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.