फोरम आफ बैंक पेंशनर एक्टिविस्टस्
Forum of Bank Pensioner Activists
PRAYAGRAJ
कामये दु:खताप्तानां प्राणिनाम् आर्तिनाशनम् ।
For Circulation:
Shall Aggravate Further:
(Part-3)
INTRODUCTION.
In Part-1, dated 6th June, 2020 followed with Part-2 on June 8, we covered the developments from ground zero to top hierarchy of Banks' management & Unions. Now, in this edition, we shall discuss wages & service conditions history. We wish to examine, whether existing patterns of wage revision & fixing DA hold relevance today. What's wrong that resulted in poor wages, allowances, pension & service conditions. This article may be long, but there is no short way for long journey. So, please bear with us. Let it reach in every hand of bank men.
CHANGE:
-nothing is relevant for all time!
2. Change is always painful. Without pain you can't enjoy the fruits of change. Whether it's Unions, management or bank men they should sincerely note that nothing remains relevant all time. With the change of time, things undergo reforms, innovations, priorities. Relevance of day may become irrelevant in future dates. Banking can't be exception to it. Something which was relevant in 1950s, 1960s that underwent recast in later half of 1960s. Recast was taken as as greatest achievement, since it set aside a system that was found obsolete, since not delivering satisfactory outcomes. And, to bring recast don't you think the inherent pains that people had to bear! Just in 15 years, from 1950-1965, the then system, courts/tribunals, third party forum, were felt to be obsolete, neither satisfying the bank men nor meeting out their aspirations, nor serving the cause of industrial peace in Banking. This brought the idea to change. Union decided no more court & tribunals and demanded Bipartite mechanism. It was achieved, popularly called Bipartite Settlement. It worked well for over 3 decades in the then prevalent conditions. The Central Pay Commision Recommendations, 1996 gave it a hit as from here bank men salaries bowed down. Bank men have golden era even when Banks were in private hands. In 1970s banking was termed as high wage island and bank employees and officers as high-wage- islanders, since they were getting more than their counter part in controlling Finance Ministry.
WHAT'S RATIONALIZATION?
-when someone is over fed & trimmed!
3. After nationalization in 1969, 14 Banks were brought in under control of Finance Ministry. As stated above, bank men were getting better than Central Govt employees & officer, 'so over fed', it was not tolerable for administrative Ministry. So, the Govt had to appoint the Pillai Committee to 'rationalize', means 'trim', pay & perks of Bank Officers. This way Pillai Committee puts a lid over bank officers better pay and allowances, to contain and put them behind Ministerial officials. It's verifiable fact!
FALLOUT OF OVER UNIONIZATION!
- examine 7 to 10th B/settlements,
make honest appraisal yourself...
4. Bank men were very optimistic that the imbalance caused due to CPC, 1996 in bank wages would be taken care of in next settlement due in 1998, but the settlement couldn't abridge the gap. Not only this, 7th settlement started new era of down fall. In this settlement, very first dent was made on newly implemented Pension Scheme. Pension Scheme was a separate and exclusive settlement totally de-linked from wage settlement. But, Bankers dragged it in wage settlement and made it a part of it for bad reasons. In 7th settlement two scales were structured on 1616/1684 indices, 1616 for pension & 1684 for wages. It crippled Pension entitlement of bank men retired on or after 1.4.1998. The horror it created forced Unions and in 8th Settlement it was deem as aberration and rectified from 1.5.2005, prospective effect. Rest you know how and who had to under go pains to get justice from Supreme Court for periods 1.4.1998-30.4.2005. It's not yet delivered fully.
5. In 2006, CPC recommendations bolstered Central Government wages to which 9th settlement couldn't make any pace. The 9th settlement reached in 2010, widened the gap. The 2nd Pension was bought at unprecedented high cost on unethical new terms, in contravention of settled principles in Pension Regulations, 1995. Irrespective of date of superannuation, pension pay out started from Sept.2009. Irrespective of date of superannuation, all had to pay equal amount to compensate Pension Funds. Pension Regulations, 1995 was effective from 1.1.1986. All who desired Pension had to refund banks' share of PF+interest they received on superannuation plus 6% simple interest and they got Pension from date of superannuation. In 2nd option, look to how the 2nd option was given a new frame to extract last drop of blood of optees.
6. In 10th settlement, wages continue depleting. The same modus operandi of 7th settlement which they held as aberration in 8th settlement was adopted to curtail pension entitlement in 10th settlement by segregating 7.75% of basic pay and reclassifying it as Special Allowance making it disqualified for Pension calculations.
7. Bank men must note that down fall in comparative wages, 1616/1684 anomalies in 7th settlement,; terming 1616/1684 as aberration, removing it from 1.5.2005 and causing an issue for 1.4.1998-30.4.2005 that went up to Supreme Court by individuals in 8th settlement; 2nd Pension Option in new frame and abondonment of old Pension Scheme by 'agreement' in 9th Settlement and creation of Special Allowance in 10th settlement it all happened, since UFBU came into being. Never in these settlements, Pension Revision issue was dealt seriously as the wage revision, rather scheme was scuttled.
See the contrast. When UFBU was not there, Pension Scheme was achieved by one single Union as against the combine opposition, will & efforts of all Unions, Banks management, IBA and then Govt. Could anyone honestly deny it? Pension concept was totally new one. Pension was meant only for Govt servants, which bank men were not. When a single Union brought about perceptional Change, how all unions were unitedly failed to protect old pension scheme & abondoned it? How, they all unitedly failed to get it revised with wages? How the all unitedly brokered 2nd Pension Option on new terms contrary to what exist in Pension Regulations, 1995? How, they all unitedly repeated 1616/1684 in 10th settlement by creating Special Allowance de linked to pension entitlement? As against the slogan: United we win, Divided we lose, how it happened just reversed, Divided we gained, United we lost?
7. Given a look to CPC recommendations, 2016, 15% rise deal in 11th settlement shall push bank men further far behind. The well known mechanism to construct new Basic in every settlement by merging DA at certain indices and giving 2/3% load there upon and then slacing down D.A.rate on remaining indices plus future indices, have been the root cause of poor pay out. This mechanism dismantled the Pay, DA, Allowances etc, deprived them from due rise as they deserved. It has been just head adjustment, from a DA part merging in Basic+ 2/3% , of course a poor blending. Given load is 2/3%. Understand: basic 300+ 200 merged DA makes it Rs.500. Now give 2% or 3% load on Rs.500 it becomes Rs.510 or Rs.515 respectively as new basic. D.A. on remaining indices are sliced down from .10 to .07%. If we are wrong, we may be corrected please!
8. Understand DA mechanic. In 1st Bipartite Settlement DA rise rate for subordinates was 4% (100% , neutralization), for clerk 3% (75% neutralization). Officers were getting somewhere around 65% neutralization. In 9th settlement DA was .15%, in 10th settlement DA came down to .10% and now in 11th settlement it is likely to be .06%. Now, let us work out the probable DA in 12th, 13th. It may be like .02% in 12th settlement from Nov. 2022, -.02% (minus) in 13th settlement from Nov. 2027. Thank God, if we are wrong, but given the procedure adopted so far, it's absolutely correct: minus DA from 2027, means.... ???
Somewhere in 1990s, as I remember, I questioned the rationale of DA percentage reduction in every settlement from a very senior leader. He replied, DA can't be on DA. I questioned, where was DA on DA. DA is merged in Basic and merged indices are removed. It's remaining quantum of indices plus future rise of indices. He replied, ' I don't know much, it is being worked out by a 'senior' leader of South. That time I murmered: it means in1998 it may come to 1.5%, in 2002 it may come to 1%, in 2007 it may .50% in 2012 it may go down to .20%. What I just murmered long long back have been happening in subsequent settlements. The method Unions helds in this regard has been the root cause of wage deterioration of banking industry. Basic was increased, but DA was cut. It worked like putting a well fed goat before lion. Feeding a milching cow, doesn't help cow get good health. Just it lives on. If you doubt, please reworkout. Had it not been so, bank men have never been poorer in wages.
9. Now, let us look to other aspects. Wage increase has been sealed at 15% rise. However, it's far better than 9% offer on which a satisfaction note was issued by a biggest constituent of UFBU. There is another reason to strike a note of greater satisfaction at 15% rise, according to Unions, because in 2015, in 10th Settlement it was 15% rise when Banks were in their pink of health. In 2020, getting 15% was somewhat beyond imagination, as all Banks have bleeding balance sheets for last several years, that's why 15% rise, as per Unions' unanimous 'choice', put forth on 30th Jan.2020 was assumed as asking for moon, so there has been an occasion for bank men to have clapped, applauded & rejoiced the said 15% rise development, but it didn't happen to great disappontments of leaders. Bank men displayed no joy. We are of opinion, done is done and it can't be undone, better bank men understand it and now move forward, instead stuck in and hurting their soul and mind.
In our next edition, we shall very specifically talk about the alternatives, discuss how existing Bilaterism has rendered itself unviable and counter productive. One fact, bank men must bear in mind, bilaterism with existing mechanism of affordability, paying capacity, construction of pay & allowances by merging DA indices, giving 2/3% load, reducing DA rates is no more panacea of bank men safed & service conditions. Some new bench mark is the need of hour, either from Govt establishments or from Regulators, since Banks are in Public Sector and run with social objectives in mind that are decide by government. We are no more commercial Banking. We don't work on profit motive. We work & deliver, without any fault. And, if any fault, we are dealt severely.
(to be concluded)
- J. N. Shukla
National Convenor
11.6.2020
No comments:
Post a Comment