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Union Leaders Now Start Damage Control Exercise :  Trying to Create Wedge Between Young Bankers and Senior Bankers by Announcing That They Have Been Able to Extract Benefits Younger Generation At the Expense of Senior Bankers



Rajesh Goyal 

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Today I have received an interesting email from one Mr Pawan Goyal, who I believe is a bank union leader in Sriganganagar, Rajasthan.  Before putting any comments, let me give the details received by me :-

                            What is the New Special Allowance and why ?

A New Special Allowance has been included in the present wage revision @ 7.75 % of Basic . This allowance carries DA.   Actually, this allowance is the most important value addition in Tenth BPS.   Why ?

Remember, MoU says 2% loading on Basic Pay, after merging DA up to 4440 points of Consumer Price Index.       The reason is, IBA had refused to take the resultant additional load on the Pension Fund and other Superannuation benefits on increasing the loading, because 60.15% DA merger itself would result in huge additional cost towards superannuation benefits.

Ultimately, after keen thought, UFBU decided to accept this stipulation of 2% loading.

After the MOU, UFBU & AIBEA continued the discussions with IBA. We continued our endeavor to give the best benefits to our comrades. 

In this matter, we had two options. 

         One, to formulate a sizeable HRA and Transport Allowance.

         Two, to think dynamically and find out an intelligent solution.

The first option would give good benefit, but it would be static. It will not have any self- improving feature. All along the past 69 years, AIBEA has always kept its eyes on the future. We rarely settled for short-term benefits in the long term wage-agreement. This time also we repeated our own history.

We could negotiate & prevail upon IBA to agree for an additional allowance, attracting Dearness Allowance, which would yield us long term benefit.

Please recall that when we signed the 9 th  Bipartite in April 2010, the Consumer Price Index was 3895. Now it is 5790. Increase of 1895 points or 473 slabs. Suppose a minimum of 473 slabs increase for next 5 years, an amount of 1000 would become 1473. This is the advantage of DA linked allowance.

However,  transport allowance or HRA or medical aid would simply remain stagnant. Hence our strategy is to get maximum long term benefits.

In effect, from another angle, we have got 9.75% loading in the place of 2%  stipulated by MOU.

This is one of the chief highlights of the settlement. I request all youngsters to understand and appreciate the efforts and the foresight of our great Union.

Red salute to AIBEA



I hope Mr Pawan Goyal  had the blessings of the UFBU leaders to share  the inside story of the negotiations.   The above details, provide some insight of what was happening behind the curtain since February 2015.   It is easy to conclude the following points from above inside story or the reasons for introducing special pay.


(a)The agreement of 23rd February 2015, was signed by the UFBU leaders after clear cut thought that it will cheat the senior bankers who have recently retired or will be retiring till 2017, as IBA was reluctant  to give the benefit of this BPS to the senior bankers.   Mr Pawan Goyal has clarified that agreement for  2% increase in Basic Pay  was a well thought out strategy of IBA to which all UFBU leaders agreed after due deliberations and thus it was decided to deny the senior bankers the advantages of the 10th BPS.   The above shows that the agreement was not signed hurriedly but after well thought strategy to deny the senior bankers the benefits of 10th BPS.

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(b)Inspite of knowing it fully well that they have cheated the senior bankers, they kept on issuing circulars / statements  in the month of March and April and May 2015  to befool senior bankers / retired bankers that they are strongly taking up the matter with IBA for updation of the pensions etc.  (Only yesterday we have quoted from AIBOC circular issued by Harvinder Singh dated 18th April 2015, assuring that they have strongly taken up their case for updation of pension).    Whereas behind the curtain they knew it very well that they have already signed for increase of merely 2% with the sole aim of  deny the senior bankers the benefits on superannuation  for which they have served the respective banks  for whole life even at the expense of ignoring their family.


(c) Before agreeing that 2% increase  is sufficient, I would like to know what  data analysis was done by UFBU leaders?    Was  any detailed analysis of the financial status of every bank done  by these leaders to ensure that IBA is absolutely  justified in denying superannuation benefits to senior bankers?  Can they make such data public so that everybody knows the inside financial health of each bank OR they merely agreed to what was proposed by IBA.   What this strategy was kept so secretive during all these 90 days.


(d)                         Once they have agreed upon 2% increase in Basic Pay and found themselves being on the firing line, they tried to convince IBA that it can result in large scale dissatisfaction among all groups of the bankers, and deliberated with IBA to introduce special allowance.  Later on it was agreed to give DA on this allowance.   However, it was ensured that it will not give any benefit to the retired or retiring bankers upto 2017


(e)  Now to put wrap on their inefficiency they are trying to befool Aam Banker by claiming that this special allowance is good in the long run.  If they had so good intentions, then why it HRA and Transport Allowance is not payable on special allowance, as is the case with central government employees. 


(f)  What is the reasons that special pay is being given higher percentage to Scale IV, V, VI and VII officers?  Can AIBEA explain how it is more beneficial to the workman staff?


(g)  Had they watched the interest of the bankers, then UFBU would not have agreed to merge DA only upto 4440 points but there should have been full merger of DA as it happens with central government employees at the time of CPC.


(h)                        UFBU leaders have dumped the senior bankers, who have paid the subscription for the whole of their career, as they feel now this group is of no use to them.   This is how these UFBU leaders treat senior bankers inspite of the fact that majority of UFBU leaders are retired or going to retire soon.  It is something like that some youngsters dump their parents when they need their help to the maximum extent. 

In the days to come, we will see many such articles giving inside stories (some of them twisted and blaming other union group) to confuse the Aam Banker.   However, one thing has become clear that they have sold the interests of the younger bankers but have completely dumped the interests of the senior bankers.  The future of not only bankers but also banks seems to be in danger as when an organization starts defaulting its retired employees, it means their health has deteriorated and survival is difficult.  

It is indeed a big set back to senior bankers.   I am myself shocked as inspite of I being analyzing the regular circulars, could not even imagine that UFBU leaders can go for cheating the senior bankers to this extent.  

Pensioners be aware about your future pension payments be prepared for reduction in pensions or complete stoppage of the same after half a decade or so.



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