PART 2

Reply of CHV  In Response on Letter Dated 12th May  2015  of AIBRF

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

14-5-2015
To
General Secretary
All India Bank Retirees Federation
D-1/1, Sector-C, Scheme-71,
Near Kasara Bazar School, 
Indore – 452 009

Dear Sir,

We are in receipt of your letter dt. 12-5-2015 addressed to the Convener of UFBU with copy to us.

On behalf of AIBEA and even UFBU, we would like to say that the contents of the letter are unwarrantedly provocative and not based on full facts. The demands relating to Retirees were included in the charter of demands not at the behest of anyone but out of our own conviction that these issues have to be taken up for resolution.

The following 4 important demands have been taken up by us with the IBA and Government.

• Medical Scheme for the retirees
• Improvement in family pension
• 100% DA for pre-Nov. 2002 retirees
• Periodical updation of pension

Due to the consistent efforts of UFBU, for the first time in the industry-level bipartite service condition, IBA has agreed and the proposed medical scheme would provide for continuation of the benefits even after the retirement of an employee or officer. This is a major achievement of the UFBU.  Further, it has been agreed that the same scheme would be made applicable to all the past retirees also. This is by no means an ordinary achievement.

Regarding improvement in Family pension, we have repeatedly informed everyone that IBA and the Government are very sympathetic to this issue and the cost implications have to be worked out before a final decision is taken. UFBU has informed IBA that the improvements in Family pension should apply not only for the existing employees but for the retirees as well. In view of AS15-R, the cost implications of funding the additional fund required cannot not lost sight of. The demand has not been negatived but under serious consideration. From AIBEA we have even offered to negotiate the cost to find an amicable solution.

Regarding 100% DA for past cases, the IBA and the Government were willing to consider the same. But of late we find that they feel that the matter is subjudice for discussions as some court cases are pending before Supreme Court for which we are not responsible. Yesterday only you informed us that the court cases can be withdrawn to pave the way for a solution to this issue.

On the issue of updation of pension, IBA has very serious reservations in view of the cost implications which is very high according to them. So we have asked for the details of number of pensioners, present pension, etc. so that we can work out the cost and fund required for the same and then pursue the matter further. It is a very important issue but also a difficult one to tackle. Even in RBI this issue has not been resolved despite cost not being a problem.

All these developments have been periodically informed to you but still you have chosen to be oblivious to all the efforts and constraints of the unions.

If your letter is to request for further efforts, it would be viewed accordingly. If otherwise, we will take it on our strides.

All of us know that when various issues and demands are placed before the management, all of them do not get settled fully and in one go. You are not unaware of the same. But then to accuse that UFBU has betrayed, it is too much of a comment.

Please by assured that AIBEA and UFBU are doing what is best possible in the matter.

With greetings,
Yours comradely,

C.H.VENKATACHALAM 
GENERAL SECRETARY

 PART 3

AIBRF WRITES FURTHER LETTER ON 15th MAY'15,TO CONVENOR,UFBU WITH DETAILS

Letter Ref No 2015/041,Dated 15.05.2015 is furnished here under for information of all:

Shri M.V.Murli
Convenor, United Forum of Bank Unions
Hyderabad

Dear Sir

Re; 10th Bipartite Settlement

With due respect to UFBU, its constituents and the leadership, on behalf of lakhs of bank retirees we place the following submission for your consideration and appropriate action.

(1) We understand that bank unions are going to sign the settlement on 22nd May 2015 or in near future thereafter. As per the communications issued, UFBU has been able to secure increase of 15 percent on payslip components amounting to about Rs. 4500 crores per annum for the employees effective from 1.11.2012 in the ongoing settlement. Further, efforts are going on for improvement in other allowances and facilities resulting into additional benefits to the employees with effect from 1.11.2012. Therefore it is expected that employees will get monetary benefit of Rs. 12000 crores approximately in on go by of arrear and annual benefit of Rs 4500 crores and more with increasing trend in coming years.

(2) Against the above backdrop, we have come to know that IBA/ Government is not ready to approve any of the demands like uniform dearness allowance, pension updation and improvement in family pension before signing the settlement. Further we have come to know that IBA is only ready to extend group mediclaim policies to the past retirees in this settlement. Here also, we have come to know that funding of the insurance premium for retiree is going to be left to the individual banks who will decide as to how much to be charged to the retirees and how much to come from staff welfare funds. for the past retirees in this Therefore if the position taken by IBA on retiree demands is accepted by UFBU for signing the settlement, there will be ZERO ALLOCATION settlement.   With this background, we would like to know whether position of ZERO ALLOCATION is acceptable to the UFBU leadership. If not, what is the strategy of unions to put enough pressure on IBA/ Government through organisational calls like agitational programme. Lighting strike call etc as done in case of employees to improve the offer from 5 percent to 15 percent spending two and half years, we may kindly be informed for which we will be grateful to you. We would also like you to share the information/ documents exchanged on retirees issues between IBA and UFBU and which has convinced UFBU leadership not to press above retiree demands before signing the settlement. We feel that it is absolutely necessary for confidence building in view of charter of demands of unions on retiree issues for this settlement and subsequent assurances given from time to time as well as for long term relationship between retirees and unions in the banking industry which is going to witness movement of more than 2 employees towards retiree camp in next 2/3 years. We feel this issue needs serious introspection al all levels.

(3) we request you to secure allocation of specific funds say Rs. 1000 crores per annum to be exclusively used for improving pension scheme for past retirees and same should be incorporated in the settlement to be signed if it is not possible to work out details for past retirees immediately.

(4) One of the main reasons being given for not considering any improvement for past retirees is shortage of funds and banks’ weak financial position to bear additional cost. While it is open fact that entire financial burden of the benefits to employees will be on profit and loss of banks directly, any benefit considered to past retirees will be out of pension funds and not from profit and loss of banks directly. If you see financial position of pension funds you will find it is healthy and improving year after year. We below give combined balance sheet data of pension funds of public sector banks as on 31.03.2014 on the basis of information collected by us.

Aggregate Pension Fund Corpus as on 31.03.13 
(excluding SBI Group ) 91336.78 crores

Add annual contribution in lieu of PF
From banks during the year 6412.02 crores

Add annual interest income on Investment 7619.47 crores

Less Out go by way of monthly payment to
Pensioners, Family pensioners and
Commutation 6574.91 crores

Net Pension Funds as on 31.03.2014 101919.56 crores

From the above the following may be observed for the year 2013-2014

(a) Corpus has increased from 91336 crores to 101919 crores registering annual growth of more than 12 percent after meeting all pension liability during the year

(b) Interest income of Rs. 7619.47 crores is greater than pension liability Rs. 6574.91 crores during the year leaving surplus of more than Rs 1100 crores plus in the year from interest income alone.

(c) Interest yield on pension fund investment during the year is coming out is 8.34 percent approximately which is less than tax free interest yield of 8.9 percent of PPF accounts. Improvement of 50 basis point in yield on Rs 1 lakh crores plus fund can easily generate additional income of Rs. 500 crores.

(d ) Corpus is basically provisions for pension liability and their ownership belongs to banks. Pensioners have right on committed monthly payments. In view of this Banks are likely to be comfortable and will be left with sizable surplus at the end of the scheme after 30- 40 years or so.

(e) Number of active pensioners will start reducing after toping in 2017 in view of settlement of 2009.

(f) The above increasing trend is not only in 2013-14 but the positive trend has been noticed year after year since its inception without any exception.

(g) Basic Pension of future retirees will increase 62 percent approx. and consequent increase in commutation amount after this settlement. We feel that banks will make additional contribution to the fund to meet this liability and therefore further increase in pension fund corpus.

Our analysis is based on the data available to us. However if you have some different/ more data and analysis we request you to share them with us to understand and appreciate them. We hope you will find logic in our submission and arrange the joint meeting urgently.

With Warm Regards

Yours Sincerely

Sd/-
( S.C.JAIN )
GENERAL SECRETARY

C.C. to All Constituents of UFBU

Facts

Questions That Needs to be Answered Now

Officers Unions and Workmen unions included the demands of the retired bankers in their respective Charter of Demands  (These can be still downloaded from our website :

(a)    Charter of Demands by Workmen Unions - AIBEA, NCBE, BEFI, INBEF, NOBW  ;     

(b)   Charter of Demand by  OFFICERS'  UNIONS - AIBOC, AIBOA, INBOC, NOBO 

In both the Charter of Demands Full Chapters have been included which reflected the aspirations of the retired officers as well as workmen.   Each and every retired banker was sure that as it was in last BPS, the issues relating to retired bankers too will form part of the final BPS.  They waited patiently inspite of their advancing age and a large number of them being infirm on account of old age.   They contributed to the respective associations till the date of retirement. 

(a) If it was intention of the IBA and UFBU to delink the issues of retired bankers, why they did not declare it so in November 2012  itself.   Then at least in last 30 months, retired bankers would have moved different authorities for resolving their issues.

(b) Who among UFBU decided that the issues of retirees will not form part of the final BPS.

(c)  Whether this delink of the negotiations for serving and retired bankers is now on permanent basis or it is only for convenience sake this time?

(d) Should retiring bankers (upto 2017) now stop immediately their subscription as UFBU in future is not likely to take their issues post-retirement.

In  the circulars issued by UFBU from time to time, they have made retired bankers to believe that they are seriously taking up the issues of retired bankers.   I would like to quote here from AIBOC Circular No. 2015/20 dt/ 18.04.2015 (i.e. merely a month back)

“We also expressed our strong views about taking up of the issues of retirees like 100% DA neutralization for retirees prior to 01.11.2001, updation of pension, revision in family pension and extension of another option of pension to resignees and compulsorily retired who have been excluded from the option of pension despite the clear understanding in the last settlement. We also emphasized that group hospitalization insurance policy for retirees should also be demanded from IBA.

With regard to the retirees' issues, it has been decided to take up with IBA:

a) Updation of pension as per regulation 35(1) of the Pension Regulations 1995 since updation of pension is in-built in pension regulation and IBA should give necessary instruction to all the banks to implement the same, 
b) Extending DA neutralization for those pensioners who retired before 01.11.2002 and to improve family pension at par with the government pensioners.

(i)   Till mid April 2015, the leader of AIBOC, Mr Harvinder Singh had been assuring their retired cadre that they are in consultation with IBA on issues of retired bankers;

(ii) Why retired bankers were kept in dark if IBA was NOT ready to discuss the issues of retired bankers?   Is it not betrayal of the faith put in by senior citizens in the organization to which they were members till retirement?

(iii) What has been the major change in past one month, which led to the decision of dumping the retired bankers?   Is it part of vendetta or non payment of subscription by them at this stage?   Mr Singh needs to come clean on this issue

Interestingly, in his reply to AIBRF, Mr CHV has made the following comments :

The demands relating to Retirees were included in the charter of demands not at the behest of anyone but out of our own conviction that these issues have to be taken up for resolution.

The questions now arises why there is a sudden change in conviction of his so called tall leader?  Have some under the table talks happened which led to the change in his such a strong conviction that he included these demands on his own?   By merely saying these words does not absolve him of the 30 months period during which many of the retired bankers must have died and their family waiting for some good news will now get a shock that some of them may even die.

In another para CHV while talking about medical scheme has replied that :

Further, it has been agreed that the same scheme would be made applicable to all the past retirees also. This is by no means an ordinary achievement.

CHV wants to take the credit for the medical scheme but is not ready to take discredit for leaving the retired bankers on their critical issues which have been dumped suddenly.  He wants that UFBU should be entitled to discuss the issues of retired bankers as well as he is trying to meekly slip on issues of family pension, 100% DA neutralization and updation of pension issues.  

Going ahead CHV claims as follows:

Regarding 100% DA for past cases, the IBA and the Government were willing to consider the same. But of late we find that they feel that the matter is subjudice for discussions as some court cases are pending before Supreme Court for which we are not responsible

This is a bizarre argument as no Court will have any objections if the agreement outside the Court is made and based on that court cases are withdrawn as the aggrieved parties are satisfied.

Moreover, others have also quoted instances of the past where Unions have entered into agreements even when the cases were subjudiced.

This argument is nothing but befool people who do not knowledge of law.

CHV is forgetting that recent circular giving benefit to CRS employees for leave encashment has come only and only because many High Courts have given verdict in favour of CRS employees.   Inspite of supporting the rightful cause of bankers, CHV is admitting that they are not responsible and do not support the system of getting benefits through Court judgements.

Now let us read the argument of CHV on the issue of updation of pension :

On the issue of updation of pension, IBA has very serious reservations in view of the cost implications which is very high according to them. So we have asked for the details of number of pensioners, present pension, etc. so that we can work out the cost and fund required for the same and then pursue the matter further

It is again a funny argument. 

Has IBA suddenly realized that it has cost implications and 900 days were not sufficient to get the details of number of pensioners, present pension etc to work out the cost and funds required.

Are all the leaders of 9 top most unions of banking industry, in this age of IT can not ask their back room team to get the data of number of pensioners and present pension in last 900 days.   All this data is available with every bank on computer as now a days almost every bank pays the pension through computerized generated pensions.

Thus, if there are good intensions, then this data can be collected maximum in a week time and analysed.  This is not a rocket science.  Take the help of any good IT banker and he will do it for UFBU in less than a week.

The worst part of the whole letter of CHV comes at the end, where he issues a veiled threat to all retired bankers :

If your letter is to request for further efforts, it would be viewed accordingly. If otherwise, we will take it on our strides.

This is nothing short of an open threat but put in a veiled manner.   Do retired bankers now assume that CHV and other UFBU leaders will work against the interests of the retired bankers and they have to go to Courts to settle the issues.

CHV needs to clarify that now onwards UFBU will not take up any issues of retired bankers.  Even in the past they have never come up with retired bankers in fighting Court cases.

Such type of threat is not only regrettable but SHAMEFUL for all the leaders of UFBU.  They need to issue a public apology for such a threat.