Sri. Tapen Sen and many other leaders took up our cause. We are thankful to them.

Emergent Conciliation Meeting: In the background of the total resentment of the bank employees and officers and the massive success of our strike, the Government had to move in and the Chief Labour Commissioner, Ministry of Labour, Government of India convened a meeting today (07-Aug-09) at 3-00 PM in his office in Delhi.

IBA was represented by Sri Ramakrishnan, Chief Executive, Mr. Unnikrishnan, Dy. Chief Executive and Mr. Venugopal, Officer on Special Duty. UFBU was represented by leaders of our constituent unions.

In this meeting, the IBA informed that they have reconsidered the matter and made the following offer as a package:

1. Increase in wages: 17.5 % increase over the establishment expenses of Banks as on 31-3-2007.

2. New Pension Scheme to be introduced to new entrants with effect from 1-4-2010.

3. The existing PF optees may be given another option for pension as per understanding reached between IBA and UFBU on 9th June, 2009 when it was agreed that the employees would share Rs. 1800 crores out of Rs. 6000 crores funding gap identified in the joint actuarial valuation subject to the condition that at the time of the next settlement again another actuarial valuation will be carried out and the funding gap so arrived at would be shared in the ratio of 30% by the employees and 70% by the management.

4. Compassionate appointment issue would be discussed separately.

After discussing the above offer of the IBA within the UFBU meeting, it was informed to the CLC and IBA that while taking note of the offer, the Unions need further clarifications and discussions and hence suggested a bipartite meeting for the same. CLC suggested that the IBA and UFBU may hold bipartite discussions at the earliest. The date of bipartite talks will be fixed up at the earliest.

Further developments will be informed to unions and members in due course.

CLC-UFBU MEETING – DELHI – 07.08.2009

The Chief Secretary, IBA, Shri Ramakrishnan, attended on behalf of the management and submitted that after reconsideration IBA proposed to revise offer as a package in toto as under.

1. Increase in wage -17.5% increase in the establishment expenses over the establishment expenses of banks as on 31.03.2007.

2. New Pension Scheme to be introduced to new entrants with effect from 1.4.2010.

3. The existing PF optees may be given another option for pension as per understanding reached between IBA and UFBU on June 9, 2009 when it was agreed that the employees would share Rs.1800 crores out of Rs.6000 crores funding gap identified in the joint actuarial valuation subject to the condition that at the time of the next settlement again another actuarial valuation will be carried out and the funding gap so arrived at would be shared in the ratio 30% by the employees and 70% by the management. The representatives of the management added that compassionate appointment issue will be discussed separately.

Convenor of UFBU submitted on behalf of the UFBU that while taking the note of the offer of the management, the constituent unions need further clarifications on certain issues. UFBU suggested that IBA may fix up a Bipartite meeting at the earliest for the purpose.

CLC[C] suggested that parties may hold a Bipartite discussion as early as possible. The next date of conciliation proceedings will be fixed after hearing from the parties.

IBA changes its stand late night(UFBU to go ahead with two days strike)

Through our press release issued and sent to all our unions, we had informed that in the bipartite meeting held between IBA and UFBU on 4-8-2009 the IBA had further gone back on all the issues discussed with them.

Wage Revision : IBA further reduced their offer to 13%

Pension option: IBA informed that they cannot offer the PF optees another option to get the same pension benefits but may be extended a different alternative pension scheme based on their PF amount. Pension costing has to be re-examined.

Compassionate Appointment scheme: The mutually worked out scheme cannot be agreed upon

In this highly provocative, insulting and humiliating situation, while protesting against the IBA’s going back on agreed decisions/offer, we informed them that we have no alternative than to go on action. The IBA appealed that since the matter needs guidance and clearance from the Government, the matter needs to be pursued at those levels also.

In the conciliation meeting held thereafter, nothing special emerged and hence UFBU decided to go ahead with the strike call.

However, late in the evening around 11-00 PM, IBA Chairman informed us they are ready to offer a revised package as under:

Wage revision may be offered at 17.5%;

New Pension scheme to be introduced for new employees;

PF optees may be given option to get the existing pension scheme provided Unions agree that the additional cost of pension should valued every year and the extra cost over and above 10% should be shared by the employees at 33% and management at 67%. Compassionate appointment scheme to be dealt with separately.

The IBA Chairman appealed to UFBU to accept this offer and withdraw the strike

During this late hour meeting with IBA Chairman, the UFBU while taking note that IBA is reversing the reduced offer, however felt that the changed offer on pension option is altogether a new proposal and in deviation of whatever we have discussed so far. It was also felt that the compassionate appointment scheme cannot be totally delinked from the issues.

Hence UFBU felt that the revised proposals cannot be accepted and our agitational programmes should be continued.

It was further decided that UFBU meeting be held in Chennai on 11th August, 2009 (instead of 9th ) to take stock of the situation and to decide further course of action.

Go ahead and make the strike action a total success.

Talks fail; bank unions stick to strike plan

K.R. Srivats

New Delhi, Aug. 4 Bank unions have decided to go ahead with their two-day nationwide strike on August 6 and 7 after their bilateral talks with the Indian Banks’ Association (IBA) and the conciliatory talks under the aegis of the Chief Labour Commissioner failed on Tuesday.

The talks failed after the IBA further pruned its wage increase offer to 13 per cent and also made it clear that it cannot offer the existing pension scheme to those public sector bank officers and employees who had in the mid-nineties opted for provident fund as their second retirement benefit, after gratuity.

The United Forum of Bank Unions (UFBU), a representative body of nine unions, had urged the IBA to provide another option for about 3,00,000 employees to move from the provident fund scheme to the pension scheme.

“IBA today went back on its earlier offer and informed us that if at all an offer is to be made, it will be a reduced alternative pension scheme and cannot be the existing pension scheme. This is a major setback as we were hoping that the 2,50,000 employees and 50,000 persons who had retired will get another chance to opt for the existing pension scheme,” Mr C.H. Venkatachalam, UFBU convenor, told Business Line.

After months of negotiations, the IBA and the UFBU had agreed to appoint an actuary/consultant to arrive at the quantum of outgo to the banks if the 3 lakh people who had opted for the provident fund scheme were to be given another chance to shift to the pension scheme. The actuarial estimate of the liability stood at Rs 17,000 crore, of which the PF accumulations of these employees stood at Rs 11,000 crore.

The gap of Rs 6,000 crore had to be filled. The managements were asked to fork out Rs 4,200 crore and the employees were game to bring in additional Rs 1,800 crore. However, with the Government intervening in the wage talks, the IBA had toughened its stance on both the wage hike front as well as the pension option front, sources close to the developments said.

IBA had initially agreed to offer 17.5 per cent hike in wages, but later brought it down to 15 per cent. Now, the latest offer is for 13 per cent. The wage revision of public sector bank officers and employees is due from November 2007.

Talks between IBA & UFBU fails(dated 04.08.2009)

The today's talk between IBA & UFBU fails .IBA Now offering only 13 % hike. Never in the history of negotiation this kinda Cheating was done with Bankers .

Get ready for Indefinite strike .
We are not beggars we

Save Now

are nation builders and they are treating us like nothing

BIPARTITE DISCUSSIONS WITH IBA - 11.05.2009

As quoted in http://www.aiboa.org/

"

• IBA informed that we have to finalise the details in regard to the following:

• Wage revision - they are prepared to hike the offer to 15%

• On the issue of pension IBA stated that it is a package and unless the New Pension Scheme is accepted, other issues can not be discussed.

• On Compassionate appointment Govt. had informed that even the restricted retrospective effect can not be considered.

UFBU has rejected the negative proposals of IBA and informed that the wage offer is meagre.

New Pension Scheme can not be accepted.

UFBU meets this afternoon to decide the future course. Await UFBU circular for details"

Bank unions to decide next move on March 5

BS Reporter / Bhubaneswar March 02, 2009, 0:40 IST

With the ninth bipartite wage settlement of bank employees ending inconclusively and the Union finance minister not giving any concrete assurance on revision of salaries, the United Forum of Bank Unions (UFBU), an umbrella organisation of nine bank unions in India, has decided to meet in Chennai on March 5 to decide its future course of action.
"UFBU has decided to meet in Chennai on March 5 to decide on their future course of action. In that meeting, we will take a call on whether the bank employees across the country would go for a strike to press for their demands," said G D Nadaf, general secretary, All India State Bank Officers' Federation (AISBOF).
He was speaking at the annual general body meeting of the Orissa circle of the State Bank of India (SBI) Officers' Association.
UFBU had approached the finance minister Pranab Mukherjee on February 27 after the ninth bipartite wage settlement of bank employees ended inconclusively on February 22.
While the finance minister said that the code of conduct of the ensuing Lok Sabha elections in the country would not be a deterrent in announcing the salary revision for bank officers, he did not give any concrete assurance on the issue, said Nadaf.
The ninth bipartite wage settlement of bank employees across the country ended inconclusively in Mumbai after the UFBU spurned the offer made by the Indian Bank Association (IBA). IBA had offered only 13 per cent hike in salaries as against 30 per cent demanded by UFBU.
Besides revision in wages, the bank employees have demanded introduction of the pension scheme for the employees and re-introduction of compensatory appointment in the banking sector.
Speaking on the occasion, G Muthuswamy, general secretary, SBI Officers Association (Bangalore circle), said, "The officers of SBI work under intense pressure and there is no manpower planning by the bank management. The management should lay emphasis on proper manpower planning for optimum utilisation of its human resources."
A K Motayad, secretary, Orissa Unit of All India Bank Officers' Confederation said, "Apart from salary revision, we should also demand better service conditions so that we live a life of dignity and are able to spend quality time with our families. We want a respectable pay revision with regulated working hours and other non-financial benefits."

Bank staff to take up wage issue with PM

BS Reporter / Berhampur February 23, 2009, 0:59 IST

With the ninth bipartite wage settlement meeting of bank employees ending inconclusively in Mumbai on Saturday, the aggrieved United Forum of Bank Unions (UFBU), an umbrella organisation of nine unions, has decided to take up the issue with Prime Minister Manmohan Singh and Finance Minister Pranab Mukherjee. In case talks with the PM and FM fail, bankers will go on a nationwide strike in March, the union leaders said.

The talks failed when UFBU rejected the offer made by the Indian Bank Association (IBA) to increase the wages by only 13 per cent as against the demanded 30 per cent.

“While we had asked for a 30 per cent increase in wages, IBA offered only a 13 per cent hike,” said T Ravindranath, an UFBU leader and general secretary of All India Andhra Bank Award Employees’ Union (AIABAEU).

B S R Mohan Reddy, chairman, AIABAEU, said, “We have rejected the offer and demanded a 30 per cent increase in wages, considering all aspects including the implementation of the recommendations of the Sixth Pay Commission for government employees.”

Talks with IBA (11.02.2009)

As quoted on AIBEA's webpage

Another round of discussion was held today between IBA and UFBU. The IBA was led by Mr. M. V. Nair, Chairman of the Negotiating Committee, while UFBU was represented by our constituent unions.

1. Pension Option : In today’s meeting IBA informed that the report of the common actuaries relating to the additional cost for extending pension option to the past retirees from 1996 has been received which has identified an additional net liability of around Rs. 3,000 crores. IBA indicated that the issue can be resolved on the same basis as will be finalised for the existing PF optees who are in the banks’ service. It was decided to discuss the issue further.

However, IBA insisted that the new employees who will henceforth join the banks should be governed by the new pension scheme as has been implemented by the Government for new employees from 2004. From UFBU, we vehemently objected to this condition and demanded that the future employees should also be governed by the existing pension scheme.

In view of the divergent views on the matter, it was decided to discuss the matter further in the next round of meeting.

Regarding sharing of the additional cost, from UFBU we maintained our earlier stand that Rs. 1,500 crores can be borne by us while the balance by the banks. The IBA, while informing that they would like to resolve the issue by discussion, did not indicate any further offer than that was made in the last meeting.

2. Wage Revision : In this meeting, from UFBU we emphasized the need for a substantial increase in the offer made by the IBA. After discussion, IBA came forward to offer an increase in wages of Rs. 3,600 crores for the employees and officers put together as against Rs. 2,750 crores offered in the last round of discussion. We stated that the offer of IBA needs to be further improved substantially.

Preceding this discussion, in the morning session the IBA had another round of discussion with the workmen unions regarding streamlining the Special Pay Post in the emerging context of CBS system in the bank branches. It was agreed to discuss the matter further. Regarding IBA’s demand for a provision to dispense with the employees above the age of 50 years without holding any departmental enquiry in public interest, the same was rejected by the unions and IBA agreed not to insist on the same.

It has been decided that very shortly further round of discussions will take place on the above issues with a view to find an early and amicable resolution of our demands.

With greetings,

Yours Comradely,

Sd/-


C.H. VENKATACHALAM

CONVENER

PSU Bank staff to get pension in new regime

After years of wrangling, public sector bank employees are set to get a comprehensive pension benefit.

All employees of public sector banks are likely to be brought under the pension benefit with the implementation of a new wage formula, which is currently under discussion.

At present 2.5 lakh employees who are covered under the provident fund net do not enjoy pension benefits. The move could mean an additional cost of Rs 6,000 crore for state-owned banks.

The managements and trade unions are yet to sort out how the additional burden would be sourced and shared.

A meeting on the issue is scheduled to be held between the Indian Banks Association and the trade unions on Wednesday.

“We are trying to bring all bank employees under the pension net and the management and employees both would be required to share and shoulder the additional burden,” C.H. Venkatachalam, general secretary, All India Bank Employees Association (AIBEA) told p.

Maligned for decades after the government nationalised several banks between 1969 and 1978, public sector banks have since grown in size and branch network.

The employees who were considered high cost and inefficient amid a wave of computerization that spread through the global banking industry in the 1980s are suddenly on strong ground because the balance sheets of Indian public sector banks are looking good in contrast to crisis-hit banking giants of the West.

Employees may get a hike of about 15 per cent or more with all public sector banks standing tall. Most banks have already made a provision for the increased wages. Depending on the size of the banks, the additional outflow due to the increased wages is likely to between Rs 150 crore and Rs 500 crore.

Industry sources said that negotiations on revision of wages have already reached the final stages and an announcement on a settlement may well be made before the general elections.

New Delhi, February 10, 2009

Erosion of Social status of Bank officers:

Erosion of Social status of Bank officers:

There used to be a time when a bank officer’s job ranked second only to IAS in India in terms of economic and social status. Banking industry used to attract the best of talent especially in the officer cadre. This was so because the aspirants expected a dignified job profile with commensurate financial compensation.

However, for the last few years, the job of a PSB officer has lost its erstwhile charm. This has happened mainly because of de-linking of compensation from merit and insistence of the officers’ representative bodies to have uniform pay structure for one and all on the lines of workmen. This has been exploited by the bank managements by denying sharing the fruit of growth of banking industry with the officer fraternity. Unions’ stand has given the impression that officers are not competent enough to stand up to the professional challenges and want to hide behind the uniform pay structure. Performers are being made to subsidies the existence of non-performers within individual organizations, and employees of better performing organizations have to suffer because of incompetence of their counterparts in the weak banks. At the negotiating table of wage revision, IBA takes a strong plea that weak banks may not be able to bear the burden of increased compensation. Consequently, peanuts are given as revision in wages/ perks. Unions have never been able to convince IBA that bank employees are being given step motherly treatment vis-à-vis central Govt. employees/ other PSU employees. Even oil PSU employees, whose employers are being kept alive through regular capital infusions in the form of oil bonds, enjoy royal lifestyles and still show dissatisfaction about their remuneration.

It is increasingly becoming difficult for bank officers to maintain their social and economic status as compared to their peer group in non-banking public sector, leave aside private sector. An officer in PSB cannot afford to take on lease a LIG flat to house his family of 4-5 persons. He is expected to find an accommodation at Rs. 5300 per month in Delhi/ Mumbai whereas SBI pays Rs. 10,000 plus. It is embarrassing to note the response of landlords when they hear about the budget of PSB officers. The school managements do not even call him for interview if an officer in public sector bank applies for admission of their ward because they know that he will not be able to afford the expenses. There are number of such instances where the officers fail to justify to their families as to why they cannot have the same level of comforts (forget luxuries) which other PSU officers can easily manage, even though the bank officers have longer working hours, more working days and are constantly subjected to periodic transfers without adequate compensation. This, alongwith increased performance pressures, has been the main cause of increasing irritability among the officers as they feel that they have been caught in the vortex of indifferent management and biased representatives, with no say at both the forums.

We would like our representatives to consider that they should rise above the biased approach of fighting for a lost cause of the group to which they individually belong, to the peril of the majority of the working employees who have elected them to this responsible position, lest one should be forced to say, ”Lamho ne khataa ki, sadiyon ne sazaa payii.”

PLEASE CIRCULATE TO ALL COLLEAGUES (ALSO SEND SMS)

For central govt. employee the wage revision is at 40% with lots of other benefit , for PSUs the revision range from 60% to 90 % , for UGC teaching professionals the revision is at 60% & even in many state govt the revision is more than 50 % . But PSUs bank offer is at 10 % . Please ask yourself do you work less than other ? is your organization not making enough profit ? are you working at a very comfortable environment without risk & responsibility ? if your answer is NO , than u deserve a respectable wage hike
(LET US MAKE IT A MASS MOVEMENT )

PLEASE CIRCULATE TO ALL COLLEAGUES (ALSO SEND SMS)

Mail your anguish to IBA as well ,
Mailing Address of IBA : webmaster@iba.org.in

Banks face Rs 12k cr pension liability(business-standard)

Anindita Dey / Mumbai January 28, 2009, 0:45 IST

Public sector banks will have to provide for around Rs 12,000 crore to account for pension liabilities, according to rough estimates made by these banks.

The Indian Banks’ Association is currently in talks with representatives of employees on wage revision. The earlier agreement expired on October 31, 2007 and the revised wages will be applicable retrospectively from November 1, 2007.

Banking sources said the gap between the pension liability of PSU banks and the fund available with these banks is Rs 12,000 crore. This has been worked out as per Accounting Standard 15 of the Institute of Chartered Accountants of India which specifies the accounting treatment of retirement benefits to employers.

When AS-15 became operative in 2006, the initial estimate for the additional pension provisioning was estimated at Rs 6,000 crore. However, the latest wage revision may bring in an additional 275,000 bank employees who opted for provident fund earlier. Banks may also provide for the pension liabilities of 65,000 employees who have retired but have been seeking resort to the defined pension scheme since 1996. This second time option will require additional provisioning of Rs 6,000 crore, thus, making the total liability Rs 12,000 crore.

Sources also explained that banks may have to contribute more to the pension scheme now that the interest rate has started coming down and investments out of the scheme may not yield more .

As per the new standard, an organisation will have to calculate the last salary that will be drawn by an employee and provide for pension and gratuity liability on that basis. Prior to this accounting standard, companies usually provided for the pension and gratuity liability on the basis of their current salaries, but the actual payment is made on the basis of the last drawn salaries.

Bankers said if banks have to provide for the pension scheme, this will have to be adjusted against the total increase in the wage bill. However P. H. Ventakachalam, General secretary of the All India Bank Employees Association and Convenor, United Forum of Bank Unions, said this is unacceptable.

He also said that the IBA offer of a 10 per cent annual increase wages is also not acceptable. The current wage bill of PSU banks is around Rs 2,75,000 crore. Technically, the wage increase is calculated on the basis of the total establishment expense of banks. Employees up to the cadre of general managers are covered under this.

IBA is making bank employees fool

Our beloved late Prime Minister, Smt Indira Gandhi nationalized Banks in 1969 considering all pros and cons. She was very much clear in her vision. You can see her success now in the present world scenario when the American and European countries are in the tight grip of recession. It is a matter of surprise that the norms like Basel I, II , risk managements measures are said to be strictly followed by European and American Banks and they are most effected with economic failures in their countries. Now, it is the turn of our Govt. to reward Indian Public Sector bank employees suitably for following the rules and norms issued by the Govt of India, Finance Ministry in toto. There was a period near 1980 to 1986, when a Bank employee was getting salary more than an IAS officer. Now, the politics have changed the Govt.'s views towards bank employees. They are less in numbers. That is why they are unnoticed from political angle. The Bankers are the pillars of a healthy economy.

IBA proposes 10% wage hike to bank staff, but no decision yet

IBA proposes 10% wage hike to bank staff, but no decision yet

Newswire18 / Mumbai January 23, 2009, 0:11 IST

Indian Banks’ Association (IBA) has proposed a 10 per cent wage hike to bank employees, a source from the banks’ body said today.

“We have just given an indication. The last wage settlement (hike) was 13.5 per cent, effective from 2002. It all depends on how much banks can take as they will also have to bear the load of pension-related benefits, as and when they are revised,” the source said.

Today, IBA met bank unions to discuss wage revision and pension option for bank employees. “However, the unions did not reject or accept it. There was no concrete decision on the wage hike,” he said. IBA will meet bank unions again early next month. As of March 2007, the total salary bill of all state-owned banks stood at Rs 27,500 crore.

IBA decided that employees’ dearness allowance will be merged with their basic pay, with the base year being Consumer Price Index of September 2006, the source said. The dearness allowance was 25 per cent of basic pay as of September 2006. The discussion on pension scheme was inconclusive.

“With interest rates falling, the gap between the corpus that banks maintain for paying pension to employees and the present value of future payment of pension amount has widened,” the source said. Present value of future payment of pension amount means the current valuation of the ultimate pension liability for a bank, which has to be met at a later date.

Pension scheme of bank employees is a defined payment, which means a bank employee will draw pension as per his salary after retirement without any contribution from him. A private pension scheme is a benefit scheme, wherein the individual contributes a certain sum regularly.

“As it is a defined scheme, the banks have to pay huge amount of pension and that has to be provided. Now, the corpus is Rs 11,000 crore, while they will have to pay Rs 17,000 crore as seen from the net present value calculation,” the source said.

Bank mgmt, unions likely to agree on 24% salary hike

Mumbai: The ninth bipartite wage negotiation between the Indian Banks’ Association (IBA) and the United Forum of Bank Employees Unions (UFBU) is likely to be finalised with an agreement for a hike between 24-29% for the employees of the public sector banks. The final meeting between the two parties is taking place on January 21 in Mumbai.

IBA, which is representing the government and managements of banks is reported to have agreed raise bank employees’ wage by 24% while on its part, the UFBU, an umbrella organisation of nine bank employees unions has moderated its demand to 29%.

A source, who is aware of the developments, told FE on condition of anonymity, that ‘Now it seems that both the IBA and UFBU, are likely to reach a consensus figure on what should be the gross hike in the salary of the bank employees.

Earlier the UFBU had demanded a hike not below 50% at any cost, keeping in view the 40% hike for the central government employees during the sixth pay commission.

However, the IBA told the UFBU that it was not possible to consider such a large hike as the hike in wages given to the central government employees was once in a decade, whereas for the bank employees, the wage hike was once in every five year..

The forthcoming meeting will be crucial in another aspect involving the second option of pension for those 2,60,000 bank employees that were deprived of the pension benefits when it was offered for the first time by the bank managements during nineties.

While MV Nair, chairman and managing director of state-owned Union Bank of India (UBI) who is heading the IBA panel during ongoing talks, the UFBU body is headed by its general secretary, CH Venkatachalam.

On the second pension option, the IBA has reportedly agreed it in principle for the 2,60,000 bank employees that were deprived of the pension benefits when it was offered by the government in 1995.

However, it comes with a rider that the employees will have to shell out a sum of 15% from their provident fund (PF), apart from the 50% of the usual share, to avail themselves of such facility.

The UFBU was likely to clear its stand on the issue during the ongoing two-day AIBEA conclave, which would be concluding on Sunday evening.

AIBOC demands early settlement of salary revision

The state unit of All India Bank Officers' Confederation (AIBOC) today threatened to organise a mass movement against the Indian Banking Association (IBA) if their six-point charter of demands are not fulfilled by February.

''The salary revision for bank officers' is due from November 2007. Despite the IBA constituted a negotiating commitee for the purpose, very little progress has taken place on the issue. It was needed for the IBA to offer a decent package to the industry immediately'' AIBOC general secretary G D Nadaf told newspersons here.

He further asserted, pension is a social security measure therefore it is an obligation on the part of the management to extend it to all the employees in place of contributory provident fund.

The progress in taking the decision on this demand by the IBA and the government is unsatisfactory.

''We also demand adequate manpower and regulated working hours for bank staffs,'' Mr Nadaf said.

-- (UNI) --

Union leaders should focus on Wage revision & and another option for existing employees rather than pension for retired employees

Leaders of bank employee who are mostly retired are more interested in pension for the retired employees rather than respectable wage revision for employee of the bank who are presently working under very demanding circumstances due to increase in competition & world wide economic meltdown. Unions should focus on Wage revision not only for retired bank employees.

All the employee of the bank are called upon to write /mail to us(Or IBA) for 40-50 % hike on salary of Banking Industry .

Please write mail to us at
wage.revision@gmail.com

Pension part of right to life: Bombay HC

MUMBAI: Pensioners now have a reason to smile. In a landmark judgment, the Bombay High Court has held that pension is a vital aspect of social security and that the right to receive it constitutes a right to life under the constitution. Moreover, it held that pension must be paid regularly in the first week of the month.

"Deprive a pensioner of the payment and you deprive him or her of the right to life. Delayed pensionary payments place a pensioner in a position of uncertainty and dependence which impinges on the quality of life under Article 21, and the right to dignified existence of the aged," said Justice D Y Chandrachud while directing the transport undertaking of Solapur Municipal Corporation to deposit the pensions of 13 retired employees on the first day of the succeeding month or latest by the seventh day.

The judge noted that pensioners can't be left to the mercy of the administration to receive what is a matter of right.

"Pensioners must lead their lives with a sense of self-respect and dignity," he held as he innovatively developed the rights of senior citizens, especially pensioners, in consonance with the guarantees expected under the constitution. The judgment was passed in a case where the Solapur civic body had challenged a direction of an industrial court which had labelled its action of delaying pension payments inordinately each month as an unfair labour practice and directed
it to credit the monthly pension by the first day of each following month.

The civic body explained that it was in financial difficulties and said it could pay by the 15th and not the first. The civic body argued that the Maharashtra Civil Services (Pension) Rules does not mandate payment by the first of each following month. It says payment has to be made "on or after the first day..."