Wednesday, August 7, 2013



 “UFBU in its meeting held at Chennai on 4th July 2013, as a part of action 
programme, has decided to meet the Hon’ble Finance Minister in a delegation to 
bring to his notice the ongoing issues and seek his intervention. Accordingly, the 
delegation consisting the representatives of all the UFBU Constituents met 
Shri P. Chidambaram, Hon’ble Finance Minister in Delhi on 6th August 2013 and 
submitted a detailed memorandum on all our issues. The meeting was held in a 
cordial atmosphere. After minutely going through the contents of the 
memorandum, he responded that such of these issues which are to be addressed 
by IBA may be taken up in the ongoing negotiations on charter of demands and 
such of those involving policy decisions will be looked into by the Ministry. 
 The text of the Memorandum dated 6th August 2013 submitted to the Hon’ble 
Finance Minister on our issues is appended below for information.” 
Camp: New Delhi 
th August, 2013 
Shri. P. Chidambaram, 
Hon. Minister for Finance 
Government of India 
New Delhi. 
Dear Sir, 

“First of all, we thank you for sparing your valuable time to meet our delegation 
today amidst your busy schedule of work and engagements. 
At the outset, we convey our heartfelt condolences on your recent bereavement 
over the demise of your beloved mother. 
On behalf of the United Forum of Bank Unions, the umbrella platform consisting 
of 9 trade unions in the banking sector and representing about one million 
employees and officers, we submit the following memorandum to you for your kind 
attention, positive consideration and favourable dispensation. 

We wish to draw your attention to some of our own important issues and demands 
which we feel need your intervention as well certain broader policy matters which 
are of concern to us.

1. Compassionate ground appointment scheme in Banks :
For the past more than ten years, the scheme on compassionate ground 
appointments to the widow or an eligible family member on the death of an 
employee or officer that was in vogue in the Banks as per Government guidelines 
since 1978 has been negated and an unilateral financial compensation scheme has 
been implemented. With your intervention, the family of employees who die while 
in performance of duty due to dacoity, robbery, etc. and those who die within 
5 years of joining the Bank are alone considered for compassionate employment. 
Your suggestion that compassionate appointments may be considered upto a 
prescribed ratio against vacancies and recruitments in an year remains 
unconsidered so far by the managements. 
In the meantime, in the wake of large scale retirements, recruitments are taking 
place in the Banks. The instances of death while in service has also dwindled and is 
very sparse. Hence it would not be difficult for the Banks to restore and extend 
compassionate ground appointments on the unfortunate death of an employee or 
officer while in service. Moreover, these jobs are given only if the compassionate 
appointee has the required and prescribed educational qualification. Hence any 
apprehension on dilution of efficiency or quality will also be misplaced. 
In view of the above, we have submitted and represented to the Indian Banks’ 
Association to extend the compassionate ground appointment scheme as is 
available for the Government employees to the banking sector. 
The issue needs sympathetic and expeditious consideration as the same is hanging 
for the past one decade. We seek your personal attention and intervention in the 
matter to advice the IBA accordingly. 

2. Wage revision for employees and officers in the Banks:
The last wage pact in the Banks expired in October, 2012 and hence we have 
submitted fresh charter of demands for revision of wages and service conditions. 
More than nine months have elapsed but except some preliminary discussions, no 
serious negotiations have been held by the IBA on our demands. This is causing lot 
of concern and anxiety amongst the banking staff and hence there is need to 
expedite the negotiations with more meaningful and serious discussions on our 
demands to enable early conclusion of the revised wage settlement. 
Here also, we seek your intervention and request you to advice the IBA to speed up 
the negotiations for early wage revision in the Banking industry. 

3. Introduction of 5 Day Banking: 
It is not only the Central and State Government ministries and departments but 
even the Reserve Bank of India, LIC, etc. are following the 5 Day working. Already 
in the banking sector, with the advent of technology based services, proliferation 
ATMs, internet banking system, etc., the delivery channels for customer services in 
the Banks have multiplied and manifolded and hence it is possible to introduce 
5 Day Banking with suitable adjustments in the total working hours per week. 
Our representations to the IBA have not yielded or evoked any positive response 
and hence we request you to bestow your kind attention to this genuine 
requirement and expectations of the bank employees and officers.

4. Grievances of the Bank retirees: 
We gladly recall our meeting with you on 19-2-2008 when we submitted to you 
about the need to extend another option to the bank employees to join the pension 
scheme. At your intervention, not only the two days strike on 25/26 February, 2008 
was averted but through mutual discussions with the IBA, a Settlement could also 
be arrived at by which the remaining employees have been extended another 
opportunity to join the pension scheme. We are thankful to you for the same. 
However, there have been quite a few grievances of the bank retirees that are still 
pending consideration by the IBA and the Government. 
a) Pre- 1986 Retirees:
 Those who retired from the Banks prior to 1986 are 
being paid an Ex-Gratia of Rs. 300 per month and the spouse of such retirees 
when they die are paid a lumpsum of Rs. 1000 per month. These amounts 
were fixed 15 years ago and hence there has been a very genuine 
expectation to revise this ex-gratia amount paid to them. The total number 
of pre-1986 retirees is very less in the entire banking sector and hence the 
revision in their Ex-gratia would hardly cost anything substantial to the 
Banks. We request you to consider this most genuine representation 
b) Revision in Family Pension:
 The rates of Family Pension fixed in the Banks’ 
Pension Regulations in 1995 at 15% to 30% with applicable ceilings has been 
found to be inadequate in view of the high cost of living and a suitable 
revision in the rate of Family Pension is a dire necessity. 
c) Periodical updation/revision of pension:
 In the case of Government 
employees pension scheme, the pension gets updated and revised on 
occasions of every wage revision but even though the Bank pension Scheme 
is on the lines of the Government pension scheme, our pension does not 
undergo any revision than what is fixed at the time of retirement. There is a 
case of periodical updation of pension for the retirees in the banking sector 
d) Uniform DA on Pension:
 In the banking sector, earlier Dearness Allowance
was paid on a tapering basis and hence the Pension also attracted DA on the 
same basis. However, from November, 2002, the DA is being paid to all the 
employees/officers with 100% neutralization against inflation as in the case 
of the Government employees. While the post-Nov. 2002 retirees are paid 
DA on pension at 100% neutralization, the pre-Nov.2002 retirees are being 
denied the same. There is a need to make the DA rate on pension uniform for 
all retirees. 
e) Staff Welfare Schemes : 
As per the government guidelines, 3% of the 
published net profits of the Banks are earmarked for extending some welfare 
schemes for the employees including the retirees. While the guidelines 
mentions that a portion of the allocated amount be utilised for extending 
some benefits like medical scheme, etc, for the retirees, a need is being felt 
to give a uniform guidelines for apportionment from the fund towards 
retirees’ schemes. A suitable guidelines may be issued to the Banks in this 
regard to adopt a uniform percentage of the funds to be allocated for the 
welfare schemes pertaining to the retirees. 

5. Industrial Relations in State Bank of India: 
For the past almost one year, the industrial relations situation in State Bank of 
India, especially relating to the officers, has not been cordial, rather it is highly 
vitiated due to some of the standpoints and attitude of the top management of the 
Bank. Basic trade union rights are being denied and vindictive actions are being 
pursued. This has resulted in demoralization of the workforce in SBI and there is 
need to restore cordial industrial relations in the Bank and sorting out the issues 
through mutual discussions. 
We seek your kind intervention in the matter in the larger interest of industrial 
harmony in the banking sector since SBI happens to be the flagship banking 
institution in our country. 

6. Proposals of SBI management to merge Associate Banks : 
It is observed that the SBI management is proposing to merge the 5 Associate 
Banks with it in the name of consolidation. It is needless to inform you that these 
Associate Banks have their own historical and geographical evolution and have been 
playing a very leading role in the economic development of the concerned States. 
Their performances have been impressive and consistent. In fact, we feel that delinking them from SBI and making them independent Banks will enable them to 
grow faster and better. There are also reports that the merger of these Associate 
Banks will add to the financial burden of SBI at a time when SBI itself needs to 
become more stronger in the wake of challenges like higher levels of bad loans, etc. 
Hence we strongly feel that merger of the Associate Banks with the SBI would be 
unwarranted and avoidable. 

7. Proposals of RBI to permit corporates and business houses to start their own Banks: 

The decision and proposal of the Reserve Bank of India to permit the various big 
corporate houses and business houses to start their own Banks, according to us, 
would, in the name of competition, result in multiple challenges to the banking 
system and also wrought with undue risks since the track record of various private 
business houses running banking institutions in the past has not been appreciable. 
At a time when the Government’s priority is to ensure total financial inclusion, these 
proposals would only divert the entire attention of the public sector banks who are 
already working under various constrains and challenges. 
On the other hand, we strongly feel that the RBI must be advised to ensure that the 
public sector banks are further strengthened and expanded in order to achieve the 
objectives of bank nationalisation, a water-shed decision taken by then Government 
in 1969 under the bold initiative of Smt. Indira Gandhi. We request the Government 
to take a serious note of our concerns and viewpoints in this regard.” 

Thanking you, 
 Sd.. Sd.. Sd..                                

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