In my post dt.25.06.2012/03.10.2012
“10th Bipartite and my suggestions”
( it is available in my blog)
I mentioned that
“9.Ad hoc payment: Every settlement takes two to three years to come to a conclusion. For example 9 th bipartite took 30 months. Employees got arrears for 30 months. In this process employees are loosing and Banks are benefited by crore and crore of rupees.
Hence an ad hoc payment, say 15% towards salary increase may be demanded at the first negotiation itself.”
Hence an ad hoc payment, say 15% towards salary increase may be demanded at the first negotiation itself.”
But, UFBU has never raised this demand at any stage.
By delaying the settlement, how much Bank managements saved?
I tried to calculate the amount.
Average Salary (gross in pay slip) of an employee (award staff +officers)
is assumed =Rs.40000
Increase in percentage is=12.5%
Then increase per month =Rs.5000
Interest for this Rs. 5000 for 27 months at 10% interest rate is=Rs.16806
(5000X27X28X10/2400 with compound int. R.D. formula)
Plus, loss of salary for 5 days strike so far=Rs.6666
Total loss per employee=Rs.23472
Then for whole industry 23472X8,00,000=1877,76,00,000=1877.76 crore.
(leaving employees of gramin bank/RBI/ ICICI,HDFC,IDBI etc.,)
Thus by delaying tactics Banks have saved around Rs.1900 crore
Note: 1.If the final increase in % is higher savings will also increase.
2. For those whose salary is more than 40000 their loss will be more than Rs.23472
3. For those whose salary is less than 40000 their loss will be less than Rs.23472
Apart from this other heads are there:
They are, arrears of leave encashment,
annual medical aid for three years,
contribution to NPS account (of New entrants from 2010) after 27 months,
Huge amount to be paid to employees who retired after 01.11.2012
Viz. arrears of encashment of P.L on retirement, commutation amount etc.,
I didn’t try to calculate the savings on the above heads because I don’t want
my Blood Pressure to go high. (the amount will be unimaginable)
Any dispute in my calculations?
Equally important is the amount of levy being earned by the unions by delaying wage settlement.
why union leaders dont think this?
why dont they know time value.
one more thing:
ex: if you have rs 100 with you, will eat one type of food. suppose if you have 150, you will eat some better food. is it not?
after getting arrears, can you go back eat you wanted?
this is one of the things we are loosing!
house, medical treatment, etc
While the mathematical calculations seem more than appropriate, there is a lot to be desired as far as logic goes. Three points that can be immediately put forward to refute your calculations on a logical basis are as follows:
1. "The bank management stands to gain" does not make any sense here. After all we are discussing about PSBs so a quick or delayed settlement does not put money into the management's pocket unlike a private sector bank where the management stands to gain directly because of any delay.
2. While a strike means a loss to the bank employee in terms of the daily salary, the bank management stands to gain nothing from it. Otherwise the whole purpose of a strike would be defeated, if the bank management could save so much from a strike. On the contrary, there is a huge loss in business because of a strike.
3. The interest calculated on the expected salary increase is logically incorrect. You have to keep the Marginal Propensity to Save(MPS) in mind. Though the expected increase is 5000 no one is going to save the complete amount and hence the interest on the complete amount does not make sense. According to statistics, for people in India the MPS is 20% and hence only 1/5th of the increase is what people will tend to save on an average and the loss will be the interest on this amount.
Further, if we get arrears because of the delay we get a lumpsum amount say 1.5-2 lacs and this amount people are more likely to save/invest as a whole in long term deposits or equites fetching a higher interest rate.
I would like to hear back from you.
KUDOS to LEADERS who were part and parcel of IBA and Govt in deceiving bank employees and officers. Com CHV and his team in UFBU long live 100 years more to deceive bank employees like this
it should be transferred to employee
you forgot to mention about higher tax rate in the year of receipt of arrear.
It is a big loss.
BEST EXAMPLE TO FAILURE OF INDIAN BANKING EMPLOYEES
I would like to respond to Mr Saswat's post:
1. It makes a huge sense that the Banks gain as the apportioned arrear out of P/L is held with the Banks who earn out of the this fund. Thus, its a gain for the employer. Management means that only. No individual even in private organisations pocket that money.
2. When it comes to strike, the purpose is to inflict loss to the enterprise making the top management sit up and be accountable for such losses. Its the prime objective. Secondly, loss to the employee is real and the pending work/ customer pressure after strike is again borne by the poor employees taking the double whammy of having lost the salary and making up for the undone work on the strike days. Things are getting really murkier for the Bank employees.
3. This is rubbish to talk about MPS. The opportunity loss of delayed payment is enormous besides interest loss which has been attempted by Mr kumar. In fact I would like to add here that it is this dirty game both the parties (IBA & UFBU) play in the guise of negotiations. Bank earns interest and the large arrear helps to collect fatter levy. Pure hand in gloves stuff.
Lastly, i would like to remind that earlier BPS used to be every 4 years. it was changed to 5 years on the assurance that the Bankers would get their due on the very next day of revised pay eligibility. Unions then accepted it unanimously and the rest is history. Neither side would like that to happen for the reasons stated above.
Poor us bank employees!!!! Cheers!!
Our bank the south Indian bank is providing us 10% ad We'd 1/12/2012 on basic and da of Nov 2012
Indianbankkumar is right in calculating the gain by the banks on account of delayed settlement. It would be more apt to add the change in the income tax slab on account of arrears and more than anything getting arrears after unduely delayed settlement is like keeping a person starved for a week and given a lavish dinner which he would neither relish nor able to take.In case of government employees, the pay commission is constituted well in advance, the recommendations are accepted and implemented on the due date. If this is possible with pay commission why not for Bank employees.There is a saying that Justice delayed is Justice denied and this is apt for bank employees
Thanks Mr. Sawant . We need more people like you to get the facts and to understand hype from reality.
so 10 bipartite settlement drama came to conclusion on 03/02/2015 with 15.5% settlement. don't pay even rupee to unions, my dear innocent employees. already paid by IBA.
ALL LEADERS ARE AWARE OF THAT BUT WHAT ABOUT THEIR INTENTION WHICH IS ALWAYS SUSPICIOUS. "PAAP KA GHADA BHAR CHUKA HAI"--INKA ANT HONA HI CHAHIYE
Thank you Mr S Chandra.
We need more people like you to get the facts and to understand hype from reality.
Mr Saswat and one anonymous are from IBA's /Govt's side.
They hate bankers.
And who says 15.5 % is finalised?
Plz do not spread rumours. It can not be more than 13 or 13.5%.
Who cares... we are creating so much drama for meagre 1-2-3%..
Feelz like begger... not banker.
So sorry being a banker.
Bank employees will be very lucky if they get anything above 13%.
PRESENT VALUE of MONEY is GREATER than the FUTURE VALUE is the proved notion. The well educated BANKERS are being trapped once in 5 years for proloooonged period in the name of BPS. So, EMOTIONAL BLACK MAIL IS ALSO BEING EMPLOYED. Most of the bilateral discussions should have been taken place in FM campus so as to take on the spot decissions. Intelligence agencies normally alert the govt. On daily basis about all. Particularly about UNREST/AGITATION that is taking place in a specific sector, for a long period. The honourable PM Sir who has great penchant to clad posh dresses and lead an unique, followable life style should take care of less paid bankers too. At the same time, our ever vigilantembers also should monitor the life style of our beloved negotiating team members. For, a section of the media already leaked that the family members of this & that leaders got this & that. So, ultimately, we are not subjected to irreparable damage in thr form of poor % growth in pay in slip components. Any % below 30% growth in pay in slip components tantamounts to HITTING all of us, BELOW the BELT. Hence, emotional black mail tactices that if we object or protest to our own leaders,while talks are in "pROGRESs", about the given growth in %, they may victimise all of us or target us & our innocent family members for hardships / transfers to so & so placesay please be set aside and take proved conventional approach in posting our responsible, logical feelings, very briefly to the e mails of the FM, the PM, the SPEAKERS of Loksabha & Rajyasabha, the RBI's CHIEF, the Associated press etc. 30% growth in pay in slip components must be achieved in this 10th BPS itself. You all can takeup this task & achieve. Let us all do it again & again, legitimately, honourably, till we all get the dues sans levy. Let the leaders double our monthly subscription. But, no levy in any BPS. That term LEVY itself is bad. Hope u all agree with me. 40 lakhs of family members are the dependents of 10 lakhs of BANKERS. Do they deserve poor % growth & non standard working conditions in their bread earner's office or branch. We all deserve decent & dignified life like any public servant in other sectors. Jai Banker. Jai Banking.
In view of the above, there should be standard condition for every wage negotiation that in case of delay more than 6 months, interest on all kind of arrears also be paid by IBA/government at FD rate atleast.
And if negotiations delayed beyond 6 months, union levy would gradually decrease instead of ususal 1% and it would be NIL if negotations not wrapped up within 2 years.
This would speed up process on both sides.
I don't understand why unions demand a cut from the arrears. If bankers deny paying the cut from their accumulated arrears from revision the motivation for the unions to delay revision would be finished. Unfortunately this might also mean a lower percentage increase.
Good read all these things but u discussed about the employees whose basic is 40,000 but what about basic salaries are below 8,000. I request u to thing about those people and make some favors to those who suffering to survive with low salaries. I request you to demand some promotions to eligible candidates. (like sub-staff and PTS).
Ufbu has no guts to continue the called strike. We are ready for pay cut all loss but
All politics has spoil our future.
Who elected them as our leaders. Retired logon ka adda.
Why we wont quit? A nd make a new forum
Specially from new gen. Yeh purane log jo npa load hum logo ke upar deke ja rahe hain.un logo ka koi haq nehi hai hum logo ka future decide korne ka.
No levy no subscription
Non cooperation movement sgain
Funding nehin to sab style bandh hojayega
I m working in bob as an swo (clerk) .I want to know about salary structure after this settlement. ......hw much I will get. Please late me know as soon as possible. .......because im selected in railway as an goods gaurd that's reason im confused wt I do
It's Better to start negotiations for 11 th bipartite
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