Why Delay In Wage Settlement

Preet Sain writes on Facebook 
WHY OUR WAGE SETTLEMENT DELAY EVERY TIME? IT IS A GAME
OF FEW HUNDRED CRORES, MUST READ FOR BANKERS
1.It is painful that a bank employees is being paid less than a clerk of
govt. and a clerk of bank is being paid less than a group D (peon)
employee of central govt. What to talk of a sub-staff (4th class) in
banks.
2. It is pertinent to note that a committee for “standardization of Pay
Scales, allowances and perquisites of officers in the nationalized
banks” known as PILLAI COMMITTEE was constituted which fixed the
initial salary of bank officer Rs.700/= per mensem equivalent to initial
salary of group A Officers of Central Govt. The recommendations of
this Committee were implemented w.e.f. 01.07.1979. Now over a
period of three decades the salary of a bank officer is reduced to
almost half of the salary paid to Group A officers. The Pillai
Committee was duly constituted by the govt. and its
recommendations accepted. The govt. is bound to fix initial salary of
a bank officer equal to the initial salary of Group A officer in Central
Govt.
BENEFITS GIVEN TO CENTRAL GOVT. EMPLOYEES but not available
to PUBLIC SECTOR BANK EMPLOYEES
Average Bank employee has not been given increase even equal to
Education and Transport Allowance given by Central Govt. to its
employees, What to talk about Grade Pay, HRA Basic Pay etc
3. """"Unions are not specifically mandated by existing employees to
negotiate salary and enter into a Bipartite settlement. Unions
themselves approach govt/IBA and enter into bipartite. """""""
4. It is said that bank employees can not be given benefit of VIth pay
Commission recommendations as they get wage settlement every five
year whereas paycommission recommendations are implemented
once in 10 years. This notion is misconceived. Central Govt.
employees get manifold increase in 10 years what a bank employee
get in two bi partite settlements.
5. The nominal increase shown in medical aid is also annual & not
monthly and moreover is reimbursement against medical expenses.
6. Bank employees have been given about average revision of basic
pay to 1.41 times that too after merging about 32% of DA. Against
this Basic Pay of Govt. employees have been revised to approx.
279%. which is almost double of what bank employee will get.
7. Unions never demanded parity with VI Pay Commission. To
maintain their supremacy & middlemen-ship & for following reasons
besides others, they do not want bank employees to be covered by
Central Pay Commission whereas a bank employee wants to be
covered by pay commission:
i) In the name of wage revision they push lacs of bank employees to
unwarranted politically motivated strikes/bandhs.
ii) On conclusion of a Bipartite settlement the unions and
Associations collect roughly approx. Rs.2000/= to Rs.3000/= per
employee as levy & given a strength of about 10 lacs of employees
the amount is about Rs.200 - Rs.300 crores. That’s why they enter
into bi partite settlement twice over a period of 10 years and achieve
much less than what Pay Commission offers to Central Govt.
employees. Thus they are milking the bipartite settlement for Rs.400/
= -Rs.600.0 crores over a period of 10 years. This is in addition to
what unions collect by way of monthly subscription/membership fee
which to a rough estimate comes to approx. Rs.360 crores (60/=
p.m. x 10 lac x 12 months x 5 years) over a term of bipartite i.e. 5
years. It is but natural an endeavor to oppose the pay commission.
Let the corruption increase, the govt. is happy virtually by giving no
increase. Shame on the govt. of a welfare state and the biggest
democracy of the globe. When compared with the pay package of
international banks, the Indian banks pay least to their employees.
Prima facie this 9th Bipartite Settlement suffers from following legal
infirmities, hence a nullity in the eyes of Law :
i) Unions/Associations are not mandated by their members. Hence a
settlement entered into by them is not binding on members.
ii) Officers Associations are not recognized under labour law hence
not legally competent to enter into a bipartite settlement.
iii) Retired Employee are not the members of Unions. Unions do not
represent retired employees.
iv) Many retired leaders were in negotiating team.
v) As per Ministry of Finance (MOF) IBA is a voluntary organization,
hence it Cannot enter into a bipartite settlement on behalf of the
govt. and bind the govt.
vi). Pillai Committee Report is still in force as not withdrawn/
cancelled/repealed by the govt. Hence a Bipartite Settlement for
officers cannot attain overriding effect on Pillai Committee.
vi) The settlement is in gross violation of Article 14 & Article 16 of
Constitution of India. Article 14 of the Constitution enjoins the State
not to deny any person equality before the law or the equal protection
of the laws and Article 16 declares that there shall be equality of
opportunity for all citizens in matters under the State. Following a
different set of rules in paying salary/pension/other benefits to bank
employees is in gross violation of the spirit of the constitutional
provisions.
viii) It has been carried out in a non transparent manner. Information
sought on Bipartite negotiations/developments/others denied to be
supplied by MOF.
9. Banks are finding it very difficult to recruit new staff While
advertising new posts/vacancies bank do not publicize salary/
pension/Rate of Intt. on PF/other facilities. Because of very low
salary and hard working conditions, many candidates who apply for a
bank job on coming to know about salary structure either do not
appear in the test or not join after being selected or leave after
joining. Thus in every recruitment process banks are collecting lacs of
rupees from unemployed youth.
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