MOU Between IBA and Bank Unions DATED 22.7.2020

       MOU DATED 22.7.2020

In last 2 days, we have received numerous questions & queries from banking fraternity from across the country with regard to Memorandum of Understanding signed between UFBU Unions ( baring one) and IBA on 22.7.2020. We have to say as under:

1. It has been done by Unions under extreme pressure & dictate of IBA; do it otherwise IBA would do 'something' on its own accord. IBA, obviously with concurrence of authorities, had made up it's mind that in case MOU is not signed on dotted lines, it would move forward and release one month's more advance against arrears & give ad-hoc increase in basic pay from July, 2020. The authorities were no more in tolerant mood to keep it aflame any more & tormenting the mind of banking fraternity.

2. MOU has nothing to surprise. It's just reached out dated. It should have been done on 30th January, 2020 itself, when 15% rise condition set by Unions was met with by IBA. 15% rise demand was set by Unions as an 'unachievable' condition to withdraw 2 days strike of 31st January-1st Feb.2020, having applied their mind and reached to unanimous decision. But, once IBA conceded 15% increase, they were withered & turned their back, of course without cogent reasons. It was a sabotage to themselves.

3. MOU is on expected line. It's not an achievement of Unions. It's on the strength of 'good will' of employees & officers that they 'earned' over last 6 years by their work & conduct, definitely under extremely difficult conditions. Just make a self appraisal. Despite, entire PSBs in Red for several consecutive years & bulging NPAs, the authorities concurred with 15% wage increase. See other side. In 2015, 15% rise was given at the intervention of FM, when all Banks were in rosy picture. This time in most gloomy financial conditions, unparalleled in history, 15% rise has been accorded, which the Unions put forward, assuming as unachievable. It has been in a simplest way, because the authorities have been in hilarious mood with bank men performance in most difficult phase of time, be it demonetization, Jan-dhan accounts, health/life insurance, Atal Pension Yojana, direct transfer of benefits, Mudra Yojana or in present day Covid19 uninterrupted banking services & implementation of economic packages etc.

4. It's one Chapter. It is dealt with. We think, working fraternity, must feel contended, particularly in a situation where there Unions were strategically very poorly dressed up. They took a prima facie view of red balance sheets, losses and were succumbed to Bankers strategy of 2% initial increase offer. Unions were stuck here. It was a trap that Bankers laid. Another trap was officers' scale issue, which created a fury among Unions, divided them and IBA got biggest Officers' Union AIBOC trapped in and thrashed brutally. AIBOC was silenced through different methods. IBA treats Officers' Unions as their cat and it doesn't like, this cat go out of bag.

5. If Unions having powers of united actions have failed in working fraternity matters, how could retirees expect any deal for them is a point of another self appraisal. Family pension was settled long back, but held up till date. So, Chairman SBI opened his lip, just to send a feel good message. Pertinent question is: who are beneficiaries? It's those who were in executive class with high salary, so they had to face ceilings. This goes in their favour. It's going to benefit only 10 to 15 thousand pensioners, not bunch of 72000 family pensioners as acclaimed by a puppet Pensioner Federation.

6. We think, Bank pensioners are aware of false words the leader of biggest workmen Union gave & declared  not to sign 10th settlement without pension revision. This time, biggest officers' Unions had made roaring announcements during their 2 days strikes, Delhi Dharana etc that they would not sign 11th settlement without pension revision. Such opportunistic averments are just appeasement. It just rubs salt on wounds. MOU doesn't have any 'pension' word leave 'revision'.

This is one part of our reaction. In nut shell, whatever is there that's not because of Unions, but because of good will that bank men earned by their exemplary work & conduct. Unions succumbed to circumstantial traps of Bankers, which IBA used, as their strategy. On 22.7.2020, Unions were under extreme pressure and compulsions with no alternative except to sign on dotted line, except one. One- it may come on line after some flutter. Travel to Mumbai was 'control' and 'save' from offing great showdown.
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Further, to our post dated 24.7.2020 and as promised therein, we issue this post as Part-2 on subject cited above. It's not only for information, but for in-depth introspection at all level, rising above personal affiliations & parochial considerations in terms of gains and losses.

Bankmen must take in view their long term prospectives, as their over confidence landed them in most chaotic conditions. Bank men should no more indulge in flattery, halt their fissiparous tendencies and read the writings on walls. Every present Bankmen shall have a post retirement life of over 2 decades. If they ignore their superannuated breatherens today, time will not spare them, there will be none to care them tomorrow.

Wage revision in banking is a periodical exercise. The experience tells, it is always dragged in such a manner that ultimately it frustrates, tires and defeats the employees & officers. Always, in last moments, some unexpected derogatory conditions are set in which jeopardize the vital interests.

Just for reference look to 7th settlement, it deviced two scales- one to draw salary other to fix pension. After lot of hue & cry, in 8th settlement it was termed as 'aberrations' and removed, from May, 2005. An anamoly for April, 1998 to April, 2005 was caused, to address that the bank men had to go up to Supreme Court. Still full justice is not achieved. In 9th settlement, in 2nd Pension option matter, procedures pertaining to recovery of CPF with specific 6% p.a. interest, pension from date of retirement as contained in Pension Regulations, 1995 was subsituted by new rules, hitting adversely. In 10th settlement laudable announcement was made by biggest constituent of UFBU, obviously we believe it was with due concurrence of all Unions being a common issue, that it wouldn't  sign 10th settlement without Pension revision. On 25.5.2015, what to say of revision, Unions subscribed their signature to a 'Record Note' that inter alia terminated the 'contractual relationships' of Pensioners with their respective Banks.

It was a death certificate of 'relationships' signed by all Unions-IBA. Further, in obituary note, Unions agreed to segregate a portion of basic pay, i.e. 7.50+, call that Special Allowance, de-linked from superannuation benefits. It was repeatation of same blunder as of 1616/1684 in 7th settlement, with sole intention to curtail Pension from 1.11.2012.

In nut shell, right from 7th to 10th settlement spread over a period of 20 years, it's always pension under hit selectively.

The Unions say, Pension Scheme is their brain child, they are the father of Scheme. But, it leaves behind a landmark question, why these parents want to have a crippled child-Pension? Some time child's finger is chopped, some time it's diet is cut, some time medicines are denied and in 2010 they chopped the Pension head for ever. Now Pensioners become mortal remains. You see, Pensioners never allowed to grow. But, they shamelessly say, pension is their child.

Banks were giving some medical support to retirees. Unions helped Bankers to stop it and bring in place mediclaim insurance policy with laudable objectives in 2015. Retirees had to bear the cost. Bank level medical support was withdrawn. Costs of mediclaim insurance have had  increased 5 times by 5th year. Dropp outs crossed 75%. It crossed all limits, when Bankers denied it from Welfare Funds, despite DFS sanction dated 24.2.2012.

Now, let us come to another episode of MOU dated 22.7.2020. In same context, let us now examine the stand of BEFI, another player in UFBU, who didn't sign MOU on grounds they mentioned in their Circular to members dated 22.7.2020.

At the out set, we would like to set our view point straight. BEFI should have conveyed it's view points that prevented them to sign MOU to Chairman, IBA in writing. If not so, they should have lodged their dissent with UFBU. Ultimately, they have strong reasons behind their decision. Further, BEFI had such stands in past, but later requested IBA to take their signature. They shall do it again. It's their DNA So, there is nothing to give it importance, except to the extent it states facts.

The BEFI circular reveals, 'in successive negotiations & UFBU meetings' they expressed their firm commitment towards issues of retirees 'particularly' in regard to pension. It further states, ' in the matter of improvement of family pension, it was stated by IBA that recommendation has been sent to govt for necessary approval.'

BEFI wanted, the IBA Chairman's narrative that they agree in principle for increase of family pension to 30% with out ceiling be mentioned in MOU, which was not done. BEFI alleged, IBA didn't share any data for actuarial calculation despite 'assurances' given during the talks. BEFI states, 'of late, they (IBA)proposed for ad-hoc increase (in pension) to which BEFI expressed princpled opposition.

BEFI levelled serious allegations stating that 'none of these came into serious discussion due to indifferent attitude of negotiating committee of IBA.' It's strange, no such facts are in the eye of rest Unions. BEFI says, 'during the whole 3 years of negotiation, IBA did not come up with required 'detailed calculation' of pension updation.

BEFI alleged, IBA was 'sceptical' to be specific in regard to percentage of increase, loading, merger of special allowance, updation of pension and looking to their experience regarding the 'Record Note' signed in 2015, which was never taken up for discussion inspite  request on time and again, BEFI is apprehensive that the issues not mentioned in MOU would lose its relevance.

BEFI bursts out,  Bankers have written off loans to the tunes if Rs.4.5 lakh crores in last 4 years, Rs.68000 crores waived off for big defaulters like Nirav Modi, Vijay Malla & others, lakhs of crores are drained out as hair cuts, but when it comes to wage revision, they discuss about paying capacity.

BEFI said, in aforesaid matters, the bankers did not pay any heed. It disclosed,  at the time of 10th Bipartite settlement, when Special Allowance (starting from 7.75%) was introduced, it was an understanding,  within UFBU,  that efforts will be taken to merge this with Basic Pay during 11th Bipartite Settlement. So it was in COD & 'discussed' in several rounds of negotiation. BEFI reveals,  at one point of time, IBA was agreeable to merge a part of the Special Allowance, but IBA suddenly turned it's back early this year citing some court cases. BEFI rightly held it as no cogent reason to drop the issue from negotiation. Even a request to keep issue open for discussion was not accepted by IBA. BEFI expressed it's feelings that issues related to Pension should not be treated as financial issue, rather it should be taken from a social perspective.

BEFI stand is laudable, but its not IBA alone, but all other Unions too haven't given any heed to it. If BEFI has any serious and sincere purpose, we think, they should have drawn proper line and written to IBA, UFBU. Further, what made them to wait for 3 years? Why not situation was not explained from time to time. Coming out only at this juncture is viewed politically incorrect adventurism on extraneous considerations. Done can't be undone now.

But, BEFI deserves appreciation to be better late than never. BEFI's revelations have added and strengthened disbelief in leaders who are held as dishonest, cheat and corrupt by banking fraternity.

Greetings,


( J. N. Shukla)
National Convenor
25.7.2020
9559748834

NB: In next issue we shall discuss insiders view, Bankers Plan B, if MOU was not signed! The panic &  fear that made one flee like sparrow to Mumbai via London. 11th hour play, deafening cries of constituents, how 2 played foul????