UFBU Ask FM For Early Wage Revision

Bank unions seeks Jaitley’s intervention in arriving at early wage revision-HBL

K. R. Srivats

New Delhi, June 27:  

Bank unions on Friday urged the Finance Minister Arun Jaitley to intervene in the wage revision matter and ensure that the current stalemate in the negotiations towards the 10th bipartite settlement is quickly sorted out.

The wage negotiations between bank unions and the Indian Banks Association (IBA) are in a deadlock with the latter’s offer of 11 per cent wage hike not acceptable to employees.

“Finance Minister gave a patient hearing to representatives of bank unions. He has assured to get the details from Banking Secretary and look into it”, C.H. Venkatachalam, General Secretary, All India Bank Employees Association (AIBEA) told Business Line after a nearly thirty minutes meeting with the minister.

The bank unions’ interaction with Jaitley was arranged by CPI leader D Raja, who is also a Rajya Sabha Member of Parliament.

Raja was also present at today’s meeting.

Bank employees are looking at a wage revision from November 2012.

In the last round of wage revision settlement signed in 2010 for the period 2007-12, the IBA had agreed for 17.5 percent hike in total salary.
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UFBU Meets New Finance Minister -  Complains About Delay and Meager Increase in Wages                                                     

The reports indicate that today (*i.e. 27th June, 2014) the representatives of the trade unions of PSB employees met Finance Minister Arun Jaitley.   General secretaries of nine employee unions under the UFBU were present at the meeting, along with D Raja, member of Parliament from the Communist Party of India  (UFBU comprises five workmen unions and four officer association).   The leaders sought his intervention to ensure early settlement of negotiations on wage revision.

UFBU convener M V Murali said the union leaders told Jaitley they had held about 10 rounds of discussions with bank managements, but the Indian Banks' Association (IBA) was delaying the settlement.    "Despite the fact that 20 months have passed since the negotiations began, no significant improvement has been made towards an expeditious conclusion of the settlement. More, IBA is offering the least increase, quoting non-affordability of banks in paying higher wages, partly because of an increase in non-performing assets," he said.    He claimed IBA had offered a "meagre" 11% increase in pay-slip components, against the union's demand of 25%.

The union leaders have told that Mr Jaitley assured representatives of the UFBU that R S Sandhu (Financial Services Secretary)  would look into the matter and the settlement process expedited.

Comments by AllBankingSolutions.com :

It appears this was a courtesy call and no agenda was fixed.   UFBU appears to have lost an opportunity and should have asked for a formal meeting wherein the representatives of IBA and Secretaries of GoI be present.   In the normal circumstances, I would have expected such a meeting with FM, but not under Modi Sarkar, where PM insists that meetings should be not merely formality and for "chai pani" meeting but should result in  some concrete results.   It seems nobody insisted for formal meeting.   Lets hope FM's officials  remembers this meeting and ensures that talks are held on weekly / fortnightly basis.

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Representatives of United Forum of Bank Unions (UBFU), comprising mainly of PSU (public sector unit) bank employees, today met Finance Minister Arun Jaitley and sought his intervention for early settlement of wage revision negotiations.

"We submitted our representation to the Finance Minister and apprised him of developments with regard to wage negotiations with Indian Banks' Association (IBA)," UFBU Convener M V Murali said after meeting here.

He said the Finance Minister as...sured the delegation that the Financial Services Secretary would look into the matter and the settlement process would be expedited.

The delegation informed that more than 10 rounds of discussions have taken place between bank management and UFBU so far on the issue but IBA is delaying the settlement.

"Despite a lapse of 20 months since the start of negotiations, no significant improvement has been made towards expeditious conclusion of settlement. Moreover, IBA is offering the least increase quoting non-affordability of banks in paying higher wages partly because of increase in Non-Performing Assets (NPAs)," Murali said.

The spiralling cost of living and the high rate of inflation in the last few years has made the life of common man miserable, he said, adding that as against the reasonable demand of 25 per cent increase in the pay slip components, the IBA has offered a very meagre 11 per cent increase.
General secretaries of nine employee unions under the UFBU umbrella were present, along with CPI member of Parliament D Raja, at the meeting with the Finance Minister

Wage Settlement Meeting Failed

Meeting on wage settlement with IBA turned futile: Bank Employees Union-Business Standard-19th June 2014

Recovering large NPAs could help Banks to pay increase in pay slip components

The industry-wide bipartite wage settlement negotiations held in a meeting on June 13 has turned futile for the bank employees, as the Indian Banks' Association (IBA) offered an increase of 11% on the cost of pay slip components of the wage bill, according to National Union of Bank Employees(NUBE).

An umbrella organisation of nine Bank unions has informed that their minimum expectation is 25% increase in the Pay Slip components cost and this could easily arranged if the Banks retrieve their top Non Performing Asset (NPAs).

"The meeting of 13th June 2014 turned to be yet another futile, symbolic meeting with the yawning gulf separating policy pronouncements from the ground reality. Thus the 10th Industry-wide Bipartite Wage Settlement negotiations in the Banking sector have dragged on for more than one-and-a-half years now without making much headway," said an announcement from the Union.

It added that the IBA has informed the unions that the profits of the Banks have come down by the end of March 2014 and they can offer maximum of 11% on the cost of Pay Slip components of the wage bill.

This would amount to Rs 3,465 crore and would be exclusive of other costs on retirement benefits, leave fare concession, hospitalisation expenses, etc. Since negotiating unions rejected the offer of 11% increase, IBA wanted to know the expectation of the union and a representative of the umbrella of nine unions informed that their minimum expectation is 25% increase in the Pay Slip components cost, it added.

The Union added that the IBA informed them that the demand is beyond the paying capacity of the Banks. IBA's stand is unacceptable to the Union since in all the previous settlements salary increase was given a load to total establishment expenses.

"In this wage negotiations we have been offered on fixed pay components. As against the total establishment expenses of Rs 56,292 crore the pay slip component is only Rs 31,503 crore," said the Union.

While offer of 11% on establishment cost will work out to Rs 6192 crore, compared to 11% of pay slips components expenses would amount to Rs 3,465 crore only. Hence the offer of IBA for one million Bank employees is far below the amount offered during last bipartite settlement.

The Union also said that the Gross NPA of 40 listed banks shot up by 35% or Rs 63,386 crore during the nine month period from February, 22, 2013, to cross the Rs 2.4 lakh crore. This jump of 35.2% was higher than the 27% rise witnessed in the first six months of the current financial year according to a study done by NPA source.com, a portal which focuses on resolution of assets.

"Even if an infinitesimal of 1.83% of these NPA is recovered in tune with the policy plan of the present Finance Minster is expedited with all the seriousness, the demand of the union can be easily met without increase in the exchequer," said L Balasubramanian, general secretary of NUBE.

If amount due from four largest willful defaulters which is around Rs 9,384 crore, is recovered, it is enough to meet the demand of the unions without any burden and the unions will be ever willing to support IBA or the government if it initiates appropriate steps, added the Union.

However, there was a favourable silver lining in the meeting, that IBA is favourably inclined to consider demand of extending 100% DA neutralization to all pensioners, it added. IBA also seems to have shown positive response to improvement in Family Pension, but the Union still have to a lot more since the IBA has not given any commitment.

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UFBU Leaders And Narendra Modi

UFBU Needs to Learn Lessons from Modi-By Rajesh Goyal-allbankingsolutions.com

I am sure the above headline will not go well with the left dominated unions in banks.as Modi is a big No No for most of the political parties, particularly left parties.  However, one need not consider anybody as untouchable, specially when you can learn few good points in him.  The following is the brief advise to UFBU leaders based on the Modi's performance so far  :-

(a) Learn the Art of Time Management :  UFBU leaders are notoriously known for the wasting of their time.   Although they will spend lakhs of rupees on fastest modes of travel, yet they will waste huge amount of time in unnecessary and irrelevant talks and discussions.  They will rarely focus on the subject for which they have travelled.   

Now here is PM of India who sleeps around mid-night but wakes up by 5.00 AM.  Today (14th June 2014), it is less than a month when results were declared and it is merely 18 days since he was sworn in, but he has created ripples among the Heads of States in neibouring countries.   Countries like US, China, Japan are trying their best to get his attention.  New cabinet has taken over, moral code of conduct for ministers is in place and bureaucracy is having sleepless nights.  

All this happens because Modi knows the art of time management, which specially retired people like me have to learn.  Frankly speaking I can not claim myself to be most proficient time manager, yet I feel I never slacked too much.   Even after retirement, I have adopted easy going schedule but I try to write something and update students or banker.  However, the working of UFBU clearly indicates they are the least proficient in time management.   IBA and UFBU took three months for holding negotiating meeting on 13th June 2014 (Previous meeting was held in the middle of March, 2014).   

Outcome of the meeting is that as asked by IBA three months earlier, UFBU conveyed that its' demand is of 25% increase and IBA increased the offer to 11% from 10%,   Question is whether to exchange these two statements, there was need to wait for 3 months and why it was necessary to fly / travel all the UFBU leaders and IBA officials at one place to announce this.   This could have been easily exchanged through email at least 2 1/2 months back and without any cost I am sure all must have had a good Tea Party / Lunch .

The worst part is that even after the meeting was over on the afternoon of 13th June and almost 10 lakh bankers are breath takingly waiting for the circular of UFBU, these leaders are sleeping and I have yet to see the circular till the afternoon of 14th June i.e. after 24 hours of the meeting.   I know in earlier settlements they used to take even few days to issue such circular as there was no pressure from social websites. 

Times have changed, and now cadre excepts that full fledged details to be released within few hours and not after few days.   Some of the newspapers have covered the story in today's newspapers, but no circular from UFBU leaders.   Are they so busy that they can not draft a letter of one page giving what actually transpired in the meeting?  God save the Aam Banker from such retired and slow bankers.   UFBU needs to learn their lesson fast

(b) Learn the Art of Out of Box Thinking :   In number of my earlier articles I have written clearly that UFBU leaders have to think of something out of box so that they can impress upon IBA and GoI to agree to come to the negotiating table with open mind (not a mere increase of 1/2% or 1%).    Modi did absolutely same thing when he called all SAARC leaders to his sworn-in ceremony.   Worst critics and his enemies have appreciated Modi's move.    Had he tried to call these leaders later on, there would have been huge uproars by critics.  Whether this move will bring long term benefits will be known only in the future, but Modi has certainly won the hearts of Sri Lanka's President, Bhutan Kings friendship, Bangladesh's goodwill and sent a message to Pakistan that Modi at first stage is looking for peace.   

UFBU must open back room channels and find out what Government wants to do with PS Banks.  In the interest of the bankers, it should shun its stand on bank reforms and merger of banks.   Let them have free and frank discussions on pros and cons of such moves and get a good wage revision in lieu of such reforms.    

In case UFBU adopts adamant attitude, GoI is unlikely to give high wage revision and will continue to press for bank reforms and with hardly any opposition, Modi Government will be able to implement bank reforms.   Thus, bankers will be loser from both sides.  Are all bank reforms so bad?   There is a need to throw out the mentality that whatever reforms Govt will bring are against the bankers.

(c) Bring Transparency in the Unions :   Modi government has also started the process of bring transparency in the system.   We have to wait for few months before finding out as to finally how much he will succeed, but there is massive resentment among the bank cadres against the retired leaders.    In politics, there is no age bar, yet Modi has blocked all the old netas with over 75 years of age, because he knew that public in reality wants such leaders to retire.   Modi understands the mind of the people.   UFBU leaders too needs to understand the mind of the general banker. 

  There should be bar that nobody will serve in the union after the age of 60 years but there can be two to three co-opted retired members who will advise the main union (serving members)  on the matters relating to the retired bankers.   Such leaders should have say only in matters relating to retired bankers.   To avoid the acrimony among serving staff and retired staff, let it be decided that in each BPS what will be the ratio of cost burden among serving employees and retired bankers, for example it can be 75:25 between serving and retired bankers  or any other ratio which is acceptable and is workable.   This will end the fight between serving and retired bankers as to who takes more advantage.

I am not sure if any of UFBU will even consider taking my advise, but as on few occasions I have been asked to give my practical suggestions, I am trying to put across the suggestions for consideration of my serving and retired colleagues.    Remember, the above article is without my personal liking or disliking of Modi on various issues.