Friday, February 28, 2014

Reply to F.M. By his own men!!

Following fitting reply to F.M. by AIBOC now it is the turn of INBEF (a wing of INTUC/Congress Party) 
Our greetings to INBEF!!

Indian National Bank Employees’ Federation
(A Banking Wing of INTUC)

 
INBEF/GS/SSS/2014/05                                                                      21st February, 2014
(Revised)

AAHAT!    SSHH……… PHIR KUCH HAI !
Friends,
Recently, on 11th February 2014, i.e. on the second day of Banks’ strike, Mr. Chidambaram, Finance Minister, Government of India has categorically said on the occasion of Indian Overseas Bank’s 78th Foundation day celebration in New Delhi that,
“It cannot be that all profit is
used to declare dividend and to
provide enhanced wages and allowance
to Bank Employees”

On the same occasion, he admittedly said having infused capital of Rs. 35,000 crores in 2011-12 and Rs. 37,936 crores in 2012-13 to maintain the capital adequacy norms in various Banks which became overburdened due to N.P.A. He reportedly further said that the NPAs rose to Rs. 2.36 lakh crores in September 2013 from Rs. 1.83 lakh crores in March 2013.
Now to our Finance Minister, who has graduated from Harvard University it is not unknown to him that in the labour intensive industry like Banking, the wage of the employees’ are only the factors of production and not production “perse”, meaning that Bank employees’/officers produce the services and earn profit by making use of other three factors of production including capital.
Ironically, Mr. Chidambaram tries to impress upon that after major chunk of profit being marked to owners (i.e. to the Government, major shareholder and the public), whatever profit is left should go to the provisioning of huge NPAs and the residual profit must be given to bankmen,  that too after infusing major portion as capital.
This type of allocation of profit is nothing but “Robbing Peter to pay Paul” as planned by our Finance Minister.
In short, Mr. Chidambaram in the name of planning for fiscal deficit will take major chunk of profit to the Government coffer as dividend first and second major chunk for provisioning for NPA leaving very little for employees’.
Friends, behold! This is not the only attempt to bring revenue under his fold. In the name of deficit control, the deceptive measures are reportedly being taken by siphoning of cash balances of public sector companies, additional expenditure is being rolled over to the next financial year tax and dividend income to accrue next year is being brought forward to this year’s books. (Courtesy; Corporate India, February 15, 2014).
The report further says that in first nine months (April-December 2013) the gross tax revenue was Rs. 7.7 lakh crores, Custom and Service Tax was Rs. 3.55 lakh crores and net Direct Tax collection was Rs. 4.15 lakh crores.
Friends, why we are giving these figures to you, because 94% of total fiscal deficit limit set for whole year has already been exhausted.
Now, election in the offing and to meet growing demand of the Ministers of rural development, power, water, and HRD our Finance Minister is left with no other way than to squeeze cash rich public sector by Government, thus by declaring Rs. 29/- per share as interim dividend alone would fetch the funds of Rs. 18,317 crores plus dividend distributions tax of 17% i.e. Rs. 19,600 crore is brought to Government coffers.
In yet another attempt in  a decision of reducing 10% share of Indian oil ONGC & Oil India Ltd., (both owned by Government), stage has been set to siphon off huge cash balance to Government Coffers in addition to huge subsidies provided to these two state owned Companies in selling diesel, Kerosene and Cooking gas.
It is reported that officials of Finance Ministry have asked companies to pay higher Advance Tax in March 2013 and claim refund next year. It is also reported that the Oil subsidies worth Rs. 60, 000 crores be deferred to the next fiscal year.
Friends, above examples are given only as a token. But when it comes to the question of wage revision, the same Finance Minister is taking alibi to give several reasons as to why the due share cannot be given to Bank Employees’ to meet their legitimate demand raised after five years.
In this regards, friends you will not only be surprised but will be insulted to go through the following data which shows the alarming disparities in the salaries of Govt. Officer/Clerk/Sub-staff and the Officer/Clerks/Sub staff working in the banks after VI Pay Commission.



BASIC  PAY
GRADE
PAY
DA ON
TA
DA
HRA
CCA
EDU.
TA                                   
NEWS
PAPER

WASH.
ALLOW                 
TOTAL
DIFF.
BANK
SUB-STAFF
5,850
NIL
NIL
5,844
585
NIL
NIL
225
150
100
12,754

GOVT
SUB-STAFF
5,200
1,800
390
4,550
2,100
NIL
NIL
600
NIL
NIL
14,640
1,886
BANK
CLERK
8,000
NIL
NIL
7,992
800
NIL
NIL
225
150
NIL
17,167

GOVT.
CLERK
8,770
2,400
1,280
8,936
3,156
NIL
NIL
1,600
NIL
NIL
26,142
8,975
BANK
OFFICER
14,500
NIL
NIL
14,485
1,232
580
NIL
NIL
250
NIL
31,047

GOVT.
OFFICERS
20,650
4,800
1,280
20,360
7,635
NIL
NIL
1,600
NIL
NIL
56,325
25,278

Surprisingly, Mr. Chidambaram happens to be the head of both the categories of employees’ and has already declared the VII Pay Commission with fabulous offer in advance. Destined to widen this gap in the salaries of Government Employees’ and bankmen, we now draw the attention of Mr. Chidambaram that in his move to decide the stipulated norms for minimum wages, the salaries of bankmen will be brought even below down to minimum wages! While Mr. Chidambaram is blind to above stark realities of disparities on salary, he his equally seen unconcerned about the kind of deteriorating service conditions of bankmen, which includes the additional duties, onerous responsibility and accountability in every parameter of banking, the acute shortage of staff, over increasing bank services financial risks and unabated branch expansion program. Probably, he seems to have developed notion that the bankmen cannot be the vote bank but seems to be oblivious that bankmen will play the key roles in furthering Government schemes like financial inclusion and disbursement of all kinds of Government subsides. It will not be out of place to mention here, that we have separately taken up the burning issues including ensuing wage negotiations through the labour wing of Congress Party with their helms of affairs i.e Smt. Soniaji Gandhi & Rahulji Gandhi with a request to advice suitably on following issues to Finance Ministry.       
1)    Proposed Wage Negotiation due in Banking.
2)    Recruitment to the extent of 7 lacs employees’/Officers.
3)    Up-gradation of Pension at par with Government Employees.
4)    Bonus as deffered wage by an Act.
5)    A relook into organizational matters in RRBs and nationalized Bank as a policy by Congress Party.
Friends, you will rather be surprised to know that in spite of bearing the burden if responsibilities and poor service condition, whether in metropolitan, urban or rural, the meager wage hike offered by Mr. Chidambaram to bankmen is only 11% of the Pay-slip component. The cost of one per cent increase in “pay-slip-component” would not be more than Rs. 310 crores for 8 lakh employees’ means that the total cost of 20% wage hike and cost would not exceed Rs. 6,200 cores which would be a very little residue after earmarking total dividend (major being transferred to Government coffers), provisioning for NPA and earmarking capital-infusion under Basel-norms. In fact our share should be decided on gross profit and not net profit as bankmen are not responsible for creation of NPAs.
                                            PSU BANKS PROFITABILITY (IN CRORES)

2011
2012
2013
GROSS PROFIT
99,981
116,335
121,943
PROVISIONS
55,080
  66,821
  71,360
NET PROFIT
44,901
  49,514
  50,583

Thus, we appeal to Mr. Chidambaram the Honorable Finance Minister, that he should not issue any anti bankmen statement to annoy them, otherwise he will face the wrath of employees’ and would be responsible for debacle of the Congress Party in the forthcoming election for his mindless statement on wages of bankmen.        
Friends, let us now emphatically give the slogan that Hello, Mr. Finance Minister you are, and you are ANTIBANKMEN.
Let us unite and fight this bureaucratic and bookish approach to achieve our REAL WAGES.
Thanking you,
Yours sincerely,
Subhash S.Sawant

General Secretaryz 

4 comments:

Anonymous said...

we hope god give sadbudhi to fm about banker.
i agreed we should approach rahulji for betterment of bankmen and nation.

why we are not trying to be included in pay commission

Anonymous said...

banker wages issue pending since last 18 months .we are deprived from 6 th pay commission benefit only due to finance minister ego who said banks profits have other claiments .we the young banker feel working condition must be good and equal to central govt
and need your interventions for justice of about 10 lacs + bank emplyoees.

Anonymous said...

Call indefinite strike and demand 50% wage hike so we can live in central govt employees society with dignity otherwise this discrimination should be disastrous to economy and us

Anonymous said...

Sawant sahib ko BOLDLY likhne ke liye badhai, WE all are united , I am a young Banker but believe in Unity . WE all Banker and Their Family are NOT VOTING for Congress and its allies in 2014 LS polls.
This letter will only be fruitful if We are given a respectable hike, otherwise LIKHTE TO BAHUT HAIN DOSTO...........