All India Bank of Baroda Officers' Association
INDIAN NATIONAL BANK OFFICERS' CONGRESS
(BANK OFFICERS' WING OF INTUC)
INTUC National Headquarters, "Shramik Kendra", 4, Bhai Veer Singh Marg, New Delhi:110 001.
President: Dr.G.Sanjeeva Reddy General Secretary's Office:
General Secretary: K.K.Nair C/o Bank of Baroda
3, Walchand Hirachand Marg, Ballard Pier,
CHARTER OF DEMANDS
As we embark upon the 7th Salary Revision Settlement, it is important to recall the worst difficult times, caused by the fall of Lehman Brothers in September 2008, the financial sector in general and banking industry in particular was required to undergo. Notwithstanding these turbulent times, Indian banking industry maintained its profitability and solvency. Further it has successfully faced the challenges of financial inclusion, Basel II requirements of higher capital charge for market and operational risk, rolling out of alternate delivery channels and meeting the credit needs of all sectors of the economy including infrastructure, commercial real estate, agriculture, education and housing. A large number of branches were added to the network especially in rural and unbanked areas. All these have been achieved by the industry due to its committed and loyal workforce. The following table amply brings out the growth story of Indian banking industry during 2007-08 to 2011-12.
PERFORMANCE OF NATIONALISED BANKS
Rs. in Crores
Business per employee
(Rs. in lacs)
Profit per employee
(Rs. in lacs)
Wages / Total Expenses
It may be observed from the above table that nationalised banks have grown their business at a compound growth rate of 22% and profit per employee almost doubled in a four year period. The share of establishment expenses including one wage revision in 2010 has in fact come down from 14% to 12% in terms of its share in total expenses. All this has been achieved by adding merely 1.30% additional staff each year, which only shows that the existing employees and officers have risen to the occasion and put the Indian banking industry on a sound and strong footing. Hence they indeed deserve a better salary revision.
While the process of salary revision settlement will take its own course, we wish to emphasise upon a few aspects which need to be given due attention.
We propose to divide our Charter demands into:
Part I : Salary Revision and Allowances
Part II : Perquisites, allowances, welfare facilities viz., leave rules, the encashment, the LFC/LTC, Medical facilities etc.,
Part III : The issues concerning Lady Officers.
Part IV : Superannuation – Pension, Provident Fund, Gratuity Etc., including all the benefits that are to be extended to retirees in the Banking Industry
Part V : Non - monetary issues, comparable position in the Government and its extension etc., issues such as the working hours, 5 days week etc.,
PART - I
SALARY AND ALLOWANCES: BASIC PAY:
The last couple of revisions were an exercise of merging of DA payable upto a certain level of CPI with Basic Pay and thereafter providing certain cushion (load) for the construction of the scales with appropriate Increment pattern.
We need to take a fresh look at the way the scales have to be constructed with a view to have higher start to ensure that the promotion provides reasonable compensation to officers in comparison with award staff scale. The higher start will provide proper differentials on promotion and motivation for promotion. The ideal situation shall be to commence the new scale on promotion above the previous scale.
The span of the scales should be redesigned to ensure that there is continuity in the drawing of the increment without break even if the promotions are not assured to all the Officers. One way of achieving this could be through the integration of the scales and the other one would be to elongate the existing scales with annual increments.
We tentatively suggest the merger of scales to reduce number of scales in tune with the 6th Pay Commission. Further, there should be automatic movement to the pay of immediate next higher scale in the revised two scale format. Accordingly, we suggest that the present 7 scales be reduced to 2 scales as follows:
Scale I – Manager Grade – Integration of the present Scale I to IV
Scale II– Executives Grade – Integration of Scale V, VI & VII
In order to provide higher emoluments on promotion as has been done in the case of the Government servants at every scale/grade, we should introduce Grade Pay, which will be a sort of incentive to the supervisory cadre for taking higher responsibilities in the bank. It may be recollected that, until the introduction of Pillai Committee Recommendations, the banks had a system of providing post allowances in various forms which was taking care of the higher responsibilities and was providing tremendous amount of satisfaction to supervisory cadre. Bank Officers were also compensated earlier in case of transfer from State to State.
The quantum of grade pay could be related to the existing scales and re-fixed at the end of each merged scale. The grade pay should be treated as pay for all purposes.
The existing Dearness Allowance is based on a formula arrived through the merger of index at every revision. Taking into account the unawaited price rise of mounting inflation and the cascading effect that it has brought on the real value of compensation though stated to be 100% need to be relooked as the erosion has hurt everyone. Hence the neutralization should be appropriately increased from the present level. The inflation figures are now arrived at fortnightly basis in order to workout the economic growth of the country. The inflation is on a day to day basis and the periodicity of price fluctuation is on day to day basis and in certain instants it is on hourly basis. There has been no instance of the index coming down in the last several years and it has been on the increase. The inflation should be compensated then and there only. We feel that, once, the figures are available for the purpose of calculation of the monthly index – the Dearness Allowance should be worked out and the compensation passed on to the workforce, on a monthly basis, per point of increase
Thanks to the introduction of technology in banking system the HRMS departments are equipped with wonderful software and centralized payment system, where the compensation is calculated within no time and the same is being passed on to the members of the staff in almost all the banks. Hence, there is no problem in shifting over from the current system of quarterly revision of dearness allowance to the monthly revision. This is one way of reasonably protecting the real wages of the workforce in the industry. The delay in announcing the index figures should be compensated by paying arrears for the month the index figure relates.
Example: - For the month of June the figures are released on 31st July and DA is applicable with effect from 1st August. We suggest that the DA should be applicable with retrospective effect from 1st July to ensure virtual compensation of the inflation.
MERGER OF INDEX FOR THE PURPOSE OF CONSTRUCTION OF SCALES:
We propose that the average consumer price index for industrial workers for the quarter ending 30th September 2012 be taken for the purpose of merger of Dearness Allowance for construction of Scales.
PROFESSIONAL QUALIFICATION PAY:
At present the Professional Qualification Pay is paid only in respect of CAIIB. However, with the passage of time revolutionary changes have taken place in the matter of banking business. The diversification, which we have witnessed, calls for specialization in different academic fields. We therefore are of the opinion that the officers should be adequately compensated for the various professional qualifications they possess during their career in the bank apart from the existing CAIIB qualifications.
We propose that the existing pattern should be revised as under:-
The current system of payment of PQP should be revised as under:
Part I - The PQP should be equal to the amount of the last one increment drawn at the end of the new scale.
Part II - The PQP should be equal to 2 increments in the last stage of the scale (Part I one increment and Part II two increments total – 3 increments)
The additional increments shall be granted for acquiring additional qualifications in Business Management, CISA, Treasury Management, Technology, MCA, LLB, RISK, Audit, Costing, HR etc and be considered for sanction of PQP on reaching maximum in the scale.
FIXED PERSONAL PAY (FPP):
We propose that FPP should be treated on par with PQP in respect of fitment of Basic Pay on promotion and payment of all other allowances. The fixed character now in existence should be done away with. The FPP shall be reworked on promotion. FPP should be defreezed and the last increment in that scale coupled with DA should be paid.
HOUSE RENT ALLOWANCE:
It is incumbent on the part of the banks to provide accommodation to each and every officer wherever he is posted or wherever he desires to have his family accommodated with a view to ensure that the medical and educational facilities are not denied to them.
He should have the option of choosing the drawing of HRA or availing the housing accommodation provided by the Bank. HRA should be paid as per the 6th Pay commission on area wise basis.
The gap between the Housing accommodation provided on lease and the HRA paid to them in lieu of Housing accommodation is so wide that the Officers feel that they are discriminated when they opt for the receipt of HRA in lieu of the leased housing accommodation. Hence the payment of HRA should have correlation to the prevailing leased rentals.
The practice of deducting a portion of the Basic Pay towards the quarters / leased accommodation / furniture provided should be done away with.
HRA ON CAPITAL COST BASIS:
For the purpose of calculation of HRA on capital cost basis the present market value of the property should be reckoned instead of the original cost of construction.
HRA linked to rent receipt / capital cost to be enhanced to 200% of the House Rent Allowance. Self lease should also be considered.
The existing rate of officiating allowance should be revised to 10% of the last stage of the Scale. This allowance should be paid to all the officers who officiate in the next higher grade even for a period of less than 7 days. The officiating allowance should be treated as part of the pay for DA and superannuation purpose.
DIFFERENTIAL ON PROMOTION:
The differential on promotion from one Scale to other in the Officers Cadre should be atleast equivalent to 20% of the Basic Pay and allowances last drawn. In any case the differential should not be lower than the officiating allowance to ensure against reduction of emoluments on promotion. A comprehensive fitment formula should be evolved with the negotiating unions in the industry level.
CITY COMPENSATORY ALLOWANCE:
The existing classification of centre should be reviewed and classified in the following categories:-
I Major Metro Kolkata, Delhi, Mumbai, Chennai,
Bangalore, Hyderabad, Ahmedabad,
II Metros (Area I) All centres with more than 12 lakh
Population and State Capitals
III Centres with population of 1 lakh and above, and all District Head quarters
RATES OF CITY COMPENSATORY ALLOWANCE:
Category I - 20% of Basic Pay
Category II - 15% of Basic Pay
Category III - 10% of Basic Pay
INCENTIVES FOR WORKING IN RURAL CENTERS AND OTHER SENSITIVE AREAS:
It is necessary to provide incentives to all those officers who are posted to serve in the rural areas/most sensitive and difficult areas/ areas with security problems/ areas of weather aberrations in different parts of the country.
We propose that the following incentive may be provided to the officer concerned;
All officers irrespective of the office of posting/ie; branch/administrative office etc., should be paid the closing allowance equal to 15 days of their salary once in 3 months.
HALTING AND TRAVELLING ALLOWANCES
DATE OF SANCTION OF ANNUAL INCREMENTS:
Increments falling due between 1st January to 30th June should be sanctioned on 1st January of the year itself. Increments falling due between 1st July to 31st December should be sanctioned on 1st July of the year itself.
PROTECTION OF ANNUAL INCREMENTS – STAGNATION RELEASED:
An allowance equal to the amount of last drawn increment should be granted every year after reaching the maximum in the scale. The allowance so granted should be treated as Basic Pay for all purposes.
REMOVAL OF EMBARGO ON SANCTION OF STAGNATION INCREMENTS, PQP AND AUTOMATIC MOVEMENT:
The present embargo in regard to the sanction of stagnation increment, automatic movement and PQP in respect of those officers who have refused promotion should be removed.
PERQUISITES, OTHER ALLOWANCES AND WELFARE FACILITIES:
We suggest that there should be parity in payment of Perquisites in all banks. The perquisites and other allowances as well as welfare facilities provided by the banks and settled at the industry level should not be reckoned for the purpose of arriving at the cost of wage revision. It is an essential area of functional expenditure, as in the case of business promotion in other sectors of the economy. We therefore propose that the following benefits should be treated under this heading. The Bank should bear the tax on perquisites.
Post allowance should be reintroduced in order to provide incentive for officers for working in the most competitive sector, to compensate him for taking additional load on account of diversification, technology initiative etc.,
RISK ALLOWANCE :
Risk Allowance should be introduced to provide cover to all lending risks to all sanctioning authorities at all grades as present dynamics of banking involves various types of risks beyond the normal prudence of banking.
Disturbed Area Allowance :
Disturbed Area Allowance of 20% of Basic Pay should be paid to officers working in the branches which comes under disturbed.
The existing Medical benefits should be rationalized as under:
The family of the Officer, which includes the spouse, the parents, the wholly dependent unmarried children including step children and legally adopted children, physically challenged brothers / sisters with 40% or more disability should be extended 100% reimbursement for the purpose of hospitalization as well as domiciliary treatment. This should continue even after retirement.
The definition should be further enlarged to include deserted widowed sisters , daughters and unmarried brothers and sisters without physical disability.
Reimbursement of annual medical aid should be enhanced.
The IBA should also take immediate steps to revise the existing norms in respect of the income criteria in respect of the dependents and the same should be increased suitably. Reimbursement of hospitalization expenses for self and spouse till life time.
Reimbursement of domiciliary treatment and hospitalization – diagnostic investigations etc., should be actual expenditure incurred by delinking from the AIIMS rates. The rates so fixed should be revised annually.
Comprehensive Review to be made to include Hi-tech investigations, surgeries and ailments which are not presently covered under the scheme. Reimbursement towards ailments under Dental, Ophthalmic, Orthopedics, which do not require hospitalization should also be considered under the scheme.
Master Health Check-up for member and his / her spouse once in two years if the member’s age is less than 50 and every year if the member crosses 50 years of age. Addition of disease should also be thought of.
LEAVE FARE CONCESSION:
We need to review the existing scheme in a comprehensive manner.
The entitled mode of travel should be made as air travel to all officers
For Senior Management Cadre it can be executive class.
The encashment of leave fare concession should be the actual expenditure he / she would have incurred had the officer traveled actually by entitled class.
Foreign Travel to be allowed within the entitlement upto the maximum distance permissible in India.
The IBA should take up with the Government and seek exemption from payment of income tax whenever the amount is drawn on the basis of encashment.
The existing special allowances paid to different places should be revisited and revised in a comprehensive manner for example in places like J &K, Sikkim, North Eastern States, Himachal Pradesh, Andaman & Nicobar Islands, Lakshadweep, the red corridor and other similar centers.
The hardship allowance should be redefined and new areas should be added on the basis of the norms already available. It should also be revised wherever it is already being paid.
The local officers should also get these allowances in order to meet the higher cost of living etc., and wherever it is paid, it should be suitably reviewed.
BONUS / EXGRATIA:
The concept of minimum Bonus / exgratia should be reintroduced in a rational manner. Bonus / exgratia is now available to all the Employees in Private Sector Banks, Foreign Banks etc., which has created a serious differential in the emoluments between the workforce in the Public Sector and other sectors. It is also prevalent in Govt. Sector such as Railways/Postal and in Public Sector Undertakings. Hence, an amount equivalent to not less than one month’s gross salary should be paid as Bonus / exgratia to all.
PROBLEMS FACED BY LADY OFFICERS:
We seek appropriate help and assistance from your goodself in the matter of problems faced by Lady Officers accepting challenging postings.
(a) PLACEMENT AND POSTINGS:
One of the major concerns of the lady Officers has been their placements and postings in the banks. The country is yet to develop in the matter of infrastructure, the facilities exclusively to the lady members in different places. Hence, a separate Transfer / placement Policy taking into account the problems of the lady officers should be designed and forwarded to the member banks by IBA. The IT sector is a classical example where a lot of sympathy is shown to the women employees in the matter of posting and placement in order to get best from them. Yet another major consideration is their safety and security at different centers.
The lady Officers need to be extended the benefit of flexi-time and flexi-place concept. They should be given choice of their place at the time of transfer and placement keeping their difficulties in view. The Banks should be advised to keep one exclusive lady Officer in charge of Personnel Administration in all the Banks to attend to their exclusive issues including transfer, placement etc.
The lady Officers whose spouses are working elsewhere should be accommodated at the same place. Similarly, where the wife and husband are employed in the same bank, they should also be accommodated at the same centre.
(b) PROVISION OF CRECHE FACILITY:
The Banks should provide Creche facility for the benefit of children of lady Officers who are required to attend to office and their children need parental attention.
(c) LEAVE FACILITIES:
The existing Maternity Leave of 6 months at a time should also be extended in case of adoption of a child (from present 3 months).
3 months’ additional sick leave be sanctioned after attaining the age 45 years as lady officers are prone to diseases at this age.
Child Care leave as applicable to the Central Government employees should be made available to lady officers.
(d) PATERNITY LEAVE:
The Paternity leave of 30 days should be introduced for officers on 2 occasions.
(e) LFC / HTC:
Spouse employed in the same bank to be permitted to avail LFC separately as per individual eligibility. The lady officers should be permitted to take their dependent parents and parents in law along with them on LFC/LTC. In case of spinsters they should be allowed to accompany a companion on LFC
(f) DEFINITION OF FAMILY:
The parents, father-in-law & mother-in-law, dependent of an officer, sons and daughters, brothers and sisters divorced or deserted, daughters or sisters etc to be treated as members of family for the purpose of LFC/HTC and medical facilities. The income limit stipulated at present needs to be revised upwardly. While doing so the pension earned by the dependant should be excluded.
The employer has an obligation to ensure that the employees having served the institution almost life time are provided adequate superannuation benefits so that they are able to live a life of dignity, honour and above all a comfortable life for having given their blood and sweat to the institution.
The superannuation expenditure cannot be considered as a cost and be made subject matter of negotiations. The compensation paid in the form of superannuation have been described by the highest court of the country as deferred wages paid to all those who served the institution with devotion and conviction for ensuring the prosperity, not only for the institution but the nation as well.
At present, the Banking Industry has provided for the benefit of Gratuity, the Provident Fund or Pension, Leave Encashment at the time of retirement, Medical facilities, and several other welfare facilities.
We strongly feel that there has to be an exclusive and a comprehensive dialogue between the Four Officers’ Organisations and IBA as to the improvements that are required to be made in the present superannuation benefits.
The Banking Industry has introduced the Pension Scheme with effect from 1.1.1986 after protracted discussions and negotiations between the Officers’ Organizations/unions and the Indian Banks’ Association in the middle of the 1990’s. The Pension Scheme has remained as such since the beginning of the scheme in the Banking industry.
The Government servants have seen two pay commissions during this period and if we consider the date of implementation as 1.1.1986 there have been 3 Pay Commission reports providing very comprehensive improvements in the superannuation benefits to the civil servants in the Government.
The Pay Commissions have taken a very pragmatic view in the last 3 Pay Commission Reports and have made very substantial changes in the scheme. There is a need to take the same view as regards the Pensioners in the banking industry as well. As and when there are improvements in the central Govt. Pension scheme, the IBA should invite the negotiating unions and implement the same.
Pension consists of the following parts:-
The Basic Pension is calculated on the basis of the last drawn 10 months’ average pay by the retirees or the last pay drawn whichever is beneficial to the retiree. The formula has remained the same.
The Government employees have been provided the benefit of updating of pension at periodical intervals to provide sufficient cushion against inflation and cost of living.
The another method adopted by the Government is to bring all the pensioners on a uniform scale by merging the Dearness Allowance at the time of revision as recommended by the Pay Commission. The facility of upgradation of pension above the age of 80 years be made available to Bank Officers as prevalent in Government. We suggest as follows:-
Improve the present Basic Pension in respect of all the earlier retirees on the basis of the revision of pay consequent to wage revision implementation every five years at a level to be decided by mutual understanding between the IBA and the Officers’ organizations and unions.
The present rate of Commutation has to be revised to 40% with the existing conversion factor. The full pension be restored after 10 years.
The DA formula and neutralization should be at par with serving officers.
The voluntary retirement provided in the service officers’ rules should be incorporated in the Pension rules and they should also be made eligible for Pension without any discrimination.
Pension scheme should be extended to all those who have been denied earlier on the basis of the misinterpretation of the understandings reached with IBA in particular those who retired under voluntary retirement scheme as per the service regulations / resigned after completing 20 years.
Provision of additional service as per the Pension Regulations to the extent of 5 years should be extended to each and every retirees in the banking industry.
Those having relaxation of age at the time of recruitment on account of disability etc., also to be extended additional period of 5 years to his / her service qualifying for pension.
Also, for Ex-servicemen their past services rendered in the Armed Force should be added to his service for qualifying for pension.
The Family Pension should be on par with the Government and be at 30% of last drawn pay by the officer across the board to every one.
NEW PENSION SCHEME
The employees and officers joined the Banking industry on or after 1.4.2010 should be governed by the original Pension settlement signed on 29th October 1993 and Gazetted in the year 1995.
The Gratuity should be paid at the rate of one month salary and allowances without any ceiling. The gratuity should be completely exempt from payment of income tax.
The Provident Fund should be at the rate of 12% of the total salary and allowances. The Provident Fund should be payable to all employees.
ENCASHMENT OF LEAVE:
Encashment of entire leave at credit should be permitted on retirement, resignation, removal and compulsory retirement.
The existing ceiling on encashment of leave should be enhanced to 360 days at the time of resignation / superannuation. The entire amount should be exempted from income tax as in the case of the Central Government Employees.
MEDICAL BENEFIT SCHEME:
A comprehensive Medical Scheme for pensioners should be framed and introduced in all the banks as available now in the case of executive directors and CMDs of the Banks. The pensioners and their spouse should be given life time hospitalization coverage.
A separate allocation of funds for improvements to welfare of the pensioners should be made every year. The facilities like Holiday Home, clinics, Transit House etc., should be made eligible for pensioners also.
LFC/ HTC FACILITY:
LFC / HTC Facility should be extended to the retirees also at par with serving employees.
GENERAL ENVIRONMENT – AMBIANCE – WORKING HOURS ETC.,
It is the duty all banks to provide an appropriate environment, ambience and above all the HR systems at all branches. The officers’ fraternity should also be provided with all amenities such as supply of refreshment, beverages etc., inside the branch premises in view of the pressure of work, long stay in the office etc.,
The environment should afford an opportunity for full exposure of the creativity and also efficiency of the officers while discharging their duties to the customers as well as the branches.
The banking industry is now equipped with excellent technology advancement, continuous updation of computers, severs etc., there is therefore a need for the Management to adopt appropriate HR initiatives to encourage and motivate the Officers to acquire knowledge in these fields and give their best to the institution.
The Banking Industry is entrusted with the responsibility of enhancing the economic prosperity of the country and also the GDP growth with a view to enhance the standard of living of the common man. The management should ensure that reasonable working hours are fixed rather than pressurizing the officers which may lead to failure and resultant loss of health or upset the officers’ routine. Hence, the working hours for officers should be defined and regulated.
5 DAYS WEEK:
Five Day week is already available in the international banking system. It is also available in our country in RBI, Central and State Governments and in Public Sector Undertakings. Hence, it should be introduced immediately in the entire banking industry.
The working hours should not exceed 36.5 hours in a week. The daily working hours should not be more than 6.5 hours in the normal course.
Any working hours, more than 8 hours a day, should be compensated monetarily to the extent of twice the actual hourly salary in the normal course.
They should also be made eligible to take weekly off to the extent of additional hours of duty rendered by them.
The Officers who are called upon to work on weekly-off days and holidays, should be compensated as above and in addition be permitted a compensatory off on a date convenient to them and such weekly offs be credited to the leave account.
The existing leave rules will have to be comprehensively reviewed and made officers friendly and flexible as available in several other sectors of the economy.
The availing of leave should be made flexible. The officers should be free to avail the leave as and when required. They should also have the benefit of splitting the day into hours and half-day, full-day etc., and longer period as in the case of several other corporate.
TYPES OF LEAVE:
The existing system of maintaining separate leave accounts may be done away with. A common account of leave should be introduced where they should be able to combine all types of leave into total number of days of leave available to them and use the same as per their own requirement.
However for the purpose of better understanding we re-produce the types of leave available and the need to review the same.
INTRODUCTION OF LEAVE BANK:
The leave so calculated should be credited to the leave account of the officer on a consolidated basis. The officer should be eligible to avail the leave on the basis of his requirement. The intermittent holidays and weekly offs should be excluded while sanctioning leave.
The Officer should have the opportunity of encashing the balance available in the consolidated leave account once in a year to the extent of 50% of the leave available in his account at the beginning of the subsequent year. Further, an officer should be permitted to encash the entire leave at his credit at the time of retirement and no ceiling should be imposed for accumulation of leave. The officer may be permitted to transfer leave to another officer in case of need for medical purpose.
Work done on a regular basis should not be outsourced.
DISCIPLINARY RULES PROCEDURE:
The IBA should take up with the Government, the introduction of an exclusive Banking Administrative Tribunal for the banking Industry in order to deal with all the service as well as disciplinary matters in respect of officers.
Discussion of Disciplinary Action procedure
An exclusive exercise should be carried out by IBA for bringing appropriate amendments in the Discipline and Appeal Regulations in due consultation with all the Four Officers’ Organisations.
The 7th Joint Note exercise on Officers wage revision, when resume, will have a historical significance in the sense that the Management and the Officers’ organizations have come a long way in the structured negotiation systems and have matured enough to decide and arrive at a compensation which is generally acceptable to both the parties. In the process we need to have a clear demarcation as regards the issues concerning the Officers’ fraternity and Officers’ organizations should have exclusive right to negotiate on behalf of the officers in the banking industry. Hence, all the issues connected with both the directly recruited officers as well as the Officers promoted from clerical cadre have to be decided between the IBA and the Officers’ organizations. For example, the fitment formula, which is now in a state of confusion, will have to be discussed and settled between the Officers’ organizations and the IBA. Similarly the issues of promotion policy, transfer policy, etc., will have to be settled bilaterally with Officers’ organizations both at the bank and the industry level.
STRUCTURED FORUM AND ACCOUNTABILITY FOR SETTLEMENT:
The Officers’ organizations have been holding discussions and negotiations with the representatives of the Indian Banks’ Association over the last 40 years. The system has got itself streamlined during the last 3 decades and the issues that are related to the compensation and also certain issues of urgent nature are brought to the IBA forum and decided between both the parties. There is a need to structure this conventional arrangement and ensure that all issues affecting the industry and the impact of the directives of the outside agencies on the officers’ fraternity are brought to this structured forum and decided to avoid unnecessary irritations in industrial relations in the banking industry.
The structured forums are already in vogue in all the banks. The issues referred to the banks by the IBA and the Government is discussed at the bank level negotiations by each organization which leads to discrepancies in the implementation of any understandings reached between the organizations and the management.
Certain Industry level issues have to be discussed at IBA / Government Level. Hence, there is a need to have a structured forum at IBA / Government level for periodical discussions. Hence, there is a need to bring all such issues/directives of the IBA and the Government before a structured meeting and settle to avoid any agitation and industrial unrest in the banking industry.
RECRUITMENT / RETIREMENT:
The Banking industry is in doldrums due to inadequacy of the workforce. The lopsided policies and the conventional approach of the Government and the Managements of the banks at the instance of the IBA and the Ministry of Finance have created a big gap in the average age of the various groups of employees in the banks. There were no recruitments virtually for more than 2 decades and as a result, the age difference between the old employee and the new employee is so wide that the average age of the workforce is adversely affected.
A close review of the situation should be considered and necessary steps to be taken for a pragmatic succession plan. The large scale retirement is adversely affecting the workforce since experienced hands are getting retired where as a large chunk of new recruits are forced to take up higher positions and the promotions are getting accelerated in comparison with the earlier situation thereby causing serious problems of seasoning and grooming of higher level officers in the banking industry.
A crash programme should be worked out to tackle this serious issue.
In view of shortage of manpower, the retirement age should be re-fixed. We have the following suggestions:-
Redefine the voluntary retirement and re-fix the minimum eligibility for the purpose.
AGE OF SUPERANNUATION:
The age of superannuation to be raised to 65 years for all officers.
WITHHOLDING OF GRATUITY ON RETIREMENT / RELEASE OF TERMINAL BENEFITS :
The present ad-hoc system of withholding gratuity and harsh decision to set off the gratuity amount towards loss caused etc., should be reviewed keeping in view, the recent judicial pronouncements. In any case, there should not be stoppage or denial of gratuity to the officers.
No disciplinary action should be initiated after superannuation.
All Terminal benefits should be released pending disciplinary proceedings if bank fails to complete the proceedings before superannuation as is being done in the case of CBI cases being pending.
Present Ceiling of 3% of net profits to be increased to 5% of net profit without any ceiling.
LIFE COVER :
Suitable Life Cover should be taken for normal as well as accidental death.
REVIEW OF LOANS AND ADVANCES :In view of the increase in cost of construction of house and flats, we need to have a comprehensive review of House Building Advance to officers by suitably enhancing the limit to Rs.50 lacs at Simple rate of interest without any slab.
Since the Conveyance Loan has not been revised for long, we need to enhance the Car Loan limit to Rs.10 Lacs and Two Wheeler Loan limit to Rs.1 lac at Simple rate of interest without any slab.
The repayment of the above loans should be extended upto 75 years of age.
ROAD TAX ON VEHICLES:
In view of All India transferability of officers, the Road tax on vehicles of different States should be paid by the bank on inter-state transfers.
DATE OF RETIREMENT:
Those who were born on the 1st of a month to be retired on the last day of the same month, and not the previous month.
PROTECTION OF EMOLUMENTS:
The emoluments drawn by an Officer should be protected on his transfer from one place to another.
TRANSPORTATION OF PERSONAL BELONGINGS:
The Banks should take the responsibility for shifting the personal effects of the officers on transfer from one place to another. In the absence of such facility, the Officers should be reimbursed the full expenditure on certificate basis.
INCIDENTAL EXPENDITURE ON TRANSFER:
To meet additional expenditure towards education of children, housing etc., officers should be paid two months’ salary to compensate incidental expenses on transfer. In case of transfer outside the State, 3 months' salary should be paid towards incidental expenses. In case of transfers to far off centers and the places of inclement weather and living conditions, there has to be high compensation as incidental expenditure on transfer.
OTHER ALLOWANCES SUCH AS HILL AND FUEL ETC.
All the allowances other than what have been covered in the earlier chapters should be enhanced appropriately.
AREAS DECLARED AS SEZ/NEZ/EPZ:
The branches coming under the above areas should be treated on par with Metro Centres for all allowances and perquisites.
SPECIAL ALLOWANCE TO NORTH EAST, SIKKIM AND OTHER DISTURBED AREAS:
Special allowance as prevailing in Central Government/RBI for Officers serving in these areas should be extended to Bank Officers.
IMMUNITY FROM TRANSFER POLICY, SPECIAL PRIVILEGES TO OFFICE-BEARERS OF THE ORGANIZATION:
In view of the positive role played by the Officers Organizations there is a need to revise the existing arrangements as regards the special leave to the office-bearers of the organizations. The existing arrangement is grossly inadequate in comparison with the size and the growth of the banking industry and equally the membership of the officers’ organization – the structure of the organization. Appropriate enhancement in the leave facility needs to be considered.
The senior office-bearers of the Officers’ organizations should have the duty off in view of the fact that they will be dealing with all the personnel matters relating to the officers’ fraternity and they may not be able to attend to their deskwork. If the Office Bearers are denied this facility it would cause great harm to the officers’ organizations in the banks.
The Office-bearers of Associations should be extended immunity from transfer/placement. The Central /State level office-bearers should be given duty-off on par with workmen organizations. The facility is due for review.
THE LOAD FACTOR:
The negotiations on cost of salary revision should be confined only for the purpose of deciding the load factor in respect of Basic Pay and Dearness Allowance.
RIGHT TO SUBMIT SUPPLEMENTARY CHARTER:
We reserve the right to include, amend or alter the demands, as made out in the Charter during the course of bilateral discussions.
All anomalies arising out of Salary Revision should be resolved irrespective of the cost factor involved.
DATE OF EFFECT:
The date of effect for implementation of the settlement on the basis of the charter of demands should be from 1.11.2012.
MUMBAI K. K. NAIR
30.10.2012 GENERAL SECRETARY
Indian Banks Association,
All India Bank of Baroda Officers' Association