'When
banks can recast debt, write off loans, why not give a decent pay hike?'—Hindu Business
Line
MUMBAI,
FEB 8, 2014:
If public sector banks (PSBs) were able to provide Rs. 43,000
crore towards bad loans, paid Rs. 6,800 crore dividend to the
Government and yet made profit of over Rs. 50,000 crore loans in the
year-ended March 2013, can they not reward their employees with a decent pay
hike?
Bank employee unions under the aegis of the United Forum of Bank
of Unions (UFBU) want an answer from the managements of these Government-owned
banks. To press their demand for a pay hike, banks’ employees will strike work
for two days beginning February 10.
About 10 lakh bank officers and employees, predominantly from
public sector banks and old generation private sector banks, will participate
in the strike, which could severely cripple banking services across the
country.
Though the UFBU and PSB managements conducted a few rounds of
talks in the last few months for an industry-wide wage settlement, not much
headway could be made.
According to Vishwas Utagi, General Secretary, Maharashtra State
Bank Employees’ Federation, though the business of PSBs has gone up by about
2.5 times in the last five years without a commensurate increase in staff
strength, bank managements are not recognising the fact that the employees’
work load and working hours have increased substantially.
Utagi said while the last industry-wide wage settlement in 2010
resulted in a 17.50 per cent increase in salaries, which at current prices
would amount to a total outgo of Rs. 10,000 crore for all banks put
together, the bank managements were willing to offer only a 10 per cent hike,
amounting to about Rs.3,200 crore.
“When banks are willing
to accommodate large and mid-sized borrowers by doling out debt restructuring
packages, writing off loans, entering into one-time settlements, then, setting
aside Rs.10,000 crore towards employee wages should not be a big deal. If
bank managements have the will then they can recover this amount by initiating
recovery proceedings against just two large defaulting borrowers,” said
Utagi.
Ravindra Shetty, Convenor, UFBU (Maharashtra), said employees
have helped grow PSBs business manifold. Hence, they should not be made to bear
the cross because their banks have written off loans aggregating Rs. 95,717
crore in the last six years, accommodated large corporates by giving them the
benefit of debt restructuring and one-time settlement of loans.
Though dealing with public money casts tremendous responsibility
and accountability on bank employees, they are paid much less than their
Government counterparts, Shetty said.
For example, at the entry level, a bank officer’s gross monthly
pay adds up to Rs. 30,700. In sharp contrast, his counterpart draws a
much higher salary at Rs. 56,400, he added.
Ramnath Kini, Deputy General Secretary, National Organisation of
Bank Workers, said while the Government has announced the 7th Pay Commission
for Central Government employees in the run-up to the general elections, the
employees of Government-owned banks were being meted out step-motherly
treatment.
Is govt. not demoralizing the bank employees? and can management expect honest efforts from employees for business growth?
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