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IS COLLECTION OF SUBSCRIPTION BY UNIONS BIGGEST SCAM IN BANKING INDUSTRY?

There is a strong under current at present against the union leaders. In view of the delay in settlement and likely agreement whereby members are not likely to get over 10% increase in take home salary (which is even less than the last two rounds of DA increase), members are questioning about the contribution made by them in the shape of monthly subscription. They are all wondering about the extent of the LEVY that will be extracted by the union leaders.

We are thus opening this issue for discussion and will try to find out the truth. Thus, everybody working in banking industry and union leaders (who have the best chance to defend themselves) having any knowledge about the total membership, the amount of collection per member and major expenses of unions, should try to send the details to us at allbankingsolutions@gmail.com We will consolidate and publish the true picture.

We give below the ESTIMATES of the collection by Unions and how they may be spending the same:

Collection by Unions :

(A) Contribution by Officers :

One estimates says that there are FOUR LACS OFFICERS and on an average they are paying subscriptions @ Rs.100. Thus, total monthly contribution by members / collection by unions is to the tune Rs. 4,00,00,000 (i.e. Rs. FOUR Crores). (This is based on simple calculation 4,00,000 x Rs.100).

Thus yearly contribution of Rs.48,00,00,000/- (i.e. Rs. Forty Eight crores)

(B) Contribution by Workman Staff :

Estimates indicate that there are about SIX LAC workmen staff and they are paying subscriptions @ Rs.40 (Average). Thus total monthly ccontribution by members / collection by unions is to the tune of Rs.2,40,00,000 (Rs.Two crores Forty Lacs). (Again it is a simple calculation 6,00,000 x Rs.40). Thus yearly contribution is Rs.28,40,00,000/- (Rs. Twenty Eight crore Forty Lacs).

Thus, union leaders are enjoying contribution of Rs.76,40,00,000/- (Rs. Seventy Six Crores and Forty Lacs) per year.

How much members are spending on each meeting / each union leader i.e. How the collected Funds May Be Being spent:-

It is a known fact that there are only small amount of above contribution spent on Newsletters / Booklets etc. (Say Rs. 6,40,00,000 (Rs. Six crore Forty lacs) per year (i.e. Rs.64 per member). This amount of Rs 64 on newsleters for each member will be considered as on higher side by most of the members as these are received rarely and are mostly photostat / computer print outs, the copies of which are made only on bank's photostat machines / computers etc. by union leaders. Even if you receive five page circular every month, and cost per page is Re1, the total cost is Rs.60/- p.a.).

Thus, still Rs.70 crores per year is left with Union leaders. Let us assume further that each bank (say 50 banks) level union holds 4 meetings every year and spends Rs. 5 lacs (50 union leaders x Rs. 10,000/- ) on each meeting for stay entertainment etc. The total expenses will be Rs.10 crores per annum. Thus, balance left will be Rs.60 crores.

Let us further assume that each bank level union gives Rs.10 lacs p.a. to state level leaders to meet their local day to day travel for local union meetings etc. The total expenses under this head will be Rs. 5 crores (Rs.10 lacs x 50 banks). Thus balance left will be Rs.55 crores.

Let us further say that Rs 5 crores p.a. is spent at industry level for meeting contingencies and other expenses. The amount left is Rs.50 crores.

Finally, there are only 50 TOP union leaders (at the helm of affairs at each bank). Thus, they are left with Rs.50 crores i.e. Rs. 1 crore p.a. to be spent by each big leader, and in the manner and way they wish.

MOREOVER, THE ABOVE DOES NOT INCLUDE THE LEVY PAID BY MEMBERS EVERY FIVE YEARS (The levy amount can be staggering amount as it amounts to Rs.200 crores if members as mentioned above contribute @ Rs.2000/- each). Does anybody remembers, how much levy was paid last time and how much unions are expected to ask this time from each member? Members can do their own calculations. If Rs.200 crores are collected and put in a fixed deposit at the lowest rate of 6% p.a.,it earns Rs.12 crore as interest per year and the principal remains intact. What will be done by union leaders with this kind of money?

The collections done by unions from clients of the banks at the time of souvenirs or holding national conclaves etc. is not included in the above calculations. This can also be to the extent of few crores.

Is it the biggest scam of the banking industry?? Is this the reason that no union leader is neither ready to discuss nor disclose the amount spent under each head by the unions. We call upon all the members and union leaders to throw more light on this burning issue and the actual collections and the head-wise expenditure.

Are union leaders working for the members welfare or are they earning huge amounts at the expense of the members?