Sunday, June 16, 2013

Loss Due To Delayed Bipartite Settlement



Collected from Facebook (Trilok Lalwani )
According to the data given by IBA in round of discussion held on 22.04.2013 in Mumbai, the total establishment expenditure/wage bill of the public sector banks as on 31-03-2012 was Rs.56,292 crore for workmen and officers put together.

Bankers expect at least (yes, least) 18% increase in wages. It would come around Rs. 10133 crore appro per annum. As we know from the past records that wage revision always takes place after delay of 24/30 months. This time though Govt. has directed IBA to finalize wage revision latest by 31.03.2014. IBA is well known of its anti employee/anti officers’ proposition. We don’t know how long IBA would delay wage settlement. 

Even if we take Govt. directed deadline of March 2014 it would be delayed by 17 months. Bankers are deprived of increase portion for at least 17 months, and interest @10% p.a. of this deprived amount comes to Rs.1435 crore for 17 months. (considering 0 months to 17 months average it would work out to Rs.718 crore at least. Least period. There are certainly more chances for settlement to get delayed for longer period). Banks use to make provision for wage revision and put aside this amount which is rightfully owned by the employees/officers. However banks invest these funds to make more profit at the cost of employees only. 

More over it appears that IBA wants settlement to be finalized as usual after 4/5 days strike by the employees/officers. Even if we take 4 days salary cut it works out to Rs.438 crore (considering 70% of Bank staff to join strike). 

So considering the above effects, IBA (Banks) is to grab minimum of Rs.1156 crore this time also, the funds which should go to its rightful owners.

We look forward from our learned negotiating team of UFBU to consider all these effects also in discussion with IBA .

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