Floor-level wage mentioned in the rules is unscientific and inhuman, says BMS

The draft rules that would govern wages, including norms for minimum wages and fixing floor-level wages, were published by the Union Labour and Employment Ministry on Friday, leading some workers’ unions to raise concerns about the potentially low floor wages.

As part of its labour law reform agenda, the Narendra Modi government had in July introduced the Code on Wages, 2019 in Parliament, which passed it in August. The code, which subsumed four laws regarding payment of wages, equal pay, payment of bonus and minimum wages, got the President’s assent on August 8. The rules drafted under the code were published by the Ministry on Friday and opened up for public comments for one month.

For coming up with minimum wages, the criterion would be a standard working class family of one earning worker, a spouse and two children — equivalent to three adult consumption units that would have a net intake of 2,700 calories per unit per day. Under the criterion, the family would be entitled to 66 metres of cloth per year; housing rent expenditure of 10% of the food and clothing expense; fuel, electricity and other miscellaneous items of 20% of the minimum wage; and 25% of the minimum wage for expenditure on children’s education, medical, recreation and contingencies.

While the code will extend minimum wage protection to a large section of workers, including in the unorganised sector, it will not provide for a single minimum wage.

Saji Narayanan C.K., president of the RSS-affiliated Bharatiya Mazdoor Sangh, told The Hindu that the BMS would submit its “objections” to the Ministry.

“After 70 years also we are talking about floor-level wages, instead of moving on to minimum wage and then a living wage. The floor-level wage mentioned in the rules is un-scientific and inhumane. People may accept it out of desperation but it is ridiculous. We will be sending in our strong objections to this,” he said. Chandan Kumar, coordinator of the Working People’s Charter, said while the rules refer to the Supreme Court’s guidelines on need-based wages, they “change the discourse” to “roti-kapda”.

BANK Union calls for strike against 100% attendance rule in bank branches

The Tamil Nadu Bank Employees’ Federation (TNBEF) has threatened to go on a strike on August 20 against State Level Bankers Committee (SLBC) guidelines stipulating 100 per cent attendance at bank branches and restoration of normal banking hours.

TNBEF, an affiliate to All India Bank Employees’ Association (AIBEA), in a statement said the state government has extended the lockdown till August 31 and there is no public (bus/train) transport.

“There is no alternative method of transportation except to walk down to the Branch like how migrant workers were forced. Managements have not bothered to make any arrangement for taxi, vans or chartered vehicles, etc. so that employees can attend the Banks. Even in the buses run by the Government for the essential service workers, government employees, etc., bank employees are not being allowed even though banking is also an essential service,” the statement said.

The Union has also said bank branch premises are not that large, social distancing norms cannot be adhered to if all employees are present.

The Union has demanded only 50 per cent of branch staff should attend office till public transport is restored. The Union also wants exemption for pregnant women from attending office; continuation of roster system and work from home norms among others.

BANK UNION WANT UPDATION OF PENSION AS RBI

INTRODUCTION OF 5 DAYS WEEK IN BANK

BOI,CBI,IOB,UCO,BOM & PSB IN SELL OFF LIST

AINBOF WANT CANCELATION OF WAGE MOU AND GOING FOR NEW NEGOTIATION

WHAT IS PAYSLIP COMPONENTS AND WAGE COST

Staff Costs – A Brief Analysis

1. Total Staff Costs

‘Total Staff Costs’ include Salaries and Allowances, Incentives, Bonus, Overtime Wages, Superannuation Benefits (PF, Gratuity, Pension including Commuted Pension), Leased Accommodation, Monthly Conveyance, Furniture, Newspaper and all other Staff Welfare Measures (Entertainment/Medical/Holidaying & Travel etc.).  Thus, it is akin to ‘Cost to the Company’ (CTC) concept i.e. cost incurred in keeping a person on the bank’s payrolls.   For the year ended 31-03-2007, the total staff costs amounted to Rs.27,520.00 Crores.

2. Total Establishment Costs

‘Total Establishment Costs’ include Staff Costs as described above and in addition, rent, electricity, depreciation and repairs on premises, vehicles and furniture (including Computers, ATM, Printers, Fax, Networking Systems and other Office Equipments).  Thus, establishment costs are much higher than staff costs.  

3. Total Wage Costs

‘Total Wage costs’ include Monthly Pay & Allowances paid to staff in service, monthly pensions and other benefits which are fixed in nature and paid every month unlike other staff costs.   Cost of wage bill for FY 2011-12 was put at Rs.56,292 crores.  Total Wage Costs were Rs.27,520.00 Crores for the year ended 31-03-2007.

4. Pay Slip Components

This is the most important part of all. Because, basing on this only, all others are decided.  ‘Pay Slip components’ include monthly pay and allowances, as reflected in the pay slip (on the left side) of individual employees.  Of the pay slip components, the Basic Pay and any other pay or allowance that ranks for superannuation benefits (PF, Gratuity and Pension) are very important and crucial in any wage revision. 

IBA itself has openly admitted now (through its Press Release dated 02-12-2014) that 11% increase in pay slip components is equal to 12.5% increase in total balance sheet costs.  Believing this is correct, it translates to Rs.7,036.50 Crores (In 9^th BPS, the amount of hike was Rs.4,816.00 Crores).   

Rider:

What was Rs.4,816.00 Crores as on 30-09-2006 (the reference date on which D.A. was merged with Basic Pay in 9^th BPS) is equal to Rs.7,590.02 Crores, if converted to prices as on 30-09-2011 (the reference date on which D.A. is proposed to be merged with Basic Pay in 10^th BPS).

                                                                                         Pannvalan