Pay slip cost -2

I have posted a staus on January 18, about pay slip cost and IBA’s offer of 9.5% as per my understanding.

Also, I had informed that comrades can give more inputs and correct me if it is wrong, and assured to get back the staus if my understanding is proved wrong.

Now, one comrade send me an e-mail giving a different angle for the offer of  9.5%

First read the argument and my comments at the end:

****************************************************************

A SIMPLE ARITHAMATICS PLEASE

You say that 5% is about 9%

and that 9.5% is somewhat near 17.5%

But a simple arithamatics:

Wagebill as on 31.3.2012 according to IBA is 56292 cr.

Pay slip component is Rs 31503 cr.

Details of dicussion on 27.01.2014

Details of dicussion on 27.01.2014 AS REPORTED BY UNIONS/ASSICIATIONS:


AIBOC:

In today’s negotiation it was expected that IBA will substantially improve their 
offer to the satisfaction which fulfils the aspirations of the officers and employees working 
in the banking industry. But to our utter dismay, after a protracted discussion, IBA 
improved their offer by 0.50 % only i.e. a final offer of 10 % only on the pay slip 
components (excluding the superannuation and other costs). The reason once again 
cited for their present low offer was the stress on balance sheets of various banks. UFBU 
rejected the offer made by the IBA instantly. 

AIBOC APPEALS!

In recent event of developments an all India
strike call of 48 hours was given by UFBU in view of a skimpy offer of 5% rise in Pay Slip
components of Salary. The strike was to be observed from 6 a.m. of 20th
January, 2014 till 6 a.m. on 22ndJanuary, 2014.
 However the strike was deferred after the revised offer was made by IBA
on 17thJanuary, 2014 for 9.5% hike on pay slip cost and assurance by the IBA to hold
negotiations on regular basis and to complete wage revision exercise by 30thJune, 2014.

Amidst these developments we have noticed anger, anguish and remarks of our members
on these developments over social media like facebook, orkut and twitter. Let me assure all of
you and particularly to DROs/Probationary Officers that we are aware of your expectations and
aspirations which have already been incorporated in our Charter of Demand (Please go through it
once again).

Outcome of Talks on 17.01.2014

UFBU's circulars says.....

During the discussions held today, after protracted negotiations, IBA finally agreed to improve their earlier initial offer of 5% on cost of Pay slip components (which amounted to Rs. 1575 crores ) to 9.5 % (amounting to around Rs. 3000 crores) which is exclusive of retirement benefits and other costs.  The IBA also reiterated that they would expedite the negotiations and conclude the Settlement by June, 2014.  IBA further informed that the next round of negotiations will be held on 27th January, 2014.

From our side, while explaining the rationale behind our charter of demands, we pointed out that their offer needs to be further enhanced before we can reach any finality.  However, looking to their improved offer and assurance to expedite the settlement, it was decided to defer our agitational programmes and proposed strike action on 20th and 21st January, 2014.

We congratulate all our unions and members all over the country for their enthusiastic preparation for the strike which has resulted in the above outcome.

BEFI circular says......

Pay slip cost!

I tried to explain meaning of 9.5% increase on payslip cost

With my understanding/experience  of  calculations/facts.L

Comrades may give more inputs and correct me  if  I am wrong.

I will make corrections or if found wrong, withdrw the post.

  

Payslip components =

Basic Pay,

Special Pay,

Fixed

Personal Pay,

Professional Qualification Pay,

Dearness Allowance,

House Rent Allowance,

City Compensatory Allowance (where applicable),

Transport Allowance and

Annual Medical Aid.

And  not include the cost of

UFBU’s submission to the CLC on 13-1-2014:

Ref: UFBU’s Strike Notice dated 31-12-2013

Ref: Your Communication 21(111)/2013 dt. 2-1-2014

We thank you for your above communication in response to our Strike Notice and for holding the conciliation meeting today.

In this connection we wish to submit as under in continuation of the Statement of the case mentioned in our Strike Notice.

Even though the wage revision for bank employees and officers is due from November, 2012 and even though both the IBA and UFBU desired and agreed to conclude the negotiations expeditiously, there has been undue delay on the part of the IBA in making their offer in relation to the additional wage increase that they are prepared to offer on the basis of the charter of demands submitted by the UFBU.

After having waited for nearly an year, and since IBA’s offer was not forthcoming, we gave the call for Strike on 18^th December, 2013 and duly served the Notice on them. 

Discussions on 14-12-2013:  In this background, the IBA called UFBU for discussions on 14-12-2013.  During the discussions, the IBA stated that the profitability of the Banks are under stress due to high provisions towards pension cost and higher provisions towards bad loans and hence there were constraints in offering wage increase.

Inadequate offer:  After much persuasion from our side, they made an offer of 5% increase over the cost of total payslip components in the wage bill as on 31-3-2012.  Since offer was considered by us as too low and did not form any basis for further negotiations, we urged upon the IBA to improve their offer so as to continue the negotiations further.  Unfortunately IBA did not improve their offer.