FOUR OFFICER Unions submitted the Common Charter of demands to
IBA today (30.10.2012) for the 7th Joint Note!!
HIGHLIGHTS!!
click the following link for the original document submitted to IBA
7th Joint Note
FOLLOWING IS TEXT format:
PART I
SALARY AND ALLOWANCES: BASIC PAY:
Date of effect – 01.11.2012
The last couple of revisions were an exercise of merging of DA payable upto a
certain level of CPI with Basic Pay and thereafter providing certain cushion (load)
for the construction of the scales with appropriate Increment pattern.
We need to take a fresh look at the way the scales have to be constructed with a
view to have higher start to ensure that the promotion provides reasonable
compensation to officers in comparison with award staff scale. The higher start will
provide proper differentials on promotion and motivation for promotion.
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The span of the scales should be redesigned to ensure that there is continuity in the
drawing of the increment without break even if the promotions are not assured to all
the Officers. One way of achieving this could be through the integration of the
scales and the other one would be to elongate the existing scales with annual
increments.
We tentatively suggest the merger of scales to reduce number of scales in tune with
the 6th Pay Commission. Further, there should be automatic movement to the pay of
immediate next higher scale in the revised two scale format. Accordingly, we
suggest that the present 7 scales be reduced to 2 scales as follows:
Scale I – Manager Grade – Integration of the present Scale I to IV
Scale II– Executives Grade – Integration of Scale V, VI & VII
GRADE PAY:
In order to provide higher emoluments on promotion as has been done in the case
of the Government servants at every scale/grade, we should introduce Grade Pay,
which will be a sort of incentive to the supervisory cadre for taking higher
responsibilities in the bank. It may be recollected that, until the introduction of Pillai
Committee Recommendations, the banks had a system of providing post
allowances in various forms which was taking care of the higher responsibilities and
was providing tremendous amount of satisfaction to supervisory cadre. Bank
Officers were also compensated earlier in case of transfer from State to State.
The quantum of grade pay should commensurate with and could be related to the
revised scales and refixed at the end of each scale within the merged scale. The
grade pay should be treated as pay for all purposes.
DEARNESS ALLOWANCE:
The existing Dearness Allowance is based on a formula arrived through the merger
of index at every revision. Taking into account the unabated price rise and
mounting inflation and the cascading effect that it has brought on the real value of
compensation though stated to be 100% need to be relooked as the erosion has
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hurt everyone. Hence the neutralization should be appropriately increased from the
present level. It is a mere arithmetical calculation and hence suffers from several
inequities. The inequities should be rectified by rationalizing the existing formula for
the purpose of calculation of the Dearness Allowance. The first and foremost
consideration should be to refix the compensation rate for every point of increase.
The current rate of 0.15 per slab of 4 points should be re-fixed for the purpose of post
merger neutralization instead of working out mere arithmetical equation. To be
specific the neutralization which is at present 100% should now be increased to
125%. The conversion factor should be recalculated accordingly.
The inflation figures are now arrived at fortnightly basis in order to workout the
economic growth of the country. The inflation is on a day to day basis and the
periodicity of price fluctuation is on day to day basis and in certain instance it is on
hourly basis. There has been no instance of the index coming down in the last
several years and it has been on the increase. The inflation should be compensated
then and there only. We feel that,once the figures are available for the purpose of
calculation of the monthly index – the Dearness Allowance should be worked out
and the compensation passed on to the workforce, on a monthly basis per point of
increase
Thanks to the introduction of technology in banking system the HRMS departments
are equipped with wonderful software and centralized payment system, where the
compensation is calculated within no time and the same is being passed on to the
members of the staff in almost all the banks. Hence, there is no problem in shifting
over from the current system of quarterly revision of dearness allowance to the
monthly revision. This is one way of reasonably protecting the real wages of the
workforce in the industry. The delay in announcing the index figures should be
compensated by paying arrears for the month the index figure relates.
Example: - For the month of June the figures are released on 31st July and DA is
applicable with effect from 1st August. We suggest that the DA should be
applicable with retrospective effect from 1st July to ensure virtual compensation for
the inflation.
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MERGER OF INDEX FOR THE PURPOSE OF CONSTRUCTION OF SCALES:
We propose that the average consumer price index for industrial workers for the quarter
ending 30th September 2012 which was at 4876 (1960=100) (rounded off) be taken for the
purpose of merger of Dearness Allowance for construction of Scales.
AUTOMATIC MERGER OF DEARNESS ALLOWANCE:
In line with the concept of pay Commission recommendations there should be mid
review of the scales by merging Dearness Allowance payable at the end of 2
½ years. To be specific the revision date is 01.11.2012 – up to 2 ½ years i.e., on 30th
April 2015 the Dearness Allowance payable to be merged and paid as revised pay.
The Principles adopted by the Pay Commission for the purpose of merger of DA and
other allowances should be followed Mutatis Mutandis in case of Bank Employees.
PROFESSIONAL QUALIFICATION PAY:
At present the Professional Qualification Pay is paid only in respect of CAIIB.
However, with the passage of time revolutionary changes have taken place in the
matter of banking business. The diversification, which we have witnessed, calls for
specialization in different academic fields. We therefore are of the opinion that the
officers should be adequately compensated for the various professional
qualifications they possess during their career in the bank apart from the existing
CAIIB qualifications.
We propose that the existing pattern should be revised as under:-
EXISTING REVISED
Part I One increment One increment
Part II One increment Two increments.
The current system of payment of PQP should be revised as under:
Part I - The PQP should be equal to the amount of the last one increment drawn at
the end of the new scale.
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Part II - The PQP should be equal to 2 increments in the last stage of the scale (Part I
- one increment and Part II two increments total – 3 increments)
The additional increments shall be granted for acquiring additional qualifications in
Business Management, CISA, Treasury Management, Technology, MCA, LLB, RISK,
Audit, Costing, HR etc and be considered for sanction of PQP on reaching
maximum in the scale.
FIXED PERSONAL PAY (FPP):
We propose that FPP should be treated on par with PQP in respect of fitment of
Basic Pay on promotion and payment of all other allowances. The fixed character
now in existence should be done away with. The FPP shall be reworked on
promotion. FPP should be defreezed and the last increment in that scale coupled
with DA should be paid.
HOUSE RENT ALLOWANCE:
It is incumbent on the part of the banks to provide accommodation to each and
every officer wherever he is posted or wherever he desires to have his family
accommodated with a view to ensure that the medical and educational facilities
are not denied to them.
He should have the option of choosing the drawing of HRA or availing the housing
accommodation provided by the Bank. HRA should be paid as per the 6th Pay
commission on area wise basis.
The gap between the Housing accommodation provided on lease and the HRA
paid to them in lieu of Housing accommodation is so wide that the Officers feel that
they are discriminated when they opt for the receipt of HRA in lieu of the leased
housing accommodation. Hence the payment of HRA should have correlation to
the prevailing leased rentals.
The practice of deducting a portion of the Basic Pay towards the quarters / leased
accommodation / furniture provided should be done away with.
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HRA ON CAPITAL COST BASIS:
For the purpose of calculation of HRA on capital cost basis the present market value
of the property should be reckoned instead of the original cost of construction.
HRA linked to rent receipt / capital cost to be enhanced to 200% of the House Rent
Allowance.
USE OF OWN HOUSE IN LIEU OF LEASED ACCOMMODATION:
The Officer should have an option to offer his own house to the Bank for the purpose
of leasing and occupy the same to avoid frequent shifting of the house and also
have the opportunity of living in his own house.
OFFICIATING PAY:
The existing rate of officiating allowance should be re-fixed and the paltry
percentage prevailing at present should be revised to 10% of the last stage of the
Scale. This pay should be paid to all the officers who officiate in the next higher
grade even for a period of less than 7 days. The officiating allowance should be
treated as part of the pay for DA superannuation purpose also.
DIFFERENTIAL ON PROMOTION:
The differential on promotion from one Scale to other in the Officers Cadre should
be atleast equivalent to 20% of the Basic Pay and allowances last drawn. In any
case the differential should not be lower than the officiating allowance to ensure
against reduction of emoluments on promotion. A comprehensive fitment formula
should be evolved with the negotiating unions in the industry level.
CITY COMPENSATORY ALLOWANCE:
The existing classification of centre should be reviewed classified in the following
categories:-
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CATEGORY CENTRE
I Major Metro Kolkata, Delhi,Mumbai, Chennai,
Bangalore, Hyderabad, Ahmedabad,
Pune, etc.,
II M etros (Area I) All centres with more than 12 lakh
Population and State Capitals
III Centres with population of 1 lakh and above and all District Head quarters
RATES OF CITY COMPENSATORY ALLOWANCE:
Category I - 20% of Basic Pay
Category II - 17.5% of Basic Pay
Category III - 15% of Basic Pay
INCENTIVES FOR WORKING IN RURAL CENTERS AND OTHER SENSITIVE AREAS:
It is necessary to provide incentives to all those officers who are posted to serve in
the rural areas/most sensitive and difficult areas/ areas with security problems/ areas
of weather aberrations in different parts of the country.
We propose that the following incentive may be provided to the officer concerned;
An additional allowance to the extent of 20% of the Basic Pay drawn by him;
Weightage for the purpose of Promotion
Choice place of posting on completion of the assignment
An additional LTC to enable him to meet the family etc;
CLOSING ALLOWANCE:
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All officers irrespective of the office of posting/ i.e. branch/administrative office etc.,
should be paid the closing allowance equal to 15 days of their salary once in 3
months.
HALTING AND TRAVELLING ALLOWANCES
a. Review and rationalization of Halting/Boarding/Travelling expenses.
b. The Boarding expenses should be linked to lodging expenses.
c. The existing system of allowing banks to fix the rates of reimbursement
periodically should continue with a provision to review them annually.
d. All officers should be eligible for travel by Air, irrespective of distance with
Executive Class entitlement for Senior Management.
e. For places not connected by Air, Officers should be permitted to travel by
AC-Ist Class by rail.
DATE OF SANCTION OF ANNUAL INCREMENTS:
Increments falling due between 1st January to 30th June should be sanctioned on 1st
January of the year itself. Increments falling due between 1st July to 31st December
should be sanctioned on 1st July of the year itself.
PROTECTION OF ANNUAL INCREMENTS – STAGNATION RELEASED:
An allowance equal to the amount of last drawn increment should be granted
every year after reaching the maximum in the scale. The allowance so granted
should be treated as Basic Pay for all purposes.
REMOVAL OF EMBARGO ON SANCTION OF STAGNATION INCREMENTS, PQP AND
AUTOMATIC MOVEMENT:
The present Embargo in regard to the sanction of stagnation increment, automatic
movement and PQP in respect of those officers who have refused promotion
should be removed.
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PART- II
PERQUISITES, OTHER ALLOWANCES AND WELFARE FACILITIES:
The perquisites and other allowances as well as welfare facilities provided by the
banks and settled at the industry level should not be reckoned for the purpose of
arriving at the cost of wage revision. It is an essential area of functional expenditure,
as in the case of business promotion in other sectors of the economy. We therefore
propose that the following benefits should be treated under this heading. The Bank
should bear the tax on perquisites.
POST ALLOWANCE:
Post allowance should be reintroduced in order to provide incentive for officers for
working in the most competitive sector, to compensate him for taking additional
load on account of diversification, technology initiative etc.,
i. 25% of the Basic Pay should be paid as post allowance to all designated
officers viz., Branch Managers, Divisional Managers, etc.,
ii. 20% of the basic to other officers.
RISK ALLOWANCE :
Risk Allowance should be introduced to provide cover to all lending risks to all
sanctioning authorities at all grades as present dynamics of banking involves various
types of risks beyond the normal prudence of banking.
Disturbed Area Allowance :
Disturbance Area Allowance of 20% of Basic Pay should be paid to officers working
in the branches which comes under disturbed area and Terrorist prone areas
called as The Red Corridor.
MEDICAL REIMBURSEMENT:
The existing Medical benefits should be rationalized as under:
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The family of the Officer, which includes the spouse, the parents, the dependent
unmarried children including step children and legally adopted children, physically
challenged brothers / sisters with 40% or more disability should be extended 100%
reimbursement for the purpose of hospitalization as well as domiciliary treatment.
This should continue even after retirement.
The definition should be further enlarged to include deserted widowed sisters ,
daughters and unmarried brothers and sisters without physical disability.
Reimbursement of annual medical aid should be enhanced.
The IBA should also take immediate steps to revise the existing norms in respect of
the income criteria in respect of the dependents and the same should be increased
suitably.
HOSPITALISATION CHARGES:
Reimbursement of domiciliary treatment and hospitalization – diagnostic
investigations etc., should be actual expenditure incurred by delinking from the
AIIMS rates. The rates so fixed should be revised annually.
Comprehensive Review to be made to include Hi-tech investigations, surgeries and
ailments which are not presently covered under the scheme. Reimbursement
towards ailments under Dental, Ophthalmic, Orthopedics, which do not require
hospitalization should also be considered under the scheme.
Master Health Check-up for the officer and his / her spouse once in two years if the
officer’s age is less than 50 and every year if the officer crosses 50 years of age.
LEAVE FARE CONCESSION:
We need to review the existing scheme in a comprehensive manner.
The entitled mode of travel should be made as air travel to all officers
For Senior Management Cadre it can be executive class.
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The encashment of leave fare concession should be the actual expenditure he /
she would have incurred had the officer traveled actually by entitled class.
Foreign Travel to be allowed within the entitlement upto the maximum distance
permissible in India.
The IBA should take up with the Government and seek exemption from payment of
income tax whenever the amount is drawn on the basis of encashment.
SPECIAL ALLOWANCES:
The existing special allowances paid to different places should be revisited and
revised in a comprehensive manner for example in places like J &K, Sikkim, North
Eastern States, Himachal Pradesh, Andaman & Nicobar Islands, Lakshadweep, the
red corridor and other similar centers.
The hardship allowance should be redefined and new areas should be added on
the basis of the norms already available. It should also be revised wherever it is
already being paid.
All the officers serving in those places should also get these allowances in order to
meet the higher cost of living etc., and wherever it is paid, it should be suitably
reviewed.
EXGRATIA:
The concept of minimum exgratia should be reintroduced in a rational manner.
Exgratia is now available to all the Employees in Private Sector Banks, Foreign Banks
etc., which has created a serious differential in the emoluments between the
workforce in the Public Sector and other sectors. It is also prevalent in Govt. Sector
such as Railways/ Postal and in Public Sector Undertakings. Hence, an amount
equivalent to not less than one month’s gross salary should be paid as exgratia to
all.
COMMERCIAL BANKING ALLOWANCE:
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In view of the onerous responsibilities of conducting commercial banking operations
involving risk, officers should be paid Commercial Banking Allowance as prevailing
in the Reserve Bank of India. (Central Banking Allowance)
PART III
ISSUES CONCERNING LADY OFFICERS:
Thanks to the awareness that has been created amongst the women in the country
over the last several years to excel on par with men in all walks of life, the intake of
the lady officers in the banking industry has very substantially increased in almost all
the banks. It is nearly 50% of the total recruitment in some of the banks and it may
increase in due course due to the changing demographic profile of employable
educated youth.
They are also to-day accepting challenging postings, transfers, and specialized
areas in the banks without any hesitation. They are now in a position to accept
higher responsibility in their career and look to head the institutions eventually.
The Officers Organisations have been receiving a number of representations,
memorandum and also resolutions highlighting the problems of the lady officers
through the various conferences as well as the Women’s wing. Based on these
feelers and suggestions, it has been decided to exclusively devote a chapter to
consider their special situation and demand appropriate relief from the Indian
Banks’ Association.
(a) PLACEMENT AND POSTINGS:
One of the major concerns of the lady Officers has been their placements and
postings in the banks. The country is yet to develop in the matter of infrastructure,
the facilities exclusively to the lady members in different places. Hence, a separate
Transfer / placement Policy taking into account the problems of the lady officers
should be designed and forwarded to the member banks by IBA. The IT sector is a
classical example where a lot of sympathy is shown to the women employees in the
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matter of posting and placement in order to get the best from them. Yet another
major consideration is their safety and security at different centers.
The lady Officers need to be extended the benefit of flexi-time and flexi-place
concept. They should be given choice of their place at the time of transfer and
placement keeping their difficulties in view. The Banks should be advised to keep
one exclusive lady Officer in charge of Personnel Administration in all the Banks to
attend to their exclusive issues including transfer, placement etc.
The lady Officers whose spouses are working elsewhere should be accommodated
at the same place. Similarly, where the wife and husband are employed in the
same bank, they should also be accommodated at the same centre.
(b) PROVISION OF CRECHE FACILITY:
The Banks should provide Creche facility for the benefit of children of lady Officers
who are required to attend to office as the children need parental attention.
(c) LEAVE FACILITIES:
The existing Maternity Leave of 6 months at a time should also be extended in case
of adoption of a child (from present 3 months).
3 months’ additional sick leave be sanctioned after attaining the age of 45 years as
lady officers are prone to diseases at this age.
Child Care leave as applicable to the Central Government employees should be
made available to lady officers.
(d) PATERNITY LEAVE:
The Paternity leave of 30 days should be introduced for officers on 2 occasions.
(e) LFC/HTC:
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Spouse employed in the same bank to be permitted to avail LFC separately as per
individual eligibility. The lady officers should be permitted to take their dependent
parents and parents in law along with them on LFC/LTC.
(f) DEFINITION OF FAMILY:
The parents, father-in-law & mother-in-law, dependent of an officer, sons and
daughters, brothers and sisters divorced or deserted, daughters or sisters etc to be
treated as members of family for the purpose of LFC/HTC and medical facilities.
PART IV
SUPERANNUATION BENEFITS:
The employer has an obligation to ensure that the employees having served the
institution almost life time are provided adequate superannuation benefits so that
they are able to live a life of dignity, honour and above all a comfortable life for
having given their blood and sweat to the institution.
The superannuation expenditure cannot be considered as a cost and be made
subject matter of negotiations. The compensation paid in the form of
superannuation have been described by the highest court of the country as
deferred wages paid to all those who served the institution with devotion and
conviction for ensuring the prosperity, not only for the institution but the nation as
well.
At present, the Banking Industry has provided for the benefit of Gratuity, the
Provident Fund or Pension, Leave Encashment at the time of retirement, Medical
facilities, and several other welfare facilities.
We strongly feel that there has to be an exclusive and a comprehensive dialogue
between the Officers Organisations and IBA as to the improvements that are
required to be made in the present superannuation benefits.
PENSION:
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The Banking Industry has introduced the Pension Scheme with effect from 1.1.1986
after protracted discussions and negotiations between the Officers’
Organizations/unions and the Indian Banks’ Association in the year 1993. The
Pension Scheme has remained as such since the beginning of the scheme in the
Banking industry.
The Government servants have seen two pay commissions during this period and if
we consider the date of implementation as 1.1.1986 there have been 3 Pay
Commission reports providing very comprehensive improvements in the
superannuation benefits to the civil servants in the Government.
The Pay Commissions have taken a very pragmatic view in the last 3 Pay
Commission Reports and have made very substantial changes in the scheme. There
is a need to take the same view as regards the Pensioners in the banking industry as
well.
The periodical review of Pension scheme is the responsibility of the Managements of
the Banks. It cannot be tagged to bipartite settlements which has adversely
affected the pensioners and ultimately the pension scheme remain as an archaic
one in the Banking Industry. As and when there are improvements in the central
Govt. Pension scheme, the IBA should invite the negotiating unions and implement
the same
Pension consists of the following parts:-
a. Basic Pension
b. Commutation
c. Dearness Allowance
The Basic Pension is calculated on the basis of the last drawn 10 months’ average
pay by the retirees or the last pay drawn whichever is beneficial to the retiree. The
formula has remained the same.
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The Government servants have been provided the benefit of updating of pension
at periodical intervals to provide sufficient cushion against inflation and cost of
living.
Dearness Allowance be converted as Basic Pension as and when the cost of living
index increases by about 50%. The Pensioner will therefore have the benefit of
enhanced Dearness Allowance and it provides a small cushion against the inflation.
The other method adopted by the Government is to bring all the pensioners on a
uniform scale by merging the Dearness Allowance at the time of revision as
recommended by the Pay Commission. The facility of upgradation of pension
above the age of 80 years be made available to Bank Officers as prevalent in
Government. We therefore suggest as follows:-
BASIC PENSION:
Improve the present Basic Pension in respect of all the earlier retirees on the basis of
the merger of Dearness Allowance at a level to be decided by mutual
understanding between the IBA and the Officers’ organizations and unions.
COMMUTATION:
The present rate of Commutation has to be revised to 40% with the existing
conversion factor. The full pension be restored after 10 years.
DEARNESS ALLOWANCE:
The DA formula and neutralization should be at par with serving officers.
GENERAL:
The voluntary retirement provided in the Officers Service Rules should be
incorporated in the Pension rules and they should also be made eligible for Pension
without any discrimination.
Pension scheme should be extended to all those who have been denied earlier on
the basis of the misinterpretation of the understandings reached with IBA in
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particular those who retired under voluntary retirement scheme as per the service
regulations / resigned after completing 20 years.
The officers who joined the bank between 01.11.1993 and 26.01.1996 have to be
covered under the pension regulations.
Provision of additional service as per the Pension Regulations to the extent of 5 years
should be extended to each and every retirees in the banking industry.
Those having relaxation of age at the time of recruitment on account of disability
etc., also to be extended additional period of 5 years to his / her service qualifying
for pension.
Also, for Ex-servicemen their past services rendered in the Armed Force should be
added to his / her service for qualifying for pension.
FAMILY PENSION:
The Family Pension should be on par with the Government and be at 30% of last
drawn pay by the officer across the board to every one. The regular family pension
will be payable for 10 years or till the 70th year of notional age of the deceased.
NEW PENSION SCHEME
The employees and officers who joined the banking industry on or after 01.04.2010
should be governed by the original pension settlement signed on 29th October 1993
and Gazetted in the year 1995.
GRATUITY:
The Gratuity should be paid at the rate of one month salary and allowances without
any ceiling. The gratuity should be completely exempt from payment of income
tax.
PROVIDENT FUND:
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The Provident Fund should be at the rate of 12% of the total salary and allowances.
The Provident Fund should be payable to all employees.
ENCASHMENT OF LEAVE:
Encashment of entire leave at credit should also be permitted on resignation,
removal and compulsory retirement.
The existing ceiling on encashment of leave should be enhanced to 360 days at the
time of resignation / superannuation. The entire amount should be exempted from
income tax as in the case of the Central Government Employees.
MEDICAL BENEFIT SCHEME:
A comprehensive Medical Scheme for pensioners/ retirees should be framed and
introduced in all the banks as available now in the case of executive directors and
CMDs of the Banks.
WELFARE ACTIVITIES:
A separate allocation of funds for improvements to welfare of the pensioners should
be made every year. The facilities like Holiday Home, clinics, Transit House etc.,
should be made eligible for pensioners also.
LFC/ HTC FACILITY:
LFC / HTC Facility should be extended to the retirees also at par with serving
employees.
Part V
NON - MONETORY – ISSUES RELATING TO WORKING ENVIRONMENT ETC.,
GENERAL ENVIRONMENT – AMBIENCE – WORKING HOURS ETC.,
It is the duty of the banks to provide an appropriate environment, ambience and
above all the HR systems at all branches. The officers’ fraternity should also be
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provided with all amenities such as supply of refreshment, beverages etc., inside the
branch premises in view of the pressure of work, long stay in the office etc.,
The environment should afford an opportunity for full exposure of the creativity and
also efficiency of the officers while discharging their duties to the customers as well
as the branches.
The banking industry is now equipped with excellent technology advancement,
continuous updation of computers, servers etc., there is therefore a need for the
Management to adopt appropriate HR initiatives to encourage and motivate the
Officers to acquire knowledge in these fields and give their best to the institution.
The Banking Industry is entrusted with the responsibility of enhancing the economic
prosperity of the country and also the GDP growth with a view to enhance the
standard of living of the common man. The management should ensure that
reasonable working hours are fixed rather than pressurizing the officers which may
lead to failure and resultant loss of health or upset the officers’ routine. Hence, the
working hours for officers should be defined and regulated.
5 DAYS WEEK:
Five Day week is already available in the international banking system. It is also
available in our country in RBI, Central and State Governments and in Public Sector
Undertakings. Hence, it should be introduced immediately in the entire banking
industry.
The working hours should not exceed 36.5 hours in a week. The daily working hours
should not be more than 6.5 hours in the normal course.
Any working hours, more than 7 hours a day, should be compensated monetarily to
the extent of twice the actual hourly salary in the normal course.
They should also be made eligible to take weekly off to the extent of additional
hours of duty rendered by them.
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The Officers who are called upon to work on weekly-off days and holidays, should
be compensated as above and in addition be permitted a compensatory off on a
date convenient to them and such weekly offs be credited to the leave account.
LEAVE RULES:
The existing leave rules will have to be comprehensively reviewed and made
officers friendly and flexible as available in several other sectors of the economy.
The availing of leave should be made flexible. The officers should be free to avail
the leave as and when required. They should also have the benefit of splitting the
day into hours and half-day, full-day etc., and longer period as in the case of
several other corporates.
TYPES OF LEAVE:
The existing system of maintaining separate leave accounts may be done away
with. A common account of leave should be introduced where they should be
able to combine all types of leave into total number of days of leave available to
them and use the same as per their own requirement.
However for the purpose of better understanding we re-produce the types of leave
available and the need to review the same.
a. Casual leave should be increased to 15 days;
b. Privilege Leave – 33 days in a year.
c. Sick Leave 15 days in a year ( on full pay) without any ceiling;
d. Restricted holidays: A minimum of 10 days in a year for festivals and other
personal, religious functions etc., may be permitted to be availed as holidays
by the officers.
e. Special leave for study, sports, social and cultural activities
f. Leave on loss of pay
g. Sabbatical leave
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INTRODUCTION OF LEAVE BANK:
The leave so calculated should be credited to the leave account of the officer on a
consolidated basis. The officer should be eligible to avail the leave on the basis of
his requirement. The intermittent holidays and weekly offs should be excluded while
sanctioning leave.
The Officer should have the opportunity of encashing the balance available in the
consolidated leave account once in a year to the extent of 50% of the leave
available in his account at the beginning of the subsequent year. Further, an officer
should be permitted to encash the entire leave at his credit at the time of retirement
including sick leave and no ceiling should be imposed for accumulation of leave.
The officer may be permitted to transfer leave to another officer in case of need for
medical purpose.
OUTSOURCING :
Work done on a regular basis should not be outsourced.
DISCIPLINARY RULES PROCEDURE:
We have submitted a very comprehensive note to the Indian Banks’ Association for
the review of the existing conduct rules and procedure and to introduce certain
changes in tune with the changing environment. (Copy enclosed) The issue should
be discussed for implementation.
ADMINISTRATIVE TRIBUNALS:
The IBA should take up with the Government, the introduction of an exclusive
Banking Administrative Tribunal for the banking Industry in order to deal with all the
service as well as disciplinary matters in respect of officers similar to Central
Administrative Tribunal.
Discussion of Disciplinary Action procedure
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An exclusive exercise should be carried out by IBA for bringing appropriate
amendments in the Discipline and Appeal Regulations in due consultation with all
the Four Officers’ Organisations.
PART VI
GENERAL BILATERAL RELATIONSHIP:
The 7th Joint Note exercise on Officers wage revision when resume, will have a
historical significance in the sense that the Management and the Officers’
organizations have come a long way in the structured negotiation systems and
have matured enough to decide and arrive at a compensation which is generally
acceptable to both the parties. In the process we need to have a clear
demarcation as regards the issues concerning the Officers’ fraternity and Officers’
organizations should have exclusive right to negotiate on behalf of the officers in the
banking industry. Hence, all the issues connected with both the directly recruited
officers as well as the Officers promoted from clerical cadre have to be decided
between the IBA and the Officers’ organizations. For example, the fitment formula,
which is now in a state of confusion, will have to be discussed and settled between
the Officers’ organizations and the IBA. Similarly the issues of promotion policy,
transfer policy, etc., will have to be settled bilaterally with Officers’ organizations
both at the bank and the industry level.
STRUCTURED FORUM AND ACCOUNTABILITY FOR SETTLEMENT:
The Officers’ organizations have been holding discussions and negotiations with the
representatives of the Indian Banks’ Association over the last 40 years. The system
has got itself streamlined during the last 3 decades and the issues that are related to
the compensation and also certain issues of urgent nature are brought to the IBA
forum and decided between both the parties. There is a need to structure this
conventional arrangement and ensure that all issues affecting the industry and the
impact of the directives of the outside agencies on the officers’ fraternity are
brought to this structured forum and decided to avoid unnecessary irritations in
30
industrial relations in the banking industry. The proper detailed and codified account
of all discussion should be exchanged.
The structured forums are already in vogue in all the banks. The issues referred to
the banks by the IBA and the Government is discussed at the bank level
negotiations by each organization which leads to discrepancies in the
implementation of any understandings reached between the organizations and the
management.
Certain Industry level issues have to be discussed at IBA / Government Level.
Hence, there is a need to have structured forum at IBA / Government for periodical
discussions. Hence, there is a need to bring all such issues/directives of the IBA and
the Government before a structured meeting and settle to avoid frequent agitation
and industrial unrest in the banking industry.
RECRUITMENT / RETIREMENT:
The Banking industry is in doldrums due to inadequacy of the workforce. The
lopsided policies and the conventional approach of the Government and the
Managements of the banks at the instance of the IBA and the Ministry of Finance
have created a big gap in the average age of the various groups of employees in
the banks. There were no recruitments virtually for more than 2 decades and as a
result, the age difference between the old employee and the new employee is so
wide that the average age of the workforce is adversely affected.
A close review of the situation should be considered and necessary steps to be
taken for a pragmatic succession plan. The large scale retirement is adversely
affecting the workforce since experienced hands are getting retired where as a
large chunk of new recruits are forced to take up higher positions and the
promotions are getting accelerated in comparison with the earlier situation thereby
causing serious problems of seasoning and grooming of higher level officers in the
banking industry.
A crash programme should be worked out to tackle this serious issue.
31
In view of shortage of manpower, the retirement age should be re-fixed. We have
the following suggestions:-
VOLUNTARY RETIREMENT:
Redefine the voluntary retirement and re-fix the minimum eligibility for the purpose.
AGE OF SUPERANNUATION:
The age of superannuation to be raised to 65 years for all officers.
WITHHOLDING OF GRATUITY ON RETIREMENT / RELEASE OF TERMINAL BENEFITS :
The present adhoc system of withholding gratuity and harsh decision to set off the
gratuity amount towards loss caused etc., should be reviewed keeping in view, the
recent judicial pronouncements. In any case, there should not be stoppage or
denial of gratuity to the officers.
No disciplinary action should be initiated after superannuation.
All Terminal benefits should be released pending disciplinary proceedings if bank
fails to complete the proceedings before superannuation as is being done in the
case of CBI cases being pending.
WELFARE FACILITIES:
CEILING :
Present Ceiling of 3% of net profits to be increased to 5% of net profit without any
ceiling.
LIFE COVER :
Suitable Life Cover should be taken for normal as well as accidental death.
REVIEW OF LOANS AND ADVANCES :
32
In view of the increase in cost of construction of house and flats, we need to have a
comprehensive review of House Building Advance to officers by suitably enhancing
the limit to Rs.50 lacs at Simple rate of interest without any slab.
Since the Conveyance Loan has not been revised for long, we need to enhance
the Car Loan limit to Rs.10 Lacs and Two Wheeler Loan limit to Rs.1 lac at Simple rate
of interest without any slab.
The repayment of the above loans should be extended upto 75 years of age.
ROAD TAX ON VEHICLES:
In view of All India transferability of officers, the Road tax on vehicles of different
States should be paid by the bank on inter-state transfers.
DATE OF RETIREMENT:
Those who were born on the 1st of a month to be retired on the last day of the same
month, and not the previous month.
PROTECTION OF EMOLUMENTS:
The emoluments drawn by an Officer should be protected on his transfer from one
place to another.
TRANSPORTATION OF PERSONAL BELONGINGS:
The Banks should take the responsibility for shifting the personal effects of the officers
on transfer from one place to another. In the absence of such facility, the Officers
should be reimbursed the full expenditure on certificate basis.
INCIDENTAL EXPENDITURE ON TRANSFER:
To meet additional expenditure towards education of children, housing etc., officers
should be paid two months’ salary to compensate incidental expenses on transfer.
In case of transfer outside the State, 3 months' salary should be paid towards
incidental expenses. In case of transfers to far off centers and the places of
33
inclement weather and living conditions, there has to be high compensation as
incidental expenditure on transfer.
OTHER ALLOWANCES SUCH AS HILL AND FUEL ETC.
All the allowances other than what have been covered in the earlier chapters
should be enhanced appropriately.
AREAS DECLARED AS SEZ/NEZ/EPZ:
The branches coming under the above areas should be treated on par with Metro
Centres for all allowances and perquisites.
SPECIAL ALLOWANCE TO NORTH EAST, SIKKIM AND OTHER DISTURBED AREAS / NAXAL
PRONE AREAS:
Special allowance as prevailing in Central Government/RBI for Officers serving in
these areas should be extended to Bank Officers.
IMMUNITY FROM TRANSFER POLICY, SPECIAL PRIVILEGES TO OFFICE-BEARERS OF THE
ORGANIZATION:
In view of the positive role played by the Officers Organizations there is a need to
revise the existing arrangements as regards the special leave to the office-bearers
of the organizations. The existing arrangement is grossly inadequate in comparison
with the size and the growth of the banking industry and equally the membership of
the officers’ organization – the structure of the organization and hence appropriate
enhancement in the leave facility needs to be considered.
The senior office-bearers of the Officers’ organizations should have the duty off in
view of the fact that they will be dealing with all the personnel matters relating to
the officers’ fraternity and they may not be able to attend to their deskwork. If the
Office Bearers are denied this facility it would cause great harm to the
officers’ organizations in the banks.
34
The Office-bearers of Associations should be extended immunity from
transfer/placement. The Central /State level office-bearers should be given duty-off
on par with workmen organizations. The facility is due for review.
THE LOAD FACTOR:
The negotiations on cost of salary revision should be confined only for the purpose of
deciding the load factor in respect of Basic Pay and Dearness Allowance.
DATE OF EFFECT:
The date of effect for implementation of the settlement on the basis of the charter
of demands should be from 1.11.2012.
RIGHT TO SUBMIT SUPPLEMENTARY CHARTER:
The Officers’ Organizations reserve the right to include, amend or alter the
demands, as made out in the Charter during the course of bilateral discussions.
All anomalies arising out of Salary Revision should be resolved irrespective of the cost
factor involved.
Long pending issues on regulated working hours, 5 days week and standardization
of retirement benefits and improvement in compassionate Appoint Scheme should
be discussed before commencement of regular wage revision negotiations.
(P.K.SARKAR) (D.S. RISHABADAS) (S. NAGARAJ)
CONVENOR GENERAL SECRETARY GENERAL SECRETARY
UFBU AIBOC AIBOA
(K.K. NAIR) (S. U. DESHPANDE)
GENERAL SECRETARY GENERAL SECRETARY
INBOC NOBO
Mumbai 30.10.12
-------------------------------------
IBA today (30.10.2012) for the 7th Joint Note!!
HIGHLIGHTS!!
Regulated
Working Hours – 36.5 hours a week demanded
· Scale Merger - Scale 1 to 4 and Scale
5 to 7.
· Merger of DA - September 2012 -4876
points.
· Change in the Pattern of DA
Compensation.
· Introduction of Grade pay.
· PQP & FPP –
compensation redefined
· Hike in HRA as per 6th Pay Commission and introduction of
Self Lease.
· Introduction of Incentive for working
in Rural Areas.
· Post Allowance, Risk Allowance are to
be introduced.
· Improvement in Hospitalization Scheme
· Improvements in LFC – mode of
travel etc.,
· Introduction of Ex-gratia.
· Introduction of new facilities
For Lady Officers
· Appropriate up gradation of the Leave
entitlements.
· Increase in the incidental
expenses on transfer.
· Roll Back to old pension scheme for
those who joined on or after 1.4. 2010 from new pension scheme.
· Gratuity at one month for every
year of service without ceiling
· Terminal Benefits shall be
outside the load factor.
· Introduction of Banking Administrative
Tribunal.
· Up gradation of pension for
pensioners.
· LFC and Hospitalization for Retired
Employees
· Date of Effect 01.11.2012
click the following link for the original document submitted to IBA
7th Joint Note
FOLLOWING IS TEXT format:
PART I
SALARY AND ALLOWANCES: BASIC PAY:
Date of effect – 01.11.2012
The last couple of revisions were an exercise of merging of DA payable upto a
certain level of CPI with Basic Pay and thereafter providing certain cushion (load)
for the construction of the scales with appropriate Increment pattern.
We need to take a fresh look at the way the scales have to be constructed with a
view to have higher start to ensure that the promotion provides reasonable
compensation to officers in comparison with award staff scale. The higher start will
provide proper differentials on promotion and motivation for promotion.
9
The span of the scales should be redesigned to ensure that there is continuity in the
drawing of the increment without break even if the promotions are not assured to all
the Officers. One way of achieving this could be through the integration of the
scales and the other one would be to elongate the existing scales with annual
increments.
We tentatively suggest the merger of scales to reduce number of scales in tune with
the 6th Pay Commission. Further, there should be automatic movement to the pay of
immediate next higher scale in the revised two scale format. Accordingly, we
suggest that the present 7 scales be reduced to 2 scales as follows:
Scale I – Manager Grade – Integration of the present Scale I to IV
Scale II– Executives Grade – Integration of Scale V, VI & VII
GRADE PAY:
In order to provide higher emoluments on promotion as has been done in the case
of the Government servants at every scale/grade, we should introduce Grade Pay,
which will be a sort of incentive to the supervisory cadre for taking higher
responsibilities in the bank. It may be recollected that, until the introduction of Pillai
Committee Recommendations, the banks had a system of providing post
allowances in various forms which was taking care of the higher responsibilities and
was providing tremendous amount of satisfaction to supervisory cadre. Bank
Officers were also compensated earlier in case of transfer from State to State.
The quantum of grade pay should commensurate with and could be related to the
revised scales and refixed at the end of each scale within the merged scale. The
grade pay should be treated as pay for all purposes.
DEARNESS ALLOWANCE:
The existing Dearness Allowance is based on a formula arrived through the merger
of index at every revision. Taking into account the unabated price rise and
mounting inflation and the cascading effect that it has brought on the real value of
compensation though stated to be 100% need to be relooked as the erosion has
10
hurt everyone. Hence the neutralization should be appropriately increased from the
present level. It is a mere arithmetical calculation and hence suffers from several
inequities. The inequities should be rectified by rationalizing the existing formula for
the purpose of calculation of the Dearness Allowance. The first and foremost
consideration should be to refix the compensation rate for every point of increase.
The current rate of 0.15 per slab of 4 points should be re-fixed for the purpose of post
merger neutralization instead of working out mere arithmetical equation. To be
specific the neutralization which is at present 100% should now be increased to
125%. The conversion factor should be recalculated accordingly.
The inflation figures are now arrived at fortnightly basis in order to workout the
economic growth of the country. The inflation is on a day to day basis and the
periodicity of price fluctuation is on day to day basis and in certain instance it is on
hourly basis. There has been no instance of the index coming down in the last
several years and it has been on the increase. The inflation should be compensated
then and there only. We feel that,once the figures are available for the purpose of
calculation of the monthly index – the Dearness Allowance should be worked out
and the compensation passed on to the workforce, on a monthly basis per point of
increase
Thanks to the introduction of technology in banking system the HRMS departments
are equipped with wonderful software and centralized payment system, where the
compensation is calculated within no time and the same is being passed on to the
members of the staff in almost all the banks. Hence, there is no problem in shifting
over from the current system of quarterly revision of dearness allowance to the
monthly revision. This is one way of reasonably protecting the real wages of the
workforce in the industry. The delay in announcing the index figures should be
compensated by paying arrears for the month the index figure relates.
Example: - For the month of June the figures are released on 31st July and DA is
applicable with effect from 1st August. We suggest that the DA should be
applicable with retrospective effect from 1st July to ensure virtual compensation for
the inflation.
11
MERGER OF INDEX FOR THE PURPOSE OF CONSTRUCTION OF SCALES:
We propose that the average consumer price index for industrial workers for the quarter
ending 30th September 2012 which was at 4876 (1960=100) (rounded off) be taken for the
purpose of merger of Dearness Allowance for construction of Scales.
AUTOMATIC MERGER OF DEARNESS ALLOWANCE:
In line with the concept of pay Commission recommendations there should be mid
review of the scales by merging Dearness Allowance payable at the end of 2
½ years. To be specific the revision date is 01.11.2012 – up to 2 ½ years i.e., on 30th
April 2015 the Dearness Allowance payable to be merged and paid as revised pay.
The Principles adopted by the Pay Commission for the purpose of merger of DA and
other allowances should be followed Mutatis Mutandis in case of Bank Employees.
PROFESSIONAL QUALIFICATION PAY:
At present the Professional Qualification Pay is paid only in respect of CAIIB.
However, with the passage of time revolutionary changes have taken place in the
matter of banking business. The diversification, which we have witnessed, calls for
specialization in different academic fields. We therefore are of the opinion that the
officers should be adequately compensated for the various professional
qualifications they possess during their career in the bank apart from the existing
CAIIB qualifications.
We propose that the existing pattern should be revised as under:-
EXISTING REVISED
Part I One increment One increment
Part II One increment Two increments.
The current system of payment of PQP should be revised as under:
Part I - The PQP should be equal to the amount of the last one increment drawn at
the end of the new scale.
12
Part II - The PQP should be equal to 2 increments in the last stage of the scale (Part I
- one increment and Part II two increments total – 3 increments)
The additional increments shall be granted for acquiring additional qualifications in
Business Management, CISA, Treasury Management, Technology, MCA, LLB, RISK,
Audit, Costing, HR etc and be considered for sanction of PQP on reaching
maximum in the scale.
FIXED PERSONAL PAY (FPP):
We propose that FPP should be treated on par with PQP in respect of fitment of
Basic Pay on promotion and payment of all other allowances. The fixed character
now in existence should be done away with. The FPP shall be reworked on
promotion. FPP should be defreezed and the last increment in that scale coupled
with DA should be paid.
HOUSE RENT ALLOWANCE:
It is incumbent on the part of the banks to provide accommodation to each and
every officer wherever he is posted or wherever he desires to have his family
accommodated with a view to ensure that the medical and educational facilities
are not denied to them.
He should have the option of choosing the drawing of HRA or availing the housing
accommodation provided by the Bank. HRA should be paid as per the 6th Pay
commission on area wise basis.
The gap between the Housing accommodation provided on lease and the HRA
paid to them in lieu of Housing accommodation is so wide that the Officers feel that
they are discriminated when they opt for the receipt of HRA in lieu of the leased
housing accommodation. Hence the payment of HRA should have correlation to
the prevailing leased rentals.
The practice of deducting a portion of the Basic Pay towards the quarters / leased
accommodation / furniture provided should be done away with.
13
HRA ON CAPITAL COST BASIS:
For the purpose of calculation of HRA on capital cost basis the present market value
of the property should be reckoned instead of the original cost of construction.
HRA linked to rent receipt / capital cost to be enhanced to 200% of the House Rent
Allowance.
USE OF OWN HOUSE IN LIEU OF LEASED ACCOMMODATION:
The Officer should have an option to offer his own house to the Bank for the purpose
of leasing and occupy the same to avoid frequent shifting of the house and also
have the opportunity of living in his own house.
OFFICIATING PAY:
The existing rate of officiating allowance should be re-fixed and the paltry
percentage prevailing at present should be revised to 10% of the last stage of the
Scale. This pay should be paid to all the officers who officiate in the next higher
grade even for a period of less than 7 days. The officiating allowance should be
treated as part of the pay for DA superannuation purpose also.
DIFFERENTIAL ON PROMOTION:
The differential on promotion from one Scale to other in the Officers Cadre should
be atleast equivalent to 20% of the Basic Pay and allowances last drawn. In any
case the differential should not be lower than the officiating allowance to ensure
against reduction of emoluments on promotion. A comprehensive fitment formula
should be evolved with the negotiating unions in the industry level.
CITY COMPENSATORY ALLOWANCE:
The existing classification of centre should be reviewed classified in the following
categories:-
14
CATEGORY CENTRE
I Major Metro Kolkata, Delhi,Mumbai, Chennai,
Bangalore, Hyderabad, Ahmedabad,
Pune, etc.,
II M etros (Area I) All centres with more than 12 lakh
Population and State Capitals
III Centres with population of 1 lakh and above and all District Head quarters
RATES OF CITY COMPENSATORY ALLOWANCE:
Category I - 20% of Basic Pay
Category II - 17.5% of Basic Pay
Category III - 15% of Basic Pay
INCENTIVES FOR WORKING IN RURAL CENTERS AND OTHER SENSITIVE AREAS:
It is necessary to provide incentives to all those officers who are posted to serve in
the rural areas/most sensitive and difficult areas/ areas with security problems/ areas
of weather aberrations in different parts of the country.
We propose that the following incentive may be provided to the officer concerned;
An additional allowance to the extent of 20% of the Basic Pay drawn by him;
Weightage for the purpose of Promotion
Choice place of posting on completion of the assignment
An additional LTC to enable him to meet the family etc;
CLOSING ALLOWANCE:
15
All officers irrespective of the office of posting/ i.e. branch/administrative office etc.,
should be paid the closing allowance equal to 15 days of their salary once in 3
months.
HALTING AND TRAVELLING ALLOWANCES
a. Review and rationalization of Halting/Boarding/Travelling expenses.
b. The Boarding expenses should be linked to lodging expenses.
c. The existing system of allowing banks to fix the rates of reimbursement
periodically should continue with a provision to review them annually.
d. All officers should be eligible for travel by Air, irrespective of distance with
Executive Class entitlement for Senior Management.
e. For places not connected by Air, Officers should be permitted to travel by
AC-Ist Class by rail.
DATE OF SANCTION OF ANNUAL INCREMENTS:
Increments falling due between 1st January to 30th June should be sanctioned on 1st
January of the year itself. Increments falling due between 1st July to 31st December
should be sanctioned on 1st July of the year itself.
PROTECTION OF ANNUAL INCREMENTS – STAGNATION RELEASED:
An allowance equal to the amount of last drawn increment should be granted
every year after reaching the maximum in the scale. The allowance so granted
should be treated as Basic Pay for all purposes.
REMOVAL OF EMBARGO ON SANCTION OF STAGNATION INCREMENTS, PQP AND
AUTOMATIC MOVEMENT:
The present Embargo in regard to the sanction of stagnation increment, automatic
movement and PQP in respect of those officers who have refused promotion
should be removed.
16
PART- II
PERQUISITES, OTHER ALLOWANCES AND WELFARE FACILITIES:
The perquisites and other allowances as well as welfare facilities provided by the
banks and settled at the industry level should not be reckoned for the purpose of
arriving at the cost of wage revision. It is an essential area of functional expenditure,
as in the case of business promotion in other sectors of the economy. We therefore
propose that the following benefits should be treated under this heading. The Bank
should bear the tax on perquisites.
POST ALLOWANCE:
Post allowance should be reintroduced in order to provide incentive for officers for
working in the most competitive sector, to compensate him for taking additional
load on account of diversification, technology initiative etc.,
i. 25% of the Basic Pay should be paid as post allowance to all designated
officers viz., Branch Managers, Divisional Managers, etc.,
ii. 20% of the basic to other officers.
RISK ALLOWANCE :
Risk Allowance should be introduced to provide cover to all lending risks to all
sanctioning authorities at all grades as present dynamics of banking involves various
types of risks beyond the normal prudence of banking.
Disturbed Area Allowance :
Disturbance Area Allowance of 20% of Basic Pay should be paid to officers working
in the branches which comes under disturbed area and Terrorist prone areas
called as The Red Corridor.
MEDICAL REIMBURSEMENT:
The existing Medical benefits should be rationalized as under:
17
The family of the Officer, which includes the spouse, the parents, the dependent
unmarried children including step children and legally adopted children, physically
challenged brothers / sisters with 40% or more disability should be extended 100%
reimbursement for the purpose of hospitalization as well as domiciliary treatment.
This should continue even after retirement.
The definition should be further enlarged to include deserted widowed sisters ,
daughters and unmarried brothers and sisters without physical disability.
Reimbursement of annual medical aid should be enhanced.
The IBA should also take immediate steps to revise the existing norms in respect of
the income criteria in respect of the dependents and the same should be increased
suitably.
HOSPITALISATION CHARGES:
Reimbursement of domiciliary treatment and hospitalization – diagnostic
investigations etc., should be actual expenditure incurred by delinking from the
AIIMS rates. The rates so fixed should be revised annually.
Comprehensive Review to be made to include Hi-tech investigations, surgeries and
ailments which are not presently covered under the scheme. Reimbursement
towards ailments under Dental, Ophthalmic, Orthopedics, which do not require
hospitalization should also be considered under the scheme.
Master Health Check-up for the officer and his / her spouse once in two years if the
officer’s age is less than 50 and every year if the officer crosses 50 years of age.
LEAVE FARE CONCESSION:
We need to review the existing scheme in a comprehensive manner.
The entitled mode of travel should be made as air travel to all officers
For Senior Management Cadre it can be executive class.
18
The encashment of leave fare concession should be the actual expenditure he /
she would have incurred had the officer traveled actually by entitled class.
Foreign Travel to be allowed within the entitlement upto the maximum distance
permissible in India.
The IBA should take up with the Government and seek exemption from payment of
income tax whenever the amount is drawn on the basis of encashment.
SPECIAL ALLOWANCES:
The existing special allowances paid to different places should be revisited and
revised in a comprehensive manner for example in places like J &K, Sikkim, North
Eastern States, Himachal Pradesh, Andaman & Nicobar Islands, Lakshadweep, the
red corridor and other similar centers.
The hardship allowance should be redefined and new areas should be added on
the basis of the norms already available. It should also be revised wherever it is
already being paid.
All the officers serving in those places should also get these allowances in order to
meet the higher cost of living etc., and wherever it is paid, it should be suitably
reviewed.
EXGRATIA:
The concept of minimum exgratia should be reintroduced in a rational manner.
Exgratia is now available to all the Employees in Private Sector Banks, Foreign Banks
etc., which has created a serious differential in the emoluments between the
workforce in the Public Sector and other sectors. It is also prevalent in Govt. Sector
such as Railways/ Postal and in Public Sector Undertakings. Hence, an amount
equivalent to not less than one month’s gross salary should be paid as exgratia to
all.
COMMERCIAL BANKING ALLOWANCE:
19
In view of the onerous responsibilities of conducting commercial banking operations
involving risk, officers should be paid Commercial Banking Allowance as prevailing
in the Reserve Bank of India. (Central Banking Allowance)
PART III
ISSUES CONCERNING LADY OFFICERS:
Thanks to the awareness that has been created amongst the women in the country
over the last several years to excel on par with men in all walks of life, the intake of
the lady officers in the banking industry has very substantially increased in almost all
the banks. It is nearly 50% of the total recruitment in some of the banks and it may
increase in due course due to the changing demographic profile of employable
educated youth.
They are also to-day accepting challenging postings, transfers, and specialized
areas in the banks without any hesitation. They are now in a position to accept
higher responsibility in their career and look to head the institutions eventually.
The Officers Organisations have been receiving a number of representations,
memorandum and also resolutions highlighting the problems of the lady officers
through the various conferences as well as the Women’s wing. Based on these
feelers and suggestions, it has been decided to exclusively devote a chapter to
consider their special situation and demand appropriate relief from the Indian
Banks’ Association.
(a) PLACEMENT AND POSTINGS:
One of the major concerns of the lady Officers has been their placements and
postings in the banks. The country is yet to develop in the matter of infrastructure,
the facilities exclusively to the lady members in different places. Hence, a separate
Transfer / placement Policy taking into account the problems of the lady officers
should be designed and forwarded to the member banks by IBA. The IT sector is a
classical example where a lot of sympathy is shown to the women employees in the
20
matter of posting and placement in order to get the best from them. Yet another
major consideration is their safety and security at different centers.
The lady Officers need to be extended the benefit of flexi-time and flexi-place
concept. They should be given choice of their place at the time of transfer and
placement keeping their difficulties in view. The Banks should be advised to keep
one exclusive lady Officer in charge of Personnel Administration in all the Banks to
attend to their exclusive issues including transfer, placement etc.
The lady Officers whose spouses are working elsewhere should be accommodated
at the same place. Similarly, where the wife and husband are employed in the
same bank, they should also be accommodated at the same centre.
(b) PROVISION OF CRECHE FACILITY:
The Banks should provide Creche facility for the benefit of children of lady Officers
who are required to attend to office as the children need parental attention.
(c) LEAVE FACILITIES:
The existing Maternity Leave of 6 months at a time should also be extended in case
of adoption of a child (from present 3 months).
3 months’ additional sick leave be sanctioned after attaining the age of 45 years as
lady officers are prone to diseases at this age.
Child Care leave as applicable to the Central Government employees should be
made available to lady officers.
(d) PATERNITY LEAVE:
The Paternity leave of 30 days should be introduced for officers on 2 occasions.
(e) LFC/HTC:
21
Spouse employed in the same bank to be permitted to avail LFC separately as per
individual eligibility. The lady officers should be permitted to take their dependent
parents and parents in law along with them on LFC/LTC.
(f) DEFINITION OF FAMILY:
The parents, father-in-law & mother-in-law, dependent of an officer, sons and
daughters, brothers and sisters divorced or deserted, daughters or sisters etc to be
treated as members of family for the purpose of LFC/HTC and medical facilities.
PART IV
SUPERANNUATION BENEFITS:
The employer has an obligation to ensure that the employees having served the
institution almost life time are provided adequate superannuation benefits so that
they are able to live a life of dignity, honour and above all a comfortable life for
having given their blood and sweat to the institution.
The superannuation expenditure cannot be considered as a cost and be made
subject matter of negotiations. The compensation paid in the form of
superannuation have been described by the highest court of the country as
deferred wages paid to all those who served the institution with devotion and
conviction for ensuring the prosperity, not only for the institution but the nation as
well.
At present, the Banking Industry has provided for the benefit of Gratuity, the
Provident Fund or Pension, Leave Encashment at the time of retirement, Medical
facilities, and several other welfare facilities.
We strongly feel that there has to be an exclusive and a comprehensive dialogue
between the Officers Organisations and IBA as to the improvements that are
required to be made in the present superannuation benefits.
PENSION:
22
The Banking Industry has introduced the Pension Scheme with effect from 1.1.1986
after protracted discussions and negotiations between the Officers’
Organizations/unions and the Indian Banks’ Association in the year 1993. The
Pension Scheme has remained as such since the beginning of the scheme in the
Banking industry.
The Government servants have seen two pay commissions during this period and if
we consider the date of implementation as 1.1.1986 there have been 3 Pay
Commission reports providing very comprehensive improvements in the
superannuation benefits to the civil servants in the Government.
The Pay Commissions have taken a very pragmatic view in the last 3 Pay
Commission Reports and have made very substantial changes in the scheme. There
is a need to take the same view as regards the Pensioners in the banking industry as
well.
The periodical review of Pension scheme is the responsibility of the Managements of
the Banks. It cannot be tagged to bipartite settlements which has adversely
affected the pensioners and ultimately the pension scheme remain as an archaic
one in the Banking Industry. As and when there are improvements in the central
Govt. Pension scheme, the IBA should invite the negotiating unions and implement
the same
Pension consists of the following parts:-
a. Basic Pension
b. Commutation
c. Dearness Allowance
The Basic Pension is calculated on the basis of the last drawn 10 months’ average
pay by the retirees or the last pay drawn whichever is beneficial to the retiree. The
formula has remained the same.
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The Government servants have been provided the benefit of updating of pension
at periodical intervals to provide sufficient cushion against inflation and cost of
living.
Dearness Allowance be converted as Basic Pension as and when the cost of living
index increases by about 50%. The Pensioner will therefore have the benefit of
enhanced Dearness Allowance and it provides a small cushion against the inflation.
The other method adopted by the Government is to bring all the pensioners on a
uniform scale by merging the Dearness Allowance at the time of revision as
recommended by the Pay Commission. The facility of upgradation of pension
above the age of 80 years be made available to Bank Officers as prevalent in
Government. We therefore suggest as follows:-
BASIC PENSION:
Improve the present Basic Pension in respect of all the earlier retirees on the basis of
the merger of Dearness Allowance at a level to be decided by mutual
understanding between the IBA and the Officers’ organizations and unions.
COMMUTATION:
The present rate of Commutation has to be revised to 40% with the existing
conversion factor. The full pension be restored after 10 years.
DEARNESS ALLOWANCE:
The DA formula and neutralization should be at par with serving officers.
GENERAL:
The voluntary retirement provided in the Officers Service Rules should be
incorporated in the Pension rules and they should also be made eligible for Pension
without any discrimination.
Pension scheme should be extended to all those who have been denied earlier on
the basis of the misinterpretation of the understandings reached with IBA in
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particular those who retired under voluntary retirement scheme as per the service
regulations / resigned after completing 20 years.
The officers who joined the bank between 01.11.1993 and 26.01.1996 have to be
covered under the pension regulations.
Provision of additional service as per the Pension Regulations to the extent of 5 years
should be extended to each and every retirees in the banking industry.
Those having relaxation of age at the time of recruitment on account of disability
etc., also to be extended additional period of 5 years to his / her service qualifying
for pension.
Also, for Ex-servicemen their past services rendered in the Armed Force should be
added to his / her service for qualifying for pension.
FAMILY PENSION:
The Family Pension should be on par with the Government and be at 30% of last
drawn pay by the officer across the board to every one. The regular family pension
will be payable for 10 years or till the 70th year of notional age of the deceased.
NEW PENSION SCHEME
The employees and officers who joined the banking industry on or after 01.04.2010
should be governed by the original pension settlement signed on 29th October 1993
and Gazetted in the year 1995.
GRATUITY:
The Gratuity should be paid at the rate of one month salary and allowances without
any ceiling. The gratuity should be completely exempt from payment of income
tax.
PROVIDENT FUND:
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The Provident Fund should be at the rate of 12% of the total salary and allowances.
The Provident Fund should be payable to all employees.
ENCASHMENT OF LEAVE:
Encashment of entire leave at credit should also be permitted on resignation,
removal and compulsory retirement.
The existing ceiling on encashment of leave should be enhanced to 360 days at the
time of resignation / superannuation. The entire amount should be exempted from
income tax as in the case of the Central Government Employees.
MEDICAL BENEFIT SCHEME:
A comprehensive Medical Scheme for pensioners/ retirees should be framed and
introduced in all the banks as available now in the case of executive directors and
CMDs of the Banks.
WELFARE ACTIVITIES:
A separate allocation of funds for improvements to welfare of the pensioners should
be made every year. The facilities like Holiday Home, clinics, Transit House etc.,
should be made eligible for pensioners also.
LFC/ HTC FACILITY:
LFC / HTC Facility should be extended to the retirees also at par with serving
employees.
Part V
NON - MONETORY – ISSUES RELATING TO WORKING ENVIRONMENT ETC.,
GENERAL ENVIRONMENT – AMBIENCE – WORKING HOURS ETC.,
It is the duty of the banks to provide an appropriate environment, ambience and
above all the HR systems at all branches. The officers’ fraternity should also be
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provided with all amenities such as supply of refreshment, beverages etc., inside the
branch premises in view of the pressure of work, long stay in the office etc.,
The environment should afford an opportunity for full exposure of the creativity and
also efficiency of the officers while discharging their duties to the customers as well
as the branches.
The banking industry is now equipped with excellent technology advancement,
continuous updation of computers, servers etc., there is therefore a need for the
Management to adopt appropriate HR initiatives to encourage and motivate the
Officers to acquire knowledge in these fields and give their best to the institution.
The Banking Industry is entrusted with the responsibility of enhancing the economic
prosperity of the country and also the GDP growth with a view to enhance the
standard of living of the common man. The management should ensure that
reasonable working hours are fixed rather than pressurizing the officers which may
lead to failure and resultant loss of health or upset the officers’ routine. Hence, the
working hours for officers should be defined and regulated.
5 DAYS WEEK:
Five Day week is already available in the international banking system. It is also
available in our country in RBI, Central and State Governments and in Public Sector
Undertakings. Hence, it should be introduced immediately in the entire banking
industry.
The working hours should not exceed 36.5 hours in a week. The daily working hours
should not be more than 6.5 hours in the normal course.
Any working hours, more than 7 hours a day, should be compensated monetarily to
the extent of twice the actual hourly salary in the normal course.
They should also be made eligible to take weekly off to the extent of additional
hours of duty rendered by them.
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The Officers who are called upon to work on weekly-off days and holidays, should
be compensated as above and in addition be permitted a compensatory off on a
date convenient to them and such weekly offs be credited to the leave account.
LEAVE RULES:
The existing leave rules will have to be comprehensively reviewed and made
officers friendly and flexible as available in several other sectors of the economy.
The availing of leave should be made flexible. The officers should be free to avail
the leave as and when required. They should also have the benefit of splitting the
day into hours and half-day, full-day etc., and longer period as in the case of
several other corporates.
TYPES OF LEAVE:
The existing system of maintaining separate leave accounts may be done away
with. A common account of leave should be introduced where they should be
able to combine all types of leave into total number of days of leave available to
them and use the same as per their own requirement.
However for the purpose of better understanding we re-produce the types of leave
available and the need to review the same.
a. Casual leave should be increased to 15 days;
b. Privilege Leave – 33 days in a year.
c. Sick Leave 15 days in a year ( on full pay) without any ceiling;
d. Restricted holidays: A minimum of 10 days in a year for festivals and other
personal, religious functions etc., may be permitted to be availed as holidays
by the officers.
e. Special leave for study, sports, social and cultural activities
f. Leave on loss of pay
g. Sabbatical leave
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INTRODUCTION OF LEAVE BANK:
The leave so calculated should be credited to the leave account of the officer on a
consolidated basis. The officer should be eligible to avail the leave on the basis of
his requirement. The intermittent holidays and weekly offs should be excluded while
sanctioning leave.
The Officer should have the opportunity of encashing the balance available in the
consolidated leave account once in a year to the extent of 50% of the leave
available in his account at the beginning of the subsequent year. Further, an officer
should be permitted to encash the entire leave at his credit at the time of retirement
including sick leave and no ceiling should be imposed for accumulation of leave.
The officer may be permitted to transfer leave to another officer in case of need for
medical purpose.
OUTSOURCING :
Work done on a regular basis should not be outsourced.
DISCIPLINARY RULES PROCEDURE:
We have submitted a very comprehensive note to the Indian Banks’ Association for
the review of the existing conduct rules and procedure and to introduce certain
changes in tune with the changing environment. (Copy enclosed) The issue should
be discussed for implementation.
ADMINISTRATIVE TRIBUNALS:
The IBA should take up with the Government, the introduction of an exclusive
Banking Administrative Tribunal for the banking Industry in order to deal with all the
service as well as disciplinary matters in respect of officers similar to Central
Administrative Tribunal.
Discussion of Disciplinary Action procedure
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An exclusive exercise should be carried out by IBA for bringing appropriate
amendments in the Discipline and Appeal Regulations in due consultation with all
the Four Officers’ Organisations.
PART VI
GENERAL BILATERAL RELATIONSHIP:
The 7th Joint Note exercise on Officers wage revision when resume, will have a
historical significance in the sense that the Management and the Officers’
organizations have come a long way in the structured negotiation systems and
have matured enough to decide and arrive at a compensation which is generally
acceptable to both the parties. In the process we need to have a clear
demarcation as regards the issues concerning the Officers’ fraternity and Officers’
organizations should have exclusive right to negotiate on behalf of the officers in the
banking industry. Hence, all the issues connected with both the directly recruited
officers as well as the Officers promoted from clerical cadre have to be decided
between the IBA and the Officers’ organizations. For example, the fitment formula,
which is now in a state of confusion, will have to be discussed and settled between
the Officers’ organizations and the IBA. Similarly the issues of promotion policy,
transfer policy, etc., will have to be settled bilaterally with Officers’ organizations
both at the bank and the industry level.
STRUCTURED FORUM AND ACCOUNTABILITY FOR SETTLEMENT:
The Officers’ organizations have been holding discussions and negotiations with the
representatives of the Indian Banks’ Association over the last 40 years. The system
has got itself streamlined during the last 3 decades and the issues that are related to
the compensation and also certain issues of urgent nature are brought to the IBA
forum and decided between both the parties. There is a need to structure this
conventional arrangement and ensure that all issues affecting the industry and the
impact of the directives of the outside agencies on the officers’ fraternity are
brought to this structured forum and decided to avoid unnecessary irritations in
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industrial relations in the banking industry. The proper detailed and codified account
of all discussion should be exchanged.
The structured forums are already in vogue in all the banks. The issues referred to
the banks by the IBA and the Government is discussed at the bank level
negotiations by each organization which leads to discrepancies in the
implementation of any understandings reached between the organizations and the
management.
Certain Industry level issues have to be discussed at IBA / Government Level.
Hence, there is a need to have structured forum at IBA / Government for periodical
discussions. Hence, there is a need to bring all such issues/directives of the IBA and
the Government before a structured meeting and settle to avoid frequent agitation
and industrial unrest in the banking industry.
RECRUITMENT / RETIREMENT:
The Banking industry is in doldrums due to inadequacy of the workforce. The
lopsided policies and the conventional approach of the Government and the
Managements of the banks at the instance of the IBA and the Ministry of Finance
have created a big gap in the average age of the various groups of employees in
the banks. There were no recruitments virtually for more than 2 decades and as a
result, the age difference between the old employee and the new employee is so
wide that the average age of the workforce is adversely affected.
A close review of the situation should be considered and necessary steps to be
taken for a pragmatic succession plan. The large scale retirement is adversely
affecting the workforce since experienced hands are getting retired where as a
large chunk of new recruits are forced to take up higher positions and the
promotions are getting accelerated in comparison with the earlier situation thereby
causing serious problems of seasoning and grooming of higher level officers in the
banking industry.
A crash programme should be worked out to tackle this serious issue.
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In view of shortage of manpower, the retirement age should be re-fixed. We have
the following suggestions:-
VOLUNTARY RETIREMENT:
Redefine the voluntary retirement and re-fix the minimum eligibility for the purpose.
AGE OF SUPERANNUATION:
The age of superannuation to be raised to 65 years for all officers.
WITHHOLDING OF GRATUITY ON RETIREMENT / RELEASE OF TERMINAL BENEFITS :
The present adhoc system of withholding gratuity and harsh decision to set off the
gratuity amount towards loss caused etc., should be reviewed keeping in view, the
recent judicial pronouncements. In any case, there should not be stoppage or
denial of gratuity to the officers.
No disciplinary action should be initiated after superannuation.
All Terminal benefits should be released pending disciplinary proceedings if bank
fails to complete the proceedings before superannuation as is being done in the
case of CBI cases being pending.
WELFARE FACILITIES:
CEILING :
Present Ceiling of 3% of net profits to be increased to 5% of net profit without any
ceiling.
LIFE COVER :
Suitable Life Cover should be taken for normal as well as accidental death.
REVIEW OF LOANS AND ADVANCES :
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In view of the increase in cost of construction of house and flats, we need to have a
comprehensive review of House Building Advance to officers by suitably enhancing
the limit to Rs.50 lacs at Simple rate of interest without any slab.
Since the Conveyance Loan has not been revised for long, we need to enhance
the Car Loan limit to Rs.10 Lacs and Two Wheeler Loan limit to Rs.1 lac at Simple rate
of interest without any slab.
The repayment of the above loans should be extended upto 75 years of age.
ROAD TAX ON VEHICLES:
In view of All India transferability of officers, the Road tax on vehicles of different
States should be paid by the bank on inter-state transfers.
DATE OF RETIREMENT:
Those who were born on the 1st of a month to be retired on the last day of the same
month, and not the previous month.
PROTECTION OF EMOLUMENTS:
The emoluments drawn by an Officer should be protected on his transfer from one
place to another.
TRANSPORTATION OF PERSONAL BELONGINGS:
The Banks should take the responsibility for shifting the personal effects of the officers
on transfer from one place to another. In the absence of such facility, the Officers
should be reimbursed the full expenditure on certificate basis.
INCIDENTAL EXPENDITURE ON TRANSFER:
To meet additional expenditure towards education of children, housing etc., officers
should be paid two months’ salary to compensate incidental expenses on transfer.
In case of transfer outside the State, 3 months' salary should be paid towards
incidental expenses. In case of transfers to far off centers and the places of
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inclement weather and living conditions, there has to be high compensation as
incidental expenditure on transfer.
OTHER ALLOWANCES SUCH AS HILL AND FUEL ETC.
All the allowances other than what have been covered in the earlier chapters
should be enhanced appropriately.
AREAS DECLARED AS SEZ/NEZ/EPZ:
The branches coming under the above areas should be treated on par with Metro
Centres for all allowances and perquisites.
SPECIAL ALLOWANCE TO NORTH EAST, SIKKIM AND OTHER DISTURBED AREAS / NAXAL
PRONE AREAS:
Special allowance as prevailing in Central Government/RBI for Officers serving in
these areas should be extended to Bank Officers.
IMMUNITY FROM TRANSFER POLICY, SPECIAL PRIVILEGES TO OFFICE-BEARERS OF THE
ORGANIZATION:
In view of the positive role played by the Officers Organizations there is a need to
revise the existing arrangements as regards the special leave to the office-bearers
of the organizations. The existing arrangement is grossly inadequate in comparison
with the size and the growth of the banking industry and equally the membership of
the officers’ organization – the structure of the organization and hence appropriate
enhancement in the leave facility needs to be considered.
The senior office-bearers of the Officers’ organizations should have the duty off in
view of the fact that they will be dealing with all the personnel matters relating to
the officers’ fraternity and they may not be able to attend to their deskwork. If the
Office Bearers are denied this facility it would cause great harm to the
officers’ organizations in the banks.
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The Office-bearers of Associations should be extended immunity from
transfer/placement. The Central /State level office-bearers should be given duty-off
on par with workmen organizations. The facility is due for review.
THE LOAD FACTOR:
The negotiations on cost of salary revision should be confined only for the purpose of
deciding the load factor in respect of Basic Pay and Dearness Allowance.
DATE OF EFFECT:
The date of effect for implementation of the settlement on the basis of the charter
of demands should be from 1.11.2012.
RIGHT TO SUBMIT SUPPLEMENTARY CHARTER:
The Officers’ Organizations reserve the right to include, amend or alter the
demands, as made out in the Charter during the course of bilateral discussions.
All anomalies arising out of Salary Revision should be resolved irrespective of the cost
factor involved.
Long pending issues on regulated working hours, 5 days week and standardization
of retirement benefits and improvement in compassionate Appoint Scheme should
be discussed before commencement of regular wage revision negotiations.
(P.K.SARKAR) (D.S. RISHABADAS) (S. NAGARAJ)
CONVENOR GENERAL SECRETARY GENERAL SECRETARY
UFBU AIBOC AIBOA
(K.K. NAIR) (S. U. DESHPANDE)
GENERAL SECRETARY GENERAL SECRETARY
INBOC NOBO
Mumbai 30.10.12
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1 comment:
Up to what date we can know the result of the 10th wage revision
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