Bank Staff Payscale By Pannvalan

DIFFERENCE BETWEEN WHAT WE ASPIRE FOR AND WHAT WE DESERVE

Preface

Usually, there will be a difference between what we aspire for and what we deserve.  It is human nature to expect and demand more from others, than one what is logically, morally and legally entitled to. I hope everyone agrees on this point.  But, it is quite surprising and shocking that in case of bankers’ wage revision, just the opposite happens.  Yes, we aspire for less than what we deserve. I will explain further how it is true and correct.

Compare the past and the present

If we compare the past, especially the scenario prevailing before 1996 (when 5^th CPC pay scales were implemented for the central government staff and also the staff of most of the state governments) and the present condition of bankers, one can notice the following.

1. The aggregate business of banks in India has increased from Rs.598,419 crores in 1995 to Rs.132,57,780 crores (a whopping increase of 21.15 times).
2. Net Profit of all banks has increased from Rs. 2,322 Crores in 1994-95 to Rs.91,200 crores in 2012-13 (recording an increase of 38.27 times).
3. The number of bank branches has increased from 62,367 in 1995 to 109811 as on 31-12-2013, registering a phenomenal growth of 76%.
4. The number of products introduced by different banks has multiplied.
5. Number of bank employees increased from 997,601 as on 31-03-1995 to 11,75,149 as on 31-03-2012.  In percentage terms, this represents a growth of 17.8%.  However, we shall not forget the fact that only during this period all banks computerized their operations fully.  Yet, if we take into account the percentage increase in the most important parameters mentioned in Points No.1 to 3, the increase in staff strength during this period is very poor.
6. Because of non-recruitment/minimal recruitment of personnel during 1996–2008, the individual work load has increased manifold.  The huge exodus through VRS in 2001 worsened the situation further.
7. All banks vied with one another in getting bulk deposits at very high rates which brought down their NIM.  Similarly, lending large amounts below BMPLR to selective borrowers hit the profits of all banks.
8. Restructuring of a major portion of advances and burgeoning NPAs from 2008 onwards shook all banks, regardless of their size.
9. Because of greater emphasis on fee based income, after NIM has shrunk, the banks started selling many other financial products like mutual funds, life and non-life insurance policies, gold coins, credit cards, debit cards etc. thus losing their main focus on core banking activities. 
10. Banks started doing all others’ work during this period.  For instance, collection of direct taxes, acceptance of Public Provident Fund and New Pension Scheme contributions from the general public, payment of corporate dividends, payment of salaries of staff of companies and firms, collection of other banks/financial institutions’ loan instalments through post-dated cheques and ECS, payment of government/railways/municipal corporation pension etc.
11. Computerisation of major banking activities took place in the early part of the last decade.  It was followed by implementing ‘Core Banking Solutions’ in banks some 6 years ago.  But even though bank staff have been relieved from the drudgery of doing all routine work manually, their dependence on computers has become total.  Whenever any technical problems crop up, the staff remain helpless.  In spite of identifying the nature of the problems, where they lie and what their solutions are, bank staff today are handicapped and have to necessarily look for outside help.  Much of their precious time is wasted on trouble shooting operations almost every day.
12. Despite installation of a large number of ATMs and offering Debit Cards, Internet Banking, RTGS and NEFT, Tele Banking and Mobile Banking to customers, the crowd at the bank premises has not come down considerably, as people still believe in ‘face to face banking’ rather than dealing with inanimate machines.  The confidence level of the general public while conducting ATM and online transactions remains surprisingly low, regardless of their literacy level.
13. While the risks of the bank staff in general and officers in particular have gone up, the bank managements do not show empathy and want to punish them even for the trivial mistakes they make and their wrong decisions that are in the nature of error of commercial judgement.

Where we stand today?

Until early 1990s, banking industry was at the top (second, I remember), in terms of staff benefits (both monetary and non-monetary).  But today, the condition of bank staff in public sector banks is abysmally low and quite pathetic. Major reasons for this degradation are:

1. Selfish and immoral leadership in the major Trade Unions has weakened the Trade Union movement itself, even though the ordinary members have maintained the same level of their unity, solidarity and fighting spirit that they possessed 30 years ago, without any diminution in them.
2. Entry of many more aggressive players in the market, with better technology, clearer focus and more successful strategies has made serious inroads into the traditional bastions of the public sector banks. 
3. Public sector banks could no longer take their long term customers for granted.  In case of any dissatisfaction, a customer has got a wider choice and he will not hesitate to switch to another bank.
4. Unhelpful policies of the government at the centre during the last 2 decades have done immeasurable harm and injustice to the public sector banks, as they have always supported the private players openly, thereby diluting the role and retarding the growth and development of all public sector banks.
5. The anger and displeasure exhibited by the general public, the media and also other sections of the salaried class towards the bank staff still remain.  This is the bankers’ own creation.  They earned the ill-will, jealousy and enmity of all other sections of the society, by displaying arrogant, discourteous, irresponsible and indifferent behaviour during 1969 to 1999.  I do not blame everyone who worked during this period.  But, at least 30% of bank staff were like that and the remaining 70% were mute spectators to the atrocities committed by such bad elements within their folks.
6. Today, staff working in all the government departments/institutions and other public sector undertakings (both centre and states owned) have surpassed us, leaving us far behind. 

How to correct the historical wrongs?

We must first know what wrongs were committed in the past. 

1. The first Bipartite Settlement was signed in 1966.  Going by the practice adopted then, the 5^th BPS must have been implemented from 1982.  But, our 5^th BPS could be signed only in 1989 and it took effect from 1987 onwards.  Thus, we lost 5 years, without any wage revision, during this period.
2. In the 5^th BPS, the duration of one wage settlement was formally raised to 5 years (from 4 years), without any valid justification.  This way also, we lost one more wage revision during the period from 1987 to 2007.
3. Before 6^th CPC (which took effect from 2006), 50% of the D.A. of the central government staff was merged with their basic pay and on the basic pay so merged, 40% additional increase was given and the revised basic pay became 210% of the previous basic pay before D.A. merger.
4. Whereas for the bank staff, a mere 45% increase in basic pay was granted in 9^th BPS.
5. Thus, the average rate of increase in basic pay per year was 21% for central government staff and it was a paltry 9% for bank staff during the period from 1996 to 2012.
6. In addition, for central government staff, 5 day week became a reality even before 5^th CPC.
7. During the past 10 years, the working hours of bank staff, more particularly the officers, got informally extended to anything between 9 to 12 hours a day, without any additional compensation.
8. Bank officers are required to work on many Sundays and official holidays.  For this also, no additional compensation is given.
9. Worst of all, no one ever bothers about the physical and mental health of bank personnel.

Now, how to correct these historical wrongs?  It’s a common knowledge that most of the bank officers are unable to avail the full quota of their leave as per their entitlement.  It can be seen that many officers could not proceed on leave, even when they are sick.  In return, what do they get in return?

It will be foolish to ask for compensatory off, for working on Sundays and other holidays, when we are unable to exhaust our eligible leave fully, because of which unutilised CL and PL lapse, at periodical intervals.  Lapsed leave is one big source of savings for the bank managements.

Therefore, we must compel the bank managements to give some decent compensation for working extra hours (over and above 8 hours on normal working days and 5 hours on Saturdays) and for working on Sundays and other holidays.  That will be a prudent demand.

What is the gap between what we aspire for and what we deserve?

Even if we compare our present pay scales with 6^th CPC pay scales implemented in 2006, our compensation is 40% lower.  Now, when the 7^th CPC recommendations are round the corner, I’m afraid that we may not even reach the level of 6^th CPC, after our 10^th BPS.  I shudder to think of our predicament after 01-01-2016, when 7^th CPC is due.

So, there is nothing wrong if I say that we deserve a minimum of 100% increase in our present scales.  But, certainly we can aspire for 50% increase.  We may keep 30% increase as the rock bottom level.

Remember, I have excluded pension and other benefits from the purview of both the government and the banking sector.  Only the monthly pay as reflected in the monthly pay slips is being compared here.

I can say with 100% conviction and certainty that if we take into account the educational qualifications, intelligence, problem solving ability, communication skills, corruption level, risks borne and the number of transfers in one’s career as the yardsticks, an average bank staff is far ahead of his counterpart in the government.  If number of hours worked per day and weekly holidays enjoyed are the simple criteria, then we may have to receive 150% of the salaries being paid to the government staff.

Then why shall we not demand a better package this time?

In the present circumstances, what best we can achieve?

Even if we get 6^th CPC wages in this settlement, it will be deemed a wonder.  But, I do not think the government will agree for our getting 6^th CPC wages in 10^th BPS.  So, in my assessment, even 25% increase at this point will be a big boon.  Anything beyond this level will only be a bonus for bank staff.

What is the time limit?

If we apply tremendous pressure on the UFBU leadership and the government from now on till the general elections (for the parliament), we may anticipate our wage revision to fructify before November, 2014.  If the government is helpful, sympathetic and co-operative, we may receive our revised wages before June, 2014 also.   But, judging by the seriousness shown by both the negotiating parties so far, the second possibility appears remote and only a miracle.

Conclusion

Before going to the future rounds of negotiations, our leaders must make their standpoint clear to all.  They shall not go to the negotiating table, only to listen what the IBA says.  They must do their homework properly. Apart from strike action, strict ‘work to rule’ may be announced.  If the IBA and the government are belittling us by offering pittance as wage increase, we must not hesitate to knock the doors of courts for justice.  The present UFBU leadership must realise that their credibility is too low today and they must demonstrate their goodwill and fire power in full measure simultaneously, in order to win back the confidence of all the lower cadre members.

Date: 16-01-2014                                                                                                              -  pannvalan