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This is the Time for Coup by Bankers against Unions and Their Leaders – If You Miss This Opportunity, You will Face Worse 11th  BPS



Rajesh Goyal 

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We have written several articles and exposed almost every move of the UBFU in last 30 months or so.  A Number of other bankers have also contributed towards the articles as to how UFBU had dismal low performance and almost sold the interest of the bankers.

In case you are satisfied with the performance of the UFBU in clinching  the deal for Xth BPS you need not read this article at all,  as this article is meant only for those who have not been happy with the performance of the leaders during Xth BPS and are carving for changes so that next time there is improvement in the performance.

Some of the major failures of the UFBU in so far as Xth BPS is concerned are :-

(a)            Merger of only 4440 points for DA and thus ensuring that bankers loose the full merger of DA upto the date when the Xth was due (as is done at the time every CPC).  This will have long term effect on salaries as new basic has been fixed at the lower level;


(b)            The next biggest mistake was the MoD wherein it was agreed that there will be only 15% of increase on Pay Slip component.   This was a new concept to befool bankers and IBA was successful in its move.   By exploiting the individual weaknesses of the UFBU leaders, IBA forced them to bring down their demand of increase in salary to mere 15% instead of 40% as demanded in the Charter of Demands.   I think this was the biggest climb down in any BPS.


(c)             Another foolish thing was to agree for mere 2% increase in Basic Pay.  This has never happened in any BPS that there is increase of only 2% in BP.   Reports indicate that the original plan of IBA and UFBU was to shift the rest of the increase to HRA or other components where no further DA was payable.   They were sure that gullible bankers will not be able to understand the consequences of this clause.  However, in view of our exposures of the impact of 2% increase in BP within 48 hours of the agreement, and later on  large scale anger among the bankers, UFBU pleaded for introduction of some component where DA is also payable.   Finally, IBA relented and agreed to introduce Special Allowance on which DA was payable, but flatly refused to pay HRA and other allowances on this newly introduced special allowance.


(d)            Thus, the above steps insured that Basic Pay was kept as low as possible as other allowances are linked to the Basic Pay.    Thus, the absolute amount  of HRA allowance which is now payable as percentage of Basic Pay only has reduced largely as HRA is not payable on Special allowance;


(e)             The next biggest treachery was to retiree bankers wherein it was agreed that special pay and DA on that will NOT account AT ALL towards superannuation benefits.  Thus, the bankers who had already given the prime 30 years of their life to bank were denied the benefits of the full settlement.   The most shocking was that the pension (after commutation) of all the retirees (retiring between November 2012 and October 2017 has been reduced vis a  vis earlier retirees).   It will have cascading effect for those who will retire after 2017.


(f)              The transport allowance was introduced but no DA is payable on the same, although in central government the DA is payable even on TA.


(g)             The retiree bankers were totally ignored in the 10th BPS, and UFBU proudly signed the Record Note saying that there is no contractual relationship between bank and the retired banker.    However, later on some leaders have agreed and pleaded with IBA to change the same as it is illegal and judicial prouncements have already settled the issue.  We have number of cases where even the retired bankers have been dragged to Courts  even after retirement.   I do not understand on what grounds such charges were framed if the contractual relationship between retiree banker and bank ceases on the date of retirement?

The net effect of all the above is that now the salary of the bankers can be accounted among the lowest from any sector.  However, UFBU leaders still consider this settlement to be historical and are proudly announcing as their great achievement.

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We have written number of articles  during last 30 months – almost after each talk and given analytical reporting and exposing how UFBU is slowly selling the interests of the bankers.

In comments of our articles, a huge number of bankers used to express anger and suggest that bankers should resign from the membership of the union immediately.    However, we never suggested this at any stage during when the talks were in progress, as we were aware that any large scale resignation or going to Court will only stall the process of the negotiations and it will further complicate the issues and delay the process.   We were also hopeful that some better senses will prevail upon leaders to bring some honourable settlement.  

However, now the settlement has been finalized and arrears are on the verge of being paid.   Thus, now is the time to show their power  by the Aam Banker as Indian people (even illiterate and living in rural areas do during election times).     This will be one of most difficult decision by the Aam Banker and needs lot of courage.   Today, we suggest all the bankers to go through the various talks and final result obtained by the Unions in 30 months of negotiation. If you are satisfied with the increase in salary, then you need not act and wait for next BPS to be signed by the same leaders.

However, if you are NOT  satisfied with the above Xth BPS, this is the time to act and doing the following :-


(a)           Give a letter to your Chief of the Salary disabusing department that NO LEVY should be deducted from the arrears or from future salary (It has come to our knowledge that some banks are disbursing arrears without deducting levy as there is large scale resentment among bankers.   However, unions have shown intentions to ask for levy from 2% to 4% from future salaries or getting direct authorization from members.   Thus, you should not get into any of the traps and refuse to pay levy on account of poor performance of UFBU in getting  an honourable settlement.


(b)            Give a letter resigning from the union and ask Chief of salary disbursing section to stop paying monthly subscription from July 2015;


To  take an individual decision and give a letter for above two purposes may be difficult for some bankers because of the fear of  retaliation from the unions.  Therefore, discuss with other members of the staff at the branch or administrative department, and try to give a consolidated letter or groups of 5 to 10 members to the Chief of the Salary disbursing department.   Ensure that it is signed by every member who is NOT  happy with the Settlement.

This will hit at the root of the prevailing unions as their overflowing cash chests will become empty and their power will get drastically.  The reduction in membership will affect them from representing them to the next wage talks.

Let this situation prevail in banking industry where bankers are not affiliated to any union for six months or so.  When union membership is reduced by 80% there be only 20% or so remain union members (who are hard core members getting a regular cut from the subscription and levy).

Thus, in a matter of six months a big reshuffle will take place, new unions may be formed with new leadership.  Other unions will see change in guards and old tired and retired union leaders will be forced to be ousted.    At this stage you start to assess new leadership of the new as well as old unions.  You may not join any unions which keep the old leaders as the helm of affairs and join those who have younger lot of leadership.

There is still time of over 2 1/2 years for placing the demands for XIth BPS and thus a large scale resignation and stoppage of subscription will have no immediate effect on the bargaining powers of the unions.   However, this step will bring new leaders and new associations.  Remember that as such I am not against unions in banking industry  but I am against the present system where Aam Banker has no say in the negotiations and they are kept in total dark about the developments and they reduce their demands without consulting their cadre.  Although, AAP has been on hit list of media, but initially they have adopted the concept of referendum from public on important issues.   Similarly, they could have asked for referendum whether to go on strike or reduce our demands from 40% to say 30%.    Unions should be transparent and work in the interest of the Aam Banker.   You will have time to decide which one of those you want to join.   If you wish that next settlement should be based on CPC recommendations, let new union leaders raise such demands etc.

However, you need to remember that even at the end of the last BPS (IXth), lot of bankers were interested and intended to quit from unions, but this move remained on paper as bankers failed to unit themselves against the united front of unions working as UFBU.  A reign of terror was let loose on those who wished to resign.  

Therefore,  if even this time, everybody continues to  fears from resigning than situation will  remain same. 

Thus, the need of the hour is to stand united against the UFBU, irrespective of the union as they as a group have cheated their cadre. None of them can put blame on others as everybody has signed the BPS.   Let us put an end to the present system of unions who are only fleecing Aam Banker.  Let new leaders rise and this can happen ONLY AND ONLY when bankers resign en mass at every level.   No Levy and No Subscription from July 2015 on wards should be the motto now.   

After resigning from the unions, wait for some time (say six months to 1 year) and then join a new union only after checking the credentials of the leaders.    Forget about the leftist leaders who have sold the interests of the bankers time and again.   They were afraid of going on long strike for raising the salary but you will soon find them giving calls for number of strikes on the issue of bank reforms, as they are more interested in their political agenda then for service conditions and wage revision of the bankers.

Now is the time to go for coup and throw out  the present set of unions and their old leaders, and let new unions and new leaders emerge who are still in service.  These retired leaders have neither served the interests of the serving bankers nor protected the interests of the retired bankers.

If you fail to unite now, it will be the same situation after five years.   Make groups of at least 5 employees each who will submit their resignations together and the letter that no levy should be deducted from their salary.

If you fail now, then do not blame anybody else for pathetic state of affairs of bankers.    You are the person who will responsible for this state of affairs. Choice is YOURS whether to maintain Status Quo or make a change.

I am not sure how many of you will resign, but if en mass resignation does not take place, it means whatever efforts were made by us and other people, all have gone in vain and in future their will be lesser people to guide you on the activities of the union leaders and be prepared for worse XIth settlement. Don’t blame that we have not given any suggestions for improving the present system of autocracy in the bank unions.

Good luck to bankers and enjoy whatever meager arrears are being paid now.




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