Bank employees keen on early start to wage talks, says BEFI leader

Bank employees numbering several lakh, across public, regional rural and old generation private banks in the country, are keen on an early start to the next round of wage negotiations between the unions that represent the workforce and Indian Banks’ Association (IBA).

“Wage revision is due since November 2022. Since the last, 11th bipartite settlement effective November 2017 (reached in November 2020), we observe banks are not smoothly authorising IBA to start negotiations,” General Secretary of the Bank Employees’ Federation of India (BEFI) Debasish Basu Chaudhury said in an interaction.

While some banks delay their mandate to IBA, a few authorise the association to negotiate only up to a particular payscale as beyond that, they desire to have their own arrangements with the officers, he said, adding this time too when the unions insisted on launch of discussions, IBA said most banks were yet to give their mandate. “A few days ago, the United Forum of Bank Unions had urged IBA to start negotiations pending whatever mandate. This is where we are standing,” he said. In the last settlement, a 15% pay increase formed the core of the agreement.

Five-day week

Mr. Chaudhury, who was in Hyderabad for BEFI Telangana unit’s second conference recently, said the delay in wage talks is not the only concern as the bank workforce is also awaiting implementation of a five-day week in banks agreed at the last bipartite settlement.

The five-day week — with all Saturdays being holidays as against the second and fourth now — was a long-standing demand of unions and came in the backdrop of the employees and officers hard-pressed amid changes in government policies. Their numbers have reduced drastically and non-banking business such as mutual funds, insurance have increased and targets for the same set for employees. A reduction in number of banks has also meant closure of thousands of branches 2019 onwards. With the workforce logging more hours daily, work-life balance has become more important than before, he said, pointing out to how Central, many State governments as well as stock exchanges follow a five-day week.

The bank unions have already authorised IBA to increase work hours by 40 minutes a day to compensate for the time reduced on account of all Saturday holidays. The proposal is before the Centre with an understanding that the Finance Ministry will discuss it with other stakeholders. He expressed confidence that all concerned will consent, especially alternative banking delivery channels becoming popular.

Besides better wages and other demands of employees, BEFI is fighting for strengthening of banks, including RRBs and those private, measures to safeguard public money and opposed to privatisation of banks, he said.

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Bank officers’ union launches nationwide movement against privatisation

Bank officers’ union on Tuesday launched nationwide movement against proposed privatisation of stat-owned lenders. ‘Bank Bachao Desh Bachao Rally’ was held at New Delhi’s Jantar Mantar on Tuesday attended by officers and other stakeholders from various parts of the country, the All India Bank Officers’ Confederation (AIBOC) said in a statement.

Addressing the rally, AIBOC General Secretary Soumya Datta appealed to the government to withdraw the Banking Laws (Amendment) Bill, 2021, which has been listed for introduction and passing in the winter session of Parliament.

“In case the government tables and passes the bill paving the way for the privatisation of the public sector banks, the bank officers will unite all the stakeholders of the banking sector and launch a nationwide agitation,” he said, urging the bankers to draw inspiration from the farmers movement.

Finance Minister Nirmala Sitharaman while presenting Budget 2021-22 earlier this year had announced the privatisation of public sector banks (PSBs) as part of disinvestment drive to garner Rs 1.75 lakh crore. The Banking Laws (Amendment) Bill, 2021, to be introduced during the session is expected to bring down the minimum government holding in the PSBs from 51 per cent to 26 per cent.

In the last concluded session, Parliament passed a bill to allow privatisation of state-run general insurance companies. The General Insurance Business (Nationalisation) Amendment Bill, 2021, removed the requirement of the central government to hold at least 51 per cent of the equity capital in a specified insurer.

The Act, which came into force in 1972, provided for the acquisition and transfer of shares of Indian insurance companies and undertakings of other existing insurers in order to serve better the needs of the economy by securing the development of general insurance business.

Government think-tank NITI Aayog has already suggested two banks and one insurance company to Core Group of Secretaries on Disinvestment for privatisation. According to sources, Central Bank of India and Indian Overseas Bank are likely candidates for the privatisation.

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Bank unions given call for two-day nationwide strike against proposed privatisation of PSBs

 

The United Forum of Bank Unions (UFBU), an umbrella body of nine unions, has given a call for a two-day strike from December 16 to protest against the proposed privatisation of two state-owned lenders. In the Union Budget presented in February, Finance Minister Nirmala Sitharaman had announced the privatisation of two public sector banks (PSBs) as part of its disinvestment plan.

The government has already privatised IDBI Bank by selling its majority stake in the lender to LIC in 2019 and merged 14 public sector banks in the past four years.

The government has listed the Banking Laws (Amendment) Bill, 2021, for introduction and passage during the current session of Parliament.

In view of this, UFBU has decided to oppose the move for privatisation, All India Bank Employees Association (AIBEA) General Secretary C H Venkatachalam said in a statement.

Strike notice for December 16 and December 17, 2021, has been served by UFBU on the IBA, he said.

Hence, he said, for the past 25 years, under the banner of UFBU "we have been opposing the policies of banking reforms which are aimed at weakening public sector banks".

Members of UFBU include All India Bank Employees Association (AIBEA), All India Bank Officers' Confederation (AIBOC), National Confederation of Bank Employees (NCBE), All India Bank Officers' Association (AIBOA) and Bank Employees Confederation of India (BEFI).

Others are Indian National Bank Employees Federation (INBEF), Indian National Bank Officers Congress (INBOC), National Organisation of Bank Workers (NOBW) and National Organisation of Bank Officers (NOBO).

In a developing country like India, where banks deal with huge public savings and they have to play a leading role to ensure broad-based economic development, public sector banking with social orientation is the most appropriate and imperative need, he said.

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Minutes of Discussion between IBA &Workmen Unions on 10th Dec

Discussion between IBA &Workmen Unions 

A discussion between the Negotiating Committee of IBA and Workmen Unions (except BEFI) took place today in Mumbai. The meeting was held to discuss residual issues of Common Charter of Demand.  A supplementary minutes of today’s discussions is also available in social media.

We  observe from the minutes that two of the sensitive issues, among others, centring round which we took stand not to sign the MoU on 22nd July 2020, have been placed at the top of list for discussion. These are 5 day week and updation of pension. We feel that these issues should have been discussed with due importance and finalised while inking 11th BPS.

So far 5 day week is concerned, on the day of MoU, from BEFI we sought IBA's view on this. The negotiating committee remained silent on that day. The then Chairman of IBA told in an earlier meeting that IBA is not in favour of 5 day week as bank employees of our country are already enjoying more leaves comparing with other countries of the world. The stand of IBA seems to be unchanged as they reiterated their view unambiguously in today’s meeting also. We understand that so long IBA doesn’t change their stand on this matter, the issue is not likely to be referred to other stake holders.

In regard to periodical updation of pension on the occasions of wage revision and updation of pension for existing pensioners, the IBA is maintaining their self contradictory position. It is mentioned in the Minutes as comments/response of IBA that the current details of the Pension Fund in various Banks are being collected and based on these details, actuarial working also needs to be done. The IBA, all along the negotiation process, had been claiming that updation of pension require huge amount of money. When details of Pension Fund of all banks are not available with IBA, how they calculated fund requirement we wonder. Moreover, details of Pension Funds of most of the banks are available to different retiree organizations obtained through Right to Information which were duly forwarded to IBA. It is IBA who are finding difficulties to get the details from their member banks which are undergoing audit every year. 

Secondly, the IBA during negotiation proposed for ad hoc increase and that too in phases starting with the earlier pensioners. The idea of truncated revision of pension has been reiterated in today’s Minutes wherein it is mentioned that, IBA is quite sympathetic to the issue, especially revision in pension for those who have retired under earlier Settlement periods when the emoluments were relatively lesser than at present. While we also feel that the amount of pension of the employees/officers retired during earlier settlements are very low but this idea has been mooted to create  division among the pensioners which  should not be allowed. Our struggle must continue for updation for all as had been done recently in RBI and no ad hoc increase, the pension is to be revised in RBI pattern.

Comrades, we must not lose our focus on other important issues. Along with 5 day week and updation/revision of pension in RBI pattern, our endeavour should remain for scrapping of NPS and extension of defined benefit pension scheme to all. 

We are going to lodge our strong protest against engagement of Apprentices in large scale by SBI, which has also declared a VRS scheme targeting as many as 30000 employees/officers. The banks are recruiting inadequate number of employees; more and more routine jobs are being outsourced. We seriously consider that need of the hour is sustained joint movement in the industry under the banner of United Forum of Bank Unions (UFBU). We shall take necessary initiative in that direction.

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This Bank Union announced 'No Levy from the Members'

Canara Bank Officers Organization (CBOO) has announced that they would not charge any levy from any of their members for 11th Bipartite Wage Settlement. They had not charged the levy in previous settlement also.

The 11th BPS Wage revision was finalized on 11th Nov 2020 with three years delay.

This is really a very appreciating step and eye opener for other unions, many of them have already announced a hefty levy from their members. 

Many of the members have shown their displeasure in collecting the levy by the unions post 11th BPS settlement. There is no point of collecting monies for the common cause. 11th BPS Wage settlement is the common cause and the expenses can be adjusted towards the monthly collection. 

It pinches if the demands of the members are not fulfilled. The major demands of the bankers like 5 days banking or 20% hike were not at all considered and fulfilled by the banker Unions.

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Bank Strike: Many PSU Banks to Remain Closed Across India on November 26

 

If you have any work pending at your bank, make sure to do it today because most public sectors banks across India are planning to go on strike on Thursday i.e. November 26. Many banks have also issued an alert message to their customers through social media. Banks will resume their services on the next day i.e. November 27. After this, banks will be closed again on November 29 due to fourth Saturday and on November 29, Sunday. Also Read - Finance Minister Asks Banks to Ensure All Accounts Are Linked to Aadhaar by March 2021

Issues & Demands 

1. In support of the call of National Convention of Workers organized by by Central Trade Unions on 7 points common demands and

2. Demanding

• Stop moves of privatization of banks
• Strengthen public sector banks 
• Take tough action against loan defaulters
• Recover the huge corporate NPAs
• Increase interest rate on bank deposits
• Stop outsourcing of regular banking jobs
• Make adequate recruitment in banks
• Scrap new pension scheme for bank employees
• DA linked pension for all bank employees including Co-op bank employees 
• Revitalize and Strengthen Co-op banks and RRBs

Will digital transactions work?

The 26 November strike will not affect digital transactions and users can still conduct transactions through NetBanking or Mobile Banking. At the same time, you can withdraw money from ATMs.

Why has the strike being called?

The strike has been called against the anti-labour policies of the central government. The All India Bank Employees’ Association (AIBEA) on Tuesday said it would be joining the one-day nationwide strike on November 26 called by central trade unions to protest against the government’s anti-labour policies. Ten central trade unions, except Bharatiya Mazdoor Sangh, will observe a nationwide general strike tomorrow.

“The Lok Sabha in its recently held session has passed three new labour enactments by dismantling existing 27 enactments in the name of ‘Ease of Business’, which are purely in the interest of corporates. In the process, 75 per cent of workers are being pushed out of the orbits of labour laws since they will have no legal protection under the new enactment,” the AIBEA said in a release.

Which banks will remain closed?

Notably, AIBEA represents most banks except State Bank of India and Indian Overseas Bank. It has four lakh bank employees from various public and old private sector and a few foreign banks as its members. In Maharashtra, around 30,000 bank employees from 10,000 bank branches of public sector banks, old generation private sector banks, regional rural banks and foreign banks are observing the strike, AIBEA release said.

The union said bank employees on November 26 will also focus on their demands such as opposition to bank privatisation, opposition to outsourcing and contract system, adequate recruitment, stern action against big corporate defaulters, increase in rate of interest on bank deposits and reduction in service charges.

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Bank officers' unions blame IBA for derailing wage negotiation process

Four bank officers' unions led by All India Bank Officers' Confederation (AIBOC) on Sunday blamed the Indian Banks' Association (IBA) for derailing finalisation of the wage revision process for over four lakh bank officers under the recent wage settlement announced in July this year.

The other three officers' unions are All India Bank Officers' Association (AIBOA), Indian National Bank Officers' Congress (INBOC), and National Organisation of Bank Officers (NOBO). After three years of intense negotiations, bank employees' unions and IBA, on July 22, agreed for an annual wage hike of 15 per cent, which would be applicable from November 1, 2017.

All the parties were required to finalise the wage settlement within a period of ninety days from July 22, 2020. "On October 17 abruptly without any rhyme or reason, IBA informed their inability to conclude and ink the joint note pertaining to officers' wage revision with effect from November 1, 2017. The lame reason cited by them was not signing the costing exercise with the workmen unions," AIBOC said in the release.

The IBA could not be reached for a response. AIBOC in a release said representatives of bank officers' unions and the IBA met on August 24th, September 10th and October 12th to conclude the wage revision process for bank officers. Both the parties again met on October 15th and 16th to finalise the wage revision process, the release added. It was mutually agreed that the signing ceremony would be held on October 18, it further said.

Following the delay in finalising the wage revision process, the four bank officers' unions have asked their members for withdrawing extra cooperation to the banks management, restricting work up to 6 pm, avoiding official work on Sundays and holidays. The new wage revision would entail an additional yearly outgo of Rs.7,898 crore for the banks. Out of the total corpus, Rs.4,513 crore was the share of officers to be distributed under various heads for the benefit of all officers, the release said.

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Bank unions to push for salary hike ahead of Diwali

Nine bank unions representing nearly 14 lakh employees are set to make a strong push for an early agreement on the issue of wage revision in the crucial meeting with the management ahead of Diwali. A revision in the salary and wages of bank employees has been due since November 2017, however, it could not be agreed upon despite 30 meetings over the issue since July 2017. The October 17 meeting in Mumbai is crucial as it comes on the heels of Modi government’s big decision to merge 6 PSU banks with 4 larger ones, which was vehemently opposed by the bank unions. According to the industry sources, though a 12% average hike in salary was in principle agreed upon in the last month’s meeting, however, finer details are yet to be worked out.

“In the last meeting held on September 17, 2019 an offer of 12% increase in pay slip component was made by the negotiating committee besides other things,” said the Indian Banks’ Association in a letter to the bank managements as it recommended payment of one month’s salary (basic plus DA) to bank staff as an ad hoc payment ahead of festival season.

Why a pay revision in banking sector is stuck

Unlike the central government and state government employees that are covered under the pay commission, salary and wage revision in the banking sector takes place through a wage revision settlement between the workers and management. However, unlike the pay commission that is constituted every 10 years, the wage revision agreement in the banking industry is valid for five years only.

The last pay revision in the banking sector took place in November 2012, though it was implemented in 2015 but the effective date of implementation was November 2012 and the five year period ended in November 2017. This will be t11th wage revision settlement between bank employees and management but it is pending for the last 2 years.

The issue of merger of DA with basic

This wage revision is crucial as a part of the dearness allowance that is paid to bank staff is expected to be merged in the basic salary in this round of settlement.

“Merger of DA with the basic salary is due and it has been almost decided that 47.80% of the DA applicable in November 2016 will be merged with the basic salary of bank staff,” Ashwani Rana, General Secretary of Delhi Pradesh Bank Workers Organisation, told Financial Express Online.

The remaining component of dearness allowance (DA) to be paid to bank staff will be decided afresh by taking reference to the DA applicable in November 2016.

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Bank Union differed two-day strike on September 26, 27

The proposed two-day bank strike, called by four bank unions following the recent government announcement on amalgamation of 10 public sector banks into four, has been called off.

The decision was taken after members of the bank association on Monday met the Finance Secretary and were assured of a positive solution on their demands.

Two two-day strike, to be held on September 26 and September 27, and followed by two-day weekend, i.e. Saturday and Sunday, was called by banking unions- All India Bank Officers' Confederation (AIBOC), All India Bank Officers' Association (AIBOA), Indian National Bank Officers' Congress (INBOC), National Organisation of Bank Officers (NOBO).

The banking unions have threatened to go on a strike following to protest against the merger. In a statement, the AIBOC said that the unions in the banking sector were opposed to the merger of banks. The officials asserted that the organization is protesting for the interest of the general public.

Among other demands, the unions are also seeking the immediate introduction of five-day a week in full and reduction of cash transaction hour and regulated working hours.

Finance Minister Nirmala Sitharaman had on August 30 announced that Punjab National Bank, Oriental Bank and United Bank will be merged to become the second-largest PSU Bank in India. Canara Bank and Syndicate Bank will be merged into one entity to be 4th largest PSB, while Union Bank of India, Andhra Bank and Corporation Bank will be amalgamated into a single entity to be the 5th largest PSB; and Indian Bank and Allahabad Bank will become one entity to be the 7th largest PSB.

The Finance Minister further said that the Bank of India and Central Bank of India would remain independent. After the amalgamation, only 12 PSBs will be left in India from the 27 earlier.

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Effect of 2 days strike call from Bank Officers Union

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4 Bank Unions give notice for strike in September

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Bank unions revise demands, to seek pay rise of 20% at IBA talks

The United Forum of Bank Unions (UBFU) has said it will seek a 20 per cent pay hike when talks resume with the Indian Banks’ Association (IBA) on August 29 to seal the 11th bipartite wage settlement.

The key reason behind UBFA’s revised demand from the 15 per cent earlier is that the gap between what bank employees earn when compared to those in the government’s equivalent grade has widened. It was pointed that even after a 20 per cent pay hike, this difference will stand reduced only at the beginning of the scale, but it will still be at about half of the same at the ...

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Next date of wage revision meeting of bank union with IBA decided

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Bankers' issues represented by AIBEA to Finance Minister for framing budget 2019-20

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Salary of Bankers if Settlement decide on 12% - AINBOF circular

 

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Crack within UFBU may affect wage revision talks

A major crack has surfaced between bank officers and workmen unions over the issue of wage settlement, threatening to hamper the 11th bipartite negotiation. 

The United Forum of Bank Unions (UFBU) -- the umbrella body of nine trade unions -- which holds wage revision talks on the behalf of their members with the Indian Banks' Association (IBA), is even facing a split if the matter is not resolved fast. The two of the officers organisations abstained from the negotiation table in the last round of talks. 

The fight erupted between UFBU members following an IBA proposal of bank-wise wage settlement for senior officers from scale IV and above. Six banks -- State Bank of India, Bank of Baroda, Indian Bank, Oriental Bank of Commerce, Punjab National Bank and Union Bank of India -- have mandated IBA to restrict the wage rise offer to officers up to scale III. These banks proposed to fix compensation for their senior officers independent of the bipartite negotiation, and based on their paying capacity. 

In other words, these banks with better financials than the rest have shown willingness to offer higher remuneration package to their officers -- from chief managers to general managers. 

The 21 public sector banks employ over 10 lakh people. About 3.5 lakh are officers with about 60-65% of them being from these six banks. However, about 90% of the officers in all banks taken together fall in the scale I to scale III category. 

Protesting against the split mandate to IBA, the All India Bank Officers Confederation (AIBOC) -- the largest officers’ organization -- abstained from the last negotiation talks held on February 2 in Mumbai. At that meeting where two other bank officers unions were present, IBA raised its wage increase proposal to 10% from the previous 8% offer. AIBOC had walked out of the negotiation table on November 30 as well. 

“We want expeditious settlement of wages. We have appealed AIBOC leadership to return to the negotiation table,” AIBEA president Rajen Nagar told ET on Thursday. 

“If AIBOC does not return to the table, then workmen need to take a view of the situation. We cannot wait indefinitely,” Nagar said. 

Earlier, AIBOC criticized AIBEA general secretary CH Venkatachalam for reportedly inciting a split within UFBU. 

“He (Venkatachalam) has stated that the present offer of IBA is more in quantitative terms than the quantum paid in the 10th bipartite settlement. He has also said the officers’ associations are creating impediment to the settlement. We strongly denounce unilateral pronouncement of one constituent of UFBU on the merit of the present offer of IBA which is very likely to jeopardize the ongoing negotiation,” AIBOC general secretary Soumya Datta had said last Saturday. 

"We seek your immediate intervention at this critical juncture so that the edifice of joint movement do not suffer," Datta said in a letter to UFBU. 

National Organisation of Bank Officers (NOBO) also did not take part at the February 2 meeting while All Indian All India Bank Officers Association (AIBOA) and Indian National Bank Officers Congress (INBOC) were present. 

“His (Venkatachalam’s) statement has been distorted. He has only narrated the truth at a union meeting in Kanpur,” AIBEA’s Nagar said. “The fact remains that we have rejected IBA’s 10% offer,” he said. 

The 11th bipartite settlement is due from November 1, 2017.  

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IBA & Bank union meeting for 11th Bipartite Settlement on 02nd Feb- updates

Another round of Bipartite Talks was held today in Mumbai between IBA and our 5 Workman Unions.

Also Read - Charter of Demands for 11th Bipartite Wage Revision

Also Read - 11th BPS Wage Settlement : Expected New Basic Pay for bankers

Issues which were discussed in the meeting 
 • Transportation of personal effects by train or road while on transfer from one station to another: Some improvements would be considered looking to entitlement of officers. 

• Increase in Breakage Allowance while on transportation of personal effects: agreed to increase the existing entitlement by 10% for both With Receipt Basis and Declaration Basis. 

• Festival Advance to employees – increase in quantum: Agreed to finalise it by discussion in the main negotiating committee and recommend to the Government. 


• Problems of Ex-servicemen employees in fitment, etc: Government guidelines from the Finance Ministry are being implemented. Circular with FAQ will be prepared and sent to all Banks for proper implementation of the Government guidelines. 

• Definition of family for coverage under Group Medical Insurance Policy – Any two of parents or parents-in-law to be covered: Matter will be taken up with United India Insurance Company. 

• Privilege Leave taken on sick grounds where sick leave is exhausted should not be counted as an occasion in the entitlement of 4 occasions in an year: Agreed. 

• Maternity Leave can be availed in combination and continuation of other kinds of leave: Agreed.

Follow up action in issues covered by Record Note on retirees issues dated 25-5-2015: 

• LFC for retired employees – IBA is not in favour. • Fixing the premium on medical insurance scheme for retirees – Separate discussions will be held with UFBU.

• Increase in Ex-Gratia Pension to pre-1986 retirees/spouses – will be recommended to Government. • Revision of Family Pension – will be discussed further in the full negotiating committee. 

• Updation of pension and periodical revision in pension along with wage revision for in-service employees - will be discussed further in the full negotiating committee. 

• Revision in DA on pension on quarterly basis like serving employees - will be discussed further in the full negotiating committee. 

• Allocation of fund for Staff Welfare Schemes based on Operating Profits instead of Net Profit – matter has been recommended to Government and their decision is awaited.


Issues relating to Disciplinary Action and Procedure:

• These issues were discussed in a Small Committee of IBA and Workman Unions. The gist of the discussions, the issues raised by us and their response are given below: 

• Eligibility for claiming TA/DA by the Defence Representatives for attending departmental enquiries held outside the State. ➢ Such claims will be sanctioned by Banks looking to the merits of the claims. 

• Improvement and enhancement in rates of Subsistence Allowance payable to employees on suspension. 
➢ Matter will be discussed further in the Full Negotiating Committee 

• Indiscriminate use of Clause 5(j) relating to acts alleged as prejudicial to the interest of the Bank
➢ “Doing any act prejudicial to the interest of the Bank” will be included under Minor Misconduct as a new Clause 7(q).

• Clarification with regard to provision of Clause 6(e) of Settlement dt 10-4-2002 i.e. bringing down by two stages in the scale of pay 

➢ The specific period of rigour shall be mentioned in the punishment order. It can be for a maximum of 2 years without cumulative effect and annual increment/stagnation increment falling due during the rigour period will be released on respective due dates. 

Clarification to be given that acts of minor misconducts clearly enumerated under Clause 7 of Settlement dated 10.4.2002 should not be brought as major misconduct under Clause 5. ➢ Unions’ contention is agreed upon. 

• Multiple charges for one incident should not be made out. 

➢ Multiple charges, as per the procedural lapses, can be made for one incident. However, punishment given shall be only one.

• Punishment order by the Disciplinary Authority not to be implemented till the final disposal of Appeal by the Appellate Authority. 

➢ This proposal was not agreed to.

• Disciplinary action should not be taken after retirement quoting Pension Regulation as the same is not provided in Bipartite Settlement. 

➢ Issue needs to be discussed at Full Negotiating Committee 

• Awarding the punishment of stoppage of increments should be without affecting superannuation benefits, as in the case of Officers. 

➢ Disciplinary Authority may be given the discretion to decide whether the punishment will affect superannuation benefit or not. 

• Provision to be added for making an Appeal against suspension of employees 

➢ Suspension is not a punishment and hence this proposal cannot be accepted. 

• In cased of dismissal as punishment, there should be a Review Authority after Appellate Authority. ➢ Not acceptable.

• Imposing ‘Fine’ as punishment should be deleted from the list of punishments. 

➢ Agreed to recommend deletion to the Full Negotiating Committee

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150 million Indians to go on strike against Modi’s “anti-labour” policies

Daily life across India might come to a screeching halt as nearly 150 million employees across banks, public transport, factories, and government companies go on a two-day strike from tomorrow (Jan. 08).

The strike has been called by 10 trade unions across the country against what they believe are anti-labour policies of prime minister Narendra Modi’s government. Employees from the power, steel, auto, and financial services sector will participate in this “historic event.”

The strike will also be joined by farmers, who have been protesting against the agrarian crisis in the country for several months now.

“The government has been pursuing anti-economic and anti-labour policies which has forced us to go on this strike,” CH Venkatachalam, general secretary of the All India Banks Employees’ Association (AIBEA), one of the trade unions that is participating in the protest, told Quartz. “For instance, prices of commodities have been going up and even the essential goods are not available in fair price shops and the government doesn’t seem to be doing anything about it.”

Founded in 1946, AIBEA is India’s oldest and largest bank employees’ union with around 500,000 members.

Another reason for the protest is the fact that India is not creating enough jobs. Ahead of the last general elections, Modi’s Bharatiya Janata Party (BJP) had promised to create nearly 10 million jobs every year. Despite these tall claims, the employment scenario in the country is so dismal that in the last financial year the total number of employees in India came down, instead of going up.

Another sore point for the trade unions is that a large number of public sector companies are struggling, forcing the government to divest its stake in them or merge them with healthier ones. For instance, in November 2018, the cabinet approved the stake sale of government-owned Dredging Corporation of India to a consortium of four ports.

“The public sector companies have a lion’s share in the economy and therefore steps must be taken to strengthen them instead of privatising them as it may lead to various problems,” Venkatachalam said.

This is the second time in less than a fortnight that bank employees are going on a strike against bank mergers. In September last year, the government had announced the merger of Dena Bank with Vijaya Bank and Bank of Baroda (BOB), which will come into effect from April 01, 2019. Last month, nearly a million bank employees had observed a one-day strike against the merger. However, soon after the last strike, the cabinet approved the merger proving the strike to be futile.

In a filing to the stock exchanges, many banks have already said that the strikes this week may impact their services. “In the event of AIBEA and BEFI proceeding on strike on January 8-9, 2019, the functioning of bank’s branches/offices in some of the zones may be affected,” BOB informed the exchanges on Jan. 05.

This is a situation that has played out in India several times where it has been proven that strikes yield very little results apart from inconveniencing the general public.

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Today's meeting of IBA-UFBU for 11th Bipartite Settlement

NEGOTIATING COMMITTEE MEETING on 29.09.2018 at IBA Office, Cuffe Parade, Mumbai.

On behalf of IBA, the following officials attended the meeting.

1. Shri. R K Thakkar, Chairman of Negotiating Committee

2. Shri. Shyam Srinivasan, CEO, Federal Bank

3. Shri. Rajkumar Rai G, CEO, UBI

4. Shri. Prashant Kumar, DMD, SBI.

IBA team made it clear to Unions that Banks are not in a capacity to pay more than 6% hike in wages. IBA did not go beyond 6% offer they made during last Negotiating Committee Meeting.

Shri. Prashant Kumar, DMD of SBI gave power point presentation on a New formula devised by IBA.

Accordingly, all member banks are to be categorised in three (3) categories, i.e., A,B,C.

Categorisation will be based on certain parameters as revealed by individual bank’s Balance-sheets.

IBA says they ‘Desire Shift’ in pay outs by Banks. The intent of IBA is to allow each Bank to pay its employees as per the Bank’s capacity to pay. For building the capacity to bear the load of payment to staff, the individual Banks will have to perform to a certain level.

Traditional Practice was:

1. Wage revision every 5 years based on industry level Bipartite settlement.

2. Wage revision is based on negotiations not strictly linked to Banks’ performance.

Proposed Approach Intended is :

Adding an element of performance linked compensation over and above the settled pay structure.

It will be calculated as under:

A. A performance Linked Compensation will be incorporated:

i. The value will be over and above the increment as agreed in the Bipartite Settlement.

ii. Will be computed annually after declaration of annual financial results.

B. Payable amount shall be CONTINGENT upon achievement of established performance criteria by the Banks every year.

C. Key metrics chosen for defining organisational performance on following parameters.

• Operating Profit

• Return on Assets

D. Payout rate to be related to performance based Tiering, on chosen metrics.

For the FY 2017-18 the categorisation comes as under:

Operating Profit wise

A. Indian Bank, Vijaya Bank

B. NO BANK

C. NO BANK

Return of Assets

A. Indian Bank, VijayaBank

B. SBI

C. Bank of Maharashtra, Bank of Baroda, Canara Bank

This new shocking proposal of IBA is not acceptable by any PSU banker.

As per the indications by merging DA as on 01.11.2016 the present basics will be constructed and then loading will be applied.

Since, the new approach is intended by IBA, we are going to study their proposal in detail and then react to it by way of circular. But our stand is *“NOT ACCEPTABLE. There should be Uniform Pay in all Banks.

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