PAY COMMISSION OR BIP[ARTITE WHICH IS BETTER

PAY COMMISSION OR BIPARTITE WHICH IS BETTER


I am trying to analyse the matter with whatever little knowledge in this regard and my interest towards the salary data since I joined in the bank during 1976.
During 1970s and 1980s bank bipartite settlements were superior because of the increment pattern. The first stage and last stage variation is around 300% With DA neutralization and with increase of consumer price index, gap between the LDC/UDC of government employees and bank clerks were gone up. Just as we commented about IT employee’s salary in the early 2000 in the marriage market, bank clerks were the target of CARTOONS and JOKES in the Tamil magazines. Officer’s pre 1979 scales were also high. IN PNB starting scale of officers was 700. CLASS I OFFICERS /LECTURERS scale was 400-40-800-50-1600
Having worried about the disparity in the CLASS I OFFICERS SALARY when compared to the BANKS SALARY (some banks like canara bank, bank of India, bank of Baroda and PNB scales were superior and in some banks like INDIAN BANK, IOB scales were inferior) the GOVERNMENT appointed Pillai committee
And the associations were forced to accept in consensus because of the benefit accrued to many of the bank officers. If they have shown the resistance, the officers union belongs to the banks, which are paying less salary, are ready to split and accept the committee recommendation, which is superior. From that time onwards industry wide settlement has started for bank officers also. For your information I resigned the college lecturer job to join as a clerk in INDIAN BANK because of the excellent promotional opportunities the moment CAIIB is completed. MY lecturer salary was 470 total. Clerical graduate salary was 512.
BANK union leaders were the most respected entity. Comrade Prabahtkar of AIBEA, LV. Subramanian of SBI the unquestioned leader of AICOBOO (ALL INDIA CONFEDERATION OF BANK OFFICERS ORGANISATION). From that only the major unit of AIBOC was formed due to difference of opinion with the then leadership. One great leader of AIBOC is Sri R.N Godbole.The superiority of bank employees/ officers reflected in the society till 1986.
IV TH PAY COMMISSION of 1986 saw a sea change and started moving in a vertically upward direction. This was not because of the bargaining power of the central government employees union but for the ATTITUDE OF THE GOVERNMENT HEADED BY LATE SRI RAJIV GANDHI. He was the Architect of five-day week concept. His mantra that government employees must be paid well was received well. A 30% across the board increase made the LDCS/UDCS of central government to narrow down the gap that prevailed with bank clerks.
Class I officers starting salary was 2200. In the 1997 settlement we fixed our salary as 2100.OK no problem.
V TH PAY COMMISSION of 1996 also gave liberal bonanza of around 30-35% increase. The government accepted only positive features of the pay commission.
The starting salary of Class I officer was 8000.
We had an intermediate settlement and the subsequent
settlement coincided with V th pay commission had our starting salary fixed as 7100.This also can be swallowed. In the name of cost IBA cleverly denied the parity based on which the salaries were standardized during 1979. Everybody forgot the history. We, rather we call as our leaders were very much happy with 13 to 15% issue once in five years as that was the standard yardstick we had in previous settlement which made them to think their bargaining powers were intact. 100% true if we not going to take the relativity theory.
CLINCHING OF PENSION ISSUE during 1993 was a very good historic achievement. Here also when the regulation itself was accepted based on the central governments pension scheme, several salient features like pension updation, family pension was not copied down exactly. with the result the family pension prevailing is poor and not comparable. They are denying pension up dation even to RBI.
Due to certain onerous clauses in the pension scheme like forfeiture of pension on participating strike, break in service etc. some few thousands might not have opted for. Majority among the PF optees had taken the AIBOC/BEFI circulation of pamphlets with an advice to stay away from pension. Whatever may be the reason, when the IBA withdrew the break in service/forfeiture clause, one more final option should have been given as a principle of natural justice and even legally as one of the terms and conditions of pension regulation is getting altered. Unions were not aggressive enough and called for strike on this specific issue.
Having allowed the issue to cool enough, it was very difficult to make it red-hot and even though a specific MOU was signed during 2008 to sort out the pension issue with in 90 days, no follow up was made. GOLDEN OPPURTUNITY prior to the announcement of loksabha polls was missed. If not wage revision at least pension option should have been settled without cost because of the proximity of the left with the power center.
Having seen that IBA/GOVT was so adamant slowly the talk of cost sharing. , appointment of actuaries gained momentum. When the industry as a whole has earned profit of more than 50000 crores during the last three years, the issue would have been clinched without cost had the appropriate time was chosen.

The major difference among the bank employees/officers and government employees/classI officers are coming from the VI th pay commission recommendations.

VI TH PAY COMMISSION RECOMMENDATIONS;

Starting pay of 15600 plus grade pay of 5400 making the entrypoint basic itself to 21000. Combining with DA rate of 35% ( updated to Jan 2010 probable figures of 8 % increase in DA )PLUS HRA of 30% making salary levels. Starting around 35000 cca transport allowance, education allowance not included.
As against this our most optimistic projection of 16000( it may happen or may not +29% DA+8% HRA ,we are lagging behind by 7000. Since officers are getting lease based accommodation , persons who are availing the lease can get the benefit of higher HRA indirectly. It is the officers who are occupying the own houses and ENTIRE AWARD staff community are getting affected. In these spiraling rentals single digit HRA is most humiliating for the people who are not getting lease based accommodation. Grade pay upto a maximum of 12000 as the acdre goes up is not available for bank staff both officers and clerks.

If 16000 starting and 60000 ending materializes, then only allowances like grade pay , improved HRA for all , other improvements may be pending which should be taken in 2012 settlement. UFBU should get 30 to 40% in 2012 settlement so as to match the pay commission . Cost of pension which is an irritating concept should be given a go bye in 2012 and pension up dation should be taken up .Only if we equalize with the VI th pay commission we can think which is better.

Government financial position will be better known during 2016 , and if it finds it became unmanageable , then VII th pay commission may come in time or it may get delayed indefinitely, to be decided by the then political leadeship at that time. So instead of waiting IF IBA OFFERS INTOTAL PARITY IN ALL RESPECTS THERE IS NOTHING WRONG IN ACCEPTING A 8 YEAR SETTLEMENTS AS FOR AS OFFICERS ARE CONCERNED.IT CAN BE SYNCHRONISED WITH 31.12.2015. WHATEVER GOVERNMENT DECIDES FOR THEIR OFFICERS wef 2016 OR SUBSEQUENTLY can be made automatically applicable to bank officers also.
As for as award staff is concerned the clerical stages should be extended to atleast 25 from the present 19. If they want to give some more responsibility clerical after 15 years of service can be designated as SENIOR CLERKS like UDC or can be termed as HIGHER GRADE ASSISTANTS. IF IBA accepts 8000 starting and moving upto 28000 or 30000 with separate grade pay /special allowances for cash etc as per the present practice, then there is nothing wrong in accepting 8 year settlement. Since clerks in the financial sector are taking more risk oriented jobs
STARTING PAY CAN BE 50% of the starting pay of the officers.
Ending pay can be 40% of the maximum pay applicable to the general manager.
Bank clerks should be paid more than UDCs in their senior level. Starting can be as that of LDC .
IN FUTURE SETTLEMENT IF THIS TYPE OF PATTERN IS FOLLOWED CLERICAL SALARY FIXATION WILL NOT POS E ANY PROBLEM AS THE RELATIVE DIFFERENCTIAL WITH THE OFFICERS OF THEIR OWN INDUSTRY WILL BE MAINTAINED.

HENCE OVER ALL CONSIDERING THE GOVERNMENT CHANGE IN ATTITUDE I FEEL PAY COMMISSION WITH CERTAIN RELATIVITY THEORY FOR CLERKS RATHER THAN BIPARTITE SETTLEMNET IS BETTER.
SINCE PUBLIC SECTOR EMPLOYEES ARE NOT COVERED BY THIS TYPE OF PENSION , GOVERNMENT HAS ALLOWED MORE INCREASE TO THEIR EMPLOYEES AND OFFICERS BETTER THAN VI TH PAY COMMISSISON. NO BIPARTITE. IT IS GOVERNMENTS LEGACY.
GOVERNMENT WILL AUTOMATICALLY RATHER THEY MAY LEFT WITH NO OTHER ALTERNATIVE AS THEY HAVE TO DEFINE AND FIT BANKING SECTOR EITHER IN THE GOVERNMENT CATEGORY OR PUBLIC SECTOR CATEGORY AND DEFINITELY NOT IN TRISANGU SORGAM CATEGORY.

AS A RETIRED PENSIONER WHO IS EXPECTING FULL DA NEUTRALISTION OR POSSIBLE PENSION UPDATION IN FUTURE IF AT ALL COMES , I FEEL ONLY GOVERNMENT APPOINTED AUTHORITY WILL DECIDE WELL THEN THIS IBA WHO IS INDEPENDENT BODY ONLY I N PAPER AND NOT ACTUALLY SO. IT IS NOT SAFE IN THE HANDS OF IBA.

K BALASUBRAMANIAN

DEMAND FOR 100%NEUTRALISATION TO PRE 01.11.2002 RETIRED PENSIONERS

Dearness Relief to pensioners who retired on or after 1st day of April,1998.

BASIC PENSION Dearness relief for the months Slabs
August 209 to January 2010 442
Average Index 3454
(i) Upto Rs.3550
106.08 per cent.

(ii) Rs.3551 to Rs.5650 Rs. 3765.84 plus 88.4 percent
of basic pension in excess of Rs.3550.00

(iii) Rs.5651 to Rs.6010 Rs. 5622.24 plus 53.04 percent
of basic pension in excess of Rs.5650.00

(iv) Above Rs.6010 Rs. 5813.18 plus 26.52 percent
of basic pension in excess of Rs.6010.00
Dearness Relief to pensioners who retired on or after 1st day of November, 2002.

Average Index (CPI) for quarter ended June 2009 3454
No. of Slabs 291
Rate of dearness relief on pension for the months August 2009 to January 2010 52.38% of basic pension

NB IF F ULL NEUTARLISATION MEANS 106.08 PERCENT FOR THE ENTIRE BASIC PENSION. FOR A BASIC PENSION OF 7000 (VII TH BIPARTITE SETTLEMENT)=7000*106.08=7420 DA
THE DIFFERENCE WILL BE APPROXIMATELY360+175+740=1275 SUBJECT TO CALCULATION ERROR

(5650-3551)*(106.8-88.4)% +(6010-5651)*(106.08-53.04)%+(7000-6010)*(101.08-26.52)
SIMILAR CALCULATIONS WERE THERE FOR VI VT TH BIPARTITTE ALSO WITH THE CORRESPONDING BASIC PENSION WITH THE THEN TAPPERED DA FORMULA.
ONE HUNDERED PERCENT DA NEUTRALISATION TO BANK EMPLOYEES WAS ALLOWED ONLY IN THE PRESENT SETTLEMENT WITH EFFECT FROM 01.11.2002 BUT WITH MONETEARY BENEFIT FROM 01.05.2005. NOW ALL BANK EMPLOYEES INCLUDING THE PENSIONERE RETIRED ON OR AFTER 01.11.2002 ARE ENJOYING FULL NEUTRALISATION. THE SAME SHOULD HAVE BEEN CONSIDERED FOR PRE 01.11.2002 RETIREES ALSO AT THAT TIME ITSELF. THESE ARE SOME OF THE GLARING EXAMPLES WHERE UFBU FAILED TO PRESS IBA FOR THE CORRECT THINGS TO BE DONE AT CORRECT TIME. HAD THE PENSION ISSUE WAS TAKEN SEPARATELY DURING 2008 ITSELF , THE MATTER WOULD HAVE SETTLED. SBI ALSO WOULD NOT HAVE PROTESTED MUCH . LINKING WITH WAGE REVISION AND COSTING OF PENSION ONLY LED THEM INTO GREAT TROUBLE.


LATER RETIRED OFFICERS ASSOCIATION HAD A REPRESENTATION WITH YTHE PARLIAMENTARY COMMITTEE COMPRISING OF MPS ATTACHED TO BANKING DIVISION AND THEY ALSO AGRRED TO CONSIDER THE AMTTER AND ALSO HAD A MEETING WITH IBA IN THIS REGARD. HENCE THERE MAY NOT BE MUCH DIFFICULTY FOR UFBU IN GETTING THE NEUTRALISATION AND RECTIFYING THE ANOMALY PREVAILING.


K BALASUBRAMANIAN

CONSTRUCTION OF CLERICAL PAY SCALES


EXISTING STARTING BASIC 4410
ADD 137 SLABS MERGER AT 2836 POINTS 1087
TOTAL 5597

ADD NOTIONAL 12.5% 700
TOTAL 6200

6200-300(3)-7100-450(2)-8000-650(5)-11250-700(3)-13350-800(4)-16550-1400-17950-800-18750

THIS STARTING PAY IS HIGHLY INADEQUATE.SINCE THERE IS MAXIMUM DISCONTENT AMONG JUNIORS AS THE SETTLEMENT IS ALWAYS IN FAVOUR OF THE SENIORS SINCE 1960, AN ATTEMPT CAN ME MADE TO NEUTRALISE A PART OF THE CRITICISM IN THE FOLLOWING WAY.

HUMP INCREMENT OF 1400 THAT MAY COME BY WAY OF STRAIGHTAWAY MERGER OF THE PRESENT PAY SCALES CAN BE BROKEN AS 800+600 AND THE 600 MAY BE ADDED IN THE FIRST STAGE ITSELF. ADDING 200 , THE STARTING BASIC MAY BE FIXED 7000.(IF IT IS MORE IN YOUR PROJECTION THEN ALSO THE STEP MAY BE CONSIDERED.)
7000-350(3)-8050-450(2)-8950-650(4)-11550-750(5)-15300-800(5)-19300

This will improve the overall take home pay from the stage one and no loss to any body .

PENSIONERS:
100% DA NEUTRALISATION TO PRE 01.11.2002 PENSIONERS SHOULD HAVE BEEN TAKEN UP DURING THE LAST TIME ITSELF. IT HAS TO BE ACHIEVED NOW . THESE PEOPLE ARE THE ONLY SECTION REMAINING WITHOUT 100% NEUTRALISATION . SINCE PARLIAMENTARY COMMITTEE HAS ALSO AGRRED FOR THE SAME THERE MAY NOT BE MUCH PROBLEM FROM IBA.

K BALASUBRAMANIAN RETIRED SENIOR MANAGER VRS 2001 SCHEME PENSION OPTEE

WHY THIS HUE AND CRYABOUT WAGE REVISION

WHY THIS HUE AND CRY EVERYWHERE FOR BETTER PAY PACKAGES?

IS ACCEPATANCE OF VI TH PAY COMMISION RECOMMENDATIONS RESPONSIBLE?

THE ANSWER TO THE ABOVE QUESTION IS UNDOUBTEDLY A BIG YES. IT IS DIFFICULT FOR ANYBODY TO DIFFER FROM THE VIEWS .

In todays business standard there was a news item that postal department may end with a deficit of 5632 crores mainly on account of salaries and allowances/additional pension pay out\cosequent to the implemenation of sixth pay commission recommendatios.

Already it was estimated that pension payment will exceed salary payment in the year 2013 for Department of railways. Now with the skyrocketing of inflation and consumer price index and with a projection of around 15 to 17% DA increase and with a much more liberal pension package accepted in the sixth pay commission ,the yaer will get definitely advanced to even 2012 or 2011 .

The fiscal deficit is alarmingly high even now and the government is considering withdrawing stimulus package and also plug the loopholes of expenditure and all other gimmicks of austerity which will not yield considerable savings.

Even persons like me who is having very little knowledge can guess things , then why the stalwarts of MINISTRY OF FINANCE and other planning commission experts have not foreseen this is a million dollar question. It was done deliberately to please 50 lakhs strong families of central government employees who forms an influential chunk in the electoral arithmetic.

All the state government employees started hue and cry and several state governments on their own has extended the package as such either beyond their means or at the cost of pruning /postponing development projects/welfare activities. All classes of quasi government employees in whichever department they are working has taken pay commissison as their bench mark and demnded parity and achieving the goal.

Air India employees made hue and cry when the incentive scheme was discontinued. They succeeded. Government has announced a package of 5900 crores to bailout AIRINDIA.

Latest GUJARAT GOVERNMENT EMPLOYEES gave an ultimatum for sixth pay commissison. After a series of agitations they may definitely get parity.

So in the whole country nearly 1.5 to 2 crores of government employees/quasi government employees got pay increase with sixth pay commission as bench mark. More than one lakh crores might have been shelved out as wage arrears apart from hefty take home pay increase of 40% ( GOVERNMENT CLAIM OF 21% INCREASE MAY BE TOTALLY WRONG ) which is the main villain for the inctrese in cost of living index.

GOLD PER FRAM 1700 MAY REACH DEFINITELY 2000 PSYCHOLOGICAL FIGURE

ESSENTIAL COMMODITIES PARTICULARLY DAL VARIETIES ARE DOUBLED NOT TO SPEAK OF VEGETBLES. TOTAL EXPENDITURE EXCLUSIVE OF RENT/ ELCCTRICITY WAS DOUBLED WHEN COMPARED TO 2007 PRICE LEVELS.

CENTRAL GOVERNMENT AND ITS TEAM ARE COLLECTIVELY RESPONSIBLE FOR PART OF THE PRICE RISE, SOME CAN BE ATTRIBUTED TO LESS PRODUCTION ETC.

MORE THA N 1.5 LAKHS CRORE ARE BEING SPENT FOR 2 CRORE GOVERNMENT EMPLOYEES AND PENSIONERSNOT FROM PROFIT BUT FROM TAXES /PUBLIC DEBT/FISCAL DEFICT ETC. LOAD WILL BE MUCH MORE DURING THE NEXT FISCAL YAER END.2010-2011.FISCAL INDISCIPLINE IS GOING ON AND THEY ARE MOOTING SALE OF STAKES IN PUBLCI SECTOR UNDERTAKINGS TO COMBAT THE DEFICIT ATLEAST BY FEW THOUSANDS CRORES.

THE PROVISIONS OF SIXTH PAY COMMISSION OF DA MERGER WITH BASIC ONCE IT CROSSES 50% WILL BE ACHIVED BY EARLY 2012 WHICH WILL CAUSE FURTHER HEAD ACHE.

WHEN THEY ARE GOING TO MAKE PROVISIONS FOR VERY HUGE BURDEN IN THE FORM OF WAGES ,PENSION,PENSION UPDATION ETC WHY 10 LAKS BANKEMPLOYEES AND PENSIONERS ARE GETTING SHABBY TRETAMENT.

LET UFBU ALSO SEEK PARITY WITH SIXTH PAY COMMISSSION FOR WHICH WE ARE VERY MUCH ENTITLED COMPARING THE ADDITIONAL RISK FACTORS ,LOAD SIX DAY WEEK ,FOR OFFICERS SEVEN DAY WEEK TECHNICALLY.AFTER SIGNING THE SETTLEMENT WHICH IS MAINLY FOCUSSED ON PENSION OPTION OUT OF FEAR LET THEM DEMAND A COMMISSION TO GO INTO ENTIRE QUESTION OF PARITY ON WHICH PILLAI COMMITTEE RECOMMENDATIONS WERE BUILT. ON EVERY PARAMETER BANK EMPLOYEES ARE BETTER PLACED FOR A HEFTY WAGE REVISION AND NOT LIKE THIS.

IF IBA IS NOT HEARING LET THEM DEMAND A WHITE PAPER FROM THE GOVERNMENT ON THE IMPLEMANTATION OF SIXTH PAY COMMISSION, MODALITIES TAKEN FOR ARRIVING SUCH LIBERAL WAGES.AND PLACE IT BEFORE THE PARLIAMNET AND EVRY BODY CAN KNOW THE LEVEL OF SALARIES ACCEPTED BY THEM TO THEIR EMPLOYEES WHEN COMPARED TO BANK WAGES.

OIL PRICE AND INTEREST RATE ARE TWO SENSITIVE ITEMS. BOTH ARE DIRECTLY/INDIRECTLY CONTROLLED BY THE GOVERNMENT/RBI. WHEN GOVERNMEMNT WANTS TO KEEP OIL PRICES LOW THEY ARE COMPENSATIONG THE OIL MARKETING COMPANIES BY WAY OF OIL BONDS RUNNING INTO THOUSANDS OF CRORES. LET THEM SANCTION INTEREST SUBVENTION /SUBSIDY TO GOVERNMENT SCHEME LOANSAND IMPOPRATANT SECTOR LOANS OF THE ECONOMY. LET THEM ALLOW THE BANKS TO INCREASE THE SERVICE CHARGES. WHY THE EMPLOYEES SHOULD BE PENALISED AS THOUGH SALARIES WERE DETERMINED BASED ON CAPACITY TO PAY. WHERE ALL OTHER SECTORS ARE GETTING THE CAPACITY. ?CONTRARY TO OTHER SECTORS BANKS ARE EARNING GOOD PROFITS AND SUBSTANTIAL PORTION OF THE AMOUNT GOES AS WRITE OFF.

IN WHATEVER WAY WE THINK OR ANALYSE THE PROBLEM ,WE DESERVE RATHER GOVERMNET SHOULD ALLOW LIBERAL WAGE REVISION ATLEAST ON PAR WITH THE GOVERNMENT EMPLOYEES IF NOT PUBLIC SECTOR EMPLOYEES. SINCE WE ARE GETTING PENSION WE CAN COMPARE OURSELVES WITH GOVERNMENT ONLY’

BASIC ALIGNMENT, GRADE PAY ,30%HRA, TRANSPORT AND EDUCATION ALLOWANCE ARE THE OTHER AREAS TO BE CONCENTRATED IMMEDIATELY AFTER THE SIGNING OF THE SETTLEMENT. IT SHOULD BE ACHIEVED ATLEAST BY .1.11.2012 . AIM SHOULD BE TOTAL PARITY ON 01.11.2012.

FULL NEUTRALISATION OF DA TO PRE 01.11.2002 PENSIONERS SHOULD BE TAKEN IN THIS SETTLEMENT ITSELF . PENSION UPDATION AS APPLICABLE TO CENTRAL GOVERNMENT EMPLOYEES SHOULD BE SANCTIONED AT LEAST FROM 01.11.2012 TO ALL PENSIONERS .

K BALASUBTRAMANIAN