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Tuesday, June 23, 2015

Government Gives Green Signal For Arrear Payment





Another Bogey of IBA That It Did Not Have MANDATE  from Banks for Discussing Retirees Issues Exposed-By S. Ramachandran 

Date :18th June’2015 
     MOST URGENT  
To 
                                           
 Shri Hasmukh Adhia,                                                              
Secretary, Departmental of Financial Services,                                  
Ministry of Finance, Jeevan Deep Building,                                          
3rd Floor, 10, Parliament Street,                                                           
New Delhi -100001
Dear Sir,
SUBJECT- STATEMENT RECORDED IN RECORD NOTE OF DISCUSSION OF IBA AND UFBU DATED   25-5-2015 RELATING TO PENSIONERS ISSUE- IS IT TRUE AND WHETHER IT IS REQUIRED? THAT  “THE PERIODIC WAGE REVISION EXERCISE BASED ON MANDATE FROM MEMBER BANKS COVER ONLY WAGES AND SERVICE CONDITIONS OF SERVING EMPLOYEES “
                       
This has reference to my letter dated   28/05/2015   whereby I had  highlighted the unconstitutional and perverse approach of Indian Bank’s Association (IBA)  in dealing with the issues of retirees in the recently concluded wage negotiation with United Forum of Bank Unions(UFBU) , more specifically in respect of the Record note 2 wherein they have stated that the issues of retirees would only be dealt with as a welfare measure since  contractual relationship does not exist  between the banks and  the retirees. 
While I have given a detailed response to the above averments as well as other points of the IBA in my above cited letter, I have to state the following in respect of another statement that appears in the prefatorial remarks of the Record note 2 which reads as under:
“The periodic wage revision exercise based on mandate from member banks cover only wages and service conditions of serving employees.”
Contextually when you read the above statement of IBA, it is clear and categorical that there is no mandate from member banks for the IBA to discuss issues relating to retirees and therefore, IBA feels that whatever they are doing, it is a “WELFARE MEASURE” flowing out of gratis. How far this statement is true can be seen from the following .
In this context, I have to state the following:
   1.       The issues relating to grant of  Pensionary benefits to Bank employees have been raised by employees organizations from around 1985 onwards and IBA has been discussing these  issues since then without raising this bogey  of lack of mandate even once;
   2.       Even at the time of implementation of Pension scheme way back in 1995, not even once the IBA has stated that this retiral benefit is a welfare measure and is being implemented without mandate from the PSBs.
   3.       Even when the issue of second option was raised in early 2000 and finally agreed upon in 2010, this bogey of lack of mandate to discuss pension related issue was never raised even once.
   4.       When the 10 BPS became due in November, 2012, and the demands were raised by the UFBU, IBA  never raked up this issue for almost 3 years.
 5.       Further, when the issue of  grant  and updation of Pension to General Managers who were elevated to the position of ED and subsequently to CMDs position was raked up by  a group of CMDs and finally agreed upon by the Ministry of Finance, the issue of lack of mandate from PSBs  as well as terming the pensioners issue as a  “ welfare measure “were not raised by IBA.
   6.       In fact IBA is well aware of the fact that there is no need for such separate mandate since under Regulation 45 of the Officer’s Service Regulation (OSR) below the caption “Terminal Benefits”, Provident Fund, Pension and Gratuity are covered.  Thus, when Pension is a part of Officer’s service Regulation and the mandate has been given by PSBs to discuss and settle scales of pay and allowances and other service conditions of officers, it is a clear mandate to discuss all issues governing Officer’s service condition including pension which is covered under regulation 45 of OSR. 
7. OSR being a subordinate legislation, it is statutory for the Bank’s to implement the provisions of Pension regulation which includes updation etc., It is a statute  since it is enacted under the provisions of Banking companies’(Acquisition and Transfer of undertaking ) act 1970/1980  and State Bank of India (Subsidiary Bank) Act.1959.  Right to Pension is founded on contract. The very nature of Pension Regulation extends the contractual relationship between Bank and the retirees. Therefore, there is no need for any mandate from the PSBs which even IBA is aware off.


8.       Another aspect to this issue is that the Pension Fund is created in PSBs mainly out of the employers’ contributions which were credited to PF fund account of individual employees who were in service as well as from the retirees. 
  9.       If the present statement of IBA that there is no mandate to discuss pensioners issue is to be taken as correct, then how is that they have dealt with Pension issues so far without mandate?  Why did they not disclose this for the last 30 years or so? The same officials of IBA were part of the negotiation with the UFBU. Were they sleeping or deliberately kept quiet. Whatever may be reasons, they cannot bring in that bogey which is totally illegal to say the least.
    10 .        The fact of the matter is clear and simple; IBA and the UFBU were in a tight spot since none of the issues of Pensioners were dealt with by them during the recently concluded industry wide settlement. Just only to make a show that they have discussed the issues of Pensioners, a record note has been prepared and signed without application of mind by BOTH THE PARTIES. In the process, IBA and the UFBU have only exposed themselves of illegality even after IBA spending lakhs  and Lakhs of rupees of PSBs on seeking legal advice.
    11.       Being an employer’s organization representing mainly the government owned PSBs, IBA should act responsibly as a model employer and stop fooling the Bank employees and the retirees in particular. IBA can fool the leaders who give into their mindless  and illegal arguments.
     12.       The  Circular letter dated 12/06/2015 issued by All India Bank Officer’s confederation (AIBOC) which is annexed with this letter is categorical admission of what the undersigned has stated in his letter dated 28th May, 2015.  The whole truth of the game between IBA and the UFBU is demystified  in this letter.                        
      13.       Lastly in spite of the above statement of IBA and UFBU which is totally untrue, illegal still the member Banks especially PSBS have not raised any voice against this statement as they are least interested in the welfare of the retirees .
In the contest of the above, it is high time that the Ministry of Finance should intervene to stop the diabolical and perverse approach of IBA in the matters relating to Pensioners .It is also high time for Ministry of Finance TO PROFESSIONALISE IBA after removal of some  of those such as Deputy CEO, without  any banking experience who are being retained in IBA even after their term is over, who are hobnobbing with the leadership of UFBU. 
                   Thanking you and awaiting your prompt reply.
 Yours sincerely,  
(S.RAMACHANDRAN)
 PENSIONER AND SENIOR CITIZEN
AGE 77 YEARS,
FORMER GM BANK OF BARODA,
              
CC:
1. SHRI ARUN JAITLY,
HON’BLE FINANCE MINISTER,
MINISTRY OF FINANCE,GOVT OF INDIA,
NORTH BLOCK,RAISINA HILLS,
NEW DELHI 110001 FOR INFORMATION AND NECESSARY INSTRUCTIONS TO IBA
2.  SHRI NARENDRA MODI,HON,BLE PRIME MINISTER,
GOVT OF INDIA,ROOM NO 148B,SOUTH BLOCK,RAISINA HILLS,
NEW DELHI,110001,FOR INFORMATION AND NECESSARY INSTRUCTIONS TO IBA
3. THE CHAIRMAN,
INDIAN BANKS ASSOCIATION,WORLD TRADE CENTRE,
6TH FLOOR,CENTRAL BUILDING,WORLD TRADE CENTREB COMPLEX,
CUFFE PARADE,MUMBAI-400005
4. CMD,BANK OF BARODA,BANDRA KURLA COMPLEX,
BARODA CORPORATE CENTRE,C-26,G BLOCK,BANDRA EAST,
MUMBAI  400051
5. DR RAGHURAM RAJAN,
GOVERNOR,RESERVE BANK OF INDIA ,16TH FLOOR,
CENTRAL OFFICE BUILDING ,MINT ROAD,
FORT,MUMBAI -400001      


 FOR INFORMATION AND NECESSARY INTERVENTION PLEASE

Bank employees put off strike plan-The Hindu-23.06.2015
Kochi, June 22:  
The All-India Bank Employees’ Association has put off the proposed June 24 all-India bank strike aimed at pressing the State Bank of India management to “implement the government guidelines” on housing loans, compassionate appointments and trade union representation in the associate banks of the SBI.
AIBEA General Secretary CH Venkatachalam told BusinessLine that the association would take up these issues with the Union Finance Minister and the Union Labour Minister shortly as the talks with the SBI management were not productive. It was in view of this that the strike was postponed, he added.
Leaders of the State Sector Bank Employees Association (SSBEA) and AIBEA had held bilateral and trilateral talks with the SBI management, the latter with the involvement of the Union Labour Commissioner.
“The State Bank management has been adamant and hence we have decided to take up the issue with the Union Government leaders,” Venkatachalam said.
Employees’ demand

The strike was called to press upon the State Bank of India management the demands to increase the quantum of home loans for employees of the associate banks, implement compassionate appointments in all cases and also to allow retired bank employees who are elected office-bearers of bank trade unions to represent the unions. Venakatachalam said Class IV employees in the associate banks get home loan of only ₹8 lakh and Class III ₹12 lakh, while employees of SBI and other public sector banks receive sums many times over.
He said this ‘discrimination’ was in spite of a government guideline.
The SBI management insisted that the employees in the associate banks should accept the ‘career progression policy’ formulated for the SBI staff before the higher home loan and other demands could be considered.
“The staff of the associate banks are totally against the career progression policy which aims to put more workload on the employees.”

PSU bank recapitalisation in 3 to 6 months: FM Jaitley-Money Control-RBI had asked the Finance Ministry to raise the quantum of assistance in view of mounting bad loans and to support growth

The government will infuse capital in public sector banks in the next three to six months, Finance Minister Arun Jaitley said at Citi event. Jaitley has earmarked Rs 7,940 crore in the Budget for recapitalisation of PSU banks during the current fiscal.
RBI imposes Rs 20 lakh fine on Hubli Urban Co-operative Bank -Economic Times
MUMBAI: The Reserve Bank has imposed a penalty of Rs 20 lakh on Karnataka's Hubli Urban Co-operative Bank Ltd for irregularities in cheque discounting.

"The Reserve Bank of India has imposed a monetary penalty of Rs 20 lakh on Hubli Urban Co-operative Bank Ltd... for violation of RBI's instructions for irregularities in cheque discounting, overdrawal in OD loan accounts," the central bank said in a notification.

The RBI had issued a showcause notice to Hubli Urban Co-operati ..

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