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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