AIBOC CIRCULAR NO. 109 DATED 23.12.2011

AIBOC issued its circular No. 109 dated 23.12.2011 on lateral recruitments in Federal Bank. We are placing the same here for our readers.

CIRCULAR NO.109                                                        DATE: 23.12.2011

TO ALL AFFILIATES /MEMBERS:

LATERAL RECRUITMENTS IN FEDERAL BANK IN VIOLATION OF AGREEMENT WITH FEDERAL BANK OFFICERS’ ASSOCIATION ON RECRUITMENTS

Our affiliate in Federal Bank has served a notice of strike action to be observed on 2nd January, 2012 as the Management has taken a stiff stand on the issue of lateral recruitments in JMG Scale-I, MMG Scale II and III in the vacancies virtually to be filled-up through internal promotion process. Our affiliate has tried to prevail upon the Management to honour the bilaterally agreed understandings on recruitments from outside and on scale-to-scale promotion. As the move of the Management is not in the best interest of the Bank as well as officers, our affiliate is forced to resort to agitational programmes culminating in a day’s strike on 2nd January, 2012.

We have addressed a letter to the Managing Director and CEO to respond to the issues raised by our affiliate, which are quite genuine, positively and avert the strike action by honouring the understandings on recruitments and internal promotions, and ensure cordial industrial relations atmosphere in the Bank.

We have annexed a copy of the letter, which is self-explicit.

Further, developments in this regard will be informed.

With greetings,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY

No.1410/382/11                                                    Date: 23.12.2011

To,

The Managing Director and CEO,

The Federal Bank Ltd.,

Head Office, Aluva

Kerala State.

Dear Comrade,

LATERAL RECRUITMENTS IN FEDERAL BANK IN VIOLATION OF AGREEMENT WITH FEDERAL BANK OFFICERS’ ASSOCIATION ON RECRUITMENT

We have been informed by our affiliate Federal Bank Officers’ Association that the Management  of the Bank has initiated steps to recruit from the market Officers in JMG Scale – I, MMG Scale II and III in the vacancies virtually to be filled through internal promotion process. This is in gross violation of the agreement with our affiliate on recruitment from outside and on scale to scale promotion.

It is reported that our affiliate has made several representations to resolve the issues amicably but the Management has chosen to ignore the same and has gone ahead with the move. The bilateral talks with the Management have also failed due to the stiff stand adopted by the Management. As the move of the Bank is against the interest of the Institution and also the Officers’ community in the Bank, our affiliate is left with no other alternative than resorting to strike action to seek redressal of the grievances. Our affiliate proposes to go on All India Strike on Monday the 2nd January, 2012. The case for the strike action has been clearly delineated in the letter dated 19.12.2011 addressed to you. We observe that the issues raised by our affiliate are quite genuine and the Management can definitely take a pragmatic view of the issues and settle the dispute in an amicable manner.

The proposal of the Association to settle the dispute, which is already conveyed to the Management, are the following:-

Ø  Number of vacancies available in various scales and in various geographical locations are to be identified and announced.

Ø  If more officers are required   than can be filled through  the present promotion norms agreed between FBOA and Management,  Association is prepared for a dialogue  with the Management to amend the existing promotion norms so that  more young officers with lesser years of service are made eligible for promotions. It may be recalled that the present fast track promotion process itself was introduced in our Bank as per the demand of FBOA.

Ø  Once the promotion process is completed as per the revised norms and as per the requirement of the Bank for various scales and as per local requirements at various states, an assessment can be realistically made about the actual shortage of officers and the locations. A solution can be found out for this through mutual discussion, protecting the career prospects of officers already serving the Bank.

Ø  All outsourcing is to be stopped immediately.

Ø  Bank shall start massive recruitment drive in sub-staff and clerical category and at entry level in officer scale immediately to solve acute staff shortage in Branches /Offices.

Ø  All existing benefits withdrawn/unilaterally modified  by the Bank such as special leave available to officers  posted at distant places, re-imbursement of out of pocket expenses on availing LFC  etc. are to be restored.

Ø  Grave and highly discriminatory anomalies in granting monetary incentives among various sections of officers in the Bank, and injustice done in the allotment of shares under ESOS are to be corrected immediately.

We concur with the views of our affiliate that the move of the Management will curtail the promotion opportunities of Officers working in the Bank and recruitment from the market in higher scales is highly demoralising, detrimental to the interests of the Bank and the officers’ community. It may not be out of place to mention here that the officers of Federal Bank are the best in the Banking Industry and they have contributed immensely for the concerted growth of the Bank. This has been possible due to the highly committed officers, who have always shared the corporate vision of the Bank. The Management had also taken a pro-active stand on IR issues, which kept the morale of the Officers high. The present move of the Bank, needless to say, will vitiate the mutually agreed settlement on promotions, which will result in disturbed Industrial Relations atmosphere in the Bank.

In view of the above, we would like to suggest to you to invite our affiliate for discussion and initiate steps for resolving the issues in an amicable manner. Any effort on part of the Management to unsettle the scientific system of promotions in Federal Bank, which is a product of bilateral agreement, will be only counter productive.

Need of the hour is to withdraw the unilateral move and settle all the issues raised by our affiliate in an atmosphere of win-win situation for both the sides and avert the proposed All India strike action on Monday, the 2nd January, 2012.

We solicit your early intervention in the matter in the larger interest of the Bank and of the officers’ community of one of the best managed Private Sector Banks i.e., Federal Bank Ltd.,

Thanking you,

Yours faithfully,

Sd/-

(G.D. NADAF)

GENERAL SECRETARY