Why Is There Shortage Of Fund In Wage or Pension Hike?

BANKS, IBA MUST STOP Befooling, Misleading Bank Men and Government

 IN THE NAME OF 'FUND PAUCITY' IN PENSION REVISION OR WAGES

'Pension Funding' is ownership problem, how could it be fixed by Bank men? 

And, accordingly, in Pension matter, funding responsibility is fixed in very specific and unambiguous terms in Pension Agreement, 1993 & Pension Regulations, 1995, as to who would ensure all time fund adequacy maintained and how it would be ascertained periodically that it is adequate and serviceable. 

Product costing of bank services is being done by the management, which they should have been doing taking into account various factors with a view to have reasonable margin after meeting operating costs. As far as the role of staff is concerned, it's of performer. Staff accomplish the task and there is no grievance to clients or the management.

Operating profits and business growth prove, bank men have been doing well at all layers. Further, share of establishment cost ( on staff) have been on declining trend for last several years. Between 2012-17 it declined from over 13% to 10% of expenditure. This decline itself has caused enough room for wage increase. It is somewhat 25% decrease. We don't think, unions are asking to replenish 25%, while demand of such increase is legitimate and even if is given, establishment cost shall be with in 2012 level.

Pension has not been updated ever since it was introduced in 1986, hence a long gap and resultant accumulated  overdues affect. Let us take another view. Pension annual outgo is about Rs.15500 crore as against annual  income of about Rs.20000 crore. It speaks of comfort as far as incomes and expenditures of Pension Funds are concerned.

This is despite the fact that Banks have not replenished real inadequacy in Pension Funds. Looking to this position, fund position can be assessed. The fund requirement what IBA says is totally exaggerated and wrong figure. 

As a layman calculation, let us take 25% increase on revision of  pension that means about Rs.4000 crore more annual outgo as pension. It warrants around Rs.20000 crore additional funding, not what IBA projects. 

To avoid financial burden banks in one year, this can be amortized for 5 years. 

Recall: in past once, RBI found banks not depositing in Pension Fund to the tune of Rs.20000 crores. Then RBI permitted Banks to amortize the said amount for 3 or five years. So, all these are management issues. 

Since matter relates to retirees & working staff, it is most important and core issue. It needs to be dealt as in case of capital requirement. Capital needs are met by government, but here in staff matters, though it's important and core factor of operations, Banks are reluctant to appreciate it. Pension is self funded. Banks need just to bear very negligible burden of funding to which they are bound by agreement. They must respect it. It's not, they are paying to beggars. Pension Payment rests with Bank as their obligation to discharge. Pensioners have this right on the basis of service life performance and contributions.

Bankers harp on bad financial position. It's really sordid state of affair that such lame excuses are taken by Bankers. They must be ashamed that they are not willing to give good pay and allowances. It's ashaming to note that the Bankers are denying their poorly paid Pensioners the revised pension. They are unfit to be called Bankers. They must be removed from their positions. They are not performing adequate even to maintain working & retired staff.

Bankers have very malafide intention behind taking such baseless stand. It's just hoax. Even if they increase .10% in lending interest rate, it may resolve their tension. Free remittance services are major pilferage in income. 

Why is it free? It's management made leakage. 

Banks are commercial and these remittances are commercial transactions. Banks loss is businessmen gain. Once, free remittance in SB accounts can be justified, but not in ODs, CCs, CAs. These are business accounts. How unions can agree to fund pleas or support IBA in such a situations. 

Unions have never raised this issue or expressed concerns on such leakage. There is no such agreement to get salary, allowances, annual increments or periodical wage revision subject to profits, paying capacity or affordability etc. 

How this Golden rule of 'paying' capacity or 'affordability' is invented by great Union leaders? 

Bankers in past resorted to VRS to reduce head count, contain pay out, and increase workload on remaining heads. Banks are under consolidation, a long over due reform, with a view to rationalize PSBs and maximise gains. It's a fact that donkies are load ammune. Bankers think working staff are ammune to work load and Union Leaders too share this noble idea of Bankers. Bankers open branches, undertake third party services, but restrain recruitments,  save cost and shift increased work load on existing employees turned  load ammune donkies. Business growth, means load increase per donky, has registered tremendous rise. So, we have hundreds of reasons to justify our demands and ways to get that but bankers have one -financial difficulty- reason that they use as master stroke. Bank men say, we desire just fair wages and service conditions and Bankers say, all is well, but there is financial distress, you need more burden to undertake at Bank. 

We know where lies the faults. Bank employees too know well people this or other side treating them as donkey. Worst situation that goes down to pre-1950 history of inhuman exploitative treatment and neglect of due compensation. Same story of pre-1950 ceaseless, timeless working & dinky load work pressure!. 

Dear Pensioners, you come from a generation of fighters. No doubt, after retirement you are pushed to extreme side if receiving end, but have courage, conviction, patience and fighting spirit. Let it not die. We may succeed or not, but while alive, we must continue to struggle. We are injustifiably treated by Banks, Management and Unions. Unions, yes, unions to which to belonged and associated whole working life have turned worst for us in our odd days of life, we never thought of their cruelties of such dimension as it stands today.

Look to Post Card Campaign. We have informations from across the country from over 1000 leading Pension Activists, that hectic preparations are on way. People are buying Post Cards in hundreds and have started writing message. This month long campaign shall be the expression of our being live and active to help our banking fraternity, whether retired or in working. We want change. Yes, change in present pathetic working conditions and low compensation.

(J. N. Shukla) National Convenor, Forum of bank Pensioner Activists, Prayagraj.

PostCard Specimen.

Respected Prime Minister, Govt. Of India New Delhi

Sir,

I am a Bank Pensioner. My Pension has never been revised, since fixed.

My Pension is as per RBI Pension Policy. Govt. had since revised RBI Pension, my Pension please be revised accordingly.

Regards,

Signature

Name

Address

Date.....

Address:

The Prime Minister, Govt of India , South Block, Raisina Hill, New Delhi 110 011

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आदरणीय प्रधानमंत्री जी,

भारत सरकार, नई दिल्ली

मदोदय,

मैं एक बैंक पेंशनर हूं. मेरी पेंशन जब से बनी है, तबसे एक बार भी पुनरीक्षित नहीं हुई है.

मेरी पेंशन रिजर्व बैंक पेंशन नीति की तरह है. सरकार ने रिजर्व बैंक पेंशन का पुनरीक्षण किया है, हमारी पेंशन को तदनुसार पुनरीक्षित करने की कृपा की जाये.

सादर,

हस्ताक्षर

नाम

पता

तारीख