AINBOF CIRCULAR NO. 6 DATED 27.11.2009

All India Nationalised Banks Officers' Federation (AINBOF) has released its circular No.6 dated 27.11.2009 on understandings reached on wage revision with IBA.

We are reproducing the same here for our readers.

Circular No.: 06/2009.           Date : 27.11.2009.     

Dear comrades

UNDERSTANDING REACHED ON WAGE REVISION - PENSION

We are glad to inform the members that memoranda of understandings have been signed between the nine unions of UFBU and the IBA on Wage Revision and Pension Option.  These agreements showcase the magnificent unity, relentless struggle and immense patience and fortitude shown by the members all over the country throughout this struggle for the last several years.

The wage increase of 17.5% is the highest ever in the industry and will be effective from 01.11.2007.  The pension option will bring in nearly three lakh families under the umbrella of social security net in the form of defined pension.  It may be noted that the global trend today, including in Europe known for its social security measures, is to have defined contribution from employees for uncertain return.  In this background the success of UFBU in achieving this vital demand is a historic victory for the entire working class in the banking industry.  The pension option will be effective from the date of settlement and will cover all the existing and retired employees who can now exercise their option.

The UFBU will now move in earnest to work out the pay scales, allowances and other related issues and finalise the settlement at the earliest to enable the early implementation of the agreements and payment of arrears.

We also regret to inform the members that Com. G.D. Nadaf, General Secretary of AIBOC and Com. S.A. Kadri, General Secretary, NCBE did not sign the agreements on the ground that their demands concerning officers/workmen of State Bank of India are not incorporated in the agreements.  Though the IBA stated that the industry level agreements cannot reflect bank specific issues they did not relent, thereby necessitating the Presidents of AIBOC and NCBE to sign the agreements on behalf of their respective organisations as it is apparent that membership in general are for early settlement and there was grave danger of second option for pension slipping away from our hands.  We place the understandings reproduced as annexure to this circular as a tribute to the collective wisdom of our members and for the final scrutiny of their better judgement.  This was a historical task needed to be got done without fear nor favour.

With one crucial step over, we shall overcome the rest.

With warm greetings & congratulations, 

Yours comradely,

Sd/-

(K.S. SHETTY)

GENERAL SECRETARY.

ANNEXURE-I

Minutes of the discussions held on  27^th November 2009 between IBA representing Management of banks which are parties to the Bipartite Settlement and the four Officers’ Associations viz. AIBOC, AIBOA, INBOC & NOBO on wage revision

Discussions were held between the Indian Banks’ Association representing Managements of banks and the authorized representatives of four Officers’ Associations, viz.  All India Bank Officers’ Confederation, All India Bank Officers’ Association, Indian National Bank Officers’ Congress and National Organisation of Bank Officers on wage revision for officers in banks. After holding several rounds of discussions, the parties have mutually agreed as under:

1.      The wage revision will be effective from 1.11.2007

2.      The annual wage increase will be Rs.2239 crores.

3.      The additional cost of pe6nsion on account of wage revision in excess of statutory contribution of 10% of pay will be shared equally between management and employees (13% of pay each) and the share of employees so calculated will be deducted from the agreed wage increase while revising salary and allowances.

4.      All other issues of the Managements and Associations discussed during the process of negotiation will be settled to the mutual satisfaction.

The parties will meet on mutually convenient dates to draw out a detailed Joint Note on the various issues on which consensus positions have been reached.  The parties will endeavour to finalise the Joint Note  within a period of ninety days from the date of this minutes.

Signed at Mumbai on 27^th November 2009

FOR MANAGEMENT	FOR OFFICERS’ ASSOCIATION
Sd/- M.V. NAIR Chairman IBA (CMD Union Bank of India)	Sd/- K.S. SHETTY All India Bank Officers’ Confederatio
Sd/- K.R. KAMATH Chairman & Managing Director Punjab National Bank	Sd/- R.J. SREEDHARAN All India Bank Officers’ Association
Sd/- ALBERT TAURO Chairman & Managing Director Vijaya Bank	Sd/- K.K. NAIR Indian National Bank Officers’ Congress
Sd/- S.C. GUPTA Chairman & Managing Director United Bank of India	Sd/- S.N. JOSHI National Organisation of Bank Officers
Sd/- N. RAJA Dy. Managing Director State Bank of India
Sd/- DR. K. RAMAKRISHNA Chief Executive IBA
Sd/- JAGDISH PAI K.L. Executive Director Canara Bank
Sd/- B.B. DAS Chief General Manager State Bank of India
Sd/- RAJIV RISHI General Manager Oriental Bank Of Commerce
Sd/-

ANNEXURE-II

Minutes of the Discussions held on 27^th November 2009 between IBA  representing the Management of Banks and UFBU consisting of  5 Workmen Unions

viz. AIBEA, NCBE, BEFI, INBEF and NOBW and  4 Officers’ Associations

 viz. AIBOC, AIBOA, INBOC & NOBO on another option to join the pension scheme 

The Indian Banks’ Association and the United Forum of Bank Unions (UFBU) entered into a Memorandum of Understanding on 25^th February 2008 on various issues. Extending another option for pension to those who did not opt for pension when Bank Employees’ Pension Regulations, 1995 were implemented was one of the issues to be considered.  Several rounds of discussions have taken place on the issue. An  actuarial valuation of the liability was assessed through two commonly agreed actuaries who identified the total liability for extending another option for pension to non-optees.

On receipt of the actuarial valuation of the liability, several rounds of discussions have taken place between the parties and the following terms have been mutually agreed.

1.    Existing employees

         (i)         The employees who were in service of the Banks as on the date of Pension Regulation ie. 29.9.1995/ 26.3.1996 and continue in service as on the date of settlement/ Joint Note to be signed between the parties, shall be given one more option to join the Pension Scheme.

        (ii)        The Banks’ contribution to Provident Fund along with interest thereon in respect of those employees who opt for pension shall be transferred to the Pension Funds of the respective Banks.

        (iii)       The gap in the pension fund identified will be shared between parties as under:

(a)         70% of the gap by the bank.

(b)         30% by the employees who are in service of the bank as on the date of Memorandum of Settlement/ Joint Note to be signed between the parties in this regard. This amount will be recovered from the arrears payable on wage revision.

2.     Retired Employees

         (i)         Those employees who were in the service of the bank as on 29.9.1995/ 26.3.1996 who were eligible but, did not opt for pension and retired thereafter shall also be extended the option for joining the Pension Scheme.  Towards joining the Pension Scheme they will –

(a)               Refund the bank’s contribution to the Provident Fund with interest thereof received by them at the time of retirement.

(b)               Contribute to the Pension Fund their share of 30% of the gap in the pension fund identified.

3.                       The Bank Employees’ Pension Regulations, 1995 will be effective upto 31.3.2010 and cease to apply to any person appointed in the services of  banks on or after 1.4.2010.

4.                       A defined contributory retirement benefit scheme as governed by  the “contributory pension  scheme introduced  for  employees  of  Central  Government   with   effect from 1.1.2004” will be introduced for workmen/officers joining the services of banks on or after 1.4.2010. There shall be no separate contributory provident fund in respect of these workmen/officers.

5.                       The terms of this minutes will not be applicable to State Bank of India.

6.                       The Parties will meet on mutually convenient dates to draw out a detailed Memorandum of Settlement/Joint Note in this regard; and appropriate modifications in the Bank Employees’ Pension Regulations will be made following the prescribed procedure in this regard.  The parties will endeavour to finalise the Memorandum of Settlement/ Joint Note within a period of ninety days from the date of this minutes.

Signed at Mumbai on 27^th November 2009

FOR MANAGEMENT	FOR OFFICERS’ ASSOCIATIONS
Sd/- M.V. NAIR Chairman IBA (CMD Union Bank of Bank)	Sd/- K.S. SHETTY All India Bank Officers’ Confederation
Sd/- K.R. KAMATH Chairman & Managing Director Punjab National Bank	Sd/- R.J. SREEDHARAN All India Bank Officers’ Association
Sd/- ALBERT TAURO Chairman & Managing Director Vijaya Bank	Sd/- K.K. NAIR Indian National Bank Officers’ Congress
Sd/- S.C. GUPTA Chairman & Managing Director United Bank of India	Sd/- S.N. JOSHI National Organisation of Bank Officers
Sd/- N. RAJA Dy. Managing Director State Bank of India	FOR WORKMEN UNIONS
Sd/- DR. K. RAMAKRISHNA Chief Executive IBA	Sd/- All India Bank Employees’ Association
Sd/- JAGDISH PAI K.L. Executive Director Canara Bank	Sd/- National Confederation of Bank Employees
Sd/- B.B. DAS Chief General Manager State Bank of India	Sd/- Bank Employees’ Federation of India
Sd/- RAJIV RISHI General Manager Oriental Bank Of Commerce	Sd/- Indian National Bank Employees’ Federation
Sd/-	Sd/- National Organisation of Bank Workers