How To Move After 12 August On Bipartite Settlement

HOW SHALL THE TENTH BIPARTITE SETTLEMENT PROCEED FURTHER?----By Pannvalan

It is very strange to see UFBU expressing happiness on IBA agreeing to treat 01-11-2012 as the date of effect of the fresh settlement.  By agreeing to this cut-off date, IBA has not shown any undue favour to us. They have merely conformed to the age old convention followed at the time of each of the earlier settlements.  Therefore, there is nothing to cheer about in this announcement.

As regards the merger of D.A. at 4440 points of ACIPI (Base: 1960=100), IBA has repeated what it had done in 9th BPS.  As against the UFBU’s demand for merger of D.A. as prevailing on 31-10-2012, IBA has cleverly reduced one year and offered to merge only D.A. that prevailed as on 31-10-2011. So, in this matter also, there is nothing to celebrate; on the contrary, it’s an injustice.  This be corrected either by advancing the reference date to 31-10-2012 or by increasing the proposed additional load suitably.

But, one can say with authority that our new Basic Pay cannot be below this level i.e.1.6015 times the existing pay, without additional load.  The extent of load is yet to be discussed and agreed upon.  The path before us is very rough and yet it may take some more months, before IBA and UFBU narrow down their differences and come to an understanding regarding the broad contours of the agreement.

Considering the present rate of inflation, future inflation and the anticipated salaries of central government staff after 7th CPC, it will be very fair and just for the bank staff to demand these.

1. The revised Basic Pay must be not less than 200% of the existing one.
2. Compensation for increase in AICPI in the form of D.A. must be not less than 0.15% each slab of 4 points in the 1960=100 series. It will be suicidal to agree for 0.10% and if there is any psychological barrier to accept 0.15%, then 0.14% increase for each slab may be insisted upon and achieved. 
3. I do not want even 0.12% increase for each slab. Please refer to my article on "Other Allowances" posted more than a year ago. You may also refer to my article on "Dearness Allowance paid to Central Government Staff and Bank Staff", posted recently.
4. If you see the wage revision of central government employees in the past, the revised scales are close to 300% (3 times) every time, in the 10 years cycle. In case of bankers, the revised scales are 150% (1.50 times) after revision once in 5 years. Thus in each cycle of 10 years, the revision amounts to 225% (2.25 times) for bank staff.  Which one is superior, 225% or 300% in 10 Years?
5. Precisely because of this reason, our wages have consistently come down relatively. Today, we have sunk to the bottom, from the top position we enjoyed 30 years ago.
6. HRA must be on a par with Central Government staff rates (varying from 10% to 30% of the revised basic pay).
7. Substantial improvement in pensions must be achieved. Same/Equal pension must be paid to all retirees, irrespective of their date of retirement.
8. By initiating the following steps, we can easily find necessary resources to meet all our demands, without any difficulty. There must be a time bound action plan for enforcing them.

1. Strengthen the recovery tools and legal mechanisms, quicken the process time and cut down the delays.
2. Make the CDR, OTS under Compromise route and Writing off more transparent, accessible to general public through voluntary disclosures and get them covered under RTI.
3. Publish the photographs of the defaulters in all national websites - respective lending banks/financial institutions, RBI, CIBIL, Rating Agencies, SEBI and MCA.
4. Stop lending further to the borrowers/institutions blacklisted.
5. Beyond certain amount of Real Account Liability (say, Rs.10.00 Crores), banks must be allowed to sell the properties mortgaged, after following due process of law, without the intervention of courts and without even resorting to action under SARFAESI Act. But, it must be ensured that Principles of Equity and Principles of Natural Justice are followed.
6. Social Banking shall not be thrust on the bankers beyond certain level. Adequate incentives and compensation must be given to the banks for lending under government schemes.
7. In case of massive loan waivers, banks must be compensated upfront (i.e. funds must be provided beforehand to the banks).

9. In future, the best strategy will be asking for merger of D.A. with the basic pay if and when either of these two happens first.

1. D.A. crosses 50% of the Basic Pay
2. 3 years period has elapsed from the expiry of the last settlement.

This will ensure that the staff are not affected by the undue delay in the next wage revision.  The banks also will be in a position to assess their liability on this score more realistically and no separate provision needs to be done for the purpose of wage revision that is due.

10. RBI, IBA and Ministry of Finance shall not interfere in the H.R. policies of individual banks. 
11. The nominees of RBI and MOF must be withdrawn from the banks' board, with immediate effect.
12. RBI shall not grant licences to big industrial houses to start new banks.

Date: 15-08-2013                                                                                                    V Subramanian