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BANK WAGE REVISION  IS POSSIBLE WITH  25% PAY HIKE PLUS PENSION TO ALL WITHOUT COST SHARING

K.BALASUBRAMANIAN RETIRED SENIOR MANAGER UNDER VRS 2001  PENSION OPTEE INDIAN BANK

                                                                                                (AMOUNT IN Rs. Crs.)

SOURCE : NSE WEBSITE FOR LISTED BANKS ;  INDIVIDUAL BANKS WEBSITE FOR  NON LISTED BANKS

REFERENCE YEAR   : PROFIT AND LOSS   ACCOUNT FOR THE YEAR ENDED 31 MARCH 2009:

From the above data it is evident that the nationalized banks earned a net profit of 21,776 crores. Their average employee cost forms a meager 13.76% to the total expenditure (only only 10.82% to the total income). The employee cost was much higher in 1990s when compared to total income. After the success of VRS 2001 scheme where by 10% of the then work force opted for the same there was considerable savings.  Thereafter even for normal retirement suitable postings were not done to 100%. Hence the cost of employee percentage  is at all time low.

 Staff members in all cadre are working beyond their capacity to complete the task.  Officers and branch managers  are virtually working more than 10 hours per day and attending office on majority of Sundays.

WAGE REVISION :  Wage revision of even 25% will take the employee cost from the average of 13.76% to 15.25% which the industry can very well absorb. It will be only 5000 crores based on 2009 figures.

PENSION OPTION PAST AND PRESENT;   A SUM OF 6000 crores as per actuarial calculation  will take another 3%  so that the employee cost will go only upto  18 %. From 22,000 crores  a sum of 12,000 crores can be easily allocated for 25% wage revision and one more pension option to the past retirees, and existing PF optees and also sanction of 100% DA neutralization to pre 01.11.2002 retirees who are the only left out group from full neutralization.

STAGE I  Hence  a 20% of basic pay increase after the agreed merger of DA earlier will straight away take the officers  starting basic to 15000 level against the Class I officers starting pay of 15600+grade pay of 5400 = 21000.  HRA of 15% on the basic plus cca can be considered this will workout to around 25% which the parties may agree.  IBA  must show its gesture to the sector they are representing. . They should not SEE THAT THEIR SECTOR IS lagging behind in service conditions to any other sector. That should be the spirit of IBA. They should behave like paycommission members with unbiased attitude and not otherwise.

SIMILAR OPERATIONS TO AWARD STAFF BY SUITABLY INCREASING THE BASIC PAY TO ENSURE A MINIMUM SALARY OF 10000 TO SUB-STAFF.

STAGE II      After studying the balance sheet for the years 2010,2011,2012  if the cost remains under control  parity in HRA  from 15% to 30% and in lieu of grade pay, post allowances to all field level designated officers and branch managers , cashiers special assistant etc  only say 15 to 30% to keep the cost under control.

If still the comfort level is available PENSION UPDATION AS AVAILABLE TO CENTRAL GOVT AND RBI EMPLOYEES  CAN BE CONSIDERED  to all people. Without arrears from a future date.

SPIN OF BENEFITS: THE MOMENT  IBA signs wage revision with one more pension option they can expect sizeable chunk especially women employees in the 50 plus category to opt for VRS without package. A person who is having a service of 28 years will be entitled for full pension. When the manpower falls dramatically , the time can be ripe to talk consolidation in the banking industry  for which a beginning can be made now itself by having a dialogue .ONLY FOUR OR FIVE BANKS CAN EXIST. THAT WILL IMPROVE THE QUALITY OF SERVICE, DRASTIC REDUCTION IN ESTABLISHMENT EXPENSES LIKE PREMISES ETC.

CONCLUSION ;

IF THE ABOVE PROPOSALS CAN BE PRACTICALLY IMPLEMENT ABLE THEN THE EMPLOYEES CAN GET REASONABLE BENEFIT IF NOT PARITY  WHICH CAN BE CONSIDERED IN 2012.

IF THERE IS A WILL THERE IS A WAY. PM/FM SHOULD GIVE SUITABLE INSTRUCTIONS TO THE MOF  PERSONNELS /IBA  PERSONNELS NOT TO STAND IN THE WAY OF BELATED WAGE REVISION AND CONSIDER THE PRACTICAL AND SUITABLE INCREASE WITH PENSION OPTION.

" I subscribe to the sense of frustration felt by of the bankers all over the country. Our government which is headed by the most honest Prime Minister in the country's history is OK with Madhu Kodas and A Rajas who have swindled the country with monumental sums of Rs.4,000 and 60,000 crores but would not deign to grace the slogging  / begging bankers with their minimum just due which is a peanut vis-a-vis a single unscrupulous politician has devoured and which is overdue for a couple of years.

FELLOW BANKERS !! LEAVE BANKING BECOME A MINISTER AND BECOME A BILLIONNAIR ENJOY CONNIVANCE OF THE HONEST GOVT HEADS".

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