Friday, April 9, 2010


 AIBOC has issued detailed  circular clarifying various points regarding 9th BPS. The circular is reproduced below


    We are receiving a number of SMS and e-mails from our members on the understandings reached with the IBA on 3rd April 2010, as regards distribution of wage load of 17.5% among various components of salary and allowances.  In this connection we would like to clarify that,

a)    UFBU has agreed to accept 17.5% wage increase w.e.f 01.11.2007, as per MoU signed on 27th November, 2009. The issue cannot be reopened now.
b)    The 6th Pay Commission recommendations for wage revision of Central Government employers are effective from 01.01.2006, for a term of 10 years. In case of Bank employees it is for a period of 5 years from 01.11.2007.  The distribution of wage load for Central Government employees is not uniform. A meager increase of about 15-20% for lower level officials and higher increase at Secretary Level, with different pay bands is followed for them. Where as in our case we have tried to maintain equidistribution of load factor.
c)    In case of Central Government employees, they will first arrive at the proposed revised scales and allowances and there is no restriction as regards cost of wage bill.  The entire cost will be debited to the National Ex-chequer of the Government of India.
d)    In the case of Bank employees, Government of India first fixes the limit for percentage increase and distribution of the increased load among various components of salary and allowances, is the responsibility of IBA and Unions/Associations.
e)    Therefore, it is a herculean task to balance the demands of IBA and the Unions in drawing the revised scales of officers upto scale VII.
f)    During the current bipartite the demand of the IBA was to distribute higher load to Officers of SMGS IV and above, whereas we demanded equitable distribution of the load to all scales/grades, as higher load to senior grade officers and above will affect the scales of junior officers.
g)    However, keeping in view the higher risk and responsibility of senior executives, we suggested to the IBA to get extra cost over and above 17.5% sanctioned from the Government of India to meet their demand.  The IBA did not accept our suggestion and was bent upon loading higher increase in scales of senior executives.  We are successful in minimising such higher load.

2.    Our members will agree that, the issues being sensitive and the cost involved for higher loading at a senior level officer being barely few crores, breaking the negotiations on this point would have divided our membership. The frustration level at grass root level membership for early settlement is known to everyone. Therefore, Negotiating Committee after due deliberations, has agreed to come to an understanding with IBA on distribution of wage load of 17.5% in salary and allowances. There may be a few aberrations/anomalies as regards revised scales etc., which we will take up with the IBA during our further discussions. There is no hurry in coming to premature conclusions and resorting to vilification campaign to belittle the efforts of the Confederation which may divide the membership. Basic principle of Trade Union is “one for all, and all for one”.  We hope our enlightened members will appreciate the genuine constraints faced by the leadership at negotiating table.

3.    Comrades, we welcome your constructive feedback, but do not appreciate immature reactions, which affect the unity of the great organisation, AIBOC.

With greetings,
Source:  AIBOC website

1 comment:

  1. (a) Association had enough time negotiate the wage increase.

    (b)Central government employees will enjoy 40% increase for next 10 years. For bankmen first next 5 years it will be 17.5%. After that considering the present negotiating skills and capacity of associations we many assume the wage increase will be 20 to 22%. It is far below the pay perks of central government employees.

    (b) Association has to substantiatr this with figures.
    (c)compared to The profit positions of 43 banks put together wage increase of 17.5% is negligible.
    (d) Association says that Central government firs fixes wage increase limit and then asks IBA/Associations to distribute the increase among various heads. When this wage increase is not negotiable Associations/IBA simply could have finished the work of allocation within 2 or 3 months from 1-11-2007 and saved lakhs of bank wages instead of asking them to go on strike for wage increase limit which has already been negotiated.
    Since last 10 years associations/unions totally neglected pensioners.