:::::SRI S.B. RODE, OUR BELOVED PRESIDENT, AICBOF AND OFFICER DIRECTOR ON THE BOARD OF CENTRAL BANK OF INDIA HAS BEEN COOPTED AS GENERAL SECRETARY, AICBOF IN E.C. MTG. HELD AT MUMBAI ON 24.02.2014:::::MR. S.C. GUPTA, GEN. SECRETARY OF OUR AHMEDABAD UNIT HAS BEEN COOPTED AS PRESIDENT, AICBOF::::::WE CONGRATULATE THEM AND WISH THAT THE OFFICERS' MOVEMENT IN CENTRAL BANK OF INDIA WILL BE TAKEN TO NEW HEIGHTS:::::LONG LIVE CBOA:::::LONG LIVE AICBOF::::::LONG LIVE AIBOC:::::

CBOA-AP CIRCULAR NO. 018 DATED 30.06.2014

CBOA-AP issued its circular No. 018 dated 30.06.2014 reproducing AICBOF circular on THE MEMORANDUM SUBMITTED BY THE UFBU TO THE F.M. We are placing the same here for our readers.

CIRCULAR NO.: GS: 2014: 018                                        Date: 30.06.2014

TO ALL OFFICERS                                                             PLEASE CIRCULATE

Dear Friends,

We reproduce hereunder the Circular No. CIRCULAR/GS/2014/17 dated 30.06.2014 received from our Federation for your information.

With best regards                                                                   
           
Yours sincerely
Sd/-
(C.A. MALLIKARJUNA RAO)
GENERAL SECRETARY
...........................................................................................................

“We reproduce, hereunder, the copy of the memorandum submitted by the UFBU to the FM for your information.

“We submit, for your kind perusal and information, the present position with regard to the negotiations between the Indian Banks’ Association (IBA) and United Forum of Bank Unions (UFBU) on the revision of wages and service conditions of Bank employees/officers.

United Forum of Bank Unions (UFBU) is the umbrella forum of 5 workmen unions and 4 officers’ associations in the Banking Industry covering 1 million workmen and officers and is currently on wage negotiations with Indian Banks’ Association (IBA).  The wages and service conditions in the Banking Sector are governed by the Industry-level Bipartite Settlements signed between the IBA and the Negotiating Unions/Associations of Bank employees/ officers.  The term of the last settlement (9th bipartite agreement) came to an end on 31.10.2012 and the revision of wages and other service conditions has become due since 01.11.2012.

            UFBU has submitted its Charter of Demands to IBA on 30.10.2012 before expiry of the previous Bipartite Settlement and requested IBA to adopt a time-bound programme to hold the negotiations on the demands and to expedite the settlement as early as possible.  More than 10 rounds of discussions have taken place between IBA and UFBU so far on the issue but IBA is delaying the settlement. Despite a lapse of 20 months since starting of negotiations, no significant improvement is made towards expeditious conclusion of settlement.  Moreover, IBA is offering the least increase quoting non-affordability of banks in paying higher wages partly because of increase in Non-Performing Assets (NPAs).


PERFORMANCE OF PUBLIC SECTOR BANKS:

In Public Sector Banks, the profitability, Business per employee and Profit per employee are on the increasing trend only, which is also the basic yardstick for measuring the affordability of banks for increase in wages.  The data relating to public sector banks as on March 2012 vis-à-vis the position as on March 2007 is furnished below for your kind reference:

S.No.
Particulars
As on March 2007
As on March 2012
01
Number of Branches
49,573
67,930
02
Total Business
Rs.33 lac Crs.
Rs.85 lac Crs.
03
Operating Profit
Rs.42,655 Crs.
Rs.1,16,335 Crs.
04
Business per Employee
Rs.7.55 Crs.
Rs.15.01 Crs.
05
Profit per Employee
Rs.4.57 Crs.
Rs.8.42 Crs.

It is evident from the above statistical data that the performance of Public Sector Banks is impressive and continuously on the increase.  Whereas the bank employees are not compensated with adequate remuneration in relation to the types of jobs performed and the risks involved thereat.

Our demand for respectable revision of wages considering the due share in the prosperity of the banks on account of increasing profits is just and reasonable.  The erosion in profits is mainly due to apportioning of huge amount of profits towards provisions and write-offs of bad loans, which cannot be attributed as a reason for denying our just legitimate demand.  The brief details of such provisions and write-offs of bad loans in the last years are furnished hereunder:
(Rs. In Crores)
Year
Gross Oper Profits (Rs.)
Provns made
for Bad Loans (Rs.)
Bad Loans
Written-off (Rs.)
Net Profit
(Rs.)
2008-09
66,972
11,121
6,966
34,392
2009-10
76,861
18,036
11,185
39,257
2010-11
99,981
29,830
17,794
44,901
2011-12
1,16,335
38,177
15,551
49,514
2012-13
1,21,943
43,102
27,013
50,583

a.    OTHER FACTORS JUSTIFYING OUR DEMAND FOR INCREASED WAGES:
             The spiraling rate of inflation has made the life of bank employees miserable and also eroded the value of their earnings; The wages should go well with the present standard of living, which has undergone a remarkable change with increase in basic requirements; Due to the increase in attrition rate, more number of employees needs to be recruited and reasonable wages need to be offered to retain them inasmuch as, the other comparable sectors offer more to their employees.  This would not only encourage and motivate the employees but also would ensure perfect growth of the institution.

b.    WAGES IN OTHER COMPARABLE SECTORS:

01
Coal India Ltd.
25% increase in Gross Wages
02
Steel Authority of India Ltd.
16% increase in basic and D.A Plus 6% increase in Perks
03
Indication by the previous Govt to 7th Pay Commission
30 – 35% salary hike
04
Interim Relief
The interim relief provided by various State Govts and others ranges between 25% and 30%

It may not be out of place to mention here the observations of the Tribunal headed by Shri Sastry, popularly known as ‘Sastry Award’ that the Bank employees and officers deal with huge amount of public money, hence it is all the more necessary to compensate them with adequate salary and allowances so that they are contended and do not succumb to the temptations that often come in their way, oftener than in most other industries. Historically, bank employees and officers were paid higher salary than the Government employees and officers of comparable levels due to various factors like accountability, transferability, responsibility and role-sensitivity. However, subsequent Pay Commissions have given a go by to the concept of pay parity and the salary of bank employees and officers has come down substantially when compared to their peers in the country particularly after implementation of Sixth Pay Commission and consequent salary revisions in other public sector undertakings. Presently, the bank employees and officers are far below their peers in respect of Salary and Allowances.

The percentage increase in the last wage revision, i.e., 9th Bipartite Settlement, for bank employees/officers was capped at 17.5% on total cost, though the revision in other public sector undertakings was in the range of 23-25%, because of additional cost on account of one more option to pension.  The spiraling cost of living and the high rate of inflation in the last years made the life of common man miserable.   As against the reasonable demand of 25% increase in the pay slip components, the IBA has offered a very meager 11% increase in pay slip components.

Banks also have affordability for a respectable wage revision due to the increasing trend in the profitability of all banks and also considering the fact that the cost of wage bill would slide down due to reduction of staff strength on account of huge retirements.  The scheduled retirements of around 15% of employees during the 5-year settlement period would automatically reduce the wage bill expenses even if replaced by recruitment”

Further developments would be informed shortly.

Yours sincerely,
Sd/-
(S.B.RODE)                                 
GENERAL SECRETARY  

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