1
ALL INDIA UNION BANK OFFICER STAFF ASSOCIATION
(Affiliated to AIBOA)
Phone: 9381036405 / 9791027140
Email: dsganeshanaiboa@gmail.com : dsganesanubi@gmail.com
Address: Don Flats, I Floor, No.19, SRP Colony 7th
Street, Peravallur,
Chennai 600082
Cir.No.GS:186 / 2013 - 14 18.06.2014
To All Officers
Dear comrades
WAGE REVISION TALKS – 11TH ROUND. 10% ON 10% IS THE REVISED OFFER. CONSENSUS DEMAND OF 25% ON PAYSLIP COMPONENTS PLACED.
We are reproducing AIBOA’s circular No.8:VI:2014 dated 14.06.2014 on the subject for information and circulation among other officers.
After a lapse of nearly three months (i.e. last meeting was held on 14 3 2014),
eleventh round of discussion on wage revision was held at Mumbai with IBA participated by the eleven unions.
2. Preceding the talks, UFBU Constituents met to draw the future course of action in the background of change of Government at the Centre after the 16th
Lok Sabha Elections. The meeting observed two minutes silence to pay respect to the departed soul of Com Shanti Patel, HMS Leader, Port and Dock Workers Federation, Former Mayor of Mumbai and past Rajya Sabha MP too.
3. While noting the developments on account of submission of P J Nayak Committee report, Government proposed moves of dilution of equity from the present level up to 58%, merger of PS Banks on account of huge bad loans and altogether aiming to attack the Public Sector character of the Banking Industry were debated. A reference about the participation of five
unions AIBOA, AIBEA, BEFI, INBEF and INBOC in a demonstration on 23/5/2014 against the RBI on P J Nayak Committee recommendations was also made. The meeting after due deliberation came to a unanimous conclusion to send a congratulatory communication to
Hon’ble Prime Minister , and also to lead a delegation to the Hon’ble Finance Minister to present our view points on Banking Industry and also the inordinate delay on wage revision of the work force.
It was further decided to pick up the thread of discussion from the stage where it was left on 14/3/2014 negotiations.
4. Exactly at noon, the negotiation team was led by Chairman, Negotiating Team, Sri TM Bhasin, Sri. R.K Dubey CMD Canara Bank, Sri Rajeev Rishi CMD Central Bank of India, Sri AIUBOSA CIR GS: 186 / 2013-14 dated 18.06.2014
2 Rakesh Sethi, CMD Allahabad Bank, Sri M V Tanksale, CEO, IBA Sri Unnikrishnan DY CEO, besides the executives of HR backup team of IBA.
5. The Chairman IBA Negotiating team presented the developments in the last ten rounds spreading over a period of 19 months in a brief way and concluded that the Net Profit has dwindled substantially in March 2014 and staff cost has gone up substantially during the last year. In view of the practical restrictions, on account of bad loans etc., it would not be possible to offer beyond 10% on pay slip component. On our insistence to know the
developments on the issues raised in the last round, it was supplemented further by IBA CEO Sri M V Tanksale, which are as follows.
[A] 5 Days working: The present Government thinking to revert to 6 days working in Government, forces not to pursue the issue further with the Government.
[B] Regulated Working Hours: Officers’ Unions are to submit their concrete view points to IBA.
[C] Pension related Issues: 100% DA Neutralization and improvement in Family Pension are finding favour from Government point of view, however expressed their reservation on updation of pension due to substantial cost involved.
[D] Compassionate ground Appointments: The favourable decision from the Government is awaited within a couple of months.
[E] Improvement on Hospitalisation Expenses: IBA reiterated that the scheme provided by them should be considered by the Union. A letter of reassurance from the service provider was also given to the Unions on the negotiation table.
6. Representatives of the IBA reiterated that the Unions should spell out their quantum demand in the background of non-conceding any of the proposal presented by IBA to Unions. It was Com K K Nair, Chairman UFBU who broke the news of the earlier offer of IBA of 11% elsewhere, in turn, it was readily agreed to offer 11% with a condition to close the negotiations forthwith.
After couple of minutes of consultations amongst the constituent Unions, it was expressed clearly that on Pay slip Component 25% increase was placed before IBA Negotiating Team.
The negotiating team, while expressing their un-acceptance with force, abruptly folded up the discussions.
The light at the end of the tunnel is certainly not visible.
S NAGARAJAN / GENERAL SECRETARY / AIBOA
With Greetings,
Yours Comradely,
(D.S. GANESAN)
General Secretary
More Insight Into Talks Held on 14th June 2014-- By National Union of Bank Employees-Presented in Allbankingsolutions.com by Sri Rajesh Goyal
We have received the following circular from Mr Sankaran Srinivasan, President of NUBE. The circular No is 05/2014 and is dated 14th June, 2014, and has been issued by Mr L. BALASUBRAMANIAN, General Secretary of NUBE. We are uploading the full circular as it appears to be more authentic and transparent then what we have heard a stereo-typed statement by UFBU. It gives more insight about what is the total amount of Establishment Expenses and What is the total amount of Pay Slip Component. (We have added the colours to focus on major issues)
Dear Comrades,
MEETING WITH IBA ON WAGE REVISION TALKS
Having won absolute majority in the Lok Sabha, the new NDA Government pronounced that its cabinet will prepare a list of issues that they will take up in the first 100 days in office, with a focus on efficiency, delivery systems and implementation. In consonance with this vision & mission of the new Government, Bank employees, whose wage revision is due from 1-11-2012, were anxiously expecting a decent wage hike once the negotiations resumes.
Bank employees and public welcomed the priorities set by the Finance Minster to arrest Non-Performing Assets (NPAs) menace which is depleting the healthy profits earned by the Banks which is estimated at over Rs.2 lakh crore. There were reports that the Finance Minister is weighing various options such as shifting the Bank NPAs to asset reconstruction companies on a wider scale, and sweeping changes in the Debt Recovery Tribunal's (DRT) legislation, making the dispensation of cases time-bound. And Bank employees were awaiting good days for Banks and employees ahead with the Government showing willingness for wage revision for which the new dispensation at the centre assured during the election campaign.
Yes, “good days” have indeed come for some. But “bad days” have befallen to the Bank employees. The meeting of 13th June 2014 turned to be yet another futile, symbolic meeting with the yawning gulf separating policy pronouncements from the ground reality. Thus the 10th Industry-wide Bipartite Wage Settlement negotiations in the Banking sector have dragged on for more than one-and-a-half years now without making much headway.
After a gap of 3 months with the last negotiations held on 14-3-2014 which was especially for non-monetary issues raised by the unions, another round of discussions took place with IBA on 13-6-2014 in Mumbai. As usual, all the eleven unions have participated in this round also, with the undersigned representing NUBE.
IBA informed, profits of the Banks have come down as on 31-3-2014 and therefore they can offer maximum of 11% (increase of meager 1% our emphasis!) on the cost ofPay Slip components of the wage bill which would amount to Rs.3,465 crores and which would be exclusive of other costs on retirement benefits, LFC, hospitalizationexpenses, etc Since negotiating unions rejected the offer of 11% increase, IBA wanted to know the expectation of the union. A representative of the umbrella of nine unions informed that their minimum expectation is 25% increase in the Pay Slip components cost.
It is pertinent to mention here that NUBE was the only union which while submitting its exhaustive charter of demands of 102 pages for tenth bipartite as early as 16-06-2012 itself, with justifications apriori demanded 45% over all increase on the establishment cost which works to 26.5% (Rs.8348 Crores ) in pay slip costs.
IBA expressed their total inability to accept the same as it is beyond the paying capacity of the Banks. This stubborn stand of IBA is preposterous and is unacceptable to NUBE in view of the following reasons:
- In all the previous settlements salary increase was given a load to total establishment expenses. In this wage negotiations we have been offered on fixed pay components. As against the total establishment expenses of Rs.56292 crores the pay slip component is only Rs.31503 crores
- While offer of 11% on establishment cost will work out to Rs.6192 crores, 11% of pay slips components expenses will amount to a measly figure of Rs.3465 crores only. Hence the offer of IBA for one million Bank employees is far below the amount offered during last bipartite settlement.
- The first round of negotiations started only on 22-02-2013. During this 15 month period Gross non-performing assets (NPAs) of 40 listed Banks shot up by 35.2% or Rs.63,386 crore for the nine months ending December 2013 to cross the Rs.2.4 lakh crore mark. This jump of 35.2% was higher than the 27% rise witnessed in the first six months of the current financial year according to a study done by NPA source.com, a portal which focuses on resolution of assets. Even if an infinitesimal of 1.83% of these NPA is recovered in tune with the policy plan of the present Finance Minster is expedited with all the seriousness, the demand of the union can be easily met without increase in the exchequer. If amount due from four largest willful defaulters which is around Rs.9384 crores, is recovered with all sincerity, it is enough to meet the demand of the unions without any burden and the so called capacity to pay peddled by the IBA will fall flat on four legs. The unions will be ever willing to support IBA/ government if it initiates appropriate steps.
- It is pertinent to note that the 11% of pay-slip is not in consonance with the prevailing wages of comparable concerns. This is contrary to the views expressed in the Sastri Tribunal. Hence demand of the Bank employees for ensuring parity with Government employees / comparable institutions in fair just and right.
On other issues
The only silver lining in the meeting was that IBA is favourably inclined to consider demand of extending 100% DA neutralization to all pensioners. IBA also seems to have shown positive response to improvement in Family Pension. However, unions still need to do lot of work as IBA has not committed anything and only shown positive response. Thus, a ray of hope continues for pre2002 retired Bank employees for 100% DA. As regards updation of pension, IBAhas outlined it involves substantial financial burden to the Banks .This means in all sectors, including central and state Govt., whenever there is an industry wise wage increase, pension will also be increased. In Banking sector it is not so. Hence a G.M retired 10 years back is drawing less pension than a clerk retiring now IBA once again reiterated that our demand for extending appointment on compassionate grounds in the Banks on the lines ofGovernment scheme is under the active and positive consideration of the Government and their decision is awaited. Needless to underscore here that proposal agreed between unions and IBA is pending with Govt. for considerable period of time, therefore brooks no further delay.
Regarding Improvement of Hospitalisation Expenses, IBA reiterated that the scheme provided by them should be considered by the Union. A letter of reassurance from the service provider was also given to the Unions on the negotiation table.
On the issue of five days week, IBA said that looking to the approach of the new government at the centre for more working hours, it is not possible for them to pursue the issue any further.
Comrades,
The preposterous, stubborn stand of IBA has shattered our hopes and battered our dreams of an early settlement. The entire workforce have felt the insult inflicted by IBA, who failed to live upto the expressions made by IBA Chairman in the first round of discussions held on 22-03-2013 that “the settlement would be concluded at the earliest with reasonable, respectable and comparable wage revision compared with external factors”.
We should take a call on these adverse developments in Toto and chalk out further agitational programmes of higher form to seize 10th Bipartite Wage Revisions from the unyielding hands, no holds barred.
Let us March forward!
Yours Comradely,
GENERAL SECRETARY"
NATIONAL UNION OF BANK EMPLOYEES
Administrative Office: 763, Anna Salai, Chennai – 600 002.E-Mail: unionbalu@yahoo.co.in, gsnube@gmail.com Phone : 044-28523392 / 28523561
Comments By AllBankingSolutions.com
I really appreciate the efforts of NUBE in taking Aam Banker into confidence as to what is the ground realities. Such sharing of information helps in confidence building in the cadre. It is good idea to be more transparent. The above circular has given insight as to the fact that the offer of IBA of 11% increase on Pay Slip component is in fact equal to 6.15% on the Establishment Expenses component. Thus, now cat is out of the bag that IBA is merely offering an increase of 6.15% when compared with the increases in the previous BPS. In fact an increase of 25% of the Pay Slip component will tantamount to only increase of less than 14% on establishment expenses. Thus bankers should realise the ground realities that even if IBA agrees to the demands of UFBU, your increase may not match to what you got in the previous BPS !!
pls tell whAT IS MEAN PAY SLIP COMPONENT
ReplyDelete