AIBOC issued its circular No. 130 on man power planning and raising retirement age of officers. We are reproducing the same here for our readers.
CIRCULAR NO. 130 Date; 20.09.2010
To ALL AFFILIATES /MEMBERS
MAN POWER PLANNING - RAISING RETIREMENT AGE OF OFFICERS
In the Common Charter of Demands submitted to the IBA on 29th October 2007. by the four Officers’ Organisations in the Banking Industry viz AIBO, AIBOA, INBOC & NOBO, the following demands were raised.
i) To raise the retirement age of Officers in the Banking Industry from the present 60 to 65 years; and
ii) To change the date retirement of those born on the 1st of the month to the last day of the month of birth instead of last day of the previous month.
Due to paucity of time, on account of prolonged negotiations for new wage structure these demands could not be discussed and finalized before signing of the 9th Bipartite settlement. We have now addressed a letter to the Chairman IBA, the text of the same is reproduced here in under
We will keep you advised of the developments in the matter
With greetings,
Sd/-
(G.D. NADAF)
GENERAL SECRETARY
NO: 1452/ 320/10 20th Sept. 2010
The Chairman
Indian Bank’s Association
Stadium House
6th Floor, Block 3,
Veer Nariman Road
Mumbai- 400 020
Dear Sir,
MANPOWER PLANNING - RAISING RETIREMENT AGE OF OFFICERS
Please refer to the common Charter of Demands submitted to the IBA on the 29th October 2007 on behalf of four Officers’ Organisations in the Banking Industry viz. AIBOC, AIBOA, INBOC & NOBO, wherein the following demands have been raised:
I) To raise the retirement age of Officers in the Banking Industry from the present 60 years to 65 years; and
II) To change the date of retirement of those born on the 1st of the month to the last day of the month of birth instead of last day of the previous month.
Due to paucity of time on account of prolongation of negotiations for new wage structure 2nd option on Pension etc. a number of important issues like the demand for regulated working hours, 5 day week, revision in staff loan schemes, improvements in the area of vigilance and disciplinary proceedings and the abovementioned issue of raising the retirement age effective date of retirement could not be discussed and finalized before signing of the 9th bipartite settlement. While we request you to direct the IBA team to resume discussions on these issues, there is an urgent need to consider our demand regarding raising the retirement age of the officers in the banking industry from 60 years to 65 years or at least upto 62 years immediately. In support of this important and genuine demand, we would like you to consider the following submissions: -
i) In the worst ever global recession witnessed recently, public sector banks in our country provided a contrast with their excellent performance thereby silencing our detractors and faith of the general public in them has not only been redeemed but has been fortified;
ii) Armed with technology upgradations and new business processes in place coupled with renewed faith of people in them, the PSBs are poised to grow and multiply their business at a much faster pace in the coming years;
iii) The manpower planning in Banks has been absent for decades and recruitment of officers and employees has failed to keep pace with the growth of these banks;
iv) There have been large scale retirement of the existing staff in the last few years and this position is likely to worsen further as employees recruited upto 1972-74 are all going to retire by 2011-12;
v) The above factors have inevitably led to a huge shortage of manpower. As per a study conducted by Boston Consultancy Group, it is estimated that the PSBs shall need over 5 lakh employees over the next few years. The actual requirement will, in fact, be much higher;
vi) It will be well nigh impossible to undertake and provide recruitment of such a massive magnitude keeping in view the low compensation package, general reluctance of quality personnel to come over to the banks due to long working hours, higher risks involved coupled with a draconian disciplinary and vigilance system. Moreover, the attrition rate among the new recruits in the banks is alarming;
vii) Resultantly, there already is and will continue in greater measure an abject shortage of trained, skilled and experienced workforce particularly the Officers. To some extent, this shortage is being reduced by appointing officers on contract basis after retirement, which is fraught with risk;
viii) The life expectancy in India has gone up considerably and employees are able to maintain good health and efficiency upto the age of 70-75 years. A number of retirees seek employment elsewhere mainly with our competitors. Thus, the experience and expertise gained by them by working in public sector comes handy to the financial institutions in the private sector;
ix) A good chunk of new recruits after gaining experience in PSBs are quitting and joining the new generation private banks;
x) It was for these reasons that, the recently appointed Khandelwal Committee was strongly of the view to raise the retirement age in the PSBs to 62 years. They had reportedly made a presentation to this effect before the media and others but somehow in their final report they refrained to make this much needed recommendation.
In the changed scenario, The Government of India has been permitting to raise the retirement age in certain sectors like education, health judiciary etc. This is required in equal measure in banks on account of the above stated compelling factors.
Hence, we reiterate our demand to raise the retirement age of bank officers across the board right upto top executive level, in the interest of progress and growth of Public Sector Banks, which are the backbone of our economy and for better utilization of talent and experience acquired by officers after working over 2-3 decades or more in the banks.
We shall be glad to have your positive response on our genuine demand in the interest of the PSBs, as well.
Thanking You,
Yours faithfully,
Sd/-
(G.D. NADAF)
GENERAL SECRETARY
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