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Bank Officers (Beggars Association)  -   How to live well after 9th wage settlement of 7% (effective for Bank Employees)

We have received the following email from one of readers [banker????@gmail.com (we are not disclosing the full email address)].  We normally  would not have published such mail as some Senior Bankers may not like to be called by such terms (like Beggars Association).  However, we feel there is deep anguish among the Bankers and that is the only reason that a reader who himself is a Banker has used such words for himself and his colleagues.  We regret if some of the fellow  bankers feel hurt by these remarks.  We hope this will allow Bankers to give vent to their grievances on a new forum which has taken the cause of intelligent, hard working but least paid Bankers.

The email read as follows:

" There are thousand of Bank Staff which supports the union’s decision of 10-12% settlement demand on a/c of there few years in Job, fear of transfer and running businesses. But there is a big number which is suffering because of increasing expenses which are not being met by current wage revision. As all of us do not have the courage to challenge the ongoing system let us devise some ways to beat the rising cost.

1. If you own a house, give it on rent and shift to near by slum. This way you will be able to increase your income. Some day your child may become slumdog Banker
2. Apply for a BPL ration card. As per new manifesto you will get Wheat and Rice for Rs.2 or Rs.3 per KG whosoever make the government.
3. Use Municipal Primary schools for the education of your children, if you cannot afford private and live in an affordable housing i.e.Jhuggi.
4. Use Primary healthcare center for medical treatment.
5. Use Public conveyance on maximum occasions.
6. Take tuitions at home.
7. Look for alternate jobs if you are still eligible for other central/state Govt . jobs.
8. Purchase cloths form Jama Masjid market at cheap rate.
9. Buy vegetables when the whole community finishes purchasing. You will get vegetables at lower price.
10. Mr.Venkatachalam will ensure that you follow all the above religiously .Some day Government will come out with some rehabilitation plan for Bankers (Beggars) i.e. waiver of Staff Overdraft, Staff Housing Loan, Vehicle Loan etc

Bank Officers (Beggars Association) "

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Nagesh Bharat says :  "You have rightly named the Bank Officers Association as " Beggars Association"

I thank you for ventilating the mass opinion of Bank Officers who are working as UNCLE TOM as mentioned in the world famous novel of USA- "UNCLE TOM'S CABIN " Now-a-days the Union Leaders are becoming more TYRAN than the Management people because the leaders know that if they will not act as per the direction of management , they will be thrown out from their leadership position since they don't have any mass base. These leaders are misusing the overwhelming support given by their members to obtain benefits from the management for them and their family members-they trade with their members. There is competition among the leaders to remain in the good book of the Management.

Thank you for giving me an opportunity to ventilate my opinion through you".

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Rayasam Govind says :   I  am a recently retired employee of a nationalized bank. I feel that on account of lot of delay in the settlement the employees are frustrated and hence they are using the words such as beggars association etc., But one of the reason I feel for such a harsh addressing is that the employees are kept in dark about the goings on in the wage revision talks. The unions can be open to its members on what is going on. Nothing is shared by the unions with the members. That is the main reason for this position. No circulars are sent by them. The unions can openly inform the mind of the management to the members and even seek their suggestions. This will make the members feel that they are honoured and also will help them wait for the results. Silence from the leaders give raise to many rumors."

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Deepu Bhai  (Dipendra) says : "This is very right opinion.  Present time we are demanding our right as beggar. thanks to our all unions."
 

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CHANDAN DATTA says   : Bank employees wage increase 17.5% pushed the attraction of a bank job far behind than that of a central government job, while compairing stress & strain involved between these two. Definitely unemployed will join in bank for employment, but not brains as it used to be happened in the days of Eighties & Nineties.One should observe that the so called wage hike every five years in banks have been quite minimal during the past decade or so whereas in central govt. there has been a quantum jump this time. As matters stand today the pay package in central govt. is quite high when compared with similar posts in banks. So naturally people who have other choices in hand will not join banks any more. And one should know that in banks now a days people have to toil hard even beyond ofice hours, that too being loaded with heavy risks all the time. In such a condition the present pay package wil not attract talents into banks.

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Ashok Gupta says :  

Wage Revision – Unions Past, Present and Future wage revision

(As submitted by one of our readers - Mr. Rajesh Sharma)

Past :-  Pre to post Pillai Committee Report, We have seen the negotiating skills of our union leaders. Bankers were getting more pay then Central Government employee. Due to UFBU Leaders negotiating skill, we are now getting just half of central Government employee pay. This is sufficient to Judge the Union leaders Past performance.

Present :- Since most of UFBU Leaders are retire, they are interested party in wage revision. Even though they are retired, still they want maximum share from current wage revision. And They have agreed to share the wage revision bill toward filling the shortfall in Pension fund. Result 1/5th portion is left for wages and 4/5th portion is appropriated towards pension. We will be getting meager 7% rise in wages, that too on March 2007 salary.


Future :- They have taken the bait of pension from IBA and gleefully agreed to share even the future wage revision towards shortfall in pension fund.  So IBA has very intelligently hedge the Mismanagement, Inefficiency and corruption in Management of pension fund. Any shortfall in pension fund due to mismanagement, inefficiency etc., will be deducted from our future wage revision.

Result :-

IBA has won the battle by driving UFBU leaders to accept the bait for pension from wage bill. Instead of giving actual pension option, UFBU leaders have made current employee to share wages for present as well as in future.

Though IBA appears to have win the battle, but in long run it will destroy the banking industry. Bank will be able to hire only inferior talent from market due to low wages.

Social status of Banker would decline very sharply, as Bank’s General Managers would stand a notch lower than the Section officer of Central Government. Bank Clerk salary would be lesser than central government Sub (Peon) Staff.

Dated : 27/10/2009

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Views of Mr. T. BISWAS (Assist Manager, Kolkata) :   In response to above article, we have received the following reply :-

" Respected Sir,  its very true, that due to lack of negotiation  skill of our so called leaders we are too short fall form any central govt as well as state govt  employee. some days ago I had talked with Mr Venkatchalaman, Conv of AIBEA,  When  asked for wage revision he said me past negotiation  was 13.25% & after 2 days strike we again offered 17.5%,  According to him it is sufficient for current wage revision & when I asked after this wage revision, still the salary of any bank officer will get basic pay diff  7000/-, he then asked me TO QUIT  THE JOB FROM BANK (AT PRESENT I M IN A GOVT BANK AS ASSIST MANAGER, JOINED AS A PROBATIONARY OFFICER IN 2007).  Actually this is the present condition & character of our so called leaders, thank u for published this article -Regards"

Dated : 28/10/2009

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Mr. Abhy Sinha has sent mail saying "Your views are true and I also accept your views"

Dated : 29/10/2009

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Mr. M L Mahajan has submitted the following comments on above article :

" I  fully agree with the view expressed above. The successive leadership of banking industry employees and officers alike had miserably failed to protect the interest of bank employees who stood behind them as solid rock. Having got a support of more than 1 million bank employees , the UBFU could have done wonders for the welfare and wage revisions of the bank employees. But as most of them are retiree, they are more interested to butter their own bread. We are not against retirees as all of us have to retire, but we expect them to be sincere and honest and determined to protect the interests of the members they are enjoying the support of. In this settlement nothing less than 25-30 % per cent should satisfy us.

Alternatively, let us link with the Pay Commissions of the Government or the let the Govt. appoint separate pay commission as it does for PSEs. We should be ready for a 8-10 year span rather than going in for revision every five years, most of which just goes in arrears. It makes sense to get one-rupee today than getting 1.25 paise after five years ( a 25% increase) as going by the rate of inflation such an increase would be negative .Therefore, let us all join and urge upon the Leadership to salvage the situation and get an honourable settlement, if required may be for 8-10 years on the scale of Sixth Pay Commission."

M.L.Mahajan
29.10.2009

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ANANT JEURKAR  in his email says   "WAGE REVISION OF BANK EMPLOYEES, AT THIS TIME IS MUCH NEGLECTED BY IBA AND GOVT. IN SPITE OF INCREDIBLE UNITED STRENGTH OF BANK EMPLOYEES, WHY THESE UNION LEADERS ARE KEEPING MUM? IN CASE BONUS PAYMENT TO BANK EMPLOYEES ALSO, THESE UNION LEADERS ARE UTTERING NO WORD. AFTER 6TH PAY COMMISSION EACH AND EVERY CENTRAL GOVT. (CLERICAL CADRE) IS GETTING MONTHLY GROSS SALARY, MORE THAN RS.15000/- P.M., AND THERE IS NO ANY BARRIER OF RS.10000/- FOR GETTING THE BONUS. BUT ONLY BANK EMPLOYEES ( AND LIC EMPLOYEES ALSO) ARE DEPRIVED OF GETTING BONUS, ONLY ON ACCOUNT OF THAT, THEY ARE GETTING MONTHLY GROSS SALARY ABOVE RS.10000/- P.M IS THIS JUSTICE? ALL OTHER PRIVATE SECTOR, CO-OP SECTOR BANK EMPLOYEES ARE GETTING EX-GRATIA (8.33%) BONUS. THEN WHY ONLY NATIONALIZED BANK EMPLOYEES ARE NOT GETTING THIS EX-GRATIA AMOUNT? WHY AIBEA / UFBU / AISBOISF / NCBE/ ARE AO RELUCTANT TO THIS BONUS ISSUE? CAN ANYBODY TELL ME A REASON?"

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Ajay Varshney says :  " It is nothing but history repeating itself!!!     Can you give me some solid reasons to continue membership with my union (whatever it may be!)???

Fun of the game is that no union leader is ready to answer any querry on settlement!
But they have started saying that we should be thankful to the management that they have agreed for 17.5% which is historic. In no other settlement could we clinch this heavy increase!!!
Not only that , one smart union has even said that --'see we are going to get an increase of some 10% in DA in Nov, its because of the Union efforts'. WHAT would you like say on that. Please respond.

I appeal to one and all to resign in mass.

 MATHEMATICS OF BANKER'S  WAGE REVISION

(As submitted by one of our readers - Mr. Rajesh Sharma)

Initially IBA has agreed for Rs 6000 Crore as wage revision Burden due external relativity (6th Pay commission recommendation). Later on improved up to Rs 7800 Crores.

Employee Unions raised the demand for pension Option. Option was converted into Pension burden calculation and sharing of Pension burden. Silently and conveniently External Relativity was ignored and lost.

                              a) Initially for current employee Pension burden (Rs 6000/ crore )
                              b) later on even for employees retired after 1996 pension burden Rs 3000 Crores.

Mathematics of pension is as follows :-
 

Phase 1 (figures in Crore)
Total Wages offered by IBA = Rs 7800/- (Approx 31.2 %)  [Assumption Rs 250/ crores is 1% ]

Total Burden of Pension = Rs 6000/-
Out of which  IBA agreed pension burden = Rs 4200/ (deducted from wage offer)

Wage revision offer shown to us = 3600 Crores (7800 – 4200= 3600) (Actually 14.4 %)

Employee to bear Pension burden = Rs 1800/

Net (Actual ) Wage revision offer is only = Rs 1800/
(Rs3600 -1800= 1800) = 7.20 %

 

High Lights of wage revision Agreement :-

IBA is ready to pay 31.20 % rise Rs 7800/ Crore
Full pension burden is adjusted from wage hike in either way.(7800-6000)
Unions wants to help even retired (after 1996) employee from this wage revision.
Net Wage revision offered is meager Rs 1800/ Crore (Aprox 7.20%)
If pension is actually given as an option  - Employee would get 31.20 % rise in wage which when compared with external relativity (Central Govt employee was given 33 % to 40 % Rise.) may be in acceptable limit.
Pension burden is fully loaded on Bank’s employees.
In desperate bid to obtain 2nd pension Option, Union have opened a new way to IBA for sharing the future wage revision burden by employees.
This is not the pension option, it is burden sharing by Current employees.
Unions are silently playing against current employee interest, 

Decision of Retired employee burden (Rs 3000 Crores ) sharing is not clear.

Members needs to be alert of development, and read all UFBU circulars carefully.  And Act if necessary.
 

You can submit your comments on : allbankingsolutions@gmail.com

You can submit your comments on : allbankingsolutions@gmail.com