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

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

Indian National Bank Employees’ Federation

(A Banking Wing of INTUC)

INBEF/GS/SSS/2014/05                                                                      21^st February, 2014

(Revised)

AAHAT!    SSHH……… PHIR KUCH HAI !

Friends,

Recently, on 11^th February 2014, i.e. on the second day of Banks’ strike, Mr. Chidambaram, Finance Minister, Government of India has categorically said on the occasion of Indian Overseas Bank’s 78^th Foundation day celebration in New Delhi that,

“It cannot be that all profit is

used to declare dividend and to

provide enhanced wages and allowance

to Bank Employees”

On the same occasion, he admittedly said having infused capital of Rs. 35,000 crores in 2011-12 and Rs. 37,936 crores in 2012-13 to maintain the capital adequacy norms in various Banks which became overburdened due to N.P.A. He reportedly further said that the NPAs rose to Rs. 2.36 lakh crores in September 2013 from Rs. 1.83 lakh crores in March 2013.

Now to our Finance Minister, who has graduated from Harvard University it is not unknown to him that in the labour intensive industry like Banking, the wage of the employees’ are only the factors of production and not production “perse”, meaning that Bank employees’/officers produce the services and earn profit by making use of other three factors of production including capital.

Ironically, Mr. Chidambaram tries to impress upon that after major chunk of profit being marked to owners (i.e. to the Government, major shareholder and the public), whatever profit is left should go to the provisioning of huge NPAs and the residual profit must be given to bankmen,  that too after infusing major portion as capital.

This type of allocation of profit is nothing but “Robbing Peter to pay Paul” as planned by our Finance Minister.

In short, Mr. Chidambaram in the name of planning for fiscal deficit will take major chunk of profit to the Government coffer as dividend first and second major chunk for provisioning for NPA leaving very little for employees’.

Friends, behold! This is not the only attempt to bring revenue under his fold. In the name of deficit control, the deceptive measures are reportedly being taken by siphoning of cash balances of public sector companies, additional expenditure is being rolled over to the next financial year tax and dividend income to accrue next year is being brought forward to this year’s books. (Courtesy; Corporate India, February 15, 2014).

The report further says that in first nine months (April-December 2013) the gross tax revenue was Rs. 7.7 lakh crores, Custom and Service Tax was Rs. 3.55 lakh crores and net Direct Tax collection was Rs. 4.15 lakh crores.

Friends, why we are giving these figures to you, because 94% of total fiscal deficit limit set for whole year has already been exhausted.

Now, election in the offing and to meet growing demand of the Ministers of rural development, power, water, and HRD our Finance Minister is left with no other way than to squeeze cash rich public sector by Government, thus by declaring Rs. 29/- per share as interim dividend alone would fetch the funds of Rs. 18,317 crores plus dividend distributions tax of 17% i.e. Rs. 19,600 crore is brought to Government coffers.

In yet another attempt in  a decision of reducing 10% share of Indian oil ONGC & Oil India Ltd., (both owned by Government), stage has been set to siphon off huge cash balance to Government Coffers in addition to huge subsidies provided to these two state owned Companies in selling diesel, Kerosene and Cooking gas.

It is reported that officials of Finance Ministry have asked companies to pay higher Advance Tax in March 2013 and claim refund next year. It is also reported that the Oil subsidies worth Rs. 60, 000 crores be deferred to the next fiscal year.

Friends, above examples are given only as a token. But when it comes to the question of wage revision, the same Finance Minister is taking alibi to give several reasons as to why the due share cannot be given to Bank Employees’ to meet their legitimate demand raised after five years.

In this regards, friends you will not only be surprised but will be insulted to go through the following data which shows the alarming disparities in the salaries of Govt. Officer/Clerk/Sub-staff and the Officer/Clerks/Sub staff working in the banks after VI Pay Commission.

	BASIC  PAY	GRADE PAY	DA ON TA	DA	HRA	CCA	EDU.	TA	NEWS PAPER	WASH. ALLOW	TOTAL	DIFF.
BANK SUB-STAFF	5,850	NIL	NIL	5,844	585	NIL	NIL	225	150	100	12,754
GOVT SUB-STAFF	5,200	1,800	390	4,550	2,100	NIL	NIL	600	NIL	NIL	14,640	1,886
BANK CLERK	8,000	NIL	NIL	7,992	800	NIL	NIL	225	150	NIL	17,167
GOVT. CLERK	8,770	2,400	1,280	8,936	3,156	NIL	NIL	1,600	NIL	NIL	26,142	8,975
BANK OFFICER	14,500	NIL	NIL	14,485	1,232	580	NIL	NIL	250	NIL	31,047
GOVT. OFFICERS	20,650	4,800	1,280	20,360	7,635	NIL	NIL	1,600	NIL	NIL	56,325	25,278

Surprisingly, Mr. Chidambaram happens to be the head of both the categories of employees’ and has already declared the VII Pay Commission with fabulous offer in advance. Destined to widen this gap in the salaries of Government Employees’ and bankmen, we now draw the attention of Mr. Chidambaram that in his move to decide the stipulated norms for minimum wages, the salaries of bankmen will be brought even below down to minimum wages! While Mr. Chidambaram is blind to above stark realities of disparities on salary, he his equally seen unconcerned about the kind of deteriorating service conditions of bankmen, which includes the additional duties, onerous responsibility and accountability in every parameter of banking, the acute shortage of staff, over increasing bank services financial risks and unabated branch expansion program. Probably, he seems to have developed notion that the bankmen cannot be the vote bank but seems to be oblivious that bankmen will play the key roles in furthering Government schemes like financial inclusion and disbursement of all kinds of Government subsides. It will not be out of place to mention here, that we have separately taken up the burning issues including ensuing wage negotiations through the labour wing of Congress Party with their helms of affairs i.e Smt. Soniaji Gandhi & Rahulji Gandhi with a request to advice suitably on following issues to Finance Ministry.       

1)    Proposed Wage Negotiation due in Banking.

2)    Recruitment to the extent of 7 lacs employees’/Officers.

3)    Up-gradation of Pension at par with Government Employees.

4)    Bonus as deffered wage by an Act.

5)    A relook into organizational matters in RRBs and nationalized Bank as a policy by Congress Party.

Friends, you will rather be surprised to know that in spite of bearing the burden if responsibilities and poor service condition, whether in metropolitan, urban or rural, the meager wage hike offered by Mr. Chidambaram to bankmen is only 11% of the Pay-slip component. The cost of one per cent increase in “pay-slip-component” would not be more than Rs. 310 crores for 8 lakh employees’ means that the total cost of 20% wage hike and cost would not exceed Rs. 6,200 cores which would be a very little residue after earmarking total dividend (major being transferred to Government coffers), provisioning for NPA and earmarking capital-infusion under Basel-norms. In fact our share should be decided on gross profit and not net profit as bankmen are not responsible for creation of NPAs.

PSU BANKS PROFITABILITY (IN CRORES)
	2011	2012	2013
GROSS PROFIT	99,981	116,335	121,943
PROVISIONS	55,080	66,821	71,360
NET PROFIT	44,901	49,514	50,583

Thus, we appeal to Mr. Chidambaram the Honorable Finance Minister, that he should not issue any anti bankmen statement to annoy them, otherwise he will face the wrath of employees’ and would be responsible for debacle of the Congress Party in the forthcoming election for his mindless statement on wages of bankmen.        

Friends, let us now emphatically give the slogan that Hello, Mr. Finance Minister you are, and you are ANTIBANKMEN.

Let us unite and fight this bureaucratic and bookish approach to achieve our REAL WAGES.

Thanking you,

Yours sincerely,

Subhash S.Sawant

General Secretaryz