UFBU Writes Lovely Letter To IBA For Wage Revision

UFBU Letter to IBA

The Chief Executive, 

Indian Banks' Association, 

World Trade Centre Complex, 

Centre 1, 6th Floor, 

Cuffe Parade, MUMBAI.

Dear Sir,

TENTH BIPARTITE WAGE REVISION NEGOTIATIONS

The meeting between the Negotiating Committee of IBA and the representatives of UFBU was last held on 13th June 2014 and was inconclusive on account of contradictory views in the matter of percentage increase in wages. Despite the assurances of IBA during the conciliation meeting held on 13th January 2014 that further meetings shall be held at regular intervals, say fortnightly, to settle an early wage revision, the holding of wage negotiation meeting with us is being unduly delayed.

2. The above issue was seriously considered in the UFBU Meeting held yesterday, i.e., 15th July 2014, in Mumbai and the UFBU expressed its unhappiness over the undue delay in the wage negotiations. We, therefore, request for conduct of wage negotiation meeting at the earliest and also to ensure conduct of such meetings at frequent and specified intervals for early conclusion of wage revision settlement.

3. Please acknowledge receipt of this communication and advise us the developments in this regard.

With best regards,

Yours sincerely, 

Sd/-(M.V. MURALI) CONVENOR "

Details of (i) Meeting with IBA (ii)UFBU Meeting.....

Meeting with IBA on Charter of Demands – Disciplinary Rules/Procedures for Officer EmployeesA meeting of the Three Member Committee constituted by Indian Banks Association to look into the issue of Disciplinary Rules/ Procedures for officer employees, as demanded by us in our Charter of Demands, was held with IBA on Monday, 14th July,2014. 

We urged upon IBA the need for a thorough review of the existing Rules & Procedures. We insisted on the necessity to put an end to the prevailing undue delay in commencement and conclusion of the disciplinary cases, quantum of punishment imposed disproportionate to the offence committed, undue delay in lifting suspension, enhancing subsistence allowance payable on suspension, denial of certain facilities to officers on suspension, revoking Reg:20(3)(3) and not permitting the officer to retire, denying his rightful entitlements viz. gratuity, pension, leave encashment etc.

The IBA Team heard our submissions carefully and meaningful discussions followed. They wanted us to quote various issues raised with illustrations and submit a detailed Note to them for the consideration of the Managing Committee of IBA. We shall do so immediately. 

During the course of the meeting, we also impressed upon IBA the need to discuss our long pending demand of Regulatory Working Hours for bank officers. IBA desired an Approach Paper on this issue. We shall be submitting the same shortly. 

UFBU Meeting We also wish to inform that a meeting of the United Forum of Bank Unions was held in Mumbai on 15th July,2014, to review the developments on Wage Revision Negotiations and chalk out strategies to secure early and better Wage Revision. Details will follow.

With greetings, 

Yours sincerely, (K.K.NAIR)
GENERAL SECRETARY

TOP 35 NEWS RELATED TO

 RBI THIS YEAR----------------------
1. RBI permits NBFCs to work as Business Correspondents of banks: With a view to achieve financial inclusion, the Reserve Bank of India has allowed Non‐Banking Finance Companies to operate as Business Correspondents (BCs) of banks, permitting them to offer limited services. Banks will be allowed to work with non‐deposit taking NBFCs as BCs.Note: The RBI took into account recommendationsof Nachiket Mor Committee while reviewing the existing guidelines on the appointment of BCs.

2. RBI to consider over Payment bank as recommended by Nachiket Mor Paneli. The Reserve Bank of India will soon come up with India’s first payments bank,which will offer deposit and payment services but not provide loans.ii. This idea is in line with the recommendationsmade by the Nachiket Mor committee. The central bank sees huge potential for financial inclusion withfocus on remittances by involving payment system product.

3. Provide information to SIT on black money: RBI directs banks and FIsi. The RBI has asked all Banks and Financial Institutions (FIs) to provide information and documents sought by the Special Investigation Team (SIT) set up to uncover black money.ii. The new Government at Centre recently constituted an SIT under the chairmanship of former Justice M.B. Shah in pursuance of a July 2011 Supreme Court judgment

.4. RBI simplifies KYC norms for opening bank account: Customers need to submit only one documentary proof of address— either current or permanent — while opening a bank account or while undergoing periodic updation, the Reserve Bank of India. “In case the address mentioned as per ‘proof of address’ undergoes a change, fresh proofof address may be submitted to the branch within six months,” the RBI said ina notification to banks.No proof is required to be submitted for such address for correspondence/local address,” the RBI added.However, this address may be verified by the bank through ‘positive confirmation’ such as acknowledgment of receipt of letter, cheque books, ATM cards; telephonic conversation; and visits.

5. Australia and New Zealand Banking Group (ANZ) has received in‐principle approval from the Reserve Bank to open two new branches. The new branches will come up Gurgaon, NCR, and outer Bangalore.

6. RBI directive on foreign currency accounts: The Reserve Bank of India has directed banks to: convert credit balances in any inoperative foreign currency (FC) denominated deposit into Indian rupee if the former remains not in use for three years from the date of maturity of deposit.

7. RBI eases gold import norms; nod for select trading houses to procure from abroad : Under this scheme, an importer has to ensure that at least 20 per cent of every lot of imported gold is exclusively made available for export purpose

.8. RBI nod for bank loan tenure upto 10 years to boost export industry. In a majorboost for the export industry, the RBI has allowed banks to provide loans with tenures of up to 10 years.These loans willhelp exporters in ensuring capital flows to fulfill long‐term contracts. Existing norms allow banks to give loans for up toone year only.

9. The Reserve Bank of India said banks should make all new ATMs installed fromJuly 1, 2014 as “talking ATMs” with Braille keypads

.10. Raghuram Rajan, the Governor of the Reserve Bank of India (RBI) announced that plastic currency notes will be launched in2015 after field trials.

11. RBI panel headed by ex‐Chairman of Axis Bank, P. J. Nayak recommend for diluting govt stake in public sector banks to below 50 %. The government should cut its holding in public sector banks to under 50 per cent, a Reserve Bank of India(RBI) panel report on Tuesday said, criticising the way in which the lenders are now being governed.

12. Reserve Bank of India granted banking licences to infrastructure financing firm IDFC and microfinance institution Bandhan from among 25 applicants that included corporate heavyweights ADAG Group, Aditya Birla Group and Bajaj Group.Note: The in‐principle approval granted (to the two entities) will be valid for a period of 18 months during which the applicants have to comply with the requirements under the guidelines and fulfil the other conditions as may be stipulated by the RBI.Chandra Shekhar Ghosh: CMD of Bandhan financial servicesDr. Rajiv B. Lall: Chairman of IDFC – Infrastructure Finance Company.

13. Reserve Bank of India (RBI) issued the guidelines to allow the minors of age above 10 years to independently open and operate savings bank accounts and use other facilities like ATM and cheque books.
14. RBI extended the timeline for full implementation of Basel III norms 31 March 2019 instead of 31 March 2018

.15. RBI in consultation with Union Government on 1 April 2014 capped the Ways and Means Advances (WMA) limitsfor the first half of the new financial year 2014‐15 (April 2014‐Sep 2014) at 35000 crore rupees.Note: The interest rate on WMA/overdraftwill be based on: a) WMA: Repo Rate. b) Overdraft: Two percent above the Repo Rate

16. RBI extends date of exchanging pre‐2005 notes to Jan 1, 2015Note: The Reserve Bank has further clarified that the public can continue to freely use these notes for any transaction. RBI has said that people canunhesitatingly receive these notes in payment, as all such notes continue to remain legal tender.

17. Reserve Bank of India (RBI) hiked the trade related remittance limit from 2 lakh rupees to 5 lakh rupees per transaction with immediate effect. It also increased the number of transaction handled by exchange houses.

18. KC Chakrabarty, Deputy Governor, Reserve Bank of India, has quit three months ahead of completion of his term.

19. RBI pegged 2014‐15 GDP growth at a central estimate of 5.5 percent.

20. Economic growth for 2014‐15 expected at 5.5 pc.

21. CAD expected to come down to 2 pc of GDP in 2014‐15.

22. Retail inflation expected to be under 6pc in 2014.

23. RBI panel headed by RBI Deputy Governor Anand Sinha has recommended bringing a benchmark floating interest rate, especially for home loans. Panel also suggested Indian Banks Base Rate (IBBR).

24. The deadline for switching to new format bank cheques under the Cheque Truncation System (CTS) ended on 30 April 2014.

25. RBI scraps 26% cap on interest rate for MFIs: (RBI) removed 26 per cent cap on the interest rate that can be charged by a microfinance company to its borrowers. MFI is allowed to charge interest rate equal to 2.75 times the average of the base rates of the top five commercial banks.

26. RBI permits 4 non‐bank entities to setup white label ATMs: The Reserve Bank has issued ‘certificate of authorisation’ tofour non‐bank entities:(1) Tata Communications Payment Solutions(2) Muthoot Finance,(3) Prizm Payment Services and(4) Vakrangee Ltd. , to set up White LabelATMs (WLAs) in the country.Note: Most of the ATMs belong to banks, but the cash dispensing machines which are owned and operated by non‐banking companies are called White Label ATMs.

27. RBI permits Srei to roll out white labelATMs: Srei Infrastructure Finance is planning to start roll‐out of its while label ATMs (WLAs) between July and September starting with a pilot of 200 Tier‐III towns in Uttar Pradesh and Bihar

.28. The expert committee headed by UrjitR. Patel, Deputy Governor of the Reserve Bank of India examine the current monetary policy framework of the Reserve Bank of India (RBI) has suggested that the apex bank should adopt the new CPI (consumer price index) as the measure of the nominal anchor for policy communication. The nominal anchor or the target for inflation should be set at 4 per cent with a band of+/‐ 2 per cent around it.

29. Ex‐Chairman of Axis Bank, P. J. Nayak is the head of the expert panel to review bank boards’ governance. The panel will review the RBI's regulatory guidelines on ownership of banks and representation in their boards, among other things.

30. The Reserve Bank of India has raised the Foreign Institutional Investors, FIIs investment limit in the Power Grid Corporation to 30 per cent of its paid up capital, under the Portfolio Investment Scheme.

31. The Reserve Bank of India (RBI) has doubled the sub‐limit for foreign investment in government securities, to USD 10 billion by long‐term investors. RBI's move is aimed to attract more foreign funds. Investors like sovereign wealth funds (SWFs), multilateral agencies, insurance funds, pension fundsand foreign central banks are considered as long term investors.

32. RBI relaxes gold loan norms: The Reserve Bank of India has allowed Non‐Banking Financial Companies, NBFCs to lend up to 75 per cent of the value of gold. It was 60 per cent earlier.

33. RBI panel (headed by banker Nachiket Mor) has suggested setting up of specialised banks to cater to low income households to ensure that all citizens have bank accounts by 2016.

34. The RBI‐appointed committee on financial inclusion has recommended that the central bank should set up specialised banks called Payments Bank to provide payment services and deposit products to small businesses and low‐income households. The committee, headed by Nachiket Mor, said that since the new bank will be dealing with poor customers, such a bank must be allowed to accept a maximum deposit of not more than Rs 50,000.

35. The Reserve Bank of India (RBI) had set up a panel under executive director Deepak Mohanty to review the current system of data collection, dissemination and data management processes in the central bank and improve the existing mechanism.

Budget Proposes Ways To Kill Banks

Budget Proposal 2014 :--The Narendra Modi government will ask banks to open 200 million accounts in a year from this Independence Day.

The Sampoorn Vittiya Samaveshan Mission aims not just to open bank accounts but to provide people access to other financial services like insurance and pension.Rs 5,000: Instant overdraft for account holders completing a financial literacy programme

Some Important Links on the same issue are given below

As per provisions made in the budget and guidelines to be issued from Government of India ,Public sector banks  will have to open 20 crore accounts  and each account would be sanctioned an overdraft of Rs. 5000.00 without any discreet inquiry about credit history of the account holder cum borrower.

This way, it is quite clear that Public sector banks would end up lending Rs. 100000.00 crores (one lac crore ) to account holders and these forced borrowers will be without any credit history. Moreover, as the accounts of different PSBs are not linked, there is every possibility of account holders opening accounts in different banks and thus getting overdraft from that banks as well.

Its also reported that department of financial services has already budgeted for defaults. Government of India may subsidise banks to some extent but may not stop promotion of bad culture in lending. It will wondering in dreamland if banker or for that matter GOI expect recovery of such loans which will be considered by poor account openers as charity from GOI , not loan from bank.

 Against the above backdrop , it is my question why RBI and IBA do not come in defence of PSBs and protest against any such move which will ultimately result in creation of fresh NPAs for which all the onus will be passed on the bankers for no fault of theirs. Not only this, this year , GOI has tis year suggested a limit of Rs.5000 for all individuals , next year they may ask for increasing the overdraft limit from Rs.5000 to Rs.10000 or Rs.25000 and even more for political advantage. Poor villagers will take it a gift from GOI but banks will suffer the real loss and ultimately bank staff will suffer .

Banks are usually advised to disburse loans as Charity by organising Loan camps and when these loans become bad, same government suggest for waiver of loan or settle these bad loans by offering heavy discounts. All these acts contribute in not only escalation of bad debts but kills the repayment culture and promote bribery culture in bank staff . It is therefore desirable to name these banks as public sector Charity Bank.

Its not hidden from any one that bankers are not legally equipped to recover loans from those whose property is charged in favour of banks, the how come the banks would be able to recover an overdraft given without any credit history and security?

When Bank Management find it difficult to recover the recalcitrant borrowers and wilful defaulters even if they do possess prime and collateral security, how these poor bankers will be in a position to recover small defaulters of Rs.5000/ who have nothing to repay. Obviously such plan as mooted out in above paragraph will prove to be death bell for already ailing banks. GOI may extend some financial help this year or later, but the cannot modify the bad culture they have created and are thus creating in banks to add fuel to fire.

 Isn't it really ironical that bankers are being denied a respectable rise in salaries because of huge NPAs and simultaneously something dangerous is under process to create more NPAs?

It is politicians who build pressure for reckless and careless lending . And when the account goes bad, they do not hesitate in blaming bank officials. They build pressure for lending in agriculture and priority sector, infrastructure projects and some other time for some other projects. Banks in general are having huge volume of Non Performing Assets related to loans made for infra structure projects, to power companies, to electricity distribution companies etc ( bulk poison ) and for government sponsored schemes (slow poison
 
When bad assets increase, profitability falls and when profit falls there is erosion of capital. When this happens , government blames bankers and then GOI through IBA  shamelessly deny respectable wage hike to bank staff. It means politicians commit crime and bankers are punished for none of their fault.

How long Public sector banks s would be treated as political tool that too at the cost of  banks and bank staff?

 Why RBI is silent spectator of this mishappenings and ill-motivated proposals of the government?

Why IBA the forum of Chiefs f public sector bank  has become inactive and ineffective and why United Forum of Banks Union (UFBU) are playing in the hands of Ministers and IBA ?

If such brainless and dangerous proposals are put in force, the future of wage hike will further be jeopardised.

Are bank staff in general are also watching the situation with folded hands and praying GOD for their welfare?

Also read Following Links

Evil Culture in Banks

How to Cure Sick Banks

Are Bankers Afraid Of CBI and CVC


Banks To Open 20 crore New Accounts This Year


 

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 !!

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.