Employees’ strike hits normal banking operations

 

Coimbatore, Feb 10:  

Around 10 lakh bank employees and officers across the country struck work today to mark their protest against banking sector reforms as also to impress upon the Government the need for immediate settlement of their wage accord.

Today is the first day of the two-day strike called by the United Forum of Bank Unions comprising nine trade unions such as the All India Bank Employees’ Association (AIBEA), All India Bank Officers’ Confederation, AIBOA, BEFI, NCBE, INBEF, INBOC, NOBW and NOBO.

Terming the strike a ‘total success’, General Secretary of AIBEA CH Venkatachalam said that banking transactions, including clearing operations, were paralysed. About 10 crore cheques worth over ₹7.40 lakh crore could not be cleared.

In Chennai clearing house, 90 lakh cheques worth about ₹64,000 crore could not be processed in clearing. Government and foreign exchange transactions and money market operations were affected, and ATMs too went dry in a number of places, he said.

“The strike has been forced on us with IBA and the Government not heeding to our demand and delaying the settlement, which is already overdue,” he said in reply to a question, adding ít is not our intention to inconvenience the public, but it has been forced on us.

 http://www.thehindubusinessline.com/economy/employees-strike-hits-normal-banking-operations/article5672907.ece

 

Minutes of Conciliation Proceedings held today

Today’s Conciliatory meeting (06-02-2014) inconclusive
Strike stands
Observe 48 hours Strike on 10th and 11th February 2014

Subsequent to the call for 2 days’ All India Bank Strike on 10th and 11th February 2014, the Conciliation Proceedings were held today before Shri B.K. Sanwariya, Chief Labour Commissioner (Central) at New Delhi. IBA was represented by Shri M.V. Tanksale, Chief Executive, Shri K. Unnikrishnan, Dy. Chief Executive. The meeting was also attended by the officials from Department of Financial Services, Government of India. From the UFBU side, the leaders of all constituent unions were present.

We reproduce the Minutes of Conciliation Proceedings held today at New Delhi, for the information of members.

“The representatives of the Indian Bank’s Association (IBA) submitted written comments. A copy of the same was given to the representatives of United Forum of Bank Unions (UFBU). Prolonged discussions were held on the points submitted by the parties.

The representatives of the Indian Bank’s Association (IBA) stated that negotiating committee convened meeting on 17.01.2014 with the representatives of UFBU. IBA enhanced the offer from 5% on salary slip to 9.5% on the salary slip. Again meeting was held on 27.01.2014 with the representatives of UFBU and an improved offer of 10% was made. Representatives of the IBA requested that the next meeting with the representatives of UFBU can be made on 13.02.2014 and UFBU should not go on strike on 10th & 11th February 2014 but the demand for further increase beyond 10% can be settled during ensuing Bi-lateral meetings.

CLC(C) welcomed the views of the IBA and requested the representatives of UFBU to accept the offer for bilateral meetings. CLC(C) also requested the representatives of IBA to arrange the bilateral meeting before 10th & 11th February 2014.

CLC(C) further made appeal to the representatives of UFBU to withdraw the proposed strike call on 10th & 11th February 2014 and should come forward for bilateral meeting as proposed by the representatives of IBA.

The representatives of UFBU stated that 10% increase offered by the IBA is not acceptable and there should be further forward improvement in the offer, then only UFBU may reconsider the deferment of the proposed strike call.”

Inasmuch as the Conciliation Proceedings remained inconclusive, the 2 days’ All India Bank Strike on 10th & 11th February 2014 stands.

Comrades – Implement the strike action programmes in full with absolute display of solidarity and strength and make the 2 days’ All India Bank Strike on the 10th & 11th February 2014, a grand success.

Comrades, all our units are called upon to make all-out efforts and make the strike action a total success. Please send us the report on the implementation of the strike.

Note:
Please note that the strike action will begin from 6 am on 10th (Monday) and accordingly units should ensure that those employees who work on shifts in clearing department, service branch, night clearing, etc. should participate in the strike without any deviation. As already clarified, all probationers should join the strike call.

DEAR COMRADE, WE CONDEMN THE RIGID APPROACH OF THE IBA

MAKE 48 HOURS STRIKE FROM 10TH FEBRUARY,2014 A GRAND SUCCESS.
————————————————————————————-
ALL INDIA BANK EMPLOYEES’ ASSOCIATION
Central Office: “PRABHAT NIVAS” Regn. No.2037
Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001
Phone: 2535 1522, 6543 1566 Fax: 4500 2191, 2535 8853

e mail ~ chv.aibea@gmail.com & aibeahq@gmail.com

————————————————————————————–

CIRCULAR NO. 27/50/2014/6 28th January, 2014
TO ALL UNITS & MEMBERS

Dear Comrades,

March on to 48 hours strike on 10th and 11th Feb. 2014

We reproduce hereunder the UFBU’ Circular No. 17 dt. 27-1-2014 on the outcome of the discussions held with IBA yesterday on our wage revision demands.

Since the IBA’s offer was too inadequate and IBA was not willing to improve their offer further, UFBU has given the call for 2 days strike on 10th and 11th February, 2014. The strike notice has also been served on the IBA.

We call upon all our unions and members to march on to make the strike action a total success in all the Banks and in all the States.

UFBU Circular:

• Meeting with IBA today on our wage revision demands
• No forward movement in the discussions
• Observe 48 hours strike on 10th and 11th Feb. 2014.

We had informed our unions and members that in the last round of discussions held on 17th January, 2014, the IBA had improved their offer from 5% to 9.5% on the pays lip component with an assurance to improve further. It was also agreed by IBA to hold the next round of discussions on 27th instant to carry forward the discussions. In view of this, it was decided by UFBU to defer the agitation programmes including two day’s strike on 20th and 21st January, 2014.

In his background, UFBU held the discussions with IBA today. During the course of the discussions, we urged upon the IBA to improve their offer so that by further negotiations, the issue can be settled at the earliest.

IBA insisted that their demands like introduction of cost to company method, Fixed Pay-cum-Variable Pay based on performance, switching over to mediclaim insurance scheme and restricting the negotiations to officers in scales I to III should also be considered by the Unions before any settlement could be finalised.

Responding to our demand, IBA came forward with a meager increase of 0.5 % in their offer from 9.5 % to 10 % on the cost of Payslip components amount to Rs. 3,150 crores.

Despite our best efforts to persuade them to improve their offer and to carry forward the negotiations, IBA remained adamant.

In view of this rigid approach of the IBA, the discussions were stuck up at this stage.

IBA informed that the next round of discussions would be held by middle of next month, but looking to their rigidity, UFBU decided to revive the agitation and called for 48 hours strike on 10th and 11th Feb. 2014 to press our demand for early wage revision.

The notice for the strike was also immediately served on the IBA.

Programme

06-02-2014 Demonstrations all over the country
10-02-2014 to 11-02-2014 48 hours All India Bank strike
from 6 am on 10-02-2014 to 6 am on 12-02-2014.

Comrades, get into action and make the call a grand success

Sd.. M V Murali,
Convener

With greetings

Yours Comradely,

C.H. VENKATACHALAM
GENERAL SECRETARY

 

the process of negotiations and the correct interpretations

UNION BANK STAFF UNION (Regn No 7282)

C/o UNION BANK OF INDIA, 6TH FLR, M.S. MARG BRANCH,

66/80 M.S.MARG, MUMBAI 400023 Phone: 22629486(Bank); 22629509(U.O.);

Fax: 22676685(Bank); 9819375526(M) E-mail: ubsumumbai@rediffmail.com: nhankar@mail.com

Cir No: GS: 103/14 Jan 20th 2014.

TO

All Members,

Dear Comrades,

* Bi-Partite Negotiations.

Members are aware that wage revision talks between UFBU & IBA are in progress and the outcome so far has been communicated through our messages and circulars at regular intervals.

However we have been receiving queries from our cadres and members to explain the process of negotiations and the correct interpretations involved to dispel the confusion that is deliberately being created by forces with vested interests. Accordingly we clarify some of the points as under:

1) IBA had proposed Bank-wise settlements as against Industry-wise, but this demand was thwarted by UFBU. Thus the principle of “Same Work Same Pay” & “One industry- one service conditions” have been upheld for all Bank employees represented by UFBU.

2) UFBU is negotiating on above principle to decide the increase in wages based on the paying capacity of “the entire Banking Industry” as per consolidated financials. This includes big, small, strong and weak banks. This shows the ambit of responsibility of our Unions under UFBU, since the entire exercise of wage revision will be decided on the basis of “cost to industry basis” that will ensure all banks can absorb the wage costs.

3. It has been agreed with UFBU that the new wages will be effective from 1st Nov 2012 and the DA at 4440 points of CPI will be merged with the Basic.Now UFBU is negotiating the additional load the industry can bear on account of the wage revision. The % of load that is being decided does not mean the wages will increase at the same percentage. From earlier wage settlements we can infer that the gross wage increase in terms of % is much higher than the percentage of load.

   For 9th Bi-Partite settlement, when the pay slip components constituted around Rs.3000 cr and the same was around 11% of the total load, the average increase in gross wages amounted to about 18%.

4. For this settlement unlike earlier settlements, UFBU while negotiating has decided to exclude the incremental cost of wage revision towards Retirement benefits – i.e for Pension, PF, Gratuity, and NPS and Leave encashment etc. were required to be borne by the Banks.These costs are consequential and are to be borne by the Banks out of its profits. UFBU is thus concentrating on Pay Slip Components and negotiating increase in the same.

5. By securing 9.5% load on the pay slip components, UFBU has achieved a quantum load of Rs.3000 cr which is the quantum achieved in the 9th Bi- Partite settlement.Thus the per-capita/ per-employee cost achieved in last settlement is already secured, and is a very significant step forward considering the difficult socio-political situations. UFBU proposes to be further improve upon this quantum in future negotiation, thereby increasing the quantum as well as increasing percentage of the wages, since the total work force as on date is at the same level of settling last Bi- Partite settlement.

   After distributing the load, the same will surely be reflected in terms of reasonably higher percentage of wage increase.

The above progress is due to the negotiating efforts of UFBU leaders only and no other union has any right to claim credit.

It is only the UFBU’s pressure arising out of one days strike on 18 dec 2013 and declaring 2 days strike on 20th &21st January 2014, IBA was directed by Central Labour Commissioner, New Delhi, to pre-pone the discussions and continuously negotiate with the UFBU for amicable settlement.

UFBU consists of reputed leaders of AIBEA leadership which have negotiated and settled as many as nine wage revision settlements since 1966, and always under adverse & difficult circumstances. They are totally competent and capable to achieve one more successful wage settlement.

However, unfortunately, without understanding the facts attached to the negotiations, rumour mongering is unleashed by some employees and officers to divide the unity and confuse the workforce. Irresponsible and uncalled for comments are being posted in social websites attempting to provoke anger, animosity and division against UFBU Unions.

Already one miniscule minority union BKSM has started to toot the tune of IBA by saying in their circular that “9.5% of pay slip amounts to Rs 6450 cr forming 11.46 % of overall establishment cost” thereby distorting the costing on wage revision.

We request our member employees to understand the progress made so far in its correct perception and adhere to the directives of our union to ensure that the on going negotiations culminate in a settlement to our satisfaction.

We know that Bank employees under the banner of UFBU are wise enough to understand the precarious situation and are capable of rejecting rumour mongering.

We need to be patient and bestow confidence to our leaders while awaiting future negotiations from 27th January 2014 onwards. Let us collectively await UFBU’s analysis how IBA approaches the issue for further improvements in wages and service conditions etc.

The progress or otherwise of the future negotiations /meetings will decide our course of action.

We shall hold area wise meetings to explain the progress made so far and to explain the situation. Let us move with total unity to ensure a significant wage revision.

With Regards,

Yours Comradely,

(N. Shankar)

General Secretary.

IBA agrees to prepone the date of the talks and hold negotiations on 17th January, 2014.

ALL INDIA BANK EMPLOYEES’ ASSOCIATION

CIRCULAR NO. 27/48/2013/4 14TH January, 2014

TO ALL UNITS & MEMBERS

Dear Comrades,

• In response to our strike notice, Govt. intervenes and CLC held a meeting today

• IBA agrees to prepone the date of the talks and hold negotiations on 17th January, 2014.

• UFBU will participate in the Talks and looking to IBA’s revised offer, further decision on strike call will be taken

As per the decision of our UFBU meeting held on 23-12-2013, since there was no response from the IBA after our strike on 18-12-2013, UFBU had given the call for 48 hours Strike on 20th and 21st January, 2014 and accordingly served our strike notice on IBA and Government. In the meantime, the IBA fixed a meeting for discussions on 29th January, 2014 knowing full-well that UFBU has given the call for strike on 20th and 21st January, 2014. However, the Central Government intervened in the matter and the Chief Labour Commissioner from the Labour Ministry called for the conciliation meeting and this meeting was held today in his office in New Delhi. Mr. M V Tanksale, Chief Executive of IBA and Mr. Unnikrishnan, Dy. Chief Executive of IBA participated on behalf of IBA. Director (IR) and Under Secretary (IR) from the Finance Ministry also participated in this meeting. From UFBU, all constituent unions were present.
¬
During the conciliation meeting, UFBU pointed out that the IBA’s present offer of 5% increase was too low and hence not acceptable. UFBU also refuted their arguments of cost constraints and pointed to the increasing profits of the Banks in the last 5 years and hence our reasonable demands can be easily negotiated and settled by IBA.

The IBA informed that they are equally serious and interested to conclude the negotiations at the earliest with an open mind on our demands and hence would like to further continue the negotiations with the UFBU. IBA further stated that in view of the strike call, they would like to hold the next round of negotiations on 17th January, 2014 instead of 29th January.

The Chief Labour Commissioner suggested that in view of the above offer of the IBA, the strike call can be postponed and bilateral talks can be held with the IBA.

From UFBU, while expressing our commitment to bilateralism, it was informed that UFBU will participate in the negotiations on 17th January, 2014 but any decision on our strike call can be taken only after looking to the outcome and revised offer of the IBA during negotiations to be held on 17th instant.

Comrades, while the conciliation meeting was held in a cordial manner and the IBA has preponed the negotiations to 17th instant, no undue optimism should be entertained as everything will depend on the revised offer IBA would make in the further negotiations.

Hence there should be no let up in our unity and no laxity in our preparations for the strike action.

We reproduce herein the text of the UFBU Circular No. 15 issued today in this regard.

With greetings,

Yours Comradely,

C.H. VENKATACHALAM
GENERAL SECRETARY

UFBU Circular No. 15 dated 13-1-2014

CONCILIATION MEETING HELD ON 13.01.2014

Subsequent to issuance of Notice by UFBU for 48 Hours’ All India Bank Strike on the 20th and 21st January 2014, the conciliation meeting was held today at New Delhi. The proceedings were conducted by Shri B.K. Sanwariya, CLC(C). The meeting was also attended by the officials from Department of Financial Services. IBA was represented by Shri M.V. Tanksale, Chief Executive Officer, Shri K. Unnikrishnan, Deputy Chief Executive Officer and other officials.

The leaders of UFBU argued that the meetings are being held with much delay and there is no seriousness on the part of IBA to conclude the bilateral discussions at the earliest. UFBU also stated that the offer of 5% given by IBA is too low.

The representatives of IBA stated that so far five rounds of meetings were held and considering the constraints of banking industry on account of increasing NPAs and also the rising pension cost, the affordable offer was given by IBA.

The Chief Labour Commissioner (Central) suggested that another round of talks shall be held between IBA and UFBU to find amicable solution and further meetings should be held at regular intervals, say fortnightly, to settle an early wage revision. Agreeing to the suggestions made by CLC(C), the representatives of IBA offered to hold negotiations with the representatives of UFBU on 17th January 2014. UFBU has responded and said that it will attend the negotiation with an open mind and also conveyed that the decision on strike will depend on the outcome of the meeting to be held on 17th January 2014.

We advise all our affiliates and members to go ahead with the agitational programmes as advised earlier. The outcome of the proposed meeting on the 17th January 2014 will be informed in due course.
Sd.. M V Murali
Convener

 

Unite and struggle, Struggle and achieve, Achieve and progress

ALL INDIA BANK STRIKE

FOR 48 HOURS

FROM 6 AM
ON 20TH JANUARY, 2014

TO 6 AM ON
22ND JANUARY, 2014

WHY THIS STRIKE ?

ALL INDIA BANK EMPLOYEES’ ASSOCIATION
Central Office: “PRABHAT NIVAS” Regn. No.2037
Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001
Phone: 2535 1522, 6543 1566 Fax: 4500 2191, 2535 8853

e mail ~ chv.aibea@gmail.com & aibeahq@gmail.com

WHY THIS STRIKE ?

OUR DEMANDS

• Immediate Wage Revision for bank employees and officers

• Stop retrograde Banking Sector reforms

Wage Revision demand:

Wage Revision Settlement in the Banks is due from November, 2012. UFBU has submitted the charter of demands in October, 2012. Indian Banks Association (IBA) has been delaying the matter for the past one year. When prices are increasing day by day, when the workload on the employees has gone due to steep increase in volume of business, there is urgent need to increase the wages of the bank employees but bank managements attitude seems to very casual. Hence we are demanding immediate settlement on wage revision without any further delay.

IBA’s stand unacceptable:

After we gave the notice for strike, the IBA called the Unions for negotiations on 14th December and stated that since the profits of the Banks are under stress due to provisions for bad loans and increase in cost of pension, the Banks cannot afford to give higher wage revision and hence offered an increase of Rs. 1575 crores ( 5% on the payslip components of the total wage bill). Everyone knows that employees are not responsible for bad loans in the Banks. It is all created at the higher level. Nobody is preventing the Banks to take stringent measures to recover the bad loans. But citing it as a reason to refuse reasonable wage revision is not acceptable to us. Similarly, pension cost is bound to go up, when the DA on pension is going up due to price rise. Can employees be blamed for the unabated price rise ? Hence this argument is also unfair.

Profits of the Banks are on the rise only:

Despite the unfavourable economic scenario, Banks have been earning good profits over the years.

(Rs. In Crores – fig. of PSBs other than IDBI Bank)

 

Year	Gross Operative Profits	Net profits
2006-07	41,500	19,680
2007-08	48,250	25,862
2008-09	65,227	33,514
2009-10	74,220	38,225
2010-11	95,908	43,250
2011-12	1,12,290	47,483
2012-13	1,16,458	48,700

Bad Loans are increasing BUT not because of employees:

(Rs. In Crores – fig. of PSBs)

 

YEAR	BAD LOANS/NPA
31.03.2008	39,030 crores
31.03.2009	44,954 crores
31.03.2010	59,927 crores
31.03.2011	74,664 crores
31-03-2012	117,000 crores
31-3-2013	1,64,461 crores
31-3-2013	PSBs + Private/Foreign Banks 1,94,000 crores

Profits diverted to provide for bad loans – Can employees be penalised ?

(Rs. In Crores – fig. of PSBs)

 

Year	Provisions made for bad loans from the profits earned by the Banks
2008-09	11,121 crores
2009-10	18,036 crores
2010-11	29,830 crores
2011-12	38,177 crores
2012-13	43,102 crores
In 5 years	1,40,266 crores

 

 

Bad loans written off by Banks: (Rs. In Crores )

 

YEAR	PSBs	OLD PVT BANKS	NEW PVT BANKS	FOREIGN BANKS	ALL BANKS
2007	9189	610	1232	590	11621
2008	8019	724	1577	1334	11654
2009	6966	616	5063	3350	15995
2010	11185	884	6712	6238	25019
2011	17794	682	2336	3083	23895
2012	15551	671	3024	1646	20892
2013	27013	863	3487	855	32218
TOTAL	95,717	5,050	23,431	17,096	1,41,294

There is profit to write off bad loans but no profit to increase wages ?

The total wage bill for the entire 8 lacs employees of the public sector banks for the year ended 31-3-2012 was Rs. 56,000 crores. Now IBA’s offer is Rs. 1575 crores i.e. 5% increase over the payslip wage components.

But Rs. 38,000 crores were provided from profits toward bad loans for the year ended 31-3-2012. Rs. 27,000 crores. Was additionally written off towards bad loans. (Total Rs. 65,000 crores). But when it comes to dealing with wage increase, the argument is that Banks cannot afford. This is not acceptable to the UFBU.

Our demands are reasonable:

Our demands are reasonable and also negotiable. UFBU would like to settle the demands through mutual discussions. But if the Banks do not adopt a fair approach, the employees resentment would have to be ventilated through strikes only. We hope that IBA would understand our demands and come forward to settle the demands through amicable negotiations and finalise the settlement at the earliest.

Better wages would result in better profits:

If employees are paid better wages commensurate with the price rise and their workload, it will be a great motivation and incentive to improve productivity and this would lead to more efficiency and better profits for the Banks. Hence wage increase should be seen with a positive outlook.

Wage increase will not destroy the Banks;

No Bank in India had so far collapsed or gone into loss due to increase in wages but many Banks have collapsed due to mismanagement and bad loans. Hence our demand for wage increase should be settled at the earliest.

Review Banking Sector Reforms:

Similarly, the Government is also pursuing policies of banking reforms which are not good for our country. Government wants to hand over the Banks to private hands, give more licenses to industrial houses and corporates to start their own Banks, allow foreign banks to take over our Banks, giving concessions to defaulting borrowers and write off of huge bad loans of corporates, etc. These are retrograde steps and hence should be abandoned forthwith.

Strengthen and expand our public sector banking:

Banks should be expanded to reach and serve the common people more effectively. Bank employees are always ready to work more and more for the progress and growth of the Banks so that it will benefit the people at large.

Strike forced on us:

Even though UFBU had given notice for the strike one month ago, the Government and IBA did not take necessary steps to resolve the demands. Hence the strike on 18th December, 2013 was forced on us.

Even though employees and officers have expressed their resentment over the delay in the Settlement and the inadequate offer of the IBA by the successful strike, the IBA is not coming forward to improve their offer and expedite the Settlement.
Hence, UFBU has been forced to give further strike call for two days’ strike on 20th and 21st January, 2014.

March on to 48 Hours strike:

Hence we call upon all our members to make the 48 hours strike from 6 am on 20th January to 6 am on 22nd January, 2014 a total success.

We are ready to resolve the issues by discussions:

UFBU is always open to resolve the demands by discussions and negotiations but IBA and the Government should also be forthcoming.

The present 5% offer of IBA is very very inadequate . IBA should give their revised and better offer to form the basis for further negotiations.

IBA should also come forward to work out a time-bound framework to complete the negotiations early and sign the Settlement expeditiously.

If the same negative and non-serious attitude will continue, we will be left with no alternative than to further intensify the agitation during February and march, 2014.

Unite and struggle
Struggle and achieve
Achieve and progress

ALL INDIA BANK EMPLOYEES’ ASSOCIATION

PROFITS DIVERTED TO PROVIDE FOR BAD LOANS – CAN EMPLOYEES BE PENALISED ?

Profits of the Banks are on the rise only: Despite the unfavourable economic scenario, Banks have been earning good profits over the years.

(Rs. In Crores – fig. of PSBs other than IDBI Bank)

Year

Gross Operative Profits

Net profits

2006-07

41,500

19,680

2007-08

48,250

25,862

2008-09

65,227

33,514

2009-10

74,220

38,225

2010-11

95,908

43,250

2011-12

1,12,290

47,483

2012-13

1,16,458

48,700

Bad Loans are increasing not because of employees:

(Rs. In Crores – fig. of PSBs)

31.03.2008 = 39,030 crores
31.03.2009 = 44,954 crores
31.03.2010 = 59,927 crores
31.03.2011 = 74,664 crores
31-03-2012 = 1,17,000 crores
31-3-2013 = 1,64,461 crores
31-3-2013 PSBs + Private/Foreign Banks 1,94,000 crores

Profits diverted to provide for bad loans – Can employees be penalised ?

(Rs. In Crores – fig. of PSBs)

Yearwise Provisions made for bad loans from the profits earned by the Banks
2008-09 = 11,121 crores
2009-10 = 18,036 crores
2010-11 = 29,830 crores
2011-12 = 38,177 crores
2012-13 = 43,102 crores
In 5 years 1,40,266 crores

Bad loans written off by Banks: (Rs. In crores )

Year

PSBs

Old Pvt Banks

New Pvt Banks

Foreign Banks

All Banks

2007

9189

610

1232

590

11621

2008

8019

724

1577

1334

11654

2009

6966

616

5063

3350

15995

2010

11185

884

6712

6238

25019

2011

17794

682

2336

3083

23895

2012

15551

671

3024

1646

20892

2013

27013

863

3487

855

32218

TOTAL

95717

5050

23431

17096

141294

there is profit’s to write off bad loans but no profit to increase wages ?

The total wage bill for the entire 8 lacs employees of the public sector banks for the year ended 31-3-2012 was Rs. 56,000 crores. Whereas Rs. 38,000 crores were provided from profits toward bad loans in addition to actual write off of Rs. 27,000 crores. (Total Rs. 65,000 crores).

When it comes to dealing with wage increase, the argument is that Banks cannot afford.

This is not acceptable to the UFBU.

Our demands are reasonable: Our demands are reasonable and also negotiable. UFBU would like to settle the demands through mutual discussions. But if the Banks do not adopt a fair approach, the employees resentment would have to be ventilated through strikes only.

We hope that IBA would understand our demands and come forward to settle the demands through amicable negotiations and finalise the settlement at the earliest.

Better wages would result in better profits: If employees are paid better wages commensurate with the prices and their workload, it will be a great motivation and incentive to involve better and this would lead to more efficiency and better profits for the Banks. Hence wage increase should be seen with a positive outlook. No Bank in India had so far collapsed or gone into loss due to increase in wages but Banks have collapsed due to mismanagement and bad loans. Hence our demand for wage increase should be settled at the earliest.

Review Banking Sector Reforms: Similarly, the Government is also pursuing policies of banking reforms which are not good for our country. Government wants to hand over the Banks to private hands, give more licenses to industrial houses and corporates to start their own Banks, allow foreign banks to take over our Banks, giving concessions to defaulting borrowers and write off of huge bad loans of corporates, etc. These are retrograde steps and hence should be abandoned forthwith.

Strengthen and expand our public sector banking: Banks should be expanded to reach and serve the common people more effectively. Bank employees are always ready to work more and more for the progress and growth of the Banks so that it will benefit the people at large.

Strike was forced on us: Even though UFBU had given notice for the strike one month ago, the Government and IBA did not take necessary steps to resolve the demands. Hence the strike has been forced on us. We are sorry that the banking public would have been inconvenienced by this strike but that was unavoidable due to the non-serious approach of the IBA / Government to avert the strike by improving their offer on wage increase and discussing our concerns on the banking sector reforms.

We are ready to resolve the issues by discussions: UFBU is always open to resolve the demands by discussions and negotiations but IBA and the Government should also be forthcoming. If the same negative attitude will continue, we will be left with no alternative than to further intensify the agitation.

Next phase of programme: UFBU is meeting at Hyderabad on 23rd December to discuss further course of action and next phase of our agitation and strikes.

C.H. VENKATACHALAM
GENERAL SECRETARY

“EXPEDITE WAGE REVISION” – U F B U

 Bank Employees and Officers are going on One Day All India Strike on 18th December 2013 under the banner of United Forum of Bank Unions (UFBU). The demands raised are Immediate Wage Revision

 

“EXPEDITE WAGE REVISION”

Wages and service conditions in the banking sector are governed by the industry level bipartite settlements signed by the Indian Banks Association (IBA) and the Trade Unions of bank employees and officers.

Public Sector Banks, Private Sector Banks and Foreign Banks who give their mandate to the Indian Banks Association are party to the settlements and hence are covered by the agreements. 

The alarming and unabated price rise has seriously eroded the income of the employees.

Consumer Price Index has gone up by almost 2400 points since November 2007 (1960 =100).

Hence the wage revision to catch up with the high inflation and price has become an urgent necessity.

The job profile of the staff has also undergone a sea change and all these require to be properly remunerated with adequate increase in wages. 

The 9th Bipartite Settlement on revision of wages and service conditions covered the period from 1 November 2007 to 31 10 2012.

Consequently United Forum of Bank Unions submitted a common charter of demands for the employees and officers before the date of expiry of the agreement for the 10th Bipartite.

The IBA is delaying the settlement.

 During the last one year even though 5 rounds of talks were held IBA has not even come out with any clear proposal as to the quantum of increase. 

The Bank Management has been projecting that they could not meet the wage increase demand by the UFBU as the productivity in the banking sector is low.

An analysis of RBI data (based on various parameters) indicates that Indian banks, particularly the public sector banks have shown significant progress on the productivity and efficiency front over the last two decades.

Staff expenses have also come down as per the data available.

 

“STOP OUTSOURCING OF BANKING SERVICES”

Outsourcing of banking operations is fraught with grave commercial risk and is against the basic principles of maintaining secrecy of customer accounts.

Besides going away from the industrial policy guidelines for the public sector banks to create permanent jobs for the citizens, the scrutiny, secrecy and security of the banking transactions are getting sacrificed.

As part of the agitational programmes all the constituent Unions and their affiliates have addressed letter to Chairman, Indian Banks Association.

Mass demonstrations were held in all State Capitals and other major centres throughout the country on various dates.

UFBU will join the Parliament March planned by the Central Trade Unions on 12th December.

On 16th Bank employees and Officers will attend duty bearing badges.

 On 17th December, the previous day of the strike mass demonstrations, rallies, processions and public meetings will be held at all centres.

We call upon the customers and general public and all the organizations to support the cause and cooperate with the strike action planned.

We also request the media to present the factual situation in the banking sector with a national development perspective –

M V MURALI.

 

Press Release dated December 11, 2013 Issued by M V Murali, National Convenor, United Forum of Bank Unions (UFBU)

UFBU letter to the Ministry of Finance

UFBU letter to the Ministry of Finance on 10th Bipartite Wage Revision :
To

The Secretary,
Department of Financial Services
(Banking Division),
Ministry of Finance,
Government of India,
NEW DELHI.

Dear Sir,

WAGE REVISION FOR BANK EMPLOYEES

With reference to the above, we bring to your kind notice that the wages of workmen and officer employees of all banks at Industry level are due for revision effective from 1st November 2012 and all the unions/associations operating in the banking industry have submitted the Common Charter of Demands for Tenth Bipartite Wage Settlement to Indian Banks’ Association during October 2012.

In this regard, we have to inform that despite expressing our concern to the Indian Banks’ Association for not holding the bipartite meetings at regular intervals and undue delay in the process of negotiations, no significant progress is made towards revision of wages in the banking industry even though more than a year has lapsed since submission of our charter of demands.

The employees are also becoming restive due to inordinate and undue delay in the process of negotiations. Hence, the constituent unions of United Forum of Bank Unions (UFBU) had called for demonstrations by bank employees in all State Capitals and other major centres on 22nd October 2013 demanding expeditious wage settlement.

Accordingly, demonstrations were held today in all State Capitals and other major centres with full participation of bank employees expressing their dissatisfaction over the sluggish movement in the process of wage revision negotiations.

In the circumstances, considering the legitimate and just demand of bank employees, we seek your kind intervention in the process of wage negotiations and request you to ensure speedy process of wage revision for early conclusion.

Thanking You,

Yours faithfully,

Sd.. M V Murali

Convener