Truth Of Wage Talk Revealed by Mr. GV MANIMARAN

Ref : GS/JUL/2018/18 DATE.29.07.2018
To
Com.Soumya Dutta
General Secretary
All India Bank Officers’ Confederation
C/o SBI Officers’ Association (Bengal Circle),
1, Strand Road, P.B. No. 2874(GPO),
Kolkata - 700 001.

Dear Comrade,

Sub : Wage Negotiation Talks with UFBU – Sticking to AIBOC’s Stand of Wage revision based on the principles and formula of CPC to fix Basic+DA
*****
I am writing this letter at the time when UFBU is preparing for the next round of talks with IBA on 30.07.2018. The approach of IBA in inviting UFBU for the negotiations exactly two months after
our historic strike shows their apathy towards wage revision.

The last talks during which IBA offered a meagre 2% increase was a shocker for the entire workforce of the Banking sector, who were thinking of getting a decent hike in their wages, which would be matching to the salary of the other sectors especially after implementation of the 7th CPC.

The expectations of the Bank Officers have been rightly brought in the Charter of Demands
submitted to IBA by the Four Officer organizations led by AIBOC. The entire Banking Industry is thankful to the General Secretary, AIBOC for having brought the paradigm shift in wage revision and incorporated same in the COD submitted.


The COD submitted by us has demanded the wage revision on the lines CPC formula for fixing basic + DA with illustrations and explicitly stating the need for CPC based wage revision in no uncertain terms.

But now the demand of UFBU is for REASONABLE WAGE INCREASE without mentioning any formula.
Already few of the UFBU constituents have voiced their views against the CPC formula and how it is unsuitable for Banking Sector, clearly forgetting that our demand is only for adopting the formulas applied in CPC for calculation of wages.

The CPC used the norms set by the Indian Labour Conference to determine the need based
minimum wage, which should cover all the needs like food, clothing, housing, fuel, lighting and other items of expenditure of a single industrial worker and his family.

After considering all relevant factors the CPC recommended a minimum pay of Rs.18000/- for the lowest ranked employee in the Central Government w.e.f. 01.01.2016. CPC was of the view that this pay is fair and reasonable and one which, along with other allowances and facilities, would ensure a decent standard of living to him and his family.

By applying the above principle the basic pay of the Grade A Officer is fixed at Rs.57100/- which
is 3.11 times of Rs.18000/-as on 0101 2016. As Government of India has already accepted that the officers in JMG Scale 1 are equivalent to a Grade A officer in Central Government, the minimum basic of Scale 1 Officer should be at least equal to Rs.57100/ minimum which should be much more as our wage revision is due on 01 11 2017.

As per the present norms followed in our bipartite negotiations even if the entire DA is merged with the basic as on Nov 2017 the new basic would be around Rs.37000/- only which is way behind the Basic pay of a Grade A Officer in Central Government. In the present form, to reach this level of Rs.57100/- we may have to load a minimum of 65% whereas the last wage revision’s load was mere 2% which is now offered by IBA.

The Government is also prepared to adopt the principles of the CPC for the Banking, Insurance and Finance Sector which can be established by the provisions of the Code on Wages Bill 2017.


During the last reconciliation talks CLC has also clearly appreciated our stand that the officers’
salary should not be fixed basing on the profit or paying capacity of the Banks.
While Congratulating You and AIBOC for demanding the CPC formula to fix the wages without linking the profit and paying capacity, we reiterate that AIBOC should not succumb to the pressures of other constituents and stand firm on the following Wage Revision demands

1. CPC formula to decide Basic + DA
2. Running scale without stagnation at any level as the promotion is not in the hands of the
youths.
3. NPS shall be scrapped so as to utilise the corpus already built in by the seniors.

The officers’ fraternity would forever be thankful and indebted to AIBOC if the above
demands are achieved without any compromise and it is duty too as the news are spread that
the Government is planning to accept the minimum wages between 21000 and 28000 against the earlier suggestion of 18000/-.

Yours comradely
G V MANIMARAN
GENERAL SECRETARY

** An earlier letter dt 30th May 2018 written on the above subject is annexed for your kind
and ready reference.



Dear friends,
I am writing this letter at the time when UFBU is preparing for the two days strike by 10
lakh work force of Banks, both Officers and workmen against the attitude of IBA and
Government, who have offered a meager 2% salary increase.

This was a shocker for the entire workforce of the Banking sector, who were thinking of
getting a decent hike in their wages, which would be matching to the salary of the other
sectors especially after implementation of the 7th CPC.

Matching to the expectations of the Bank Officers, Four Officer organizations led by
AIBOC submitted the Charter of Demands to IBA wherein the aspirations of the Officers
have been rightly brought in.

The entire Banking Industry must thank our General Secretary, AIBOC for having
brought the paradigm shift in wage building and incorporated same in the COD submitted.
I reproduce here below the demands made in COD, wherein we have demanded
the fixation of wages for the Officers basing on the principles adopted by 7th CPC :

PART 1
Objective
The remuneration package of the Bank officers needs to be framed in such a manner that officers would feel that they are valued and fairly paid considering their work load and undertaking of enormous risks
and responsibilities. They should be treated at par with Government officials and PSU officers. As stated in the 7t h Pay Commission Report the
status of an officer in the society should also be taken into account while
fixing the salary.

Remuneration of officers is an important element of proactive functioning in Banks in this era of competitive scrimmage and their
commitment, dedication and hard labour towards the progress of the economy of the country. In general, the level and structure of salary /remuneration / compensation should aim to achieve four objectives asunder:

(i) Salary Structure should be sufficient to attract and retain quality officers.

(ii) Salary Structure should motivate officers to work hard.

(iii) Remuneration should induce other human resource management reforms.

(iv) Salary should be set at a level to ensure relativity with minimum salary in Banks and officers' initial pay in line with compression
ratio, as shown below, of Central Government Group A officers'initial pay and their minimum pay of Group D employees.

(v) Salary should take into account the Risk, Responsibility, Accountability and also the Transferability of Officers.

(vi) The Bank Officers have a status similar to the Govt Officials and to maintain that status the salary should be adequate, by offering additional cushion.

(vii) As promotions depend only on vacancies which depends on the presence and business of the individual banks no body should be allowed to stagnate and running scale should be introduced.

(viii) The anguish, agony and the aspirations of lady officers should be taken into account

(ix) Superannuation benefits should help one to live a respectable life after retirement

(x) The hard work and contribution of the bankers for the development of the economy should be acknowledged through decent salary hike and allowances.

We insist that the anomaly created in the last wage revision by providing special allowance with DA instead of Basic Pay has to be rectified this time.

The merger of special allowance and DA with the Basic Pay has been done already for LIC Officers and RBI Officers.

A standardization of salary and allowances for Bank staff has been done by a Committee famously known as the Pillai Committee
which gave certain recommendations in 1974 which were further discussed and rationalized and implemented in 1979.

Pillai Committee had taken into account the guidelines of UN publication, handbook of Civil Service Law and practices 1966, which
mentioned 3 major requirements of sound pay structure viz..inclusiveness (pay structure in relation to other sectors of economy)
comprehensibility (an easy quick picture of gross emoluments) and adequacy (to attract right type of persons and retain them). The Pillai
Committee added 2 more viz.. rationality (functions and responsibility of posts ) and career planning.

It said in view of the importance of the national approach to wage problems we consider it necessary to make the pay structure in
nationalized banks broadly similar to that obtaining in the State Bank Group, in the Central Government and in Public Sector undertakings

The committee also said, “ If the objective of attracting the best talent in the country is to be achieved, the pay of the bank officers at
the entry level should not be anything less than that obtaining in Class I services and Public Sector industries” (Para 5-10)



From:--
C/o Canara Bank Officers’ Association,
216, Royapettah High Road,
Royapettah, Chennai - 600014
Opposite to Hotel Deccan Plaza
Tel. Nos. 044- 28112454 Fax:28113151
e-mail id: ainbof@gmail.com