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Monday, April 22, 2013

Update On Bank Staff Wage Revision 22nd april

A round of discussion was held today (22-04-2013) in Mumbai between IBA and UFBU on our charter of demands for revision of wages and service conditions.The IBA was represented by the negotiating team headed by Mr. T M Bhasin (CMD Indian Bank and Senior Vice President, IBA). UFBU was represented by the constituent unions. NOBW could not be present due to their pre-fixed agitational programme in Delhi.

During this meeting, IBA provided the detailed data relating to establishment expenses of the banks as on March 31st 2012, which will be taken as the basis for calculations in the ensuing wage revision exercise. According to the data, the total establishment expenditure/wage bill of the public sector banks as on 31-03-2012 comes to Rs. 56,292 crores for workmen and officers put together.

The IBA also submitted the following Management issues for discussions by UFBU:

1. Introduction of Cost to Company.
2. Introduction of Performance linked Variable Pay.
3. Restrictions on applicability for wage revision.

1. Introduction of Cost to Company.
2. Introduction of Performance linked Variable Pay.
3. Deployment of Staff by invoking Para 536 of Sastri Award and superseding the provisions of 8th BPS.
4. Rationalisation of special pay posts.
5. Departmental action to continue after retirement.
6. Premature retirement of workmen employees in public interest after 55 years of age or 30 years of service.
7. Simultaneous disciplinary action under departmental enquiry as well as judicial proceedings.

IBA further stated that they would make their presentations on these issues in the next meeting. They also informed that the next round of discussions would be held by the middle of May 2013.

Comrades, while we have come to the IBA for wage revision, it is clear that they are trying to foist anti-employee,anti-officer propositions. It appears that wage revision will be a challenging task before us. Hence our unity and vigilance are very important when we proceed with our charter of demands.

From the UFBU we insisted on the IBA that the long pending issue of compassionate ground appointment scheme should be resolved on a priority basis. We also brought to their notice the problems faced by employees and officers on account of introduction of Grid-based clearing system by the RBI and urged for solution so that the issue does not become a dispute.


  1. It is heartening to note that, some sort of discussions ultimately took place but, the outcome was nothing to cheer about. It seems that, it will be a long drawn exercise.

  2. Why C2C in a PSU? If C2C is to be implemented, pls consider below points as well:
    Implement yearly wage revision as is the case with the private corporate world & give hikes ranging from 10-40% each year.
    Moreover, perks provided are not salary, it's just a facility. Do anyone will consider Rs. 450 for newspaper or Rs. 150 for cleansing material as a salary?

  3. Private companies or Multinational companies announce bonus or incentives every year , most of them do not allow late sitting, they do not like flattery and bribery etc .They try to keep their staff happy and devoted to work. They pay for Leave and LTC in form of salary. Will Indian bankers and Indian government like to follow this culture?
    Work in non banking companies may be assessable and quantifiable in rupees. In banks it is not possible to quantify the work load of any staff. A branch manager may be posted at a rural remote area and in a urban or metro area cannot give same output.
    A branch head with adequate staff in branch can give better result than a branch head with shortage of staff.
    An officer can do better in an area where customers are cordial and cooperative whereas an officer cannot perform well where area people are very much militant and the area is naxal inflicted.
    A location of branch is more important, one location may have better potential for business than many others.
    Quality of staff is more important. If skilled and matured staffs are supporting a branch head, he may perform better whereas if a staff is militant or unskilled or unwilled or untrained, output may be below standard
    A branch where court cases, frauds cases, litigation, bad borrowers are more, growth in business may not be satisfactory.
    If Regional head is corrupt, he will never give incentive to those who do not flatter and who do not earn bribe to share with boss. He has power to transfer the services of a staff to any good or bad place as per his whims. He may transfer a person to a critical place before he or she is selected for incentive.
    None of work in bank is quantifiable and hence any incentive based on performance in banks will further damage work culture and further add fuel to fire . Copying of Cost to Company culture to retain bank staff and to attract talented youth in banking fraternity is not at all practically feasible and viable. It will create more IR problems and more disruption in banking activities. Private banks have already burnt their fingers in the cases of recent sting operation carried out by Cobra post. Axis Bank HDFC and ICICI bank exposed in money laundering case only due to incentive scheme in all insurance related businesses.
    As such plan of imposing CTC and incentive schemes in bank s Utopian and it is enough to say that government is trying to divide banking fraternity , weaken the militant power of unions and finally delay the wage revision as much as possible . Their conspiracy is clear : not to allow banks to accede to wage revision more than 10 percent .so that net take pay will not be more than 2 to 3 percent more than their present net take home pay.

    1. Well said Mr.Jain. See the Central Govt. employees. They are getting more & more salary than us.Even the Govt. knows well about this. But still they are giving more salaries and facilities to them instead of us. We,the bankers, are totally devoid of all the facilities which they are enjoying now. How much sincerely we work during office hours,still mistakes come up and sometimes we have to pay for that. Govt. is too cunning. They are not planning to increase the salary more than 2-3%,as you said. I simply want to ask 1 question... """when 1 day or 2 dez strike does not work,then why don't our unions go for indefinite strike??""" When the Govt. is not thinking about us,then why should we think about the govt.?

  4. better we ask to merge all banks with central govt employees and have their working conditions to save time in discussions and avoid strikes loss of pay, worst working conditions with accountability, responsibility and low salaries.

    I request all our leaders to demand only on par with central govt employees/officials salaries and working conditions.

  5. UFBU has once again shown its weakness in front of IBA. In fact bankers will never get its due unless pay commision is not formed.UFBU leaders are not well aware of following facts in respect of Govt Employees.
    1Full pension after 20 years service.
    2Lesser mobility on transfer compared to bank's employee
    3Full family pension till the age of superannuation in case of death of employee.
    4.5 days working in aweek. Fixed duty hours. No late sitting. All leaves are sanctioned as right. Even before retirement all sick leaves are availed.
    5 Consideration of all humanitarian request of employee
    6Pay commission wef 01.01.2006 Bipartite wef 01.11.2007 after 20 months still less. Next bipartite wef 01.11.12 still appears will be less that govt employee which means bankers will be loosers for 6 years 10 months despite the fact settlement after 5 years.
    7.DA increase is more steeper in case of govt than banks. Every year 15 to 16 % whereas in case of banker it is approx. 8 to 10%.
    8. No stagnation scale range is very hogh from 37000 to 67000. Whereas in banks after scale 3 there is no running scale and after 3-4 year stagnation comes.
    9. 3 assured promotion in career .It means from 15600 will jump to 37000 and increment till 67000. Whereas in banks only nominal increase on promotion

  6. W hen union had negotiation powers, then bipartite settlement was OK and bank employees were getting salary increase and various perks after every three years and pay commission reports were after ten years hence more than three increases in one pay commission reports period., now since unions have lost most of the bargaining power it is now time that bank employees are also part of pay commission reports of central government employees and it will make bank employees as government employees which is presently not even our GM is not a gazetted officer. So better unions now demand pay revision Alongwith usual central government pay commission reports thus they will get various benefits available to central government employees both Pre and post retiral. LAJPAT rai thakral ., Wilmington,delware.,USA.