AIBOC CIRCULAR NO. 100 DATED 02.11.2011

AIBOC issued its circular No. 100 dated 02.11.2011 on press reports about Khandelwal Committee Recommendations. We are reproducing the same here for our readers.

CIRCULAR NO.100                               DATE: 02.11.2011

TO ALL AFFILIATES /MEMBERS:

PRESS REPORTS ABOUT KHANDELWAL COMMITTEE RECOMMENDATIONS - OUR COMMUNICATION TO INDIAN BANKS’ ASSOCIATION

Our attention has been drawn to some of the press reports appearing in financial papers in particular about the initiative of the Government and seeking the views of IBA in regard to introduction of variable pay concept in Banking Industry and change in recruitment policy etc. We have to-day sent a communication to IBA conveying our strong views in the matter.  A copy of the same is enclosed. The issue will be discussed at UFBU level and appropriate action programme will be chalked out.

All our affiliates/members are requested to await further developments in the matter.

With greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

To,

The Chairman,

Indian Banks’ Association,

MUMBAI.

Dear Sir,

NEW INITIATIVES IN RESPECT OF KHANDELWAL COMMITTEE REPORT - PRESS REPORTS FROM TIME TO TIME

We are surprised to notice that, in the recent past, calculative moves are made in the press in different parts of the country, to give vent to the various recommendations made by Mr.Khandelwal in his report. It has been opposed vociferously by the unions in the Banking Industry, both under the banner of United Forum of Bank Unions as well as the Confederation. We have demanded thorough discussions with IBA on some of the provocative recommendations, which aim at unsettling several bipartite understandings, that have been signed between the IBA and the Confederation, including the 9th Bipartite Settlement.

Our attention has been drawn to the recent press reports appearing in the prominent financial papers. Wherein a reference has been made to the initiative of the Government indicating that, a communication has been sent by them to the IBA seeking their views on the introduction of the concept of Variable Pay in the Banking Industry. The move of IBA to form a Small Committee consisting of three CMDs of member Banks, in order to formulate the views of the IBA. We are surprised about these developments. The IBA is conscious about our stand on the issue. The issue also figured in the last UFBU strike, wherein the entire workforce across the country expressed their dissenting voice against the report of the Khandelwal Committee in an unequivocal term demanding scrapping of the report.  These developments should have prompted the Government to bury the report, which is not in the interest of the Banking Industry.

It is in this background, we wish to reiterate our position that the Confederation is against any attempts on the part of IBA towards new initiative to give life to the questionable recommendations of Khandelwal Committee Report. Its objective to bring the concept of variable pay in the banks contrary to the existing time tested system of negotiations on a regular basis for revision of salary at periodical intervals. The new initiative will only result in total chaotic condition in the banking system leading to industrial unrest across the country in banking industry. We are also against change in the recruitment policy and unilateralism on bilateral issues at Bank level. We therefore request you to kindly examine the issue in the right perspective and send an appropriate communication to the Government to avoid unnecessary confrontation with the Unions / Associations in the banking industry.

Please treat the matter as urgent.

Thanking you,

Yours faithfully,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY