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10th Bipartite Settlement –  Comments by Mr Pannvalan  on the points emerged so far





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The new scales will be constructed after merging Dearness Allowance corresponding to 4440 points as on November, 2011, which works out to 60.15% and adding a load factor of 2% on Basic Pay plus Dearness Allowance as on 31st March, 2012 amounting to Rs.597 Crores.

Distribution of annual wage increase between Workmen Unions and Officers’ Associations will be worked separately, based on break up of establishment expenses as on 31.3.12.


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Now, my question is, whether the new Basic Pay will be 163.353% of the existing Basic Pay (X*60.15*1.02, where 'X' is the existing Basic Pay).  As per this formula, the new Basic Pay corresponding to the existing Basic Pay of Rs.14,500 will be Rs.23,686.18 (it may be rounded off to Rs.23,700).

Or, will it be 1.6015 plus (1.6420*2/100), which works out to 163.434% of the existing Basic Pay?  As per this formula, the new Basic Pay corresponding to the present Basic Pay of Rs.14,500 will become Rs.23,697.93 (it may be rounded off to Rs.23,700).

Either way, the difference is negligible and I do not understand the logic behind this a ridiculous load of 2% on Basic Pay, after merging only 60.15% of Dearness Allowance, as against 76.50% prevailing as on 01-11-2012.

Dearness Allowance

In the absence of any details regarding new D.A. formula, we cannot arrive at the revised D.A. % as on 31-03-2012. 


Distribution of Load

It is learnt that the proposed hike of 15% (otherwise known as additional load) will be distributed among various components of monthly pay such as Basic Pay, Special Pay, FPP, PQP, Dearness Allowance, HRA, CCA, Hill Allowance, Project Area Allowance, Transport Allowance (for award staff) and Medical Aid (fixed amount payable each year).  I do not understand the rationale behind adding Medical Aid under ‘Pay Slip Components’. The explanation given by one of the Union leaders was Medical Aid is the only monetary benefit that is common and fixed for all.


Holiday for 2nd and 4th Saturdays of each month

It is a good progress.  But, in case of months having 5 Saturdays, there will be full working days on 3 Saturdays (first, third and fifth).

By agreeing to work for full time on these Saturdays, practically, only one additional holiday has been secured in a month, if the number of hours worked in a week is considered.  However, for people required to travel frequently, these two additional holidays in a month is a boon.


Other points

I’m really disappointed that there is no mention about pension revision in the minutes. 

Similarly, the revision/improvements if any in Halting Allowance, LFC, Compensation on Transfer etc. are yet to be made known.

Only after the nitty-gritty of the full settlement is out, I can offer my detailed comments on each and every feature of the settlement.

On one thing I’m sure.   This is perhaps the worst settlement the bank staff have ever sealed in the past 70 years.

UFBU leaders have dug a deep grave for the bank staff – both present and future.  And they cannot be forgiven for their act of betrayal.

I do not buy the argument that the present profitability position of the banks does not permit a better wage revision. 

Reason No.1:

For large NPAs, the poor bank staff are not the cause.  So, they shall not be made to bear the cross for the sins of somebody else.

Reason No.2:

Salaries shall be computed with reference to Profit before provisions for bad debts. The management’s capacity to pay is secondary.  Only market related wages must be paid for the services rendered by the employees and officers.  Only that is fair and justified under any circumstances.




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