UPDATION OF PENSION IN RBI - UNIONS REJECTS MOF PROPOSAL

[PM]

Dear Friends,

           As we all know, the issue of Updation of Pension as an when wage revision takes place (as in the case of Govt employees) at banking Industry is a long pending major demand of Bank retirees. 

           In the case of RBI pensioners two major demands have already been achieved ie: 100% DA neutralisation to pre 2002 retirees and uniform rate of Family to surviving family of retirees .

          In the matter of Pension Updation also ,RBI retirees were fighting all these days and as a result of which Govt of India recently came out with a proposal on wage revision and updation of pension in RBI with certain conditions.

          In the case of Govts proposal on wage revision, the representatives of the UNITED FORUM OF RESERVE BANK OFFICERS AND EMPLOYEES met ED Sh. R.K. Gandhi and conveyed their strong resentmentagainst the informal proposal floated by M/o finance to revise Pay scales of the staff every 10 years instead of existing 5 years. The proposal of Revision of Pay-scales every 10 years is unacceptable and non-negotiable said the Forum.

         'For more than 60 years the service conditions of class III and IV staff have been  determined through  the mutual  Bipartite settlements  every five years.
These settlements have stood test of the times, and there seems no valid  reason to change it midway when the bipartite talks between the IBA and other Banks, and RBI and Associations are continuing. The hurt ego of some Babus in M/o finance seems to be the only reason, feel the Bank Employees .'

Ministry of finance has also proposed to update Pension:

1.After every ten  years  on Pay + Grade Allowance.

This proposal was also not acceptable to UFRBO&E.The Circular issued on the subject is reproduced here under for information of all:-

'UNITED FORUM OF RESERVE BANK OFFICERS & EMPLOYEES

March 19, 2014

Dear friends,

Govt’s Proposals to the Bank on Pension Issues

“On the captioned matter Bank invited United Forum on 18th March 2014. Talks were held in three rounds; first with DG (KCC), then with CGM and DGM of HRMD, and finally with ED ShriGandhi.Bank informed us Govt‘s conditionalities on pension updation, for which we have been agitating for about 6 years now viz,

i ) updation will be granted once in every 10 years,

(ii) pension will be calculated on basic pay and “grade pay" without other pay components, as of now; which we observe will result in the existing pension amount having to be "recalculated"accordingly which shall reduce pension amount of the recipients,

 (iii) all perks will be rationalised“,

(iv) wage revisions'will take place once in 10 years, instead of the existing 5 years.

There was no mention of fresh pension option in the conditionalities.

We reacted strongly that pension issue is comprising of updation of pension and fresh pension option and not frequency of wage revision / perks, which relates primarily to the banking sector and flows from various tribunals / arbitration awards and bipartite settlements as per lD Act; as such Government‘s proposals in this regard is beyond their jurisdiction and is ‘unacceptable’ to us.We have been demanding improvement of pension and not reduction thereof. We

emphasized that updation of pension every 10 years will create many anomalies and differential treatments.

We have stated categorically that United Forum will react strongly through intensive agitations if interest of employees and retirees are adversely affected in the name of improvements Clearly,while Govt. has grudgingly accepted in-principle updatlon of pension in RBL they are trying to make it a nullity by preposterous conditionalities. We urged on the Bank to pursue the matter further with the Govt. keeping our very cogent views and apprehensions in mind instead of

allowing the Govt. to find out excuses to run away from the issue after 6 years of our sustained The meeting of the United Forum under the chairmanship of Shri S.\/. Mahadik (AIRBWF) resolved to maintain strong unity, decide in unison and intensify our efforts including agitations in the days to come for satisfactory solutions.

With greetings

Yours fraternally,

General Secretary AIRBEA General Secretary AIRBWF

General Secretary AIRBOA General Secretary RBIOA”

[PM]

2nd para: an omission:

Pl read - uniform rate of Family Pension

[L S RAMAN]

Let the MOF look at the pension improvement proposals demanded by the PENSIONERS ASOCIATIONS OF GOI pensioners SUBMITED TO THE 7TH PAY COMMSSION before restricting the pension and terminal benefits of RBI and PSBS.

Dr Raman.L.S.

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[JSOMA SHEKARA]

Thank You Mr. Mohan for information.

Officials on Finance Ministry apply different standards for Central govt employees and PSU employees.  In my other mail I have uploaded an article by Mr.Pannvalan where in he has explained in detail contributions of PSU banks.

In spite of such hard work by bank employees Finance Ministry always shows step mother treatment. While it accepts hefty pay package recommendations by Pay commission  FM grumbles even offerring Pay hike as agreed in last BPS instead of increase.

What we can expect from such officials except sub standard Pension Updation Package. Since present Governor of RBI pushed the matter strongly with FM they accepted it grudgingly.

Mentality of officials of FM are same that of PC.

Members are aware AIBRF, AIBPARC, UFBU and many other organisations have time and again met officials of MOF personally and submitted representations reg  Pension Updation, 100% DA, Family Pension, second Pension option to all etc. MOF officials every time assured that they will look into matter early. But MOF has not acted upon any single demand of Pensioners.

Even if govt is changed these officials in MOF who are sycophants of FM are not shunted out of Finance Ministry there will be no relief for Bank employees.

[Hans Raj Manuja]

It is on expected lines.Some of our friends have already expressed their views that union leaders may not agree to wage hike every 10 years instead of every 5 years.

         So far as pensioners are concerned,old pensioners would be happy and satisfied if pension is updated even after 10 years. I give my own example -with a difference of only one Bipartite Settlement,I lost Rs 6000/- per month.There are many of our friends who retired much earlier than me.See how much they stand to gain !

        Updation of pension is a dire necessity.Even if  wage hike every 10 years does not suite the working employees or the union leaders ,let them stick to their stand and settle for updation of pension every 10 years,if at all they cannot achieve it every 5 years.

On Thu, Apr 24, 2014 at 10:43 AM, PM <moha...@gmail.com> wrote:

[JSOMA SHEKARA]

The following information appeared in LIC chronicle

Tuesday, April 29, 2014

RESERVE BANK NEWS

It is learnt from very reliable sources that United Forum Leaders met the Reserve Bank 
today ( 28-04-2014 ) morning and conveyed their approval in respect of Pension Updation etc.

United Forum is likely to issue a circular soon.

await the details.

congrats! AIRBIOPF

[bhaskara sarma]

The same is available in RBI pensioners forum as well.

P B Sarma.

[Narendra Khutate]

I AWAIT FOR IBA'S SIMILAR PROPOSAL FOR BANK RETIREES. WILL UFBU BE IN POSITION TO INFORM US FOR WAIT AND WATCH

--

[Daulat Munot]

[PM]

Dear Friends,

                         The latest position on Pension Updation in RBI is  furnished here under for information: 

   UNITED FORUM OF RESERVE BANK OFFICERS & EMPLOYEES issued a  circular dated 28th April 2014 the para 2 of which states:

” Bank took note of our concerns  and assured that Bank would be making endeavour to address those and protect the interests of employees and retirees, regarding fixation of pay for pension, “rationalization” of perks and perquisites, alignment with the banking sector including SBI  for compensation package with A+ position every five years following settlements there, appropriate amendment of RBI pension regulations etc.”
The circular does not detail anything further.

However,we understand from their sources that United forum has consented to the Bank’s following proposals.

1. Updation of pension every ten years:

2.Bank will extend one more pension option to those who did not opt for it earlier

3.Basic pension to be based on last drawn pay instead of average of TEN months’ last drawn pay.with appropriate Amendments to Pension Regulations.

4. Alignment with Banking Industry and SBI to retain A+ position.The wages shall be reviewed and revised in the context of the settlements in the Industry.
5.Rationalization of perks.

• The Bank will now, as a reply to the Government’s  earlier letter give  its consent in principle. Appropriate approval from  the Central Board of Directors will also be sought in the matter. 
  

In short, RBI would recommend the above proposals to  MOF,  Govt. of India for their final approval. After the GOI  gives its assent , necessary instructions in the matter would be issued to the offices.

Those retirees  who  did not  opt for pension earlier  should be ready now with  money to  opt when  the bank invites them to do so. 

On Thursday, April 24, 2014 10:43:23 AM UTC+5:30, PM wrote:

[Srinu G]

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Plz ignore if not intrested .just to aware people for another income source

Regards
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Hyderabad

[bhaskara sarma]

Now RBI pensioners achieved the following benefits.

1.100 percent DA neutralisation.

2.Improvement in family pension at par with Central govt pensioners.

3.Full pension after completion of 20 years of service.

4.Pension updation once in 10 years and another option of pension to the left over employees.

That shows RBI staff achieved most of the important demands of pensioners.We should also feel happy about it since this May mark beginning of Improvement of pension benefits to Bank and LIC pensioners also.Now it is the turn of UFBU to be more serious about the demands of pensioners in 10 th bipartite and achieve parity with RBI and Central govt pensioners.

With regards,

P B Sarma.

--

[P Vijayaragahavn]

When can we expect any favorable news for pensioners......???

Sent from my iPad

[PM]

Dear Mr.Raghavan,

                                When we look around, indication of positive developments are taking place as we seen  in RBI and we need not have much apprehension on achieving our long pending demands, under ongoing 10th BPS negotiations.Apex level Retirees Associations are moving jointly with MOF/Govt/IBA in securing our genuine demands.These initiatives and concerted actions of Bank  Retirees organisations along with Bank employees Unions cannot be ignored by authorities for further long time. Some of the court verdicts are also coming in our favour.Certainly our major demands will be resolved in coming months through negotiations.

                               There is no doubt,  if there is a political will,bureaucrats' present negative attitude will be changed to great extend and the change of Govt in coming month will also pave way for resolving our major demands.

                               Surely retirees/pensioners  can await for  good news in coming months.

 

On Thursday, April 24, 2014 10:43:23 AM UTC+5:30, PM wrote:

[PM]

The Copy of circular issued by UFORBO&E dt 28th April'14 is reproduced here under for information:

"UNITED FORUM OF RESERVE BANK OFFICERS & EMPLOYEES 28th April, 2014

Friends,

Undation of Pension & fresh option

Bank invited United Forum today at Mumbai for exploratory discussions on the issues of pension updation and fresh option following our meeting with the Governor in this regard on March 26. 2014. Before meeting the Bank the United Forum met with Shri Arun Samaddar (AIRBWF) in the Chair and decided to reiterate our serious apprehensions arising out of Government's communication to the Bank.

Bank took note of our concerns and assured that Bank would be making endeavour to address those and protect the interests of employees and retirees, regarding fixation of pay for pension, "rationalization" of perks and perquisites, alignment with the banking sector including SBI for compensation package with A+ position every five years following settlements there, appropriate amendment of RBI pension regulations etc.

The United Forum met new Deputy Governor, in-Charge of Administration (Shri R. Gandhi), who was greeted by us; he assured that Bank would do its best to protect the interest of its staff and would not agree to any proposal /suggestion of the Government inimical to staffs interest. We thanked him and the Governor.

The United Forum took stock of the developments and Bank‘s responses. It decided to fight any unjust imposition from the Government on RBI staff, both in short term and long term, and called upon all sections of RBI staff to remain firmly united and support the collective efforts of the United Forum to clinch the issues for which we have been painstakingly trying for last more than six years, ensuring in the process sympathetic support of the RBI Central Board and successive Governors.

Let us remain alert about further developments and do not pay any heed to hearsay and rumours."

S/d

(Samir Ghosh) (S.V.Mahadik) (C.M.Paulsil) ( R.N.vasta)

General secretary General secretary General secretary General Secretary

AIRBEA AIRBWF AIRBOA RBIOA"

[P.VIJAYARAGHAVAN]

Thank you..Hope that  the Bipartite settlements or Government action takes place soon after new Government isformed at the centre ..

[Daulat Munot]

Dear Comrades, There is nothing harm to accept M.O.F. similar PROPOSAL as offered for R.B.I. Officers/Employees. If  United Forum Leaders met the Reserve Bank on 28-04-2014  morning and conveyed their approval in respect of Pension Updation etc then it may as good for the employees/officers/retirees/left over categories of the public sector banks too. If pension updation is implemented in present phase then similar approach should be taken by U.F.B.U.  as United Form Of Reserve Bank Officers and Employees adherd with.If we missed similar opportunity we shall commit the blunder mistake as P.F optees employees/officers done in past.

[bhaskara sarma]

Any parity with RBI pensioners is to be accepted unconditionally in the present situation by UFBU.

P B Sarma.

[JSOMA SHEKARA]

Mr.Daulat

United Forum Leaders cir is not detail and vague. Sometimes Unions make compromises for unknown reasons and does not reveal it until the agreement is signed.

It is not clear whether RBI management has agreed to retain BPS of 5 years.

Management has only given assurances not definite commitments. We have seen for last 14 years how IBA has kept its promises.

Further in any Institution where Pension Scheme exists it is average of last ten months emoluments is taken.

Now United Forum Leaders have agreed for amendment of Pension that only last month pay drawn is taken for calculation of Pension.

Whether it is retrospective effect or from future date is not clear.

There are many instances where employees/officers have been charge sheeted for flimsy reasons at the fag end of their retirement and increment cut  during their last month of retirement. Hither to because of last 10 months average is taken this increment cut on last one or two months would not have much effect. If only last month pay is taken those who got annual increments during last months would benefit and if this implemented retrospectively  some others will get their pension reduced retrospectively.

It is the the perfect weapon in the hands of Management to reduce pension of an officer at last moment. And it is not uncommon that most of the charge sheets are filed in Banks only during last few months before retirement.

Further why Central Govt has not demanded such sacrifices from its own employees for extending Pension Updation?

[real banker]

Friends
Where is the offer for bank pensioners by IBA ?
Sudershan Pal

[JSOMA SHEKARA]

Mr.Sudarshan Pal is correct.

As on date no offer is made to Bank pensioners by Govt or IBA.  There is only 13 days left for present Govt. Even BPS meeting as promised in April was not held. Both IBA and UFBU are silent about next meeting. UFBU did not see any merit in explaining members why meeting was not held in April and what is the present status of BPS.

We learn by Past experience that what ever benefit given to RBI is not passed on to other bank pensioners.

RBI has already achieved 100% DA, improved commutation and Family pension and other pension improvements.

None of it has been passed on to Bank pensioners.

 On the other side IBA, Bank Managements, govt are fighting in courts by appealing again and again to prevent benefits provided in Pension Regulations.

IBA is not entertaining Pensioners individually or retiree organizations even to discuss grievances if not for BPS talks.

Since UFBU is silent and we are in dark about any progress expecting parity with RBI is premature.

 

[bhaskara sarma]

There is no offer as such now.It is our fond hope that we may also get the offer more or less on similar lines since our Big brother,RBI pensioner got it and LIC pensioner also may get it since their case reached Supreme Court,supported by favourable judgements in 3 High courts.

P B Sarma.

On Saturday, May 3, 2014, real banker <spal...@gmail.com> wrote:

Friends
Where is the offer for bank pensioners by IBA ?
Sudershan Pal

On May 3, 2014 3:40 PM, "JSOMA SHEKARA" <jsomase...@gmail.com> wrote:

Mr.Daulat

United Forum Leaders cir is not detail and vague. Sometimes Unions make compromises for unknown reasons and does not reveal it until the agreement is signed.

It is not clear whether RBI management has agreed to retain BPS of 5 years.

Management has only given assurances not definite commitments. We have seen for last 14 years how IBA has kept its promises.

Further in any Institution where Pension Scheme exists it is average of last ten months emoluments is taken.

Now United Forum Leaders have agreed for amendment of Pension that only last month pay drawn is taken for calculation of Pension.

Whether it is retrospective effect or from future date is not clear.

There are many instances where employees/officers have been charge sheeted for flimsy reasons at the fag end of their retirement and increment cut  during their last month of retirement. Hither to because of last 10 months average is taken this increment cut on last one or two months would not have much effect. If only last month pay is taken those who got There is no offer as such.Weannual increments during last months would benefit and if this implemented retrospectively  some others will get their pension reduced retrospectively.

It is the the perfect weapon in the hands of Management to reduce pension of an officer at last moment. And it is not uncommon that most of the charge sheets are filed in Banks only during last few months before retirement.

Further why Central Govt has not demanded such sacrifices from its own employees for extending Pension Updation?

[JSOMA SHEKARA]

Next meeting of IBA with UFBU is scheduled on Monday 5th May. UFBU is likely to settle for 15% hike exclusive of hospital and other expenses. 

“Our readiness to agree to a low hike in the cash component will depend on the management’s readiness to accept our demands of taking care of housing as well as medical expenses of the employees and their family including hospitalisation,” CH Venkatachalam, general secretary, All India Bank Employees' Association (AIBEA), told FE. AIBEA is the country’s oldest and largest bank union with around 5 lakh employees as its members.

However there is no news of Pension related demands.

[real banker]

Thanks JS 

So the clock starts clicking once again, with batteries replacement due on 16th May - All the best.

? Regards

Sudershan Pal
REAL BANKER

[L S RAMAN]

UFBU as an association of serving employees is not concerned about the welfare of pensioners, and their priority is the concern for servig employees.If there is an opportunity they sign an agreement to reduce the pension/D.A so the the savings could help in increasing the salary of serving employees.It is natural that they are interested on a priority to take care of the serving employee members paying monthly subscription.

Pensioners associations have fight for their rights and avail legal remedies.

Dr Raman.L.S.

On Sun, May 4, 2014 at 7:39 AM, JSOMA SHEKARA <jsomase...@gmail.com> wrote:

[JSOMA SHEKARA]

Recently IBA imposed ban on foreign Travel of officers. I have nothing against officers enjoying foreign Travel and withdrawing facility is unfair.

However double standard of Unions has been exposed.

Administrative circulars cannot override statutory rules.

This has been stated by HC and SC in various verdicts.

IBA by overriding Pension Regulations even  after committing that "all benefits available in Pension Regulations will be applied to SVRS retirees"  in violation of Pension Regulation which is statutory in nature withdrew 5 years notional weightage benefit by issuing a circular.

Pensioners are  writing to Unions again and again to look into the matter. But UFBU and other unions were deaf and ignored it. Due to this Other Bank Pensioners fought 9 years and got relief from courts. Vijaya Bank set right it only recently.SBM and associates still fighting in courts.

 Were UFBU and other SBI unions not ware of this rule at that time ?

When they are directly hit they are remembering this rule.

Why they have not come to the rescue of pensioners for 14 years?

Suddenly when Foreign Travel facility is withdrawn Unions have jumped into action within no time approached courts and arguing that Statutory rules cannot be withdrawn without amendments. Is it because Union leaders directly affected by it?

Can they give explanation why they have not taken such legal action when 5 years benefit refused to SVRS retirees?

[PM]

For Information:

                                The Madras High Court has ordered an interim stay on a recent circular of IBA  that took away leave travel concession facility to bank officers for journeys abroad.

                                         This was in response to a writ petition moved by the All India State Bank Officers’ Federation, Chennai, and All India Bank Officers Federation, New Delhi. The petitioners had sought an interim stay on a contentious circular of April 7 by the Chief Executive, Indian Banks’ Association (IBA) read with the e-circular dated April 15 by Chairman, State Bank of India (SBI).             

                                       The counsel for petitioners cited specific provisions of leave travel/home travel concession rules to substantiate their argument against the circular.

                                       But without making amendment to the said rules, SBI had issued the impugned letter saying that officers shall not be entitled to travel abroad as part of leave travel concession facility. Counsel argued that it was not permissible for respondents to withhold a right guaranteed under the statutory rule and available to members of petitioner unions. In fact, the unions had demanded further liberalisation of the facility in a charter of demands submitted in the current bipartite negotiations

[arjunbhai oza]

Dears all Bankpensioners, most of old age pensioners, why the  IBA or GOI  not to look tuwards Bank pensions, All Gvt pensioners get theire fully Right on same time and date, when Gvt Employees benifited, then why? we not, we employed as work of Nation of India.

Please thinks obount this ? we are step mother<s SON.

A.I.Oza.

[arjunbhai oza]

Dears all Bankpensioners, most of old age pensioners, why the  IBA or GOI  not to look tuwards Bank pensions, All Gvt pensioners get theire fully Right on same time and date, when Gvt Employees benifited, then why? we not, we employed as work of Nation of India.

Please thinks obount this ? we are step mother<s SON.

A.I.Oza.

[cpvnair]

WHY BLAME OTHERS DEAR ONES?AT LEAST 10 YEARS BACK, ALL THE BANK RETIREES SHOULD HAVE UNITED,STRUGGLED THROUGH AGITATIONS!NOW ONLY EVERYBODY SEEMS TO HAVE AWAKEN.IT IS GOOD.OUR ISSUES COULD HAVE BEEN VISITED IN THE LAST BPS TALKS-2010,HAD WE GOT UNITED EARLIER.NOW I FIND SYMPTOMS OF UNITY FOR THE SAKE OF EXISTENCE.

 

IBA/GOVT WERE HAPPY THAT WE BANK RETIREES WERE NOT UNITED ..INSTEAD OF BLAMING OTHERS,I URGE UPON EVERYBODY TO INSTIGATE EACH UNORGANISED BANK RETIREE AT HIS CENTRETO  JOIN ANY RETIREE OUTFIT OF HIS CHOICE.WILL YOU DO IT DEAR ONES?

 

THANK YOU,WARM REG

 

 

CPVNAIR

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[JSOMA SHEKARA]

Various reports available from financial Express and other websites it is clear that wage hike will  be agreed around 15%. Whether this will be finalized in to day's meeting  with IBA we are not sure.  However after after 20 months of submitting COD both IBA and UFBU agreed on 3 factors.

1. Wage hike percentage 2. Date of effect 3. Points of Merger.

Now only MISC items has to be sorted out.

Will UFBU now focus on Pensioners/retirees demands?

[bhaskara sarma]

The misfortune of pensioners is that their representatives are not members of negotiating committee.So whenever the interests of pensioners were trampled by administrative circulars or orders,UFBU strangely kept silent,leading to untold hardship to the pensioners.Now UFBU has lost moral authority to question IBA when such things happen to employees.

P B Sarma.

Sudershan Pal
REAL BANKER

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[cpvnair]

IS THERE ANY RELEVANCE IN DISCUSSING THIS ASPECT AS A RETIREES' ISSUE?UFBU IS QUITE COMPETENT TO FACE THESE CHALLENGES.WHILE THE SERVING EMPLOYEES/OFFICERS HAVE NO INTEREST IN THE RETIREE ISSUES-AS I PERCEIVE PERSONALLY-THERE MAY HAVE DIFFERENCE OF OPINIONS-WHY SHOULD WE THROW MUCH WEIGHT ON SUCH MATTERS?LET US USE ALL OUR WISDOM IN PRESSURISING THE MIGHTY UFBU TO RESOLVE OUR UPDATION ISSUE

 

 

WARM REG

 

 

CPVNAIR

 

From: bankpe...@googlegroups.com [mailto:bankpe...@googlegroups.com] On Behalf Of bhaskara sarma
Sent: Monday, May 05, 2014 1:31 PM
To: bankpe...@googlegroups.com
Subject: Re: bankpensioner UPDATION OF PENSION IN RBI - UNIONS REJECTS MOF PROPOSAL

 

The misfortune of pensioners is that their representatives are not members of negotiating committee.So whenever the interests of pensioners were trampled by administrative circulars or orders,UFBU strangely kept silent,leading to untold hardship to the pensioners.Now UFBU has lost moral authority to question IBA when such things happen to employees.

[JSOMA SHEKARA]

Earlier I have reported that UFBU is scheduled to meet UFBU on 5th May.

I reproduce here below full text of source as appeared.

***************************************

Bank staff eye 15 pct pay hike in meet with IBA-Financial Express

4th May 2014 ( My Comment: Meeting with IBA scheduled on 5th of May . There will be none from MOF. Outgoing Present government is morally not fit for giving permission to Bipartite settlement.Still talk will take place . God knows the fate. Let us hope for the best)

Nine unions, representing around 9 lakh public sector bank (PSB) employees under the umbrella of United Forum of Bank Unions (UFBU), are slated to meet Indian Banks’ Association (IBA) — the country’s apex bank management panel — on Monday to arrive at a wage revision settlement.

In the last round of talks that failed, leading to a nation-wide strike on February 10, the employees had cited high inflation while rejecting the management’s offer of a 10% hike in the cash component of the pay package (including basic pay, dearness allowance, house rent allowance, routine medical expenses and a special allowance, but excluding superannuation benefits, travel allowance and hospitalisation reimbursement).

Top bank management sources said even a 10% hike in the cash component would have set banks back by Rs 3,150 crore, a huge sum considering mounting bad loans and the economic slowdown, which is delaying recovery. Though the employees have not demanded any specific hike, they may agree to a “reasonable settlement” of around 15% hike in the cash component if the management agrees to take care of the expenses for their housing and medical expenses, sources indicate.

“Our readiness to agree to a low hike in the cash component will depend on the management’s readiness to accept our demands of taking care of housing as well as medical expenses of the employees and their family including hospitalisation,” CH Venkatachalam, general secretary, All India Bank Employees' Association (AIBEA), told FE. AIBEA is the country’s oldest and largest bank union with around 5 lakh employees as its members.

On February 10, when bank employees started a two-day nation-wide strike demanding higher wages, finance minister P Chidambaram had asked PSBs to ensure that a significant portion of their retained earnings is ploughed back as capital to further their business. “It cannot be that all profits are used to declare dividend and to provide enhanced wages and allowances to bank employees. While claims of officers, staff and employees must be duly acknowledged, and a fair and just (wage) settlement is arrived at, there are other claimants (declaring dividend and using part of retained earnings as capital) to banks' profits. I will appeal to employees and officers of banks to recognise this,” the minister said.

Wages as a ratio of total bank expenses have come down from 17.5% in 2010-11 to 14% in 2011-12 and to 13% in 2012-13. Though the wage bill itself has gone up from Rs 54,964 crore in 2010-11 to Rs 56,000 crore in 2011-12 and to Rs 64,000 crore in 2012-13, employee unions said this was mainly due to recruitment of around 1 lakh employees and higher outgo of superannuation benefits as a large number of them had retired from service.

They pointed out that profits of banks rose from Rs 1 lakh crore in 2010-11 to Rs 1.16 lakh crore in 2011-12 and to Rs 1.22 lakh crore in 2012-13, while the provision for bad loans went up from Rs 29,830 crore to Rs 38,177 crore and to Rs 43, 102 crore during this period. The actual write-offs also went up from Rs 17,794 crore in 2010-11 to Rs 27,013 crore in 2012-13.

“We understand the ability to pay higher wages is limited due to bad loans, but then how could they afford to write off so much? The management must consider the wage hike as an investment in their employees. Otherwise, with more private banks to be set up after the new bank licences are rolled out, they would easily poach from PSBs with higher pay packages. This will result in PSBs losing out after having spent considerable time, energy and money in fresh recruitment and training,” Venkatachalam said.

In the last round of wage revision settlement signed in 2010 for 2007-12, the management had agreed to a 17.5% increase in the total salary. This time, the employees are asking for an increase in the cash component of their salary.

 

 

[cpvnair]

ANY IDEA ON PENSION UPDATION?

 

 

Warm reg

 

 

CPVNAIR

 

 

 

 

From: bankpe...@googlegroups.com [mailto:bankpe...@googlegroups.com] On Behalf Of JSOMA SHEKARA
Sent: Tuesday, May 06, 2014 8:05 AM
To: bankpe...@googlegroups.com
Subject: Re: bankpensioner UPDATION OF PENSION IN RBI - UNIONS REJECTS MOF PROPOSAL

 

Earlier I have reported that UFBU is scheduled to meet UFBU on 5th May.

[Nageswara Rao Gullapalli]

its a mirage

G Nageswara Rao

[Daulat Munot]