AIBRF Circular No. 2014/96 Dated 14.06.2014
BIPARTITE TALK OF 13-06-2014
A) We are happy to inform you that in the bipartite talk of 14-06-2014 the retiree issues were discussed and IBA informed as under:-
(1) IBA is favourably inclined to consider 100 percent
Dearness Allowance to all retirees including pre-2002 retirees
and have written to the government for approval. Approval is awaited.
(2) As regards improvement in family pension, IBA is favourably
inclined to consider and will recom- mend to the government
for approval after studying cost implications.
(3) As regards updation exercise for the past retirees, IBA is
apprehensive about it in view of huge cost involved in it.
inclined to consider and will recom- mend to the government
for approval after studying cost implications.
(3) As regards updation exercise for the past retirees, IBA is
apprehensive about it in view of huge cost involved in it.
We feel it is big move forward on retiree issues. However we have to be vigil till our all demands are achieved in this settlement. We convey our thanks to UFBU leadership for taking the retiree forward..
UFBU Circular No. 24
BIPARTITE DISCUSSIONS WITH IBA ON WAGE REVISION :
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.
B) 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.
C) 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. IBAexpressed 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.
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.
B) 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.
C) 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. IBAexpressed 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.
D) NUBE Circular 5 of 2014 dated 14-06-14 states
The meeting of 13th June 2014 turned to be yet another futile, symbolic meeting with the yawning gulf separating policy pronouncements from the ground reality. Thus the 10th 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. 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 of Pay Slip components of the wage bill which would amount to Rs.3,465 crores and 4. which would be exclusive of other costs on retirement benefits, LFC, hospitalization expenses, 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% 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.
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.3465croresonly. 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 22-2-2013. 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.
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 7th Pay Commission.
E) 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 pre-2002 retired Bank employees for 100% DA. As regards updation of pension, IBA has outlined it involves substantial financial burden to the Banks. This means in all sectors, including Central and State Government, 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 onceagain reiterated 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. Needless to underscore here that proposal agreed between Unions and IBA is pending with Government for considerable period of time, therefore brooks no further delay.
F) 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.
G) 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 10th Bipartite Wage Revisions from the unyielding hands, no holds barred.
H) Pension Updation: The relevance of the demand for Pension updation became more poignant in the light of the acceptance of one-rank one pension principle for retired defence Personnel announced in the recent interim budget of the GOI.
We prepared a note on our demand for pension updation and submitted it to Hon'ble Sri. P. Chidambaram, Finance Minister on 24-02-14 wherein we sought immediate implementation of pension updation for Bank pensioners also. A subsequent development is the following one.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.3465croresonly. 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 22-2-2013. 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.
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 7th Pay Commission.
E) 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 pre-2002 retired Bank employees for 100% DA. As regards updation of pension, IBA has outlined it involves substantial financial burden to the Banks. This means in all sectors, including Central and State Government, 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 onceagain reiterated 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. Needless to underscore here that proposal agreed between Unions and IBA is pending with Government for considerable period of time, therefore brooks no further delay.
F) 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.
G) 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 10th Bipartite Wage Revisions from the unyielding hands, no holds barred.
H) Pension Updation: The relevance of the demand for Pension updation became more poignant in the light of the acceptance of one-rank one pension principle for retired defence Personnel announced in the recent interim budget of the GOI.
Government gives in-principle agreement to implement Pension updation in Reserve Bank of India.
The following significant editorial has appeared in Reserve Bank Retired Employees' Association Mumbai Bulletin, Retirees' HITGUJ ISSUE DATED !5th APRIL 2014.
" At long last, Government accorded in principle approval for updation of pension with certain conditonalities which is a positive and encouraging development. The proposals are as under:
1. Pension updation once in 10 years as in Government,
2. Pension to be computed on pay and grade pay as in Government (this will require amendment to Pension Regulations),
3. Revision of pay scales once in 10 years,
4. All perks to be rationalised,
5. Pension option to be opened alongside.
This is a package
The Forum expressed their reservations and apprehensions. There is at present stalemate. Our Association sought audience with Shri R L Das, CGM, HRDM, for an update, on 19-03-2014. It emerged from the discussions that Govt. has accepted in principle that there is need for updation in RBI and the pension is expected to be aligned with the revision of pay scales effective from 1-11-2012 which is expected to result in same rank same pension. This information will be simulated. CGM also indicated that RBI can act within the provisions of RBI ACT, to take care of any misalignment with the Govt. salary and the Banking industry. CGM also told that the GOVERNOR was instrumental in breaking the ice on updation which was eluding for 6 long years. CGM also assured that representatives of our Association will be invited for discussions on matters concerning pensioners / retirees whenever occasion arises” AIBRF in one of its recent communication has stated "We have come to know from unconfirmed sources that Labour Minister and Department of Personnel in Home Ministry have prepared detailed note on pension updation in financial sector to be placed before the new government.
I) In this connection, we also invite reference to the memorandum submitted by us in November 2013 to Hon'ble Shri.V.Narayanasamy, then Minister of State Prime Minister office Ministry of Personnel, Public Grievancesand Pensions,GovernmentofIndia and which was receivedon 09-12-13 and registered as a grievance by the Ministry of Personnel, Public Grievances and Pensions, Dept of Pension & Pensioners' Welfare. Our representation was forwarded to Sri. S.C.Das, Deputy Secretary, Dept. of Financial Services (Banking Division) on 17-12-13 requesting him to have the representation examined and the grievance redressed within the time frame of 60 days. Thus you will find that all the above developments are inter connected and our organization has played a very significant role in making these things happen.
The third meeting of our Central Committee was held in Chennai on 19th April 2014. The Committee discussed about the various developments. The CC was appraised about SLP filed by our Association in Supreme Court of India and the in-principle agreement given by Govt for Pension updation in RBI. The Committee also discussed various organizational issues and chalked out various steps to strengthen our organization
Collections : R.B.KISHORE, VP, AIRIEF