We reproduce hereunder AIBOC etter
dated 08.03.2019, sent to Shri Arun Jaitley, Hon’ble Finance Minister, Govt. of
India
Text of letter no. AIBOC/2019/32 dated
08.03.2019
The Hon’ble Finance
Minister
Government of India
North Block
New Delhi - 110001
Respected Shri Arun
Jaitley ji,
11TH BIPARTITE
WAGE NEGOTIATION IN BANKING SECTOR AND OTHER RELEVANT ISSUES
At the outset, we wish to convey our happiness to the
Ministry of Finance for paving the way for the updation of pension of RBI
employees, which is the fulfilment of a long standing demand. We also note that
another pension option has been put in place for the LIC and GIC employees,
which is indeed a positive development. Such developments have offered a ray of
hope for the several lakh of retirees of PSU Banks, who are waging a long
battle for updation of pension and revision of family pension. While we have
been given to understand that there is some forward movement in clearing the
much needed family pension issue, our pensioners are still left in the lurch as
regards updation of pension, which has not happened many years now. This is to
bring to your kind attention that though the Ministry of Finance had advised
the Indian Banks’ Association (IBA) well in time to complete the process of
wage negotiation in the banking sector with the workmen’s Unions / Officers’
Associations in a time bound manner, no much progress in this regard has taken
place so far.
02. Here we would wish to draw your kind attention to
the fact that in case of bank pensioners, basic pension is frozen on the date of superannuation, and it
is never revised consequent upon the succeeding bipartite settlements. Worst
kind of discrimination is prevailing amongst different group of retirees in the
matter of payment of Dearness Allowance. Pension on Special Pay is denied in
the 10th bipartite settlement. Although Bank Pension Regulation is
framed on the pattern of RBI / Central Govt. Pension Scheme, no steps have been
taken to remove the discrimination. A
section of SBI pensioners are also denied pension @50% of basic pay. On the other
hand, the Department of Financial Services (DFS), Ministry of Finance has
accorded approval for ‘Revision of Pension of RBI Employees’, in the recent
past, as per which a notional increase of 10% in pension plus Dearness
Allowance with each of the three wage revisions in 2002, 2007 and 2012 has been
approved. This has resulted in an overall increase in basic pension of all
sections of pensioners retired before 01.11.2002. But unfortunately, revision
of pensions in banking industry, which was a residual issue as per the ‘Record
Note’ dated 25.05.2015 signed by all parties in the settlement, has not so far
been opened despite repeated reminders from the trade unions of banks. Similarly, family pension to the spouse of the deceased employees continues to be too meager to lead a minimum level of dignified life.
03. We are also constrained to bring to your attention
that the Bi-partite wage talks have hit a roadblock due to the regressive stand
of IBA in restricting mandate upto Scale-III cadre only. We hope it would not be out of place to mention here
that in the past as many as on 8 successive occasions, i.e. in 1979, 1984,
1989, 1995, 2000, 2005, 2010 and 2015, ‘Joint Notes’ had been signed between
IBA and the Officers’ organisations, which covered wage revision and service
conditions for all Scales of Officer employees (i.e. from Scale I to Scale VII) in
line with one of the principal recommendations of Pillai Committee Report (PCR)
of 1979. In short, wage revision for all Scales of Officers of the banking
Industry from Scale I to Scale VII is a time tested practice of wage
negotiation. Under the circumstances, we did not find any reason as to how 5
Banks (viz. State Bank of India, Bank of Baroda, Punjab National Bank, Union
Bank of India and Indian Bank) could refrain from giving ‘unconditional (i.e. full) mandate’, thereby
excluding officers in Scale IV and above from the wage negotiation process, while as many as 14 out of 19 public sector banks have given their full
mandate to IBA. Eventhough we had from the very beginning requested the
Negotiating Committee of IBA to ensure that all the member banks should submit
their full mandates, IBA took an unfortunate stand that it was the decision of
the individual banks. Since there is no point in continuation of talks without
full mandate for all Scales of Officers, All India Bank Officers’ Confederation (AIBOC) had taken a conscious decision of excusing
themselves from the proceedings of the Negotiating Committee Meeting during the
talks held at Mumbai on 30.11.2018. Thereafter, AIBOC along with NOBO did not
take part in the talks held on 2nd February and 21st
February, 2019. We again have been given to understand that an offer has been
floated on 21st February, 2019 by IBA to extend the mandate upto
Scale V. However, we again like to make our stand clear that for the wage talks
to progress unhindered, we need clear and unconditional mandate. We also
fervently request you to advise the IBA suitably to have negotiations on
improvements in Pension and Family Pension.
04. Keeping in view the scientific practices
prevailing across the countries, the demand for Five days week was originally
placed in the 10th BPS, when 2nd and 4th
Saturdays were declared as holidays. At present, it has become a priority,
which is likely to bring many positive effects, such as increased productivity,
improved job satisfaction and morale, decreased absenteeism,
reduced energy costs and work-life balance. There is acute shortage of staff at
branches, which has increased workload manifold and causing angst and
frustration amongst bank officers, especially the new generation. A positive
move in this regard would be hailed by one and all. The matter may please be
addressed at the earliest.
05. We also urge upon your good office to restore the
Old Defined Benefit Pension scheme and scrap the National Pension System, which
has been implemented in Banks since August, 2010. There is tremendous
resentment amongst the new recruits, who want restoration of the Old Pension
Scheme.
06. We also invite your kind
attention to the Judgment delivered by Hon’ble Supreme Court on 28th
February, 2019 in Civil Appeal No. 6221 of 2011 filed by Regional Provident
Commissioner (II) West Bengal, wherein it was held that the Special Allowance
payable in all these concerns to all the employees without exception falls
within the definition of Basic Wages in Sec 2(b) of Employees Provident Fund
Act, 1952. It is also pertinent to submit that the definition of Basic Wages in
Sec 2(b) of EPF Act is similar to the definition of Wages in Sec 2(s) of
Payment of Gratuity Act, 1972. The above judgment is clearly applicable to
Banks’ Provident Fund Scheme too, making it obligatory on Banks to reckon
Special Allowance for contribution to Provident Fund for employees, who are PF
optees and as a sequel extend its application to pay defined under Pension
Regulation 2(s). In view of the ratio applied by the Hon’ble Supreme Court, the
Special Allowance with its Dearness Allowance component should be reckoned for
payment of Gratuity, contribution to Provident Fund and computation of Pension.
It is also pertinent to submit that all
allowances counted for the purpose of making contribution to the Provident
Fund and for the payment of Dearness Allowance are the component of Pay for the
purpose of computation of Pension in terms of Pension Regulation 2(s)(b)(ii).
The employees who fall under the Xth Bi-partite settlement should
also be rightfully extended the benefits of this landmark judgment.
07. We also request you
to rescind the unwarranted decision of Amalgamation of Vijaya Bank and Dena
Bank with Bank of Baroda, which is nothing but a measure of financial
engineering, rather than actually improving NPA recovery. In fact, the core problem faced by the Indian banking industry is the
enormous pile up of NPAs over Rs.10 lakh crore that have accumulated on account
of faulty lending practices and the absence of any effective recovery strategy
of overdue loans from large corporate houses. The much publicized Insolvency
and Bankruptcy Code (IBC) process has also not succeeded in recovering NPAs and
has rather resulted in substantial haircuts for the banks. The absence of
strong penal action against the corporate fraudsters reflects the lack of
political will on the part of the Union Government. The entire decision has
caused deep resentment amongst the entire banking fraternity, which is likely
to have an impact in the ensuing polls.
Against the above
backdrop, as a responsible Trade Union representing the aspirations of over
3.20 lakh Bank Officers, we urge upon your good office to assess the genuine
demands of the entire fraternity and take appropriate measures to address the
issues in the right earnest.
With best regards,
Yours sincerely,
Sd/-
(Soumya
Datta)
General
Secretary
Mob –
9830044737
