Talks on 13.06.2014: UFBU CIRCULAR

Talks on 13.06.2014:

BEFI circular says:

*On revised proposal of IBA on introduction of
Mediclaim scheme, UFBU decided to reject the scheme.

*On other issues such as five days week, IBA said that looking to the approach of the new government at the centre for more working hours, it is not possible for them to pursue the issue any further.

*IBA stated that they are hopeful for getting clearance for some improvement in family pension and uniform DA rate for all past retirees.

*Updation of pension along with wage settlement is not feasible looking to cost involved.

*On the issue of compassionate appointment,
IBA informed that they are expecting positive communication
from the government.


UFBU CIRCULAR:

After the last round of negotiations held on 14-3-2014, another round of discussions took place with IBA on 13-6-2014 in Mumbai in the background of the new Government taking over at the Centre after the general elections.

UFBU meeting: 
 The meeting noted that in addition to the pending demands of UFBU for wage revision, there are other challenges too like the recommendations of P J Nayak Committee, talks of dilution of Government’s capital in Banks, merger of Banks, etc.
The meeting decided to take a delegation of UFBU to the Finance Minister to apprise him of our issues and demands.

Discussions with IBA: 

Opening up the discussions, Mr. Bhasin explained the present banking scenario where the profits of the Banks have come down as on 31-3-2014 adding to the constraints of the Banks to take up any huge financial burden in the form of wages.
After submissions from UFBU, IBA informed that they are willing to improve their offer from earlier 10%  to 11% on the cost of Pay Slip components of the wage bill which would amount to Rs.3,465 crores and which would be exclusive of other costs on retirement benefits, LFC, hospitalization expenses, etc.
 From UFBU, we expressed our inability to accept this offer as the same was quite inadequate.

As regards other issues discussed with the IBA in the last two rounds of discussions, IBA informed that they are favourably inclined to consider the demand of extending 100% DA for all pensioners and the same is awaiting the approval of the Government.
(Comment: beneficial to pre 2002 retirees, if accepted)

 On our demand for improvement in Family Pension, IBA’s response was positive but they informed that the cost implication has to be properly worked out and Government’s approval is necessary for the same.

 As regards updation of pension, IBA was apprehensive about the same since it involves substantial financial burden to the Banks.
(comment: In all sectors, including central and state Govt., whenever there is an industrywise wage increase, pension will also be increased. In Banking sector it is not so. Hence a G.M retired 10 years back is drawing less pension than a clerk retiring now.)

 IBA also informed that our demand for extending appointment on compassionate grounds in the Banks on the lines of Government scheme is under the active and positive consideration of the Government and their decision is awaited.
(comment:proposal agreed between UFBU and IBA is Pending with Govt.  for more than 3 years.) 

Since UFBU refused to accept the IBA’s offer of 11% increase, IBA wanted to know the expectation of the UFBU for which it was informed that our minimum expectation is 25% increase in the Pay Slip components cost.  IBA expressed their total inability to accept the same as it is beyond the paying capacity of the Banks.

With this, the talks ended inconclusively.  Thereafter UFBU decided that since IBA has not come up with any adequate increase in their offer, further course of action would be taken shortly after mutual consultations amongst the Constituent Unions and also after meeting the Finance Minister in this regard.

Further developments would be informed to units in due course.                                

Sd.. M V Murali
Convener/UFBU