11th Bipartite Settlement - Charter of Demands
(part 1)
by
Mr. Pannvalan
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Please Note:
This is the 1st part of a 3-part series of articles
related to the Charter of Demands for the 11th Bipartite
Settlement by Mr. Pannvalan. Watch out for rest soon !
Click here for part 2
We are all aware that the Department of Financial Services, Ministry of Finance
has set the ball rolling for commencement of 11th BPS and they have
issued a notification to all the banks that are part of the process, advising
them to complete the whole process well before the due date i.e. 1st November,
2017.
So, I have now been tempted to initiate the process, by making these
suggestions.
Before proceeding further, we must remember that the
implementation of new pay scales for central government employees under 7th
CPC is already under way. Their new pay scales are expected to be implemented
with effect from 1st January, 2016.
Their new basic pay is expected to vary from 2.57 to
2.78 times their present pay.
Even at the pre-revised level (i.e. 6th CPC level),
their Basic Pay is higher than the revised Basic Pay of the bank staff, after
10th BPS.
Alright, let us now proceed to arrive at the new Basic Pay to be fixed in 11th
BPS.
Assumptions:
1. The average All India Consumer Price Index for Industrial workers (Base:
1960=100) is expected to be at 6777 for the quarter ending 30th September, 2017
(assuming that the annual inflation will be 6% for the next 2 years).
2. Accordingly, the DA as on 31-10-2017 on the exiting basic pay will be at
58.40%.
3. Unlike last time, it is expected that the full amount of D.A. outstanding as
on 31.10.2017 will be merged, as is being done in the case of Central Government
Employees.
4. So, the whole D.A. at 58.40% will be merged with the existing basic pay, at
the time of next wage revision.
5. Then, the Special Allowance with applicable D.A. thereon (introduced in 10th
BPS) is also to be merged with the existing basic pay.
6. Then, on this amount, an increase of 40% (additional load factor) is given
and fixed as the revised Basic Pay. It is then rounded off to the next higher
100.
Now, let us see how much it translates to, so as to arrive at the revised Basic
Pay for each staff, depending on his cadre/grade. Variation occurs here, only
because of the difference in the rates of Special Allowance fixed for officers
in different grades and scales.
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(Amount in Rupees)
S No
Components of Revised
Basic Pay
Sub-staff to Officer MMGS
III
Officer SMGS IV & SMGS V
Officer TEGS VI & TEGS
VII
1
Present Basic Pay (Notional)
100.00
100.00
100.00
2
Special Allowance as per 10th
BPS (excluding D.A. thereon)
7.75
10.00
11.00
3
Total of (1) and (2) above
107.75
110.00
111.00
4
D.A. as on 31.10.2017 (Projected)
calculated on (3) above
62.93
64.24
64.82
5
Total of (3) and (4) above
170.68
174.24
175.82
6
Revised Basic Pay, after adding 40% additional load on (5)
above
238.95
243.94
246.15
S No
Rank/Grade
Existing Basic Pay
(Rupees)
Revised Basic Pay
(Rupees)
Annual Increment –
New (Rupees)
Starting
Closing
Starting
Closing
1
Sub-staff
9560
18545
24000
44200
900/8 - 1100/8 - 1400/3
2
Clerk
11765
31540
30000
68900
1500/3 – 1900/8 – 2400/8
3
Officer – JMGS I
23700
42020
57000
104100
2400/7 – 2900/2 – 3500/7
4
Officer – MMGS II
31705
45950
73800
111100
2900/2 – 3500/9
5
Officer – MMGS III
42020
51490
97100
123000
3500/5 - 4200/2
6
Officer – SMGS IV
50030
59170
114600
141400
4200/4 - 5000/2
7
Officer – SMGS V
59170
66070
131400
153400
5000/2 – 6000/2
8
Top Executive – TEG VI
68680
76520
159400
185800
6000/2 – 7200/2
9
Top Executive – TEG VII
76520
85000
185800
217000
7200/2 – 8400/2
Note:
1. The new Basic Pay is arrived, by multiplying the present Basic
Pay by the factor as stated above.
2. Then, the new basic pay so arrived at is raised to the next
higher 100 Rupees.
3. This figure will be the new Basic Pay.
4. The Basic Pay mentioned above is
exclusive of the Stagnation
Increments, wherever applicable.
5. Amount of new increment is slightly lower than 4% of the revised
Basic Pay at each stage. 6. It must be noted that even the revised
Basic Pay at this level is far below the proposed Basic Pay of the
Central Government staff, as per 7th CPC.
7. Since the entire D.A. outstanding as on 31.10.2017 is to
be merged with the existing Basic Pay, the new D.A. as on 01.11.2017
will be ‘Nil’.
8. Therefore, we are fully justified in demanding the revised Basic
Pay at this level and we need not feel guilty that our demand may
sound unreasonable, impractical and excessive.
9. Unless we convince ourselves regarding the justification in our
demands, we cannot go the bargaining table with total confidence.
This we must remember.
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Some Important Points 1. Already we are far behind the central government employees in
pay and perks and if we fail to bridge the gap between them and us
at the time of 11th BPS, the gap will keep on widening further and
further, with each wage revision.
2. Already the bank jobs have lost their charm, for the highly
qualified and meritorious candidates and the attrition rate is also
very high as compared to any other sector or industry.
3. Moreover, we must remember that nearly 40% of the existing staff
in the banking industry retire in the normal course (on attaining
the age of superannuation), in the next 4 years. The exodus will be
like a deluge between 2018 and 2020.
4. With the recruitment not taking place at the desired levels, the
staff position will only deteriorate, with the indiscriminate branch
expansion by all banks in general and public sector banks in
particular. With the introduction of new products every now and
then, the situation will turn precarious.
5. Therefore, unless we make the bank job a more lucrative and
interesting profession, banks especially in the public sector cannot
attract good talent and retain it.
6. If the revised basic pay is not at the level projected
hereinabove, it will only reflect upon our weak bargaining power and
the inability of our union leaders to feel the pulse of the staff
especially those in the public sector banks.
7. If we cannot achieve revision as projected
here, we must demand CPC scales or a separate Banking Pay
Commission. For that to happen, disbanding of UFBU is a sine qua
non.
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