10/02/2013

7th Pay Commission Constituted - What should UFBU Do Now? - Next Round of Negotiations fixed for 11th October, 2013? an article by Shri Rajesh Goyal

On 25th September, 2013, when I heard  the news  about constitution of 7th Pay Commission, I was dumb for few moments as I felt (as a banker)  that I have been deeply betrayed  by bank union leaders.   After a few moments I came out of the shock and thought as to why I should feel so depressed when I had taken VRS two years back and is not going to get any benefit either from 10th BPS or 7th PC?    Soon I realized that it is due to my over 30 years association with bankers that I felt cheated even when implementation of either of  10th BPS or 7th PC is not going to affect me in any manner.   On second thought, I felt that I should be rather happy as my wife, a government employee, is likely to get benefited from this announcement.   I thought of writing on this subject, as like a bearer cheque,  a banker will always be a banker under all circumstances !  I can realize the pain and mental agony most of you must have gone through on hearing this news.

Now just ponder upon some of the questions.   According to an earlier BPS,  IBA and unions are supposed to start the process of negotiation at least six months before the due date.   I am sure, almost each one of you will remember that UFBU submitted theCharter of Demands to IBA only on 31st October, 2012, i.e. a day or two before the due date.   The worst part was that it was not a comprehensive document and had number of infirmities, some of which I have pointed out in my earlier articles.

Now question arises who is to be blamed for the delay in submission of Charter of Demands.  Can we blame GoI or IBA for this lapse.   Now GoI has announced constitution of 7th PC more than two years from the due date.  This means during this time, the Commission will go through the full process of consultations, and all employees organizations will get sufficient time to put up their demands and revise them after internal and external discussions.   Who stopped UFBU to start the process of completion of Charter of Demands at  least one year from the due date?

Now it is reported that next round of negotiations between UFBU and IBA on 11th October, 2013.   Thus, in the 11 months and 11 days since 10th BPS has become due, the only progress is that IBA has offered to merge DA upto October 2011 (This too is yet to be finally agreed between both the parties).   Thus, we can say over 11 months, there has been practically no progress.  

Whenever I go through the demands of UFBU,  I am always shocked to see demands like appointments on compassionate grounds,  merger of banks on the top of their agenda.  Inspite of years of negotiations,  they have failed miserably to achieve any progress on these demands.   Instead of fighting for 100% of the serving employees, they are fighting for a small number of people.   I feel that in case union leaders had made a fund for such needy people from their internal accruals, bankers would have come forward to contribute to such a fund and things would have been in a much better state.  

Thus, it is high time that UFBU tighten its belts and make IBA realize that they mean business.  Now onwards the focus should be to get an honourable settlement for the bankers.  

Recently, one development in SBI has shaken the Unions in banking industry.  SBI recently withdrew the ‘Check-off facility” provided to some of the associations.  As per convention all banks allow the individual subscriptions to be deducted from salary accounts of member officers and deposit the same in union account.  This facility has been a lifeline to the associations across the banking industry,  as it give them collection of crores of rupees without any efforts.  
The above action appears to be ill motivated by the management, but it has shown a new way for the bankers.    There is a need to ponder upon this issue by bankers.   In the present system, Union leaders do not have to approach the members for subscription once the member has signed the letter authorizing the deductions.  Union people approach the new recruits and once they have obtained the authority letter, they are able to ignore them and their interests.  Thus, in case banks do not allow this check off facility, Union leaders have to approach members on quarterly / half yearly basis for collection of the membership subscription and thus have to remain responsive to the interests of the members or the member will stop paying the subscription.   Thus, the new system will introduce checks and balances for the members.   Union leaders will not sleep on the issues for years as they have to go to members frequently for subscriptions.    Thus, there is a need that members should ask for this new system whereby the Unions have to collect the subscription directly from members on quarterly / half yearly basis (on monthly basis it will be too much work load).
I suggest that in case IBA continues with its negative attitude and tries to circumvent the demand for reasonable hike by putting different scenarios and / or CTC concept etc,, bankers should unite and simply demand the following :-

(a)   The pay scales which were given to central government employees wef 01/01/2006, should be made applicable wef 1st November, 2012, so that bankers are at least at par with central government employees after a gap of over 6 years;

(b)   From now onwards the pay scales of bankers too may be revised after 10 years and be at par with central government employees i.e. 7th Pay Commission recommendations may also be made applicable to bankers wef 1st January, 2017;

(c)    The pension for the retired bankers too be on similar lines of central government employees.

In case some perks are required to be pruned (e.g. newspapers, furniture etc), let these be done, as I am sure the loss on these is minimal, though IBA and bankers keep beating drums for such perks given to bankers.  Ask for perks enjoyed by Central Government employees like medical facilities, enhanced leave encashment etc.


The above will make IBA and UFBU irrelevant and bankers will have at least satisfaction that they are at par with central government employees.   I know for this bankers will have to stand united as it is likely to be opposed tooth and nail by UFBU and IBA.

With above suggestions, I throw the discussions open to our readers who can express their views in the Disqus forum below, as to  whether they agree with above suggested pay structures on lines of 6th and 7th CPC.  If yes, some of you  can even write directly to UFBU and / or respective unions for introduction of central government employees pay scales immediately and 7th Pay Commission recommendations wef 1st January, 2017.    Start building pressure or else be ready for peanuts.  

I also solicit the views of readers about stoppage of ‘check off’ facility for union subscriptions, and introduction of collection of subscription directly from members on quarterly / half year basis. 

9/10/2013

ग्लोबल बैंक की दिशा में सुस्ती-सार्वजनिक क्षेत्र के बैंकों का नहीं हो रहा है विलय

भारतीय बैंक बेहद पीछे
बैंकर पत्रिका द्वारा इसी साल एक जुलाई को जारी दुनिया के शीर्ष 1000 बैंकों की सूची में पहले स्थान पर पहली बार चीन का आईसीबीसी आ गया
इस सूची में टॉप 10 बैंकों में चीन के चार बैंक हैं, जबकि 1000 बैंकों में चीन के 96 बैंक हैं
भारत का सिर्फ भारतीय स्टेट बैंक इस सूची में है, वह भी शीर्ष 100 बैंकों में नहीं है शामिल

भारत में भी विश्व स्तर के कम से कम दो-तीन बैंक बनाने की वित्त मंत्री पी चिदंबरम की ख्वाहिश पर जिस तरह से काम हो रहा है, उसे देख कर तो लगता है कि चालू वित्त वर्ष में शायद ही ऐसा हो पाए। अंतरराष्ट्रीय स्तर पर देखें तो एक भारतीय स्टेट बैंक ही है जिसे बड़ा बैंक कहा जा सकता है।
लेकिन यदि इंडस्ट्रियल एंड कॉमर्शियल बैंक ऑफ चाइना (आईसीबीसी) से तुलना हो तो भारत का एक भी बैंक उसके सामने नहीं ठहर सकता, क्योंकि पिछले तीन साल से लगातार उसका शुद्ध लाभ 49 अरब डॉलर रहा है। वहीं, पिछले वर्ष स्टेट बैंक का शुद्ध लाभ 14,105 करोड़ रुपये रहा था जिसे यदि डॉलर में बदलें तो यह तकरीबन 2.15 अरब डालर ही बैठता है।
पिछले वर्ष नवंबर में आयोजित भारतीय बैंकिंग कांफ्रेंस (बैंकोन) के दौरान चिदंबरम ने कहा था कि भारत में भी कम से कम दो-तीन विश्वस्तरीय बैंक होने चाहिए। उनका तर्क है कि भारत दुनिया की तीसरी बड़ी अर्थव्यवस्था बनने की राह पर अग्रसर है तो यहां विश्व स्तर का तो बैंक होना ही चाहिए। उनके हिसाब से स्थानीय स्तर के बैंकों के सहारे देश अंतरराष्ट्रीय आर्थिक अखाड़े में ज्यादा देर तक नहीं टिक सकता।
वित्त मंत्रालय के एक वरिष्ठ अधिकारी से कुछ बैंकों को मिला कर बड़े बैंक बनाने की दिशा में हो रही प्रगति के बारे में जब पूछा गया तो उनका जवाब मिला कि इस दिशा में काम हो रहा है।
जब उनसे यह जानने की कोशिश की गई कि कब तक ऐसा हो पाएगा तो उन्होंने इसका कोई स्पष्ट जवाब नहीं दिया। एक सरकारी बैंक के निदेशक से जब यह सवाल पूछा गया तो उन्होंने कहा 'देखिये, कब तक हो पाता है।
मैंने सत्तर के दशक में बैंक की नौकरी शुरू की थी, तभी से ऐसा सुन रहा हूं। अभी तक तो भारतीय स्टेट बैंक के साथ ही उनके एसोसिएटेड बैंकों का विलय नहीं हो पाया है। अन्य बैंकों का विलय कब तक हो पाता है, उसका इंतजार है।'
सरकार ने बैंक ऑफ इंडिया तथा यूनियन बैंक ऑफ इंडिया के विलय के लिए वर्ष 2006 में सारी औपचारिकताएं पूरी कर ली थीं, लेकिन बैंक कर्मचारी यूनियन तथा वामपंथी दलों के विरोध के कारण ऐसा नहीं हो पाया था।
हालांकि, बैंक की तरफ से विलय की तैयारी शुरू कर दी गई। इसी तरह विजया बैंक और देना बैंक का पंजाब नेशनल बैंक के साथ विलय की बात थी। वह भी नहीं हो पाया है। तीसरा क्लस्टर इंडियन बैंक, कॉरपोरेशन बैंक और ओरियंटल बैंक ऑफ कामर्स का बना था, लेकिन वह भी नहीं हो पाया।
हाल ही में जारी 'केपीएमजी' की एक रिपोर्ट में कहा गया था कि सरकारी बैंकों के विलय में जब तक सरकार की तरफ से मजबूत कदम नहीं उठाया जाएगा तब तक ऐसा नहीं हो पाएगा क्योंकि अब सरकारी क्षेत्र में कोई भी कमजोर बैंक नहीं बचा है। यदि बैंकों की आर्थिक हालत खराब होती तो अलग ही बात होती।

8/18/2013

9th BIPARTITE UPDATE

Bipartite talks with IBA
Another round of bipartite talks took place today in Mumbai between IBA and UFBU on our demands for wage revision. IBA was represented by their Negotiating Committee led by its Chairman Shri T M Bhasin. UFBU was represented by all our nine constituent unions. The meeting condoled the death of Com. R J Sridharan, Chairman, AIBOA, who was in the negotiating committee till 9th Bipartite Wage Revision. 
The meeting was held in a cordial atmosphere and discussions were fruitful. In the day-long discussions held, satisfactory decisions on some of the important issues could be arrived at. Continuing the discussions of the last round of talks held on 7th June, 2013, we emphasised the need for IBA to expedite and conclude the settlement in a time bound manner. We also asked them to react and respond to the issues like date of effect for commencement of the revised wages, consumer price index point upto which Dearness Allowance is to be merged with basic pay for construction of revised pay scales, quantum of wage revision, etc. 
Date of effect: In response, the IBA agreed that the new wage settlement would be effective from 1st November, 2012, i.e. the date from which the 10th Bipartite Settlement is due. 
Merger of DA for constructing revised Pay Scales: IBA explained their constraints to consider merger of Dearness Allowance at higher index points. After prolonged discussions and on the insistence of the UFBU for merger of D.A at a higher level to enable construction of Pay Scales in a reasonable manner looking to the Pay Scales of employees and officers in comparable sectors, IBA agreed and conceded to merge Dearness Allowance upto 4440 Consumer Price Index i.e. 401 slabs and construct new pay scales accordingly.
Increase in wage load: On the offer of the wage load increase, IBA wanted to study the cost impact of the merger before responding. However, the UFBU reiterated its demand that the offer should be exclusive of superannuation cost and improvements in other welfare measures. IBA indicated that the same would be kept in mind by them.
REIUBURSEMENT OF HOSPITALISATION EXPENSES: To our demand for 100% reimbursement of hospitalisation expenses incurred by the employees/officers for self and eligible family members, IBA offered introduction of mediclaim policy facility under which hospitalisation expenses would be reimbursed by the insurance company upto Rs. 2 lacs for substaff, Rs. 3 lacs for clerical staff and Rs. 4 lacs for officers per year. Looking to the various implications of switching over to the new scheme and the need to examine the pros and cons of the scheme, we said that a detailed study is required on the contents of the scheme offered before responding.
Management’s issues: The management’s issues like introduction of cost to company method, Fixed Pay and Variable Pay concept were discussed and UFBU has given its strong views against the same. However, the matter remained inconclusive. 
Compassionate ground appointment Scheme: Another vital issue, much dearer to all the bank employees, which is relentlessly being pursued by the UFBU is restoration of compassionate appointments in the Banking Industry. IBA informed us in today's meeting that its recommendations for introduction of compassionate appointment scheme on similar lines prevailing in Central Government for its employees has been sent to Ministry of Finance, Govt. of India for its approval. No doubt, it is an important step in the direction of restoring compassionate appointments in the Banking Industry which is a long pending demand. While thanking the IBA for the positive step taken in this direction, we earnestly hope that the Government would accord its approval at the earliest.
Comrades, in today’s discussions, we could arrive at conclusion on two vital issues i.e. date of effect and merger of dearness allowance. We thank the team of the Negotiating Committee of IBA for this forward movement in the discussions. 
The date for the next round of discussions will be decided in due course.

8/11/2013

Xth BPS : An Eye Opener for UFBU Negotiators - Comparative Salaries of Bankers vs Central Government Employees

We are publishing below some comparative charts on the eve of forthcoming negotiations between UFBU and IBA which are reported to be held on 12th August, 2013.   Union leaders are shy to discuss such charts as these tables expose the capabilities of such leaders to get an honourable settlement for the bankers.   These charts have not been prepared by me but are sent to us by one of readers (V Subramanian) who has time and again taken keen interest in putting the truthful facts before the bankers.   We give below two charts for perusal by bankers and for drawing their own conclusions :-

MONTHLY SALARY OF CENTRAL GOVERNMENT STAFF AND BANK STAFF
(OTHER THAN OFFICERS) AS ON 01-08-2013  A COMPARISON

Various Components
of Monthly Pay
Central Govt. Staff
(in Pay Band –1)
Sub-staff in Banks
Central Govt. Staff
(in Pay Band – 2)
Clerical staff
in Banks
Basic Pay
4,860
5,850
8,700
7,200
Grade Pay
1,800
N I L
4,200
N I L
Special Pay (at the minimum for bank staff)
N I L
340
N I L
500
Total
6,660
6,190
12,900
7,700
Dearness Allowance
5,994
(@90%)
5,506
(@88.95%)
11,610
6,849
H.R.A.
1,998
(@30%)
619
(@10%)
3,870
770
C.C.A.   
N I L
N I L
N I L
N I L
Education Allowance
(maximum for 2 children)
2,500
500
2,500
500
Transport Allowance
1,140
(600+90% DA)
225
3,040
(1,600+90% DA)
225

Staff Welfare/Provisions
N I L
500
N I L
500
Newspaper
N I L
100
N I L
100
Gross Monthly salary
18,292
13,640
33,920
16,644
    
    Note:

1.   As regards Education Allowance, Staff Welfare/Maintenance Expenses and Newspaper subscription paid to bank staff, the average prevailing at the industry level has been taken into account, to have a fair and reasonable comparison.
2.   In some banks, cost of 15 litres of petrol is reimbursed as ‘Conveyance Allowance’ to award staff, besides the above.  At the present prices, this will be Rs.1,100 extra.
3.   If we compare the limited working hours a day and 5 day week for the central government staff, bank staff  need to be paid additional amount of compensation for the extra hours worked (15% more than the central government staff).
4.   The volume and varieties of work handled by a bank staff are beyond comparison.
5.   If someone moots the topic of concessional loans for bank staff, ask them to consider these points so far as the bank employees are concerned:
(a)  There is no tax liability on the perquisites paid to the government staff.
(b) Number of transfers of a government staff is far less compared to his counterpart in a bank. 
(c)  If the amount of risks and responsibilities is any criterion, the bank employees (other than officers) must be paid not less than 150% of the salaries paid to the central government staff.
(d) Central government staff enjoy stagnation-free running scale, throughout their career.
(e)  Whenever the pay scales of central government staff are revised, their pension also undergoes automatic revision, for all types of pensioners.
6.     If we look at the statistics given above, clerical staff working in banks are the worst affected.
7.     In fact, a clerk in Central Government service earns a monthly salary of Rs.33,920, whereas the monthly salary of JMGS I officers in a bank is Rs.32,471 (both at the beginning of the scale).  This is the mother of all injustice.

 MONTHLY SALARY OF CENTRAL GOVERNMENT OFFICERS AND BANK OFFICERS AS ON 01-08-2013 –
A COMPARISON
Various Components
of Monthly Pay
Central Government Officers (in Pay Band – 3 –
Stage I)
Bank Officers
 in JMGS I
Central Government Officers (in Pay Band – 3 –
Stage II)
Bank Officers
in MMGS II
Central Government Officers (in Pay Band – 3 –
Stage III)
Bank Officers
 in MMGS III
Basic Pay
15,600
14,500
18,930
19,400
21,900
25,700
Grade Pay
5,400
N I L
6,600
N I L
7,600
N I L
Total of Basic + Grade Pay
21,000
14,500
25,530
19,400
29,500
25,700
Dearness Allowance
18,900
(@90%)
12,898
(@88.95%)
22,977
17,256
26,550
22,860
H.R.A.
6,300
(@30%)
1,233
(@8.5%)
7,659
1,649
8,850
2,185
C.C.A.
(Maximum@4% for bank officers) 
N I L
540
N I L
540
N I L
540
Education Allowance (maximum for 2 children)
2,500
N I L
2,500
600
2,500
1,000
Transport Allowance / Monthly Conveyance
6,080
(3,200+90% DA)
2,200
(30 litres of petrol)
6,080
(3,200+90% DA)
3,000
(40 litres of petrol)
6,080
(3,200+90% DA)
3,750
(50 litres of petrol)
Staff Welfare
N I L
500
N I L
500
N I L
500
Staff Entertainment Expenses (pro rata)
N I L
300
N I L
400
N I L
500
Gross Monthly salary
54,780
32,171
64,746
43,345
73,480
57,035

Note:

1.     As regards Education Allowance, Monthly Conveyance, Staff Welfare and Staff Entertainment Expenses, the average prevailing at the industry level has been taken into account, to have a fair and reasonable comparison.
2.     If we compare the limited working hours a day and 5 day week for the central government officers, bank officers need to be paid additional amount of compensation for the extra hours worked (33% to 40% more than the central government officers).
3.     The volume and varieties of work handled by a bank officer are just beyond comparison.
4.     If someone moots the topic of concessional loans for bank staff, ask them to consider these points so far as the bank officers are concerned:

(a)   There are no tax in the perquisites paid to the government staff.
(b)   Number of transfers of a government officer is far less compared to his counterpart in a bank.  Moreover, the geographical region for the purpose of bank officers’ transfer is very wide and far away from his linguistic region too.
(c)   If the amount of risks and responsibilities is any criterion, the bank officers must be paid not less than 200% of the salaries paid to the central government officers.
(d)   Last but not the least, the respect with which a bank officer is treated today is any yardstick, no amount of money can compensate this injustice.