Circular issued by AIBRF on the above subject is reproduced below.
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Ref:2017/22 Date.12.02.2017
Smt.
Kalpna Sisiodia
Assistant
Labour Commissioner (Central)
Mumbai
Madam,
Re: Proceedings of
24.01.2017
Re: Submissions of IBA
Re: Our Counter Reply
During the proceedings of 24.01.217 on
AIBRF representation on 100 per cent Dearness Relief, Indian Bank Association
(IBA), one of the parties to whom notices were issued had submitted its response
vide letter no. HR&IR/KSC/85/748/1742 dated 29.12.2016 which was taken on
record.
2.We below submit our counter reply on the
above submissions of IBA.
(a) In Para 2, IBA has stated that it has
entered in to settlement with unions in 1993 to introduce pension scheme in lieu of contributory PF in public sector
banks. In this regard we would like to clarify the pension scheme designed in
1993 was not only implemented in public sector banks but in private banks/
foreign banks who were members of IBA.
Further it is stated in Para 2 of IBA
letter that the pension scheme of 1993 implemented in public sector banks was
designed as per the provisions of the
section 19 of the Banking Companies (Acquisition and Transfer of Undertakings)
Act,1970. It clearly indicates that the pension scheme of 1993 applicable in
public sector banks is statutory in nature and is not merely contract between
two parties. It may also be stated in this regard that this pension scheme was
notified in the official Gazette of Government of India further confirming that
it is statutory in nature.
In view of the above legal position, all
the representations of the concerned parties need to be attended and dealt
accordingly and IBA can not be allowed to keep issues under carpet in the name
of absence of contractual obligation/ mandate.
IBA may please be asked to give their
response on the points raised above.
(b) In Para 4 of the letter, IBA has
confirmed that provisions of Pension Regulations have been amended from time to
time to meet requirement of employees/ pensioners. It indicates that IBA has
required mandate from member banks to consider and amend provisions of Pension
Regulations from member banks from time to time as per need of the time.
IBA may be asked to supply copies of the
mandates received from member banks which enabled it to negotiate and approve
various amendments in the past.
Further, it may be pointed that in settlement
dated 27.03.2000 IBA carried out amendment in Regulation No 35 reducing
entitlement towards basic pension of those retired between 1998 to 2002 from 50
per cent of last pay drawn to about 43 per cent of last pay drawn (
neutralisation at 1616 instead of 1684) destroying basic feature of the pension
scheme only for this group of pensioners in highly arbitrary and discriminative
manner. On getting adverse legal opinion as stated in the settlement of 2005 ,
IBA again amended regulation no 35 restoring original position for this group
of pensioners after lapse of 5 years and after causing huge financial loss to
those retired between 1998 to 2002. It indicates that IBA is in habit of
amending highly important provisions pension regulations in arbitrary and
discriminative manner at its whims and fancies and without following
the laid down procedure of 1970 act referred in Para 2 of IBA letter.
It may be further pointed out that on one
side, IBA amended the Regulation No 35 of pension regulations in settlement dated
02.06.2005 correcting the position in respect of entitlement towards basic
pension created in 2000 settlement and on another side it created fresh
discrimination in the matter of dearness allowance while introducing improved
DA formula under settlement dated 02.06.2005.
In view of the facts brought above, there
is guanine fear among lakhs of pensioners that IBA in future can carry out any arbitrary and discriminative
amendments in the pension regulations which can seriously affect interest/ rights
of pensioners adversely for its own reasoning and logic though not permissible
under law.
IBA may be asked to give its response on
the points raised above and we also approach you with request that necessary
checks and controls are prescribed including discussion with the
representatives of pensioners to prevent IBA from carrying out amendments in
arbitrary manner affecting their rights rights adversely.
(c) In Para5 of the above referred letter,
IBA has given DA formulas payable to pensions retired under different blocks of
settlement.
In this regard, we wish to invite your
attention on the submission made by us under our letter no 2017/01 dated
24.01.2017 wherein we have specifically brought out that provisions of the
settlement dated 02.06.2005 is silent as how improved DA formula incorporated
under clause No 7(2) of the settlement will be applicable to the pensioners.
IBA has stated in Para 5 of the letter DA
rates payable to those
retired between 1.11.1997 to 31.10.2002. We
do not find the above rates either in the Appendix- II of the Pension
Regulations or in the Settlement dated 02.06.2005. As pointed out in our submission dated
24.01.2017, only in the settlement dated 27.10.2010, almost after lapse of 5
years, clause No 16(3)(i) was incorporated
giving the DA rates applicable to those retired prior to 1.11.2002 with retrospective effect from 01.022005 with
the aim of legalising the decision taken in arbitrary manner in respect of DA
payable to the pensioners of this group.
In view of the above IBA may be asked to
give their response on the point at what level the decision was not taken for
non-payment of improved DA formula as per provisions of settlement dated
02.06.2005 to those retired before November 2002, what was the reason for incorporating
clause 16(3) (i) in the settlement dated 27.10.2010 after lapse of 5 years and legality
of decision of 2005 in respect of 100 DA.
(d) In response to Para 8 of IBA letter,
your kind attention is invited on Annexure 6 submitted on 24.01.2017.
(e) In response to Para 9 of IBA letter, we
would like to draw your kind attention the factual position that Indian Banks’
Association has been not only actively involved in negotiating and finalising
wage settlements for employees including the pension scheme for last several
years but also signing the settlements with the Unions which are binding on all
parties. Further it has been issuing various communications to member banks
giving direction for implementation of various provisions of the settlements.
It is also seen that it has jointed various WPs/ SLPs/ Legal cases in different
courts/ legal forums including CLC to defend provisions of the settlements
signed.
In view of the above, IBA statement “ IBA
is not employer of workmen/ officers of these banks. Thus, IBA is not a direct
party to any industrial dispute including that of the case of All India Bank
Retirees’ Federation even if said Federation is registered under Trade Union
Act,1926” is not maintainable and has been made to escape from its accountability
toward AIBRF and its membership
3. We also request you to ask IBA to give
point wise reply to the various issues raised by us in our submission No. 2017/01 dated
24.01.2017.
4. We now approach you with the request to
issue necessary direction to IBA to ask member banks to pay 100 per cent DA to
all those retired before November 2002 with arrears and interest at reasonable
rates for delayed period.
With Respectful Regards,
Yours Sincerely,
( S.C.JAIN )
GENERAL SECRETARY
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