Monday, July 30, 2018

Today, on Monday the 30th July, 2018 talks regarding 11th Bipartite Settlement were held between IBA and UFBU at IBA office, Mumbai at 11.30 am.

After the full Negotiating Committee Meeting on 5th May, 2018, when IBA made an offer for 2% hike on Pay Slip,
Negotiating Committee met for first time after almost three months' gap.

IBA Chairman made an offer for 6% hike on salary slip.
The offer was declined by UFBU as it did not satisfy our expectations.

*Other Points Discussed*
1. We wanted salary negotiations to be held upto G.M. level as was practice during earlier settlements. But IBA firmly declined this demand. Negotiations to be held only upto Scale III.

2. Last sub-committee meeting on Medical Insurance Scheme was held on 16.05.2018. Today on behalf of Insurance Co.,
IBA proposed hike in annual premiums as under :--

*In Service Employees : 30% hike in premium is proposed.*
*For Retired Employees :  with Domiciliary Treatment Policy hike of 144% is proposed  The hike for without Domiciliary Treatment is proposed at 110%.*

3.  During 10th Bipartite 2nd & 4th Saturdays were declared as Holidays. UFBU demanded that all Saturdays and Sundays should be Holidays. IBA promised to come back after discussing the issue with stake holders.

4. About demand of increase in Family Pension, IBA asked us to give our logic and calculations in writing.

5. For having necessary infrastructure to deal with Medical Insurance Co.’s, next meeting between IBA and UFBU is scheduled on 8th August 2018.

6.  After proposed hike in Medical Insurance Premiums, Banks are requested to deliver letters accepting continuation with present scheme. *They have an option to go back on old Medical Bill Reimbursement Scheme of their own.*
 For this purpose meeting between BANKS and IBA is fixed on 4th August 2018.

7. Legal Cases of Frauds in which Bank officials and lower level personnel is subjected to Police/CBI enquiries and actions, are to be decided by respective Bank Managements and their Boards. IBA asked Unions to take up this issue with respective Bank Boards.

8. *Next round of talks on 11th Bipartite may tentatively be held on 27th/28th August 2018.* Before that Medical Insurance Sub-Committee will meet on 8th August 2018.

9. On 18th August 2018 separate sub-committees for Workmen and Officers will meet separately.
Let us hope for better on 27/28th August 2018, during next round.

*Wage Revision  talks Today 30.07.2018*
*IBA offer has been increased to 6% from 2% earlier.*
*UFBU not agreed to this.*
*Date for further meeting fixed.*
*Circular follows.*

Sunday, July 22, 2018

Refer in the year 2010 at the time of 9th B.P.S., those who (both serving and retired) opt for Pension paid some amount to their respective Banks.
Regarding tax treatment of above amount, unions filed case.
As stay granted , amount of tax deducted towards this contribution by banks are kept in Sundry Deposit, and not remited to Tax dept.,
In the mean time several employees received notices from I.T. dept demanding payment of tax for the above contribution.

What is the position of these cases?

Here is explanation received from AIBOC.

Please note that the case filed AIIBOA (AIBOC) in Kerala High Court is lost and the AIIBOA (AIBOC) has informed the Management that they are not going on appeal and the Management can remit the money to the IT department.

However in Madras High Court another case filed by AIBOA, the court has directed all banks not to remit the money to IT Department.
This stay is in force.

The problem with the IT department is that they do not care for any court order. Till AIBOA case reaches finality this problem will continue.
( A.I.B.P.A.R.C.)

Circular No. 58/18 20.07.2018

Dear Comrade,

*Pending issues of Bank Pensioners & Retirees*

We reproduce hereunder circular no. 13/2018 dt. 16.07.18 addressed to all affiliates of CBPRO for favour of information of our members.

With best wishes,


Circular No. 013/2018 Dated: 16.07.2018
All General Secretaries,
Constituents of CBPRO

Dear Comrades,

We have been following up the pending issues of Bank Pensioners and Retirees among others with the Department of Financial Services,
Government of India on a regular basis. Accordingly, we had a meeting with the senior officials of Department of Financial Services on
11.07.2018 and discussed the following issues:

*Negotiation Rights with IBA.*

*Updation of Pension*

*Uniform 30% Family Pension without ceiling*

*Uniform 100% DA Neutralization*

*Medical Insurance*

*Pension to left out Compulsorily Retired Officers*

*Pension for Resignees*

*Reckoning of Special Allowance Component for Pension and Gratuity*

We furnish below the brief details of our representation to the Department of Financial Services during the said meeting:


*Negotiation Rights with IBA:*
We request you to provide us a formal structured machinery to negotiate the issues of Bank Pensioners and
Retirees with Indian Bank Association (IBA).

*Updation of Pension:*

 Pension Regulation 35(1) dealt with Updation of Basic & Additional Pension in respect of employees who retired
between the 1st Day of January 1986 but before the 31st Day of October 1987, as per formula given in appendix 1. The provision of updation of
basic and additional Pension - Regulation 35(1) was therefore implemented at the time of introduction of Pension scheme in the Banks.
 The Govt. of India amended Regulation 35(1) vide notification in Government
 Gazette (No.9) dated 1st March 2003 as under:
“Basic pension and additional pension, wherever applicable, shall be updated as per the formulae given in appendix-1”.
A perusal of original Regulation 35(1) vis a vis amended Regulation 35(1) would show that the restricted application of Updation of Pension in
respect of those who retired between 01.01.1986 and 31.10.1987 has been extended to cover all retirees wherever applicable. IBA and Banks
have been denying the benefit of updation to the eligible pensioners who retired after 01.11.1987 for unjustifiable reasons. This has resulted in
creating a huge difference as some retired General Managers are drawing lesser pension than that of a senior clerical staff retired recently.
Sir, you will appreciate that our Pension Regulations being the subordinate legislation assume greater significance and amended Regulation
35(1) provides an accrued right to the pensioners who have retired after 01.11.1987. We therefore request your Goodself to consider our request
for revision/updation of pension favourably.

*Uniform 30% Family Pension without ceiling:*

Family Pension in Banks is payable at 30%, 20% and 15% of last drawn pay of the deceased
Employee/Pensioner with lower percentage being assigned to higher pay. It in effect meant that Family Pensioners of those who retired as
officers would get the lowest 15% of last drawn pay that too with a specified ceiling on the amount of Basic Pension which effectively translated
into a mere 7% to 10% of last drawn pay. This distortion was corrected by the Govt. and RBI by fixing Family Pension uniformly at 30% of Pay.
Regulation 56 of the Banks Pension Regulations provides for the similar treatment to Bank Family Pensioners. We also understand that IBA is
engaged on this issue which was minuted in the form of a record note at the time of signing of 10th Bipartite Settlement. We request you to help
us in getting this very passionate demand resolved at the earliest.

*Uniform 100% DA Neutralization:*

After the introduction of 100% DA neutralization in lieu of tapering DA by the Central Govt. during the
revision under 5th Pay Commission (1996), Banks too introduced uniform 100% DA neutralization from 2005 but made it applicable only to
those who retired on or after 01.11.2002 despite there being no mention in the bipartite settlement about such artificial classification based on
the date of retirement.

*Medical Insurance:*
After prolonged representations, the Government vide F.NO. 14/7/92-IR(Vol-II) Dated 24th February 2012 advised IBA to
formulate a uniform Medical Insurance Scheme for both serving and retired employees. The IBA in the last (10th) Bipartite Settlement
introduced Medical Insurance Schemes for both serving and retired employees but created discrimination with regard to payment of insurance
premium by bearing it in case of serving employees and forcing the retired employees to pay the premium. This discriminatory treatment has
robbed the retired employees of Banking Industry by as large a sum as Rs. 40,804/- for the renewal of their medical insurance w.e.f. 01.11.2017.
It is in contrast to free Medical Facilities extended to senior level bankers viz., CMD/MD/CEO/EDs after retirement and hence we request for
extension of similar medical facilities to rest of the retired Bank Employees.
Sir, you will appreciate that the need for medical care is no lesser important in case of Bank Pensioners and Retirees than the full time Board
level employees of the Bank. Extending similar benefit to Bank Pensioners and Retirees would uphold the fair principles of equity. We request
you to consider the same at the time of ensuing renewal of IBA arranged/negotiated medical insurance policy for Bank Pensioners and Retirees
which is due on 01.11.2018.

*Pension to left out Compulsorily Retired Officers:*

The Hon’ble Supreme Court in case of compulsorily retired officers of Andhra Bank has
allowed second pension option. Since the Hon’ble Supreme Court has its jurisdiction all over the country, the compulsorily retired officers in
other banks too be extended similar benefit as a good gesture. We request that the Government as Good Employer should accept the same for all
the Banks as it has been upheld by the highest court in case of similarly placed officers. Some of the Banks are yet to implement the pension to
left out compulsorily retired officers, despite IBA having issued the communication to all the member banks as early as March 2018.

*Pension for Resignees:*

 IBA advised the banks to extend second option to the petitioners only in case of Vijaya Bank instead of giving benefits
to similarly placed resignees who have put in more than 20 years of service. Such an extension of second option to similarly placed Officers in
Vijaya Bank and also in other Banks as advised by IBA in case of left out compulsorily retired officers.

*Reckoning of Special Allowance Component for Pension and Gratuity:*

A Special Allowance was introduced as a part of Pay in the Xth Bi-
Partite settlement. This allowance was attracting Dearness Allowance but was excluded for the purpose of computing Pension and calculating
Gratuity. It is important to note that in the case of LIC of India, the similar Special Allowance is treated at par with the grade pay of government
employees and the same is also reckoned for terminal benefits including Pension & Gratuity. The payment of Gratuity Act defines Wages as
emoluments with Dearness Allowance excluding HRA, Overtime and any other Allowance. It is pertinent to submit that the Special Allowance
component payable to Bank employees and Officers attracts DA at same rate as on Basic Pay. Hence Special Allowance and DA thereon form
an integral component of Wages. It is therefore required to be taken into consideration while calculating Gratuity/Pension at the time of
retirement. Exclusion of Special Allowance and DA thereon is violative of the provisions of the Payment of Gratuity Act 1972, its exclusion in
Xth Bi-Partite notwithstanding. We request you to make necessary arrangements with IBA to rectify the anomaly at the earliest.
We are alive to the anxiety and concern of the Bank Pensioners and Retirees and hence are committed to continue our endeavours for bringing
about improvements in the conditions of Bank Retirees.

With Regards

Yours Comradely

 A.Ramesh Babu K.V. Acharya
 Joint Conveners

Circular Letter No. AIBOC/2018/39 Date: 17.07.2018

To All Affiliates/Secretary of State Units

Dear Comrade,


We reproduce hereunder the Note signed by the Joint Forum of 4 Officers
Organisations and the letter given to the Additional Secretary, Dept of Financial
Services on the subject captioned above for your information.
With regards,
Yours Comradely,
Soumya Datta
General Secretary

Text of the letter given to DFS

Ref: Officers/5 CAMP: Delhi

The Additional Secretary
Dept. Of Financial Services
New Delhi

Dear Sir,

Wage Revision

We are glad to know that you have completed the process of appointment of
experienced executives from PSBs to head the Banks. We hope that all Banks
would have suitable and able Heads in this hour of crisis. We are also glad that the
Ministry has voiced against the tendency to paint the Bankers in dark and against
unnecessary arrests and harassment. We request you to issue a media statement
on this, as this would definitely lift the sagging morale of the bankers, encourage
them to fight the fear-psychosis and to re-infuse the confidence in them to take
decisions. Bankers would be extremely thankful to you for this.
You have addressed many letters to the Chief Executives of the Banks, under copy
to Indian Banks Association, reminding them to complete the process of salary
revision before 01.11.17. Banking work force were, in fact, delighted to see the pro-
active instructions from your Office and were expecting an early salary revision.
But, unfortunately the process has not taken off meaningfully. Salary revision has
reached an impasse. We request your urgent intervention in the matter.
We highlight few specific issues hereunder, with the earnest hope that suitable
instructions will be issued to all concerned to take them forward for meaningful
discussion and conclusions.
1. Unconditional Mandate
While nearly all the member of Banks of IBA have given unconditional mandate to
IBA to negotiate, 6 Banks viz. SBI, PNB, BOB, Indian Bank, Union Bank of
India and Oriental Bank of Commerce have given conditional mandate to
restrict negotiations up to Scale III/IV. This is illogical, divisive and a deviation
from the followed practice. All along the negotiations have taken place for Officers
up to Scale VII, based on the Scales introduced by the Pillai Committee, which are
common up to scale VII and are part of the Officers’ Service Rules. This has been a
stumbling block and delaying the negotiations.
2. Five Day Banking
Banks around the world works only for 5 days. There is a thinking in few countries
to restrict working days to 4 in a week. The mature alternate channel of banking
has been good enough to meet and address the banking needs of the customers.
Most of the Govt Offices/establishments, IT Sector and major Private Sector
companies work only for 5 days in a week. Introduction of Five Days Banking will
help the Officers & Staff to have Work - Life Balance and increase productivity.
3. Decent Wage Hike
Today, the Officers in the banking industry are functioning in challenging and
stressful environment, are subject to high level of accountability and the
discomfort of frequent transfers and dislocations. The competitive environment
demands best talent. In fitness of things, we demand that salary of bank officers
be fair and comparable to the best ones in Government, PSUs & Private Sector, so
that the crucial and sensitive banking sector will be able to attract and retain best
4. Regulated Working Hours
Banks are implementing Govt Schemes and programmes like opening of Jandhan
A/cs, Mudra Loans, Pension Schemes, Aadhar-Linking and many such activities,
in addition to the normal banking activities. There has been humungous increase
in the work-load on the Officers. This has constrained the officers’ fraternity to
work beyond the stipulated office hours. Working beyond office hours has been
taking a toll on the performance and the health of the Officers, their social
relationship within the family and has resulted in a burn-out situation. These have a definite negative effect on the health and on the quality of their life. Hence, we
demand a Regulated Working Hours regime
 We also demand that adequate number of Officers and staff be recruited urgently.
As it is well known, in the next 5 years, a huge number of officers and staff will be
superannuating. Unless recruitment takes place immediately, knowledge transfer
may not take place and a talent-vacuum may set-in in the Industry, harming the
very organizations and the economy.
5. Superannuation benefits:
Few issues pertaining to superannuation benefits were not settled in the last wage
revision but were part of a Record Note signed by IBA and the Constituents of
UFBU. It may please be appreciated that the issues pertaining to the previous
wage revision are still to be settled though we have commenced negotiation for the
next salary revision.
Few important issues pending are:-
1. Revision in Family Pension
2. Updation of Pension
3. 100% Neutralisation of DA
4. 50% of last drawn pay as Pension for all
5. Uniform Commutation Formula
6. Other Issues of Wage Revision:
There are issues like Special Area Allowances, Conversion of New Pension Scheme
into an Assured Pension Scheme, Compassionate Appointments, Leave Fare
Concession etc.
We appeal to you to please intervene immediately so that the settlement can be
arrived at quickly and the Bankers can focus more on restoration of the glory of
banking sector with renewed enthusiasm and zeal.
Thanking you,

Yours sincerely,
 Sd/- Sd/- Sd/- Sd/-
Soumya Datta S. Nagarajan K.K. Nair S.U. Deshpande
General Secretary General Secretary General Secretary President