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