- Hike in Pay Slip Components
9th BPS - Rs.2,798 Crores
10th BPS - Rs.4,725 Crores
- Hike in Total Staff Costs (including Pension and Gratuity)
9th BPS – Rs.4,816 Crores
10th BPS – Rs.8,000 Crores
- Hike in Pay Slip Components as % of Hike in Total Staff Costs
9th BPS – 58.10%
10th BPS – 59.06%
- AICPI
9th BPS (as on 01-11-2007) – 3035 Points (Base: 1960=100)
10th BPS (as on 01-11-2012) – 4907 Points (Base: 1960=100)
- Present Value of money
- Rs.2,798.00 Crores as on 01-11-2007 is equal to Rs.4,523.82 Crores as on 01-11-2012
Rs.4,816.00 Crores as on 01-11-2007 is equal to Rs.7,786.53 Crores as on 01-11-2012
- Break up particulars of Award Staff and Officers
9th BPS (as on 31-03-2007) – (a) Award Staff - 469,985 (b) Officers - 305,117
10th BPS (as on 31-03-2012) – (a) Award Staff - 451,634 (b) Officers - 385,284
- Apportionment of the Wage Hike in 10th BPS
(a) Award Staff – Rs.2,270 Crores (48.04%)
(b) Officer Staff – Rs.2,455 Crores (51.96%)
- Average Benefit per head in 10th BPS
(a) Award Staff – Rs.50,262
(b) Officers – Rs.63,719
Considering the award staff include Sub-staff, average hike per head is much better.
In contrast, officers include all officers from JMGS I to TEGS VII. Therefore, average hike per officer is not attractive, comparatively.
- Other Points
Reimbursements related to hospitalisation and leave travel allowance will be calculated separately..
Some Suggestions for UFBU by Aam Banker-
By-Hiren Bhatelia
While congratulating the UFBU for finally clinching the 10th BPS, some points need to be pondered over in a fair and just way, without prejudice:-
1. If the final goal was just 15 %, it should have been achieved within a few months, at least before the general elections. This rise, especially after such a long period of about two and a half years, cannot be called a satisfactory one (at least, please do not call it a historic achievement, dear leaders)
2. The UFBU could, at least have brought down the current settlement period by a year or two with this paltry rise, in view of the next Central Pay Commission coming into force shortly. (They can still raise this point)
3. There is nothing like an achievement in two Saturdays’ off in a month. While counting the paltry annual gain of a few hours, we ignore the loss of holidays falling on Saturdays and inclusion of these Saturdays falling during leave periods. Had we got 1st, 3rd and 5th Saturdays as holidays, it would have been a better option. If this was done, the bank employees could take up their works relating to other government offices that remain open on these Saturdays. (This is not a difficult point and the unions can still modify the agreement if there is a will among them). Alternatively, the other Saturdays should not have been made full working days; otherwise this is not an achievement at all.
4. The wage hike, under the prevailing circumstances, may be called satisfactory if we go by the arguments of the unions, but in that case other issues of justice, parity, non-discrimination which have crept in during the past years must have been cleared or must be cleared during the next talks. (The issues are narrated hereunder)
5. When there were talks of bringing parity with Central Govt. Employees among the bankers, at least, the same among the PSBs (including SBI) inter se must have been brought or must now be brought.
6. There was no justice or fairness in the amounts got contributed to the pension fund by the pension optees of the second option, let alone the very unjust idea of any extra contribution. The same amount contributed by a person retiring in 2010 itself (when the extra contribution was made) and by the person retiring in 2020 cannot be placed on par as with the same amount of extra contribution the person retiring in 2010 would get immediate pension benefit whereas the person retiring in 2020 would get it after a decade. At least, this anomaly of the 9th BPS needs to be rectified during the next talks. This may be by way of paying interest on the extra contribution till the date of retirement. In fact, if the issue of restoration of old pension scheme for the NPS holders can rightly be reopened, why not the refund of extra contribution by second pension optees be demanded?)
7. It is quite unfair that the new recruits during the 9th BPS negotiations got full arrears as against their senior counterparts who got negligible arrears due to heavy contribution towards the pension fund. Such situation has never arisen in the past and must be rectified now.
8.In fact, if the new recruits in SBI can still have the old (third benefit) pension scheme, why not their counterparts in other PSBs have the old pension scheme? But, to hope for this under the prevailing mindset of the union leadership and under the current circumstances, looks impossible just like the just and fair thing of giving third benefit pension to all PSB employees on the principle of equal pay for equal work. However, these discriminations can still be removed with the paltry wage hike agreed upon if we have firm determination.
9. While the difference in special allowances in SBI and other banks may be justified in view of difference in duties, there is no justification in difference in Professional Qualification Pay as the employees get it for the same qualifications in all banks.
10. It must be ensured that there is no discrimination among cadres in the issues relating to welfare of employees.
11. The issue of reduced bank holidays in many States needs to be taken up now. The State governments declare different number of holidays for their own staff and under the negotiable instruments act. Either the past position of the same number of holidays should be restored or the guarantee of minimum 23.5 holidays in a year, with compensation for the lesser number of actual holidays than this by way of extra casual leave, as in LIC, must be achieved. The same bank employees in different States now get different number public holidays. At least this should be resolved in the above manner.
12. There is no logic in allowing Special Sick Leave up to 4 days without medical certificate (as is learnt to have been agreed upon) while continuing the same requirement for regular sick leave. Small sickness does not need consultation of a doctor always and it has no relation to the type of sick leave an employee avails for the same. In fact the period should be 5/6 days to enable a sick employee to have sufficient rest by combining weekly off/s.
13. Availing of agreed leave must be made right of the employees. When no exigencies of work come into picture when employees are deputed to election duty en masse, why this reason should factor in while granting eligible leave to the employees?
The leaders have still a chance to regain the past glory of the unions if at least the above points of justice, non-discrimination and fairness are considered before concluding the final settlement. It will be great if the leaders take the above comments as suggestions for improvement during the next rounds of talks for concluding the final settlement.
Bank branches to be closed on 2nd, 4th Saturdays
IBA signs pact with unions, settles for 15% wage hike---BUSINESS STANDAD 26th Fab 2015
Bank employee unions have called off a planned four-day strike after agreeing to a 15 per cent wage increase and two more holidays a month – the second and fourth Saturdays, a senior union official said on Monday.
But other Saturdays in a month will be working, the union official said. A formal approval from the government and the regulator might be required for effecting changes in the working schedule.
The annual wage bill (at 15 per cent rate) works out to Rs 4,725 crore for banks. This will be a five-year wage pact running from November 1, 2012 to October 30, 2017. At base level, the wage bill burden for five years would be over Rs 23,600 crore. The actual bill would be more, “as the cost of medical, hospitalisation scheme, other items, superannuation, provident fund, gratuity and pension is being worked out separately”, said Vishwas Utagi, convener, (Maharashtra), United Forum of Bank Unions.
The process of wage negotiations started after the unions submitted their charter of demands in October 2012. They demanded broadly a 25-per cent hike before settling for a 15-per cent rise.
In the last round of wage settlements, the employees received 17.5 per cent hike that included pension and other retirement benefits also.
The bank managements offered a 5-per cent hike at start and raised gradually through negotiations to settle at 15 per cent. Unlike previous wage negotiations, banks are better prepared this time around. Banks have been making provisions in books assuming a 13-15 per cent annual hike in wages. Banks began making provisions from 2012-13.
The distribution of annual wage increase between workmen unions and officers’ association will be worked out separately based on break-up of establishment.
“As per the agreement, the second and fourth Saturdays of every month will be holidays and the remaining Saturdays will be full working days,” IBA said. The details of the bipartite settlement will be worked out in the next 90 days.
Banks would start distributing arrears soon.
But other Saturdays in a month will be working, the union official said. A formal approval from the government and the regulator might be required for effecting changes in the working schedule.
The annual wage bill (at 15 per cent rate) works out to Rs 4,725 crore for banks. This will be a five-year wage pact running from November 1, 2012 to October 30, 2017. At base level, the wage bill burden for five years would be over Rs 23,600 crore. The actual bill would be more, “as the cost of medical, hospitalisation scheme, other items, superannuation, provident fund, gratuity and pension is being worked out separately”, said Vishwas Utagi, convener, (Maharashtra), United Forum of Bank Unions.
The process of wage negotiations started after the unions submitted their charter of demands in October 2012. They demanded broadly a 25-per cent hike before settling for a 15-per cent rise.
In the last round of wage settlements, the employees received 17.5 per cent hike that included pension and other retirement benefits also.
The bank managements offered a 5-per cent hike at start and raised gradually through negotiations to settle at 15 per cent. Unlike previous wage negotiations, banks are better prepared this time around. Banks have been making provisions in books assuming a 13-15 per cent annual hike in wages. Banks began making provisions from 2012-13.
The distribution of annual wage increase between workmen unions and officers’ association will be worked out separately based on break-up of establishment.
“As per the agreement, the second and fourth Saturdays of every month will be holidays and the remaining Saturdays will be full working days,” IBA said. The details of the bipartite settlement will be worked out in the next 90 days.
Banks would start distributing arrears soon.
IBA's deal with bank staff may amount to Rs 1,600-cr windfall for general insurance companies -Economic Times
MUMBAI: State-run general insurance companies could be in line for a windfall of Rs 1,600-crore business a year, following the Indian Banks' Association's (IBA) wage deal with more than 10 lakh staffers, said two people familiar with the matter.
From now on, banks will buy health insurance cover from one of the state-run general insurance companies instead of reimbursing the medical expenses of staff in full which goes as part of their expenses, they said. This could also reduce the expenses and put a cap on the liabilities of banks in the future. "This is a path-breaking agreement," said TM Bhasin, chairman of IBA and CMD of Indi an Bank. "Besides a 15% hike and holiday on alternate Saturdays, it is mutually agreed that the bank will buy medical cover for the employee and his family."
Bank employees unions, including that of State Bank of India (SBI) and the industry body representing state-run banks, agreed on a 15% increase in their basic salaries for the period 2012 and 2017. One new factor that crept into the agreement this time, other than holidays on alternate Saturdays, is medical cover.
Although no definitive agreement or insurance underwriter is yet to happen, executives in both banking and insurance industries indicate that underwriting norms could lead to an outgo of about Rs 1,500 crore to Rs 1,700 crore. That will depend on individual bank's negotiating power.
From now on, banks will buy health insurance cover from one of the state-run general insurance companies instead of reimbursing the medical expenses of staff in full which goes as part of their expenses, they said. This could also reduce the expenses and put a cap on the liabilities of banks in the future. "This is a path-breaking agreement," said TM Bhasin, chairman of IBA and CMD of Indi an Bank. "Besides a 15% hike and holiday on alternate Saturdays, it is mutually agreed that the bank will buy medical cover for the employee and his family."
Bank employees unions, including that of State Bank of India (SBI) and the industry body representing state-run banks, agreed on a 15% increase in their basic salaries for the period 2012 and 2017. One new factor that crept into the agreement this time, other than holidays on alternate Saturdays, is medical cover.
Although no definitive agreement or insurance underwriter is yet to happen, executives in both banking and insurance industries indicate that underwriting norms could lead to an outgo of about Rs 1,500 crore to Rs 1,700 crore. That will depend on individual bank's negotiating power.
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