MY ASSESSMENT ON THE OUTCOME OF THE IMPENDING
10TH BIPARTITE SETTLEMENT----By V Subramanian
Now, more than 7 months have elapsed since the expiry of the previous wage settlement on 31-10-2012. There is a tardy progress in the talks held so far and both the sides are yet to touch the main issues –
- Base Date for merger of Dearness Allowance with the existing Basic Pay
- Additional Load to be considered, after merging the present Basic with a portion of the D.A.
- Construction of Revised Pay Scales
We will discuss about all these, one by one.
Base Date for merger of Dearness Allowance with the existing Basic Pay
If the past is any indication, the Base Date will be 30-09-2011, since 30-09-2006 was taken as the basis for the last settlement that became effective from 01-11-2007. During the course of the talks held today (07-06-2013), the IBA has proposed to fix this date as 31-12-2009 (actually, no specific date was mentioned by IBA, but they have offered to take the year 2009 as the basis). To this, UFBU did not agree.
Subsequently, IBA may agree to advance this cut off date to 30-09-2010 or even 31-03-2011. On these dates, the D.A. was at 46.20% and 52.80% respectively. Therefore, after merger of the D.A. at this level, the revised Basic Pay will be 1.462 times or 1.528 times the present scale. Remember, this is without any additional load.
Additional Load to be considered
Going by the expectations and the present mood of the ordinary members, we can very well say, anything below 25% will not be acceptable and hence may be rejected outright by a majority of them. If the Trade Union leaders settle for anything less, they face the prospect of being overthrown lock, stock and barrel, by their own fraternity. Hope, they are aware of this danger.
Already there is a wide disparity between central government employees and us (bankers), after the implementation of 6th Pay Commission recommendations. From 01-01-2016, the 7th Pay Commission recommendations may be a reality, to the extent they are accepted by the Union government. In all likelihood, whether bankers’ wages are revised or not, before the next Parliamentary elections in May, 2014, the 7th Pay Commission may be constituted. In a way, that will fuel bankers’ movement further and make their stand firmer and stronger.
Against this backdrop, if the bank unions have any sense, they must not settle for anything less than 25% as the additional load, even if it means a climb down from their original demand for a hike of 40%.
Construction of Revised Pay Scales
Now, factoring in these points, the revised basic pay may be 125% of 1.4620 or 1.528, as discussed above. Thus, the revised basic pay will translate to 1.8275 or 1.91% of the present basic pay. This is the worst possible scenario.
Suppose the cut off date for merger of D.A. is taken as 30-09-2011 as was done last time, the revised basic pay before additional load will be 1.6015 times the present basic. Then adding another 25%, the revised basic will be 2.001875 times the present basic pay. At this level, the settlement appears to be somewhat good.
Suppose the cut off date for merger of D.A. is taken as 31-03-2012 and the additional increase foreseen is 30%, then the revised basic pay after merger of D.A. will be 1.6420 times the present pay and after the additional load of 30%, the revised basic pay will be 2.1346 times the existing basic pay. This is a good settlement.
Suppose the cut off date for merger of D.A. is taken as 30-09-2012. As the D.A. was 76.50% on 30-09-2012, the revised basic pay will be 1.7650 without any additional load. With the additional load of 25%, the revised basic pay will be 2.20625 times the existing basic pay. If this can be secured, it will be considered as a very decent wage hike. But this possibility is very unlikely, inasmuch as the lackadaisical attitude of the unions and the weakness of the leaders in effective bargaining.
My Suggestions to the Members
I had presented 36 different scenarios in one of my articles on the 10th Bipartite Settlement. I request the members to go through them carefully.
Then, please tell me what your revised basic pay is to be –
Is it 2.00 times or 2.25 times or 2.50 times or 2.75 times the present basic? Or even more?
I am very eager to know the response of our members.
Date: 07-06-2013 V Subramanian -------------------------------------------------------------------------------------------------------------------------------
Note: I am giving maximum thrust to increase in Basic Pay, for the reasons already explained
by in my Approach Paper published last year in Allbankingsolutions.com.
a very well thought out presentation sir . thanks for taking the time to give us some hope for a decent hike in wages . . me being a new banker jus two years old and going by the history of bank settlements as such doubt if we would even get the percentages suggested by you . . but if i may i think i understand the mindset of the new generation of bankers like me that have entered this wonderful sector . and if there is no good improvement in the settlement this time around and with majority of the sector in the verge of retirement i think the sector will find very few people who will retain themselves to it while newer youngsters will opt for better paying jobs elsewhere.
ReplyDeleteSir thanks for sharing the post.... I hv sm doubt, I hope u will clarify it...as u hv mentioned that new basic will be 2.001875 times the current basic, I want to know is this forecast made on gross salary or net? Coz if it's on gross den in that case the wage increase/revision will not be more than 3.5k-4k on gross, as in.....currently my gross sal(scale 2) is 38k and after new basic(DA merged & 25% load=Rs.38836/-) + hra(2900/-(7.5% of new basic)) +cca , so it will become 42k....so the increase is only Rs.4000/-....and I believe the increase in net sal will not be more than 2.5k-3k if gross is only 4k.....so please clear this doubt of mine....may be I m missing something....thanks..
ReplyDeleteSir,
DeleteCan you please answer the above question
It (suggested settlement structure )is only basis as your question also say that new basic will be ------ Pl note that it is just suggestion of a reader/viewer, it is not to be taken as prediction about settlement
DeleteSince all the allowances including D.A. are calculated on the new basic pay, you will get a good hike in gross emoluments, if our friends do not let us down.
ReplyDeleteif the cut off date for DA merger as mentioned will be 31.03.11 or 30.09.11 (52.80%), den what will be the remaining %age of DA dat will be combined with the revised basic?
ReplyDeleteWhy settlement getting late
ReplyDeleteWhy settlement getting late, from 7th june till date there is no talks held, why this is? Whether it is the fault of our unions or iba is willingly delaying the settlment process. Why our unions are not putting pressures on iba.why our unions not taking any action. Whether union is looking members welfare or bending infront of iba whith there weaknesses. Plz give me ur suggations or ur opinions regarding
ReplyDeleteDear frnz, never expect a big increase in salary , sadly the leaders are just wagging the tails before the management and wouldn't present the case of hardworking bank people. (for there own sake, of course!)this would come out cheap for all of us..,sure. Many folks, recently joined in banking are starting to leave as there is high pressure and low wages coupled with harassment from management.. how sad..
ReplyDeleteI would like to bring to the notice of negotiating team considering different scales in Clerk such as upto 7 years of service Junior Clerks,8 - 14 head Clerks,15 - 24 years superiindent ,After 25 Years as Junior Officers even they remain as clerks as considerable amount of Supervisory duties are involved passing independently. As the work involves higher risk it should be amply compensated. In my case I joined as clerk and remained in the same position for 35 long years. Alternatively minimum 2 time bound Promotion be given as in Government Service
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteMr Nagendra , the bipartite people will never do any good to the clerk community. As we have already seen , all the three bipartite settlements we have witnessed extended more benefits to the officers and clerks were ignored. Now being a clerk is an insult. While 35 liters of conveyance is extended , nothing is given to clerk. Negotiations are on to settle with 10-15 liters and workmen representatives are ready to submit themselves for any kind of paltry sums. In comparative pay and allowances clerical community faces severe insults. All the campaign about bank employees getting lower pay is taken advantage by officer community and UFBU will become a failure for clerks. Again stagnation is not going to be removed and nothing for seniors.To ask for several grades require imagination, vision and initiatives but our negotiation people for the workmen does not possess such things.
ReplyDeleteSir,
ReplyDeleteI'm a banker and am associated with the banking industry since last 4.5years. Looking at all the previous settlements, the prospects presently are also not very bright. Reason being very clear, poor negotiating skills of the unions, economy presently going downhill. In case the unions take up the matter with the government post elections, hen we should totally forget any attractive increase. So, in all fairness, his is he time to strike a deal, since the iron is hot.incase a fair deal is not met this time, I believe the unions are going to buy it...so really wish they do not fool their comrades this time...