UFBU Letter to Ministry of Finance on Wage Revision

UFBU/GOVT/2013/22

Date : 22.10.2013

The Secretary,

Department of Financial Services

(Banking Division),Ministry of Finance,

Government of India,NEW DELHI.

Dear Sir,

WAGE REVISION FOR BANK EMPLOYEES

With reference to the above, we bring to your kind notice that the wages of workmen and officer employees of all banks at Industry level are due for revision effective from 1^stNovember 2012 and all the unions/associations operating in the banking industry have submitted the Common Charter of Demands for Tenth Bipartite Wage Settlement to Indian Banks’ Association during October 2012.

In this regard, we have to inform that despite expressing our concern to the Indian Banks’ Association for not holding the bipartite meetings at regular intervals and undue delay in the process of negotiations, no significant progress is made towards revision of wages in the banking industry even though more than a year has lapsed since submission of our charter of demands. 

The employees are also becoming restive due to inordinate and undue delay in the process of negotiations.  Hence, the constituent unions of United Forum of Bank Unions (UFBU) had called for demonstrations by bank employees in all State Capitals and other major centres on 22^ndOctober 2013 demanding expeditious wage settlement.   Accordingly, demonstrations were held today in all State Capitals and other major centres with full participation of bank employees expressing their dissatisfaction over the sluggish movement in the process of wage revision negotiations. 

          In the circumstances, considering the legitimate and just demand of bank employees, we seek your kind intervention in the process of wage negotiations and request you to ensure speedy process of wage revision for early conclusion.

          Thanking You,

                                                                                      Yours faithfully,

M V Murali

CONVENER

UFBU Press Statement dtd 15.10.2013

·         UFBU opposes attempts to hand over Banks to Foreign Banks

Our attention has been drawn to the statement made by Shri Raghuram Rajan, Governor, Reserve Bank of India in Washington two days ago that RBI will soon announce certain reform measures in the banking sector that will allow foreign banks to enter India in a big way and would even enable them to take over our Banks.  He has further stated that he we will allow them near ‘national treatment’.  

On behalf of one million bank employees under the banner of United Forum of Bank unions and representing the 9 banking sector trade unions of employees and officers, we strongly oppose any such move on the part of the Reserve Bank of India.  In India, our Banks are dealing with the huge, hard-earned savings of the common people and it is most undesirable to allow Foreign Banks to take over our domestic Banks.  The obvious objective of the foreign banks coming to India is to earn profit and hence the precious savings of our people would be diverted to risk-prone business and speculative business.  While the profit earned by them would be expatriated, any possible loss would be dumped on our shoulders to bear it.  Moreover, there are frequent reports of foreign banks deviating from the laid down regulations of our country.  In the past, some of these foreign banks were also involved in scams and strictures were passed by the JPC report, etc.  Further, these foreign banks have never been guided by priority sector lending and social lending nor do they have a single branch in any rural area in our country.

Our public sector banks are the mainstay and backbone of our economy and every effort should be taken to strengthen our Banks rather than hand them over to these foreign Banks.

We strongly denounce the proposals of the RBI Governor and if any steps are taken in this regard, bank employees would be constrained to express their protest through campaigns and agitational actions including strikes.    

UFBU Letter to IBA........

ADOPTION OF UNIFORM HOLIDAYS CALENDAR – GRID BASED CHEQUE TRUNCATION SYSTEM

We have to inform that the constituent unions / Associations of United Forum of Bank Unions are repeatedly drawing the attention of Government, Reserve Bank of India and Indian Bank’s Association on the issuance of unilateral instructions to the banks curtailing the festival holidays granted through notification by the State Governments under N.I. Act, 1881 in the guise of grid based cheque truncation system.

02. India, being a culturally diverse and fervent society, celebrates various religious festivals.  States and regions have local festivals depending on prevalent religions and linguistic demographics, the annual holidays for banks are widely observed by choice on different days in different states according to local custom.  The curtailment of festival holidays as above frustrates the employees concerned as they were not able to perform their religious rituals / puja as per their community systems.

03. The object of introduction of cheque truncation system is mainly to contain the delay and also to wean the payments system from paper but certainly not for curtailing the weekly-offs and festival holidays of the employees. We do agree that the services of the employees can be requisitioned on a holiday in exigency of services on special and unforeseen circumstances, but not on regular basis.  Further, we do not find any reason in forcing eh employees to work even on public holidays despite the availability of “Blockage” and “Holiday Marking” functions in the Grid-based Cheque Truncation System to handle different State Holidays for a value-date.

04. The Reserve Bank of India (RBI) has recently issued directions that the CTS Centres in New Delhi, Chennai and Mumbai will adopt RTGS holidays as uniform holidays for the respective grid.  This needs to be desisted as the list of RTGS holidays does not cover even a single festival of the majority community of the Country.  

05. Further, the RBI has directed that CTS operations will be closed on such days when all the participating states in the grid are observing holidays, even though RTGS is working on such days.  It is unfortunate that there is no festival on chich the entire country uniformly observes holiday more particularly in case of Hindu festivals.  Herein, it will not be out of place to mention that majority of the States in the country has declared holidays on varied days for Pooja and Diwali Festivals and majority of the employees are denied of their festival holidays due to non-declaration of holiday on the material day in one or a few of the states in a particular grid hurting the religious sentiments of majority of employees.  Hence, we also request you to take up with the appropriate authority for amendment of instructions with regard to closure of CTS operations on such days even when one of the participating states in the grid is observing holiday or else exempt that particular state from participation, even though RTGS is working on such days.

06. We are not against the initiatives for effective and quicker customer service through modification of banking practice in tune with the changing times but certainly nota t the cost of statutory rights of the employees.  The arbitrary withdrawal of the entitled public holidays of bank employees without giving any cognizance to the religious sentiments of the employees would demoralize the workforce.  It also defies the purpose of declaring holiday under N.I. Act making it a mockery.

07. In the circumstances, we once again urge upon you to arrange for immediate amendment of the above instructions.  We also request you to arrange for discussions with us to consider alternative proposals to arrive at an amicable solution and ensure a conducive and relaxed working environment to the employees working in CTS centres.  Pending review of the system, we request you to issue suitable instructions so as to ensure that the employees can avail the ensuing Dusserah and Diwali Holidays, wherever declared under N.I. Act.

Please acknowledge receipt of this communication and advise us the developments in this regard.

With best regards,

Yours sincerely,

M.V.MURALI

CONVENOR

UFBU extends support and solidarity to AIBEA and BEFI for All India Strike

AIBEA-BEFI’S JOINT CALL FOR ALL INDIA BANK STRIKE

ON 25^TH SEPTEMBER 2013

The ill-fated moves of the Government in the name of financial reforms which are detrimental to the interests of the banking industry and the Nation on the whole are being opposed by the Unions/Associations of workmen and officers in the banking industry.  Despite our stiff opposition, the policymakers are still bent upon implementation of the reform measures even without giving any cognizance to the failure of banking system that resulted in financial disaster of economic recession in USA and many European Countries.

        The reform measures proposed by the Government and frequently being reported in the media include Merger & Acquisition of Banks and granting of banking licenses to Corporates and Business Houses.  In the circumstances, it has been decided by All India Bank Employees’ Association and Bank Employees Federation of India, displaying their protest against the moves of the Government towards implementation of financial reforms, to call for All India Bank Strike on the 25^th September 2013 on the following issues and demands:

·         STOP BANKING SECTOR REFORMS

·         STOP MERGER AND CONSOLIDATION OF BANKS

·         DO NOT CLOSE DOWN ASSOCIATE BANKS

·         DE-LINK ASSOCIATE BANKS AND MAKE THEM INDEPENDENT BANKS

·         STOP BANKING LICENCES TO CORPORATES AND BUSINESS HOUSES

The UFBU decided to extend fraternal support to the strike action of AIBEA & BEFI in their struggle against anti-National reform measures being implemented by the Government.

        All our members are requested to extend fraternal support to the ‘ All India Bank Strike ’ on 25^th September 2013 and express their show of solidarity by participating in the demonstration programmes / rallies to be held by AIBEA & BEFI on the day of strike in their respective places/centres.

        Comrades - Let us take a pledge to protect the interests of both the banking industry and the Nation on the whole.  March on !!! March on !!!

Lenders' unions oppose new private banks

United Forum of Bank Unions (UFBU)

 The United Forum of Bank Unions (UFBU) - an umbrella body of nine bank unions - has opposed the Reserve Bank of India's move to grant new bank licences. It is also against allowing companies in the banking sector.

In a meeting at Chennai last week, the UFBU said in the name of the new economic measures, public sector banks have become the target and their role is being denigrated and relegated. At the same time, private sector banks are being encouraged, though their past role had never been positive. "UFBU regrets and condemns that efforts are afoot to liberalise the banking sector by allowing the corporates, industrial and business houses to float their own banks in the garb of a new licensing policy," it said in a statement.

It said because India's banking system largely was in the control of PSBs, the country could withstand the global financial crisis in the past decade.

Read more >> Click here

Bipartite Talks with IBA - Detailed Circular issued by AIBEA and UFBU

CIRCULAR  NO. 27/11/2013/17                                                     22^nd April, 2013

TO ALL UNITS & MEMBERS

Dear Comrades,

              Bipartite Talks with IBA

After the initial and opening round of discussions with the IBA held on 22-2-2013 on the charter of demands submitted by us for revision of wages and service conditions on expiry of the period of the 9^th BP Settlement on 31-10-2012, another round of discussions took place today between the IBA and UFBU constituent unions.  From AIBEA, our President Com. Rajen Nagar and the undersigned participated in the discussions. 

While all the bank employees were looking forward that the IBA would seriously commence the negotiations on our charter of demands, today the IBA gave their counter demands on the unions as under:

For Officers: Introduction of Cost to Company approach, Introduction of Performance linked Variable Pay, Restrictions on applicability for wage revision upto Scale III.

For Workmen:  Introduction of Cost to Company approach,  Introduction of Performance linked Variable Pay, On deployment of employees, Clause 32 of 8^th BPS dated 2-6-2055 should be superseded and employees should be transferable in a wider area by invoking Para 536 of Sastri Award, Rationalisation of special pay posts., Departmental action/enquiry proceedings should continue even after retirement of the employee and in such cases, the employee will not be paid any retirement benefit except his own contribution to PF, Premature retirement of workmen employees should be permitted in public interest after 55 years of age or 30 years of service, Simultaneous disciplinary action under departmental enquiry as well as judicial proceedings and deletion of clauses 1 to 4 of BP settlement dated 10-4-2002.

The IBA also gave the details of the data relating to establishment expenses, etc. The next round of discussions is expected to be fixed by middle of May, 2013. 

Our units are aware that while we need not be averse to discussing any issue of the management, the hurry and anxiety with which the IBA has brought their issues even before any progress is made in the discussions on our demands, smacks of their mindset.  The cat is just out of the bag.  It shows their priority.  Hence we should realize that achieving our demands will be quite challenging.  Let us be prepared for the same.

The circular issued by UFBU is appended herein.

                                                                                                                                            Yours Comradely,

C.H. VENKATACHALAM

GENERAL  SECRETARY

UFBU CIRCULAR NO. 7 dated 22-4-2013:

A round of discussion was held today in Mumbai between IBA and UFBU on our charter of demands for revision of wages and service conditions. The IBA was represented by the negotiating team headed by Mr. T M Bhasin (CMD Indian Bank and Senior Vice President, IBA).  UFBU was represented by the constituent unions.  NOBW could not be present due to their pre-fixed agitational programme in Delhi.

During this meeting, IBA provided the detailed data relating to establishment expenses of the banks as on March 31^st2012, which will be taken as the basis for calculations in the ensuing wage revision exercise. According to the data, the total establishment expenditure/wage bill of the public sector banks as on 31-03-2012, comes to Rs. 56,292 crores for workmen and officers put together.

The IBA also submitted the following Management issues for discussions by UFBU.

Officers:

1. Introduction of Cost to Company.
2. Introduction of Performance linked Variable Pay.
3. Restrictions on applicability for wage revision.

Workmen:

1.    Introduction of Cost to Company.

2.    Introduction of Performance linked Variable Pay.

3.    Deployment of Staff by invoking Para 536 of Sastri Award and superseding the provisions of 8^th BPS.

4.    Rationalisation of special pay posts.

5.    Departmental action to continue after retirement.

6.    Premature retirement of workmen employees in public interest after 55 years of age or 30 years of service.

7.    Simultaneous disciplinary action under departmental enquiry as well as judicial proceedings.

IBA further stated that they would make their presentations on these issues in the next meeting. They also informed that the next round of discussions would be held by the middle of May 2013.

Comrades, while we have come to the IBA for wage revision, it is clear that they are trying to foist anti-employee, anti-officer propositions. It appears that wage revision will be a challenging task before us. Hence our unity and vigilance are very important when we proceed with our charter of demands.

From the UFBU we insisted on the IBA that the long pending issue of compassionate ground appointment scheme should be resolved on a priority basis.  We also brought to their notice the problems faced by employees and officers on account of introduction of Grid-based clearing system by the RBI and urged for solution so that the issue does not become a dispute.

Further developments will be informed to unions in due course.

With greetings,

Yours comradely,

Sd.  P K Sarkar

   Convener

UFBU - Bank Branches to be kept open on 29th, 30th and 31st March, 2013

Addressed to Governor, Reserve Bank of India  by UFBU Convenor dtd 22.03.2013 :

We have for reference the two Circulars dated 21-3-2013 issued by 1) Dept. of Government and Bank Accounts and 2) by Depart of Payment and Settlement System asking all Banks to keep the Branches open for full day with extended hours on 29^th, 30^thand 31^st March, 2013 to facilitate the receipt of Government taxes, etc. from the public.

While we understand the requirement of the Government for collection of taxes, you will appreciate that bank holidays are declared by State Governments under the Negotiable Instruments Act and cannot and should not be unilaterally altered by either the Banks or by RBI.  Further such holidays are declared for specific reasons of important festivals, etc.   You are also aware that 29^thMarch happens to be Good Friday and 31^st March happens to be Easter Sunday.  Both these are very solemn and important occasions for the entire Christian population and hence asking these employees to come to the Bank on these days is unfair and improper.  Further the Government accounts are dealt with only in few bank branches and not by all.  Hence keeping all branches open for this purpose is also unwarranted.  In addition, operating clearing houses on these holidays would imply legal issues as the instruments transacted on declared holidays may not be covered by protected available under the NI Act.

More importantly, this would create avoidable hardship and inconvenience to the employees especially to the employees who belong to Christianity.  Hence we express our protest and reservation about the instructions given by RBI to the Banks and demand that any such opening of the Branches o holidays i.e. on 29^th and 31^st should be confined only to the few branches dealing with such accounts and with the minimum required staff.

Asking all the employees and officers in all the branches to attend offices on these dates is to be avoided.  Further, wherever any employee is required to attend office to meet these contingencies, they should be paid OT wages/compensation for the same.

We are sure that our above viewpoints would be kept in mind by RBI and revised instructions would be sent to the Banks immediately.

Thanking you,

(P K SARKAR)

CONVENOR

New licensing norms: Bank unions call for nationwide protest

NEW DELHI, MARCH 09:  

Bank unions are opposed to the RBI’s new bank licensing policy by which private industrial, business and corporate houses will be permitted to open their own banks.

The United Forum of Bank Unions, a representative body of nine bank unions, has called for countrywide demonstrations by bank staff on March 18 in this regard, C.H. Venkatachalam, General Secretary, All India Bank Employees Association (AIBEA), said.

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If unions are not engaged in talks, another strike will follow: Dasgupta

The two-day strike by the Central trade unions against the government’s “apathy” towards the working class came up in the Lok Sabha on Friday, with some members warning that there could be another agitation if trade unions are not engaged in talks.

 Sri Gurudass Gupta

Raising the issue during zero hour, Gurudas Dasgupta (CPI), who is also leader of the All-India Trade Union Congress (AITUC), said 44 crore workers, who were the mainstay of production in the country, were not getting appropriate remuneration and the government was neglecting them.

Read more >>  Click here

Banking services hit for second day

NEW DELHI, FEB 21:  

Normal banking operations were hit for the second day today as public sector bank employees continued their strike. The two-day nationwide strike call, demanding early wage revision among other issues, was given by United Forum of Bank Unions (UFBU) that comprises nine national unions.

Employees of public sector insurance companies, including LIC and
 New India Assurance, are participating in the trade unions' strike.

It was, however, business as usual at private sector banks such as ICICI Bank and HDFC Bank. Employees of public sector insurance companies, including LIC and New India Assurance, also participated in the strike.

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Bharat bandh: Bank services in Mumbai hit as strike enters day 2

MUMBAI: Majority of ATMs have dried up in the financial capital of Mumbai and banking operations across the city were hit on the second day of the general strike called by central trade unions for various demands. 

"A majority of ATMs have dried up while the (bank) branches are shut. Additionally, there has not been any cheque clearing as personnel from RBI too joined the strike. It will take at least 2-3 working days to clear the backlog for banks", said All India Bank Employees Association Vice President Vishwas Utagi. 

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Bharat bandh: Public sector banking operations hit as employees go on two-day strike

Bharat bandh: Normal banking operations like cheque clearances, withdrawing and depositing of money at branches were hit as employees of public sector banks went on a two-day strike beginning today. The nation-wide strike call, demanding early wage revision among other issues, was given by United Forum of Bank Unions (UFBU) that comprises nine national unions. It was, however, business as usual at private sector banks like ICICI Bank and HDFC Bank. 

Employees of public sector insurance companies, including LIC and New India Assurance, participated in the strike. Apprehending disruption in normal operations, many public sector banks had already informed customers about the strike. Sources said banks have taken steps to ensure that public do not face problems at least on the cash front during the strike period. Banks have replenished ATMs to meet the requirements in these two days.

Despite these measures, some ATMs went dry at commercial hubs. All India Bank Employees Association (AIBEA) General Secretary C H Vekatachalam claimed clearing operations, electronic fund transfers, forex transactions and money market operations were completely disrupted across the country.

Read More >>Click here

More News on Strike

PSU bank employees go on two-day strike called by trade unions : Read More > Click here

PSU bank employees go on 2-day strike - Click here

Trade unions’ strike hits banking, transport services

NEW DELHI, FEB. 20:  

Key services, including banking and transport, were affected as the two-day general strike by 11 central trade unions and several independent federations began on Wednesday.

While States such as Kerala, Bihar and Tripura were completely shut, the response was mixed in other States. There were reports of sporadic violence and lathi-charge in some areas, leading to the death of two workers in Haryana and Noida.

Read more  >>   Click here