More Clarity On 11th Round Of Wage Talk

AIUBOSA CIR GS: 186 / 2013-14 dated 18.06.2014 
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 13^th June 2014 turned to be yet another futile, symbolic meeting with the yawning gulf separating policy pronouncements from the ground reality.  Thus the 10^th 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:

1. 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

2. 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.

3. 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.

4. 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.

5.  Even with 25% hike we will be just inching towards some semblance of parity with pay of government employees if we evaluate the projected salary in anvil in the wake of 7^th Pay Commission.

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 10^th Bipartite Wage Revisions from the unyielding hands, no holds barred.

 Let us March forward!

 Yours Comradely,

  

 (L.BALASUBRAMANIAN)

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 !!

Why Not 25 % Wage Hike

IBA’ PERVERSE LOGIC ON SO CALLED ‘CAPACITY TO PAY’ IS  PREPOSTEROUS

 

The stand of IBA is preposterous . Even with 25% increase we will  be lagging behind the government employees if one realistically evaluates their projection in wake of announcement of 7 pay commission in the anvil.

 

My arguments is backed By Justice Kantilal Desai  in his award popularly known as Desai Award  where in para 5.137 he has made pellucid the following   putting to rest the then arguments of private bankers that they cannot afford to pay  the terms of the tribunals .Para   5.176 ahs scientifically  laid down the  sound fundamentals to fix wages wherein they have specified that ‘One of the important factors to be taken into account in fixing

wage scale is the prevailing rates of wages in the same or similar occupations in the same or neighboring localities” which  is appended herewith  . Hence our demand of 25% hike to restore parity with government employees and other PSU‘s is just and right, and is accordance with awards in force for bank employees. Abrogating the legal sanctity of these awards of learned  judges  by peddling spurious logic tantamount to disrespecting the laws of the land .

 

Para 5.137(page 135)

CAPACITY OF THE INDUSTRY TO DAY

 

    ‘ Whilst considering the question of wages in the banking industry, it will be necessary to consider the question of the capacity of the industry to pay wages above the bare minimum wage and place of the industry in he economy of the country. The question concerning the capacity of an industry to pay wages has been dealth with at some length of the Supreme Court in the case of Express News paper (Pvt) Ltd and another V. The Union of India and others, reported in (1959) Supreme Court Reports, page12, at pages 89 to 93. As the Supreme Court has observed in that case, the capacity of industry particular unit (marginal, representative or average) to pay (ii) the capacity of a particular industry as a whole to pay, or (iii) the capacity of all industries in the country to pay, After considering the various aspects of the matter, the Supreme Court has at pages 92 and 93 of the aforesaid report observed as follow:

 

     The principles which emerge from the above discussion are:

 

(i)                That in the fixation of rates of wages which include within its compass the fixation of scales of wages which include within its industry to pay is one of the essential circumstances to be taken into consideration except in case of bars subsistence or minimum wage where the employer is bound to pay the same irrespective of such capacity.

(ii)             That the capacity of the industry to pay is to be considered on an industry cum region basis after taking a fair cross section of the industry and

(iii)           That the proper measure for gauging the capacity of the industry to pay should take into account the elasticity of demand for the product, the possibility of tightening up the organisation so that the industry could pay higher wages without difficulty and the possibility of increase in production considered in conjunction with the elasticity of demand for the product no doubt against the ultimate background that the burden of the increased rate should not be such as to drive the employer out of business.

 

     The Supreme Court has observed in an earlier paragraph that in a given case, it may be even permissible to divide the industry into appropriate classes and then deal with the capacity of the industry to pay class wise. The industry of banking in cases where the banks have branches in more states then one, has been dealt with class wise, and the capacity of the industry which, so far as the banks before me are concerned has to be determined class wise. Having regard to the principles enunciated by the Supreme Court, the capacity of the industry considered class wise will have to be determined after taking a fair cross section of each class. As observed by the Sastry Tribunal, the wage structure should be such as to be within the capacity of the industry to bear in the light not apply of its present position but of its future possibilities also”

 

SASTRY TRIBUNAL ON PREVAILING RATES OF WAGES IN COMPARABLE CONCERNS

 (xvi) Prevailing Rates of Wages in Comparable Concerns

5.176. One of the important factors to be taken into account in fixing

wage scale is the prevailing rates of wages in the same or similar occupations in the same or neighbouring localities.

5.177. The Sastry Tribunal in considering the prevailing rates of wages

has observed that helpful comparisons could be made between wages in

major banks and those in small banks, between banks on the one hand and certain industries on the other, between the bank awards and the awards in insurance companies, oil companies and textile companies and that the rates of pay in certain departments of Government such as the Posts and Telegraphs and in State Governments would also furnish material for the construction of a pay scale for the bank workmen. It also referred to the report of the First Pay Commission and stated that there were several affinities between bank workmen and Government clerks, bank subordinates and Government menials. The Sastry Tribunal has set out the scale of pay for clerks in the service of the various State Governments and also in the serviceof the Central Government. In paragraph 260 of its award it has observed as follows :

“Or again we may take a cross section of the wage map of India for clerical staff and compare the prevailing rates in a mixed bag       consisting of industrial concerns, municipalities, insurance companies, government departments, Port Trust and Reserve Bank of India.

 

The Sastry Tribunal has then set out the emoluments received at the initial start by members of the clerical staff of various concerns in this mixed bag. It has also given a summary of the emoluments given to clerks under   the more important award relating to various concerns.

 

5.178. The Labour Appellate Tribunal after referring to the fact that the

Sastry Tribunal had set out in its award the total emoluments of a mixed batch of industries and Government and quasi-Government institutions stated that it had collected other material also. The Labour Appellate Tribunal has thereafter set out the total emoluments payable to a clerk at the initial start in 28 different concerns. After considering the emoluments payable in concerns,

 

 The Labour Appellate Tribunal in paragraph 102 of its decision

observed as follows :—

“In our view the clerk in an ‘A’ class bank in class I area should

receive as his starting total emolument something midway between

Rs. 130 (which the Central Government gives to its clerk) and the

wages of the higher commercial firms (excluding the oil companies

to avoid possible contentions).”

In the course of its decision it has further stated as follows :—

“It is true that quite a number of the concerns whose total

emoluments we have given are industries but as we have said before

a clerk is no less a clerk whether he is in an industrial concern or

in a bank; his duties are in the main clerical even though the nature

of such clerical duties may vary from concern to concern. There

are however in the list a number of concerns which are in the main

commercial although some of them may have allied industrial units.

Bearing in mind the principal considerations already enunciated

and taking a conservative view, we are satisfied that the minimum

total emoluments of a clerk in an ‘A’ class bank in class I area

should be raised to something between Rs. 140 and Rs. 145 and

suitable variations will have to be made for other classes of bank

employees in the different areas.”

 

Corollary:

 

 

Even with 25% hike we well just be    inching towards some semblance of parity with pay  of government employees if we evaluate the projected salry in anviel in the wake of 7the pay commission.

 

The capacity to pay is never the standard of any capitalist when he starts an industry. They study the market some where they find the rate of profit to be 20, somewhere 30 and some where 50. They try to cash on it and come with their accumulated capital, reserves or some things – Rs. 5 crores or Rs. 10 crore and put it in to much machinery, so much raw material and go on hunting for the worker see at what will they can buy the labour power. Then they calculate that if the labour power is purchased Rs.10 a day their rate of profit will go down from Rs.50 to 30. So they reduce the rate. So the capacity to pay is really the capacity to earn the highest rate of profit. And we (The trade Union) change the wage rate up by bargaining, by organising ourselves and by strikes. So capacity to strike determine the capacity to pay on the part of the employer. The capacity to pay is not an abstract, unbreakable inviolable principles. It is a determinable thing determined by the rate of profit and capacity of the worker to bargain and strike for it. As the trade union maintain, it is not the industry’s alleged capacity to pay that is material to urge fixation put the workers capacity to work without which there can be no production.

 

So long as there is a high volume of NPAs in banks, there cannot be defined , expected profits .NPA is not our creation.   So we cannot accept this shallow and unfounded logic of capacity of the banks to pay. If that be the case wage hike for government employees  canot be granted  unless The central government brings down the current account deficit to 'Zero' ,the fiscal deficit to 'Zero' (CAD was at Rs.216,000 crores for 2013-14 as per the news item in NDTV Profit on 21-05-2014. Fiscal deficit was at Rs.519,529 Crores for 2013-14 as per the news item published in various newspapers

 

If the central government recovers a fraction of    NPA which around six lakh  crores through stringent legislations and measures   and further  recovers the huge tax arrears due from big industrial houses, large corporate groups, MNCs and high net worth individuals (HNIs), in Income Tax, Service Tax, Customs Duty, Excise Duty, Property Tax etc. in full (Income Tax arrears alone stood at Rs.580,000 crores as at the end of March, 2014), bank and government employees can be easily granted just  share of value added  in the forms of just wage revisions.

 

In view of the aforesaid principles laid by Indian jurisprudence , for bank employees our demand of 25 % hike in pay slip components is fair , just meets ends of justice and should be seized form unyielding hands no holds barred.  

 

S.SRINIVASAN

PRESIDENT

NATIONAL UNION OF BANK  EMPLOYEES’ ( NUBE) 

Bank Unions Target Youth

Bank unions eye youth to stay relevant-LiveMint

Three-day meet being ‘organized...to raise awareness among young employees about the need to stay organized and united’

 

BY Dinesh Unnikrishnan

 

Mumbai: When the largest trade union in the country’s banking sector, the All India Bank Employees Association (AIBEA), organizes a conference this October in Hyderabad exclusively for young employees who have worked with state-run banks for less than five years, it will be a first in the 68-year history of the body.

 

The three-day meet is being “organized specifically to raise awareness among young employees about the need to stay organized and united,” said AIBEA general secretary C. H. Venkatachalam. “They should know why unions are important to ensure a fair play in organizations.”

 

He admitted that not many young people are interested in participating in union activities. “There is a definite gap between the unions and the employees who have joined in the last four to five years.”

At present, there are about 11 employee unions in India’s banking industry with close to 900,000 members.

 

A majority of these employees are from the 27 public sector banks in the country.

AIBEA has almost 50% of this number as members.

However, in the last five years, AIBEA alone has lost about 100,000 members, mostly due to large-scale retirement in public banks, promotions of staff as officers, and reluctance of young staff to join, according to Venkatachalam.

 

There are many reasons for this alienation.

Younger employees today are “more oriented towards their career development and quick opportunities to grow in the ranks”, according to G.D. Nadaf, former general secretary of All India Bank Officers Confederation.

 

Besides, alternative banking channels such as cash machines, online and mobile banking, coupled with social networking and instant messaging, have reduced the effectiveness of bank strikes, and have further weakened the connect of young people with trade unions.

 

There is also the fear that associating with a trade union could mar their careers.

“We do become members of the unions and offer s subscription fee,” said a young executive, who joined as a probationary officer in a Mumbai-based state-run bank last year. “But we do not have time really to actively participate in their programmes. Also, this could be a negative in our career record,” he said, not wanting to be named.

 

Traditionally, bank unions had a major say in most policy matters at state-run banks and decisions pertaining to staff, including the compensation and transfer policies.

 

However, they have been increasingly losing their relevance in a fiercely competitive environment.

Moreover, in recent years, the managements of government-owned banks have adopted a stricter approach to control union activities and bring in a more professional approach among the employees, like in the case of private and foreign banks which do not allow union activities, further eroding the strength of the unions.

 

For instance, since August, 2012, State Bank of India (SBI) has taken action against officers engaged in trade union activities, including transfers to remote locations and issuance of chargesheets.

Competition from private rivals, too, is forcing the state-run banks to push their employees for business generation and discourage them from organized union activities, experts said.

“We are under immense pressure to build business and compete with banks in private and foreign segments,” said a senior official at a public sector bank, who spoke on condition of anonymity. “Trade unionism cannot be tolerated in this scenario.”

 

Financial services experts insist that trade unions have become irrelevant in the backdrop of increased awareness among employees about their rights, better working conditions and an active media.

“Trade unions will die their natural death,” said Naresh Makhijani, partner, financial services, at audit firm BSR and Co.

Delay In Wage Revision Is Well Planned ???

Stalemate in Negotiations - Great Strategy of UFBU for Delaying Tactics-Rajesh Goyal

After a wait of over 36 hours, I have come across the details of the discussions that took place on 13th June, 2014.   In case one wishes to read the circular in continuous mode, you can click here  or else stay here and read the contents alongwith analysis of ABS  in the tabular format as given below :-

After the last round of negotiations held on 14-3-2014, another round of discussions took place with IBA on 13-6-2014 in Mumbai in the background of the new Government taking over at the Centre after the general elections.  The details of the meeting are give below alongwith remarks of AllBankingSolutions.com

What Does Circular Reads	Summary / Remarks by AllBankingSolutions.com
UFBU meeting: Prior to the discussions with the IBA, meeting of the UFBU was held. The meeting observed a minutes' silence to pay homage on the death of Dr Shanti Patel, veteran trade union leader of HMS and Port and Dock Workers. The meeting took stock of the developments since our last meeting held in March, 2014. The meeting welcomed the new Government under the Prime Ministership of Shri Narendra Modi and hoped that the basic problems of the people and workers would be addressed by the new Government. The meeting noted that in addition to the pending demands of UFBU for wage revision, there are other challenges too like the recommendations of P J Nayak Committee, talks of dilution of Government's capital in Banks, merger of Banks, etc. The meeting decided to take a delegation of UFBU to the Finance Minister to apprise him of our issues and demands.	I was expecting that in the meeting prior to discussions with IBA, UFBU leaders would have discussed about the strategies to be adopted to counter IBA and how to cut the delays in the finalisation of BPS.    I am shocked that instead of focusing on the wage hike, UFBU leaders  appear to have focused on other issues which they feel to be much more important than honorable wage hike.   They seems to be more worried about recommendations of P J Nayak Committee than wage hike for bankers.  I wonder if they had to make a strategy for countering Nayak Committee report in a meeting, what stopped them even during election period and after the declaration of elections results to deliberate on such an issue?  These appear to be  nothing but diverting tactics or at best to settle their political goals.  They seem to have lost an opportunity to discuss various strategies so as to get the bankers an honorable wage settlement.
Discussions with IBA: (1)         In the wage revision talks, the IBA was represented by Mr. T M Bhasin, Chairman of the Negotiating Committee along with other members. UFBU was represented by all the Constituent Unions. Opening up the discussions, Mr. Bhasin explained the present banking scenario where the profits of the Banks have come down as on 31-3-2014 adding to the constraints of the Banks to take up any huge financial burden in the form of wages. After submissions from UFBU, IBA informed that they are willing to improve their offer from earlier 10% to 11% on the cost of Pay 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, hospitalization expenses, etc. From UFBU, we expressed our inability to accept this offer as the same was quite inadequate.   (2)         Since UFBU refused to accept the IBA's offer of 11% increase, IBA wanted to know the expectation of the UFBU for which it was informed that our minimum expectation is 25% increase in the Pay Slip components cost. IBA expressed their total inability to accept the same as it is beyond the paying capacity of the Banks.	IBA offered an improvement of 1% and agreed to improve their offer from 10% to 11%.   UFBU told it is inadequate.  On being asked abouts expectations, it asked for 25% increase on Pay  Slip components instead of 11% offered by IBA  Thus, now bankers who were expecting / demanding 30% to 50% increase OR  parity with central government pay-scales should realize that maximum demand  by UFBU is 25%. Forget about all Charter of Demands submitted in October 2012, which had all sorts of high dreams.  Now expect anything above 11% but below 25%. on Pay Slip component.

What Does Circular Reads	Summary / Remarks by AllBankingSolutions.com
As regards other issues discussed with the IBA in the last two rounds of discussions, IBA informed that they are favourably inclined to consider the demand of extending 100% DA for all pensioners and the same is awaiting the approval of the Government. On our demand for improvement in Family Pension, IBA's response was positive but they informed that the cost implication has to be properly worked out and Government's approval is necessary for the same. As regards updation of pension, IBA was apprehensive about the same since it involves substantial financial burden to the Banks. IBA also informed that our demand for extending appointment on compassionate grounds in the Banks on the lines of Government scheme is under the active and positive consideration of the Government and their decision is awaited.	Frankly speaking IBA has not given commitment on any of issues relating to 100% DA for all pensioners and improvement in family pension; and appointments on compassionate grounds.    However, as per UFBU version IBA is favourably inclined to consider demand of extending 100% DA for all pensioners.   IBA also seems to have shown positive response to improvement in Family Pension. However,  UFBU still needs to do lot of work as IBA has not committed anything and only shown positive response.   Thus, a ray of hope continues for old retired bankers for 100% DA. As far as updation of pension is concerned, there seems to be little hope due to financial implications.
With this, the talks ended inconclusively. Thereafter UFBU decided that since IBA has not come up with any adequate increase in their offer, further course of action would be taken shortly after mutual consultations amongst the Constituent Unions and also after meeting the Finance Minister in this regard. Further developments would be informed to units in due course.	UFBU is unhappy and told that further course of action will be announced after mutual consultations and meeting with FM.

 Thus, to conclude we can say there is again a stalemate.  Next meeting for negotiations is not announced as talks appears to have broken down as there is wide gap between what is being demanded by UFBU and what is being offered by IBA.   

UFBU is not able to decide what future course of action it needs to take.   Thus, UFBU has merely announced that it will wait for another meeting among  UFBU leaders and a meeting with FM.   

I am afraid the meeting with FM too will more focus on stalling Nayak Committee recommendations rather than on wage hike.   It again appears to be great tactics to buy maximum time as FM will be too busy in next few weeks for preparation of budget and then meetings that follow the budget.  

UFBU are unlikely to get time from FM (with burden of two portfolios - defence and finance) to discuss this issue before budget.  Thus, the next course of action to be announced may take another SIX weeks.   

Another FOUR weeks may be required for preparation of agitation / strike programme  and its notice period.  Thus, Aam Banker should continue to lick his / her wounds for another TEN weeks or so when they can expect any agitation programme to start.

Great Strategy to befool the cadre - the true agenda of UFBU now does not seem to be wage hike but stopping bank reforms.  Art of delaying tactics can be best learnt from UFBU leaders.

Details Of Wage Talk Held On 13th June

UFBU Details of the Negotiation Meeting Held on 13th June, 2014

We give below the details as released by one of the unions on its website :

After the last round of negotiations held on 14-3-2014, another round of discussions took place with IBA on 13-6-2014 in Mumbai in the background of the new Government taking over at the Centre after the general elections.


 

UFBU meeting: Prior to the discussions with the IBA, meeting of the UFBU was held. The meeting observed a minutes' silence to pay homage on the death of Dr Shanti Patel, veteran trade union leader of HMS and Port and Dock Workers. The meeting took stock of the developments since our last meeting held in March, 2014. The meeting welcomed the new Government under the Prime Ministership of Shri Narendra Modi and hoped that the basic problems of the people and workers would be addressed by the new Government. The meeting noted that in addition to the pending demands of UFBU for wage revision, there are other challenges too like the recommendations of P J Nayak Committee, talks of dilution of Government's capital in Banks, merger of Banks, etc. The meeting decided to take a delegation of UFBU to the Finance Minister to apprise him of our issues and demands.

Discussions with IBA: In the wage revision talks, the IBA was represented by Mr. T M Bhasin, Chairman of the Negotiating Committee along with other members. UFBU was represented by all the Constituent Unions.

Opening up the discussions, Mr. Bhasin explained the present banking scenario where the profits of the Banks have come down as on 31-3-2014 adding to the constraints of the Banks to take up any huge financial burden in the form of wages. After submissions from UFBU, IBA informed that they are willing to improve their offer from earlier 10% to 11% on the cost of Pay 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, hospitalization expenses, etc. From UFBU, we expressed our inability to accept this offer as the same was quite inadequate.
 

As regards other issues discussed with the IBA in the last two rounds of discussions, IBA informed that they are favourably inclined to consider the demand of extending 100% DA for all pensioners and the same is awaiting the approval of the Government. On our demand for improvement in Family Pension, IBA's response was positive but they informed that the cost implication has to be properly worked out and Government's approval is necessary for the same. As regards updation of pension, IBA was apprehensive about the same since it involves substantial financial burden to the Banks. IBA also informed that our demand for extending appointment on compassionate grounds in the Banks on the lines of Government scheme is under the active and positive consideration of the Government and their decision is awaited.

Since UFBU refused to accept the IBA's offer of 11% increase, IBA wanted to know the expectation of the UFBU for which it was informed that our minimum expectation is 25% increase in the Pay Slip components cost. IBA expressed their total inability to accept the same as it is beyond the paying capacity of the Banks.
With this, the talks ended inconclusively. Thereafter UFBU decided that since IBA has not come up with any adequate increase in their offer, further course of action would be taken shortly after mutual consultations amongst the Constituent Unions and also after meeting the Finance Minister in this regard.
Further developments would be informed to units in due course.