Shri Mahadevan writes:
"It is a well written write up which is worth being read by LIC Pensioners as well."
BANK RETIREES’ MOVEMENT IN
A WRITE UP
By B.G.Raithatha
I : BRIEF HISTORY
1. Retirees of most of the public sector banks started organizing in or around the year 1995. Introduction of Pension Scheme played a motivating role to form their Associations. Much before that, retired employees of State Bank of India India
bank retirees.
2. Availing special voluntary retirement schemes launched by the Banks during the years 2000-’01 by more than 1,00,000 employees and vast scale normal retirements on superannuation thereafter boosted up the movement. Present total strength of the bank retirees in our country is around 5,50,000.
II : ORGANIZATIONAL SET UP
4. Federation of State Bank of India Retired Employees’ Associations, an oldest organization of the bank retirees, has also approximate membership of 1,25,000/- and is functioning very well. Its affiliated Associations also derive membership from all cadres – ‘Chairman to Messengers’.
5. Retired Officers of Bank of Baroda
6. Officers retired from the fold of All India Bank Officers’ Confederation (AIBOC) have floated their retirees’ wings in several pockets in recent years.
7. Retirees of most of the Banks have State or Regional Associations at base level; which are affiliates of their All India Bank-wise Federations; ultimately connected to apex level Organizations of retirees of all Banks e.g. AIBRF.
8. In many areas there are State Federations / Committees or District Units of AIBRF (as it is here in Jabalpur
III : CRUCIAL ROLE BEING PLAYED BY AIBRF
9. Our Apex Organization – All India Bank Retirees’ Federation is playing a very crucial and leading role in the bank retirees’ movement of our country. The leaders of AIBRF have not left any stone unturned to high light and represent our demands at various levels viz. Government, IBA, UFBU and also to Public.
IV : LEADERSHIP OF BANK RETIREES’ MOVEMENT
10. In most of the Bank Retirees’ Organizations, the responsibility of Office Bearers are undertaken by retired Officers, as they possess better knowledge and organizing ability.
11. It is a matter of pleasure that some of the bank retirees’ organizations are led by the retired Executives of the Banks and they are leading the movement with their abundant ability.
12. The leaders who are retired from the fold of All India Bank Employees’ Association (AIBEA) are not found very active in retirees’ movement, since according to the policy of AIBEA, many of them are allowed to hold Officer Bearers’ posts in the Unions of working employees.
V : STRENGTHS AND WEAKNESSES OF THE RETIREES’
ORGANIZATIONS AND SUGGESTED REMEDIAL MEASURES
FOR IMPROVEMENTS
13. Function of most of the Bank Retirees’ Organizations are reasonably good. They are serving well for the causes of the retirees in their respective areas of operation. However, if we frankly make an overall assessment, the retirees’ movement has many infirmities as enumerated in following paragraphs. (Suggested remedial measures are shown in brackets).
14. Almost 50% of the retired bank employees are not organized – they are not members of any Association of Bank Retirees. (It is essential to undertake membership mobilization mission on priority basis. If each member of an Association decides to persuade enrolling at least one retiree in a year, strength of retirees’ organizations will be almost doubled in a year !!! )
15. When most of the Officers retired from AIBOC’s fold are now members and leaders of the retirees’ organizations affiliated to AIBRF, AIBOC’s decision to float retirees’ organizations was unwarranted. It creates confusion in the minds of the retired Officers, who were members of AIBOC while in service. (Officers retiring hereafter from the banks should be explained that in the bank retirees’ movement of our country, majority members and leaders are Ex. Members and leaders of AIBOC. Now all retirees are pensioners. There are no conflicting interests amongst various cadres of retirees, which were there while we were in service. AIBRF is an ideal organization of all cadres’ retirees).
16. Apex / National Level Retirees’ Organizations have not been able to establish unity to a satisfactory level inspite of very sincere efforts put in by AIBRF and some of the leaders of SBI Pensioners’ Federation to for such a co-ordination. (Recent joint representation by several bank retirees’ organizations to the Government and the Indian Banks’ Association for certain common issues is a good initiation to exhibit unity. The bond of unity should be fasten further fast. If unity is taken in a larger perceptive, we should co-ordinate with Retirees of Insurance and other Financial Sectors as well as with the Pensioners of Central and State Governments).
17. The Government and the Indian Banks’ Association have so far not recognized Bank Retirees’ Organizations. Most of the Banks are also not holding formal discussions with the Retirees’ Organizations. ((i) Political lobbying (ii) periodical agitation (as it was organized by AIBRF at Delhi before of a couple of months) and (iii) good rapport / liaison with the Unions / Associations of the serving workmen / officers will certainly go a long way for our formal reorganization. Unification / co-ordination among the various bank retirees’ organizations may also fasten the process of reorganization).
18. Most of the retirees’ organizations are working under acute financial crunch. (The remedies are - increase amount of membership subscriptions from new retirees joining our Associations, as they are getting handsome superannuation benefits. There should be regular appeals for generous donations to the Associations at periodical intervals to the members and well wishers whose wallets and hearts are big. Some of the Associations have established good traditions of sending birth day greeting cards to the members every year. Appeals for voluntary donations are also printed in the cards. Marriages of members’ children and grand children are other auspicious occasions, when we may expect good donations. We should not shy or hesitate to solicit fund for the organizations).
19. The ‘poor’ General Secretaries of most of the retirees’ Associations are doing Associations’ work from their homes and that too with very little infrastructure. It is very difficult to call other Office Bearers / Activists to homes of the General Secretaries to assist them. Ultimately the work suffers. (Vigorous endeavors are needed to mobilize funds for purchasing or at least for hiring offices and there should be certain minimum required office equipments viz. computers, scanners, printers, telephone, internet, etc. to make the Associations efficient and to keep pace with the time).
20. Ours is a movement of the retirees. Obviously, with growing age, leaders are more susceptible to illness / disability, thereby hampering activities of the organizations. Many leaders – even the General Secretaries of the Associations go to other states or countries for long term / permanent settlement. But continue on the posts. (If their illness or settlement elsewhere is permanent / very long term, they should gracefully vacate the chairs for others who are able to run and run the organizations. If we look around, certainly there will be at least few recently retired – ‘young’ officers / employees who have got caliber and inclination to take responsibility of leading the organizations).
21. Several Bank Retirees’ Associations are practically doing more cultural / religious / social activities rather than taking proper care of or concentrating on the pensioners’ genuine grievances with the Banks, viz. (i) abnormal delay in getting timely retirement dues (ii) medical assistance, etc. or (iii) errors and improvements therein as well as (iv) improper treatment meted out to them by the Bank’s staff in service. In such a situation, time and energy of the leadership and fund of the organizations are drained for the activities other than those manifested in the constitution of the Associations. (In a sense, doing such cultural / religions / social activities may be better. But the pensioners’ organizations should not undertake those tasks. If some leaders have more interest in those more noble activities, they should find / build some other platform separately to carry out those religions / cultural / social activities and relinquish the leadership of the Pensioners’ Associations which are established with sole objectives to take care of the pensioners’ problems at the bank and the industry level. To repeat in nutshell, do not allow to convert your Pensioners’ Associations in to Social / Cultural / Religions Organizations).
22. Several members – particularly retired officers ask the Retirees’ Associations to take up their unsettled issues of their service period viz. non payment of increments, traveling bills, punishment inflicted in domestic inquiries, etc. (We should frankly tell them that in all fairness, for such problems, they should approach their Associations / Unions to which they belong while in service. Taking up such issues by us will be very difficult, as our organizations are working under various constrains and limitations).
23. Members of several bank retirees’ organizations are complaining that they do not receive regular feed back / information from their Associations. (Publishing / issuing periodical circulars / bulletins and sending the same free of cost to the door steps of the members is the remedy. Due care should be taken to publish only reliable / authenticated information in the circulars / bulletins instead of becoming instrumental in spreading any rumor. Some of the bulletins published by Pensioners’ Associations publish articles on the subjects like health, philosophy, religion and / or printing jokes / poems, etc. There are plenty of other news papers / magazines which publish material on such subjects. Members may purchase and read the same if interested in those matters. It does not fall within our purview to provide such ‘external’ materials. If we do not have enough material in the matters of direct concern to retired employees, it will be better to cut size or reduce pages of the bulletins or to skip certain issues of the bulletin instead of printing irrelevant matters ).
24. In nutshell, retirees’ movement should not be carried out in a casual manner. Its importance should be understood properly by the members and more particularly by the leaders and, where ever necessary and possible, a professional touch should be adopted in the functioning.
VI : VITAL ISSUES / PROBLEMS CONCERNING BANK RETIREES
25. Up-datation / Revision of Pension.
i. Pension is not up-dated / not revised since introduction of the Pension Scheme in public sector banks in the year 1993, though three salary revisions have taken place thereafter. Consequently there are vast disparities in pension of old and new retirees. Central Government is revising / up-dating pension of its employees atleast once in 10 years and giving almost equal percentage rise in pension, which is given in salary to the employees in service. There are certain other amendments also done for the benefits of the Central Government Pensioners viz. increased percentage of pension after the age of 80+, family pension to widowed / divorced / judicially separated daughters irrespective of her age, etc. The employees retiring from the Public Sector Banks largely owned by the Government of India
ii. It seems that for pensioners of Reserve Bank of India Bombay
iii. In State Bank of India (SBI), though the pension is a third retirement benefit, owing to certain ceiling on maximum amount of pension, the officers retired from higher ranks are getting pension at the rates of 30/35% instead of full 50%. On this issue and for up-dating pension, a writ petition filed by SBI Pensioners in Supreme Court is transferred to Delhi
iv. In a much debated case of N. Pradeepkumar, a retired Officer of Bank of India
v. The issue of pension up-dation is there in the Charter of Demands of UFBU for 10th BP Settlement. However, while initial discussions took place, the Indian Banks’ Association expressed its difficulty to accede to the demand because of the cost factor. Anyhow, we have a ray of hope to get pension up-dation in a limited shape in 10th BP Settlement.
vi. If nothing is done in the industry level negotiations in this matter, the bank retirees will have to look to legal remedies, which are not properly and fully explored for this issue by anybody up-till-now.
26. 100% neutralization of dearness relief to pensioners retired prior to 1st
November, 2002
i. Bank Employees retired prior to 1st November, 2002 are getting dearness relief at tapering rates and those retired thereafter are getting 100% neutralization of dearness relief.
ii. Retirees of Canara Bank, Indian Overseas Bank, etc., after getting an adverse judgment from the Division Bench of Madras
iii. However, after the afore-said verdict by the Division Bench, there is an important favorable development. Reserve Bank of India
iv. In the meantime, during on-going Bipartite Talks, the Indian Banks’ Association (IBA) recently informed the United Forum of Bank Unions (UFBU) that the IBA is convinced with the genuineness of the issue and the matter is recommended to the Government for favorable consideration.
v. Ofcourse, most probably the anomaly will be removed as a part of the 10th B.P. Settlement – not before that and it will be with prospective effect. Therefore, we should not expect any retrospective effect or arrears.
vi. If the demand of 100% neutralization of dearness relief is ultimately acceded to, the pensioners retired from various cadres prior to 1st November, 2002 will get approximate monthly rise in their gross pension as under.
Category
|
Approximately Monthly increase in gross pension
Rs.
|
Sub Staff
|
-Nil-, because they are already getting 100% neutralization
|
Clerical Staff
|
500 to 1,300
|
Officer – Scale : I
|
2,000
|
- Scale : II
|
3,000
|
- Scale : III
|
4,000
|
- Scale : IV
|
5,000
|
- Scale : V
|
6,000
|
- Scale : VI
|
7,000
|
- Scale : VII
|
8,000
|
27. Family Pension
Family Pensions of deceased bank employees are worked out at tapering rates (30%, 20% & 15%) of last drawn basic salary of the employees. In most of the cases of officers and clerical staff, practically it comes to 15%. The Central Government and Reserve Bank of India
28. Pension Option to left over retirees
Compulsorily retired and resigned employees are still not allowed pension options. Recently the Supreme Court has ruled in cases against Andhra Bank that compulsorily retired employees are entitled to pension option. Resigned employees are agitating in various High Courts for the purpose – not yet succeeded.
29. Reimbursement of Medical Expenses
Obviously the necessity of medical treatments and increasing cost thereof are causing concerns for the elderly people like us. Different types of schemes for reimbursement of medical expenses to retirees are in vogue in most of the Public Sector Banks. But it is inadequate and it is paid from Welfare Funds. Therefore, it largely depends on Banks’ net profits, allocation of funds for welfare schemes and policies evolved in consultation with the Unions / Associations of serving Employees / Officers. Most of the Banks neither are neither consulting Retirees’ Organizations nor are their views considered for the purpose. Few Banks, which are unable to allocate to the welfare fund because of meager or no profit, discontinue the scheme. Therefore the retirees’ legitimate demands are (i) to de-link it from profit / welfare fund (ii) pay it to the debit of profit & loss accounts of the Banks and (iii) consult the Retirees’ Organizations to work out the modalities.
IBA has put forward a proposal before UFBU to make tie-up with Insurance Companies for reimbursement of medical expenses of employees in service and retired.
VII : ON-GOING NEGOTIATIONS FOR 10TH BP SETTLEMENT
30. Discussions at the industry level are going on, but at a protracted and slow pace. Bank Retirees’ issues are properly placed in the Charters of Demands submitted by the Workmen Unions and Officers’ Associations. UFBU seems to be serious to get various improvements in pension. At the very commencement of the negotiations for 10th BP Settlement, it was agreed between UFBU & IBA that separate percentage of the total monetary load would be earmarked for improvements in pension; though the percentage for retirees are not yet decided or discussed. Let us be optimist and wait patiently for outcome of the discussions. But, to be realistic, owing to (i) increasing Non Performing Assets and consequential adverse impact on profitability of the Banks and (ii) reducing striking capacities of the working staff, we should not expect too much for pensioners in 10th B.P.Agreement.
VIII : ISSUES TO BE DEALT WITH BY THE BASE ASSOCIATIONS WORKING AT THE GRASS ROOT LEVELS
31. Industry level issues will be taken care of by UFBU and the National Level Organizations of Retirees. Base level Associations like yours are supposed to concentrate more on advising / guiding / helping the retired employees for their individual grievances with their Bank managements. There is a wrong notion that the Retirees’ Associations can not do much, because now their members and leaders are teeth-less tigers. It is our experiences that though we have no teeth (striking capacity), if we can make our gums stronger, we can bite and if necessary may even chew those in command and responsible for resolving the bank retirees’ issues. First represent properly with reasonable politeness. But if the problems are not resolved within reasonable time, please do not hesitate to agitate and adopt aggressive approach. Meet and / or write to the management to present our grievances very firmly. Favorable outcomes are bound to come. Now the management has also lost their teeth to bite us. We have neither fear of charge sheets and transfers nor temptation of promotions and postings.
32. Many of the long pending individual issues of the members are settled promptly after submitting properly drafted representations directly to the Banks’ CMDs. in their personal names with copies to the concerned Zonal / Regional Offices and the Branches.
33. Filing applications under the Right to Information Act (RTI) is another important weapon in our armory. Apparently RTI looks like a small pen knife; but those who have used it say that many times it has worked like a sword. The procedure for filing RTI Application and format of Application are given in the Annexure ‘A’ (i) & (ii) to this ‘Write Up’. It is a very useful contribution to this ‘Write Up’ by Shri J.P.Shah, a retired Senior Manager, Union Bank of India , settled at Junagadh (in Gujarat ). He is emerged as a renowned RTI & Consumer Activist at the National Level, advising and helping the people absolutely honorary – without charging any fee. For approaching him, better mode is by e-mail on his E-mail ID < jpshah50@yahoo.co.in >.
34. For non payment or less payment of Gratuity, the Payment of Gratuity Act, 1972 is inexpensive and easy remedy. It is not essential to engage any Advocate. An Office Bearers or even an ordinary member of the Association may represent the members’ cases before the Controlling Authority under the Payment of Gratuity Act, 1972 i.e. the Assistant Labor Commissioner (Central). It is considered a beneficial legislation and most of the decisions are in favor of the retired employees. The aggrieved member should give an authority letter (on plain paper) to the Office Bearer / Member who has to represent / plead his / her case.
35. For pension related issues (i) the Consumer Forums functioning under the Consumer Protection Act,1986 and (ii) ‘Lok Adalats’ established according to the Legal Services Authorities Act, 1987 are offering inexpensive and simple process to pensioners for litigations. It is not necessary to engage Advocates. Any Office Bearer or a knowledgeable member of the Association may appear and plead the pensioners’ cases in these courts. Ofcourse, for this purpose, the concerned pensioner should give a power of attorney to the person representing him / her.
36. All the useful books on the subjects of Gratuity and Pension should be invariably kept in the libraries of your Associations, so as to enable you and your members to refer the same wherever necessary.
IX : LITIGATION BY BANKS:
37. It is our bitter experience that even if a legal issue very is very well decided by the Supreme Court, other similarly situated pensioners are compelled to seek legal remedies afresh. Some kind National Litigation Policy was recommended, but not yet accepted by the Government. Ofcourse, in this context following recent citations of judiciary are worth reading.
In the case of Gurgaon Gramin Bank Vs Smt Khazani(Civil Appeal No. 6261 of 2012 @ Special Leave Petition (C) No. 8875/2010),the Hon’ble Apex Court has held:
“Number of litigations in our country is on the rise, for small and trivial matters, people and sometimes Central and State Governments and their instrumentalities Banks, nationalized or private, come to courts may be due to ego clash or to save the Officers’ skin. Judicial system is over-burdened, naturally causes delay in adjudication of disputes. On more than one occasion, this court has reminded the Central Government, State Governments and other instrumentalities as well as to the various banking institutions to take earnest efforts to resolve the disputes at their end. ”
Dismissing the Appeal filed by the Appellant Bank with costs amounting to Rs.10,000/-, the Hon’ble Apex Court
“Assuming that the bank is right, but once an authority like District Forum takes a view, the bank should graciously accept it rather than going in for further litigation and even to the level of Supreme Court. Driving poor ‘gramins’ to various litigative forums should be strongly deprecated because they have also to spend large amounts for conducting litigation. We condemn this type of practice, unless the stake is very high or the matter affects large number of persons or affects a general policy of the Bank which has far reaching consequences”.
Echoing similar concern, the Hon’ble Supreme Court in a recent judgment pronounced in the case of Subroto Roy Sahara Vs Union of India [Writ Petition (Criminal) No. 57 of 2014] has observed:
“The Indian judicial system is grossly afflicted, with frivolous litigatios. Ways and means need to be evolved, to deter litigants from their compulsive obsession, towards senseless and ill-considered claims. One needs to keep in mind that in the process of litigation, there is an innocent sufferer on the other side of every irresponsible and senseless claim. He suffers long drawn anxious periods of nervousness and restlessness, whilst the litigation is pending, without any fault on his part. He pays for the litigation, from out of his savings (or out of his borrowings), worrying that the other side may trick him into defeat, for no fault of his. He spends invaluable time briefing counsel and preparing them for his claim. Time which he should have spent at work, or with his family, is lost, for no fault of his. Should a litigant not be compensated for, what he has lost, for no fault?”
38. Annexure ‘B’ to this ‘Write Up’ are our Pension Rules (in brief) and Annexure ‘C’ is on the subject matter of Gratuity payable to us. We hope, the readers will find these informative, if they have to deal with such individual problems on these subjects.
X : SUMMING UP
39. National scenario - Government policies affecting working class, senior citizens / pensioners
The Government’s policies of indiscriminate run towards privatization and free economy is generating a by-product of inflation to such an extent that the working class and retired people like us – particularly very old retirees who had got very meager retirement benefits, find it very difficult to subsist.
To put a check on the Government’s policies, which are not conducive to the common men and to compel them to look to our problems, senior citizens will have to be more united. Retired Bank Employees, having better organizing abilities, can play a vital role in this regard.
Statement of National Policy on Older Persons, 1999 reads as under.
“Senior Citizens are treasure to our society. They have worked hard all these years for development of the national as well as community. At this age of their life, they need to be taken care of and made to feel special. Concerns of Elderly are national concerns and they will not live unprotected, ignored or marginalized. The State will extend support for Financial Security, Health Care, Welfare and other needs of Older Persons”.
We need to insist and make the Government of India