1. What is IBA?
An association of Indian Banks and FIs representing 22 Banks in India in 1946, currently 237 banking companies.
2. What is Bipartite Settlement
It is the formal process of negotiation between Management represented by IBA and Trade unions currently represented by UFBU for deciding on the pay and working conditions of bank employees and officers.
It is the formal process of negotiation between Management represented by IBA and Trade unions currently represented by UFBU for deciding on the pay and working conditions of bank employees and officers.
3. What are the officers organisations and employees organisations involved in wage settlement?
AIBOC, AIBOA,NOBO,INBOC for officers
AIBEA,NCBE,BEFI, NOBW, INBEF for workmen
AIBOC, AIBOA,NOBO,INBOC for officers
AIBEA,NCBE,BEFI, NOBW, INBEF for workmen
4. What is Charter of Demands and who submits to whom?
Charter of demand is a collection of demands submitted separately by four officers organisations and five employees organisations respectively to IBA for improvement of their service conditions and wages.
Charter of demand is a collection of demands submitted separately by four officers organisations and five employees organisations respectively to IBA for improvement of their service conditions and wages.
5. What are the monetary heads discussed and finalised in the Bipartite settlement?
Basic, DA, Special Allowance, HRA, CCA, FPA, PQA called as payslip components and stagnation increment, Travelling Allowance, Halting Allowance, LFC, Leave encashment.
Basic, DA, Special Allowance, HRA, CCA, FPA, PQA called as payslip components and stagnation increment, Travelling Allowance, Halting Allowance, LFC, Leave encashment.
6. What are the non monetary heads discussed in the Bipartite settlement?
Working hours, holidays, working conditions, leave, etc.,
Working hours, holidays, working conditions, leave, etc.,
7. Whether it is mandatory to finalise the non monetary components along with the monetary components during the wage settlement?
Need not be. Monetary benefits are decided once in five years and the non monetary components can be discussed and settled at any time as the both the parties are permanently co existing. But, in practice both are being settled together.
Need not be. Monetary benefits are decided once in five years and the non monetary components can be discussed and settled at any time as the both the parties are permanently co existing. But, in practice both are being settled together.
8. What are the differences between wage and allowance?
Wage is the monetary compensation paid by an employer to an employee for the work done.
Allowance is the additional compensation which is generally tax free , for the discomforts experienced by the employee.
Wage is the basic minimum compensation. Allowance differs according to work situation and the work environment (Ex . Hill and Fuel allowance)
Wage is the monetary compensation paid by an employer to an employee for the work done.
Allowance is the additional compensation which is generally tax free , for the discomforts experienced by the employee.
Wage is the basic minimum compensation. Allowance differs according to work situation and the work environment (Ex . Hill and Fuel allowance)
9. What is the meaning of pay slip component?
The various components appeared in the pay slip like Basic, DA, Special Allowance, HRA, CCA, FPA, PQA, stagnation increment and conveyance in case of employees.
The various components appeared in the pay slip like Basic, DA, Special Allowance, HRA, CCA, FPA, PQA, stagnation increment and conveyance in case of employees.
10. Whether the special allowance is eligible for pension?
No
No
11. Whether the allowances are uniformly available irrespective of the Banks?
No. Basic pay and DA are uniform. All other components in the payslip vary to places to places and persons to persons.Rest are not uniform. Allowances are decided by the respective banks.
No. Basic pay and DA are uniform. All other components in the payslip vary to places to places and persons to persons.Rest are not uniform. Allowances are decided by the respective banks.
12. How the wage increase is offered and settled by the IBA?
A certain percentage of total payslip components of the participating banks up to the mandated scales is offered by the IBA to be distributed among the various components of payslip.
A certain percentage of total payslip components of the participating banks up to the mandated scales is offered by the IBA to be distributed among the various components of payslip.
13. How such quantum is decided as on date?
It depends on the negotiating strength of the trade unions and paying capacity of the banks.
It depends on the negotiating strength of the trade unions and paying capacity of the banks.
14. What would be the approximate quantum available for every one percentage of offer as on 01 11 2017?
About 500 cr. Which may likely to go down if the mandate is available up to scale 3.
About 500 cr. Which may likely to go down if the mandate is available up to scale 3.
15. What would be the quantum available for officers to be distributed towards various pay slip components?
Approximately 50% of the above as another 50% will go to the employees?
Approximately 50% of the above as another 50% will go to the employees?
16. Whether the available amount for the 3.50 lac officers of the Industry would be ₹3750 crores even if the offered amount is 15% of the pay slip components?
Yes.
Yes.
17. Whether the value of the originally offered 2% was ₹500 crores for 3.50 lac officers?
Yes.
Yes.
18. What is the amount provided towards bad debts in a year by the Banks?
No idea. But as claimed by PNB, they alone have provided entire liability of Nirav Modi which is approximately about 14000 crores.
No idea. But as claimed by PNB, they alone have provided entire liability of Nirav Modi which is approximately about 14000 crores.
19. What is the meaning of minimum wages formula?
Paying wages to the employee for him to lead a decent life matching to the status of the employee in the institution without linking to the Institution’s profit and paying capacity.
Paying wages to the employee for him to lead a decent life matching to the status of the employee in the institution without linking to the Institution’s profit and paying capacity.
20. What is the basis for the MINIMUM WAGES FORMULA?
International labour organisation had passed a resolution on MINIMUM WAGES FORMULA in 1970 and about 93% of the member countries have implemented already.
In India, it is implemented through seventh central pay commission which has increased the salary sizeable despite the deficit budget.
International labour organisation had passed a resolution on MINIMUM WAGES FORMULA in 1970 and about 93% of the member countries have implemented already.
In India, it is implemented through seventh central pay commission which has increased the salary sizeable despite the deficit budget.
Besides, Government of India is willing to adopt such MINIMUM WAGES FORMULA to the officers working in the Banking and insurance sector which was evident from the CODE OF WAGES BILL 2017 on which the Govt. through a parliamentary committee gathers views of the stake holder and the views of the Banking sector was already gathered.
21. What is the basic difference between MINIMUM WAGES FORMULA and current model of wage negotiation?
The current model is enabling the industry to fix salary based on the PAYING CAPACITY of the Institution whereas the MINIMUM WAGES FORMULA suggests to fix the salary matching to the qualification, job responsibility and status of the Individual officer.
The current model is enabling the industry to fix salary based on the PAYING CAPACITY of the Institution whereas the MINIMUM WAGES FORMULA suggests to fix the salary matching to the qualification, job responsibility and status of the Individual officer.
22. Why then the MINIMUM WAGES FORMULA was not demanded by the trade unions?
No, though the employees organisations did not demand, all the four officers’ organisations incorporated this demand in the Charter of demand submitted.
No, though the employees organisations did not demand, all the four officers’ organisations incorporated this demand in the Charter of demand submitted.
23. What is the development on this demand as on date?
The minutes of the wage talks with IBA released by the UFBU indicates that the discussions are on the usual percentage formula only and it appears that the MINIMUM WAGES FORMULA was not discussed.
The minutes of the wage talks with IBA released by the UFBU indicates that the discussions are on the usual percentage formula only and it appears that the MINIMUM WAGES FORMULA was not discussed.
Meanwhile the majority employee union rejected this formula and the related officers organisation also rejected this formula though that organisation signed the Charter of demand?
24. What would be the benefit if the MINIMUM WAGES FORMULA is adopted?
The initial basic of scale officers is ₹ 23700 as on date which is so as the salary is fixed based on the paying capacity of the Bank. But if the MINIMUM WAGES FORMULA is introduced the scale 1 officer’s initial wages could be ₹ 56100 as it is the salary of group A officers of the GOI.
The initial basic of scale officers is ₹ 23700 as on date which is so as the salary is fixed based on the paying capacity of the Bank. But if the MINIMUM WAGES FORMULA is introduced the scale 1 officer’s initial wages could be ₹ 56100 as it is the salary of group A officers of the GOI.
25. How the demand of scale 1 officers salary matching to Grade A officers salary is justified?
Before Nationalisation, the officers were getting different pay scales and while Group A officers were getting ₹700 some banks were giving more than ₹700 to the scale 1 officers. So, to rationalise the Bank officers salary Pillai committee was formed in 1979 and as per the committee recommendation ₹ 700 was uniformly fixed to all the officers which was equivalent to grade A officers salary then.
Before Nationalisation, the officers were getting different pay scales and while Group A officers were getting ₹700 some banks were giving more than ₹700 to the scale 1 officers. So, to rationalise the Bank officers salary Pillai committee was formed in 1979 and as per the committee recommendation ₹ 700 was uniformly fixed to all the officers which was equivalent to grade A officers salary then.
Recently GOI issued a Government order equating the scale 1 officers with GOI officers in case of deciding the creamy layer and thus to improve the officers salary to grade A officers salary became necessary, otherwise the officers would lose the benefits otherwise they are eligible to get when their salary also is not matching to the Grade A officers.
Today the Industry has employed the Indian youths to the tune of about 70% of the work force of the Banking industry who are educationally highly qualified and thus matching salary to their qualifications became necessary to recruit and retain the talents in the Banking Industry.
26. Whether minimum wages formula will affect the bipartite discussions and settlement?
No, the demand is to adopt the MINIMUM WAGES FORMULA while arriving the wages during the Bi partite discussions, but, not to discontinue the Bi partite discussions.
No, the demand is to adopt the MINIMUM WAGES FORMULA while arriving the wages during the Bi partite discussions, but, not to discontinue the Bi partite discussions.
27. Whether the demand of MINIMUM WAGES FORMULA will result in the wage revision to happen once in ten years as it is happening in central pay commission?
No. The Central pay commission also has recommended the automatic revision of salary ONCE IN FIVE YEARS.
No. The Central pay commission also has recommended the automatic revision of salary ONCE IN FIVE YEARS.
28. Why then the IBA is not offering the wages as per MINIMUM WAGES FORMULA?
The IBA argument is that they don’t have the paying capacity which is an unjustified argument as per the ILO resolution and the GOI initiatives.
The IBA argument is that they don’t have the paying capacity which is an unjustified argument as per the ILO resolution and the GOI initiatives.
29. Why then the Employees organisation is against the formula?
No Justification. They toe the line of the IBA argument.
No Justification. They toe the line of the IBA argument.
30. Whether the minimum wages formula will in any way affect the wage revision implemented once in five years?
No. Wage revision can be continued through Bi partite, once in five years. The Central pay commission also has recommended the automatic revision of salary ONCE IN FIVE YEARS for the Government employees.
No. Wage revision can be continued through Bi partite, once in five years. The Central pay commission also has recommended the automatic revision of salary ONCE IN FIVE YEARS for the Government employees.
31. What is the plea of recent writ admitted by the Madurai High court on wage revision?
To give instructions to IBA/DFS towards settlement of salary based on minimum wages formula recommended by ILO and implemented by the VII pay commission.
To give instructions to IBA/DFS towards settlement of salary based on minimum wages formula recommended by ILO and implemented by the VII pay commission.
32. What are the grounds on which the writ was pleaded?
Refer replies to question no. 25.
Refer replies to question no. 25.
33. Whether the writ questions the settlement through Bipartite negotiations?
No, rather the writ prays for the settlement using the MINIMUM WAGES FORMULA through Bipartite negotiations.
No, rather the writ prays for the settlement using the MINIMUM WAGES FORMULA through Bipartite negotiations.
34. What are the benefits if the admitted writ is decided in the petitioner’s favour?
We will get a better pay based on minimum wage formula which ensures the salary requirements calculated scientifically without linking to the profit and paying capacity.
We will get a better pay based on minimum wage formula which ensures the salary requirements calculated scientifically without linking to the profit and paying capacity.
35. Who are the respondents?
IBA, DFS, AIBOC, Canara Bank CO Madurai, Canara Bank H O and CBOA.
IBA, DFS, AIBOC, Canara Bank CO Madurai, Canara Bank H O and CBOA.
36. Whether any respondent submitted counter affidavit?
Yes, submitted, but, in support of the petitioner.
Yes, submitted, but, in support of the petitioner.
37. What is the meaning of stagnation ?
After reaching a certain level of basic in the particular pay scale, there will be no annual increments unless one is promoted to next scale.
After reaching a certain level of basic in the particular pay scale, there will be no annual increments unless one is promoted to next scale.
38. Whether stagnation is linked to promotions?
Yes. A scale 1 officer will get the increments till he reaches the scale II maximum Basic pay and a scale II will get up to scale III maximum Basic pay.
Yes. A scale 1 officer will get the increments till he reaches the scale II maximum Basic pay and a scale II will get up to scale III maximum Basic pay.
39. What are the factors that decide the promotion?
Promotions are not automatic in the Banking industry and the promotion policy varies from bank to bank. Vacancies are decided based on the business growth and retirement of the work force. Individuals are getting based on their performance, knowledge and service.
Promotions are not automatic in the Banking industry and the promotion policy varies from bank to bank. Vacancies are decided based on the business growth and retirement of the work force. Individuals are getting based on their performance, knowledge and service.
40. Whether promotion policy is uniform in the banks that have given mandates for wage settlement?
No. Varies bank to bank.
No. Varies bank to bank.
41. Is it logical to link promotion with basic pay and increments?
Certainly not, as long as the promotion is not an automatic. A direct officer may reach the stagnation in about 10 years if he is not promoted to next scale.
Certainly not, as long as the promotion is not an automatic. A direct officer may reach the stagnation in about 10 years if he is not promoted to next scale.
42. What is mandate?
It is the authority given by member banks to IBA to negotiate wage and working conditions with the trade unions.
It is the authority given by member banks to IBA to negotiate wage and working conditions with the trade unions.
43. What is the meaning of fractured mandate?
Majority member banks have given the mandate to negotiate upto Scale III only against the earlier practice of up scale VII.
Majority member banks have given the mandate to negotiate upto Scale III only against the earlier practice of up scale VII.
44. Whether non submission of mandate and submission of fractured mandate will affect the quantum available to distribute?
Yes, The available quantum for allocation would be the Payslip components paid up to scale III of the member banks gave the mandate.
Yes, The available quantum for allocation would be the Payslip components paid up to scale III of the member banks gave the mandate.
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