What Does Circular Reads

Summary / Remarks by AllBankingSolutions.com

UFBU meeting: Prior to the discussions with the IBA, meeting of the UFBU was held. The meeting observed a minutes' silence to pay homage on the death of Dr Shanti Patel, veteran trade union leader of HMS and Port and Dock Workers. The meeting took stock of the developments since our last meeting held in March, 2014. The meeting welcomed the new Government under the Prime Ministership of Shri Narendra Modi and hoped that the basic problems of the people and workers would be addressed by the new Government. The meeting noted that in addition to the pending demands of UFBU for wage revision, there are other challenges too like the recommendations of P J Nayak Committee, talks of dilution of Government's capital in Banks, merger of Banks, etc. The meeting decided to take a delegation of UFBU to the Finance Minister to apprise him of our issues and demands.

I was expecting that in the meeting prior to discussions with IBA, UFBU leaders would have discussed about the strategies to be adopted to counter IBA and how to cut the delays in the finalisation of BPS.    I am shocked that instead of focusing on the wage hike, UFBU leaders  appear to have focused on other issues which they feel to be much more important than honorable wage hike.   They seems to be more worried about recommendations of P J Nayak Committee than wage hike for bankers.

 I wonder if they had to make a strategy for countering Nayak Committee report in a meeting, what stopped them even during election period and after the declaration of elections results to deliberate on such an issue?

 These appear to be  nothing but diverting tactics or at best to settle their political goals.

 They seem to have lost an opportunity to discuss various strategies so as to get the bankers an honorable wage settlement.

Discussions with IBA:

(1)         In the wage revision talks, the IBA was represented by Mr. T M Bhasin, Chairman of the Negotiating Committee along with other members. UFBU was represented by all the Constituent Unions.

Opening up the discussions, Mr. Bhasin explained the present banking scenario where the profits of the Banks have come down as on 31-3-2014 adding to the constraints of the Banks to take up any huge financial burden in the form of wages. After submissions from UFBU, IBA informed that they are willing to improve their offer from earlier 10% to 11% on the cost of Pay Slip components of the wage bill which would amount to Rs.3,465 crores and which would be exclusive of other costs on retirement benefits, LFC, hospitalization expenses, etc. From UFBU, we expressed our inability to accept this offer as the same was quite inadequate.

 

(2)         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. IBA expressed their total inability to accept the same as it is beyond the paying capacity of the Banks.

IBA offered an improvement of 1% and agreed to improve their offer from 10% to 11%. 

 UFBU told it is inadequate.  On being asked abouts expectations, it asked for 25% increase on Pay  Slip components instead of 11% offered by IBA

 Thus, now bankers who were expecting / demanding 30% to 50% increase OR  parity with central government pay-scales should realize that maximum demand  by UFBU is 25%.  Forget about all Charter of Demands submitted in October 2012, which had all sorts of high dreams.  Now expect anything above 11% but below 25%. on Pay Slip component.