11th Bipartite Settlement - Charter of Demands
(part 3)
by
Mr. Pannvalan
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Please Note: This is the final part of a 3-part series of articles
related to the Charter of Demands for the 11th Bipartite
Settlement by Mr. Pannvalan.
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.
In this final part of the series, we will provide information on our take on
reclassification of places / centres based on population figures, and the
applicable HRA, CCA & Hill Allowance. Also, we will give some critical
observations about the past Wage Revisions. Finally, we will also provide a
comparison of the wages between Banks & LIC.
New Classification Proposed for Population Group
It is
proposed to reclassify the places/centres,
according to the latestpopulation figures of such places/centres. It is as follows.
S No
Population of the Place/Centre
Classification
1
Up
to 50,000
Rural
2
50,001 to 200,000
Semi-Urban
3
200,001 to 20,00,000
Urban
4
20,00,001 to 50,00,000
Metropolitan
5
Above 50 Lakhs
Megalopolis
H.R.A. Payable on the basis of Population Groups
S No
Population of the Place/Centre
H.R.A. Payable (as % of Basic Pay plus other allowances ranking
for P.F.)
1
Up
to 50,000
7.00
2
50,001 to 200,000
8.00
3
200,001 to 20,00,000
9.00
4
20,00,001 to 50,00,000
10.00
5
Above 50 Lakhs
12.00
Note: There is no ceiling
on the HRA Amount payable.
C.C.A. Payable on the basis of Population Groups
S No
Population of the Place/Centre
C.C.A. Payable (as % of Basic Pay plus other allowances ranking
for P.F.)
1
500,001 to 15,00,000
5.00
2
15,00,001 to 50,00,000
6.00
3
Above 50 Lakhs
8.00
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Note:
There is no ceiling on the CCA Amount
payable.
Hill Allowance Payable on the basis of the Altitude of the Place
S No
Altitude of the Place/Centre (in Metres)
Hill Allowance Payable (as % of Basic Pay plus other allowances
ranking for P.F.)
1
1500
to 3000
4.00
2
3001
to 6000
6.00
3
Above 6000
10.00
Note:
There is no ceiling on the Hill Allowance
payable.
Officers Wage Agreements of the Past – Critical
Observations
Bipartite Settlement
Number
Date of the Settlement
Date of Effect
Merger of
D. A. at points
Revised Basic Pay
Ratio of Basic Pay at the lowest to the highest
Significant Achievements
Major Criticisms/ Areas of
Failure
Minimum
(Rs.)
Maximum
(Rs.)
1
19-10-1966
01-01-1966
100
N. A.
N. A.
N.
A.
First ever bipartite settlement in the banking industry
for wages and other issues of award staff was reached.
This settlement was made, after Sastry Award (1953) and Kantilal Desai
Award (1962) constituted under Industrial Disputes Act, 1947 determined
the bank staff pay scales.
Since it was only a beginning, many other important issues were not
touched.
The scheme of Dearness Allowance as provided in the Desai Award was
continued. Thus, while fixing the new pay scale, merger of existing
D.A. - in full or in part - was not done.
Officers’ wages were fixed after award staff wages were decided. (At
that time, there did not exist a separate Union/ Association for
officers.
2
12-10-1970
01-01-1970
130
375
1550
1 :
4.13
Major achievements of this settlement were abolition of classification
of areas for the purpose of pay scales, DA, reduction in span of scales
of pay from 25 to 20 years. The settlement was signed with single
majority union in the banking industry at that time viz. AIBEA.
D.A. neutralization was poor.
D.A. was merged at 100 points of AICPI, when the actual AICPI as on the
date of merger was 177.
For officers, D.A. was revised at half-yearly intervals, whereas it was
quarterly for award staff.
3
01-08-1979
(PCR)
01-09-1978
200
700
3500
1 :
5
Under this settlement, State Bank of India also became a party to the
Industry level Bipartite Settlement along with other 'A' Class banks.
Settlement on 'Other Issues' was signed on 31.10.1979.
For the first time, bank officers were equated with Class ‘A’ officers
of the central government, who were
getting lower salaries than bank officers until 31-07-1979. Award staff however got a better package.
This settlement was made after a gap of about 10 years. Thus, we lost one more wage revision due in
the interregnum.
D.A. was merged at 200 points of AICPI, when the actual AICPI as on the
date of merger was 336.
After the implementation of Pillai Committee Recommendations in 1979 in
banks, central government officers started gaining upper hand.
Bipartite Settlement
Number
Date of the Settlement
Date of Effect
Merger of
D. A. at points
Revised Basic Pay
Ratio of Basic Pay at the
lowest to the highest
Significant Achievements
Major Criticisms/ Areas of
Failure
Minimum
(Rs.)
Maximum
(Rs.)
4
17-09-1984
01-07-1983
332
1175
4600
1 :
3.91
Provisions for improvements in working in banks' offices/branches were
highlighted.
Settlement on Residual Issues was signed on 05.01.1987.
Settlement in respect of 4 'B' Class banks was signed on 28.02.1985.
Disparities in D.A. slabs continued. Officers were again discriminated
against.
D.A. was merged at 332 points of AICPI, when the actual AICPI as on the
date of merger was 541.
5
10-04-1989
01-11-1987
600
2100
7000
1 :
3.33
Supplementary settlement was signed on 29.06.1990.
Provided improvement in pay scales, DA, HRA etc.
Settlement on Residual Issues was reached on 16.07.1991.
Soon after signing the 5th Bipartite Settlement, AIBEA sought for
further improvement on the settled terms on the grounds of relativity.
Further improvements were made in existing scales and allowances.
But, this is the point where bank staff as a whole started sliding down.
Periodicity/Frequency of wage was
formally increased to 5 years. From this revision
onwards, the gap between bank officers and Class I officers of central
government started widening.
D.A. was merged at 600 points of AICPI, when the actual AICPI as on the
date of merger was 755.
Bipartite Settlement
Number
Date of the Settlement
Date of Effect
Merger of
D. A. at points
Revised Basic Pay
Ratio of Basic Pay at the
lowest to the highest
Significant Achievements
Major Criticisms/ Areas of
Failure
Minimum
(Rs.)
Maximum
(Rs.)
6
14-02-1995
01-11-1992
1148
4250
14000
1 :
3.29
Settlement on Computerisation and Mechanisation was signed on
29.10.1993.
Settlement on Pension to Bank Employees was signed on 29.10.1993.
This was the first settlement, after pension facility was introduced in
banks.
Appropriate clauses were included in furtherance of customer service,
efficiency, discipline and working in banks' branches besides further
revision in the service conditions.
Settlement on residual issues was signed on 28.11.1997.
“Income Recognition & Asset Classification” norms introduced for the
first time affected banks’ profits.
D.A. was merged at 1148 points of AICPI, when the actual AICPI as on the
date of merger was 1202.
7
01-01-2000
01-11-1997
1684
7100
21300
1 :
3
For the first time, 100% D.A. neutralization was achieved effective from
01-02-1995. This is a remarkable improvement.
Settlement on Disciplinary Action Procedure for workmen was signed on
10/04/2002
After 5th CPC, scales were greatly tilted in favour of
central government employees.
Rise in salaries & allowances did not reflect the market trends. After
this settlement, bank staff have been consistently and repeatedly denied fair wages in
tune with market conditions.
D.A. was merged at 1684 points of AICPI, when the actual AICPI as on the
date of merger was 1804.
Bipartite Settlement
Num,ber
Date of the Settlement
Date of Effect
Merger of
D. A. at points
Revised Basic Pay
Ratio of Basic Pay at the
lowest to the highest
Significant Achievements
Major Criticisms/ Areas of
Failure
Minimum
(Rs.)
Maximum
(Rs.)
8
01-06-2005
01-11-2002
2288
10000
32600
1 :
3.26
For the first time, both award staff and officers presented a joint
charter of demands.
Important provisions relating to deployment of staff, use of IT,
rationalisation of special pay post etc. were covered in this
settlement.
Disparities caused by 5th CPC were not removed and bank staff
were discriminated against by the government.
D.A. was merged at 2288 points of AICPI, when the actual AICPI as on the
date of merger was 2410.
9
27-04-2010
01-11-2007
2836
14500
52000
1 :
3.59
Staff were made to become so desperate that they were forced to accept
whatever that was offered ultimately. Second option for pension to P.F.
optees (who did not opt for pension earlier) was achieved.
To achieve 2nd option for pension, wage revision was greatly
compromised.
D.A. was merged at 2836 points of AICPI, when the actual AICPI as on the
date of merger was 3058.
Viewed against 6th Pay Commission recommendations, this is a
terribly disappointing settlement.
Pensioners were miserably let down.
On the whole, this settlement created a serious heart-burn in everyone.
10
25-05-2015
01-11-2012
4440
23700
85000
1 :
3.59
This settlement turned out to be a source of great disappointment to
everyone, except the UFBU team.
By introducing a ‘Special Allowance’ of 7.75% to 11%, out of 15% hike
achieved, a meager hike of only 2% in Basic Pay (after merger of old
D.A.) was achieved. This special allowance will rank only for D.A. and
not for any other allowance or superannuation benefits. This has never
happened in any industry, so far.
Even after this revision, we are far below 6th CPC scales. 7th
CPC has recently submitted their report and it is under the active
consideration of the government.
D.A. was merged at 4440 points of AICPI, when the actual AICPI as on the
date of merger was 4876.
Bank staff have become one of the worst paid class in the organized
sector now.
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Comparison of latest wage settlement for
officers in Banks and LIC of India
S No
Comparative parameters
Banks
LIC of India
Difference
1
Notional Basic Pay as on 31-07-2012
100
100
2
D.A. merged with Basic Pay this time (AICPI)
4440
4708
3
D.A. merged with Basic Pay last time (AICPI)
2836
2944
4
Difference between (2) and (3)
1604
1764
5
% of D.A. merged with D.A. this time
60.15
66.15
6
Revised Basic Pay after D.A. merger
160.15
166.15
7
Additional load made this time in Basic Pay
2%
14.49%
12.49%
8
Revised Basic Pay after additional load
163.45
190.23
16.38%
9
Minimum Basic Pay - Lowest Grade (Last time)
14,500
17,240
18.90%
10
Maximum Basic Pay - Highest Grade (Last time)
52,000
59,850
15.10%
11
Minimum Basic Pay - Lowest Grade (This time)
23,700
32,795
38.38%
12
Maximum Basic Pay - Highest Grade (This time)
85,000
1,24,295
46.23%
13
Gross Monthly Salary in Metros - Lowest
38,703
48,800
26.09%
14
Gross Monthly Salary in Metros - Highest
1,40,421
1,97,342
40.54%
15
Revised H.R.A.
7%/8%/9%
7%/8%/10%
16
Revised C.C.A.
3%/4%
2%/2.5%/3%
17
Medical Aid (Rs.)
8,000/9,050
13,300/19,940
Note
Government of India has notified the wage revision in LIC of India on
14-01-2016.
In LIC of India, '5 day week' has been agreed upon.
Disclaimer: [The articles written by author contains only the academic view of the writer and purely for discussions and updation of the knowledge of the bankers. The views expressed in the articles may not at all be subscribed by the organisation where the author is working and / or AllBankingSolutions.com]
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