What 9.5% Increase Speaks? Are Bank Staff Not Cheated ?

Fixed Match Results in Announcement of Single Digit Increase.   What is 9.5% Increase ?---
By Rajesh Goyal

 We have uploaded the small details about deferment of strike today (17th January 2014) in the afternoon.     After that we have received number of queries?   Now it is late night.   I tried to find out the answers for the same but no authentic details are available.    Broadly speaking, there are two types of queries:-

(a) Was it a fixed match?

(b) What is the meaning of 9.5% meaning?  How much it will translate into actual take home salary?

Frankly speaking, I too do not have much information.   However, as usual, we try to find out the details based on the inputs available through various sources and on net.  Some interesting facts have merged from our investigation based on various information available on internet.   Let me update our readers based on the details available through various sources :-

(a) Was it a fixed match ? 

 It is hard to get evidence to prove that it was a fixed match as it will be known only to IBA land core group of UFBU.   There is no doubt that it will be denied by the relevant parties, but the way the things have gone as per predictions, one feels that it was a fixed match.   I have a small insight which I would like to share with all our readers and they are free to draw their own conclusions.  

Was  IBA staff  well aware that they will be issuing a circular to Banks for deferment of strike on 17th January 2014 and they prepared the circular well in advance so that it can be sent to all the Banks after completion of the formality of a meeting between IBA and UFBU?   Today (i.e. 17th January, 2014), IBA on its website has uploaded a circular which has been sent to all banks.  The salient features of the said circular are :-

(i) The name of the file uploaded on IBA website is strikedeferred14012014.pdf   (The link at IBA website at the time of writing this article is as follows 

: http://iba.org.in/Documents/strikedeferred14012014.pdf). 

 Although some of you must have already downloaded the same, yet some others of you must also download it as it is likely that IBA may change the name of the link by tomorrow and union leaders may try to prove us wrong.   

Our readers must be aware that usually when we prepare a file under such a name,  the file name contains the date when it is prepared.   This files mentions the date as 14012014 i.e. 14th January, 2014, whereas circular is dated 17th January, 2014.   Was this circular prepared on 14th January, 2014 itself by IBA as they were aware that meeting dated 17th January 2014 is only a formalityand this circular should be sent immediately on the conclusion of the meeting

.

Thus a strong suspicion arises about the Match Fixing.  Some may say it is a conclusive evidence and IBA has made a blunder by preparing this circular in advance as it exposes the nexus of IBA and UFBU for a fixed match.   We leave it to our readers to draw the conclusions.

(ii) Are UFBU and Bankers Happy With This Announcement :    

IBA's above circular says "On being satisfied with the further improvement in offer in wage hike by IBA, the UFBU has decided to defer the strike scheduled on 20th & 21st January, 2014".   Thus UFBU is satisfied with the offer of 9.5%.  However, as per reported dated 16th Januayr, 2014,  published in Business Line, Mr  Murali said: “We are asking for a 30 per cent increase in the gross pay received by bank employees and officers".    As per report dated 17th January 2014 appearing in Business Line,  C. H. Venkatachalam, General-Secretary, All-India Bank Employees’ Association has told “We are satisfied with the outcome.  

IBA has agreed to complete the whole process of negotiations by June 2014. Therefore, all the programmes such as rallies, demonstrations, protests and strike till January 27 has been deferred,”   Thus, we can conclude the UFBU is more or less satisfied with the increase of 9.5% on Pay Slip components.  However, they will certainly press for minor increases here and there, and IBA may agree too for such minor adjustments / hikes.

(iii) What is meaning of 9.5% Incrase on PaySlip component ?    

This is still a mystery as nobody is sure whether IBA has clarified this in writing to UFBU.   I think UFBU should have issued the details today itself to clear the doubts.   But they seems to have kept quite and it has led to lot of rumors and different calculations.   With now clarity on DA merger and hike percentage, UFBU leaders can easily calculate the rough increase in the net take home salaries at least the beginning of each scale.     As I was going through various reports, 

 I found it interesting when  I came across the  report dated 16th January, 2014, of Business Line wherein  Mr Murali had rued "The IBA, which represents the managements of nationalised, private and foreign banks in the country, had offered only a 5 per cent rise in the ‘payslip component’ of salary.   

Actually, this will mean about 3 per cent of the gross pay.”    This will mean that 9.5% increase will result in about 6% increase of the gross pay?    With such a confusion, nobody is ready to commit as to what does 9.5% means?   Thus, in this age of internet, bankers are still groping as to what is the meaning of PaySlip increase and UFBU leaders are enjoying their silence. 

I hope soon UFBU and others will come out with clarifications on the points raised so that bankers do not feel cheated from all sides - Fixed match as well as lowest ever increase in 10th BPS.