CBOA-AP
issued its circular No. 005 dated 19.02.2014 reproducing the circular issued by
AICBOF/AIBOC on Hon’ble Finance Minister’s statement “ALL PROFITS CAN’T BE USED TO PAY HIGHER WAGES”. We are placing the
same here for our readers.
CIRCULAR
NO.: GS: 2014: 005 Date: 19.02.2014
TO ALL OFFICERS PLEASE
CIRCULATE
Dear
Friends,
We
reproduce hereunder the Circular No. CIRCULAR/GS/2014/05 dated 18.02.2014
received from our Federation for your information.
With
best regards
Yours
sincerely
Sd/-
(C.A. MALLIKARJUNA RAO)
GENERAL SECRETARY
..............................................................................................
“ALL
PROFITS CAN’T BE USED TO PAY HIGHER WAGES”: AGREED
BUT
ARE THESE MEANT TO PROFIT THE PRIVATES?
We
reproduce hereunder the contents of our CONFEDERATION Circular for the information
of all officers.
QUOTE
While
we share the anger and anguish of our membership over the statement of Hon’ble
Finance Minister, on the occasion of 78th foundation day of Indian Overseas
Bank on 10th February, 2014, we also thank him for once again (he is already on
record in Parliament that profitability of the banking industry is increasing)
accepting the fact that BANKS ARE
EARNING PROFITS. We also agree with him that Banks’ profits are not for
enhancing the wages, but, we also wish to remind the following:
1. The Prime objectives of the
Nationalization were to bring parity in the society which was branded as a
major bold and historical decision of the century by late Smt. Indira Gandhi,
the celebrity Prime Minister of the country.
2. Nation had acknowledged that it was
historical as it believed that prime focus after Nationalization would be
poverty alleviation by upbringing the rural poor through various welfare
schemes introduced and implemented through nationalized banks.
3. The workforce of the Nationalized
banks also responded fittingly by spreading its presence from 8000 to more than
80000 branches since Nationalization, in every nook and corner of the country,
dedicated and devoted their lives in executing government’s initiatives and
policies, unmindful of personal comforts, participated whole heartedly in the
nation building by way of uplifting the downtrodden above poverty line.
4. Through this unparallel dedication by
the employees of PSBs the presence of branches today has crossed 100000+ from
mere 8262 branches as on the date of Nationalization during 1969.
5. Against their own policy, the
government has attempted to encourage private sector to enter in to banking
business. The resultant is that many private banks which commenced their
business with fanfare became failure, a few transformed in to foreign banks and
one was taken over by nationalized bank at the cost of nationalized bank’s
business and profit. But still the nationalized banks were commanding 70%
market share and making huge profits.
6. Years back, world witnessed the
failure of banking institutions all over and west was worst hit which brought
the top banks to dust. Economic recession was the word substituted for the
mismanagement. But Indian banking sector was shining as usual and Indian banks
were making huge profits even in that adverse scenario. Is it not the testimony
for the managerial ability of workforce of Indian Banking system?
7. Keeping the eyes on the vote bank,
debt relief schemes were introduced which has marred the recovery mechanism in
the banking industry and it became a major contributor in NPA building in the
rural branches.
Still banking sector made profits.
8. Government forced the banks to
restructure the advances due to natural calamities; banks did so to revitalize
the rural economy.
Still banks generated profits.
9. When the Govt. wanted the inclusive
growth by introducing financial inclusion and ordered to ensure the presence
even in remote, The Banks responded instantly to bring unbanked corners under
banking services at huge expenses.
Still
banks earned profits.
10. When the govt. wanted to introduce
DBT, we have readily agreed and accepted to carry out the un-remunerative
business unminding the profit in the interest of countrymen.
Still banks have shown
profit in the business.
11. So many self employment training
institutes are run by the banks for skill development in Indian youth at huge
cost from out of the income earned.
Still
banks are making profits.
12. Recently Election education to the
public is also entrusted to the banks in 543 districts. Banks will be
undertaking this responsibility also with their resources and manpower.
Still banks are running their business with profits.
13. In order to help the private
corporate, CDR was forced on PSU Banks which is a drain on hard earned income
of Banks. The income is further drained out in the form of Income tax and
forced dividends from profits.
Still sufficient Profits are available.
The
causative factors for pulling down the profits (beyond the reach of employees)
are:
a. Policies of the government.
b. Impact of economic slowdown
which is also resultant of govt policies.
c. Write off of bad debts.
d. Concessions to be extended in permitting
CDR to corporate.
Notwithstanding
the fact that PSU BANKS are consistently earning huge and increasing profits,
we, the most responsible trade unions, are not linking our wage demand to the
profit and we are DEMANDING WAGES AS OUR
RIGHT. It was well defined and designed policy decided between bank
employees and IBA to revise the wages every five years to provide a decent
living for the bank employees who are playing a pivotal role in nation
building. More so, for the officers the wage increase shall be linked to risk
and responsibilities they shoulder. It is only the IBA which is linking the
profitability with wage revision. Though we are primarily differing from the
IBA’s views of linking the profitability with wage revision, the following
arguments naturally arise even if it is taken for a debate
1) If the profitability is the basis for
the wage increase how the govt. employees are given manifold increase from out
of the deficit budget?
2) Why the value of the current
shareholding is not reckoned by the govt. which nationalized the banks at par
value, which was built up to the current level by the hard work rendered by the
bank employees?
3) When the govt. talks about capital
infusion to increase their hold, why the dividend received over a period of
four decades is not taken into account?
4) If the govt. wants to take big chip in
the name of Income tax also besides the huge dividend, how people would believe
the crocodile tears of building up capital from the internal resources?
5) If the govt. really wishes to build
the capital out of internal resources how the Govt. will justify their action
of siphoning huge money from the banks in the name of interim dividend in
September 2013 itself without even allowing the banks to retain such money and
employ it to maximize the profit till March 2014?
6) The PSB Banks would witness huge
exodus due to superannuation within a period of five years from today to the
tune of about 80% which needs about 10
7) lac employees to be recruited over a
period of five years to replace the retirees and to face the future growth. -Is
it not the responsibility of the Government, the majority stake holder, to
initiate steps to recruit quality youth and introduce policies to retain youth
in the Industry, so as to ensure the existence of PSBs from the potential
threat of becoming extinct? -Should the threat of poaching the existing staff
of PSB banks by New generation Private Sector Banks and foreign banks, not be a
concern of Managements/IBA and Govt.
DO WE NOT DESERVE A
SMALL SHARE OF PROFITS TO MEET OUR LEGITIMATE DEMAND OF REASONABLE COMPENSATION
PSU
Banks in India posted a profit of whooping 121917 crores during the year
2012-13 and if 15% of the profits is provided, a reasonable wage hike can be
given to the bank staff for next five years. After setting apart this
negligible percentage from out of the profit earned to the hard working bank
employees, the balance can be diverted towards providing bad debts and other
purposes prescribed by the Hon’ble Finance Minister.
It
is indeed unfortunate and provocative that the finance minister suggests
providing towards bad debts at the cost of employees legitimate salary
revision, instead of initiating recovery measures by introducing stringent
recovery measures. When the responsible reply does not come forth, should we
not conclude that the Government policy is profiting the private by allowing
the banks to decay through demoralizing the staff?
UNQUOTE
GREETINGS TO YOU ALL
Yours
Sincerely,
Sd/-
(A.R. SAIFULLAH)
GENERAL SECRETARY
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