Friday, July 31, 2020

D.A. for Aug to Oct 2020

About 45 demands are raised in "Common charter of demands"
Out of which 12 demands are projected as prime.
To achieve these demands UFBU called for Strike action in Jan, Feb and March 2020.
How many demands are achieved and how many achieved demands are nearer to the original demand?
UFBU should explain to members.

Wednesday, July 29, 2020


 2nd Floor, 109/10,
Angappa Naicken Street
CHENNAI-600 001

81:2020 July 28, 2020

Com.S. K. Bandlish,
United Forum Of Bank Unions, CHANDIGARH.



Our organisation, despite sending two SMSes, a couple of days earlier to the discussion, the letter of lBA addressed to you was sent to us. ln addition to this, even the virtual mode conversation held one day before the IBA meeting through virtual mode, no information was provided by your office. It was Com. Balaji, President NCBE stationed at Chennai informed about the virtual mode meeting. Further, UFBU forwarded a communication to lBA informing the places from where the representatives of all the constituents of UFBU would be communicating through virtual mode altered without any information to the constituents even for the courtesy sake. The meeting held with the help of AlSBOF on 21/07/2020, the sound audibility was defective, though no information was provided by your office, the undersigned remained present to know the plan of action the collective conclusion of views. It was a surprise to hear that you have proposed loading of 4% for construction of new Basic Pay in the meeting held at Mumbai on 16/03/2020. Unable to hear your presentation fully I was compelled to exit from the session with due information to you and the AlSBOF- ADMIN of the meet, by SMSes. The approach of your office towards our organisation certainly is unacceptalble, which needs to be amended/ corrected.


2. There was a message floating in the market that all other issues were sorted out except the % loading to construct the New Basic Pay on 29th Feb 2020 itself. How far it is to be taken as statement of truth is a million-dollar question or a couple of representatives were only privy to this information. Having expressed the environment in which we are operating, there are certain issues which are consciously brushed aside, despite placing the detailed notes on the merger of special Allowance with the Basic Pay, 5 day week as well as actuaries to be engaged to arrive at the correctness of the figures provided by IBA, as well as the shortfall in the corpus, if any.

While the tug of war was going on in the matter of loading, a stand-alone agenda placed by Team lBA as informed by the Chief of the negotiating team, despite time available at the disposal, you preferred not to solicit the views from the constituents. Finally, it was forced on the constituents. When rank and file are expecting the decisive role by UFBU on 5-day banking, it was at the fag end, it was expressed in clear terms to SBI Chairman that 5 days week brooks no delay in the changing environment of Pandemic driven economy by officers' representative on behalf of officers' organisations.


There is a clear cut decision by the Supreme Court that any allowance attracting dearness paid regularly, then it should be taken for terminal benefits. When a court ruling is in our favour, why there should be any hesitation to pursue the demand with lBA for a logical conclusion. IBA claimed Rs. 21000 crores towards pension provisioning if special allowance merger is agreed upon. The details should have been shared with the constituents in a transparent manner, which is lacking after you had gone to IBA office in December 2019 itself. It was expressed from the side of UFBU on 22n0 July 2020 on the negotiating table at MUMBAI, that 2% loading on Basic Pay was necessitated to cut the Pension cost in the last bipartite, a last minute inclusion on 24th May 2015.


This demand becomes more focussed in the background of Reserve Bank of India updating the Pension right from 1986 by its circular dated 5th March 2019. Our pension scheme is inline RBI Scheme. As the representatives of retirees organisations' met some of the constituents to pursue the demand of updating the Pension with 1BA along with the Current exercise of wage revision, and the assurances were made affirmatively, it is expected of us to realise the same. Though it was expected of lBA to work out the ways and means, after the signing of the Record Note 25th May 2015, after five years, on FAMILY PENSION, in principle Sanction was announced BY the SBI CHAIRMAN on 22nd July 2020. The up-dating of Pension needs to be pursued vigorously. Our organisation is of the confirmed view accommodating one section of the retires ie; upto 7th bipartite, is certainly attract severe criticism from the elders who built this Public Sector Character of the present Banks. They should not be left in the lurch.

It is expected of us to realise the above three demands seriously from IBA as well as to take with the Government of India.

5. It should not go down in the history that the interest of majority members are sacrificed. Instead, the benefit of any settlement should be enjoyed by the majority of the members past and the present.

Hope the midcourse correction will be made with required seriousness in realising the above demands thus saving the serious situation and also of aftermath of the settlement.

Yours comradely,


CC TO: All Constituents of UFBU

Sunday, July 26, 2020

Loading on Basic Pay

Regarding loading on Basic Pay after merging D.A with old Basic Pay:

Up to 9th BPS around 10 to 13% increase/load was given after merger of old Basic Pay and D.A.

It was changed in the 10th BPS  to 2% only at the last minute of signing the settlement.
Effect of this is to curtail post retirement benefit. i.e. Pension for life time, computation, Gratuity for seniors and NPS corpus fund of new employees.

This method of reducing retirement benefit is not implemented in any of the salary class employees viz.Central Govt., State Government , LIC, GIC , BSNL etc.,

Only Bank employees are cheated/betrayed in this aspect.
O.k.a blunder done by UFBU in 10th BPS.
There was a demand raised in Charter of Demand for 11th BPS, reverse the Special Allowance of 7.75% and add to Basic Pay.
What is the result?
The mistake is not corrected, rather the same blunder is continued in 11th BPS also.

What will the loss to employees?
Those employees who retired in 10 th BPS lost 7.75% of retirement benefit in Pension for life time, computation and Gratuity.
Those who are retiring in 11th BPS will lose 7.75+7.25=15% in retirement benefit.
If we calculate the loss in rupee terms it will mind blowing.
Please note that Employees under NPS also affected in the same way but through accumulation of NPS corpus,
as monthly contribution to NPS fund by employer will be less by 15%.
(I have posted many charts about the loss at the time of 10th BPS. available in my blog)

There is reduction of Pension in every settlement and also there would not be any updating of Pension on subsequent wage settlements.
Why Bank employees alone face this pathetic situation?

Will UFBU answer?

Saturday, July 25, 2020

14% and NPS

In the MOU signed on 22.07.2920 it is stated that Employers contribution to NPS will be 14 % (enhanced from 10%) from prospective date.
i.e. from date of settlement.

Is it an achievement of UFBU?

Certainly not.
UFBU has not at all demanded an increase in contribution to NPS in their charter of demand.
(You can even now check it, if you have a copy)
Instead UFBU asked for old Pension Sheme for all.

Then how it happened?
Central Government has increased the contribution towards NPS to 14% for their employees from 01.04.2019.

Banks implemented NPS scheme for employees joining on or after 01.04.2010, on the same terms and conditions of Central Government NPS scheme.

It is clearly spelt out in
9th Bi Partite settlement as follows:

"15. Provident Fund
(d)  There shall be  no Provident Fund  to employees joining the  services of  banks on or after  1st  April 2010. They  shall be covered by a Defined Contributory Pension Scheme,  where the employee  will  contribute 10%  of Pay plus Dearness  Allowance and the  bank will make a matching contribution. The Scheme shall be  governed by the  provisions of the Contributory Pension Scheme as  introduced for employees of Central Government  with effect  from 1st  January 2004 and modified from  time to time." 

Therefore it is automatic change that should be implemented from 01.04.2019.
Whereas for Bank Employees it will be implemented from Oct, or Nov 2020 only!

Now tell me is it achievement of UFBU?
In the same way present Medical Insurance Policy for Serving as well as for Pensioners is proposed by IBA only in 10th BPS and not by UFBU.
It was not demanded in Charter of demands.

In the same way one day
"5 Day Week" will be proposed by IBA and implemented.
Let us wait for that Day!!

Friday, July 24, 2020

No democracy in UFBU

 Indian National Bank Employees’ Federation (A Banking Wing of INTUC)

  INBEF/GS/SSS/2020/ 40          23rd July 2020 


Mr. Sanjeev Bandlish Convenor-UFBU. 

Reg: Proceedings and Developments in the Bipartite Talks held on 22nd  July 2020. 

With reference to above we would like to draw your attention to two of our letters dtd. 03.06.2020 and 18.07.2020 wherein we have been constantly demanding that before having talks with IBA’s negotiating committee there should be a full fledged discussion amongst the constituents of UFBU to work out the strategies to arrive at respectable wage settlement.

 Earlier there was a practice that when any constituent of UFBU writes a letter to the convenor, the same was being forwarded to all other constituents for inviting comments and thereafter the matter was being taken up for discussion in UFBU forthcoming meeting and if any urgent matter or issue was there, then the convenor used to call urgent meeting of UFBU.

 However, this practice has not been followed in the context of both of our letters.  Since IBA called virtual meeting on 22nd July 2020, you arranged a virtual meeting amongst UFBU constituents on 21st July 2020 and the said meeting began at 10.00 P M. As the audio was very poor, no fruitful discussion could take place.  Mr.Nagarajan, GS AIBOA left the meeting halfway. 

In the said meeting undersigned had particularly asked how much loading percentage over and above 2% of IBA’s offer would be acceptable to UFBU, but unfortunately nothing was clarified and it was just told that we would be demanding for above 2% loading.  Due to the poor connectivity and unclear audio meeting was winded up at 12.45 AM without any conclusion.   

Next day Mr.Venkatachalam AIBEA, Mr.Sanjeev Bandlish, Convenor, and undersigned GS INBEF were present physically at the meeting venue and Mr.Premkumar Makkar GS INBOC from SBI Delhi LHO, Mr.Nagar President AIBEA, Mr.Soumya Dutta GS AIBOC, Mr.Basu GS BEFI from Kolkata LHO, Mr.Upendrakumar GS, NOBW, Mr.Sunilkumar President AIBOC from Patna LHO, AIBOC, Mr.Nagarajan GS AIBOA, Mr.Bala President NCBE from Chennai LHO and Mr.Tikekar GS NOBO from Pune LHO were present virtually in the meeting with IBA which began from 11.30 A M onwards. 

Mr.Rajkiran Rai, Chairman Negotiation Committee IBA confirmed that 15% of wage bill as on 31.03.2017 is agreeable.  As regards loading factor, IBA began with 2% offer. On pension up-dation IBA said it is open to discuss the same on
Adhoc  basis.  On  Family  Pension  revision  IBA  said  it  would  recommend  the same  to  Government  and  would  try  to  resolve  the  same.   
*On  five  days  week, IBA  stated  that  Government  has  already  rejected  the  same.*

   After  threadbare discussions  for  more  than  2  hours,  IBA  increased  their  initial  offer  from  2%  to 2.25%  and  around  3.00  P  M  meeting  was  adjourned  and  agreed  to  assemble again  at  3.45  P  M.     Thereafter  Mr.Venkatachalam  AIBEA,  Mr.Sanjeev  Bandlish,  Convenor,  and  the undersigned  GS  INBEF  went  to  SBI  Employees  federation  office  to  discuss  the issues,  but  you  both  did  not  raise  the  topic  and  after  some  time  you  both informed  me  that  you  will  be  meeting  Chairman  Negotiation  Committee Mr.Rajkiran  Rai.

   Meeting  resumed  at  around  5.30  P  M  and  IBA  offered  2.40% of  loading  and  you  both  offered  2.70%  which  IBA  denied,  again  you  came  down to  2.60%  but  finally  IBA  offered  2.50%  loading  which  you  both  agreed.   

Before agreeing  to  the  IBA’s  offer  of  2.5%  as  per  procedure  you  should  have  adjourned the  meeting  with  a  reason  to  discuss  the  matter  within  the  constituents  of UFBU.    But  it  was  not  done  so  and  entire  process  was  carried  on  in  an undemocratic  manner  without  taking  views  of  the  constituents  on  the increased  offer.   
Thereafter,  you  both  started  signing  the  memorandum  in presence  of  Mr.Rajneesh  Kumar  Chairman  IBA.   
The  memorandum  was  then placed  before  me  to  sign  and  I  signed  unwillingly  because  if  I  would  have  not done  so,  then  a  scene  would  have  been  created  before  the  IBA  Chairman.   

The then  Convenor  of  UFBU  Mr.M  V  Murli  and  Mr.Venkatachalam  were  aware  that during  the 10th Bi-partite  settlement  eleventh  hour  changes  were  made  as  regards to  loading  and  Special  Pay  was  introduced  which  was  protested  by  INBEF  and accordingly  letter  was  given  to  IBA. 
We  have  seen  this  in  the  matter  of  introducing  7.75%  of  Special  Allowance which  is  not  being  considered  for  calculation  of  terminal  benefits.     

(in 9th BPS) Disparity  in providing  One  more  Pension  option  to  PF  optees,  both  existing  as  well  as retired  one  were  compelled  to  contribute  more  to  avail  the  pension  option. 
Retirees  were  forced  to  bear  156%  of  their  PF  Balance  received  at  the  time  of retirement  but  they  were  given  pension  from  a  future  date  i.e.  27.11.2009 irrespective  of  the  date  of  their  retirement.
 It  also  created  a  distortion  in  as much  as  that  an  employee  retired  on  30.11.2007  had  contributed  2.8  times  of the  revised  pay  as  on  01.11.2007  but  the  employee  retired  on  31.10.2007  was forced  to  refund  1.56  times  of  his  PF  accumulation.   

This  overnight  decision was  a  U  turn  because  of  AIBOA’s  punitive  stand  while  signing  the  Joint  Note dated  27.04.2010  which  was  and  is  against  the  PF  Optees’  and  a  wrong message  was  sent  amongst  the  bank  employees  and  officers.

This  is  not  the  first  time  that  such  type  of  eleventh-hour  changes  is  made  in the  wage  settlement  drafts. 
Shifting  of  base  Index  from  1616  to  1684  while deciding  the  wages  which  was  also  challenged  judicially.   
All  the  earlier  three settlements  were  challenged. 

Thus,  introducing  last  minute  changes  without taking  constituents  into  confidence  and  not  discussing  with  them  shows  the attitude  of  thrusting  upon  the  decisions  on  minority  organisations  and dragging  them  is  totally  undemocratic  approach  being  followed  by  majority organisations. 

In  fact,  under  the  prevailing  scenario  of  Pandemic  there  was  a  public  sympathy wave  for  bank  employees  who  have  rendered  relentless  banking  services  and kept  the  wheels  of  the  basic  banking  needs  of  common  man  moving,  but unfortunately,  we  failed  to  capitalise  the  Public  Sympathy  in  achieving  better settlement.   
This  was  the  right  time  we  should  have  shown  our  unity  and  put pressure  to  bag  maximum  of  our  demands  including  better  loading  factor,  5 days  week,  up-dation  of  pension,  revision  of  family  pension  (which  is  not included  in  MOU  but  verbally  informed  by  IBA  Chairman  that  it  is  agreed  in principle  to  improve  family  pension  to  uniform  30%  for  all  and  without  any ceiling).

All  these  events  of  22nd  July  2020  and  circumstances  points  out  clearly  that being  in  UFBU,  the  voices  of  all  constituents  are  not  heard  and  not  given  due recognition.   
There  is  lack  of  transparency  within  UFBU  functioning.    Majority organisations  try  to  enforce  the  pressure  on  minority  organisations  to  compel and  concur  with  their  stand.   
Earlier  when  UFBU  was  not  there  at  least  the minority  organisations  had  freedom  to  put  forth  their  views  straight  before  IBA separately  and  the  same  were  even  being  discussed  before  arriving  at consensus.   

The  present  style  of  functioning  of  UFBU  is  forcing  us  to  place  our displeasure  on  record.  Before  it  is  too  late  UFBU  should  review  its  style  and functioning  so  that  unitedly  we  can  bag  our  justifiable  demands  for  the  benefits of bank  employees  and  officers.

 With  regards,

Subhash  S  Sawant
General Secretary-INBEF

Cc  to  :  General  Secretaries. 1)  All India  Bank  Employees’  Association  (  AIBEA).
2)  National Confederation  of Bank  Employees  (NCBE).
3)  Bank  Employees'  Federation  of India  (BEFI).
4)  Indian  National Bank  Employees'  Federation  (INBEF).
5)  National Organization  of Bank  Workers  (NOBW).
6)  All India  Bank  Officers'  Confederation  (AIBOC).
7)  All India  Bank  Officers’  Association  (AIBOA).
8)  Indian  National Bank  Officers'  Congress  (INBOC).
9)  National Organization  of Bank  Officers  (NOBO). 

Thursday, July 23, 2020

UFBU circular om MOU:

UFBU circular om MOU:

Earlier on 21 July night, a virtual meeting of the UFBU was held and viewpoints of all constituent unions were enlisted to adopt a common approach. 
During the discussions with 1BA, Shri Rajkiran Rai explained the constraints faced by the Banks and the challenges that are emerging before the Banks consequent to covid19 which are limiting the capacity of the Banks to incur additional load under establishment expense/wage expenses. 
Hence he urged upon the UFBU to conclude the issue with their offer of pay slip component 15%. 
From our side, while reiterating our viewpoints made in the earlier round of discussions, pointed out that the additional loading factor after merger of DA at 6352 points should be satisfactorily resolved so that an MoU could be signed. 
After prolonged discussions by all the unions and after a lot of deliberations, it was mutually agreed that the additional loading factor after merger of D.A. will be 2.5% thus paving the way for signing the MoU.

Accordingly, the MoU/Minutes of Discussions has been finalized and signed. The main features of the Understandings are as under:

The 11" Bipartite Wage revision/Joint Note for
Officers will be effective from 01-11-2017.

Increase under this Wage Revision will be Rs.7898 crores per year i.e. 15% on the wage bill of PSBs (payslip component cost) as on 31.03.2017.

New pay scales would be worked by merging DA upto 6352 points of price index with an additional loading of 2.5%.

After prolonged discussions and deliberations, it has been agreed to introduce Performance Linked Incentive(PLI) in Public Sector Banks, which will be based on Operating/Net Profit of the individual bank(optional for private & foreign banks). 
The PLI is payable to all employees annually over and above the normal salary payable. 
The PLI matrix decides the amount payable to the employees (in number of days of pay=Basic+DA) depending on the annual performance of the Bank. All the employees will get the number of days of pay as incentive depending on where in the matrix the Bank's performance fits in, broadly

as per Matrix under:

Sr.No. YoY

in No.of days for which Salary (Basic+DA)

Growth on Operating Profit shall be paid

<5% 5% to 10% >10% to 15% >15%

Nil 5 days 10 days* 15 days*

*3 and 4 slabs are payable only if the Bank has Net Profit. If a Bank has growth in Operating Profit of 5% & more, but there is no Net Profit, then minimum 2" slab of 5 days will be payable.

(The PLI will be applicable from FY-2020-21)

From this calendar year each employee below 55 years of age can encash PL upto 5 days per year for any one festival (7 days for those above 55 years of age).

For employees who have joined the Banks under NPs, management's contribution would be at 14% of Pay and DA against 10% now.

Improvement in service conditions discussed and agreed upon so far would be duly incorporated in the final settlement

All other pending issues including 5 days banking, updation of pension, etc. are open and would be further discussed.

The full-fledged and final settlement with revised payscales and allowances and incorporating all the agreed issues would be concluded within the next 90 days.

Thereafter Settlement will be 
implemented and revised salaries would be paid accordingly. 

Good news -
 Improvement in Family Pension: 
On conclusion and signing of the MoU, the Chairman of IBA and SBI, Shri Rajnish Kumar came in the meeting room and participated in the discussions.

 During his address to all the participants, he informed that IBA agrees in principle to improve Family Pension to uniform rate of 30% for all family pensioners without any ceiling and the existing ceilings of family pension will be removed. Necessary approval of the Government would be obtained. 
Addressing the participants, he expressed his satisfaction on the satisfactory signing of the MoU which includes wage increase and new schemes like PLI and encashment of privilege leave, etc. 
He emphasized the need the ensure a robust banking system which is responsive to the present-day challenges facing the country and our economy and hence the importance of improving productivity, efficiency and responsiveness to the needs of the customers and other stakeholders of the banks. 
He also made a special reference to the service being rendered by bank employees and officers under the present pandemic circumstances amidst all difficulties.

 Government is also appreciative of the same and informed that all this could have been possible because of the positive attitude of the Finance Minister for the Bank Employees as well as Officers. 

From our side, we expressed our thankfulness to him for his positive interventions during the course of negotiations which has helped in reaching the MoU. 

We also assured him that the entire banking fraternity would surely rise to the occasion, as hitherto, and it would be our endeavour to improve the services, productivity and efficiency. 

We also brought to the attention of the IBA, the various problems faced by bank employees and officers in discharging their duties under lockdown and Pandemic COVID-19 situation and 1BA assured to discuss and resolve these issues at their level at the earliest. 

Compassionate appointments in the case of the families of the employees/officers who lost their lives due to corona infection, 1BA assured to look into the same. 

Comrades, the signing of the MoU marks the culmination of the long process of our negotiations during which we had to engage ourselves in agitations including strike actions.

The unity and co-operation amongst our unions and members has resulted in achieving this satisfactory MoU amidst the present uncertainties and challenges posed by Covid19 pandemic.

 We congratulate all of our unions and members for this achievement in the circumstances. 
We shall now take further steps to work out the final Settlement at the earliest.

Sd.. S KBandlish, Convener, UFBU

No change on 7.75 %spl allowance, 
loading only 2.50% even though fund will be available, 
no change on retirees' issues. Nothing positive on 5 day's  week.
These are the major areas  of our difference.
In yesterday's  UFBU meeting also there was no decision to sign  without positive improvement on these issues.
BEFI should have acted like this in the last BPS itself.
However better late than never.
My view reposted:
Thursday, October 10, 2019
In the last BPS, in the last minute a new concept was introduced.
Yes, i.e. only 2% out of 15% increase will be loaded in Basic Pay.
This decision was not disclosed to employees till the date of signing the minutes.
Till the last meeting between UBFU and IBA no word is uttered about this proposal.
Only on releasing of signed minutes employees  came to know this decision.
That is a back stabe by a union.
Other unions said they were not aware of this,
They have to sign on the dotted lines as prescribed by the Big brother and IBA.
But, this excuse is unaccepted by the members.
Instead , a new spl.allowance was introduced which will not be taken for retirement benefits.
Thereby member's pension was reduced by Rs.3000 to 4000 every month.
Computation and Gratuity are reduced by huge amount.
This concept affects not only seniors but also New recruits after 2010.
As their NPS contribution by Bank as well as employees will be reduced by 7.5% (spl.allowance and D.A.thereon) every month.
If you calculate for 35 years of service , and future increase in wage revision, annual increments & D.A., the amount will be mind blowing.
If we assume one employee covered 7 settlements for 35 years of service.
Then Seniors retired between 2012-17 will be affected by one time only.
Those retiring  between 2017-22 will be affected 2 times only.
But, recruits after 2010 will be affected in all the 7 settlement.
Hence the loss will be higher and higher.
Runs to lakhs and lakhs of rupees.
Why I am writing this at this juncture?
There is a reason.
In the last BPS meeting the proposal was put forth by IBA again this time.
But, UFBU is tight lipped about this proposal.
Whether they are opposing or accepting this proposal?
I want to remind , In the charter of demand by UFBU , it demanded the existing special allowance to be merged with Basic Pay.
In this scenario, it is the duty of serving work force to give pressure to unions not to accept this 2% load proposal , and stick to charter of demand.
In every settlement a twist , a back stabe is done by Big Bro at the last minute, and other unions seem to be helpless and join the treachery.
This should not happen this time also.
Send your views on loading, by SMS, Whatsapp message , e-mails, and letters to your union leaders.
Commenting, scolding, cursing unions after everything goes out of hand is if no use.

Wednesday, July 22, 2020

We are happy to inform that in today's meeting between IBA and UFBU, broad understanding has been reached and MOU has been signed.
Detailed circular follows.

C.H. Venkatachalam
MOU signed today. BEFI did not become a party to this MOU. Detail circular follows.

Debasish Basu Chaudhury,