Saturday, January 24, 2015

Who Are LAZY? Bank Staff Or CMDs of Banks,or IBA or GOI or RBI Officials?

Government of India ask employees of public sector banks to stop lazy banking and become proactive. Bank employees opened 11.5 crore bank accounts in a span of hardly six months and government of India could achieve and surpass the target of opening accounts under PMJDY by huge margin. Thus bank employees proved that they are not lazy as alleged.
It is to mention here that bank employees are demanding wage revision which is due since Ist November 2012. Even after lapse of almost 27 months Indian Bank Association (IBA) and Government of India could not reach an amicable Bipartite Settlement with United Front of Bank Unions (UFBU) . It shows that members of IBA are neither active nor proactive nor reactive. .

Bank employees under the banner of United Front Of Bank Unions are on path of agitation since November 2012 , but the members of IBA who are CMD of various PSU banks did not think it wise and necessary to have dialogue on daily basis to resolve the issue in a span of one month or two months. They have wasted 27 months in solving a small problem of wage agreement which is very much crucial and important for development of bank. They do not understand that only happy human resource can be loyal to bank and can help in completing all desired task.

Had they been active and proactive they could have asked members of UFBU to sit every day and resolve the issue in shortest span of time.

CMD of banks who represent IBA are so much dull and non -active that they  do not bother whether bank employees who are backbone of public sector banks for growth and development and who take part in all welfare schemes launched by government of India  are happy or not. It is therefore undoubtedly true that it is CMD of banks who are indulged in lazy banking and it is they who are not proactive to an extent which GOI desires the to be .

 Ministry of Finance which is supposed to take care of bank and bank employees is also silent spectator of Draupdi Chirharan (exploitation of bank employees )and allowing banks to sink and allowing  its banks to accumulate bad assets .GOI is also dull and inactive to remain silent on inactive IBA and entire legal machineries which do not act in court cases filed by PS banks.

GOI and  RBI are not active because they failed to nip in the bud and allowed banks to accumulate bad assets and incur losses or hide bad assets or fraudulently achieve the allotted target by manipulation and window dressing. GOI wasted 24 years of banking reformation but could not reform the banks.

 Now, therefore, it is the turn of members of IBA, Officials of Government of India and finally officials of regulating agency RBI  to prove that they are lazy and they are proactive. They can do this by forcing IBA to sit 24 hours to resolve the issue of wage settlement. They have to be proactive to keep the assets standard all the time . They have to recover the money by being proactive and by forcing administrative and legal machineries  to be pro active and sincere in doing their duties for expeditious recovery of banks dues from defaulters of bank's loans. They have to be active and proactive to stop bribery and flattery based promotions and stop bribery in recruitment to safeguard the health of banks.

It is the time to decide who are lazy and who are not pro-active.

Friday, January 23, 2015

Important News And My Views

Bank Wage Revision : IBA fixed date for next Bipartite meeting
Meeting of sub committee on charter of demands on workmen to be held on 30th January 2015 at Mumbai.

Following which IBA managing committee will meet on 31st January and next bipartite meeting with UFBU will take place at Mumbai on 3rd February 2015.

Meeting of the Sub Committee on Charter of Demands of
workmen on 30th Jan. '15 at I.B.A. office MUMBAI as well
as the whole Negotiating Committee will meet with
INDIAN BANK ASSOCIATION (I.B.A.) on 3rd Feb.'15 at MUMBAI.
TAHIR ALI...

CENTRAL COMMITTEE MEMBER
N.C.B.E.


SBI bank to pay a compensation of Rs 3lacs to a senior citizen

The Highly Networked Bank of the Country - State Bank of India has been asked to pay a compensation of Rs 3 lakh. It has been reported that the bank has to pay a compensation of Rs 3 lakh to a senior citizen who has gone through an online fraud. The man has lost his lifetime savings of Rs 3.77 lakh to fraudulent ATM.

It has been stated that banks need to have more strict policies and consumer friendly policies. There should be more secure provisions to provide the safe banking to the customers. The SBI has not given any meaningful report from its Fraud Investigation Unit, mandated by RBI guidelines.

The complainant was using ATM card to withdraw monthly pension. On December 17, 2013, he twice visited ATM kiosk, but the machine didn't dispense cash. Besides this, neither a CCTV camera was installed in the ATM nor was the security guard posted The Pin of the person was misused and transactions were made and he didn’t receive and SMS regarding the transactions made.

Ex-bank officer convicted in corruption case

A Special court for CBI cases has sentenced a former manager of the Roshanara branch of the Punjab and Sindh Bank here to one year of rigorous imprisonment, holding him guilty of cheating the bank of Rs.1.35 crore in conspiracy with a businessman.
 
Businessman P.V. Khullar had entered into a criminal conspiracy with the then manager Maha Singh to create false liability of Rs.1.35 crore on the bank through a fraudulent transaction between two private companies in 1998.
Special Judge Kanwaljeet Arora also awarded the same quantum of sentence to the businessman.
 
“The prosecution has been able to establish from the evidence on record that Maha Singh, being public servant, had hatched a criminal conspiracy and in furtherance of the conspiracy which he had with P.V. Khullar, he attempted to abuse his official position as a public servant,” the Judge said in the 190-page judgment.
 
In the charge-sheet, the CBI alleged that the accused persons had entered into a criminal conspiracy with the intent to create a false liability of Rs.1.35 crore on the bank by getting “co-acceptance” of a Bill of Exchange (Hundi) against a fraudulent transaction of sale and purchase   of   rice   between M/s TAR Agro Farms (P) Limited, Chennai, and M/s Solar Finvest (P) Limited, New Delhi, and thereby causing wrongful loss to the bank and wrongful gain to themselves.

Why banks haven’t followed RBI to cut rates-HB-By Radhika Merwin

January 23, 2015:  



For all the hullaballoo over the RBI’s reluctance to cut rates in the past year, there has been very little action on the ground by banks after the RBI’s surprise cut of 25 basis points in key policy rate, made a week ago. Barring two public sector banks - Union Bank and United Bank - who cut their base rates by 25 basis points in the past week, others are still dragging their feet and waiting for cues from State Bank of India - the largest bank in India.

But unlike in the past when public sector banks have been more aggressive and nippy in passing on rate cuts, muted credit growth and higher stress in the system are likely to weigh on their decision this time around.

PSU banks at the forefront
A look at the data put out by RBI on banks’ lending rates since 2008, shows that public sector banks have been more active in passing on RBI’s rate actions than their private counterparts.

Consider for instance, the period between September 2008 and September 2009. The RBI had cut the repo rate by a steep 425 basis points during this period. On an average public sector banks lowered their lending rates by 128 basis points during this period, while private banks cut their loan rates by just 60 basis points.

Or the period between March 2012 and June 2013, when repo rate was cut by 125 basis points. While PSU banks cut lending rates by about 30 basis points, private banks in contrast raised their rates by 30 basis points.

Why the disparity
This difference could be due to a couple of reasons. One, while strong operational performance and higher share of low cost deposits has helped private banks hold their margins steady, they also appear to be tight-fisted in passing on rate cuts, to keep their margins intact.

Two, during a rate cut cycle, the overall risk in the system is usually higher. In the current scenario for instance, the economy has been in a protracted slowdown, and banks thus yearn for a higher spread to compensate for the risk. Private banks in particular have been quicker to assess the risk as also to price it in. To keep spreads higher, these banks would not lower their lending rates in a hurry.

Aside from the lax risk assessment systems in public sector banks, a tacit pressure from the government has also forced them to lower rates in a hurry. In July 2013, the then finance minister P Chidambaram had urged public sector banks to lower their base rates. This was because even after the RBI cut its repo rate by 125 basis points since March 2012, banks had cut their lending rates only by 20 basis points.

Many public sector banks dutifully reduced their base rates, only to face a rude shock when the RBI suddenly hiked short term rates through its liquidity tightening measures a few days later.


Waiting for cues
But this time around, public sector banks may have a lot to consider before they start to cut rates.
For one, the bank credit growth has slipped to 10 per cent in December 2014. A cut in lending rate will stress margins even more for public sector banks, already struggling to keep their margins intact.
Two, with stressed assets at over 10 per cent of loans, public sector banks are already earning lesser income on assets, thus impacting margins.
While many banks have lined up meetings of their asset-liability committees this week, to review their lending and deposit rates, all eyes are on SBI, which was the first to lower its deposit rates in September last year. Link Hindu Business Line
 
 Read Guidelines issued by RBI in Recent past

http://importantbankingnews2.blogspot.in/2015/01/rbi-guidelines-to-banks-on-interest.html

Read My opinion on interest rate fixation policy or interest rate reform in following two links-Danendra Jain

I would like to ask  clever and wise bankers to say how much share of stressed assets in their banks is due to charging of higher interest rate. I think they will not honestly admit that in 95% of stressed assets or fall in credit to manufacturing sector , reason is other than rate of interest.
Can they give a guarantee that if interest rate is reduced or even made to zero , they will give unprecedented credit growth in all the years to come without improving other extraneous factors which are greater impediments in growth of credit. No They cannot, I am sure. When Interest rate will be reduced , these clever bankers will put blame on global recession, economic slowdown, political environment etc to save their evil deeds.

http://danendrajain.blogspot.in/2015/01/role-of-interest-rate-in-credit-growth.html


Government will have to stop focusing on low interest regime which helps only Corporate sector and that to undesirable extent. Due to low interest rate, poor and middle class families do not want to keep their idle money in banks but prefer investing in Gold. Due to poor rate of interest available on deposits made in banks ,  rate of growth in house hold savings comes down and investment capacity of the government and the bank to invest in productive projects or lend for manufacturing or farm sector is adversely affected  .
Uniform Inteest Rate Regime

Why Pay Of Chiefs of Banks Should Not be Increased In Isolation?-By Danendra Jain

There is one news item in the corridors of Government that they are going to linked pay of CMD of banks to market to attract talent and to save bank from disaster. Government is of the view that if their pay is increased and made equal to that of private banks , these Chiefs will take the bank to greater height , they will safeguard assets of the banks , will stop assets going from good to bad and finally increase profitability of the banks. It appears fully  ridiculous to me and Aam Bankers.
 
 This news however will make it clear to Aam bank employees that CMD of Public sector banks who are in IBA negotiating team for finalisation of wage revision for bank staff are more focussed on hike of their own pay. They are not at all bothered whether bank staff are low paid and whether their demand for hike is genuine or not. They talk of hike in their pay and it is pity that bank staff have not yet understood this bitter truth even after lapse of more than two years in fighting for getting demanded hike in Bipartite Settlement.
 
When government talk of rise in bad debts or erosion in profit the blame bank staff or global recession and talk of poor salary of bank Chiefs due to which talented officers do not like to accept the charge of public sector banks. Though there is no such case in the history of PS banks when any officials have refused the post of CMD or ED on the ground of lower pay. It is only junior or middle management ranked officers who were talented and hard performers who resigned from PS banks and joined private banks and they are now at top post in private banks.

There is not a single example when ED ranked officer of PS bank resigned from PS bank to become directly Chairman and MD of private bank. Private banks create culture and suitable environment where talented employees get elevated and others rejected. On the contrary PS banks are cheating their employees in each promotion process in the name of merit . They promote mostly flatterers and bribe earners who share bribe with them directly in cash or in kind in the form of golden gifts. Without getting top officials in PS banks, one cannot dram of promotion in any scale and one cannot get dram of sanction of big loan.
 
Therefore if junior officers and middle management officers are not given due weightage and not given adequate salary despite their talent and devotion to banks , they may shift to private bank in greed of higher pay package. They know very well that management of PS bank do not recognise talent and hard workers in internal promotions and they only promote flatterers and bribe earners. Need of the hour is to stop exodus of junior officers and retention of talent in PS banks and it is the demand of time that their pay is given a greater hike and only talented and experienced  officers are promoted .
 
It is unfortunate that in mad rush for branch expansion without proportionate  increase in manpower and in an effort to please their political masters that management of PS banks are giving fastest and risk-prone promotion to officers who do not have adequate knowledge and expertise. Due to such irrational quick promotions to officers neglecting and ignoring seniors , work culture in all banks have suffered a lot . This has resulted in hike in bad assets and will continue to rise without any stop .
 
I have no hesitation in saying blatantly that due to worst Human Resource Management undertaken during last ten years, assets of banks have gone bad or fraud volume have gone up causing huge loss to bank and huge erosion in profit.
 
It  is pity that even Senior officers of RBI and GOI have not yet understood the real cause of bank's sickness. This is why they are prescribing wrong medicine to cure the sickness.

It is well known to all bankers that private banks of modern era did not bring man power from Mars planet but they attracted talented workers and officers from public sector banks only. It is employees of PS banks only who opted for private banks sacrificing secure service of government banks. And it is they who used their talent in private banks and could reach top level. It is these employees of PS banks who after joining in private banks have catapulted and taken private banks to such a height . It is they who earned profit for private banks and it is they who stopped rise in bad assets.
 
Chief of bank do not work and do not process an credit proposal. They rather pollute the work culture and the must by punished for bad works they did in last ten years. The promote culture of flattery and bribery in lending, recruitment and promotions. Their pay hike is not going to solve any problem . Rather they will further spoil the future of bank.
 
On the contrary if Aam bank staff are made happy , if their pay package is increased adequately to retain them and if they are given justice in promotions, they will work sincerely for the betterment of bank and for growth of bank. They have huge potential to take their bank to greater height if they are given due respect and compensated with good pay package in line with prevalent pay package in other sectors.
 
If CBI investigation is carried out of top 100 officers of PS banks, it will be proved that they have accumulated wealth far more than their counterpart in private banks. On the contrary one cannot  find a few hundred clerks or subordinate staff  or even officers in Junior or middle or senior management who have accumulated wealth by unfair means.


CMD and ED are already leading lavish and luxurious life at the cost of life of poor Aam bankers. So many CMD, ED and top ranked officers of PS banks have been caught in corruption, but there are very few instances of junior officers or Aam bankers caught in corruption.
 
I therefore feel that the decision of government to increase the pay of Bank chiefs and make it market linked, it will be another blunder and will further  ruin the future of PS banks. Chiefs of banks can do nothing if mass Aam bankers are demotivated and made unhappy due to exploitation by top officials.  Aam bankers are leaving banks only because they get better pay package elsewhere. 



It is further astonishing and dangerous too that Government is contemplating to attract officers from private banks to accept the post of ED and CMD of PS banks by paying higher pay package. Officer of private who are not well versed with culture and work style of PS banks cannot get desired success in PS banks.


Further there is no such instance in any private bank that they have attracted/ appointed  officer from PS bank and given the post of CMD for private bank directly. Management of private banks give weightage to officers who have been loyal for decades to their banks and who have been well tested and attested. Officers of private banks need not pay Rs.25 to Rs.50 lac to get the post of CMD as happens in PS banks.
.

Govt to consider market linked salaries for PSB chiefs-Business Standard

Experience in core areas like treasury, credit could be made mandatory
 
The finance ministry, which is in the process of appointing managing directors and chief executive officers for  Bank of Baroda, Canara Bank and Punjab National Bank, might consider hiring candidates from private banks and paying them market-linked salaries.

The move is a part of steps the government is taking to reform public sector banks (PSBs).

The post of chairman and managing director has been split and the government has appointed managing directors and chief executive officers in four banks — Indian Overseas Bank, United Bank of India, Oriental Bank of Commerce and Vijaya Bank.

A new chief executive officer will also be appointed in Syndicate Bank
 
Hiring senior executives in PSBs is constrained by the wide difference in salaries with private banks. Market-linked salaries will also help the banks retain talent. PSBs also grapple with short tenures of chairmen and managing directors who barely have a year at their post.

The finance ministry is now looking to appoint chief executive officers who can serve longer.

The current State Bank of India chairman was appointed for three years. The next two chairmen will be appointed for four and five years. The government proposes to replicate this model in other banks.

Bankers have suggested candidates must have experience in four fields before they can be appointed as bank CEOs, treasury, credit, human resources and information technology. The government is considering this as an eligibility criterion.

There have been instances when bank chairmen were appointed without experience in the core functions of a bank.

Last year, a committee set up by Reserve Bank of India Governor Raghuram Rajan and headed by P J Nayak recommended reforms in state-owned banks. The committee said the government should give up control of banks and reduce its stakes below 51 per cent.
 
 
 

Higher Pay Package For PS Bank Chiefs

There is one news item in the corridors of Government that they are going to linked pa of CMD of banks to market to attract talent and to save bank from disaster. Government is of the view that if their pay is increased and made equal to that of private banks , these Chiefs will take the bank to greater height , they will safeguard assets of the banks , will stop assets going from good to bad and finally increase profitability of the banks. It appears fully  ridiculous to me and Aam Bankers.
 
 This news however will make it clear to Aam bank employees that CMD of Public sector banks who are in IBA negotiating team for finalisation of wage revision for bank staff are more focussed on hike of their own pay. They are not at all bothered whether bank staff are low paid and whether their demand for hike is genuine or not. They talk of hike in their pay and it is pity that bank staff have not yet understood this bitter truth even after lapse of more than two years in fighting for getting demanded hike in Bipartite Settlement.
 
When government talk of rise in bad debts or erosion in profit the blame bank staff or global recession and talk of poor salary of bank Chiefs due to which talented officers do not like to accept the charge of public sector banks. Though there is no such case in the history of PS banks when any officials have refused the post of CMD or ED on the ground of lower pay. It is only junior or middle management ranked officers who were talented and hard performers who resigned from PS banks and joined private banks and they are now at top post in private banks.

There is not a single example when ED ranked officer of PS bank resigned from PS bank to become directly Chairman and MD of private bank. Private banks create culture and suitable environment where talented employees get elevated and others rejected. On the contrary PS banks are cheating their employees in each promotion process in the name of merit . They promote mostly flatterers and bribe earners who share bribe with them directly in cash or in kind in the form of golden gifts. Without getting top officials in PS banks, one cannot dram of promotion in any scale and one cannot get dram of sanction of big loan.
 
Therefore if junior officers and middle management officers are not given due weightage and not given adequate salary despite their talent and devotion to banks , they may shift to private bank in greed of higher pay package. They know very well that management of PS bank do not recognise talent and hard workers in internal promotions and they only promote flatterers and bribe earners. Need of the hour is to stop exodus of junior officers and retention of talent in PS banks and it is the demand of time that their pay is given a greater hike and only talented and experienced  officers are promoted .
 
It is unfortunate that in mad rush for branch expansion without proportionate  increase in manpower and in an effort to please their political masters that management of PS banks are giving fastest and risk-prone promotion to officers who do not have adequate knowledge and expertise. Due to such irrational quick promotions to officers neglecting and ignoring seniors , work culture in all banks have suffered a lot . This has resulted in hike in bad assets and will continue to rise without any stop .
 
I have no hesitation in saying blatantly that due to worst Human Resource Management undertaken during last ten years, assets of banks have gone bad or fraud volume have gone up causing huge loss to bank and huge erosion in profit.
 
It  is pity that even Senior officers of RBI and GOI have not yet understood the real cause of bank's sickness. This is why they are prescribing wrong medicine to cure the sickness. It is well known to all bankers that private banks of modern era did not bring man power from Mars planet but they attracted talented workers and officers from public sector banks only. It is employees of PS banks only who opted for private banks sacrificing secure service of government banks. And it is they who used their talent in private banks and could reach top level. It is these employees of PS banks who after joining in private banks have catapulted and taken private banks to such a height . It is they who earned profit for private banks and it is they who stopped rise in bad assets.
 
Chief of bank do not work and do not process an credit proposal. They rather pollute the work culture and the must by punished for bad works they did in last ten years. The promote culture of flattery and bribery in lending, recruitment and promotions. Their pay hike is not going to solve any problem . Rather they will further spoil the future of bank.
 
On the contrary if Aam bank staff are made happy , if their pay package is increased adequately to retain them and if they are given justice in promotions, they will work sincerely for the betterment of bank and for growth of bank. They have huge potential to take their bank to greater height if they are given due respect and compensated with good pay package in line with prevalent pay package in other sectors.
 
If CBI investigation is carried out of top 100 officers of PS banks, it will be proved that they have accumulated wealth fare more than their counterpart in private banks. On the contrary on can find a few hundred clerks or subordinate staff  or even officers in Junior or middle or senior management who have accumulated wealth by unfair means.CMD and ED are already leading lavish and luxurious life at the cost of life of poor Aam bankers. So many CMD, ED top ranked officers of PS banks have been caught in corruption, but there are very few instances of junior officers or Aam bankers caught in corruption.
 
I therefore feel that the decision of government to increase the pay of Bank chiefs and make it market linked, it will be another blunder to ruin the future of PS banks. Chiefs of banks can do nothing if mass Aam bankers are demotivated and unhappy due to exploitation by top officials Aam bankers are leaving banks only because they get better pay package elsewhere. 



It is further astonishing and dangerous too that Government is contemplating to attract officers from private banks to accept the post of ED and CMD of PS banks by paying higher pay package. Officer of private who are not well versed with culture and work style of PS banks cannot get desired success. Further there is no such instance in any private bank that they have attracted officer from PS bank and given the post of CMD for private bank directly. Management of private banks give weightage to officers who have been loyal for decades to their banks and who have been well tested and attested. Officers of private banks need not pa Rs.25 to Rs.50 lac to get the post of CMD as happens in PS banks.
Govt to consider market linked salaries for PSB chiefs-Business Standard
Experience in core areas like treasury, credit could be made mandatory
 
The finance ministry, which is in the process of appointing managing directors and chief executive officers for  Bank of Baroda, Canara Bank and Punjab National Bank, might consider hiring candidates from private banks and paying them market-linked salaries.

The move is a part of steps the government is taking to reform public sector banks (PSBs).

The post of chairman and managing director has been split and the government has appointed managing directors and chief executive officers in four banks — Indian Overseas Bank, United Bank of India, Oriental Bank of Commerce and Vijaya Bank.

A new chief executive officer will also be appointed in Syndicate Bank
 
Hiring senior executives in PSBs is constrained by the wide difference in salaries with private banks. Market-linked salaries will also help the banks retain talent. PSBs also grapple with short tenures of chairmen and managing directors who barely have a year at their post.

The finance ministry is now looking to appoint chief executive officers who can serve longer.

The current State Bank of India chairman was appointed for three years. The next two chairmen will be appointed for four and five years. The government proposes to replicate this model in other banks.

Bankers have suggested candidates must have experience in four fields before they can be appointed as bank CEOs, treasury, credit, human resources and information technology. The government is considering this as an eligibility criterion.

There have been instances when bank chairmen were appointed without experience in the core functions of a bank.

Last year, a committee set up by Reserve Bank of India Governor Raghuram Rajan and headed by P J Nayak recommended reforms in state-owned banks. The committee said the government should give up control of banks and reduce its stakes below 51 per cent.

Thursday, January 22, 2015

Know About PAY Slip Cost

Rajinder Wali explains what s Pay Slip Cost..!!

I feel there is utter confusion amongst the members about the Pay Slip cost as a result youngsters are not being guided properly about the amount of likely rise in the Salary. Many of the friends in the group wanted to know the concept so I have made an attempt to explain it.

I would like to share with friends that components of pay slip cost include (Basic Pay+ FPP (Fixed Personal Pay)+PQP (Professional Qualification Pay)+ Special Pay, DA (Dearness Allowan...ce)+HRA (House Rent Allowance)+CCA (City Compensatory Allowance).These are the regular payment made to employees and generally comprised of so called Pay Slip of Month.

There are also other costs which are not included on Payslip but paid to employees like cost of Superannuation i.e. Provident Funds, LFC, NPS, Gratuity, Medical reimbursement etc.

The wage load is calculated on the basis of the cost as on 31st Mach of the year of revision. In present case whatever increase being offered is on the of pay slip cost as on 31st March, 2012.
In 9th Settlement pay slip cost was 10.30% out of 17.50% in increase in Establishment cost.

I am sure this information may help friends to understand the concept..!!

Click Here To Read More About Wage Revision And Pay Slip Cost

Critical View On Strike Cancellation

Deferment of 4 Day Strike Has Only Fuelled  Anger Among Aam Banker and Exposed  That  UFBU  Has Deep Rooted Differences Among Its Constituents
-By Rajesh Goyal

Bankers across India kept their breath on hold for whole day of 19th January, 2015.  The visitors to our website zoomed by almost 300% waiting to get some authentic  news, as social media was buzzing with all kinds of rumors.   I personally monitored various social media discussions and tried to find out what is true among these discussions.   The long wait ended only late evening after 9.00 PM, which we promptly uploaded on our website. 

However, till afternoon of 20th January, 2015, we have not come across the detailed circular from UFBU giving the details of the sub-committee meetings held on 14th and 19th January.   There is also no word from UFBU about the background which led to cancel the strikes for 21st to 24th January, 2015.  Which units of UFBU supported the resolution for keeping the strike on hold?   We have only received messages from individual leaders which only inform the bankers about deferring the strike of 4 days.

In our article dated 8th January itself we have clearly written that” It appears that the deal between UFBU and IBA is already struck and they have started building a case for cancellation of four day strike.”.  [See our link :  UFBU Decides to Hold Back 4 Day Strike Also – Report in First Post ]. 
 
Later on 15th January 2015, we have again uploaded another article under the heading   IBA and UFBU Play Hide and Seek Game to Befool Aam Banker About Cancellation of 4 Day Strike, I have again written that I will be really surprised if this 4 day strike actually starts on 21st January 2015.
Thus, AllBankingSolutions.com has correctly predicted more than 10 days in advance that all this exchange of letters is a pure drama and strike will be withdrawn.   Ultimately truth has prevailed -  though in between AIBOC and other unions etc. issued circular to be ready for strike so as to boost the moral of their members and show that they are genuinely fighting for their cause.
 
Let us first read two short messages sent by two top leaders  :-
(a) C H Venkatachalam, Gen. Secretary, AIBEA :  The proposed 4 days continuous strike by 10 lacs bank employees under the banner of United Forum of Bank Unions has been put on hold and deferred. During the last round of meeting held on 6th instant, IBA improved their offer of wage increase from Rs. 3465 crores to Rs. 3938 crores i.e. from 11% to 12.5%. Though it is not an acceptable offer, since IBA offered further improvements during further negotiations, the proposed strike on 7th instant was deferred.   Further discussions have continued in the Sub-Committees on 14th and 19th instants wherein issues other than wage increase and pertaining to other service”.
 
(b)  Harvinder Singh of AIBOC : "Four days strike put on hold as IBA promised to resolve the salary revision issues by the first week of Feb 2015. If no satisfactory outcome is reached fresh strike dates for 4/5 days in the month of February would be announced. Circular follows”. 
 
An Analysis of Above Message
 
 

The above two messages clearly indicates that IBA refused to talk on the issue of hike in pay slip component, which at present is offered at 12.5%.   UFBU unilaterally decided to put on hold (other word for cancellation ) the 4 day strike for which bankers have been waiting for 2 years, so as to build some genuine pressure on the IBA / GoI. In the blame game, some reports are coming where each union is blaming others for pressing for cancellation of the strike. 
(ii)            IBA has merely orally promised to resolve the issue by first week of February, 2015.   All UFBU units appears to have taken this as gospel truth, and accepted the same bowing before the Almight IBA.
 
No Lessons Learnt from Past by UFBU :
 
Some of the readers have mentioned in the comments column that my attitude is negative towards unions, and thus trying to misguide younger generation of employees.   They have every right to hold their opinion as I have every right to write freely and frankly my views.   Let me take my readers one year back i.e. January 2014. 
 
·         In UFBU circular dated 17th January, 2014 (while deferring the strike announced for 20th and 21st January, 2014) has written “………. IBA also reiterated that they would expedite the negotiations and conclude the Settlement by June, 2014,…………Looking to their (IBA) improved offer and assurance to expedite the settlement, it was  decided to defer our agitational programme and proposed strike action on 20th and 21st January, 2014”. (UFBU leaders and our readers can read the full circular at the link given below :  http://aiboc.org/wp-content/uploads/2014/01/aiboc-cir-2014-07.pdf )
Let our readers decide whether I am pessimistic or UFBU leaders are over-optimistic of IBA’s words.
 
Let us see some more extracts from UFBU circulars of  2014 :
·         Based on the negotiations held on 13th June, 2014, UFBU came with a circular dated 16th June, 2014, where it was stated “….. Since UFBU refused to accept the IBA’s offer of 11% increase, IBA wanted to know the expectation of the UFBU for which it was informed that our minimum expectation is 25% increase in the Pay Slip components cost.”  (http://aiboc.org/wp-content/uploads/2013/10/aiboc-2014-42-1.pdf )
 
·         In circular dated 27th June, 2014, UFBU has informed “Accordingly, the delegation of UFBU met Shri Arun Jaitley, Honble Minister of Finance, today in New Delhi and submitted a Memorandum on wage revision. The Finance Minister assured that he would call for the particulars and details from the Finance Ministry and look into the matter”. [I am not aware whether  UFBU leaders  made any attempt to meet thereafter to  the Finance Ministry officials  and confront the officials as to what happened to the assurance of FM ? or was it only a Photo Session to be uploaded on their websites? ] 
 
·         In circular dated 13th October, 2014 UFBU has informed that “It is two years since we submitted our charter of demands. While 13 rounds of negotiations have taken place, there is no satisfactory progress in the talks because of the negative attitude of the IBA/Government. Everyone is aware that employees and officers in the banking sector are doing their best to serve the customers and implement various schemes of the Government despite innumerable hardships and difficulties. Yet, the genuine demand for adequate wage revision is being delayed and denied” (http://aiboc.org/wp-content/uploads/2013/10/aibocclr-2014-70.pdf )
 
The above clearly indicates that till 3 months back (in October 2014), UFBU considered the attitude of IBA / Government as NEGATIVE.  It also considered that their demand of 25% were genuine and IBA is denying the same.
 
It is on account of such experiences that Aam Banker is totally frustrated and UFBU has lost its credibility and trust of its cadre.   Aam Banker wants to know what has happened in last three months they they are ready to bring down their demands from 25%, and ready to agree around the offer of 12.5%?  Some of the people are openly charging on social media the leadership of betraying their cadre and having under hand dealings with IBA.  
 
Although Sub-Committees had meetings on 14th and 19th, but UFBU is afraid of openly discussing whether any proposal has actually been accepted by IBA or everything is only under discussion with IBA’s so called positive postures.   It appears IBA is only taking part in discussions and not committing to any of other demands of 5 day week or regulated working hours for officers etc.
 
Now the negotiations are entering the final stage and there is a need for more transparency and quick detailed communication (not SMS) with the cadre by uploading the details within three hours of the conclusion of the talks.  In case some units of UFBU feel that they are being pressurized, let them demand for recording of the talks from now onwards so that the bankers know who stands where? 
 
 If the discussions in Parliament can be put on live TV, why we can not have recording of the negotiations?  Why UFBU leaders are afraid?  Are they incompetent and will be exposed before the whole banking community? These are some of the questions which needs to be answered.  We will wait whether IBA keeps its words this time and UFBU able to satisfy the aspirations of the bankers.
 
Details of Circulars Issued by AIBOC & UFBU After
 
Deferring the 4 Day Strike
 
 
 
Just after we have uploaded the article today under the heading “ Deferment of 4 Day Strike Has Only Fuelled  Anger Among Aam Banker and Exposed  That  UFBU  Has Deep Rooted Differences Among Its Constituents we received some more circulars / information, which  we are uploading now, for the information of readers so that they remain updated .
At the end we are giving our comments in continuation of our above referred article uploaded  today (i.e. 20/01/2015).
UFBU Circular dated 19/01/2015, reads as follows
 
QUOTE:  “IBA ASSURES EXPEDITIOUS WAGE SETTLEMENT
FOUR DAYS’ STRIKE FROM 21ST TO 24TH JANUARY 2015 PUT ON HOLD
In our previous Circular, we have informed that while agreeing for formation of Sub-Committees for other issues relating to wage revision, we had suggested for holding of Meetings of Sub-Committees immediately without any loss of time.  Accordingly, IBA called for Sub-Committee meetings on 14th January 2015 to discuss on issues relating to demands of Officers as per charter of demands and on 19th January 2015 to discuss on Health Insurance in lieu of Reimbursement of hospitalisation expenses and issues relating to Workmen employees as per charter of demands.

Health Insurance Scheme:
 Members are aware that our charter contains demands for improvements in existing Medical Scheme and extension of 100% reimbursement facility for family members.  IBA proposed for introduction of Medical Health Insurance Scheme and provide for wider coverage.
 
In this background a Sub-Committee Meeting headed by Shri Arun Tiwari, Union Bank of India representing the IBA and all the Nine General Secretaries representing constituent Unions/Associations of UFBU was held on the 19th January 2015.  After thorough deliberations, UFBU pointed out the loose ends to be tied up and suggested for further improvements in the scheme.  IBA assured to take up the issues with the concerned and have another round of discussions.
Meetings On Service Conditions of Officers’ And Workmen:
 In the meetings held separately on 14th and 19th January 2015 with Officers Organisations and Workmen Unions respectively, the issues relating to Disciplinary Matters of Officers, Regulated Working Hours, 5-Day banking and Improvements in Leave Rules were discussed.  Further discussions are to be continued.
 IBA also assured that they would further pursue the matter with Government and deliberate in the Managing Committee Meeting of IBA to be held on the 31st January 2015 with all sincerity and hold discussions with us in the first week of February 2015 to improve the offer further to reach finality.  
UFBU Meeting Held on 19th January 2015:
In this background, the representatives of constituent unions of UFBU met in Mumbai on 19th January 2015.   Extensive and comprehensive discussions were held to review in detail the developments on the Wage Revision front starting from the Conciliation held by the Chief Labour Commissioner (Central) in New Delhi on 5th January2015, followed by the Negotiations with IBA on 6th and 7th January 2015 and also the Sub-Committee meetings held thereafter.  
It was unanimously opined that the IBA had to improve their offer from 11% to 12.5% because of the strenuous efforts of UFBU through strike actions/decisions.  The meeting also attributed the credit for the change in the adamant stance of IBA to all the members who made the strike a total success through their enthusiastic participation.
 In the background of the assurance given by IBA towards expeditious wage settlement and also considering the positive developments since the conciliation meeting held on 5th January 2015, it was unanimously decided by the UFBU to put on hold the Four days’ continuous strike from 21st to 24th January 2015.  It was further decided to vigorously pursue the issues relating to regulated working hours for officers and 5-day banking along with satisfactory increase in offer from 12.5% of pay slip components.  It was also decided to revive the strike action if there is no satisfactory outcome in the next meeting and go ahead with 4/5 days’ strike in the month of February 2015.
 Comrades, the united and determined struggle of all Officers and Workmen alone would bring success in achieving our goals and target.
 Be United - March ahead with solidarity and unity – Success will be ours.
          Sd/-
  (M.V. MURALI)
   CONVENOR
 
 
Additional Information given by AIBOC in its circular dated 20th January, 2015
 You must have come to know by now that our Confederation (AIBOC)  strongly took up the position of adhering to the strike call through the views expressed by your Representatives in the meeting. However, other organizations were not in agreement with our views. After making all efforts to convince other constituents of UFBU to implement the strike call and considering all the pros and cons of our organization going on strike along with only one Award Staff Union (NOBW) will not serve the purpose and will also send signals against the Unity of UFBU. We with very heavy heart agreed to withhold the four days strike with certain conditions. The Convenor of the UFBU has incorporated our feelings and conditions viz. resolving Five days banking and regulated working hours for the officers along with reasonable Salary Revision in the first week of February, 2015, failing which minimum four days strike (with 15 days requisite notice period) would be revived, in the Letter addressed to the Chairman of the IBA.
Comrades, in democratic Organisations like UFBU which consists of Officers’ Organisations and Award Staff Unions with different backgrounds and political Affiliations, differences in opinions are bound to be there. However, we assure you that we are committed to the cause of Workmen class in general and our members in particular to achieve a better service conditions.
   (HARVINDER SINGH)
  GENERAL SECRETARY
 
 
 
 TEXT of the Letter Sent by Convenor of UFBU to IBA on 20th January, 2015
 
 
 
 
Comments by AllBankingSolutions.com
 
 
·         The circular of UFBU does not give anything new and merely mentions about the discussions and IBA’s assurances.   Nothing concrete has yet been committed by IBA.  There are merely and merely discussions and views expressed by UFBU and IBA has not yet shown their mind on even non monetary issues;
 
 ·         There were two Unions – AIBOC and NOBW, who wanted to go on strike, and all other 7 unions supported the cause of IBA / Govt in canceling the four day strike from 21st to 24th January, 2015.  I believe AIBOC and NOBW did the right thing as at this stage to walk out of the UFBU would have complicated the issues.
 
·         AIBOC has ensured that two of its non monetary demands (i.e. 5 day working and regulated working for officers remain on the main agenda of the discussions in the sub-committees), and must be resolved alongwith wage revision.
 
We have wait for the response of IBA and whether it really moves forwards and again plays its card so as to corner the UFBU and the leaders are almost forced to sign on the dotted lines.  Now more and bankers will be looking towards AIBOC and NOBW, whether they continue to show their aggressive stands.

 

Reactions On Strike Cancellation

IBA-union standoff over wage pact could end soon -Hindu Business Line-22.01.2015

Kochi, January 21:  

The nearly two-year-old stand-off between bank managements and bank employee unions over revision of wage agreement will, if all goes well, come to an end in a fortnight, sources indicate.
 
The deferment of the continuous four-day national strike, scheduled to begin on January 21, is considered a positive indication that the Indian Banks’ Association (IBA) and the United Forum of Bank Unions (UFBU) are heading for an agreement, sources say.
Informal assurance

The strike, which would have resulted in an effective shutdown of the banking industry for a week, was put on hold on an informal assurance from the IBA that it would marginally improve its last offer of 12.5 per cent increase in bank employees’ salaries.
 
Both sides have made compromises on many of the other demands, such as medical benefits. The wage increase rate is the only stumbling block before an agreement now.
 
Rajiv Rishi, Chairman of the IBA negotiating team, who is also the CMD of Central Bank of India, had told the UFBU that the next round of negotiations would be held in the first week of February. A union official told Business Line that they expected the talks to be held mostly on February 3.
 
IBA meeting
The IBA has called a meeting of its managing committee for January 31. The meeting, which will be attended by the CMDs of most banks, is expected to give the IBA the go-ahead for improving the offer of wage rise from the latest offer of 12.5 per cent.
However, the unions are not expecting a big jump in the offer.
The IBA, the bank managements, the Centre and bank employee unions are all not for continuing the wage negotiations that have been going on for more than a year and ahalf.
The unions, which met on Monday evening, however, decided that if the negotiations did not reach their logical end in the first week of February, they would go in for a long continuous national strike.
 
Bank Unions meet Jayant Sinha to press for early wage revision-Sentimes-22.01.15
 
New Delhi: A section of public sector bank employees unions today met Minister of State for Finance Jayant Sinha to press for early wage revision
A meeting comes two day after the unions deferred their four-day strike that was to begin today as Indian Banks’ Association (IBA) assured that wage issue will be resolved by the first week of February.
 
National Organisation of Bank Workers and National Organisation of Bank Officers, under the leadership of Bhartiya Mazdoor Sangh (BMS), met Sinha and submitted the memorandum on the demands of the bank employees, said a statement by the unions.
In a representation to Sinha, it said honest negotiations which could break any stalemate. There was a rise of 17.5 per cent (Rs 4,816.00 crore) on total establishment expenses during the last 9th Bi-partite settlement.

“We request you to kindly intervene and advise IBA to keep above at least the level of last wage revision. If our demand of 19.5 per cent on pay slip component is considered, it may cost (Rs 6,143 crore). So far IBA has offered only Rs 3,937 crore and gap is Rs 2,206 crore,” it said.

Banking Service Recruitment Board (BSRB) should be reconstituted and all the recruitments in banks must be channelised through BSRB and state or region wise. Working of the IBPS is neither satisfactory nor transparent, it suggested.

Besides, minimum qulification for the post of clerk should be 12th pass instead of graduation. This will bring down the rate of exodus and after 5-6 years of service and banks can get trained and loyal officers, it recommended.

Delegation was represented by Pawan Kumar, Virender Kumar from BMS, Ashwani Rana and Manmohan Gupta from NOBW, S U Deshpandey and Bhale Rao from NOBO.

http://www.tkbsen.in/2015/01/bank-unions-meet-jayant-sinha-to-press-for-early-wage-revision/

NATIONAL ORGANISATION OF BANK WORKERS (REGD)
(An Industrial Federation of Bharatiya Mazdoor Sangh)
Central office: 542, Dr. Munje Marg, Congress Nagar, Nagpur – 440 012
Ph. 0712-2460808, Fax 0712-2420850 E-mail – nobwco.ngp@gmail.com

REF: NOBW/002/2015 DATED: 21.01.2015

To
Shri Jayant Sinha,
Hon’ble Minister of State for Finance,
Ministry of Finance,
Govt. of India,
North Block
NEW DELHI - 110 001


Respected Sir,

10TH BI-PARTITE SETTLEMENT FOR BANK EMPLOYEES

Wage revision of the bank employees has been due from 1st November 2012. Last wage revision settlement was signed on the 24th April, 2010. The wage negotions between United Forum of Bank Unions (UFBU) and Indian Banks' Association (IBA) have been going on for last 2 years. Dring the negotions, Unions have been flexible and scaled down their wage rise demand from 35% to 19.5%. On the other hand, IBA is claiming they too have shown flexibility in the matter. But the fact is that they started from negligible 5% which has been upped to 12.5% (Rs. 3937.00 crores) on pay slip components so far.

The Organisation believe in honest negotiations which could break any stalemate. We had a rise of 17.5% (Rs. 4816.00 crores) on total Establishment expenses during the last 9th Bi-partite settlement. We request you to kindly intervene and advise IBA to keep above at least the level of last wage revision. If our demand of 19.5% on pay slip component is considered, it would may cost (Rs. 6143.00 crores). So far IBA has offered only Rs, 3937.00 crores and gap is Rs. 2206.00 crores.

COMPASSIONATE APPOINTMENT IN BANKS
After a long struggle and agitation by the Organisation, the demand of Compassionate Appointment was considered by the present Govt w.e.f. 5th August, 2014. We are thankful to the Govt. for considering long pendiing demand. However, the cases prior to 5th August 2014 have been left out and could not be benefited. Therefore, we request you to kindly consider the cases of prior to 2014 also.

INDUSTRIAL RELATIONS (IR) MEETINGS WITH AFFILIATED UNIONS OF NOBW & BMS

Unions affiliated to National Organisation of Bank Workers and Bharatiya Mazdoor Sangh working in different banks are facing industrial relations problems especially due to negation of Industrial Relations meetings. Notwithstanding that all these unions have been registered under Trade Unions Act, 1926, equal treatment in the parlance of law is not being extended to them by the respective bank managements. Consequently, unions have to approch Labour courts for getting justice in petty matters which has now became a cumbersome process. Surprisingly, even though our union is in majority at any particular State leval, IR meetings platform is not made available to them under the pretext of majority recognised concept. In fact, Recognition by Majority has no place in the provisions of existing labour laws.

Since Bhartiya Mazdoor Sangh is the number one Central Trade Union of the Country, all our unions affiliated to BMS should get the benefit of IR meetings so that meaningful dialogues could be held with Bank Managements.

RECRUITMENT IN BANKS
1) Banking Service Recruitment Board (BSRB) should be reconstituted and all the recruitments in Banks must be channelised through BSRB and State/Region wise. Working of the IBPS is neither satisfactory nor transparent.

 2) Minimum qulification for the post of Clerk should be 12th pass instead of Graduation.
This will broght down the rate of exodus and after 5-6 years of service, Banks can get trained and loyal officers.

Thanking you,
Yours Sincerly,
(ASHWANI RANA)
VICE PRESIDENT



Bank Unions meet Jayant Sinha to press for early wage revision -Economic Times 22.01.2015NEW DELHI: A section of public sector bank employees unions today met Minister of State for Finance Jayant Sinha to press for early wage revision.

A meeting comes two day after the unions deferred their four-day strike that was to begin today as Indian Banks' Association (IBA) assured that wage issue will be resolved by the first week of February.

National Organisation of Bank Workers and National Organisation of Bank Officers, under the leadership of Bhartiya Mazdoor Sangh (BMS), met Sinha and submitted the memorandum on the demands of the bank employees, said a statement by the unions.

In a representation to Sinha, it said honest negotiations which could break any stalemate. There was a rise of 17.5 per cent (Rs 4,816.00 crore) on total establishment expenses during the last 9th Bi-partite settlement.

"We request you to kindly intervene and advise IBA to keep above at least the level of last wage revision. If our demand of 19.5 per cent on pay slip component is considered, it may cost (Rs 6,143 crore). So far IBA has offered only Rs 3,937 crore and gap is Rs 2,206 crore," it said.

Banking Service Recruitment Board (BSRB) should be reconstituted and all the recruitments in banks must be channelised through BSRB and state or region wise. Working of the IBPS is neither satisfactory nor transparent, it suggested.

Besides, minimum qulification for the post of clerk should be 12th pass instead of graduation. This will bring down the rate of exodus and after 5-6 years of service and banks can get trained and loyal officers, it recommended.

Delegation was represented by Pawan Kumar, Virender Kumar from BMS, Ashwani Rana and Manmohan Gupta from NOBW, S U Deshpandey and Bhale Rao from NOBO.

http://economictimes.indiatimes.com/industry/banking/finance/banking/bank-unions-meet-jayant-sinha-to-press-for-early-wage-revision/articleshow/45968885.cms?from=mdr

Burger flippers in the US make about as much as state bank chiefs in India

Low wages at state-owned banks had prompted more than a million employees to threaten a four-day strike starting Monday

Running a state-owned bank in India pays little more than flipping burgers at McDonald's and Burger King outlets in Los Angeles International Airport, where the minimum cash wage is $11.03 an hour. In India, state-run bank chiefs make about $11.40.

They do get perks that American wage-earners don't: a car, a driver and free housing. Still, the heads of India's five biggest
state-owned banks earn annual salaries and bonuses of Rs 20 lakh to Rs 25 lakh ($32,400 to $40,500), based on the latest data available. That works out on average to about 705 rupees an hour for what bank spokesmen say are 60-hour workweeks that include Saturdays. Their pay is less than five per cent of that at India's private banks, where chief executive officers also earn stock options.

"Significant and widening compensation differences with private-sector banks, leading to the erosion of specialist skills," is constraining the ability of government-controlled lenders to compete for market share and profits, according to a report last year by a panel appointed by the Reserve Bank of India. Market share by assets of state-run banks will fall 10 percentage points by 2025 from 73 per cent in 2013, it stated.

Low wages at state-owned banks had prompted more than a million employees to threaten a four-day strike starting tomorrow. Unions announced today they were deferring the strike after bank management promised to raise salaries an unspecified amount by February 15.

Indefinite strike
A teller at a state-run bank makes less than Rs 20,000 a month, or about $1.70 an hour for a 48-hour workweek. Top management, including managing directors and chief general managers, aren't members of the trade unions threatening to strike.

Unions are demanding a 19.5 per cent increase and have threatened to strike for the four-day period as of February 15 and indefinitely starting March 16 if the demand isn't met. The banks had offered 12.5 per cent, which was rejected. "Bank managements are not willing to give us a reasonable salary hike, saying that the banks cannot afford higher raises as profits are under pressure due to the rise in nonperforming assets," C H Venka-tachalam, general secretary of the All India Bank Employees Association, a union representing 500,000 mostly state-run bank employees, said in a phone interview from Chennai. "If there is no positive action on this front within that time frame, we will go ahead with the strikes."

'Same Weight'
R K Dubey, head of Canara Bank (CBK) until he retired in September, earned about 2 million rupees on an annual basis while running the country's fifth-largest lender, based in Bengaluru, formerly Bangalore, according to company disclosures.

Mumbai-based State Bank of India Chairman Arundhati Bhattacharya's annual salary was roughly comparable during her first year heading India's largest bank. S S Mundra, who until July was chairman of India's second-largest lender, Bank of Baroda, was the highest-paid, at Rs 25 lakh. The positions at Canara and Bank of Baroda (BOB) remain vacant awaiting government appointees.

The current and former chairmen declined to comment on their salaries, according to the banks' spokesmen.

"They should be paid more and offered stock options like their peers in the private sector, as they are pulling the same weight," Aditya Narayan Mishra, president of staffing in India for human-resources firm Randstad Holding NV (RAND), said in a phone interview from Bengaluru.

Stock Options
At India's largest private lender, Mumbai-based ICICI Bank Ltd, CEO Chanda Kochhar was paid more than Rs 520 lakh in the 12 months through March 31, according to the lender's annual report. That works out to $263 per hour for a 60-hour week. While the amount includes a performance bonus, car and driver and other allowances, it excludes stock options of more than 290,000 shares for the year, the company's annual report shows. The stock rose 60 percent last year.

Kochhar's earnings were a little more than half of the $1.5 million salary paid to JPMorgan Chase & Co. CEO Jamie Dimon for 2013. Dimon's total compensation for the year included restricted stock worth $18.5 million. Jiang Jianqing, chairman of

China's largest state-owned lender,Industrial & Commercial Bank of China Ltd, earned less than two per cent of Dimon's total compensation while reporting twice the profit of the New York-based bank.

Declining profits
India's government holds a majority stake in 22 lenders including State Bank of India, which in turn has a majority stake in five other banks. Declining profits as a result of slower loan growth and rising bad debt are eroding their capital buffers. Stressed assets at government banks, including soured debt and restructured loans, rose to almost 13 per cent of total lending as of September 30, the highest level since 2001, central bank data show.

The ratio stood at 4.4 percent for privately owned banks. Annual loan growth at state-controlled lenders fell to 8 percent as of September, two percentage points less than the country's banking system, according to the data.

"The management shouldn't hold back on salary increases that are due because of the rise in nonperforming loans," said the union's Venkatachalam. "They are not responsible for this. It is the guilty, the defaulting corporates, who should be punished."

Unions have been seeking higher salaries since 2012, when the last agreement negotiated in 2007 expired.

Costly Drives
The government calls on state-run banks for costly financial-inclusion drives. The latest, announced in August, was aimed at providing bank accounts to 75 million Indian households without access to the formal financial system.

"As state-run banks have to support various government schemes and financial-inclusion efforts, productivity and profit per employee is lower than private-sector banks," Randstad's Mishra said.

State-owned banks "need to devise performance and merit-based differentiated compensation structures as well as promotion processes," said Monica Agrawal, Gurgaon-based executive-search consultant for financial services at the India unit of Korn Ferry International. (KFY)

Job openings at state-run banks still draw aspiring candidates. Last year, when State Bank of India had 1,897 vacancies for trainee officers, 1.9 million people applied. That amounts to 989 job-seekers for each opening.

Entry-level salaries at state-run banks are higher than those at private-sector lenders. Applicants are also drawn by job security. Government-controlled lenders, unlike those in the private sector, tend not to fire employees.

Minimum Wages
At the equivalent of $1.70 an hour, entry-level state-run bank employees earn about $4,200 a year. Workers at Los Angeles airport establishments earn a minimum cash wage of $11.03 an hour plus a mandatory $4.81 for health-care benefits, for a total of $15.84. The federal minimum wage is $7.25.

In China, the five largest state-controlled banks in 2013 paid their combined 1.7 million employees an average of 230,300 yuan ($27,200) in salaries, bonuses and benefits, according to data compiled from annual reports. China's only private lender paid one-third more on average, the data show.

By the time India's bank employees reach mid-management, the pay at private banks is more than twice that of public-sector salaries, Randstad's Mishra said. The difference continues to widen as rank grows, he said.

"After putting in so many years in the state-run banks' environment, most of them don't want to move out of the comfort zone and let go of the job surety, lifestyle or pension benefits," Mishra said. "Also, many of them would have lost the mindset and skills needed in the private sector."



Indian BANK Kumar-Submits on Facebook
 
Com.G.V. Manimaran,
senior VicePresident,AIBOC,
(Also G.S./Canara Bank Officers Association)
Has resigned from negotiating committee on wage revision,
to show ...
his dissatisfaction ,over the way the strike was cancelled.
He has confirmed the news in his FB page.
*********
He writes.....
Dear friends,
I have seen many reactions from our members and well wishers about my decision of keeping my self away from the AIBOC NEGOTIATING TEAM.
Believe me friends, I have not done so to project me a martyr or a rebel, but, it is the time to ventilate my feelings.
Canara bank officers' Association members who are regularly reading my letters must be knowing that I am constantly and continuously preaching following points for the last three years…….

Fortunately the offices were recruited in big number from 2009 and I have been mentioning in various letters that it is primarily the responsibility of IBA and the Govt. to recruit and retain the INDIAN YOUTHS in the banking industry for which an attractive remuneration to be paid otherwise the industry will come to a grinding halt.
But despite our best efforts, it was not appearing that the IBA and GOVT understood that it was their responsibility basically to recruit competent officers and be retained by paying attractive remuneration.
Today about 40 to 60 % of the officers are recruited after 2009 in various banks, balance about 25% will be retiring in another 3 years and will be filled either by the officers recruited from now on or by promoting from out of the employees recruited after 2009.
However, in the Industry, in another three years, 75% of the officers will be in the age group below 35 years and they are going to hold the position of Scale I, II and III with less exposure in banking………...
With the outsourcing of maintenance and computerisation the number of sub staff and PTEs will be reduced in banks and thus the strength of officers will be equal to employees in the banking sector.
When the number of officers are increasing, the role and responsibility of the officers Organisation also have to be improved.
Thus it is the primary responsibility of IBA and a catalytic role of officers organisations to create conducive, comfortable, comparable and secured Woking condition for the work force in the future banks so as to attract the intellectual Indian youths to be recruited and retained in the industry.

Let us be transparent and gain the courage to tell the cadres on the settlement and we need not hesitate to share the information with the members rather than increasing hype which is the primitive style……
I always believe that agitations and strikes are to attract the attention of the Masters towards the issues and not to damage the industry and institution.
Similarly, my resignation from the AIBOC negotiating team is to draw the attention of the leaders to the issues and expecting cadres and not to become MARTYR or to weaken the movement.
Thanks for the support.
Manimaran G V


Sandeep Akhouri writes on Facebook (Link Given Below)

(Also read  Views of Debojit Dutta Given at Bottom)


Let us first read two short messages sent by two top leaders :-

 (a) C H Venkatachalam, Gen. Secretary, AIBEA : The proposed 4 days continuous strike by 10 lacs bank employees under the banner of United Forum of Bank Unions has been put on hold and deferred. During the last round of meeting held on 6th instant, IBA improved their offer of wage increase from Rs. 3465 crores to Rs. 3938 crores i.e. from 11% to 12.5%. Though it is not an acceptable offer, since IBA offered further improvements during further negotiations, the proposed strike on 7th instant was deferred. Further discussions have continued in the Sub-Committees on 14th and 19th instants wherein issues other than wage increase and pertaining to other service”.


(b) Harvinder Singh of AIBOC : "Four days strike put on hold as IBA promised to resolve the salary revision issues by the first week of Feb 2015. If no satisfactory outcome is reached fresh strike dates for 4/5 days in the month of February would be announced. Circular follows”.

An Analysis of Above Message

The above two messages clearly indicates that IBA refused to talk on the issue of hike in pay slip component, which at present is offered at 12.5%. UFBU unilaterally decided to put on hold (other word for cancellation ) the 4 day strike for which bankers have been waiting for 2 years, so as to build some genuine pressure on the IBA / GoI. In the blame game, some reports are coming where each union is blaming others for pressing for cancellation of the strike. 

 (ii) IBA has merely orally promised to resolve the issue by first week of February, 2015. All UFBU units appears to have taken this as gospel truth, and accepted the same bowing before the Almight IBA.


No Lessons Learnt from Past by UFBU :
Some of the readers have mentioned in the comments column that my attitude is negative towards unions, and thus trying to misguide younger generation of employees. They have every right to hold their opinion as I have every right to write freely and frankly my views. Let me take my readers one year back i.e. January 2014.

· In UFBU circular dated 17th January, 2014 (while deferring the strike announced for 20th and 21st January, 2014) has written “………. IBA also reiterated that they would expedite the negotiations and conclude the Settlement by June, 2014,…………Looking to their (IBA) improved offer and assurance to expedite the settlement, it was decided to defer our agitational programme and proposed strike action on 20th and 21st January, 2014”. (UFBU leaders and our readers can read the full circular at the link given below : http://aiboc.org/wp-cont…/uploads/…/01/aiboc-cir-2014-07.pdf )
Let our readers decide whether I am pessimistic or UFBU leaders are over-optimistic of IBA’s words.

Let us see some more extracts from UFBU circulars of 2014 :

 · Based on the negotiations held on 13th June, 2014, UFBU came with a circular dated 16th June, 2014, where it was stated “….. Since UFBU refused to accept the IBA’s offer of 11% increase, IBA wanted to know the expectation of the UFBU for which it was informed that our minimum expectation is 25% increase in the Pay Slip components


cost.” (http://aiboc.org/wp-content/uploads/…/10/aiboc-2014-42-1.pdf )
· In circular dated 27th June, 2014, UFBU has informed “Accordingly, the delegation of UFBU met Shri Arun Jaitley, Hon‟ble Minister of Finance, today in New Delhi and submitted a Memorandum on wage revision. The Finance Minister assured that he would call for the particulars and details from the Finance Ministry and look into the matter”. [I am not aware whether UFBU leaders made any attempt to meet thereafter to the Finance Ministry officials and confront the officials as to what happened to the assurance of FM ? or was it only a Photo Session to be uploaded on their websites? ]

· In circular dated 13th October, 2014 UFBU has informed that “It is two years since we submitted our charter of demands. While 13 rounds of negotiations have taken place, there is no satisfactory progress in the talks because of the negative attitude of the IBA/Government. Everyone is aware that employees and officers in the banking sector are doing their best to serve the customers and implement various schemes of the Government despite innumerable hardships and difficulties. Yet, the genuine demand for adequate wage revision is being delayed and denied” (http://aiboc.org/wp-conte…/uploads/…/10/aibocclr-2014-70.pdf )

The above clearly indicates that till 3 months back (in October 2014), UFBU considered the attitude of IBA / Government as NEGATIVE. It also considered that their demand of 25% were genuine and IBA is denying the same.

It is on account of such experiences that Aam Banker is totally frustrated and UFBU has lost its credibility and trust of its cadre. Aam Banker wants to know what has happened in last three months they they are ready to bring down their demands from 25%, and ready to agree around the offer of 12.5%? Some of the people are openly charging on social media the leadership of betraying their cadre and having under hand dealings with IBA. 
 
Although Sub-Committees had meetings on 14th and 19th, but UFBU is afraid of openly discussing whether any proposal has actually been accepted by IBA or everything is only under discussion with IBA’s so called positive postures. It appears IBA is only taking part in discussions and not committing to any of other demands of 5 day week or regulated working hours for officers etc.

Now the negotiations are entering the final stage and there is a need for more transparency and quick detailed communication (not SMS) with the cadre by uploading the details within three hours of the conclusion of the talks. In case some units of UFBU feel that they are being pressurized, let them demand for recording of the talks from now onwards so that the bankers know who stands where?

If the discussions in Parliament can be put on live TV, why we can not have recording of the negotiations? Why UFBU leaders are afraid? Are they incompetent and will be exposed before the whole banking community? These are some of the questions which needs to be answered. We will wait whether IBA keeps its words this time and UFBU able to satisfy the aspirations of the bankers.
https://www.facebook.com/groups/barodians.bob/permalink/947055745305949/

CIRCULAR LETTER NO. 27/110/2015/6 , 21st January, 2015
TO ALL OFFICE BEARERS, STATE FEDERATIONS AND
ALL INDIA BANKWISE ORGANISATIONS

Dear Comrades,

We are sure that all our units are getting ready for the participation of the young delegates in our ensuing All India Youth Convention. There is enthusiastic response from most of the States including from far off States like Assam ( 22 delegates ), Tripura ( 12 delegates), etc. It is going to be a unique occasion because this would be the first exclusive All India Youth Convention being organised by AIBEA. In the recent years we have already observed the keen interest the young employees are taking in our trade union activities by participating in all the programmes like demonstrations, strikes, rallies, etc.

  We have seen them in our last AIBEA Conference in Kochi and in the recent All India Women Employees Convention wherein they not only participated but also articulated their views and suggestions effectively. In the State-level conventions also they have participated with lot of interest. Hence we look forward to a successful Convention with their enlarged participation in the programme. Hyderabad awaits to receive all of these young comrades.
Convention Schedule: The programme will commence at 10-00 am on 31st January, 2014 (Saturday) and end around 6-00 PM on 1st February, 2015.
31st Jan. 8-30 AM Registration
10-00 AM Delegates’ Session
4-00 PM Public Session
1st Feb. 9-30 AM Delegates’ Session
6-00 PM Conclusion

List of Delegates: All the State Federations should immediately send to us ( with copy to the hosts APBEF ) the list of the names of the Delegates to the Convention. This is very important as we have to keep the documents, Delegate Card, etc. ready for distribution on 31st morning.

Arrival/Departure details: All our State Federations should also clearly intimate to APBEF about the details of arrival and departure of the Delegates, train name, time/date of arrival-departure, etc. as the Reception Committee is making arrangements for transportation both for receiving the delegates on arrival and to see off at the time of departure.

Accommodation: Accommodation in hotel rooms is being arranged by the host unit – APBEF for all then participants who inform them in advance. It would be around Rs. 500/550 per head per day. The cost /rent for the accommodation will be borne by the participants/units. All our State Federations should immediately inform APBEF about their room requirement and also remit the amount to them. Booking rooms at the last minute would be very difficult.

IMPORTANT: Those who do not need accommodation to be booked by APBEF should immediately inform them because full advance rent is being paid to the hotels which would be non-refundable. If no information is received in this regard, APBEF will book the rooms for all the delegates from the concerned State and State Federations may have to pay for the same. Hence provide the information to APBEF urgently.
 
For all the women delegates from different States, rooms are being booked in one hotel in the interest of their safety, easy commutation the convention venue, etc.
Similarly, the check-out time would be 24 hours. Those who check-in on 31st morning and if they are leaving on 1st evening, they may choose to vacate the rooms on 1st morning and save one day rent. In that case, this information should be informed to APBEF so that booking can be done accordingly.
Special co-operation of our State Federations is requested in this regard.
With greetings,
Yours Comradely,

C.H. VENKATACHALAM
GENERAL SECRETARY


Debojit Dutta Writes on FAcebook

Friends.. UFBU vide its circular dated 17th January, 2014 (while deferring the strike announced for 20th and 21st January, 2014) had written “………. IBA also reiterated that they would expedite the negotiations and conclude the Settlement by June, 2014,…………Looking to their (IBA) improved offer and assurance to expedite the settlement, it was decided to defer our agitational programme and proposed strike action on 20th and 21st January, 2014”.
Now see the contents of the messag...
e issued by IBA on 19th Jan. 2015 ..

“IBA also assured that they would further pursue the matter with Government and deliberate in the Managing Committee Meeting of IBA to be held on the 31st January 2015 with all sincerity and hold discussions with us in the first week of February 2015 to improve the offer further to reach finality”. 


Friends.. while going through the above two comments issued in a span of 12 months, you can very well understand the intentions of both the negotiating parties i.e. IBA and UFBU.


 Now, what is the guarantee that the talks will be finalized in the first week of February as assured by the IBA and upon that assurance 7 out of nine constituents of UFBU decided to defer the all-important strike from 21-24 Jan’15. When each and every member of the banking fraternity was mentally prepared to go on the 4-day strike, the decision to put on hold the strike will send a negative message among bankers.


 Its high time to give this issue a serious thought.. Bankers.. please wake up and show the solidarity in unearthing the truth behind all this. When the joint efforts of bankers can register India’s name in the Guinness Book of World records for opening accounts under PMJDY, why can’t we join hands together for the genuine cause of one million bankers of the country..


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