11th BPS Wage Settlement : Expected New Basic Pay for clerk Rs 26550/- see details

We are all aware that the Department of Financial Services, Ministry of Finance has set the ball rolling for commencement of 11th BPS Wage Settlement 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.

Before going on further, we must keep in mind 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.

Let us now continue 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 6500 around  for the quarter ending 30th September, 2017 (assuming that the annualinflationwill be 6% for the next 2 years).
2. Accordingly, the DA as on 31-10-2017 on the exiting basic pay will be at 50%.
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 100% 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% (additionalload factor) is given and fixed as the revised Basic Pay. It is then rounded off to the next higher 100.e
7. We want  main increase in basic pay 
8. We want old medical facilities instead of mediclaim facilities

Before going to negotiation we request to retired leader remember above all point.

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.

(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 10thBPS (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	50	50	50
5	Total of (3) and (4) above	161.25	165	166.50
6	Revised Basic Pay, after adding 40% additional loadon (5) above	225.75	231	233.10

Sr.No	Rank/Grade	Existing Basic Pay (Rupees)		Revised Basic Pay (Rupees)		Annual Increment –New (Rupees)
		Starting	Closing	Starting	Closing
1	Sub-staff	9560	18545	21582	41865	900/8  – 1100/8 – 1400/3
2	Clerk	11765	31540	26554	71186	1500/3 – 1900/8 – 2400/8
3	Officer – JMGS I	23700	42020	53491	94840	2400/7 – 2900/2 – 3500/7
4	Officer – MMGS II	31705	45950	71659	103710	2900/2 – 3500/9
5	Officer – MMGS III	42020	51490	94840	116214	3500/5 – 4200/2
6	Officer – SMGS IV	50030	59170	111550	136682	4200/4 – 5000/2
7	Officer – SMGS V	59170	66070	136682	152621	5000/2 – 6000/2
8	Top Executive – TEG VI	68680	76520	160093	178368	6000/2 – 7200/2
9	Top Executive – TEG VII	76520	85000	178368	198135	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.

Some Points to Remember 
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.

1st Wage Revision meeting of 11th BP was held on 2-05-2017 Tuesday See details outcome.

1st Wage Revision meeting of 11th BP was held on 2-05-2017 T- Tuesday See details outcome.

  UFBU CIRCULAR  

IBA COMMENCES WAGE REVISION NEGOTIATIONS

All our unions and members are aware that our present wage revision settlement for employees and officers will come to an end by October, 2017 and hence the next wage accord has to commence from 1st November, 2017.  Since negotiations are taking unduly long time to arrive at the final settlement, we have been desiring timely settlement. Government had also advised the IBA and Banks to complete the negotiations early and commence the settlement from the due date i.e. 1-11-2017.

Hence we have been asking the IBA to commence the negotiations early and this was one of the prominent demands in our All India strike on 28th February, 2017.  Earlier to that we had submitted the broad summary of our common demands for employees and officers respectively.

In this background, Indian Banks Association had invited UFBU for commencing the negotiations and accordingly the meeting was held yesterday i.e. on 2-5-2017 at IBA Office in Mumbai.  IBA was represented by its Chairman Shri Rajeev Rishi, CMD, Central Bank of India, Mrs. Arundhathi Bhattacharya, Chairman, SBI, Shri Arun Tewari, CMD,  Union Bank of India,  Shri Ashwinikumar, CMD, Dena Bank, Shri R K Takkar,  MD, UCO Bank, Mrs.  Usha Subramanian,  MD, PNB, Shri Shyam Srinivasan, MD, Federal Bank, Shri,  P S Jayakumar, MD, Bank of Baroda and Shri Rakesh Sharma, MD, Canara Bank.

UFBU was represented by leaders of our 9 constituent unions in the discussion.

In his opening remarks, Shri Rajeev Rishi observed that bilateralism has been the hallmark in the banking industry for the past 50 years when successive bipartite settlements have been signed.  He particularly referred to the 9th BPS and 10th BPS under which benefits like one more option for pension,  Full Day Off on 2 Saturdays in a month, medical insurance scheme for employees and retirees, etc. were achieved due to the collective efforts of the management and the unions.  He urged upon the unions to keep the present health of the Banks and their constraints in mind while negotiating the demands and help to conclude the Settlement early, preferably before Diwali festival this year.

He informed that since some of the Banks have given mandate to IBA for negotiations would be confined only upto Scale III Officers.

He further informed that IBA has set up a Negotiating Committee as under:

• Shri  R K Takkar, MD, UCO Bank – Chairman
• Shri. Rakesh Sharma, MD, Canara Bank,
• Smt. Usha Subramanian, MD, PNB
• Shri P S Jayakumar, MD, Bank of Baroda
• Shri Prashant Kumar, Dy.MD, SBI
• Shri Shyam Srinivasan, MD, Federal Bank

Responding to the observations of the IBA, from our side, we thanked the IBA for initiating the process of negotiations and assured that we shall extend our best possible co-operation to conclude the settlement as early as possible and suggested holding of regular and continuous meetings for this purpose.  We also reiterated our commitment to bipartism and settling the demands amicably through mutual discussions. We also conveyed to the IBA that given the increasing stress and heavy workload under which employees and officers are working in the Banks, they deserve satisfactory wage revision and improvement in their service conditions.  We also informed the IBA that our Unions are equally conscious and concerned about the present challenges faced by the Banks and would be willing to work with the managements to overcome these challenges successfully.  

We strongly conveyed to the IBA that the negotiations in respect of officers should not be restricted upto Scale III and must cover upto Scale VII as hitherto.

In the conclusion, it was decided that the Negotiating Committee will shortly fix up the date for starting the negotiations when formal talks on our demands will commence.  We shall keep our unions and members informed of further developments.

                                                                                                                          Ref:2017/58                                                            Date: 30.04.2017

    The Office Bearers/ Central Committee Members/ State Body Chiefs

   A.I.B.R.F.

Dear Comrades,

                        Re: Office Bearers’ Meeting held at Indore

                               On 29th & 30th April, 2017

                        Re: Proceedings of the Meeting

Office Bearers’ Meeting of AIBRF was held at Indore on 29th & 30th April,2017 to discuss and transact business as per the agenda circulated.

2. Detailed and comprehensive deliberations took place in the meeting on  items of agenda where all office bearers and special invitees present participated in the discussion and placed their views/ suggestions.

3. Based on the various suggestions received from the participants and proposals placed in the General Secretary Report the following decisions were taken unanimously.

1. The committee took stock of various action programmes conducted during last 2 and half years under the banner of  AIBRF in support of pending issues of bank retirees which included submission of memorandum to 10 Central Ministers , about 100 Members of Parliament, On-line submission of representations to PMO by more than 35000 bank retirees, Dharna Programmes at more than 72 centres and most important Second Centralised Dharna Programme at Jantar Mantar, New Delhi on 23rd March, 2017 where more than 5000 retirees participated from all parts of the country and which was addressed by 11 Members of Parliament and principal office bearers of 3 central trade unions.
2. The Committee was of unanimous view that action programmes conducted by AIBRF in last 2and half have been historical and unparalleled in the history of retiree movement and also felt that these action programmes have been able to achieve the object of drawing attention of the authorities and creating enough pressure on pending issues of bank retirees for solution. Committee passed unanimous resolution conveying its deep appreciation and thanks to its membership, activists, central committee members , state committees especially to Delhi State Committee for tremendous response to the organisation call without which conduct of Dharna programme would not have been possible.
3. In view of the above the committee took decision to continue action programmes and intensify them when needed in coming months. Central office was asked to prepare detailed schedule for it.

 

4. During the Months of May & June 2017, Office Bearers will carry out follow programme at various levels in meeting to Secretary, DFS , Central Ministers , Members of Parliament and other authorities  who have promised to help AIBRF in resolving the issues so the favourable atmosphere created due to Dharna Programme of Delhi can be further consolidated and strengthen.
5. Further the committee took unanimous decision to ask its bank wise affiliates to meet all directors of respective banks and submit representation to them for giving suitable Mandate to IBA for holding discussion with the representatives of AIBRF on pending issues and issues of next wage settlement. This action programme will be carried out during the month of May,2017 and AIBRF representatives expect to meet and submit memorandum to about 500 directors of different banks. Detailed guidelines for submitting the memorandum will be issued for implementation by Central Office shortly. This is important action programme in view of commencement of negotiation for next wage settlement shortly.
6. The committee did comprehensive review of recent  developments in the matter of Supreme Court orders on the issue of 100 per cent DA. The committee was of the view that these orders of Supreme Court are of significant importance for retiree community in banking industry as it affects large number of our membership and retiree fraternity. The committee  congratulated leadership of United Bank of India Retiree Employees Association for successful handling of legal case on 100 per cent DA at single bench as well as double bench level in Kolkata High Court successfully. The committee also appreciated efforts of our comrades from Tamilnadu for their efforts in legal battle though final success in the Supreme Court could not be achieved.
7. The committee after detailed analysis was of the view that IBA should have settled 100 per cent DA case through negotiation after the case was disposed of in the Supreme Court as per the commitment given in the Record Note dated 25.05.2015. But unfortunately, IBA has taken stand as communicated to AIBRF that retiree issues cannot be considered and settled in the absence of Mandate from member banks. Further Unions who were signatories of the Record Note are maintaining silence on the issue  and   making no efforts to resolve the issue through negotiation despite follow up with them by AIBRF through various communications.

8. In view of the above the committee unanimously decided that due to the stand taken by IBA and silence of unions in the matter, to protect interest of large number of membership and to stand in full support of its affiliate in important legal battle, AIBRF will take immediate steps to move suitable application in the Supreme Court to become party in United

Bank Case in 100 per cent DA. Central Office has been asked to initiate necessary actions in this regard including engaging senior counsel for effective arguments in the Court on next hearing. AIBRF will also provide necessary logistic and financial support to United Bank organisation for effective handling the case. At the same time the committee clarified that AIBRF shall continue to follow its core policy of pursuing its issue through discussions, negotiations, coordination and action programmes. Legal option will be only last option for AIBRF.

9. The committee also took stock of progress in the  case filed in RLC by AIBRF and approved the various issues raised therein.  It hoped that that the case will be finalised on the next date of hearing. The committee also decided to take final decision on filing legal case on Updation of pension after sometime.
10. The committee asked the affiliates to identify individual cases of compulsorily retired employees for pension option and take up with banks in view of 100 per cent decisions of courts in favour of retirees.
11. The committee did comprehensive review of AIBRF organisational relationship with unions. It was of unanimous view that AIBRF would continue to follow its existing policy of maintaining cordial relationship with service unions, their leaders and membership  and will approach them for support for retirees as and when needed. But at the same time AIBRF would continue to function as an independent organisation and decide its future strategy in the best interest of its membership and retiree community without pressure and fear.
12. The committee welcome the new efforts being made for coordination among apex level of retiree organisations. AIBRF would take further steps after getting response from CBPRO on some points under their consideration.
13. The committee did review the position of organisational discipline   and functioning of state bodies. The committee expressed full satisfaction on the valuable contribution being by state bodies in implementation of AIBRF programmes. However, in order to improve functioning further, by-laws and rules to be prepared by central office and place them in next central committee for approval. The committee requested the sub-committee to expedite its report on individual cases referred to it for final disposal.

14. The committee noted that two new state bodies of AIBRF ( Andhra Pradesh State Committees and North West State bodies  covering 4 states) have been formed during the month of April,2017.
15. The committee discussed in detail the new development of merger of 5 associate banks with SBI with effect from 01.04.2017 and took decision to come out with suitable organisational structure of our affiliates in associate banks to take up the issues of retirees in effective manner with SBI    Management in new environment.

   

16. The committee noted financial statements presented and approved expenditure for Dharna programme as presented by Delhi State Committee. In view of considerable funds required to handle legal case and action programmes, all affiliates were requested to clear their dues for Struggle Fund and annual subscription for 2107 without delay.