Progress On Xth Bipartite Settlement Is Disheartening

After all nothing fruitful took place on 7th June 2013, the date of dialogue of union leaders with IBA on Bipartite settlement. Date after Date, committee after committee till election is declared. Almost One Year ( Talk Should start in July 2012 and now it is June 13 )

Long ago It was predicted that IBA and UFBU will intentionally delay the settlement so that quantum of arrears will look good even if hike is low. Management will save interest on arrears for two to three years and union leaders will get bigger amount as donation for union so that leaders enjoy lavishly, give 10 to 20 lacs to leaders as farewell gift and on. Union leaders are perfect dramewaz, they know how to make promises like politicians and keep their members happy just as politicians keep their voters happy by false promises.

Members will become happy just as voters when leaders will say that subscription for newspapers is doubled from 130 to Rs.260 or medical allowances has been increased from Rs. 5100 to Rs.6100 and so on. Bank staff will congratulate their leaders even if they get Rs.1000 in arrears and need to pay Rs.2000 to union leaders.

IBA's Negotiating Committee headed by Shri. T.M. Bhasin met the United Forum of Bank Unions today at IBA office in Mumbai.

In today's meeting, we demanded that there should be a time bound programme to complete the negotiations without much delay to arrive at the wage revision settlement at the earliest. IBA also agreed with our views and informed that the same can be worked out by mutual discussions. Today we also demanded that the wage revision should be effective from 1st November 2012 and that the new pay scale should be constructed by merging the DA at 4876 points i.e. the DA applicable to July- September 2012 quarter. We also insisted that the IBA should make their offer on the percentage of wage load acceptable to them. For this, the IBA informed us that they would consult the higher authorities in the Government and inform us in the next round of discussions. The IBA suggested that the pay scales could be constructed by merging the DA applicable upto 2009. We did not agree to this proposal. This issue will be discussed further.

In today's meeting the IBA also explained their issues like introduction of Cost to Company, Performance related wage, restricting the wage revision, increased mobility to award staff, rationalisation of Special Pay etc. While expressing our reservations and viewpoints, we suggested that these issues can be reverted during subsequent discussions.

From the UFBU we also submitted that in the proposed wage revision, the hike in wage load should be exclusive of the cost on pension and other superannuation benefits and also the cost of hospitalisation expenses reimbursement. The IBA informed that this would be kept in mind by them.

The IBA informed that they will shortly inform us the date for the next round of negotiations. Further developments will be informed in due course

UFBU  MISERABLY  FAILS IN THE FIRST ROUND ITSELF  - Part I

by

Rajesh Goyal  

I have restrained myself from writing on the topic of Xth Wage Revision as I was expecting that union leaders may be working out their strategy and will be able to put IBA in dock by confronting with some hard facts and putting pressure so that the wage revision talks are concluded in a time bound manner i.e. maximum within one year from the date these have become due.    I have been receiving number of letters wherein our readers have been asking the reasons for my silence on this aspect.   Some readers have been asking me to analysis the progress in wage revision talks so that they can better understand different aspects as union leaders are in the habit of double talks and issuing circulars which are in guarded language.    Thus, I finally decided to continue with my assessment of the progress on wage revisions.   I assure our readers that I will try my best to keep them aware of my analysis of the developments.   I have come to know that even a campaign has been launched by some  union leaders against AllBankingSolutions.com for showing them in poor light based.   Without wasting any further time on what union leaders think of us, let me analysis the developments in last few weeks.

First of all, I will remind that the wage revision has already been due now for almost 7 months and there has been no progress in this front.  

Vide Circular No 7 dated 22/04/2013, UFBU informed the cadre that a meeting with IBA has taken place wherein IBA informed that the total establishment expenditure / wage bill of the public sector banks as on 31/03/2012 is Rs 56,292 crores which will be the basis of negotiations.   Thus, assuming that UFBU is able to extract 20% wage hike, the total benefit to workmen and officers will be Rs 11258 crores or about Rs 1,000 crores per month.   Considering that the rate of interest on FDs for staff is around 9%, the bankers are losing Rs 90 crores per month in the shape of interest alone.   Thus,  for amount due from 1st November, 2013, bankers have already lost over Rs600 crore merely in the form of lost interest on their due share.    I am sure, union leaders will cry foul and will take a similar stand (zero loss theory) as was taken by Mr Kapil Sabil in 2G case when CAG has pointed out a loss of over Rs 1.76 lakh crores.   But it is a fact and bankers understand the same.    Now even Kapil Sibal is afraid of talking about zero loss theory.   Similarly, soon UFBU union leaderstoo will realise their mistakes and will bow to cadre pressure.   

In the above circumstances, I feel UFBU needs to put pressure on IBA that delay  beyond 10 months will make the bankers entitled for interest at the FD rates for 3 years or so.    This will force IBA to revise its strategy of delaying tactics.  

Now coming to second part of the above circular, wherein UFBU has informed that IBA submitted the following Management demands :

Officers: (a) Introduction of Cost to Company. (b) Introduction of Performance linked Variable Pay. (c) Restrictions on applicability for wage revision. Workmen: (i) Introduction of Cost to Company. (ii) Introduction of Performance linked Variable Pay. (iii) Deployment of Staff by invoking Para 536 of Sastri Award and superseding the provisions of 8th BPS. (iv) Rationalisation of special pay posts. (v) Departmental action to continue after retirement. (vi) Premature retirement of workmen employees in public interest after 55 years of age or 30 years of service. (vii) 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.

Readers need to note down few things.  First of all, why IBA has been allowed to raise demands at this late stage.   If Unions were required to submit their Charter of Demands by 31st October, 2012, then why IBA has not submitted their so called demands by that date itself.   UFBU leaders have failed to resist.  They need to say that they will not entertain any demands from IBA.   It is nothing but delaying tactics and derailing the wage revision talks.  I was most surprised to read that IBA would make their presentations in next meeting that was to be held in middle of May 2013.   This clearly shows that IBA is hell bent upon delaying the talks and ensure that bankers lose almost Rs 90 crore per month in the shape of interest itself.   Why IBA had not come prepared with presentation in the above meeting itself.   Did UFBU leaders questioned IBA?   UFBU instead of raising the real issue of delay and honorable wage revision is still talking mainly of compassionate appointments, grid based clearing system, which are of little consequence for 99% of the bankers.   These issues needs to be delinked from Wage Revision,  UFBU should concentrate on higher salary for young officers and good retirement benefits for retiring and retired bankers.

Now coming to demands of IBA in detail.   I am of the view that at this stage IBA should not be allowed to raise their new demands.  The introduction of cost to company concept is being mooted to make fool of the union leaders in particular and others in general.    If this is accepted, the maximum cheating will be to officer cadre as their perks (which only some of them may be availing) will inflate their salary on papers.   Only today (29th May, 2013)  in an advertisement for recruitment in Navy, they have advertised that CTC for a Sub-Lieutenant would be approximately Rs 65,000/- per month (excluding the free medical facilities, LTC, canteen facilities, entitled rations, government accommodation, loans at subsidized rates.  I would like to add here that Sub-Lieutenant is the lowest ranked in Navy and his Basic Pay is Rs15,600/- with grade pay of Rs5400/-.

The second demand of Performance Linked Pay is also fraught with lot of risks.   My experience of over 3 decades in bank does not give me confidence that if such pay is agreed upon, it will lead to payment to honest and hard working bankers.  Most of the time, the plum foreign postings or less riskier jobs are given to people who are flatterers of top bosses.  I am sure, unlike in private sector, the performance linked pay will mostly go to people who keep on buttering or are ready to do flout norms in sanction of loan etc.  Thus, officers need to oppose this tooth and nail till a fool proof systems are put in place ensuring that it really goes to really performing bankers.   I think bankers must be aware that in recently concluded IPL the Fair Play Award has been given to Chennai Superking Team !  Even a layman can tell that Chennai team did not deserve as Team Owner himself has been found betting and is in police custody now.  Such blatant things are common in banking too.

Third demand is totally absurd and will lead to a lid on the wage revision for officers.

The demands relating to workmen staff are still more retrograding and are like a gag order so that even workmen staff and their union leaders do not protest for the blatant flouting of rules. 

UFBU leaders needs to do their home work well.  Have they asked IBA to give details of the components of Cost to Company and what is the total salary at present (cost to company) for a newly recruited clerk and a new PO.  What is the same at the end of each scale alongwith cost of various perks?   If they have not done this exercise, I am sorry to say they will miserably fail in getting an honourable settlement.  In case they have done this exercise, they need to publish the same immediately so that bankers know what bank thinks the present Cost to Company of bankers at each stage of every scale.   Union leaders needs to be fully transparent in this regard and let such details are discussed thread bare in the public.

I will be soon writing more about the next circular of UFBU which has already been issued.   In this age of internet, workmen and officers can not be taken for granted as was done by UFBU in the past.  Information flows very fast.   I request all our readers to send us any new development in wage revision which comes to their notice alongwith the source.   I hope UFBU leaders will learn their lessons well now or they will continue to face wrath of the bankers.

http://www.allbankingsolutions.com/Press-Release-Views/UFBU-no-progress-May-2013.htm

UFBU  MISERABLY  FAILS IN THE FIRST ROUND ITSELF  - Part II

This is in continuation of our article under the same name (Part I), which was uploaded last week.   In that article I have analyzed the implications of the announcements made by UFBU vide their circular dated 22th April, 2013.   That article received wide applaud from bankers across the country.    As promised in the same article, I am now writingPart II of the same.

In their circular dated 22/04/2013, UFBU had informed the members that next round of talks will be held in mid May, 2013.   However, that never took place.   IBA has very coolly and conveniently ignored the promise to hold talks in mid May, 2013, and has shifted the same to 7th June, 2013 i.e. delayed by at least 3 weeks (22 days).  As per my previous article calculations, the delay of 22 days means loss of about Rs 65 crores to bankers merely in the form of interest alone.   Thus, UFBU has failed to put sufficient pressure on IBA to ensure that as promised by IBA, the meeting is held by mid  May.  Bankers will notice that now the meeting will be held after 6 weeks from the last meeting i.e. 22nd April, 2013.

As a follow up UFBU circular, AIBOC too issued its circular dated 25/04/2013 under the heading  'ROAD BLOCKS IN THE NEGOTIATIONS AIBOC IS FULLY PREPARED TO OVERCOME', wherein it reiterated the developments already given in UFBU circular (which I have already discussed in Part I of the article).   However, certain new revelations came to light. AIBOC in its circular says "the attitude of IBA appears to be a confronting one rather creating a favorable climate for a reasonable and fair salary revision. We have showed restrain on our part but have at the same time conveyed to the Negotiating Team that the Management Issues needs to be fine tuned to see that the time tested bipartite negotiations are not jeopardized in the process".

Thus, as confirmed by AIBOC,  IBA's attitude is that of confrontation rather than amicable negotiations.  This is on the expected lines as has been clear in the case of 2nd pension option cases where IBA has tried to put maximum hurdles .  Sadly UFBU, including AIBOC, had been mook spectators.  It was merely because of the efforts of some of the senior bankers in the Courts  that IBA had no alternative but offer 2nd Pension option to bankers who were initially being denied the same.    Now AIBOC boosts that it is FULLY PREPARED TO OVERCOME ROAD BLOCKS, yet the role of AIBOC since the last BPS, specially for pensioners, does not give me that confidence.   They are in the habit of meekly caving in to IBA tactics (as has happened recently in the attempt to oust Mr Srinivasan from BCCI !).   I wish them good luck and we will closely watch their attitude towards the banker's interests. 

 In view of the forthcoming meeting with IBA, an internal meeting of UFBU members was held on 23rd May, 2013, and a circular has been issued by UFBU on next day i.e. 24th May, 2013, to apprise the members about the developments at the internal meeting.   The circular once again beats around the bushes and at the end says  " the UFBU would pursue the demands on wage revision in the next round of talks with IBA scheduled on 07.06.2013".  Toannounce this at the end of one page is nothing short of a joke to the comrades.   Can any one say that at the next round of talks with IBA they will not purse the demands on wage revision ?  Is it not Disgusting?

Towards the end, the circular talks about the meeting with Chairman of  IBA (Mr K R Kamath) etc.  The list of demands placed includes mostly the old pending demands like compassionate appointments, KYC norms, Clearing system etc. alongwith request for early settlement of the wage revision and 5 day week.   It appears from the circularas if residual demands are more important rather than wage revision.   I have been time and again insisting that these demands needs to be delinked from wage revision, or else bankers will again be cheated.     The circular at the end boosts of "Chairman gave a patient hearing to the issues raised by us".  The UFBU leaders are happy that IBA Chairman gave a patient hearing.  Is patient hearing is sufficient when all the banker community is becoming impatient about the delay in starting of the 10lth BPS talks in the right earnest? 

I have been advising since beginning that UFBU must insist for an outer limit for discussions and finalization of 10th BPS.    Originally, I had thought of about 10 months, but now 7 months have already passed and talks have not made an inch of headway, rather after raising of demands by IBA, it has gone backward.   Thus, now UFBU must insist that talks be concluded maximum by 31st October, 2013 i.e. within 1 year from the date it had become due.  Talks needs to be held within a gap of one week to 10 days.   The maximum gap between two talks should not be more than two weeks in case of emergent cases like meeting with RBI or FM of the concerned members from IBA side. 

UFBU needs to appreciate the concerns of their members about the delay in wage revision and give concrete proposals to show some progress in this front or else members will be more disillusioned. 

Waiting alongwith my fellow bankers  for some real progress in talks as on 7th June, 2013

http://www.allbankingsolutions.com/Press-Release-Views/UFBU-no-progress-May-2013-Part-2.htm