WHAT TO BE DONE TO THE BANKMEN
RBI governor has earnestly taken up the matter in the right time to set the things right.
First and foremost thing is to appoint a financial pay commission comprising of retired judge just like sixth pay commission for government employees with terms of reference covering the comparable wages prevailing in the country, nature and risk of the duties performed by them, wages as ratios of profitability, improving the profitability by increasing the spread at the same time by offering good rates to the depositors also. This point also RBI governor has made. There is no need for offering lowest rate to the poor retail depositors and senior citizen and offering loan at concessional rates to the industry lobby whose number in the forbe list is improving year by year. The companies can very well absorb some two or three percentage of high interest without eroding their profitability much. Growth /gdp will not get affected just because the corporate sector is going to absorb a few percentage point more.
AN IMMEDIATE RELIEF OF 20 % INCREASE IN BASIC SALARY ACROSS ALL LEVELS WITH THE SAME LEVEL OF INDEX IN LIEU OF Grade PAY, WITH HRA RATE AS APPLICABLE TO ,CENTRAL GOVERNMENT EMPLOYEES WILL ARREST THE POSSIBLE EXODUS FROM OFFICERS LEVEL AND DECENTLY QUALIFIED CLERICAL LEVEL TO OTHER AREAS NOT NECESSARILY TO BANKS AS THE WAGE THAT THEY ARE DRWAING IS PATHETICALLY LOW AFTER THIS REVISION ON A COMPARABLE BASIS.THIS WILL ALSO REDUCE THE TENDENCY TO TAKE VRS AND GOING FOR OTHER JOB.
IN CASE OF OFFICERS THE DIFFERENCE IS HUGE AS NO PERSON WITH HIGH INTELLIGENT ORDER AND WHO CAN GET A JOB EITHER IN PUBLIC SECTOR OR GOVERNMENT SHOULD FIND THE BANK JOB ATTRACTIVE AS OF NOW.THE DIFFERENCE IS MORE THAN 2 LAKHS ON CTC BASIS AT ENTRY LEVEL.
Retaining the existing employees by increasing the salary by 40% immediately as an interim pay and increase in HRA is most important as they have to deliver good stuff and train the manpower that may enter at the rate of 30 to 40 thousand on an annualized basis in the coming four to 5 years.
GOVERNMEENT CAN INSTRUCT IBA TO ABSORB THE NOTORIOUS FIGURE OF 1800 CRORES and give a relief to pensioners also.
Before 01.11.2012, the date of next wage revision the financial pay commission should submit its final recommendation that should bind on both parties. The interim pay should be adjusted from that date. IT can be synchronized with VII th pay commission afterwards. BIPARTITE SETTLEMENTS SHOULD BE GIVEN A BURIAL IMMEDIATELY IF GOVERNMENET IS REALLY CONCERNED WITH THE GROWTH OF FINANCIAL SECTOR. The present set of committee will not recommend any increase as they are not having positive mindset to improve the conditions of bank employees. NO RESULT WILL COME FROM THEM INSTEAD THEY SUGGEST SOME IMPRACTICABLE THINGS WHICH MAY BENEFIT ONLY FEW THOUSANDS AND NOT TO ALL. They are not inclinations to do things . If they are, then the recently concluded settlement should be totally different and there is no need for RBI governor to interfere. He did so because of his genuine interest in the growth of the interest being the head of the central bank of the country. The same type of wisdom/concern was not there either with the banking division of finance ministry /IBA . The political leadership were kept totally dark as bank unions/IBA were not in a position to convince the PM who himself played a role in shaping the financial system and also our senior most FM from whom bank men expected liberalized wage /pension package /full neutralization of DA to old pensioners and pension up dation .
AT LEAST GOD CAN SHOW SOME MERCY THROUGH RBI GOVERNOR AND LET THE BANK EMPLOYEES/PENSIONERS ALSO CAN DERIVE IMMEDIATE BENEFIT LIKE TWO TO 3 CRORE CENTRAL/STATE /PUBLIC SECTOR AND OTHER SECTOR OF EMPLOYEES WITH GOVERNMENT ASSISTANCE.
K BALASUBRAMANIAN RETIRED SENIOR MANAGER UNDER VRS
PENSION OPTEE
Sunday, October 3, 2010
Wednesday, April 14, 2010
PENSION DRAFT AGREEMENT ANALYSIS
ANALYSIS OF PENSION RELATED CIRCULAR OF VARIOUS UNIONS DT 13.04.2010
RETIRED PF OPTEES They have to pay 56% of additional amount that they have received for getting pension. .The figure 56 is nothing but interest for 7 years at the simple rate of 8% aiming the bulk VRS pf optees of 2001 and assume that the pension pay out date may oscillate between 01.04.20008 and 01.04.2010 depending on who is going to convince whom ie UFBU AND IBA .The draft has cleverly avoided the WORD INTEREST because the moment you say that they have to pay interest on their accumulation they may be notionally entitled for pension from the date of their retirement at least for argument sake which nobody is interested.to give. Since the vrs 2001 scheme was a golden handshake scheme which union opposed at that time and because of the pressure only they have taken the pension cause now, no better package can be expected. They can keep this 56 % figure only for those retired under vrs 2001 scheme with pf option with exgratia amount.because at that time amount of pf received also was less
MODIFICATION TO BE DONE
The figure should be reduced proportionately for the normal retired pf optees after 2001 vrs scheme OR they can arrive the figure with the base date of effect of pension settlement and the date of retirement @ 8% p.a by going on the reverse direction subject to a maximum of seven years without calling it as interest and calling it as a lump sum amount for filling the gap in pension fund. No justification for a retired normal pf optee of say 2005 paying a much higher amount with increased accumulations than a person of 2001 retiree .
For a pf optee retired on or after 01.11.2007 recovery of 56% is highly inhuman and totally un accepatable .They should be asked to return the PF received with simple interest of 8% p.a from the date of retitrement in the same method suggested above.
EXISTING PF OPTEES AND PENSION OPTEES: Since mou itself says that one more pension option to be given to those who has not opted earlier , legally the pf optees are getting that chance to become member of the pension fund. EXCEPT THAT THEY HAVE NOT OPTED PENSION EARLIER, NO LINE CAN BE DRAWN BETWEEN TWO SERVING EMPLOYEES SAY A AND B OPTED FOR PENSION EARLIER AND THE OTHER PERSON WANTS TO OPT NOW. THE OUTFLOW OF FUNDS FROM BOTH CASES TO THE BANK BY WAY OF PF SUBSCRIPTION IS IDENTICAL.
IN RBI WHERE ONE MORE OPTION WAS GIVEN EVERYBODY WAS TREATED IDENTICAL ONLY.
So to avoid legal complications the UFBU/IBA combine has adopted the easy method of recovering money from the existing serving employees whether pf or pension opted to contribute equally to the GAP IN PENSION FUND. Since our pension regulations provide for arriving the deficit and to be provided they are adopting it now as per the MOU. Whether such sharing is correct or not is a different issue. Having agreed for 1800 crores that has to be done in a less combursome way by taking into account legal angle also.
SUGGESTUION TO UFBU
The recovery clause should be modified as follows
The amount repayable is to be arrived as the number of completed years that the PF bank portion is in the hands of the retirees and the factor is simple rate of 8% p.a. THEY NEED NOT CALL AS INTEREST IF THEY FEAR LEGAL COMPLICATION . LET THEM CALL IT AS A FACTOR FOR ARRIVING TO FILL THE GAP IN PENSION FUND.
THIS ONLY WILL GIVE JUSTIFICATION.
LET THEM IMPLEMENT THE PENSION AGREEMENT WEF THE RESPECTIVE RETIREMENT DATE WITH MONETARY BENEFIT FROM 01.04.2008 OR 01.04.2009 ETC. THIS WILL MAKE THE PF OPTEES TO GET IN TO THE PENSION FOLD FROM THEIR RETIREMENT DATE. SINCE THEY ARE CHARGING EXORBITANT AMOUNT LIKE CAPITATION FEE FOR GIVING PENSION, THE COMMUTATION CAN BE FROM THE NOTIONAL DATE OF RETIREMENT WITH 15 YEARS PERIOD ALSO DETERMINED FROM THAT DATE AND THE RECOVERIES FROM THE DATE OF RETIREMENT TO THE DATE OF EFEFCT CAN ALSO WE WAIVED. THIS PACKAGE ONLY WILL HAVE SOME MEANING FOR THE RETIRED PF OPTEES.
FUTURE PENSION DETERMINATION. : ANY OTHER PENSION IMPROVEMENT OTHER THAN 100% DA NEUTRASLISATION TO PRE 01.11.2002 RETIREES AND ROUTINE DA INCREASE ,SHOULD IN FUTURE COVER THESE RETIRED PENSION OPTEES ALSO FOR THE PURPOSE OF EQUITABLE RECOVERY AS THEIR NUMBER BECOME SLOWLY MOVING UP IN THE YEARS TO COME.BECAUSE OUR FUNDS ARE COMING FROM BANK PROFITABILITY AND NOT CONSOLIDATED FUND OF INDIA. HENCE IT IS BETTER TO REQUEST IBA TO RELEASE 100% DA TO PRE 01.11.2002 RETIREES. NOW ITSELF.
NOW THAT ALL EMPLOYEES BEARING A FEW HUNDREDS WHO MAY CONTINUE WITH PF OPTION IF AT ALL,MAY BECOME MEMBER OF THE PENSION FUND, THE REPRESENTATIVES OF THE RETIREES ASSOCIATION SHOULD ALSO BE CALLED FOR FUTURE DISCUSSION AND SERVING EMPLOYEES ALONE CAN NOT BE ASKED TOBEAR THE LOAD OF FUTURE ACTUARY AMOUNT ARRIVED.IF UPDATION OR INDEXATION TOOK PLACE.
EFFORTS SHOLD BE MADE TO IMPROVE HRA TO 30% / INTRODUCTION OF GRADE PAY AND OTHE R ALLOWANCES TO THE EXISTING SERVING STAFF AT LEAST FROM 01.11.2012 WITHOUT GOING FOR MERGER OF BASIC EXCEPT RECTIFYING THE ANOMALIES ARISING NOW BY RESTRUCTURING THE PAY SCALES AT THE \SAME INDEX LEVEL. LET THE SERVING EMPLOYEES DRAW INCREASED WAGES TO THE TUNE OF 30 TO 40% IN NON PENSIONABLE AREAS LIKE HRA, EDUCATION ALLOWANCE. TRANSPORT ALLOWANCE ETC. WHICH WILL ACT AS A DISINCENTIVE TO TAKE VRS UNLESS AND OTHERWISE THEY ARE IN APOSITION TO MANAGE FAMILY ON THEIR OWN WITHOUT MUCH SALARY.
ACCEPT NOW IBA S TERMS AND SIGN THE SETTLEMENT AS THIS NINETH BIPARTITE THE MAIN FOCUS IS SECOND PENSION OPTION SAVING 2.6 LAHS EMPLOYEES.
.VIGOROUSLY FIGHT FOR RESIDUAL PENSION ISSUES AFTER IMPLEMENTING THE 9 TH BIPARTITE. STUDY TH E IMPACT OF THE LOAD. THE MOMENET THE BALANCE SHEET OF 31.03.2011 WAS FINALISED PREPARE A VERY GOOD CHARTER OF DEMANDS AND FIGHT AND IMPLEMENT WEF 01.11.2012. DON’T BRING MUCH COMPONENT WHICH WILL HAVE PENSION BEARING EFFECT . LET IT BE TAKEN CARE OF AFTER 01.11.2017 BY TAKING CLUE FROM THE GOVERNMENT AND THE FUTURE SCENARIO OF BANKING GROWTH IN THE YEARS TO COME.
K BALASUBRAMANIAN RETIRED SENIOR MANAGER VRS 2001 PENSION OPTEE
RETIRED PF OPTEES They have to pay 56% of additional amount that they have received for getting pension. .The figure 56 is nothing but interest for 7 years at the simple rate of 8% aiming the bulk VRS pf optees of 2001 and assume that the pension pay out date may oscillate between 01.04.20008 and 01.04.2010 depending on who is going to convince whom ie UFBU AND IBA .The draft has cleverly avoided the WORD INTEREST because the moment you say that they have to pay interest on their accumulation they may be notionally entitled for pension from the date of their retirement at least for argument sake which nobody is interested.to give. Since the vrs 2001 scheme was a golden handshake scheme which union opposed at that time and because of the pressure only they have taken the pension cause now, no better package can be expected. They can keep this 56 % figure only for those retired under vrs 2001 scheme with pf option with exgratia amount.because at that time amount of pf received also was less
MODIFICATION TO BE DONE
The figure should be reduced proportionately for the normal retired pf optees after 2001 vrs scheme OR they can arrive the figure with the base date of effect of pension settlement and the date of retirement @ 8% p.a by going on the reverse direction subject to a maximum of seven years without calling it as interest and calling it as a lump sum amount for filling the gap in pension fund. No justification for a retired normal pf optee of say 2005 paying a much higher amount with increased accumulations than a person of 2001 retiree .
For a pf optee retired on or after 01.11.2007 recovery of 56% is highly inhuman and totally un accepatable .They should be asked to return the PF received with simple interest of 8% p.a from the date of retitrement in the same method suggested above.
EXISTING PF OPTEES AND PENSION OPTEES: Since mou itself says that one more pension option to be given to those who has not opted earlier , legally the pf optees are getting that chance to become member of the pension fund. EXCEPT THAT THEY HAVE NOT OPTED PENSION EARLIER, NO LINE CAN BE DRAWN BETWEEN TWO SERVING EMPLOYEES SAY A AND B OPTED FOR PENSION EARLIER AND THE OTHER PERSON WANTS TO OPT NOW. THE OUTFLOW OF FUNDS FROM BOTH CASES TO THE BANK BY WAY OF PF SUBSCRIPTION IS IDENTICAL.
IN RBI WHERE ONE MORE OPTION WAS GIVEN EVERYBODY WAS TREATED IDENTICAL ONLY.
So to avoid legal complications the UFBU/IBA combine has adopted the easy method of recovering money from the existing serving employees whether pf or pension opted to contribute equally to the GAP IN PENSION FUND. Since our pension regulations provide for arriving the deficit and to be provided they are adopting it now as per the MOU. Whether such sharing is correct or not is a different issue. Having agreed for 1800 crores that has to be done in a less combursome way by taking into account legal angle also.
SUGGESTUION TO UFBU
The recovery clause should be modified as follows
The amount repayable is to be arrived as the number of completed years that the PF bank portion is in the hands of the retirees and the factor is simple rate of 8% p.a. THEY NEED NOT CALL AS INTEREST IF THEY FEAR LEGAL COMPLICATION . LET THEM CALL IT AS A FACTOR FOR ARRIVING TO FILL THE GAP IN PENSION FUND.
THIS ONLY WILL GIVE JUSTIFICATION.
LET THEM IMPLEMENT THE PENSION AGREEMENT WEF THE RESPECTIVE RETIREMENT DATE WITH MONETARY BENEFIT FROM 01.04.2008 OR 01.04.2009 ETC. THIS WILL MAKE THE PF OPTEES TO GET IN TO THE PENSION FOLD FROM THEIR RETIREMENT DATE. SINCE THEY ARE CHARGING EXORBITANT AMOUNT LIKE CAPITATION FEE FOR GIVING PENSION, THE COMMUTATION CAN BE FROM THE NOTIONAL DATE OF RETIREMENT WITH 15 YEARS PERIOD ALSO DETERMINED FROM THAT DATE AND THE RECOVERIES FROM THE DATE OF RETIREMENT TO THE DATE OF EFEFCT CAN ALSO WE WAIVED. THIS PACKAGE ONLY WILL HAVE SOME MEANING FOR THE RETIRED PF OPTEES.
FUTURE PENSION DETERMINATION. : ANY OTHER PENSION IMPROVEMENT OTHER THAN 100% DA NEUTRASLISATION TO PRE 01.11.2002 RETIREES AND ROUTINE DA INCREASE ,SHOULD IN FUTURE COVER THESE RETIRED PENSION OPTEES ALSO FOR THE PURPOSE OF EQUITABLE RECOVERY AS THEIR NUMBER BECOME SLOWLY MOVING UP IN THE YEARS TO COME.BECAUSE OUR FUNDS ARE COMING FROM BANK PROFITABILITY AND NOT CONSOLIDATED FUND OF INDIA. HENCE IT IS BETTER TO REQUEST IBA TO RELEASE 100% DA TO PRE 01.11.2002 RETIREES. NOW ITSELF.
NOW THAT ALL EMPLOYEES BEARING A FEW HUNDREDS WHO MAY CONTINUE WITH PF OPTION IF AT ALL,MAY BECOME MEMBER OF THE PENSION FUND, THE REPRESENTATIVES OF THE RETIREES ASSOCIATION SHOULD ALSO BE CALLED FOR FUTURE DISCUSSION AND SERVING EMPLOYEES ALONE CAN NOT BE ASKED TOBEAR THE LOAD OF FUTURE ACTUARY AMOUNT ARRIVED.IF UPDATION OR INDEXATION TOOK PLACE.
EFFORTS SHOLD BE MADE TO IMPROVE HRA TO 30% / INTRODUCTION OF GRADE PAY AND OTHE R ALLOWANCES TO THE EXISTING SERVING STAFF AT LEAST FROM 01.11.2012 WITHOUT GOING FOR MERGER OF BASIC EXCEPT RECTIFYING THE ANOMALIES ARISING NOW BY RESTRUCTURING THE PAY SCALES AT THE \SAME INDEX LEVEL. LET THE SERVING EMPLOYEES DRAW INCREASED WAGES TO THE TUNE OF 30 TO 40% IN NON PENSIONABLE AREAS LIKE HRA, EDUCATION ALLOWANCE. TRANSPORT ALLOWANCE ETC. WHICH WILL ACT AS A DISINCENTIVE TO TAKE VRS UNLESS AND OTHERWISE THEY ARE IN APOSITION TO MANAGE FAMILY ON THEIR OWN WITHOUT MUCH SALARY.
ACCEPT NOW IBA S TERMS AND SIGN THE SETTLEMENT AS THIS NINETH BIPARTITE THE MAIN FOCUS IS SECOND PENSION OPTION SAVING 2.6 LAHS EMPLOYEES.
.VIGOROUSLY FIGHT FOR RESIDUAL PENSION ISSUES AFTER IMPLEMENTING THE 9 TH BIPARTITE. STUDY TH E IMPACT OF THE LOAD. THE MOMENET THE BALANCE SHEET OF 31.03.2011 WAS FINALISED PREPARE A VERY GOOD CHARTER OF DEMANDS AND FIGHT AND IMPLEMENT WEF 01.11.2012. DON’T BRING MUCH COMPONENT WHICH WILL HAVE PENSION BEARING EFFECT . LET IT BE TAKEN CARE OF AFTER 01.11.2017 BY TAKING CLUE FROM THE GOVERNMENT AND THE FUTURE SCENARIO OF BANKING GROWTH IN THE YEARS TO COME.
K BALASUBRAMANIAN RETIRED SENIOR MANAGER VRS 2001 PENSION OPTEE
Friday, March 12, 2010
CONSOLIDATION OF EMPLOYEES IN FINANCIAL SECTOR FOR BETTER WAGE REVISION
WHETHER TIME IS RIPE FOR A JOINT APPEAL BY THE ENTIRE FINANCIAL SECTOR OFFIERS AND EMPLOYEES
I was surprised to see an insertion in THE ECONOMIC TIMES CHENNAI EDITION DT 08 MARCH 2010 BY LIC CLASS I OFFIERS ASSOCIATION informing the policy holders and others the meager offer of the government and the reality. It was a reasonable coverage highlighting the pathetic situation .
I n one or two of my earlier postings to the pay commission update blog I also made an appeal to the influential members of the banking sector to draft a suitable insertion like this in detail and circulate to various dailies including the pink papers.
The advantage of highlighting the status is as follows.
Customers can come to know where we are standing. They are thinking financil sector employees are best paid in INDIA.
They also can get a first hand information of what the VI th pay commission exactly means to central govt employees when compared to the government claim of 28%
How liberal approach the government has made when accepting the pay commission recommendations and public sector pay hike as a follow up effect at the time of general elections at a very huge debt burden.
We can put a question to the real bosses in the government language mainly CUSTOMERS that why government is shying away in extending the parity of wages.
This can be highlighted through mails to the politicians also and seeking their support
LIC is much better placed than the banks as the staff cost to total profit is a t a historical low of 6% , best among the financial sector. They can even seek parity with RBI scales considering the monopoly and undisputed position that they are enjoying in the Life insurance business.
Government is in a hurry to offer the most notorious figure of 17.5% to them also on par with bank employees which itself is running in trouble. When SBI wants to have upper hand by more or less doing same type of job except some government transactions, there is nothing wrong in LIC employees union / officers federation to break from the tradition of following the bank wages ands insist to settle a superior scale for them.
THE TIME IS RIPE FOR CONSOLIDATION AND JOINING OF ALL FINANCIAL SECTOR EMPLOYEES/OFFICER EMPLOYEES UNDER THE UMBRELLA OF ALL INDIA FORUM OF FINANCIAL SECTOR OFFICERS AND EMPLOYEES.(WITHOUT UNITY THE WORD UNITED AT PRESENT LOST ITS SIGNIFICANCE.) AND DEMAND IMMEDIATE WAGE REVISION ON PAR WITH SIXTH PAY COMMISION BY RETAINING THE EXISTING INTERNEL PARITY WITHIN THE SECTOR
AND FORCE THE GOVERNMENT TO GO FOR A SEPARATE FINANCIAL PAY COMMISSION WITH SUITABLE TERMS OF REFERENCE. PENDING THE COMMISSION REPORT AN INTERIM RELIEF OF 30% TO THE WAGES AS ON 01.11.2007 SHOULD BE ANNOUNCED. ONE MORE PENSION OPTION HAS TO BE RLEASED IMMEDIATELY AS IT IS NOT AN OPTION IN THE STRICTEST SENSE AS IT WAS DENIED EARLIER AFTER AMENDING THE PENSION REGULATIONS. THAT MISTAKE TO BE RECTIFIED WITHOUT ADDITIONAL COST BY ABSORBING THE SAME . DPRE 01.11.2002 RETIREES SHOULD ALSO BE COVERED UNDER 100% NEUTRALISATION SCHEME WIYTHOUT COST CALCULATION.NO OTHER METHOD IS GOING TO GIVE SATISFACTION TO THE OFFICERS SECTOR IN PARTICULAR AS NEITHER IBA NOR LIC MANAGEMENT ARE WILLING TO GIV E A STARTING PAY OF 15600+5400 GRADE PAY+DA +30% HRA , EVEN THOUGH IT IS GENUINELY JUSTIFIED ,WHICH IS RUPEES TEN THOUSAND MORE ON AN INITIAL STARTING BASIS.EVEN AFTER THE PROPOSED 17.5 % WAGE HIKE
WHY THE CONCERNED TRADE UNION LEADERSHIP HESITATING TO TAKE UP THE MATTER FORCEFULLY. WHY THIS SILENCE AND CASUAL APPROACH IN SETTLEMENT IS A RIDDLE KNOWN ONLY TO THE TOP ECHELONS OF POWER. POOR FINANCIAL SECTOR EMPLOYEES /PENSIONERS ARE ONLY SEEKING RELIEF WITHOUT DIRECTION OF WHAT TO DO AND BLAMING THEIR OWN FATE FOR TAKING THIS PROFESSION BY MISTAKE.
I MYSELF RESIGNED IN 1976 FROM A LECTURER POST IN A UNIVERSITY TO TAKE UP CLERICL JOB AND I CLIMBED UPO SCALE III LEVEL AND\ TOOK VRS UNER VRS 2000 SCHEME AND OPTED FOR PENSION.25 year sservice completed.
From 4940 pension in 2001 just at the time of VRS , now I am getting a pension of 12300 . Courtesy Supreme court for 5 years addition plus DA increase of 90 slabs now . No PENSION UPDATION.No 100% NEUTRALISATION. Everywhere there is a pit fall and UFBU mishandling and messing the entire thing since 2001.
Had I continued as a lecturer I would have drawn a basic of around 39100+ grade pay of 8000 maximum as an asst professor and ended with a pension of nearly 23000+plus DA . which may 150% more. No promotion was assumed . Only ill luck and cruelty of fate. Majority of the 1976 batch consists of post graduates who preferred clerical position to teaching position. Such was the attraction of the job at that time.
WILL THE AUTHORITIES CONECRNED CAN GIVE LIBERAL WAGE REVISION TO THE ENTIRE FINANCIAL SECTOR AND RECTIFY THE MISTAKE THAT THEY ARE DELIBERATELY COMMITTING BY OFFERING 17.5% MEAGER INCRESE AND SPOILING THE FINANCIAL SECTOR AS A WHOLE
.IN EVERY CAMPUS SELECTION THE FINANCIAL SECTORS ARE PAY MASTERS . BUT OUR IBA / MINSITRY OF FINANCE WANTS TO TREAT THE SECTOR SHABBILY.
CA C AMPUS SALARY IS AROUND 6 TO 7 LAKHS. GOING UPTO 12 LAKHS. WHETHER BANKS CAN AFFORD TO GET CA S TO MANAGE THE AUDIT DEPARTMENT BY OFFREING A SALARY OF MORE THAN THAT OF THEIR DGMS OR GMS.
SOMETHING WRONG IS GOING ON SOME WHERE AFFECTING THE ENTIRE FINANCIAL SECTOR EMPLOYEES AND PENSIONERS. THAT BLACK SHEEP WHO IS PREVENTING THE JUSTIFIED INCREASE TO THE FINANCIAL SECTOR EMPLOYEES AND PENSIONERS HAS TO BE IDENTIFIED AND ORGANISATIONALLY FIGHT IT OUT. THEN ONLY THESE EMPLOYEES ALSO CAN GET GOOD SALARY .
NO POLITICAL CLOUT.
TILL THAT TIME PRAY YOUR ISHTA DEIVAM/KULA DEIVAM . NO OTHER WAY.
K BALASUBRAMANIAN
I was surprised to see an insertion in THE ECONOMIC TIMES CHENNAI EDITION DT 08 MARCH 2010 BY LIC CLASS I OFFIERS ASSOCIATION informing the policy holders and others the meager offer of the government and the reality. It was a reasonable coverage highlighting the pathetic situation .
I n one or two of my earlier postings to the pay commission update blog I also made an appeal to the influential members of the banking sector to draft a suitable insertion like this in detail and circulate to various dailies including the pink papers.
The advantage of highlighting the status is as follows.
Customers can come to know where we are standing. They are thinking financil sector employees are best paid in INDIA.
They also can get a first hand information of what the VI th pay commission exactly means to central govt employees when compared to the government claim of 28%
How liberal approach the government has made when accepting the pay commission recommendations and public sector pay hike as a follow up effect at the time of general elections at a very huge debt burden.
We can put a question to the real bosses in the government language mainly CUSTOMERS that why government is shying away in extending the parity of wages.
This can be highlighted through mails to the politicians also and seeking their support
LIC is much better placed than the banks as the staff cost to total profit is a t a historical low of 6% , best among the financial sector. They can even seek parity with RBI scales considering the monopoly and undisputed position that they are enjoying in the Life insurance business.
Government is in a hurry to offer the most notorious figure of 17.5% to them also on par with bank employees which itself is running in trouble. When SBI wants to have upper hand by more or less doing same type of job except some government transactions, there is nothing wrong in LIC employees union / officers federation to break from the tradition of following the bank wages ands insist to settle a superior scale for them.
THE TIME IS RIPE FOR CONSOLIDATION AND JOINING OF ALL FINANCIAL SECTOR EMPLOYEES/OFFICER EMPLOYEES UNDER THE UMBRELLA OF ALL INDIA FORUM OF FINANCIAL SECTOR OFFICERS AND EMPLOYEES.(WITHOUT UNITY THE WORD UNITED AT PRESENT LOST ITS SIGNIFICANCE.) AND DEMAND IMMEDIATE WAGE REVISION ON PAR WITH SIXTH PAY COMMISION BY RETAINING THE EXISTING INTERNEL PARITY WITHIN THE SECTOR
AND FORCE THE GOVERNMENT TO GO FOR A SEPARATE FINANCIAL PAY COMMISSION WITH SUITABLE TERMS OF REFERENCE. PENDING THE COMMISSION REPORT AN INTERIM RELIEF OF 30% TO THE WAGES AS ON 01.11.2007 SHOULD BE ANNOUNCED. ONE MORE PENSION OPTION HAS TO BE RLEASED IMMEDIATELY AS IT IS NOT AN OPTION IN THE STRICTEST SENSE AS IT WAS DENIED EARLIER AFTER AMENDING THE PENSION REGULATIONS. THAT MISTAKE TO BE RECTIFIED WITHOUT ADDITIONAL COST BY ABSORBING THE SAME . DPRE 01.11.2002 RETIREES SHOULD ALSO BE COVERED UNDER 100% NEUTRALISATION SCHEME WIYTHOUT COST CALCULATION.NO OTHER METHOD IS GOING TO GIVE SATISFACTION TO THE OFFICERS SECTOR IN PARTICULAR AS NEITHER IBA NOR LIC MANAGEMENT ARE WILLING TO GIV E A STARTING PAY OF 15600+5400 GRADE PAY+DA +30% HRA , EVEN THOUGH IT IS GENUINELY JUSTIFIED ,WHICH IS RUPEES TEN THOUSAND MORE ON AN INITIAL STARTING BASIS.EVEN AFTER THE PROPOSED 17.5 % WAGE HIKE
WHY THE CONCERNED TRADE UNION LEADERSHIP HESITATING TO TAKE UP THE MATTER FORCEFULLY. WHY THIS SILENCE AND CASUAL APPROACH IN SETTLEMENT IS A RIDDLE KNOWN ONLY TO THE TOP ECHELONS OF POWER. POOR FINANCIAL SECTOR EMPLOYEES /PENSIONERS ARE ONLY SEEKING RELIEF WITHOUT DIRECTION OF WHAT TO DO AND BLAMING THEIR OWN FATE FOR TAKING THIS PROFESSION BY MISTAKE.
I MYSELF RESIGNED IN 1976 FROM A LECTURER POST IN A UNIVERSITY TO TAKE UP CLERICL JOB AND I CLIMBED UPO SCALE III LEVEL AND\ TOOK VRS UNER VRS 2000 SCHEME AND OPTED FOR PENSION.25 year sservice completed.
From 4940 pension in 2001 just at the time of VRS , now I am getting a pension of 12300 . Courtesy Supreme court for 5 years addition plus DA increase of 90 slabs now . No PENSION UPDATION.No 100% NEUTRALISATION. Everywhere there is a pit fall and UFBU mishandling and messing the entire thing since 2001.
Had I continued as a lecturer I would have drawn a basic of around 39100+ grade pay of 8000 maximum as an asst professor and ended with a pension of nearly 23000+plus DA . which may 150% more. No promotion was assumed . Only ill luck and cruelty of fate. Majority of the 1976 batch consists of post graduates who preferred clerical position to teaching position. Such was the attraction of the job at that time.
WILL THE AUTHORITIES CONECRNED CAN GIVE LIBERAL WAGE REVISION TO THE ENTIRE FINANCIAL SECTOR AND RECTIFY THE MISTAKE THAT THEY ARE DELIBERATELY COMMITTING BY OFFERING 17.5% MEAGER INCRESE AND SPOILING THE FINANCIAL SECTOR AS A WHOLE
.IN EVERY CAMPUS SELECTION THE FINANCIAL SECTORS ARE PAY MASTERS . BUT OUR IBA / MINSITRY OF FINANCE WANTS TO TREAT THE SECTOR SHABBILY.
CA C AMPUS SALARY IS AROUND 6 TO 7 LAKHS. GOING UPTO 12 LAKHS. WHETHER BANKS CAN AFFORD TO GET CA S TO MANAGE THE AUDIT DEPARTMENT BY OFFREING A SALARY OF MORE THAN THAT OF THEIR DGMS OR GMS.
SOMETHING WRONG IS GOING ON SOME WHERE AFFECTING THE ENTIRE FINANCIAL SECTOR EMPLOYEES AND PENSIONERS. THAT BLACK SHEEP WHO IS PREVENTING THE JUSTIFIED INCREASE TO THE FINANCIAL SECTOR EMPLOYEES AND PENSIONERS HAS TO BE IDENTIFIED AND ORGANISATIONALLY FIGHT IT OUT. THEN ONLY THESE EMPLOYEES ALSO CAN GET GOOD SALARY .
NO POLITICAL CLOUT.
TILL THAT TIME PRAY YOUR ISHTA DEIVAM/KULA DEIVAM . NO OTHER WAY.
K BALASUBRAMANIAN
Monday, March 1, 2010
A NEW METHOD FOR PENSION WAGE REVISION
ANALYSIS AND REMEDIES SUGGESTED SCALES EXACTLY ON PAR WITH THE PRESENT SCALES UPTO SCALE VI LEVEL
SCALE I 15000-800(6)-19800-900(3)-22500-1000(7)-29500
SCALEII 21600-900-22500-1000(10)-32500
SCALEIII 29500-1000(5)-34500-1100(2)-36700
SCALE IV 33500-1000(1)-34500-1100(5)-40000
SCALE V 40000-1100(4)-44400
SCALE VI 44400-1200(4)-49200
SCALE VII 49200-1200(2)-51600--1400(2)-54400
STAGNATION INCREMENTS
AT PRESENT THERE IS AUTOMATIC MOVEMENT FREOM ONE SCALE TO OTHER
THAT MEANS THREE NOTIONAL INCREMENTS ARE AVILABLE FOR SCALE I
FOUR NOTIONAL INCREMENTS ARE AVILABLE FOR SCALE II
LEAVE SCALE I , II AS SUCH
DEMAND A LATERAL MOVEMENT FROM SCALE III TO SCALE IV ALSO IE 3 STAGES
EXTENDING THE SCALES FURTHER CAN BE TAKEN UP IN NEXT SETTLEMENT THIS IBA MAY ACCEPT
ALLOW THE IBA TO GIVE GOOD PAY SCALEAS FROM SCALE V , VI AND VII AS PER THEIR WISH
IT WILL HELP US IN FUTURE
AWARD STAFF
THE PAY SCALE STRUCTURE FOR AWARD STAFF SEEMS GOOD AS GOOD INCREMENTS IN THE BEGINNING STAGES PLACES JUNIORS ALSO IN A GOOD POSITION .AWARD STAFF SCALES CAN BE ACCEPTED AS SUCH. THE CONCEPT OF 1000 PM FOR THE STAFF WHO ARE NOT RECEIVING ANY SPECIAL ALLOWANCE FROM 01.05.2010 IS AGOOD CONCEPT AND THE THE TOTAL BASIC FOR A GRADUATE WILL COME TO 6200+800+1000 =8000 INCLUDING DA AND HRA ONE CAN CROSS THE FOUR DIGIT SALARY. ACCFEPT NOW IMPROVE LATER SHOULD BE THE TARAKA MANTRA BECAUSE OF THE VEXED PENSION ISSUE
NEW IDEA ON PENSION
REQUEST IBA TO SANCTION NOTIONALLY PENSION OPTION FROM THE RETIRED DATE.CALCULATE NOTIONAL COMMUTATION. PF WITH THE RECEIVED INTEREST AS ON THAT DATE . ADJUST THE SAME NOTIONALLY. BALANCE IF ANY CAN BE PAYABLE NOW.
LET THE DATE OF ACTUAL MONETARY IMPLEMENTATION MAY BE FROM 01.04.2009 AS A VIA MEDIA INSTEAD OF 01.04.2008 BY UFBU OR 01.04.2010 BY IBA
GAIN FOR IBA : IT IS ENOUGH IF THEY PAY ARREARS FOR THE CURRENT YEAR ALONE
GAIN FOR PF OPTEES : COMMUTAION FROM THE RESPECTIVE RETIRED DATE/BETTER COMMUTAION INDEX/ SO THAT RESTORATION WILL COME FASTER
COSTING OF PENSION AND REPAYMENT BY THE PENSIONERS CAN BE ABSORBED BY IBA AS THE CONCEPT ITSELF IS RIDICULOUS .
ABSORBING THIS 1800 CRORES IS NOT AT ALL A BIG THING WHEN COMPARED TO THOUSAND OF CRORES ALLOCATION TO PENSION BY THE GOVERNMENT. EVEN THE RAILWAY BUDGET DOCUMENT ENVISAGES AN OUT LAY OF A HUGE SUM OF 55000 CRORES AS A RESULT OF SIXTH PAY COMMISSION RECOMMENDATIONS
100% DA NEUTRALISATION TO PRE 01.11.2002 PENSIONERS
RECTIFY YOUR PAST MISTAKE OF NEGLECTING /BACK STABBING YOUR OWN SENIOR CITIZENS, BY ASKING IBA TO PAY 100% DA NEUTRALISATIION TO PRE 01.11.2002 BANK PENSION OPTEES ATLEAST FROM 01.04.2009 ALONG WITH THE PROPOSED PENSION PACKAGE
BY SEEING ALL THIS WE CAN EASILY CONCLUDE THAT IBA WHICH IS ENVISAGED THE TASK OF RECOMMENDING THE COMPETITIVE WAGES BY TAKING INTO ACCOUNT THE NATURE OF JOB , RISK TAKING , RESPONSIBILITIES ETC IS NOT SINCERE ENOUGH IN PEROFRMING ITS ROLE AND THAT UFBU LEADERSHIP IS ALSO NOT SINCERE AS THE COMMITMENT AND FRAGMTISM AND VISUALISATION OF THE ERSTWHILE TALL LEADERS OF BANK UINONS IS TOTALLY MISSING.
EXCEPT PENSION UPDATION ALL MATTERS CAN BE SORTED OUT AND LIGHT OF SETTLEMENT CAN BE SEEN BEFORE 15TH OF MARCH AND MARCH SALARY SHOULD BE THE NEW SALARY IF THERE IS DETERMINATION ON ALL SIDES.
WHATEVER THE RESIDUAL DEMANDS CAN BE TAKEN UP AFTER SIGNING THIS VEXED ISSUE OF PENSION /DA NEUTRALISATION OF PRE 01.11.2002 PENSIONERS AND BIPARTITE SETTLEMENT WITHOUT FURTHER LOSS OF TIME.
ACT QUICKLY SEEK APPOINTMENT WITH MADAM SONIA GANDHI /PM/FMTHROUGH SMT JAYANTHI NATARAJAN , PARLIAMENTARY COMMITTEE MP THAT WILL BRING NECESSARY EFFECT. SETTLEMENT CAN BE SIGNE DIN THE NEXT SITTING WITHOUT MUCH TALKS.
K BALASUBRAMANIAN RETIRED SENIOR MANAGER VRS 2001 PENSION OPTEE
SCALE I 15000-800(6)-19800-900(3)-22500-1000(7)-29500
SCALEII 21600-900-22500-1000(10)-32500
SCALEIII 29500-1000(5)-34500-1100(2)-36700
SCALE IV 33500-1000(1)-34500-1100(5)-40000
SCALE V 40000-1100(4)-44400
SCALE VI 44400-1200(4)-49200
SCALE VII 49200-1200(2)-51600--1400(2)-54400
STAGNATION INCREMENTS
AT PRESENT THERE IS AUTOMATIC MOVEMENT FREOM ONE SCALE TO OTHER
THAT MEANS THREE NOTIONAL INCREMENTS ARE AVILABLE FOR SCALE I
FOUR NOTIONAL INCREMENTS ARE AVILABLE FOR SCALE II
LEAVE SCALE I , II AS SUCH
DEMAND A LATERAL MOVEMENT FROM SCALE III TO SCALE IV ALSO IE 3 STAGES
EXTENDING THE SCALES FURTHER CAN BE TAKEN UP IN NEXT SETTLEMENT THIS IBA MAY ACCEPT
ALLOW THE IBA TO GIVE GOOD PAY SCALEAS FROM SCALE V , VI AND VII AS PER THEIR WISH
IT WILL HELP US IN FUTURE
AWARD STAFF
THE PAY SCALE STRUCTURE FOR AWARD STAFF SEEMS GOOD AS GOOD INCREMENTS IN THE BEGINNING STAGES PLACES JUNIORS ALSO IN A GOOD POSITION .AWARD STAFF SCALES CAN BE ACCEPTED AS SUCH. THE CONCEPT OF 1000 PM FOR THE STAFF WHO ARE NOT RECEIVING ANY SPECIAL ALLOWANCE FROM 01.05.2010 IS AGOOD CONCEPT AND THE THE TOTAL BASIC FOR A GRADUATE WILL COME TO 6200+800+1000 =8000 INCLUDING DA AND HRA ONE CAN CROSS THE FOUR DIGIT SALARY. ACCFEPT NOW IMPROVE LATER SHOULD BE THE TARAKA MANTRA BECAUSE OF THE VEXED PENSION ISSUE
NEW IDEA ON PENSION
REQUEST IBA TO SANCTION NOTIONALLY PENSION OPTION FROM THE RETIRED DATE.CALCULATE NOTIONAL COMMUTATION. PF WITH THE RECEIVED INTEREST AS ON THAT DATE . ADJUST THE SAME NOTIONALLY. BALANCE IF ANY CAN BE PAYABLE NOW.
LET THE DATE OF ACTUAL MONETARY IMPLEMENTATION MAY BE FROM 01.04.2009 AS A VIA MEDIA INSTEAD OF 01.04.2008 BY UFBU OR 01.04.2010 BY IBA
GAIN FOR IBA : IT IS ENOUGH IF THEY PAY ARREARS FOR THE CURRENT YEAR ALONE
GAIN FOR PF OPTEES : COMMUTAION FROM THE RESPECTIVE RETIRED DATE/BETTER COMMUTAION INDEX/ SO THAT RESTORATION WILL COME FASTER
COSTING OF PENSION AND REPAYMENT BY THE PENSIONERS CAN BE ABSORBED BY IBA AS THE CONCEPT ITSELF IS RIDICULOUS .
ABSORBING THIS 1800 CRORES IS NOT AT ALL A BIG THING WHEN COMPARED TO THOUSAND OF CRORES ALLOCATION TO PENSION BY THE GOVERNMENT. EVEN THE RAILWAY BUDGET DOCUMENT ENVISAGES AN OUT LAY OF A HUGE SUM OF 55000 CRORES AS A RESULT OF SIXTH PAY COMMISSION RECOMMENDATIONS
100% DA NEUTRALISATION TO PRE 01.11.2002 PENSIONERS
RECTIFY YOUR PAST MISTAKE OF NEGLECTING /BACK STABBING YOUR OWN SENIOR CITIZENS, BY ASKING IBA TO PAY 100% DA NEUTRALISATIION TO PRE 01.11.2002 BANK PENSION OPTEES ATLEAST FROM 01.04.2009 ALONG WITH THE PROPOSED PENSION PACKAGE
BY SEEING ALL THIS WE CAN EASILY CONCLUDE THAT IBA WHICH IS ENVISAGED THE TASK OF RECOMMENDING THE COMPETITIVE WAGES BY TAKING INTO ACCOUNT THE NATURE OF JOB , RISK TAKING , RESPONSIBILITIES ETC IS NOT SINCERE ENOUGH IN PEROFRMING ITS ROLE AND THAT UFBU LEADERSHIP IS ALSO NOT SINCERE AS THE COMMITMENT AND FRAGMTISM AND VISUALISATION OF THE ERSTWHILE TALL LEADERS OF BANK UINONS IS TOTALLY MISSING.
EXCEPT PENSION UPDATION ALL MATTERS CAN BE SORTED OUT AND LIGHT OF SETTLEMENT CAN BE SEEN BEFORE 15TH OF MARCH AND MARCH SALARY SHOULD BE THE NEW SALARY IF THERE IS DETERMINATION ON ALL SIDES.
WHATEVER THE RESIDUAL DEMANDS CAN BE TAKEN UP AFTER SIGNING THIS VEXED ISSUE OF PENSION /DA NEUTRALISATION OF PRE 01.11.2002 PENSIONERS AND BIPARTITE SETTLEMENT WITHOUT FURTHER LOSS OF TIME.
ACT QUICKLY SEEK APPOINTMENT WITH MADAM SONIA GANDHI /PM/FMTHROUGH SMT JAYANTHI NATARAJAN , PARLIAMENTARY COMMITTEE MP THAT WILL BRING NECESSARY EFFECT. SETTLEMENT CAN BE SIGNE DIN THE NEXT SITTING WITHOUT MUCH TALKS.
K BALASUBRAMANIAN RETIRED SENIOR MANAGER VRS 2001 PENSION OPTEE
Friday, February 26, 2010
OPTIONS BEFORE UFBU
OPTIONS BEFORE UFBU
It is very clear and evident that the present set of leadership failed miserably in convincing IBA team to get the MOU converted into a settlement. The costing of pension ,improvement of medical expenses etc all eye wash to deny the benefit to bank men. If clearance comes from the top political leadership , within 24 hours settlement could be signed without any negotiation.
If this trend continues majority of PF optees retired under normal course will die sooner or later without seeing light of the pension and only the family will be entitled to meager family pension ,in which case surrendering of PF will become a wasteful exercise. A month delay means advancing to death by a month which the concerned parties to the settlement should understand. It is the internal politics of the negotiating team which is playing havoc.
The following options can be considered :
LEAVE THE ENTIRE MATTER LIKE PENSION COSTING , DATE OF EFFECT OF PENSION PAYMENT AND ALL OTHER DISPUTED AREAS TO IBA . LET THEM DECIDE. IF YOU DO THAT THEIR BLOOD PRESSURE WILL GO UP SINCE UFBU IS NOT IN THE PICTURE.
FURTHER THEY WILL IMMEDIATELY CONSULT THE NORTH BLOCK AND GET THE SETTLEMENT SIGNED BEFORE CLOSING OF THE FINANCIAL YEAR.
PRESENT LEADERSHIP SHOULD TAKE MORAL RESPONSIBILITY FOR THE FAILURE OF THE NEGOTIATING SKILL DUE TO INTRENAL SQUABBLES. SO GIVE WAY FOR THE PEOPLE WHO MAY ACHIEVE BETTER BENEFITS TO THE EMPLOYEES ./PENSIONERS. THE PRESENT SET UP THROUGH THEIR LACK OF IMAGINATION AND VISION DRAGGED THE BANK EMPLOYEES STATURE TO THE UNDISPUTABLE LAST POSITION WHEN COPMPARED TO CENTRAL /STATE/QUASI/PUBLIC SECTOR AFTER THE VI TH PAY COMMISSION.
WHEN THEY GOT FULL DA NEUTRALISATION IN THE PRESENT SETTLEMENT THEY DELIBERATELY FAILED TO ACHIEVE AND GET THE SAME BENEFIT TO THEIR OWN SENIOR COLLEAGUES WHO RETIRED PRIOR TO 01.11.2002 WHICH IS UNHEARD OF IN THE TRADE UNION MOVEMENT. WHEN THE GOVERNMENT IS WHOLEHEARTEDLY EXTENDING ONE BENFIT OR OTHER CONTINUOUSLY BY INCREASING THE PUBLIC DEBT BY SUITABLE BORROWING PROGRAMME. WITH OUT COST CONSCIOUSNESS WHY BANK EMPLOYEES ALONE ARE HUMILIATED. MANY OF THE LOSS MAKING UNITS WERE GIVEN HEFTY PAY INCREASE BY CONSIDERING BOTH AS DIFFERENT PARAMETERS. THEN WHY YOU ARE ALLOWING IBA TO SIT WITH A CALCULATOR INSTEAD OF SEEKING PARITY.
WHAT EVER BE THE DECISION CAN BE REVERSED AND NEXT SETTLEMENT CAN BE CLINCHED WITHOUT PENSION COSTING, IE 100% MANAGEMENT EXPENSES AND ALSO PENSION UPDATION. IN A COUNTRY LIKE INDIA ANY THING MAY HAPPEN . NOTHING IS IMPOSSIBLE. BUILD UP THE MORALE OF THE EMPLOYEES AND SEEK PARITY IN THE NEXT SETTLEMENT WHICH SHOULD BE IMPLEMENTED ON 01.11.2012 ITSELF.
CONCENTRATE ON THAT EXCLUSIVE FOR THE SERVING EMPLOYEES LIKE INTRODUCTION OF VARIABLE PAY LIKE GRADE PAY FOR PERFORMANCE. IMPROVING HRA RATES TO 15,20 AND 30% . TRANSPORT ALLOWANCE, EDUCATION ALLOWANCE, MEDICAL AID ETC. KEEP THE BASIC AND DA AS SUCH . IT WILL SERVE TWO PURPOSE. ONE WE CAN COMPARE OURSELVES WITH SEVENTH PAY COMMISSION IF AT ALL IT COMES.
SECOND IBA WILL NOT ASK YOU TO RECALCULATE PENSION LOAD ONCE AGAIN. HENCE YOU ACCEPT WHAT THEY OFFER NOW. KEEP LOW PROFILE. YOU CAN ALWAYS MAKE A TIMELY FIGHT . STRIKE THE IRON WHEN IT IS HOT. NOW NO USE. TOOLATE .
K BALASUBRAMANIAN
It is very clear and evident that the present set of leadership failed miserably in convincing IBA team to get the MOU converted into a settlement. The costing of pension ,improvement of medical expenses etc all eye wash to deny the benefit to bank men. If clearance comes from the top political leadership , within 24 hours settlement could be signed without any negotiation.
If this trend continues majority of PF optees retired under normal course will die sooner or later without seeing light of the pension and only the family will be entitled to meager family pension ,in which case surrendering of PF will become a wasteful exercise. A month delay means advancing to death by a month which the concerned parties to the settlement should understand. It is the internal politics of the negotiating team which is playing havoc.
The following options can be considered :
LEAVE THE ENTIRE MATTER LIKE PENSION COSTING , DATE OF EFFECT OF PENSION PAYMENT AND ALL OTHER DISPUTED AREAS TO IBA . LET THEM DECIDE. IF YOU DO THAT THEIR BLOOD PRESSURE WILL GO UP SINCE UFBU IS NOT IN THE PICTURE.
FURTHER THEY WILL IMMEDIATELY CONSULT THE NORTH BLOCK AND GET THE SETTLEMENT SIGNED BEFORE CLOSING OF THE FINANCIAL YEAR.
PRESENT LEADERSHIP SHOULD TAKE MORAL RESPONSIBILITY FOR THE FAILURE OF THE NEGOTIATING SKILL DUE TO INTRENAL SQUABBLES. SO GIVE WAY FOR THE PEOPLE WHO MAY ACHIEVE BETTER BENEFITS TO THE EMPLOYEES ./PENSIONERS. THE PRESENT SET UP THROUGH THEIR LACK OF IMAGINATION AND VISION DRAGGED THE BANK EMPLOYEES STATURE TO THE UNDISPUTABLE LAST POSITION WHEN COPMPARED TO CENTRAL /STATE/QUASI/PUBLIC SECTOR AFTER THE VI TH PAY COMMISSION.
WHEN THEY GOT FULL DA NEUTRALISATION IN THE PRESENT SETTLEMENT THEY DELIBERATELY FAILED TO ACHIEVE AND GET THE SAME BENEFIT TO THEIR OWN SENIOR COLLEAGUES WHO RETIRED PRIOR TO 01.11.2002 WHICH IS UNHEARD OF IN THE TRADE UNION MOVEMENT. WHEN THE GOVERNMENT IS WHOLEHEARTEDLY EXTENDING ONE BENFIT OR OTHER CONTINUOUSLY BY INCREASING THE PUBLIC DEBT BY SUITABLE BORROWING PROGRAMME. WITH OUT COST CONSCIOUSNESS WHY BANK EMPLOYEES ALONE ARE HUMILIATED. MANY OF THE LOSS MAKING UNITS WERE GIVEN HEFTY PAY INCREASE BY CONSIDERING BOTH AS DIFFERENT PARAMETERS. THEN WHY YOU ARE ALLOWING IBA TO SIT WITH A CALCULATOR INSTEAD OF SEEKING PARITY.
WHAT EVER BE THE DECISION CAN BE REVERSED AND NEXT SETTLEMENT CAN BE CLINCHED WITHOUT PENSION COSTING, IE 100% MANAGEMENT EXPENSES AND ALSO PENSION UPDATION. IN A COUNTRY LIKE INDIA ANY THING MAY HAPPEN . NOTHING IS IMPOSSIBLE. BUILD UP THE MORALE OF THE EMPLOYEES AND SEEK PARITY IN THE NEXT SETTLEMENT WHICH SHOULD BE IMPLEMENTED ON 01.11.2012 ITSELF.
CONCENTRATE ON THAT EXCLUSIVE FOR THE SERVING EMPLOYEES LIKE INTRODUCTION OF VARIABLE PAY LIKE GRADE PAY FOR PERFORMANCE. IMPROVING HRA RATES TO 15,20 AND 30% . TRANSPORT ALLOWANCE, EDUCATION ALLOWANCE, MEDICAL AID ETC. KEEP THE BASIC AND DA AS SUCH . IT WILL SERVE TWO PURPOSE. ONE WE CAN COMPARE OURSELVES WITH SEVENTH PAY COMMISSION IF AT ALL IT COMES.
SECOND IBA WILL NOT ASK YOU TO RECALCULATE PENSION LOAD ONCE AGAIN. HENCE YOU ACCEPT WHAT THEY OFFER NOW. KEEP LOW PROFILE. YOU CAN ALWAYS MAKE A TIMELY FIGHT . STRIKE THE IRON WHEN IT IS HOT. NOW NO USE. TOOLATE .
K BALASUBRAMANIAN
Monday, February 15, 2010
ERNEST APPEAL TO PM/FM/TOP BUREAUCRATS OF BANKING DIVISION MOF
ERNEST APPEAL TO PM/FM/TOP BUREAUCRATS OF BANKING DIVISION MOF
Bank employees negotiations /pension option /full neutralization of DA to pre 01.11.2002 pensioners is not yet settled in spite of the assurance given in the parliament somewhere in the same time during last year Every one knows very well that the implementation of sixth pay commission to central government employees has started a wage war throughout the country . The governments acceptance tantamounts to determination of /standardization of salary levels for the different cadres. GOOD GESTURE.
After that several state governments has voluntarily agreed to implement the recommendations by creating huge debt burden. OK. GOOD
Government has accepted the liberal recommendations to public sector undertakings even better than pay commission because they are classified under public sector and not covered by the pension scheme .Here also the increase is not proportionate to the profit earned etc but on adhoc basis only by agreeing certain salary levels to the position they are holding. VERY GOOD GESTURE.
Then UGC Scales, Judiciary recommendations, ONE RANK ONE PENSION, everywhere 100% justice has appeared to have been done. EXCELLENT.
WE ARE VERY SAD TO BRING YOUR KIND ATTENTION THAT THE SAME TYPE OF PATRONAGE HAS NOT BEEN EXTENDED TO THE BANK EMPLOYEES WHO WERE BETTER PAID TILL 1996.
WHAT IS THE REASON FOR YOUR NEGLECTING THE EMPLOYEES AS UN TOUCHABLES IN THE SOCIETY EVEN THOUGH THE CONCEPT OF UNTOUCHABILITY WAS ERADICATED TOTALLY .
PLEASE APPLY YOUR CONSCIOUSNESS AND THINK FOR A WHILE.
ACHIVEMENTS OF THE BANKING INDUTRY :
BANKS ARE WITH STANDING THE RECESSION AND WORLDWIDE FINANCIAL CRISIS LIKE A SOLID ROCK
THEY ARE EARNING GOOD NET PROFIT AND TRANSFERRED MORE THAN 50000 CRORES TO THE EXCHEQUER SINCE 2006
HUGE WRITTEN OFF FROM TIME TO TIME WERE SILENTLY ABSORBED WHICH IS VERY HIGH WHEN COMPARED THE WAGE COST.
Which sector the government wants to classify them . If it is under public sector mean s more than 100% salary hike has to be given. So forget about that .Since the implementation of PILLAI COMMITTEE DURING 1979 as standardization of wages BANK OFFICERS SALARY LEVEL WERE BROUGHT DOWN TO CLASS I OFFICER LEVEL. So the then government and the political leadership has agreed that the level of starting pay for officers should be the same. Whether it is bank or government or college lecturer etc.
It is the generous package given under fifth pay commission and sixth pay commission and introduction of new item called grade pay only made the salary to a very good level which has created a good purchasing power among the government/public sector employees.
Every person who is following the financial position of the government also knows that this bonanza to the employees /pensioners has created huge fiscal deficit in addition to other reasons like oil subsidy, stimulus package etc.
Now coming to the banking sector you are the major share holder and hence employer who has to take care of the employees like government employees /public sector employees. The matter should not be left to IBA/UFBU who failed miserably in coming to understanding through collective bargaining. It lost its relevance because the attitude of the government changed in favour of the employees and hence simply by a notification you can implement the pattern of sixth pay commission scales to OFFICERS WHO ARE NOT COVERED UNDER INDUSTRIAL DISPUTE ACT.JUST LIKE PILLAI COMMITTEE SCALES.
Then for award staff suitable parity can be maintained and IBA can be instructed to work out the scales along with the award staff union and settlement can be arrived even before the end of this month. This will give much needed relief to nearly eight lakhs serving employees and officers who lost hope in the negotiation drama going on and expecting some type of magic formula. HAVING AGREED FOR LIBERALISED WAGES TO NEARLY TWO CRORES OF STATE /CENTRAL GOVERNMENT /QUASI GOVERNMENT/PUBLIC SECTOR EMPLOYEES WHY VICTIMISING BANK EMPLOYEES ALONE BY OFFERING POOR INCREASE AND EVEN NEGOTITING FOR MINOR DIFFERENCE IN AMOUNTS.
PENSION OPTION AND 100% DA NEUTRALISATION TO PRE 01.11.2002 RETIRED EMPLOYEES/OFFICERS
Since the scales of bank and the government are more or less running in the same level the concept of pension introduced with some onerous clauses in the beginning. Around 60% of the staff accepted . Rest of the people might have feared for the onerous clauses or the then prevailing high interest rate .When the clause was withdrawn subsequently one more option should have been given. OK . Government is magnanimous enough in agreeing for one more pension option now to all the left out employees. When banks are making good profits and they are not seeking government grants why in and each every stage IBA is creating bottlenecks, nobody is understanding.
When last settlement was signed and full neutralization of DA was introduced wef 01.05.2005, unions /IBA silently omitted to cover the 100% neutralization scheme to pre 01.11.2002 pensioners. Why ? No body is there to represent the case. It was referred to the parliamentary committee and they agreed in principle. Why IBA can not suggest it and automatically extend the benefit to the senior bankers who toiled for growth of the industry to this level.
Hence I earnestly request the top echelons of the government to be liberal in the matter of bank employees wage revision and do justice .
I also request you to instruct IBA suitably to immediately accept full DA neutralization to pre 01.11.2002 pensioners.
K BALASUBRAMANIAN RETIRED SEBNIOR MANAGER VRS 2000 PENSION OPTEE
Bank employees negotiations /pension option /full neutralization of DA to pre 01.11.2002 pensioners is not yet settled in spite of the assurance given in the parliament somewhere in the same time during last year Every one knows very well that the implementation of sixth pay commission to central government employees has started a wage war throughout the country . The governments acceptance tantamounts to determination of /standardization of salary levels for the different cadres. GOOD GESTURE.
After that several state governments has voluntarily agreed to implement the recommendations by creating huge debt burden. OK. GOOD
Government has accepted the liberal recommendations to public sector undertakings even better than pay commission because they are classified under public sector and not covered by the pension scheme .Here also the increase is not proportionate to the profit earned etc but on adhoc basis only by agreeing certain salary levels to the position they are holding. VERY GOOD GESTURE.
Then UGC Scales, Judiciary recommendations, ONE RANK ONE PENSION, everywhere 100% justice has appeared to have been done. EXCELLENT.
WE ARE VERY SAD TO BRING YOUR KIND ATTENTION THAT THE SAME TYPE OF PATRONAGE HAS NOT BEEN EXTENDED TO THE BANK EMPLOYEES WHO WERE BETTER PAID TILL 1996.
WHAT IS THE REASON FOR YOUR NEGLECTING THE EMPLOYEES AS UN TOUCHABLES IN THE SOCIETY EVEN THOUGH THE CONCEPT OF UNTOUCHABILITY WAS ERADICATED TOTALLY .
PLEASE APPLY YOUR CONSCIOUSNESS AND THINK FOR A WHILE.
ACHIVEMENTS OF THE BANKING INDUTRY :
BANKS ARE WITH STANDING THE RECESSION AND WORLDWIDE FINANCIAL CRISIS LIKE A SOLID ROCK
THEY ARE EARNING GOOD NET PROFIT AND TRANSFERRED MORE THAN 50000 CRORES TO THE EXCHEQUER SINCE 2006
HUGE WRITTEN OFF FROM TIME TO TIME WERE SILENTLY ABSORBED WHICH IS VERY HIGH WHEN COMPARED THE WAGE COST.
Which sector the government wants to classify them . If it is under public sector mean s more than 100% salary hike has to be given. So forget about that .Since the implementation of PILLAI COMMITTEE DURING 1979 as standardization of wages BANK OFFICERS SALARY LEVEL WERE BROUGHT DOWN TO CLASS I OFFICER LEVEL. So the then government and the political leadership has agreed that the level of starting pay for officers should be the same. Whether it is bank or government or college lecturer etc.
It is the generous package given under fifth pay commission and sixth pay commission and introduction of new item called grade pay only made the salary to a very good level which has created a good purchasing power among the government/public sector employees.
Every person who is following the financial position of the government also knows that this bonanza to the employees /pensioners has created huge fiscal deficit in addition to other reasons like oil subsidy, stimulus package etc.
Now coming to the banking sector you are the major share holder and hence employer who has to take care of the employees like government employees /public sector employees. The matter should not be left to IBA/UFBU who failed miserably in coming to understanding through collective bargaining. It lost its relevance because the attitude of the government changed in favour of the employees and hence simply by a notification you can implement the pattern of sixth pay commission scales to OFFICERS WHO ARE NOT COVERED UNDER INDUSTRIAL DISPUTE ACT.JUST LIKE PILLAI COMMITTEE SCALES.
Then for award staff suitable parity can be maintained and IBA can be instructed to work out the scales along with the award staff union and settlement can be arrived even before the end of this month. This will give much needed relief to nearly eight lakhs serving employees and officers who lost hope in the negotiation drama going on and expecting some type of magic formula. HAVING AGREED FOR LIBERALISED WAGES TO NEARLY TWO CRORES OF STATE /CENTRAL GOVERNMENT /QUASI GOVERNMENT/PUBLIC SECTOR EMPLOYEES WHY VICTIMISING BANK EMPLOYEES ALONE BY OFFERING POOR INCREASE AND EVEN NEGOTITING FOR MINOR DIFFERENCE IN AMOUNTS.
PENSION OPTION AND 100% DA NEUTRALISATION TO PRE 01.11.2002 RETIRED EMPLOYEES/OFFICERS
Since the scales of bank and the government are more or less running in the same level the concept of pension introduced with some onerous clauses in the beginning. Around 60% of the staff accepted . Rest of the people might have feared for the onerous clauses or the then prevailing high interest rate .When the clause was withdrawn subsequently one more option should have been given. OK . Government is magnanimous enough in agreeing for one more pension option now to all the left out employees. When banks are making good profits and they are not seeking government grants why in and each every stage IBA is creating bottlenecks, nobody is understanding.
When last settlement was signed and full neutralization of DA was introduced wef 01.05.2005, unions /IBA silently omitted to cover the 100% neutralization scheme to pre 01.11.2002 pensioners. Why ? No body is there to represent the case. It was referred to the parliamentary committee and they agreed in principle. Why IBA can not suggest it and automatically extend the benefit to the senior bankers who toiled for growth of the industry to this level.
Hence I earnestly request the top echelons of the government to be liberal in the matter of bank employees wage revision and do justice .
I also request you to instruct IBA suitably to immediately accept full DA neutralization to pre 01.11.2002 pensioners.
K BALASUBRAMANIAN RETIRED SEBNIOR MANAGER VRS 2000 PENSION OPTEE
Friday, February 12, 2010
BUDGET SUGGESTIONS
BOLD INITIATIVE NEED OF THE HOUR INSTEAD OF INCRAESING DEBT BURDEN
PERSONAL TAXATION
IT EXEMPTION THRESHOLD LIMIT SHOULD BE INCREASED TO 2 LAKHS WITH SUITABLE ADJUSTMENTS FOR WOMEN/SENIOR CITIZENS TO SAVE FROM THE RUN AWAY FOOD INFLATION AS THE EXPENDITURE HAS GONE UP BY MORE THAN 60% SINCE 2008
BOOSTING REVENUE
STIMULUS PACKAGAE ANNOUNCED DURING 2008-09 MAY BE WITHDRAWN COMPLETELY TO THE LUXURY SECTOR AND PARTIALLY TO TRANSPORT AND OTHER SECTORS THE FISCAL DEFICIT IS AT THE PEAK SINCE INDEPENDENCE BECAUSE OF THE OVER ALL INCREASE IN BOTH PLAN AND NON PLAN EXPENDITURE
SPECIAL ADVALOREM TAX ON LUXURY IMPORTS CAN BE INTRODUCED AS A REVENUE RAISING MEASURE THE LUXURY SECTOR CAN ABSORB IT
NO FRESH CONCESSIONS NEED TO BE ANNOUNCED IN EXCISE DUTY REVNUE NEUTRAL/NO SACRIFICE ON EXISTING REVNUUES
POSTOPONING FISCAL DEFICIT
IMPOUNDING OF ADDITIONAL DEARNESS ALLOWANCE BY AT LEAST 50% TO THE PUBLIC SECTOR/ GOVERNMENT SECTOR PAYABLE WEF 01 JANUARY 2010 AT LEAST DA WILL GO UP BY 15% OF THE REVISED SCALES DURING THIS YEAR AND IMPOUNDING 50% WILL HAVE A IMPACT BOTH ON THE MONEY SUPPLY AND POSTPONING IF NOT PRUNING FISCAL DEFICIT NOT ONLY TO CENTRAL GOVERNMENT BUT ALSO RELIEF TO STATE GOVERNMENTS
SAVING STIMULUS
A BOLD INITIATIVE CAN BE TAKEN BY OFFERING A HIGHER COUPON RATE OF 9 % INTREST FREE INFRA STRUCTURE BONDS FOR A MATURITY PERIOD OF 10 TO 15 YEARS BANKS CAN ALSO ISSUE THIS TYPE OF BOND FUND COLLECTED CAN BE EXEMPTED FROM CRR/SLR REQUIREMENTS MUCH RELIEF TO FIXED INCOME HOLDERS AGAINST THIS RUN AWAY FOOD INFLATION
BOLD STEP TO EXEMPT INTEREST INCOME
GOVERNMENT AT ONE STROKE CAN TOTALLY EXEMPT INTEREST ON DEPOSITS FROM APPROVED FINANCIAL INSTITUTIONS LIKE BANKS NBFC ETC AND INSTEAD CHARGE TO START WITH 5 % OF THE INTEREST PAID BY BANKS BASED ON THEIR BALANCE SHEET AS INTEREST TAX TO OFFSET THE LOSS IN REVENUE FORM 15G AND 15 H CAN GET GET AUTOMATICALLY ABOLISHED SO THAT THE DEPARTMENT CAN USE THE SCARCE MANPOWER ON BIG TICKET RETURNS BANKS CAN BE ASKED TO ALIGN THE RATES SUITABLY OR TO ABSORB THE EXPENDITURE
SALE OF GOLD THROUGH BANKS TO RETAILERS
GOVERNMENT CAN IMPORT DUTY FREE GOLD THROUGH NMDC OR PERMIT GOLD IMPORT BY BANKS OR OTHER BODIES AND MAKE AVAILABLE TO THE PUBLIC AT THE RATE ATLEAST 10% BELOW THE MARKET PRICE CRORES OF MONEY CAN BE AVILABLE FOR DEVELOPMENT PROJECTS GOVERNMENT CAN USE FOREIGN EXCHANGE RESERVES FOR IMPORT OF GOLD. THIS IS NON INFLATIONERY BECAUSE MONEY SUPPLY IS GETTING CURBED OF COURSE SUITABLE METHOD TO BE EVOLVED FOR SMOOTH SALE AND REACHING RETAILERS
PETROLEUM PRODUCTS
PRICES SHOULD BE DECONTROLLED FOR KEROSENE AND COOKING GAS SUBSIDY CAN BE MADE AVILABLE TO THE BPL SECTION BY INTRODUCING CASH VOUCHERS TO BE EXCHANGED FOR KEROSENE SUBSIDY SUITABLE MECHANISM TO BE EVOLVED
PERSONAL TAXATION
IT EXEMPTION THRESHOLD LIMIT SHOULD BE INCREASED TO 2 LAKHS WITH SUITABLE ADJUSTMENTS FOR WOMEN/SENIOR CITIZENS TO SAVE FROM THE RUN AWAY FOOD INFLATION AS THE EXPENDITURE HAS GONE UP BY MORE THAN 60% SINCE 2008
BOOSTING REVENUE
STIMULUS PACKAGAE ANNOUNCED DURING 2008-09 MAY BE WITHDRAWN COMPLETELY TO THE LUXURY SECTOR AND PARTIALLY TO TRANSPORT AND OTHER SECTORS THE FISCAL DEFICIT IS AT THE PEAK SINCE INDEPENDENCE BECAUSE OF THE OVER ALL INCREASE IN BOTH PLAN AND NON PLAN EXPENDITURE
SPECIAL ADVALOREM TAX ON LUXURY IMPORTS CAN BE INTRODUCED AS A REVENUE RAISING MEASURE THE LUXURY SECTOR CAN ABSORB IT
NO FRESH CONCESSIONS NEED TO BE ANNOUNCED IN EXCISE DUTY REVNUE NEUTRAL/NO SACRIFICE ON EXISTING REVNUUES
POSTOPONING FISCAL DEFICIT
IMPOUNDING OF ADDITIONAL DEARNESS ALLOWANCE BY AT LEAST 50% TO THE PUBLIC SECTOR/ GOVERNMENT SECTOR PAYABLE WEF 01 JANUARY 2010 AT LEAST DA WILL GO UP BY 15% OF THE REVISED SCALES DURING THIS YEAR AND IMPOUNDING 50% WILL HAVE A IMPACT BOTH ON THE MONEY SUPPLY AND POSTPONING IF NOT PRUNING FISCAL DEFICIT NOT ONLY TO CENTRAL GOVERNMENT BUT ALSO RELIEF TO STATE GOVERNMENTS
SAVING STIMULUS
A BOLD INITIATIVE CAN BE TAKEN BY OFFERING A HIGHER COUPON RATE OF 9 % INTREST FREE INFRA STRUCTURE BONDS FOR A MATURITY PERIOD OF 10 TO 15 YEARS BANKS CAN ALSO ISSUE THIS TYPE OF BOND FUND COLLECTED CAN BE EXEMPTED FROM CRR/SLR REQUIREMENTS MUCH RELIEF TO FIXED INCOME HOLDERS AGAINST THIS RUN AWAY FOOD INFLATION
BOLD STEP TO EXEMPT INTEREST INCOME
GOVERNMENT AT ONE STROKE CAN TOTALLY EXEMPT INTEREST ON DEPOSITS FROM APPROVED FINANCIAL INSTITUTIONS LIKE BANKS NBFC ETC AND INSTEAD CHARGE TO START WITH 5 % OF THE INTEREST PAID BY BANKS BASED ON THEIR BALANCE SHEET AS INTEREST TAX TO OFFSET THE LOSS IN REVENUE FORM 15G AND 15 H CAN GET GET AUTOMATICALLY ABOLISHED SO THAT THE DEPARTMENT CAN USE THE SCARCE MANPOWER ON BIG TICKET RETURNS BANKS CAN BE ASKED TO ALIGN THE RATES SUITABLY OR TO ABSORB THE EXPENDITURE
SALE OF GOLD THROUGH BANKS TO RETAILERS
GOVERNMENT CAN IMPORT DUTY FREE GOLD THROUGH NMDC OR PERMIT GOLD IMPORT BY BANKS OR OTHER BODIES AND MAKE AVAILABLE TO THE PUBLIC AT THE RATE ATLEAST 10% BELOW THE MARKET PRICE CRORES OF MONEY CAN BE AVILABLE FOR DEVELOPMENT PROJECTS GOVERNMENT CAN USE FOREIGN EXCHANGE RESERVES FOR IMPORT OF GOLD. THIS IS NON INFLATIONERY BECAUSE MONEY SUPPLY IS GETTING CURBED OF COURSE SUITABLE METHOD TO BE EVOLVED FOR SMOOTH SALE AND REACHING RETAILERS
PETROLEUM PRODUCTS
PRICES SHOULD BE DECONTROLLED FOR KEROSENE AND COOKING GAS SUBSIDY CAN BE MADE AVILABLE TO THE BPL SECTION BY INTRODUCING CASH VOUCHERS TO BE EXCHANGED FOR KEROSENE SUBSIDY SUITABLE MECHANISM TO BE EVOLVED
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