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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

" 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

Dated : 29/10/2009

" 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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