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

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are nation builders and they are treating us like nothing