Com.Thomas Franco writes.....
(Former General Secretary of All India Bank Officers’ Confederation.)
After more than 3 years of negotiations, strikes and agitations, wage revision for bank employees has been signed on 11.11.2020. For the award staff it is called Bipartite Settlement as they are covered under the Industrial Disputes Act and for officers it is called a Joint Note based on their bargaining strength.
The highlights of the Wage Revision are...
*15% raise in wages as on 1.11.2017 out which only 2.5% goes towards basic pay which is counted for superannuation benefits.
*5 days leave encashment every year out of their earned leave up to the age 55 and 7 days leave encashment above 55 years.
*Contribution towards National Pension Scheme increased to 14% of basic pay in line with central government employees.
Performance linked incentive to employees of banks whose operating profit is more than 5% in a year.
*Within the 15%, introduction of allowances like transport allowance for award staff and learning allowance and location allowance in non CCA centres for officers.
*Some improvements in leave rules
*Promise of 30% of pay as family pension as applicable for government servants after the GoI approves.
One of the unions, Bank Employees Federation of India walked out during the signing of MoU, 3 months back. Other unions and associations are claiming it as historic settlement.
These are the following deviations from the earlier settlement.
*The Finance Minister openly went to the media that she has asked the chairman IBA and chairman SBI to take care of the bank employees and retired employees and family members. She also addressed the Annual General Meeting of IBA one day before.
But in reality, there was nothing given more than what was already agreed with IBA almost a month back. The pensioners issue is not finalised. Many other demands are left hanging. Normally IBA does not call the unions and associations till the time of next wage revision.
*One award staff union claims that there are 100 reasons to cheer but officers organisations have written to IBA mentioning 18 issues left out in the agreement and they are requesting another meeting to discuss which may not happen unless they agitate and lobby.
Important issues left out are:
*Five day banking which is close to the heart of every bank employee as international banks, RBI, central government, private sector, IT companies and several state governments work only 5 days in a week.
*Updation of pension for retirees where there are numerous anomalies and court cases in spite of Supreme Court ruling that pension is not a bounty, 50% of the last drawn pay should be the pension and no employer can say that they don’t have money to pay pension. In fact RTI replies prove that there is enough in pension funds to remove these anomalies.
One of the biggest drawback in the settlement is apportioning the increase in wages.
*For the first time in decades during the last settlement it was only 2% of the increase given to basic pay and this time it is 2.5% (normally 10-11% goes towards basic). This is done to reduce the superannuation benefits of gratuity, provident fund and pension.
*After the last wage revision in banks the Insurance employees and officers got their wage revision with 11.5% of the wage increase apportioned towards basic pay.
So their basic pay is much more than that of bankers. This time also the same is likely to happen. So there will be a huge difference.
*Another is that in spite of this wage revision, the starting Basic pay of Central Government peon or subordinate staff is more than that of the Clerical staff in banks. Similar is the basic pay of officers.
Unions divided:
*Biggest blow is that the government has managed to divide the unions and associations to among themselves. Officers and award staff had unity through United Forum of Bank Unions. During the last settlement government allowed one more union which is not part of UFBU but has allegiance to ShivSena to sign the settlement which is continued now also. It is because of UFBU, the banking sector unions and associations were seen as powerful.
*With the division the government will find it easy to privatise the public sector banks which is going to happen soon.
*After this government came to power there is no officer/employee director in public banks which is mandatory, in spite of a directive from Delhi High Court in 2017, the unions could not get the appointments done which makes them handicapped.
*Another issue which is likely to crop up is due to the change in Trade Union Act and Industrial Disputes Act which have been changed into Industrial Relations Code. Unions with membership below 10% may not be called for any negotiation.
Workers with salary of Rs.18000 PM and above are called employees / supervising staff.
*The draft rules do not talk about employees and supervising staff. There will be a Workers Committee and Grievance Redressal Committee.
*Another provision of the Code says, for strike, you have to give 60 days’ notice instead of 15 days. Then it will be referred to a tribunal. If tribunal fails again, 60 days needed for strike. So one of the main tools available is taken away.
*The Central Trade Unions have decided to fight against the four Labour Codes. One of the Nov 26 strike demands is change in Labour Codes.
But only 2 unions in the banking sector AIBEA & BEFI are joining the strike.
(So the future of wage revision and trade unionism in banking sector is in question.
*The Finance Minister wants to settle few demands, like updation of pension and family pension outside the bipartite mechanism to weaken the trade unions.
Five day week is not in the horizon.
*The disunity among unions and associations is going to cost them a lot.
The younger generation is unhappy and a section of them are working under the banner, “We Bankers”
Officers Association has many internal contradictions and one group under the banner of Nationalised Bank Officers Federation is revolting and filing cases.
*The unions and associations are getting alienated from the public, the customers due to shortage of staff, bank charges and poor service.
*Is it the end of the road? It depends on the leaders of the trade unions.
1 comment:
The author of above article has no knowledge of some issues including retiree’s issues and has some personal grievance against the Government.
On the one hand the author says including Shivsena Union in BPS has weakened bipartite settlement. Has This union placed any demands other than COD submitted by 9 unions and any of such demand accepted by IBA? By the same logic if one union which was part of BPS all these years which was suddenly prohibited from participating in BPS will not weaken BPS? Why IBA took this anti employees act and other unions supported it instead of boycotting further meetings?
In fact Govt issued three reminders since Jan 2016 to complete BPS before 01.11.2017, but both iBA and UFBU ignored it.
IBA since 2001 has illegally denied many benefits to pensioners provided in Pension regulations and poor pre 2002 pensioners who are getting pension less than salary drawn by sub staff to day has to spend lakhs of Rupees from their own funds and restored benefits through courts after 17 years long strggle. None of the major unions helped these pensioners by giving moral and financial support.
As regards updation it is long pending demand. All unions had to do is to obtain cost data of updation from iBA discuss the same in BPS and find out ways to achieve the same. In this digital era updation data can be obtained from Banks within a week and actuary report also can be obtained in a month. But since X BPS , during last 10 years both IBA and UFBU dodging without discussing updation issue by saying cost to be studied. It is utter shame and blot on BPS.
As Unions completely failed to take up updation issue and wasted 10 years by fiving false illogical excuses like cost to be studied, retirees submitted hundreds of representation to DFS and many MPs came all the way to Delhi from different states and submitted letters requesting FM to consider updation issue.
DFS had already sanctioned updation to RBI and Nabard pensioners so finally as unions failed FM stepped in. FM has not issued notification but has advised IBA and Unions not to drag issue any more and resolve it in BPS. How this will weaken BPS?
Now it is up to IBA and Unions to stop drama and reso;lve updation issue in next meeting
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