Wednesday, January 11, 2017

7

AIBOC COUNTERS THE VIEWS OF BBB CHIEF
DEMANDS INDUSTRY LEVEL WAGE SETTLEMENT FOR ALL SCALES
The five-yearly exercise of wage revision through bipartite discussions, due on 1st
November, 2017 has not been started despite clear directions of the Ministry of Finance
and its three reminders. Though the Ministry had given directions to the Bank
Managements and IBA to initiate the process one year ago on 12/01/2016, no perceptible
action is visible at the ground level. AIBOC is ready with the Charter of Demands which
will be submitted to IBA as soon as IBA invites us to do so. Wage revision has been a
process of negotiations between the Unions representing the employees/officers and IBA
representing the individual bank managements. In this regards, AIBOC demands:
1. The wage revision negotiation – as hitherto - shall cover all member banks in the country
– those in Public Sector as also the old generation Private Sector. There are attempts on the
part of a few in the Government, IBA as well as the recently constituted BBB to pursue bank
level settlement. AIBOC is strongly opposed to this anti-labour and de-unionization move.
For the past more than 5 decades, the salary structure of bank employees and officers was
negotiated at the industry level without any major hiccup and with reasonable equity. This
process must be respected by all the concerned parties. Any attempt to introduce the bank
level settlements will be opposed and thwarted collectively by all the Unions.
2. Similarly, the Officers’ Organisations were negotiating with the IBA wage revisions
covering officers in all Scales – i.e. from Scale I (Assistant Managers or Officers) to Scale VII
(General Managers). This has been necessary to keep parity and relativity in pay, inter-scale
differentiation with due respect to experience. A few banks are ploughing the mundane idea
of dividing the officers on the basis of Scales which will not be acceptable to AIBOC. We
demand that the existing practice of negotiating the salary structure and other allowances
should cover all the scales including the top most Scale.
3. Recently, there has been another move to incentivize the bank employees/officers
through Performance linked pay/incentives. This will be a prelude to introduce differential
pay as also the concept of CTC at a later stage. Setting performance parameters at various
levels of banking functions does not fit well into the banking environment as there are
multiple functions for a few and specialist functions for another lot. Moreover, such
parameters may not work well with the functionaries in controlling offices who undertake
jobs of evolving and implementing policies and guidelines at the back office. The unilateral
introduction of such practices are aimed at bypassing the bipartite machinery and casting
employees against their own colleagues. This exercise will lead to inequality, favouritism and
discrimination. Instead of enthusing and encouraging the workforce, it will lead to
demotivation in the industry and suspicion amongst the workforce. AIBOC demands, instead,
to finalize a better and satisfactory wage packet which has to be superior to 7th C.P.C.
through the bipartite machinery already in force, in the best interests of the banks and the
economy.
AIBOC, the largest union of the supervisory cadre in the banking industry, calls
upon the Government to immediately direct the IBA to ensure to start wage
revision negotiations in right earnest on the above lines. Such an action will be
pro-active and rewarding to the bank officers who have relentlessly toiled day
and night since 2014 for implementing various Govt. policies like ‘PMJDY’, Jeevan
Bima Yojana, DBT, MUDRA and Subsidy disbursements etc. and the latest being
demonetization process. Officers expect that the praises and appreciations of the
Prime Minister, Finance Minister and the Ministry of Finance translate into action
through a hassle free, well deserved and decent early wage settlement.
New Delhi (HARVINDER SINGH)
10/01/2017 GENERAL SECRETARY

Friday, December 16, 2016

Today AIBOC TN demonstration @ Chennai, Near State Guest house Chepak.
DEMANDING adequate cash supply to Public Sector BANKS from RBI to reduce the sufferings of General Public and Bank Staff.






Thursday, December 1, 2016




MEERUT/BAREILLY/AGRA/PILIBHIT:
Traffic blockades, stone pelting and varying degrees of violence reflected the growing impatience among population in Uttar Pradesh as banks once again couldn't dispense cash on Wednesday.
In Meerut, hundreds of irate customers resorted to violence when a Syndicate Bank branch on Hapur Road announced that it was left with no cash to dispense. Sensing danger, bank staff locked themselves inside the premises as crowd went on rampage damaging vehicles and blocking traffic. They also burnt an effigy of PM Modi.
When police teams arrived on the spot, protesters indulged in stone pelting that left circle officer (Civil Lines) Arvind Kumar injured. Later, police had to resort to mild lathi-charge to disperse the crowd. In Agra too, police had to use lathis to scatter an angry crowd outside Oriental Bank of Commerce's Kagrol branch in Kheragarh block of the district on Wednesday afternoon.
In Doghat village of Baghpat district, the situation turned serious when bank officials had to run out of the branch building and take refuge in a local police station.
In Pilibhit, farmers protested against lack of cash in BoB branches by blocking the highway and burning effigy of the branch manager. They also staged a dharna outside the bank branch. Reports of uproarious scenes were received from other branches of the bank in the district too.
Meerut senior superintendent of police J Ravindra Goud said, "We are on alert for Thursday and have summoned our reserve forces as well. We have made elaborate plans to keep tempers in check. We, too, are hoping that cash arrives in banks by Thursday morning."





Off the black mark

Demonetisation won’t hurt ‘kala dhan’ — it will only damage economic growth.

Written by Ajay Chhibber | Published:November 28, 2016 12:04 am
demonetisation, Rs 500, Rs 1000, black money, Pm Modi on black money, currency notes, demonetised currency notes, news, latest news, India news, national newsIt might have been better to go after real estate transactions, the movie industry, gold, weddings, election financing and benami transactions.
The Modi government’s hit on black money may go down as one of India’s biggest economic blunders — or greatest achievements. Whether one agrees with the move or not, its implementation has been bungled and the collateral damage is likely to be heavy. Where did this idea originate? Surely the PM’s key economic advisors would not have recommended it.
Demonetisation is usually associated with decrepit economies and hyperinflation, such as Zimbabwe recently and Argentina in the past. The Argentine government demonetised several times in the last century; it even changed its currency’s name from peso to austral, then back to the peso — each time, it further reduced confidence in the currency. Myanmar, Ghana, the former Soviet Union, Nigeria and Zaire also demonetised, leading to devastating economic consequences. In all cases, often done by military dictatorships, demonetisation eroded confidence in the currency. It is therefore surprising that a reform-minded, popular, democratically elected prime minister has resorted to demonetisation. Even Arthakranti, the Pune NGO from where the idea ostensibly emanated, is distancing itself from a ham-handed plan to withdraw 85 per cent of the country’s currency overnight.
There is likely to be a one-time stock effect on those who held black wealth or kala dhan in cash. But much of it sits in gold, real estate or is offshore. Estimates of kala dhan vary; the most commonly accepted is around 25 per cent of GDP. Demonetisation only affects black money — not kala dhan. Estimates from previous raids show cash is 5-6 per cent of kala dhan. Cash is easily transactable but because it’s bulky, it’s hard to hoard too much kala dhan in cash. So, about 1-1.5 per cent of GDP is held in black money. If the government nets half of it through demonetisation, it’s around 0.5-0.75 per cent of GDP. This still leaves the bulk of kala dhan untouched. The flow of resources into kala dhan is unlikely to be affected by demonetisation. In fact, over time, even less will be held in cash, more in gold, real estate or shifted offshore.
The collateral damage from this move could be huge, economically and politically. The poor are already suffering, especially those without easy access to banks, post offices, even information on what to do. More long-lasting damage could be to trade in sectors where much business is conducted in cash — especially the informal sector and rural areas comprising about 40 per cent of GDP. The non-bank financial sector, on which many SMEs rely for short-term finance, has also been hit. As a result, the effect on economic growth in 2016-17 could be as high as one per cent of GDP — which will neutralise the one-time gain from demonetisation.
It is claimed India’s cash to GDP ratio, at around 11-12 per cent of GDP, is too high. But comparisons are made with countries at much higher levels of development, with much smaller, rural, un-banked populations. China has a cash to GDP ratio of around 9.5 per cent of GDP, Germany at 8 per cent of GDP and the US at around 7.5 per cent of GDP. There appears no correlation between corruption and the cash to GDP deposit ratio. Nigeria, widely regarded as one of the most corrupt countries, has a cash to GDP ratio of only 3 per cent of GDP as faith in the currency has eroded.
To weed out black money, more comprehensive reform is needed. It might have been better to go after real estate transactions, the movie industry, gold, weddings, election financing and benami transactions. Without tackling the reasons for black wealth, just demonetising won’t address corruption or eliminate the black economy. The Modi government should focus on achieving genuine economic recovery and ensuring job creation. More poorly conceptualised, badly implemented and moralistic policy prescriptions will take us back to the Hindu growth rate of 3-4 per cent of the 1970s and 1980s. We thought we were done with that.
The writer is distinguished visiting professor at the National Institute of Public Finance and Policy, (NIPFP) and former DG, independent evaluation office, government of India.