At a time when the government is contemplating cutting employee benefits
to 10 laggard public sector banks, bank officers have demanded that they should
be given revised basic pay at par with central government officers on the same
principles of 7th Pay Commission.
The negotiations have not started yet, as not all banks have given the
mandate to Indian Banks Association
(IBA) to negotiate on their behalf. Meanwhile, United Forum of Bank Unions, the
umbrella organisation of bank unions, is yet to appoint coordinator for
negotiations. But unions on a standalone basis have started to demand high
emoluments. At the end of December 2016, the gross bad debt of the banking
system crossed ~6 lakh crore and the total stressed assets is estimated to be
more than ~9.5 lakh crore.
The government on March 16 shot a letter to 10 banks stating that
capital infusion in these banks would depend
upon quarterly milestones and only after these banks sign a
memorandum of understanding with unions to sacrifice employee benefits should
there be a need.
The 7th Pay Commission had
recommended overall 23.55% hike in basic plus allowances. The government had
accepted 14.27% hike in basics, while the allowanced would have to be decided
later. According to reports, allowances could be decided in this month itself.
The current wage pact comes to an end in October. The last wage
negotiation, pending since 2012, was settled in May 2015 at 15% hike.
This time the government wanted to finish the process early and so it
prodding banks to start the
negotiation process, starting January of 2016, but banks dilly-dallied.
Finally, in December 2016, the government shot its fourth letter to banks to start the
process with the unions. Still, not all banks have given the
mandate to the IBA. The State Bank of India (SBI), for example, will give the
mandate to unions only after the merger process is over in April.
According to sources, 16 banks – all from the
public sector - have given a mandate to the IBA to negotiate on behalf of banks. Five banks, including the SBI, Dena Bank and Bank of Baroda are yet to
send mandate. The SBI will perhaps send in April after integration with
associate banks, sources said.
The IBA will form panel and can start the negotiation with unions only
after its gets all the mandate, an official at the IBA said.
The letter has gone to the IBA from by a joint committee of All India
Bank Officers’ Confederation, All India Bank Officers’ Association, Indian
National Bank Officers’ Congress and National Organisation of Bank Officers.
In their demand letter, these organisations have also demanded very
steep hikes in dearness allowances (DA) and wage increases, for example, merger
of special allowances with dearness allowance as on 31
October 2017, with existing basic pay. And have asked for a revised DA formula
“with provision for automatic merger and improvement in compensation against
price rise.”
Besides, an allowance “equal to
amount of last drawn increment should be granted every year after reaching a
maximum in the scale,” and “date of sanction of annual increments should be on
January 1 and July 1 every year,” are also in the demand letter.
There are also such demands as two months’ salary to compensate expenses
on transfer and payment of lump sum amount of transfer to meet the education
expenses of children.
Out of 34 demands, there are provisions for improvement in leave travel
concession and making the mode of entitlement as “air travel to all the
officers, and executive class for senior executives.”
Also, the unions are back in their demand of five-day banking and
Provident Fund calculation at the rate of 12% of the total salary and
allowances. Plus gratuity at the rate of one month salary and allowances,
without any ceiling. According to the income tax rules, provident fund is
calculated only on the basic salary. Gratuity is calculated on 15 days basics.
Besides, the unions want abolishment of new pension scheme and roll back to the
old pension system.
“Unions always demand the moon and scale down to a laughable level,”
said a senior officer who is part of a union. “Bank books have deteriorated
since 2012 (when the last wage pact got implemented) and banks can’t do
deficit budget like the government. What will happen is that government will
refer the wage structure to the Pay Commission and unions will have absolutely
no role in the process,” said the senior executive, who did not wish to be
named.
If the commission gets to decide on bank pay, the chances of any hike
will go for good, fear some union members.
Charter of demands
1. Revised basic pay at par with central
govt officers
2. Revised DA formula automatically
adjusting price rise
3. Allowance equal to
last drawn increment to be granted every year after reaching maximum in scale
4. Two months’ salary to cover incidental
expenses on transfer
5. Payment of lump sum amount on transfer
to meet education expense of children
6. Leave fare compensation with
entitlement of air travel for all officers and executive class for seniors
7. Provision for creche facility/flex timings/work from home for women employees
8. Five-day banking
9. Family should include father in law and
mother in law, brothers and sisters (divorced or deserted)
10. PF to be calculated on total salary and
allowances, not only on basic
Source:http://www.business-standard.com