Friday, February 21, 2014

PRESS RELEASE by AIBOC REGARDING WAGE COMPARISON WITH GOVT, EMPLOYEES!!


 DATE: 21/02/2014


AIBOC has released a Press release in the captioned subject and requested to circulate among public, customer and employees of other sectors.

A CASE FOR SALARY REVISION
FOR 10 LAC BANK OFFICERS AND WORKMEN IN BANKING INDUSTRY

Historically, salary revision for bank officers from Assistant Manager to General Manager is being done at industry level by IBA once in five years and so far nine Bipartite Settlements have taken place and Joint Notes were signed between IBA and representatives of Officers’ Organisations.

The four Officers’ Organisation have submitted a combined Charter of Demands to IBA  on 30th

October 2012, before the due date for the commencement of negotiation for the 10th Bipartite Settlement which was due from 01.11.2012.

Even though one and a half year have passed, no forward movement has taken place with regard to our Charter of Demand except an understanding arrived at on two issues Viz. 1) Date of Effect from 01.11.2012 and 2) Merger of DA at 4440 points.

This time, it has been consciously decided by IBA and Unions that the negotiation will be on Salary components only and its impact on Superannuation Cost will be borne by the banks. Accordingly, IBA has decided to offer salary increase on Payslip Components (Basic Pay, DA, HRA, CCA and Annual Medical Aid) as against Total Establishment Expenses hitherto being followed.

Having settled for 17.50% on Total Establishment Expenses ( higher quantum) during last Bipartite, IBA has made an initial offer of only 5% salary increase on “pay slip component”

(lower quantum) which was enhanced to 9.5% after a Strike Call and finally improved the offer by 0.50% i.e. from 9.50% to 10% on 27th January 2014. Since the offer of 10% amounting to Rs.3150 Crore was lower than the last settlement commencing from 01.11.2007 amounting to Rs.3300 Crore and IBA was not willing to negotiate further on load factor, we were forced to go for 48 hours strike on 10th and 11th February 2014.

PARITY ON SALARY WITH CENTRAL GOVERNMENT EMPLOYEES :


Salary Revision for Central Government employees will be effected based on Pay Commission recommendations once in ten years and their present salary is as per Sixth Pay Commission recommendations. Before 1979, bank officer’s salary used to be higher than the Group “A” officer of Central Government. To have a parity with Government employees, Pillai Committee was constituted in 1979 and as per the Committee’s recommendations the pay scales of bank officers were rationalised and made at par and aligned with Pay Scales of Government Officers. Such parity was distorted to the disadvantage of bank officers by implementing 4th, 5th and 6th Pay Commission Recommendations at much higher levels and the salary difference at all levels is alarmingly high. To quote, the bank officers’ gross pay slip amount at initial stage is about

Rs.30700/- as against Rs.56400/- for Government officers. Similar differences exist at different stages in the hierarchy. It has caused serious impact on the quality of recruits in a highly sensitive sector like banking which involves dealing with public money.

Many State governments have adopted 6th Pay Commission recommendations and many Public Sector Undertakings have also adopted them as bench mark for salary revision which has created a huge gap between the bankmen on one hand and government employees and PSU employees on the other.

Even though the Seventh Pay Commission is due from 01.01.2016 only, the Government has approved composition of Commission well before its due date to decide


about the pay structure of Central Government employees which will be revised after the report is submitted by the 7th Pay Commission with effect from 01.01.2016. (This in addition to the provision of 50% merger of DA with Basic Pay during the intervening period) The comparative scales since 1979 are as under:-

Year

Group-A Officers of

Scale-I Officer in a



Govt. of India

Bank

Prior to 1979

Rs.450/-

Rs.500/-

In 1979

Rs.700/-

Rs.700/-

In 1986

Rs.2,200/-

Rs.2,100/-

(4th pay commission from 1987)

Rs.8,000/-

Rs.7,100/-

In 1996

Rs.12,500/-

Rs.10,000/-

(5th pay commission from 1997)





In 2006

Rs.15,600/- + GP

Rs.14,500/-

(6th pay commission)

Rs.5,400/-


Total Rs.21,000/-

YEOMEN SERVICE RENDERED BY PUBLIC SECTOR BANKS :

The Nationalisation of major commercial banks in July 1969/1982 was one of the bold decision taken by the then Prime Minister Mrs. Indira Ghandhi just to prevent concentration of wealth in private hands and mobilize more resources for economic development and chanalize the same to the needy / neglected Sectors of Indian economy namely Agriculture , Small and Village Industries etc.

Consequent to nationalization, Public Sector Banks have done a commendable job in enhancing the penetration level of bank branches in remote villages, Financial Inclusion, implementation of various schemes of the Government etc. The number of bank branches has gone up from 8262 to 74200 branches as of 31st March 2013 with more presence in rural India.

The priority sector lending was given more thrust as a part of social objectives which has helped to uplift the rural poor. To fall in line with global standards, nationalized banks also adopted Prudential accounting norms, Income recognition and Asset Classification and became strong and healthy. Apart from undertaking the Social Banking, the Public Sector Banks are equally competitive at International Banking landscape.

Public Sector Banks operate in a disciplined manner by observing compliance of regulatory requirements and in fact it was because of this that the Indian banks have emerged relatively unharmed from the recent global financial crisis.

The ten lac officer and workmen employees of banking sector have actively involved in nation building by effectively implementing national agenda of employment creation and economic & Industrial growth and enjoy lot of respect and popularity particularly in Rural & Semi Urban areas.

PRESENT OFFER :

In all the previous settlements, salary increase was given as a load to Total Establishment Expenses and presently we have been offered salary increase on Fixed Pay Components. If the percentage increase is offered on Total Establishment Expenses, the total quantum will be more when compared to Fixed Pay components as explained below.

Total Establishment Expenses
Payslip component


Rs.56292 Crore
Rs.31503 Crore


Offer of 10% on Rs.56292 Cr
10% on Rs.31503 Cr


Quantum available Rs.5629 Cr
Quantum offered RS.3150 Cr




IBA’s present offer of Rs.3150 Crore for one million employees is far below the amount offered during last bipartite settlement. The percentage offer on Fixed Pay Components (Pay slip) has to be improved so as to match with market related salary in view of the following.

The work force of Public Sector Banks are responsible for increase :

1.            In the Business Mix of the Public Sector Banks from Rs.53,71,959 Crore during the year 2008-2009 to Rs.102,18,471 Crore during the year 2012-2013.

2.            in Operating profit from Rs.45,495 Crore during 2008-2009 to Rs.1,21,917 Crore during 2012-2013.

3.            in Net Profit has gone up from Rs.34,382 Crore during 2008-2009 to Rs.50,583 Crore during 2012-2013.

4.            in Total Income (interest and other income) has gone up from Rs.3,15,554 crore during 2008-2009 to Rs.6,11,658 Crore during 2012-2013.

5.            The Net Profit for the year 2012-2013 is Rs.50,583 Crore after providing for NPA Rs.46,021 Crore due to huge slippages during the year 2012-13 of Rs.1,19,613 Crore. Addition to NPA has affected the net Profit in two ways. It has not generated income and the provision has further drained the income.

Thus it is imperative that bank officers and workmen are adequately compensated due to their growing responsibility, transferability and accountability in order to maintain high standards of honesty and integrity, as their job demands, in highly competitive and sensitive sector of the Indian economy, particularly in view of the following facts:

1.    That bank officers who were getting more than government officials earlier, were brought at par with Government officers on implementation of Pillai Committee report in, 1979, are now getting approximately Rs. 20 thousand less than government officials at first stage of the pay.

2.    It is pertinent to mention here that 7th pay commission has been constituted for revision in salaries of Central Government employees, whereas Bank employees have yet to catch the salaries they are getting as per 6th pay commission report.

3.    There is steep rise in the CPI inflation and the salaries in absolute terms have also been eroded. Consumer price index has already increased by 1501 numbers over 4440 which was prevailing on 01/11/2012 i.e. the level at which IBA has agreed to merge the DA with basic pay.

4.    The productivity per employee, the business per employee and branch and profitability of the public sector banks has enhanced many folds.

5.    There is a danger of pouching of the existing young and trained staff of the Public Sector Banks by the new generation Private Sector Banks and Foreign Banks which will emerge as per new Banking Policy.





(HARVINDER SINGH) GENERAL SECRETARY

17 comments:

Anonymous said...

Sir, what for we are waiting? we are already waited for 1 and half year. better to go for indefinite strike. let our govt. understand our importance in economy. if things will go like this way every banker in future will show least interest to do the job. so this is one of the high time to save this industry for better future.

In lieu of risk factor, we are bearing much more risk than govt. employees.Ask govt. to bear this risk.

Many of the NPA account only because of govt. policies.

we cannot be the sufferer for all time.
we need mental peace then we can go forward further

Pradip Girade said...

Again an eye opener press release by Aiboc.But govt.has no time to look at our condition,they r busy in upcoming elections arrengments.There is huge gap btween salary of bankmen & govt.employees.there will not b much defference in our salary(compare to central govt.employees),even though we get what we demanded.We urgently need to ask govt.(not Iba) to establish a comitee which will lessen the gap(said above).We will have to fight this fight by law I repeat By Law.
One more thing no banker will be satisfied on 17.50%.Now we want the demanded % increase though its not respectable.Much time has passed & we achieve less...

Anonymous said...

Ye behan k lode neta circular h nikalte reh jayenge lagta hai 18 mahine to nikal diye bhadwo ne or kitne din?

mith80 said...

Dear Banker,
Dont believe the words of UFBU. Because it is totally a fixing game between IBA and UFBU. They know it very well that the meeting of 3rd march, 2014 is just to fool Bankers, as election commission will declare the date of election on 28th feb or 1st march. so, there will be only a get together party with some enjoying moments between IBA and UFBU. If possibele just resign from the respective Union. If every banker will resign from their respective union it will be a good lesson to them. so, just resign and suggest other bankers to resign from their respective Union. I already decided to resign from the Union and I will definately suggest other bankers to resign....

JAMESWAR said...

we are the hell in this industry due to our people only..at first we should start to clean our union and then IBA. The unions are playing with us...Lets clean the standards what our unions are not doing...First of all let the member know about the demands of the Union in front of the IBA, then decide the next course of action...

Anonymous said...

its not good to compare the entry salary of GR-A central officer with that of a PO. See the difference in the exam(Po is only 2-3 hours exam only), it is obvious, central govt employee deserve to get good salary. Even the clerks in govt offices crossed exam tougher than that of bank employees. It is not that u can not claim good/better salary, but do not compare with that of central gr a officers

Anonymous said...

i want to give reply for this last comment.....
You may be right but a banker taking so much of risk and pain in his life and office. if u r not a banker u can not understand it. at the same time u should go through Pillai committee recommendations. on the basis basis of risk factor nobody can compare with us.

Anonymous said...

dear all,
I've aspired to be a banker for the last 7 months. I'm ready to join a bank in 2 months time. after reading this article I'm surprised and disheartened.
I request you to kindly tell me what will be the sal of a PO if unions settle for 10% pay slip .
please respond so that I can make my decision whether to join as a PO or start my serious preparation for ssc cgl.
thanks all.

Anonymous said...

My dear,

If you compare the exam by time only then all the exams including Indidan Administrative Service exams are of 3 hours only. What risk the central officer is exposed to compared to a Bank Officer? How many hours a Central Officer works? What about an OFFICER in a Bank? Don,t U think a person working for more hours and with great risk to be compansated in a better way? Please ask yourself what u are comparing is right or wrong;

KANAGARAJ JAGANATHAN said...

Mr. Anonymous,

You people in Govt. deal with papers only. Whereas the Bankers are dealing with public Money. You, Govt. People are paid salaries from and out of the Tax money of the people of India. Whereas the Bankers are doing finance business, which are risky and earn net profits and asking for wage hike on par with the Govt. Servants. Please do not poke your nose in to the bankers' wage revision.

surinder sandhu said...

I think Pension upgradation is UFBU's main demand and there is some understanding between UFBU and IBA in it. Pay revision is least preferred demand of UFBU. Settlement would be at around 12%. Freshers would be looser in this settlement. Amazingly central govt employees's salary increased by 25% just by DA merger and that prior to their pay revision.

Anonymous said...

Iba and UFBU are fooling us for sure

Rajeev Kumar said...

It would be a good idea to start 11th pay revision for bankers right now.Slowness and stupidity of IBA and UBFU will take not less than 5 years to settle the demands i.e. before November 2017. Charter of demands for 11th pay revision must be submitted right now without any further delay.

Anonymous said...

Pillai Committee(PC) recommended for Merit Based promotion in Banks and not seniority based - Do bank people accept this.

PC also recommended direct entry at level higher than PO - Do bank people accept this.

Just Switch off your mobile phone at office, your risk will be reduced by 50 % just now.

Anonymous said...

If you believe in punarganma then bankers are those who have done lots of sin during previous janma. That is why we are working as bonded labourers.

It is better to get rid of the existing salary also and work for free so that all papas are erased at the earliest.

Anonymous said...

all ufbu leaders are to retire in bank in upcoming 6 to 7 yrs so they are only thinking abt themselves not new comers.

Anonymous said...

Dear All,

Why we are waiting for if it is a fixed game.I have heard that govt. is ready to give pay commission from 2016 but our union leaders are not ready to accept. There is also controversy that all unions are communist there a is anti BJP led govt. policy adopted by some political parties and they are using bankers for their political benefit because if bankers go on strike there will we chaos in country and ultimately Govt,banker and public will suffer and some political party will win in their motive. I request my union leaders think only about bankers who supported you and faith on you. You are there because of our support.