The next date for revision of pay is falling due on 1.11.2012. It has been the experience that each time the negotiations for the 5 year Bipartite Settlement gets inordinately delayed (delay of around 2 years every time).  The recent settlement  which was for the period from 1.11.2007 was settled in June 2010 i.e., a delay of 2 years and 7 months !!!! and after all that prolonged negotiations, what has been achieved is a measly 15%-16% increase.  (This is against the increase of 40% to 320% secured by PSUs’ (NOTE THAT WE ARE NOT REFERRING TO THE GOVT. EMPLOYEES) throughout the length and breadth of the country. WHY ONLY   ”PSU” BANKS ONLY WERE LEFT OUT?  Any explanation for this?  Even LIC of India employees who used to get salary revision at par with PSU Banks every time in the past, has been able to secure an increase of 24%!!!!!!). What is happening to our negotiating ability and skills?

HISTORY:

 In the past each settlement used to be for 4 years.  As usual, the negotiations used to get prolonged for years.  Against this background, the IBA and Unions came to an understanding that the Settlement Period may be extended to 5 years and negotiations  should be started at the end of 4 years and a fresh Settlement WOULD be put in place by the end of 5^th year.  But, has this  happened even once after that?  and if it has not happened, why? 

ACTION REQUIRED:

EXPECTATIONS AND CORRECTIVE ACTION REQUIRED:

During the last Settlement, we were informed that issue of Second Option for Pension was the main hurdle in securing a better salary revision and was the compelling factor that led the leadership on various issues.  Such compulsions are no longer there now.  Hence, we should be able to secure a substantially better revision this time.

Again, the gravest blunder committed during the last Settlement was in apportioning higher benefit out of the revision to Scale IV and above should not be repeated this time. There is need to ensure that the revision is UNIFORM ACROSS THE SCALES. 

PAYMENT OF CESS:

There is a general feeling and belief amongst the membership that the negotiations get dragged for years mainly with an eye on the Cess to be collected out of the salary arrears, which results in higher cess when the Settlement is inordinately delayed.

In this connection, the Membership is willing (general consensus) to contribute the cess to the Union in November 2012 itself, if the Union is able to implement the next Settlement on 1.11.2012 as calculated in the following example:  (the cess payable would be directly proportionate to the gross increase in the salary consequent to the revision)

  Existing Gross Salary     Revised Gross Salary(Projected)    Cess payable @ 1%

             Rs.50000                                   Rs.90000                                Rs.4000

             Rs.50000                                   Rs.80000                                Rs.3000

             Rs.50000                                   Rs.70000                                Rs.2000

             Rs.50000                                   Rs.60000                                Rs.1000      

 That is, more the increase in gross salary on account of Settlement, more will be the Cess.  Whilst on this, there is also a thinking amongst the Membership that if the Settlement is not implemented by 1.11.2012, NO CESS WOULD BE PAID, thereafter.

Again, this time, there should be no need for the membership to go on strike as the success of strike has no direct or positive impact on the salary revision, as observed by us in the past.

CONCLUSION:

                                                                                                                                                            Yours truly,