State Bank employees to get more benefit & pay !!

State Bank employees to get more benefit & pay hike, awaits Govt. approval.
The State Bank of India employees, who had protested the 17.5 per cent pay increase on the grounds that they already had the pension option and would therefore lose out, are in for some bonanza.


The bank management is awaiting approval from the government to provide for an additional 6.4 per cent increase, which will cost the bank around Rs 290 crore. In addition, there is a proposal before the government for raising the pension for senior officers by around 40 per cent and for clerical and junior management grade employees by around 50 per cent.
A senior executive said the bank had already provided Rs 290 crore for the expected impact of the salary increase. SBI union representatives had not signed the wage settlement agreement with IBA.

Probable D.A. for Bank employees

Probable D.A. for Bank employees for Nov'10, Dec'10, Jan'11 : 46.20%
The exact increase for DA cannot be given at this stage as GOI has yet to announce the CPI for the month of September, 2010. However,
based on the CPI already announced for the month of July, 2010 and August, 2010, we are doing this guess work. The CPI announced so far are as follows:-
Month CPI
July, 2010 4063
August, 2010 4063
September, 2010 Yet to be announced


Assuming that there will be marginal increase in CPI for September, 2010, the revised DA is likely to be around 46.20%, for the months of November, December, 2010 and January, 2011 as per the revised salary structure (i.e. increase of 36 slabs !!). [The present DA is 40.80% for the months of August, September, October, 2010).

Associate bank Clerks

State Bank of India (SBI) Invited application for filling up the vacancies of 6113 Clerks in its Associate Banks. Out those 1000 will be in State Bank of Travancore (SBT) with 754 vacancies in Kerala itself. Other associates banks are State bank of Bikanir & Jaipur, State bank of Hyderabad (4 vacancy in kerala only), State Bank of Mysore and State bank of Patiala. Applications should be submitted through online at the banl websites at www.sbi.co.in or www.statebankoftravancore.com.
Total Number of Posts : 6113
Pay Scale : Rs. 7200 -19300
Qualification :
(i) Plus Two or equivalent with 60% marks (55% for SC, ST, PWD and XS)
(ii) 2 year full time diploma after SSLC(10th) with 60% marks (55% for SC, ST, PWD and XS)
(iii) Any Degree with 40% marks (35% for SC, ST, PWD and XS)
Should be able to read & write in English, knowledge in local language will be an added advantage
Age: (As on 2010 October 1) 18 -28 ( There will be a 5 year relaxation for SC/ST, 3 year for OBC and SX, 10 year for Physically handicapped and 9 years for widows in upper age limit, should submit proof while interview time.
Recruitment Process : Ther will be a written test followed by an interview. Written test will be on 16th January 2011. In kerala there is 4 centers ( Trivandrum, Kottayam, Kochi and Kozhikode).
In the Objective mode exam, there will be questions from General awareness, General English, Quantitative aptitude/ computer knowledge .
Call Letter : For E legible candidates the call letters will be send to them by post before January 8th 2011. In case of not receiving call letter, they should contact the exam center.
Fee : Rs. 350
Rs. 50 for SC/ST/PWD and XS candidates.
Candidates should have to download the cash voucher from the bank website at www.sbi.co.in and remit the fee at any sbi branch before applying online. Candidate should have to collect the candidates copy of the voucher from the bank, and use the same to fill the details including journal number while filling up the online application form. Also the candidates must have keep the candidates copy of the cash voucher while reaching the examination hall.
Note :
1. Fee Should be paid between October 1 st and October 30 th
2. Application Can be submitted through website from October 1 st to Novemebr 1 st
3. Candidate should have a valid email ID

Retiring at 65?

RETIRING at 65? Sounds incredible? For lakhs of government employees who are hoping that the UPA-II may raise the retirement age of government employees to 62 years, the 10th June’s cabinet decision to raise the Nursing teachers’ retirement age to 65 is a healthy sign that their dream may too come true in the next few years.
The decision appears like an isolated case, but the Union Cabinet’s approval to the increase superannuation age from 60 years to 65 years for the nursing teaching faculty with MSc in nursing in Central government nursing institutions, may bring hopes to many government employees approaching the retirement age.
The decision, however, came with a justification which said that there is an acute shortage of nursing teachers with post-graduate degree in nursing. As a large number of posts of teachers with MSc (Nursing) are lying vacant in the Central government Nursing Institutions, and there has been a high attrition rate, this move may prevent further exodus of nursing teachers.
Yet, it gives enough room for many government employees to probably hope and pray that the retirement age for all government employees may go upto 62.

PENSION BENEFITS

CIRCULAR NO. 26/64/2010/14 12-5-2010

TO ALL UNITS & MEMBERS

Dear Comrades,

Retired Employees & Pension Option

The unique feature of our Pension settlement is that not only the 2,66,000 existing employees will get an option to join the Pension Scheme, but even those who have retired/died after 1995/1996 will be given this option. More than 50,000 retirees/families will be benefited by this option.

Who are covered :

All those who were in the service of the Bank on the date of Pension Regulations in 1995/96 and

a) have retired thereafter before 27.4.10
b) or retired thereafter but died before 27.4.10
c) or died while in service before 27.4.10
d) or ceased to be in service under the Special VRS Scheme after 15 years of service.

How much they will pay to the Bank ;

All such retirees/families who give their option to join the Pension Scheme have to refund the Bank’s contribution to PF received by them along with additional 56% thereon.

How this formula :

v Total fund required for the option : Rs. 4774 crores
v PF paid to the retirees to be refunded : Rs. 1659 crores
v Balanced deficit in fund : Rs. 3115 crores
v To be contributed by Bank (70%) : Rs. 2181 crores
v To be contributed by retirees (30%) : Rs. 934 crores
v Formula : 934 Divided by 16.59 : 56 %

Procedure :

Þ IBA / Banks will make an offer to the PF opted Retirees.
Þ Within 60 days after the offer, option letter should be given to the Bank.
Þ Within 30 days thereafter, Bank will inform the retiree about the amount payable by them.
Þ While doing so, Commutation receivable will be netted and only the balance amount is payable.
Þ Commutation : will be based on present age on date of commutation.

Arrears of Pension :

Ø For those who have retired prior to 27.11.2009, arrears of pension will be paid from 27.11.2009.
Ø For those who retired after 27.11.2009 (but prior to 27.4.2010), arrears of pension will be paid from date of retirement.


Note : This arrears will be on full basic pension + DA without commutation.

Employees Retired after 1-11-2007 ( PF Optees )


Arrears of wage revision from 1.11.2007 till date of retirement will be paid.
Gratuity will be reworked & difference will be paid.
Their Pension/Commutation will be fixed based on 9th BPs.


We give below some live examples which explain the benefit of the option.

Example – 1

S. No.

(Rs.)
1
PF received from Bank 1,25,416.00
2
PF + 56% thereon 1,95,650.00
3
Commutation receivable 1,86,984.00
4
Amount payable to Bank (2-3) 8,666.00
5
Monthly Basic Pension + DA (before commutation ) for May, 2010) 8,046.00
6
Arrears of Pension – from 27.11.2009 till commutation is received
(Approx. 8 months) 64,368.00
7
Net Outgo (2 – 3 - 6) ----NIL….
8
Monthly Basic Pension after commutation 2,354.00
9
Basic Pension + DA after commutation (May, 2010) 6,870.00

Example – 2

1
PF received from Bank 6,26,181
2
PF + 56% thereon 9,76,842
3
Commutation receivable 3,02,382
4
Amount payable to Bank (2-3) 6,74,460
5
Monthly Basic Pension + DA (before commutation) for May, 2010 16,251
6
Arrears of Pension – from 27.11.2009 till commutation is received
(Approx. 8 months) 1,30,008
7
Net Outgo ( 2 -3 -6 ) 5,44,452
8
Monthly Basic Pension after commutation 6,420
9
Basic Pension + DA after commutation (May, 2010) 13,041
10
Monthly Interest @9% on Rs. 544,452 (Col. 7) 4,083
Example – 3

1
PF received from Bank 1,99,856
2
PF + 56% thereon 3,11,775
3
Commutation receivable 1,09,837
4
Amount payable to Bank (2-3) 2,01,938
5
Monthly Basic Pension + DA (before commutation) for May, 2010 5,903
6
Arrears of Pension – from 27.11.2009 till commutation is received
(Approx. 8 months) 47,224
7
Net Outgo ( 2 -3 -6 ) 1,54,714
8
Monthly Basic Pension after commutation 2,332
9
Basic Pension + DA after commutation (May, 2010) 4,737
10
Monthly Interest @ 9% on Rs. 154,714 (Col. 7) 1,160


Example – 4

1
PF received from Bank 359,869
2
PF + 56% thereon 561,396
3
Commutation receivable 266,814
4
Amount payable to Bank (2-3) 294,582
5
Monthly Basic Pension + DA (before commutation) for May, 2010 14,709
6
Arrears of Pension – from 27.11.2009 till commutation is received
(Approx. 8 months) 117,672
7
Net Outgo ( 2 -3 -6 ) 176,910
8
Monthly Basic Pension after commutation 4860
9
Basic Pension + DA after commutation (May, 2010) 12,279
10
Monthly Interest @9% on Rs. 176,910 (Col. 7) 1,326


Example – 5

1
PF received from Bank 577,750
2
PF + 56% thereon 901,300
3
Commutation receivable 391,700
4
Amount payable to Bank (2-3) 509,600
5
Monthly Basic Pension + DA (before commutation) for May, 2010 18,700
6
Arrears of Pension – from 27.11.2009 till commutation is received
(Approx. 8 months) 149,600
7
Net Outgo ( 2 -3 -6 ) 360,000
8
Monthly Basic Pension after commutation 7,400
9
Basic Pension + DA after commutation (May, 2010) 15,000
10
Monthly Interest @9% on Rs. 360,000 (Col. 7) 2,700

Example – 6

1
PF received from Bank 819,019
2
PF + 56% thereon 12,77,670
3
Commutation receivable 441,725
4
Amount payable to Bank (2-3) 835,945
5
Monthly Basic Pension + DA (before commutation) for May, 2010 20,369
6
Arrears of Pension – from 27.11.2009 till commutation is received
(Approx. 8 months) 162,952
7
Net Outgo ( 2 -3 -6 ) 672,993
8
Monthly Basic Pension after commutation 8,047
9
Basic Pension + DA after commutation (May, 2010) 16,346
10
Monthly Interest @9% on Rs. 672,993 (Col. 7) 5,047

Example – 7

1
PF received from Bank 190,000
2
PF + 56% thereon 296,400
3
Commutation receivable 229,542
4
Amount payable to Bank (2-3) 68,858
5
Monthly Basic Pension + DA (before commutation) for May, 2010 11,140
6
Arrears of Pension – from 27.11.2009 till commutation is received
(Approx. 8 months) 89,120
7
Net Outgo ( 2 -3 -6 ) …NIL…
8
Monthly Basic Pension after commutation 3,351
9
Basic Pension + DA after commutation (May, 2010) 9,465

All our Unions should take steps to contact the retirees ( PF Optees) and advise them of these benefits so that they can OPT for the pension scheme for which they have been longing for.

Yours Comradely,
C.H. VENKATACHALAM
GENERAL SECRETARY

PENSION OPTION SETTLEMENT – UNIQUE ACHIEVEMENT

Dear Comrades,

PENSION OPTION SETTLEMENT – UNIQUE ACHIEVEMENT

One more chance to secure your retired life

It is not a mere option but a golden opportunity

OPT FOR PENSION SCHEME

OPT UNHESITATINGLY Right from the days of Sastri Tribunal, AIBEA had been demanding pension benefit for bank employees. The demand became more focal when Government improved their pension scheme from 1.1.1986 under the 4th Pay Commission. AIBEA fought for the demand and achieved it by signing the historic settlement on 29.10.1993.
Thousands and thousands of employees opted to join their Pension Scheme and covered themselves by this better social security scheme and retrial benefit. However, due to doubts, apprehensions, typical short-sightedness of the middle class, and virulent propaganda, many remained in PF. But within a few years, everyone realized and understood that Pension is good and good for all.
But it has taken more than a decade to achieve the demand for one more option to join the pension scheme. With so much of efforts, lot of struggles and backed up strike actions, we could at last achieve this long-desired demand. Bank employees will cherish UFBU for long long years for this wonderful achievement.
The Day 27th April, 2010 will remain historic for bank employees trade union movement when all the unions under the banner of UFBU signed the Agreement/Joint Note providing one more chance to opt for Pension Scheme.
1. Eligibility for pension option – Who can opt now ? :
Those who were in service of the Bank on date of Pension Regulations in 1995/1996

a) and continue in service as on 27.4.2010.

b) OR retired thereafter before 27.4.2010.
c) OR retired thereafter and died before 27.4.2010 (Family can opt now).
d) OR died while in service but before 27.4.2010. (Family can opt now).
e) OR ceased to be in service thereafter under the Special VRS scheme after rendering 15 years service.
2. Who is a retired employee and who is an existing employee ?

a) Those who have retired prior to 27-4-2010 are retired employees.


b) Those who are in service as on 27-4-2010 are existing employees.

3. What to refund :
a) Employees in service as on 27.4.2010 and opt for pension now will pay from their arrears an amount equal to 2.8 times of „Pay‟ payable for the month of November, 2007.
b) Employees who have retired / died before 27.4.2010 and if option is given now by them/their family, they will repay the Bank’s contribution to PF received by them + 56% on this amount Less commutation amount.
4. From when pension will be paid:

a) For those who retired/died before 27.11.2009, arrears of Pension/Family Pension will be paid from 27.11.2009.


b) For those who retired/died after 27.11.2009, arrears will be paid from date of retirement/death.

5. When the option will be given:

All Banks will make an offer to the employees and retired employees. Within 60 days from the date of this offer, employees/retirees should give their option.

6. When to pay /refund the amount ?

For the existing employees as on 27-4-2010, the amount payable by them at 2.8 times of the Pay of November, 2007 will be recovered from the arrears. If anyone does not opt for Pension, then the amount will be refunded to them. If they give a letter prior to payment of arrears that they do not want to opt for pension scheme, then the recovery will not be made from the arrears but then they cannot opt for pension scheme later.


For Retired Employees, Upon receipt of the letter of option from the retired employees, Banks will work out and inform the retired employee as to how much he will get as pension and how much he has to refund to the Bank.


While refunding the Bank’s PF + 56 %, the Commutation receivable will be netted and only the balance amount is to be paid.

7. Commutation:

Commutation will be payable from the date of application for commutation and the age for this purpose will be the present age as on the date of commutation.

8. Arrears of Pension:

For those who have retired prior to 27-11-2009, pension is payable from 27-11-2009. Full Pension (before Commutation ) is payable till Commutation is applied/Paid.


For those who have retired after 27-11-2009 but before 27-4-2010, pension is payable from date of retirement. Full pension (before Commutation ) is payable till Commutation is applied/Paid.
9. Employees retired after 1-11-2007:

Those employees who have retired from the Banks after 1-11-2007 will be eligible for the following benefits:
For pension Optees :

a) Arrears of wage revision / revised pay scales & allowances from 1-11-2007 till date of retirement will be paid.

b) Gratuity will be reworked based on revised Pay and difference over the amount already received will be paid.

c) Monthly pension will be revised based on new pay scales.

d) Consequently, arrears of pension from date of retirement will be paid

e) Difference between revised Commutation and commutation already received.

For PF Optees :

a) Arrears of wage revision / revised pay scales & allowances from 1-11-2007 till date of retirement will be paid.

b) Gratuity will be reworked based on revised Pay and difference over the amount already received will be paid.

c) On opting for pension scheme, their pension / commutation will be paid based on 9th BPS Pay. They will also get arrears of full pension amount + D.A ( i.e.before commutation ) from 27-11-2009 or from date of retirement whichever is later till the commutation is paid.

10. Employees who join between 1-11-1993 and date of Pension Regulations :
Reference has been made to us about employees who had joined the Banks from 1-11-1993 till Pension Regulations were adopted in 1995/96 as to whether they should pay 2.8 times of Pay to join the pension scheme as some Banks have treated them as PF Optees. Our contention is that all these employees are automatically covered under pension scheme since our Settlement dated 29-10-1993 provides that all those who join the Banks on and from 1-11-1993 will be covered by pension scheme only. However, it needs a legal clarification from the Government / IBA. We are seized of the matter and shall follow up the same. In the meantime, such employees are advised to opt for pension when the offer is made under our settlement dated 27-4-2010.
Comrades, getting another option for pension is an unique achievement. It has come after a lot of struggles, efforts and negotiations. It is a significant achievement under the banner of UFBU. Pension is the best social security benefit for the employees. We appeal and advice all our members who are now PF scheme to give their option to join the pension scheme. OPT FOR PENSION. OPT UNHESITATINGLY.
With greetings,
Yours Comradely,
C.H. VENKATACHALAM
GENERAL SECRETARY
LISTEN TO VOICE OF WISDOM:
COM. TARAKESWAR IN 1994Dear Comrades,

Pension has been the cherished demand of the bank employees for the past four decades and more. It is a matter of great satisfaction and Organisational accomplishment that Pension has been finally achieved for the bank employees. The hurdles were too many and the obstacles were enormous. But you have made the achievements possible. Today all the Unions have accepted this Pension Scheme. The finalized Pension Scheme has been sent by IBA to all the Banks for implementation.
Employees joining the Banks from 1.11.1993 will be governed by Pension Scheme. Employees on rolls of the Banks as on 31.10.1993 have to exercise their option before 30.9.94. Employees who have already retired (after January 1986) have to submit their option letters before 31.7.1994.

Pension benefits the employees and covers the family also. It provides us regular income after retirement. It protects us against price rise. It gives us social security. Thus Pension benefits all.

* OPT FOR PENSION
* OPT TODAY
* OPT ALL - OPT UNHESITATINGLY
Sd..

June 4TH 1994 (TARAKESWAR CHAKRABORTHI)
GENERAL SECRETARY

DEARNESS ALLOWANCE

MAY DAY GREETINGS!19 SLABS D A INCRESE Wef MAY .NEW D A RATE ON REVISED NEW PAY AS PER 9TH BIPARTITE@39.6%RICE OF 2.85%.AS PER 8 TH BIPARTITE 72.18%,RICE OF 3.42%)

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PENSION OPTION‍!

NOW IT IS HEREBY AGREED AND DECLARED BY AND BETWEEN THE PARTIES HERETO AS UNDER:

TERMS OF SETTLEMENT

(1) All workmen employees are in the service of the bank as on the date of this Settlement who exercise option to join the Pension Scheme in terms of this Settlement will contribute from their arrears on account of wage revision in terms of the Settlement between the parties dated 27th April 2010 an amount of Rs.878 crores towards their share in the amount of Rs.1800 crores offered by UFBU towards 30% of the estimated funding gap of Rs.6000 crores. The said amount is worked out @2.8 times of the revised pay for the month of November 2007, for individual workmen employees.

(2) Another option for joining the existing Pension Scheme shall be extended to those employees who:-

(I) (a) were in the service of the bank prior to 29th September 1995 in case of Nationalized Banks / 26th March 1996 in case of Associate Banks of State Bank of India and continue in the service of the bank on the date of this Settlement;

(b) exercise an option in writing within 60 days from the date of offer, to become a member of the Pension Fund and

(c) authorise the Trust of the Provident Fund of the bank to transfer the entire contribution of the bank along with interest accrued thereon to the credit of the Pension Fund.


(II) (a) were in service of the bank prior to 29th September 1995 in case of Nationalized Banks / 26th March 1996 in case of Associate Banks of State Bank of India and retired after that date and prior to the date of this Settlement;

(b) exercise an option in writing within 60 days from the date of offer to become a member of the Pension Fund and

(c) refund within 30 days after expiry of the said period of 60 days, the entire amount of the banks contribution to the Provident Fund and interest accrued thereon received by the employee on retirement together with his share in contribution towards meeting 30% of Rs.3115 crores which is estimated and reckoned as the funding gap for those eligible under Clause 2(II),2 (III) and 2(IV) of this agreement. On an individual basis, the payment over and above the bank’s contribution to Provident Fund and
7

interest thereon has been worked out at 56% of the said amount of bank’s contribution to Provident Fund and interest thereon received by the employee on retirement.


(III) The family of those employees who were in the service of the bank prior to 29th September 1995 in case of Nationalized Banks / 26th March 1996 in case of Associate Banks of State Bank of India retired after that date and died will be eligible for family pension, provided –

(a) the family of the deceased employee exercises option in writing within 60 days of the offer to become a member of the Pension Fund and

(b) refund within 30 days after expiry of the said period of 60 days, the entire amount of the bank’s contribution to the Provident Fund and interest accrued thereon received by the deceased employee on retirement together with his share in contribution towards meeting 30% of Rs.3115 crores which is estimated and reckoned as the funding gap for those eligible under Clause 2(II),2 (III) and 2(IV) of this agreement. On an individual basis, the payment over and above the bank’s contribution to Provident Fund and interest thereon has been worked out at 56% of the said amount of bank’s contribution to Provident Fund and interest thereon received by the employee on retirement.


(IV) The family of those employees who were in the service of the bank prior to 29th September 1995 in case of Nationalized Banks / 26th March 1996 in case of Associate Banks of State Bank of India, but have died while in service of the bank after that date will be eligible for family pension, provided –

(a) the family of the deceased employee exercises an option in writing within 60 days of the offer to become a member of the Pension Fund and

(b) refund within 30 days after expiry of the said period of 60 days mentioned above, the entire amount of the bank’s contribution to the Provident Fund and interest accrued thereon received upon death of the employee together with his share in contribution towards meeting 30% of Rs.3115 crores which is estimated and reckoned as the funding gap for those eligible under Clause 2(II),2 (III) and 2(IV) of this agreement. On an individual basis, the payment over and above the bank’s contribution to Provident Fund and interest thereon has been worked out at 56% of the said amount of bank’s contribution to Provident Fund and interest thereon received on death of the employee.
8

(3) (i) The existing pension scheme will not be applicable to those who join the services of banks on or after 1st April 2010.

(ii) Employees joining the services of banks on or after 1st April 2010 shall be eligible for the Defined Contributory Pension Scheme, the banks will be introducing for them. The Defined Contributory Pension Scheme proposed to be introduced for them will be one as governed by the provisions of New Pension System introduced for employees of Central Government w.e.f. 1st January 2004 and as modified from time to time. The Scheme shall be regulated and administered by the Pension Fund Regulatory and Development Authority (PFRDA).

(iii) The employees joining the services of the banks on or after 1st April 2010 shall contribute 10% of Pay and Dearness Allowance towards the Defined Contributory Pension Scheme and the bank shall make a matching contribution in respect of these employees.

(iv) There shall be no separate Provident Fund for employees joining services of Banks on or after 1st April 2010.


(4) Employees who ceased to be in service on or after 29th September 1995 in case of Nationalized Banks / 26th March 1996 in case of Associate Banks of State Bank of India on account of voluntary retirement under special scheme after rendering service for a minimum period of 15 years, shall be eligible to exercise an option to join the Pension Scheme subject to the terms and conditions mentioned for retiring employees opting for joining the Scheme.


(5) Pension/ Family Pension to those who opt to join the pension scheme complying with the terms of this Settlement shall be payable with effect from 27th November 2009, provided that employees who retired after that date shall get pension from the respective dates of their retirement. All the Regulations of the Bank Employees’ Pension Regulations, 1995 / 1996 shall be applicable to those who opt for the Pension Scheme in terms of this Settlement except to the extent mentioned in the foregoing Clauses of this Settlement.


(6) The terms of this Settlement shall not be applicable to State Bank of India.


(7) The terms of this Settlement shall be incorporated in the Bank Employees’ Pension Regulations, 1995 dated 29th September 1995 in case of Nationalized Banks / 26th March
9

1996 in case of Associate Banks of State Bank of India respectively by complying with the procedure for amendment of the relevant Pension Regulations.


(8) The terms of this Settlement shall be applicable to employees of Private Sector Banks who are parties to this Settlement in respect of those who were in the service of the bank on date of implementation of the Pension Scheme in terms of the Settlement dated 29th October 1993 and did not opt for pension.


(9) National Organisation of Bank Workers (NOBW), which is not a party to the Pension Settlement dated 29th October 1993, hereby endorses all the terms of the said Settlement.


(10) The provisions of the Bipartite Settlement dated 29th October 1993 on pension shall stand amended/ modified or superseded to the extent and in the manner detailed hereinabove.


(11) The provisions of the Bipartite Settlement dated 29th October 1993 which have not been amended/ modified or superseded by this Settlement shall continue to be in operation.


(12) The Unions who are parties to this Settlement agree that during the operation of this Settlement, they will not raise any demand of any nature whatsoever on any banks in respect of matters covered by this Memorandum of Settlement.


(13) Copies of this Memorandum of Settlement will be jointly forwarded by the parties to the authorities listed in Rule 58 of the Industrial Disputes (Central) Rules, 1957 so that terms of and conditions thereof are binding on the parties as provided in law.


(14) Any difference of opinion regarding interpretation of any of the provisions of this Settlement, the matter will be taken up only at the level of the Indian Banks’ Association and the Workmen Unions for discussion and Settlement.

Mumbai Dated: 27th April 2010

9th Bipartite Settlement signed today

Congratulations and Greetings
9th Bipartite Settlement signed today
AIBEA achieves Pension again and Pension for all

The much-awaited Settlements on wage revision and pension option have been signed today with the IBA, achieving another landmark in our trade union movement. The 9th successive Bipartite Settlement has been signed and the wages and service conditions of bank employees have been improved. The Pension option Settlement has also been signed today which enables all the remaining employees to be covered by the D.A. linked Defined Benefit Pension Scheme, which is the best social security measure in the post-retiral life of employees.
We are happy that under the banner of UFBU, all the 9 unions have simultaneously signed the Agreements covering both employees and officers, manifesting the true spirit of the UFBU.
The Settlement covers 46 Banks (26 Public Sector Banks, 12 Private Sector Banks and 8 Foreign Banks) and would benefit 4,77,000 workmen employees and 2,75,000 officers. The Settlement would cost the Banks an additional increase in wages by Rs.5,200 crores per year (Rs.4,816 crores for Public Sector Banks and around Rs.400 crores for private and Foreign Banks). The Settlement will be effective from November 2007 to October 2012.
Under the Settlement all the remaining 2,60,000 employees and officers who are now covered by CPF would be given a chance to join the Pension Scheme - a long time demand of the Unions. More than 50,000 retirees will also get the option to join the pension scheme.
The Settlement is preceded by 30 months of protracted negotiations between the IBA and the unions, and was backed by various agitational programmes and strike actions, which were enthusiastically implemented by the members. There were many anxious moments during this period coupled with loads of misinformations, orchestrated columnies and virulent propaganda against all our efforts to settle. Added to this were the attempts to undermine the organistion, decry the leadership and derail the negotiations. But overcoming this and these, we have concluded the Settlement successfully.
Hats off to your unity, patience and co-operation. You have done proud to AIBEA.
Greetings to all of you.

9th BIPARTITE SETTLEMENT SIGNED JUST NOW

9th BIPARTITE SETTLEMENT SIGNED JUST NOW.PENSION COST ONLY FROM PF OPTEES @2.8 TIMES OF REVISED PAY OF NOV 2007.NO OUTSOURCING CLAUSE.

EXISTING PENSION OPTEES MAY BE EXEMPTED FROM SHARE!

9Th BIPARTITE SETTLEMENT IS GOING TO BE SIGNED NOW…..
FRESH OPTEES OF PENSION NEED TO PAY ONLY 2.8 TIMES NOVEMBER 2007 NEW BASIC PAY &ALLOWANCES.EXISTING PENSION OPTEES MAY BE EXEMPTED FROM SHARE.

pension option

UFBU CIRCULAR LETTER NO. 2010/5 22-4-2010

TO GENERAL SECRETARIES OF
ALL CONSTITUENT UNIONS :

Dear Comrades,

As discussed on 13th April, 2010, efforts were taken to meet the Finance Minister on the issue of effective date of pension option w.e.f. 1-4-2008 as against IBA proposal of effective date from date of settlement.

Yesterday evening, representatives of UFBU met the Finance Minister in his office in North Block. The following were present from UFBU.

1. C H Venkatachalam, AIBEA
2. S A Kadri, BEFI
3. Harvinder Singh, AIBOC
4. Alok Khare, AIBOA
5. Pradip Biswas, BEFI
6. O P Sharma, INBEF
7. Prem Makkar, INBOC
8. Ashwani Rana, NOBW
9. Sunil Deshpande, NOBO

It was represented to the Finance Minister that since the Actuarial Report was based on the details of 31-3-2008, the pension option settlement should be effective from 1-4-2008, i.e. those who were on service on 1-4-2008 should be treated as existing employees for the sake of the settlement and pension payments on account of the option should be made from 1-4-2008. FM did not agree with our viewpoints. However, he stated that the effective date can be taken as 27-11-2009, i.e. the date on which we had signed the MOU.

IBA-UFBU MEETING on 27-4-2010:

IBA has informed that another round of meeting with the UFBU will be held on 27-4-2010 with a view to signing the final settlement. UFBU will meet at Mumbai on 26th April to take final view of the issues involved including pension cost sharing, issue like outsourcing, etc to pave the way for signing the settlement.

With greetings,
Yours Comradely,

C.H. VENKATACHALAM
CONVENER

9th Bipartite will sign on 27th April -2010

IBA MEETING WITH UFBU ON 27th APRIL TO FINALISE AND SIGN SETLEMENT.UFBU WILL MEET AT 11 am ON 26th TO TAKE FINAL VIEW ON ISSUES.

UFBU WILL MEET FM TODAY

TODAY (21-04-2010)AT 6.30 pm UFBU WILL MEET FINANCE MINISTER ON EFFECTIVE DATE FOR PENSION OPTION.!

Final position for Officers' Pay Hike

Bank 9th Bipartite : Final position for Officers' Pay Hike.

WAGE TALKS – WHAT HAS EMERGED SO FAR

1. Scales of Pay

JMG Scale I – Rs.14500 - Rs.28100 + 2 Stg.increments of Rs.800 [available now] + 2 [new] addl.stag.increments @ Rs.900/- each

MMG II – Rs.19400 - Rs 30600 + 2 stg.incements of Rs.900 [available now]+ 2 [new] Addl.stag.@ Rs.900/- each

MMG III – Rs.25700 to Rs.31500 + 2 stag.@ Rs.900 + 2 [new] Addl.stag.@ Rs.900 each

SMG IV – Rs.30600/- - Rs.36200/-
SMG V – Rs.36200 - Rs.40400/-
TEG VI-Rs.42000 – Rs.46800
TEG VII – Rs.46800 - Rs.52000/-

2. Dearness allowance – for every 4 points rise/fall beyond 2836 points of CPI,
Dearness allowance at 0.15% per slab

3. HRA @ 8.5%; 7.5%; 6.5% on revised Pay respectively.[BP+PQA+Stg.increments] for special places, Area I, other places.

4. CCA @ same rate of 4% of BP and 3% of BP with max. at same amount ie; Rs.540/- and Rs.375/-respectively.

5. Two additional stagnation increments for Scale I, II and III officers. The first of which will be paybale from 1.11.2007 provided he/she has completed 3 years after receiving the II stagnation increment. The fourth stagnation increment will be paid 3 years after drawing 3rd stagnation increment ie; 1.11.2010 or later.


6. W.e.f. 1.5.2005 pension to officers retired during the period 1st April 1998 to 31.10.2002 will be refixed on pay definition in terms of Joint Note dated 14.12.1999 – No arrears / commutation in respect of this will be paid

7. Similarly officers who retired in service during 1.11.2002 to 30.4.2005, Pension will be refixed pay as per Joint Note dated 2.6.2005. No arrears or commutation will be payable.

8. Medical Aid – JMG & MMG – Rs.5100/= and SMG & TEG –Rs.6200/- per annum

9. Hospitalization

Upto scale III Bed charges Rs.700/- for self per day
Bed charges RS.525/- for family per day
Other charges – 125% of workmen rates

Scale IV & above Bed charges Rs.900/- for self per day
Bed charges Rs.675/- for family per day
Other charges – 150% rates of workmen eligible for other charges

10. Recovery – for rent 1.20% of first stage of pay and 0.25% for furniture of first stage of pay or standard rent which ever is lower.

11. FPP
Increment + DA as on 1.11.2007 + HRA @ applicable rates
800 58
900+ 65
1000+ 72
1100+ 79
1200+ 86
1300+ 94

12. CAIIB Part I Rs. 410/- pm
CAIIB [both parts] Rs.1030/- pm

13. Deputation Allowance
Outside the Bank – 7.75% of Basic pay with maximum of Rs.2300/ pm
Within the Bank – 4% of Basic pay with maximum of RS.1200/- pm

14. Hill Allowance
1000 meters 2% of BP max.Rs.550/ -pm
1500 meters less than 3000 meters 2.5% of BP max.Rs.680/-
3000 meters and above 5% of BP max. of Rs.1570/-

15. Halting allowance

Scale IV & above 1000 800 700
Upto Scale III 800 700 600

16. LFC
a. JMG entitled to travel by air to the eligibility I class AC
b. Dependants income Rs.3500/- pm

17. Project Area Allowance
Group A Rs.290/= pm
Group B Rs.255/- pm

18. Mid Academic Allowance Rs.700/- pm

19. Split Duty Allowance Rs.165/- pm

20. Date of effect – 01.11.2007
[ except in the case of Hospitalisation. Halting allowance, Split Duty allowance,
Mid Academic Transfer allowance and officiating allowance
where it will be effective from 1.5.2010 ]

Source : All India Bank Officers' Association

State Bank of India (SBI) officers have resigned from the membership of the officers’ association.

There have been wide spread reports regarding the dissatsifaction among various sections of the officers on account of the poor increase in this wage settlement. Officers have been fuming as association instead of increasing the pay scales as offered by IBA actually forced IBA to start the pay of Scale I officers at a lower level then what was offered by IBA. Similarly, the last stage of Scale VII offered by IBA was also pruned under the pressure of Union leaders. They did all this in the name of benefiting the Scale I, II and III officers by introducing stagnation increments. The final outcome which has come out has been far from satisfactory even for Scale I, II and III officers. Moreover, the payment for 2nd option for pension has also brought heart burnings as even pension optees have to contribute towards this.

Now we have received certain reports that due to above resentment with the wage settlement, 80 per cent of State Bank of India (SBI) officers in the senior management grade have resigned from the membership of the officers’ association.

The finer details of the industry wide wage revision for bank employees have already been worked out and the agreement will be made official next week.

“There has been an exodus from the officers’ association from the Mumbai Corporate centre alone”, said an employee involved in the issue.

Referring to the dissatisfaction among officers, TN Goel, president of the All-India State Bank of India Officers’ Federation, said the basic issue with the decision for just a 17.5 per cent hike, which was making it difficult to structure the pay scales. Hence, various groups feel they are getting a raw deal. Specific issues regarding SBI staff and officers will be taken up after the industry-level pact is signed.

However, SBI officials who have resigned from the association are of the view that the wage negotiations are more focused on issues other than a decent wage package. Officers allege that the first priority of the present settlement is giving a second pension option to those who did not opt for the scheme in 1993.

The second priority of the settlement had been providing “stagnation increments” to officers in scale I to III, they said. The position in the SBI cadre increases in an ascending order from scale I to scale V. Scale IV and V comprise senior management.

“The stagnation benefit creates an anomalous situation whereby a person in a lower scale, who was either not found fit for promotion or did not opt for promotion, draws the same basic salary as a person who is shouldering higher responsibilities after being promoted to a higher scale. Moreover, the wage settlement does not extend the same benefit to scale IV or V officers, where stagnation is more than 12 years and is followed by frequent transfers”, they said.

“The most objectionable part of the settlement is that the representatives of the SBI officers’ association, rather than struggling for higher wages for members, have settled for less. This is because IBA had proposed pay scales of Rs 15,000-54000 as increase in basic salary across the board whereas the association settled for Rs 14,500-52,000”, said the officers.

GD Nadaf, general secretary, All India Bank Officers’ Association, said that from around two-and-a-half years of arrears, employees opting for the second pension scheme might have to forgo seven to eight months of arrears as contribution to the pension fund in lieu of the provident fund.

Talks with IBA on 13th April, 2010

Talks with IBA on 13th April, 2010

We reproduce herein the text of UFBU Circular No. 3 of date on the details of the discussions held between UFBU and IBA today (13th April, 2010) at Mumbai.


Pension related issues: While the draft of the Pension Option Settlement has been discussed and finalised, important issues of sharing the deficit / gap were discussed today. Various proposals of sharing method were discussed by us in the UFBU meeting including differential formula for pension optees and PF optees and taken up with the IBA. However, having regard to certain legal and other implications, it has been finalised to have a uniform sharing formula. The details are given in the UFBU circular herein.


Improvements in pension scheme: UFBU has also decided to take up various issues relating to improvements in the Pension Scheme like periodical updation of pension along with wage revision for serving employees, 100 % DA to be paid to all pensioners, common indexation of pension, increase in commutable portion of pension, increase in Ex Gratia for Pre-1986 retirees/widows, higher pension for pensioners above the age of 80, etc.


Final Settlement: Various informations are being floated amongst the employees that the 9th Bipartite Settlement would be signed on 15th, 17th, 25th, etc. As of now, IBA has proposed that the final settlement can be signed on 20th April, 2010 since according to them all the issues stand resolved and the draft is also getting finalised. However, from our side, there are very important issues like IBA’s proposals on outsourcing and increase in duties of Single Window Operators, Head Cashiers and Special Assistants without increase in Special Pay on which there are serious differences with the IBA. Without resolving these issues it would not be possible for AIBEA to sign the Settlement.


We will keep members informed of all developments. Units and members are requested not to be carried away or provoked by attempts from any quarter to create confusions and diversions.



Text of UFBU Circular No.3 dated 13th April, 2010.



Another round of bipartite talks was held between IBA and UFBU constituents at Mumbai today. IBA was represented by Mr. Ramakrishnan, Chief Executive, Mr. Unnikrishnan, Dy. Chief Executive and Mr. M. Venugopalan, Officer on Special Duty. From UFBU, representatives of all the 9 Unions were present.

In today’s meeting, issues relating to settlement on pension option were taken up. The draft Settlement was discussed in details and finalized.

Regarding retirees, the formula for contribution of Rs. 934 crores ( 30% gap ) of the deficit after refund of the PF amount (Bank’s contribution), it has been decided that the retirees will contribute as under:



Refund of PF amount (Bank’s contribution) actually received at the time of retirement (no interest is payable on this amount)= Rs. X


Plus: 56 % on this amount of Rs. X = Rs. Y


Less: Commutation amount Receivable from the Bank = Rs. Z


Net Amount refundable to the Bank Rs …… ( X + Y – Z )




Regarding existing employees / officers, out of the net gap of Rs. 6000 crores, Banks would contribute 70 % i.e. Rs. 4200 crores. For the balance of Rs. 1800 crores ( 30%) employees / officers would contribute as under: ( This will be a onetime contribution and would be recovered from the arrears.)



For existing employees/officers - 1.6 times of “ Pay ” payable for the month of November, 2007.

For employees who have joined the banks after 1st November, 2007 their contribution would be proportionately reduced.



Date of effect of pension option: IBA reiterated their stand that pension option would be effective from the date of the Settlement while we have explained our viewpoint that it should be w.e.f. 1-4-2008. Difference on this issue persists. UFBU decided to take steps to find a solution to this issue.

Improvements under Pension Scheme: We took up with IBA various improvements in the Pension scheme like periodical updation of pension along with wage revision for serving employees, 100 % DA to be paid to all pensioners, common indexation of pension, increase in commutable portion of pension, increase in Ex Gratia for Pre-1986 retirees/widows, higher pension for pensioners above the age of 80, etc. After discussion it has been decided to submit a memorandum on these issues to the IBA and the Government and to be pursued further.

TALKS WITH IBA TODAY(14-04-2010

Dear comrades,
TALKS WITH IBA TODAY
We reproduce herein the text of UFBU Circular No. 3 of date on the details of the discussions held between UFBU and IBA today at Mumbai.
Pension related issues: While the draft of the Pension Option Settlement has been discussed and finalised, important issues of sharing the deficit / gap were discussed today. Various proposals of sharing method were discussed by us in the UFBU meeting including differential formula for pension optees and PF optees and taken up with the IBA. However, having regard to certain legal and other implications, it has been finalised to have a uniform sharing formula. The details are given in the UFBU circular herein.
Improvements in pension scheme: UFBU has also decided to take up various issues relating to improvements in the Pension Scheme like periodical updation of pension along with wage revision for serving employees, 100 % DA to be paid to all pensioners, common indexation of pension, increase in commutable portion of pension, increase in Ex Gratia for Pre-1986 retirees/widows, higher pension for pensioners above the age of 80, etc.
FINAL SETTLEMENT: Various informations are being floated amongst the employees that the 9th Bipartite Settlement would be signed on 15th, 17th, 25th, etc. As of now, IBA has proposed that the final settlement can be signed on 20th April, 2010 since according to them all the issues stand resolved and the draft is also getting finalised. However, from our side, there are very important issues like IBA’s proposals on outsourcing and increase in duties of Single Window Operators, Head Cashiers and Special Assistants without increase in Special Pay on which there are serious differences with the IBA. Without resolving these issues it would not be possible for AIBEA to sign the Settlement.
We will keep members informed of all developments. Units and members are requested not to be carried away or provoked by attempts from any quarter to create confusions and diversions.
With greetings,
Yours comradely,
(C. H. VENKATACHALAM)
GENERAL SECRETARY

GD Nadaf had sent a letter to I B A Chairman

No./1452/85 /10 05.03.2010
05.03.2010To, The Chairman,

The Indian Banks’ Association,

Stadium House,

Block II & III,Vir Nariman Road,

Church Gate,MUMBAI – 400 020.

Dear Sir,

IMPROVEMENTS IN PENSION REGULATIONSWe invite your kind attention to the Recommendations of V Central Pay Commission, wherein the Govt. of India in partial modification of Rule 54(3)a of CCS (Pension) Rules, 1972, has decided that the payment of family pension at enhanced rates will be payable for 7 years or till the Government servant/pensioner would have attained the age of 67 years against the existing provision of 65 years. This was necessitated in the wake of increase in the age of retirement from 58 to 60 years. These provisions have not been implemented in the Banking Industry although the age of retirement has been revised from 58 to 60 years.In view of the foregoing, we suggest the following amendments to Pension Regulations 1995 for Bank employees, with regard to payment of Family Pension:1) Enhancing the Age upto 67 years for the purpose of Family Pension:As per the Bank Employees’ Pension Regulations 1995, Regulation 39 Sub-rule 3(i) (ii), in the event of death of an employee after retirement, the Family Pension as determined under clause (a) of this sub-regulation shall be payable for a period of seven years or for a period upto the date on which the retried/deceased employee would have attained the age of 65 years, had he survived, whichever is less.It may please be noted that the upper age of 65 years was fixed when the normal retirement age was fixed at 58 years. For all the Bank employees in the Banking Industry the retirement age is increased to 60 years and hence, the payment of family pension should be for 7 years or till the Bank employee would attain the age of 67 against the existing provision of 65 years.2) Revision of rate of family Pension to be at par with Government Employees:As per the Bank (Employees’) Pension Regulations 1995, Regulation 39, Appendix III, the ordinary rate of family pension shall be determined as per scale of pay. For example, the employees, who retired / died on or after 01.11.2007 family pension payable is as follows:Upto Basic Pension of Rs. 5720/- - 30% with a minimum of Rs.1,435.00Basic Pension of above Rs. 5720/- - 20% with a minimum of Rs. 1715.00and below Rs.11,440/-Basic Pension of above Rs. 11,440 - 15% with a minimum of Rs.2,292/- and a maximum of Rs. 4,724/-The family of an employee, who unfortunately dies during the fag end of his career, gets a low family pension which is not sufficient even for sustenance and hence there is an urgent need to revise the family pension rates which is already in vogue as per the family pension scheme 1964. As per the family pension scheme 1964, family pension shall be payable at a uniform rate of 30% of Basic Pay in all cases, instead of the slab system as per Bank (employees’) pension Regulation 1995.
3) Revision in the Commutation Value:As per the Bank (employees’) Pension Regulations 1995, an employee shall be entitled to commute for a lump sum payment of a fraction not exceeding one third of his basic pension i.e., 33% whereas in the case of Government employees, they are entitled for lumpsum payment of an amount not exceeding 40% of his basic pension.The foregoing suggestions are in tune with the Recommendations of the V Central Pay Commission and we request you to arrange for a bipartite Meeting to have a threadbare discussion on the issues. A positive consideration of the above suggestions will benefit a large number of families of Bank employees/ officers.

Thanking you,Yours faithfully,

Sd/-(G.D. NADAF)

GENERAL SECRETARY

WHAT IS THE LIKELY DEARNESS ALLOWANCE INCREASE

In the month of January, 2010, we projected the likely increase in DA from February, 2010, based on the available data. (same DA is also applicable for the months of June 2010 and July, 2010).
Although, it is absolutely impossible to predict such things as inflation figures widely fluctuate and are released by government, yet as requested by our readers and based on the trends so far released, we give below our projections for the DA on the existing scales. .

The exact increase for DA cannot be given at this stage as GOI has yet to announce the CPI for the month of December, 2009. However, based on the CPI already announced for the month of October, 2009 and November, 2009, we are doing this guess work. The CPI announced so far are as follows:-

Month CPI
Jan 2010 -3926
February 2010 -3880
DA FOR FEB, MAR AND APRIL 2010=68.76
Likely DA for MAY, JUNE, JULY, 2010;Likely Avg CPI =3895; Likely Slabs = 401; Likely DA=72.18%

IN TODAY'S MEETING (13.04.2010)

IN TODAY'S MEETING (13.04.2010) WITH IBA BY UFBU, SHARING THE PENSION COST BY EMPLOYEES & RETIREES FINALISED.....FOR DATE OF EFFECT OF PENSION, IT HAS TO BE PERSUED WITH THE GOVT. BY THE UFBU.

Meeting between IBA and four Officers’ Organizations on 9th &10th april

We refer to our circular No.10 of 2010 dated 6th April, 2010 and wish to inform that, as scheduled, a meeting between IBA and INBOC together with the other three Officers’ Organizations was held in Mumbai on 9th and 10th April, 2010 to discuss and finalize Residual issues and Draft Settlement.



Issues related to increase in accumulation and encashment of Privilege Leave, Sick Leave upto 7 days without medical certificate and other types of leaves including special leave for lady officers to undergo hysterectomy, Defined Working hours, financial compensation for working late and on Sundays and holidays were discussed in the two days’ meeting. Discussions also covered the following issues:



1. Modalities governing Stagnation increments
2. Medical Aid and Hospitalization Expenses
3. Recovery of House/Furniture Rent
4. Fixed Personal Pay
5. Professional Qualification Pay
6. Deputation Allowance
7. Hill and Fuel Allowance
8. Halting Allowance
9. Special Area Allowance
10. Mode of Travel and Expenses on Travel
11. Leave Travel Concession
12. Definition of Family
13. Project Area Allowance
14. Mid Academic Transfer Allowance
15. Split Duty Allowance
16. Closing Allowance – coverage and increase
17. Inspecting Officers – increase in the additional diem allowance



We are happy that we are able to reach understandings on a number of issues with the negotiating team of IBA. We propose to take up the remaining issues with the Chairman of IBA seeking his direct intervention, immediately. Meanwhile we wish to inform that IBA will hold a meeting with UFBU on 13th April, 2010 to discuss and finalize Pension Scheme.



With greetings,

Yours sincerely,

(K.K.NAIR)

GENERAL SECRETARY

During the course of 2 days’ discussion

Another round of wage negotiations between IBA and workmen’s unions has been held yesterday and today, preceded by a meeting of the unions with Dr Khandelwal Committee, on Human Resource matters in Public

During the course of 2 days’ discussion on wage related matters the followings items were finalized :

HRA – Where quarters are provided recovery of rent will be 0.50% of first stage of scale of pay.

LFC - One more option to change block of years. For encashment, employee to be on leave for, at least, 1(one) day.

Travel by own car with permission of the bank.

Special Area Allowance - In line with Government of India Notification.

FPP - Area I Area II Area III Area IV

Clerk Rs.940/- Rs.930/- Rs.920/- Rs.915/-

Sub Staff Rs.470/- Rs.465/- Rs.460/- Rs.460/-

At places where accommodation is provided by the bank : Rs 860 for clerks and Rs 430 for sub. staff and increment component in all cases Rs.800/- for clerk and Rs.400/- for sub staff.

Halting Allowance - Area I & II Area III Area IV

lerk Rs 500/- per diem Rs 375/-per diem Rs. 300/- per diem

Sub. Staff Rs 375/- per diem Rs 250/- per diem Rs. 185/- per diem

PQP/Graduation Pay – Rs.250/- after 1 yr, Rs.490/- after 2 yrs., Rs.740/- after 3 yrs., Rs.990/- after 4 yrs.,

Rs.1230/- after 5 yrs, all per month.

Implementation - Items Date of effect

Scale of pay, Stagnation increment, DA, 1st November 2007

PQP,FPP,HRA,Transport,Medical Aid, Allowances under the Heads : Special Area , Hill & Fuel, Washing, Split Duty, Cycle, Project Area; PF & Gratuity .

Part Time Employees - Upto 3 hrs - Rs 1030/- 1st November 2007

Upto 6 hrs – Rs 144o/-

Elevation to 1/3rd Scale Wage 1st May 2010

Halting Allowance 1st May 2010

LFC, Hospitalisation, Leave or Hysterectomy,Road Date of settlement Milage, Family Defination.

Discussion was also held for improvement of Hospitalisation Scheme but is yet to be finalised. On outsourcing and Duty of

Special Pay carrying posts, proposal of IBA have been opposed and no conclusion could be reached.

Next round of talks will be held on 13th instant.

Further developments shall be advised to you in due course

MEETING WITH IBA ON 7TH AND 8TH APRIL, 2010

CIRCULAR LETTER NO. 26/52/2010/13 9-4-2010


TO ALL OFFICE-BEARERS/STATE FEDERATIONS &
ALL INDIA BANKWISE ORGANISATIONS :


Dear Comrades,

MEETING WITH IBA ON 7TH AND 8TH APRIL, 2010

Further to the meeting held with the IBA on 3-4-2010 when the chart on distribution of the total cost of wage revision to various heads was finalized and signed, another round of meeting took place with the IBA on 7th and 8th April, 2010. AIBEA, NCBE, BEFI and NOBW took part in the meeting. ( INBEF did not sign the Distribution Chart on 3-4-2010 and did not attend the meeting with IBA on 7/8-4-2010).

In these 2 days meeting, the drafting of the Settlement was undertaken. Most part of the drafting exercise has been completed including revised schedule on PQP, FPP, hospitalization reimbursement scheme, Special Area Allowance, etc.

However, IBA insisted on their proposals on outsourcing to be incorporated in the Settlement to which we did not agree. We have stated that, at the best, some of items which do not affect the normal job/work of the employees can be considered for outsourcing and there cannot be any free hand to outsourcing of permanent and perennial jobs.

While finalizing the duties of Special Pay posts like Single Window Operators, Head Cashiers and Special Assistants, we have informed that additional duties can be considered subject to additional increase in Special Pay and hence their proposals could not be agreed to by us.

These two issues – both are vital issues – need to be sorted out before we can fully complete the drafting of the Settlement.

In the meantime, it has been decided that on 13-4-2010, another round of meeting will be held between IBA and UFBU to finalise the formula for contribution of Rs. 1800 crores to the Pension Fund as already agreed to in the MOU dated 27-11-2009.

After we sort out these important issues as stated above, date would be fixed up for formal signing of the Settlement on wage revision and pension option.

Further developments would be informed to units and members in due course.

With greetings,
Yours comradely,

C.H. VENKATACHALAM
GENERAL SECRETARY

FEED BACK ON 9TH BIPARTITE UNDERSTANDINGS

AIBOC has issued a circular Regarding Bipartite Talks which is reproduced hereunder for information
CIRCULAR NO.45 08.04.2010


FEED BACK ON 9TH BIPARTITE UNDERSTANDINGS

We are receiving a number of SMS and e-mails from our members on the understandings reached with the IBA on 3rd April 2010, as regards distribution of wage load of 17.5% among various components of salary and allowances. In this connection we would like to clarify that,

a) UFBU has agreed to accept 17.5% wage increase w.e.f 01.11.2007, as per MoU signed on 27th November, 2009. The issue cannot be reopened now.
b) The 6th Pay Commission recommendations for wage revision of Central Government employers are effective from 01.01.2006, for a term of 10 years. In case of Bank employees it is for a period of 5 years from 01.11.2007. The distribution of wage load for Central Government employees is not uniform. A meager increase of about 15-20% for lower level officials and higher increase at Secretary Level, with different pay bands is followed for them. Where as in our case we have tried to maintain equidistribution of load factor.
c) In case of Central Government employees, they will first arrive at the proposed revised scales and allowances and there is no restriction as regards cost of wage bill. The entire cost will be debited to the National Ex-chequer of the Government of India.
d) In the case of Bank employees, Government of India first fixes the limit for percentage increase and distribution of the increased load among various components of salary and allowances, is the responsibility of IBA and Unions/Associations.
e) Therefore, it is a herculean task to balance the demands of IBA and the Unions in drawing the revised scales of officers upto scale VII.

f) During the current bipartite the demand of the IBA was to distribute higher load to Officers of SMGS IV and above, whereas we demanded equitable distribution of the load to all scales/grades, as higher load to senior grade officers and above will affect the scales of junior officers.


g) However, keeping in view the higher risk and responsibility of senior executives, we suggested to the IBA to get extra cost over and above 17.5% sanctioned from the Government of India to meet their demand. The IBA did not accept our suggestion and was bent upon loading higher increase in scales of senior executives. We are successful in minimising such higher load.

2. Our members will agree that, the issues being sensitive and the cost involved for higher loading at a senior level officer being barely few crores, breaking the negotiations on this point would have divided our membership. The frustration level at grass root level membership for early settlement is known to everyone. Therefore, Negotiating Committee after due deliberations, has agreed to come to an understanding with IBA on distribution of wage load of 17.5% in salary and allowances. There may be a few aberrations/anomalies as regards revised scales etc., which we will take up with the IBA during our further discussions. There is no hurry in coming to premature conclusions and resorting to vilification campaign to belittle the efforts of the Confederation which may divide the membership. Basic principle of Trade Union is “one for all, and all for one”. We hope our enlightened members will appreciate the genuine constraints faced by the leadership at negotiating table.

3. Comrades, we welcome your constructive feedback, but do not appreciate immature reactions, which affect the unity of the great organisation, AIBOC.

With greetings,
(G.D.NADAF)
GENERAL SECRETARY

IBA-UFBU meeting

TALK WITH IBA YESTERDAY(7-4-2010) AND TODAY.DRAFTING ALMOST OVER.DIFFERENCE PERSISTS ON OUTSOURCING AND SPECIAL PAY DUTIES.IBA UFBU TALKS WILL TAKE PLACE AT 11 AM ON 13TH APRIL 2010 ON FORMULA FOR PENSION CONTRIBUTION TO 1800 CR,Etc.

OVERTIME

STAFF AWARD - PAYMENT OF OVERTIME WAGES INCONNECTION WITH ANNUAL CLOSING OF ACCOUNTS STATE BANK OF TRAVANCORE

As a one time dispensation, it has been decided to pay overtime wages to Award Staff for attending to works relating to Annual Closing of Accounts for a maximum of 15 hours ( 2 hours @100%, 4 hours @170%, 9 hours @200%). Staff members attending to Government business/ collection of taxes in Treasury branches/ branches handling collection of taxes at the year end, may be paid overtime wages up to a maximum of 25 hours (including the aforesaid 15 hours)

Links

• DOWNLOAD OVERTIME WORKSHEET FROM HERE!
  

SPECIAL PAY IN THE PROPOSED SETTLEMENT

SPECIAL PAY IN THE PROPOSED SETTLEMENT

answer some pension related questions

TO ALL OFFICE-BEARERS/STATE FEDERATIONS &
ALL INDIA BANKWISE ORGANISATIONS :

Dear Comrades,
Reg: PENSION

We are getting number of queries about settlement on pension option, how much will be the share of existing employees towards the gap of Rs. 1800 crores, how much the retired employees who opt for pension should repay, date of effect, etc. Units will appreciate that all details will be finalized and informed to our units after the settlement is signed. However, in order to answer some of these repeated questions, we give below the following present position:

1. PENSION OPTION:

IBA has agreed that another option will be given to join the pension scheme for the following:

a) Those who are existing employees now and are in PF.
b) Those who were in PF and in service on the date of Pension Regulation 1995/96 and now want to opt for pension scheme
c) Those who were in PF and in service on the date of Pension Regulation 1995/96 and retired during this period but died subsequently ( family will be given an option now)
d) Those who were in PF and in service on the date of Pension Regulation 1995/96 and died while in service during this period ( family will be given an option now)
e) Those who were in PF and in service on the date of Pension Regulation 1995/96 and have taken voluntary retirement from service.

2. SHARING THE DEFICIT:

Formula is being worked out both for the contribution by the retired employees opting for pension now as well for the existing employees to contribute for the gap of Rs. 1800 crores.

3. PENSION OPTION – EFFECTIVE DATE:

IBA has stated that pension option will be given to all the retired employees as mentioned in 1. b,c,d,e, above and will be effective from the date of settlement i.e. pension will be payable to the retirees from the date of the pension option settlement. UFBU is pursuing the matter for retrospective date.

4. PENSION FOR THE EXISTING PENSION OPTEES WHO HAVE RETIRED FROM
BANKS AFTER 1-11-2007:

For all those employees who are already under pension scheme and who have retired from the Bank service after 1-11-2007, their pension amount and commutation will be revised based on the 9th BPS Pay. Arrears of wage revision will be paid to them from 1-11-2007 till their date of retirement and arrears on account of increase in commutation and monthly pension will be paid from their date of retirement.

Yours comradely, C.H. VENKATACHALAM
GENERAL SECRETARY

FINAL UNDERSTANDINGS!

Today (03-04-2010) morning, as informed earlier, we had another round of talks between our five workmen unions and IBA. In today’s meeting, after detailed discussions, final understandings have been reached on the various service conditions and the chart on distribution of the total increase of Rs. 2577 crores to various heads has been finalised. It has now been decided that the next meeting will take place on 7th April, 2010 when the draft settlement will be taken up for finalisation. It has been further decided that after finalising the draft settlement, the signing of the same should be completed by middle of April, 2010.
Comrades, it is a major step today that we are nearing the final settlement. We urge upon our members to remain patient at this crucial hour as we are aware that many misinformed and misguided individuals are trying to create confusions and disaffection. Remain united, remain alert to keep such attempts at a distance.
Congratulations to all of you,
FINAL UNDERSTANDINGS!
1. Scales of Pay:
Clerical Staff: 6200 – 400 x 3 – 7400 – 500 x3 – 8900 – 600 x 4 – 11300 – 700 x 7 – 16200 – 1300 x 1 – 17500 – 800 x 1 – 18300.
Substaff: 5500 – 200 x 4 – 6300 – 250 x 5 – 7550 – 300 x 4 – 8750 – 350 x 3 – 9800 – 400 x 3 – 11000.
2. Stagnation Increment:
Clerical: 7 stagnation increments (800 x 6 once in 3 years & 800 (7th) after 2 years)
Substaff: 7 stagnation increments (400 x 7 once in 2 years)
Extended Pay Scales: (With Stagnation increment)
Clerical: 6200 – 18000 – 23900.
Substaff: 5500 – 11000 – 13800.
3. DA: 0.15% per slab over 2836 points.
4. HRA:
a) Places over 45 lacs : 10%
b) 12 to 45 lacs : 9%
c) 5 to 12 lacs : 7.5%
d) Below 5 lacs : 7%
5. Transport Allowance: (For Clerks and Substaff)
Upto 15th Stage: Rs. 225 per month
16th Stage and above: Rs. 275 per month
6. Special Pay:
For November, 2007 to April, 2010: Existing Special Pay will be revised and arrears paid.
From May, 2010:
•
Present No Special Pay holders : Rs. 1000/-
•

Present Special Pay holders : Rs. 1500/-
•


Head Cashier II : Rs. 1780/-
•


Special Assistant : Rs. 2180/-
(Note: Out of this, Rs. 1000/- will be added to Basic Pay and balance will continue as Special Pay.)
7. Fixed Personal Pay & PQP
Will be revised based on new basic pay.
8. Hill and Fuel Allowance:
a) Places – 3000 meters and above : 8% maximum Rs. 1295/-
b) 1500 – 3000 meters : 4% maximum Rs. 510/-
c) Over 1000 meters + Mercara : 3% maximum 410
9. Medical Aid: Rs. 2000/- per year
10. Hospitalisation Scheme: Being improved with revised schedule, etc.
11. Part Time Employees: (Lump sum)
(November, 2007 to April, 2010)
Upto 3 hours per week : Rs. 1030/-
3 to 6 hours per week : Rs. 1440/-
From May, 2010 : All will be brought to 1/3rd Scale wages.
12. Halting Allowance: Being increased
13. Washing Allowance: Rs. 100/- per month
14. Cycle Allowance: Rs. 75/- per month
15. Split Duty Allowance: Rs. 125/- per month
16. Project Area Compensatory Allowance:
Group A Centres /Group B Centres
Clerks : Rs. 205/- per month/Rs. 180/- per month
Substaff : Rs. 180/- per month/Rs. 150/- per month
17. Special Area Allowance: Being revised.
18. Reimbursement in Road Travel:
Actual road mileage cost or Rs. 3 per Km whichever is less.
19. Pension:
Another option will be given to all existing employees and those who have retired / died after pension regulation 1995 / 1996.
20. Gratuity:
Will be payable on revised Basic Pay from 1.11.2007
21. Provident Fund: 10% of pay from 1.11.2007
22. Definition of dependence under family: Upto monthly income of Rs. 3500/-
23. Compensation for losses due to breakage or damage to goods on transfer:
With Receipt/ Without Receipt
Clerks: Rs. 1120/- / Rs. 745/-
Substaff: Rs. 745/- / Rs. 560/-
24. Special Leave for Women:
Within the maternity leave entitlement, women employees can avail 45 days special leave for undergoing hysterectomy operation
25. Effective Date: 1st November, 2007"
Improvement in LFC:

Entitlement:

for Clerks - AC 2 Tier
for subordinate staff - AC 3 Tier

Distance:

For subordinate staff
Once in 2 years - 2500 km
Once in 4 years - 5000 km

For clerks
Once in 2 years - 2000 km
Once in 4 years - 4000 km



Following is the details of negotiation as per AIBOA version....
"Higher start of Basic Pay demanded but due to cost constraints, IBA not considered. Basic Pay Rs.14500/- - Rs.52000/-

2. Medical Aid –Rs.5100 / upto Scale III – above Scale III – Rs.6320/-

3. Stagnation Increment for Scale I, II and III – 2 increments

4. Next round of discussion on Residual Issues – 9th & 10th April 2010.

5. On common issues UFBU meeting with IBA on 12.04.2010 for finalizing Pension draft.

6. Settlement will be signed on 15.04.2010"

Some more details about Officers' Package

• Basic Pay Rs.14500/- - Rs.52000/-.
• Medical Aid –Rs.5100 / upto Scale III; Above Scale III – Rs.6320/-
• Stagnation Increment for Scale I, II and III – 2 increments.
• Next round of discussion on Residual Issues – 9th & 10th April 2010.
• On common issues UFBU meeting with IBA on 12.04.2010 for finalizing Pension draft
• Settlement will be signed on 15.04.2010
•
Scales:
JMGS-I - Rs.14, 500/- TO Rs.31, 500/- (including two additional stagnation increments)
MMGS-II - Rs.19, 400/- TO Rs.34, 200/- (including two additional stagnation increments)
MMGS-III - Rs.25, 700/- TO Rs.35, 100/- (including two additional stagnation increments)
SMGS-IV - Rs.30, 600/- TO Rs.36, 200/-
SMGS-V - Rs.36, 200/- TO Rs.40, 400/-
TEG-VI - Rs.42,000/- TO Rs.46,800/-
TEG-VII - Rs.46,800/- TO Rs.52,000/-

DEARNESS ALLOWANCE :- For every 4 points rise/fall in index, Dearness Allowance at 0.15% per slab.
CITY COMPENSATARY ALLOWANCE : We have freezed the existing CCA and utilized the amount towards
improvement in Basic Pay. Accordingly, CCA rates will be as under;

Places in Area I - 4% of Basic Pay, Max. Rs.540/- p.m.
Places with population of more than 5 lacs - 3% of Basic Pay,
Max. Rs.375/- p.m.

HOUSE RENT ALLOWANCE
We have retained the existing rate of HRA as under:
Major A class cities - 8.5%
Other places in Area I - 7.5%
Other places - 6.5%

MEDICAL AID –
For officers other than SBI, the medical aid has been enhanced as;
Scale I to III – Rs. 5100/- p.a.
Scale IV & above - Rs. 6320/- p.a.

STAGNATION INCREMENTS:

It is a fact that majority of senior officers in Scale I to III are stagnated as promotions are linked to vacancies. Hence, we have ensured to add two additional stagnation increments in these scales.

Date of Effect : 1st November 2007.

FOR OFFICERS

9TH BIPARTITE TO CONCLUDEFORMAL SIGNING ON 2ND WEEK OF APRIL
The important ingredients of the working out are as follows:-
SCALESJMGS-I - Rs.14, 500/- TO Rs.31, 500/-@
MMGS-II - Rs.19, 400/- TO Rs.34, 200/-@
MMGS-III - Rs.25, 700/- TO Rs.35, 100/-@
@including two additional stagnation incrementsSMGS-IV - Rs.30, 600/- TO Rs.36, 200/-SMGS-V - Rs.36, 200/- TO Rs.40, 400/-
TEG-VI - Rs.42,000/- TO Rs.46,800/-
TEG-VII - Rs.46,800/- TO Rs.52,000/-
DEARNESS ALLOWANCEFor every 4 points rise/fall in index, Dearness Allowance at 0.15% per slab.CITY COMPENSATARY ALLOWANCEWe have freezed the existing CCA and utilized the amount towards improvement in Basic Pay. Accordingly, CCA rates will be as under; Places in Area I - 4% of Basic Pay, Max. Rs.540/- p.m. Places with population of more than 5 lacs - 3% of Basic Pay, Max. Rs.375/- p.m.
HOUSE RENT ALLOWANCE
We have retained the existing rate of HRA as under:Major A class cities - 8.5%Other places in Area I - 7.5%Other places - 6.5%
MEDICAL AID – For officers other than SBI, the medical aid has been enhanced as; Scale I to III – Rs. 5100/- p.a.Scale IV & above - Rs. 6320/- p.a.
STAGNATION INCREMENTS:It is a fact that majority of senior officers in Scale I to III are stagnated as promotions are linked to vacancies. Hence, we have ensured to add two additional stagnation increments in these scales.Date of Effect : 1st November 2007.The other details will be shared later. We expect that final settlement on salary revision; pension for CPF optees and residual issues will be arrived at during second week of April, 2010.5. Comrades, in the given circumstances; when we secured pension for CPF optees, this is one of the best settlements on salary revision for officers. We are successful in ensuring fair increase in basic pay for all scales/grades and two additional stagnation increment to Scale I to Scale III, which is the unique achievement in the 9th bipartite. The concept of stagnation increment for officers was first time introduced during 1987 and there was no improvement thereafter except adding one more stagnation increment to MMGS III during the period.6. Members are requested not to be guided by any type of rumors and adverse comments. We compliment our members for their tolerance, faith and maturity displayed in standing like a rock behind the Confederation.7. In the meanwhile, the leadership of the Confederation will be meticulously planning to herald the commencement of the Silver Jubilee Celebrations to coincide with the inking of the 9th Bipartite Agreement. The details will be circularised in due course.With revolutionary greetings,(G.D.NADAF)GENERAL SECRETAY.

Final understandings with iba on ഏപ്രില്‍ 3 2010

CIRCULAR NO. 26/57/2010/7 April 3, 2010

TO ALL UNITS & MEMBERS :

Dear comrades,
Ø Talks with IBA today.
Ø Positive Development.
Ø Distribution Chart Finalised.
Ø Settlement to be signed shortly.
Today morning, as informed earlier, we had another round of talks between our five workmen unions and IBA. In today’s meeting, after detailed discussions, final understandings have been reached on the various service conditions and the chart on distribution of the total increase of Rs. 2577 crores to various heads has been finalised. It has now been decided that the next meeting will take place on 7th April, 2010 when the draft settlement will be taken up for finalisation. It has been further decided that after finalising the draft settlement, the signing of the same should be completed by middle of April, 2010.

Comrades, it is a major step today that we are nearing the final settlement. We urge upon our members to remain patient at this crucial hour as we are aware that many misinformed and misguided individuals are trying to create confusions and disaffection. Remain united, remain alert to keep such attempts at a distance.

Congratulations to all of you,

With greetings,
Yours comradely,
(C. H. VENKATACHALAM)
GENERAL SECRETARY

Final understandings!

1. Scales of Pay:

Clerical Staff: 6200 – 400 x 3 – 7400 – 500 x3 – 8900 – 600 x 4 – 11300 – 700 x 7 – 16200 – 1300 x 1 – 17500 – 800 x 1 – 18300.

Substaff: 5500 – 200 x 4 – 6300 – 250 x 5 – 7550 – 300 x 4 – 8750 – 350 x 3 – 9800 – 400 x 3 – 11000.


2. Stagnation Increment:

Clerical: 7 stagnation increments (800 x 6 once in 3 years & 800 (7th) after 2 years)

Substaff: 7 stagnation increments (400 x 7 once in 2 years)

Extended Pay Scales: (With Stagnation increment)

Clerical: 6200 – 18000 – 23900.

Substaff: 5500 – 11000 – 13800.

3. DA: 0.15% per slab over 2836 points.

4. HRA:

a) Places over 45 lacs : 10%
b) 12 to 45 lacs : 9%
c) 5 to 12 lacs : 7.5%
d) Below 5 lacs : 7%

5. Transport Allowance: (For Clerks and Substaff)

Upto 15th Stage: Rs. 225 per month
16th Stage and above: Rs. 275 per month

6. Special Pay:

For November, 2007 to April, 2010: Existing Special Pay will be revised and arrears paid.

From May, 2010:

Present No Special Pay holders : Rs. 1000/-
Present Special Pay holders : Rs. 1500/-
Head Cashier II : Rs. 1780/-
Special Assistant : Rs. 2180/-

(Note: Out of this, Rs. 1000/- will be added to Basic Pay and balance will continue as Special Pay.)

7. Fixed Personal Pay & PQP

Will be revised based on new basic pay.

8. Hill and Fuel Allowance:

a) Places – 3000 meters and above : 8% maximum Rs. 1295/-
b) 1500 – 3000 meters : 4% maximum Rs. 510/-
c) Over 1000 meters + Mercara : 3% maximum 410

9. Medical Aid: Rs. 2000/- per year

10. Hospitalisation Scheme: Being improved with revised schedule, etc.

11. Part Time Employees: (Lump sum)

(November, 2007 to April, 2010)
Upto 3 hours per week : Rs. 1030/-
3 to 6 hours per week : Rs. 1440/-

From May, 2010 : All will be brought to 1/3rd Scale wages.

12. Halting Allowance: Being increased

13. Washing Allowance: Rs. 100/- per month

14. Cycle Allowance: Rs. 75/- per month

15. Split Duty Allowance: Rs. 125/- per month

16. Project Area Compensatory Allowance:

Group A Centres Group B Centres

Clerks : Rs. 205/- per month Rs. 180/- per month
Substaff : Rs. 180/- per month Rs. 150/- per month

17. Special Area Allowance: Being revised.

18. Reimbursement in Road Travel:

Actual road mileage cost or Rs. 3 per Km whichever is less.

19. Pension:

Another option will be given to all existing employees and those who have retired / died after pension regulation 1995 / 1996.

20. Gratuity:

Will be payable on revised Basic Pay from 1.11.2007

21. Provident Fund: 10% of pay from 1.11.2007

22. Definition of dependence under family: Upto monthly income of Rs. 3500/-

23. Compensation for losses due to breakage or damage to goods on transfer:

With Receipt Without Receipt
Clerks: Rs. 1120/- Rs. 745/-
Substaff: Rs. 745/- Rs. 560/-

24. Special Leave for Women:

Within the maternity leave entitlement, women employees can avail 45 days special leave for undergoing hysterectomy operation

25. Effective Date: 1st November, 2007

AIBOBOA

With regard to the above we wish to inform that a meeting between IBA and UFBU was held today from 1.30 pm onwards in the office IBA, Mumbai. Prior to the meeting with IBA, a meeting of UFBU was held at 10.30 am in Mumbai.

In the meeting, the Convener Mr. C. H. Venkatachalam reported to UFBU constituents that there is no forward movement on the three issues viz. Effective date for Pension, Costing of Pension and Pension balancing (which means that a part of 17.5% increase in wages would go to SBI) inspite of various efforts put in by UFBU. The meeting also noted the growing impatience amongst the Bank employees to reach a settlement and the wild rumours in circulation.

In the above background, UFBU met IBA at 1.30 pm to reach a settlement on Pension and Wage Revision. In the detailed discussions that took place on Pension, quite unfortunately, certain problems cropped up on the number of employees who may not opt for pension considering their age, health and other circumstances. UFBU desired that the number under this category may be taken on assumption basis, say 10% and work out the Pension costing thereof. However IBA insisted that they are not for any assumption but for arriving at actual number.

As all are aware, counting the actual number of non-optees would be a time consuming process. Further, to exercise the option, one quite obviously needs to be advised of the terms and conditions of the Pension Scheme, time schedule etc. This will result in further delay, UFBU stated. However IBA insisted on the actual counting. As there was no progress to reach a decision on this issue, it was decided to adjourn the meeting to 3rd April 2010.

On Wage Revision, IBA submitted to the four officers’ organizations revised proposals on pay structure Rs.14500-52000, stagnation increments, various allowance etc. In the preliminary discussions that followed in the meeting of four officers’ organizations, INBOC reiterated its earlier demand that starting basic must be minimum Rs.15,000/- to rectify the injustice caused to junior officers during the last revision and other amendments. The four officers’ organizations shall meet again, reach a consensus on the IBA proposal and take it further in the meeting with IBA on 3rd April 2010. We shall advise the outcome after the meeting.

With greetings,
Yours sincerely,

(K.K.NAIR)
GENERAL SECRETARYAIBOBOAsource aiboboa.org

IBA-UFBU meeting held today (31-03-2010)

UFBU Meeting: A meeting of the UFBU was held today (31-03-2010) morning in Mumbai under the presidentship of Com. L. Balasubramanian (President, NCBE). After detailed discussions, it was decided that all efforts should be taken to sort out the common issues with the IBA and finalise the settlement on wage revision and pension option without any further delay.

Meeting with IBA: Another round of Bipartite Talks were held between IBA and UFBU today (31-03-2010) afternoon. IBA was represented by Mr. Ramakrishnan, Chief Executive and other Executives. Representatives of all our nine Unions were present in his meeting. In today’s discussions we took up the common issues like effective date of pension option, equalizing the cost between PF and Pension components, re-working the cost of pension for the employees/officers now in PF and migrating to pension scheme after option , taking into account the possibility of some employees continuing in PF scheme, retirements taken place from 1-11-2007, etc.

On the issue of equalizing the cost of PF and Pension, IBA did not agree to our earlier proposal and hence it has been agreed that the same would be worked out by balancing the corresponding costs of these two components.

On the effective date of pension option, IBA maintained that while the option would be made available to both existing employees and retired employees, it would be effective from the date of Settlement and not from 1-4-2008 as demanded by us. UFBU would pursue this issue further.

On the issue of re-working the cost of pension as proposed by us, IBA did not agree with our proposals to assume the number of employees who would remain in PF, etc. and rather proposed to go with the actual number after implementation of the pension option instead of going by any assumptions. After discussions amongst the constituents, it was decided not to press this issue further and the IBA was accordingly informed of the same.

Next Meeting: It has been decided that the next round of meeting with IBA will take place on 3rd April, 2010 – with the workmen unions in the forenoon and with officers associations in the afternoon. In this meeting on 3rd April, efforts would be taken to finalise the distribution of the total amount ( Rs. 2577 crores per year for workmen and Rs. 2239 crores per year for officers ) to various heads like Basic Pay, DA, Stagnation Increments, HRA and other allowances, Medical Aid, PF, Gratuity, Pension, etc. based on the discussions held so far with the IBA. All other connected matters would also be sorted out.

After finalsing this distribution chart on 3-4-2010, the date would be fixed up for signing the Settlement on Wage Revision and Pension Option.

HAPPY NEWS FOR SBT !!

CLOSING -OVERTIME 15 HOURS FOR ALL
 TO BE MARKED IN 4 WEEK DAYS;
THOSE WHO ARE DOING OVERTIME ALREADY IN TREASURY& ;OTHER NOTIFIED BRANCHES WILL GET 25 HOURS OVERTIME

AIBEA LETTER TO IBA

“Our attention has been drawn to the instructions given by IBA to the member Banks dated
4-3-2010 wherein the Banks have been advised to seek approval of their Board for:

1) Implementing the New Pension Scheme and

2) Incorporating a clause in the appointment orders of the new recruits / appointees from 1-4-2010 intimating them that they would be governed by a New Pension Scheme.

You will appreciate that the MOU dated 27-11-2009 is yet to be formalized into a full-fledged Settlement where after only the Boards of the respective Banks can adopt the New pension Scheme. When the Settlement has not been signed, it is pre-mature for the Banks to adopt any decision for introduction of the New Pension Scheme. Hence we do not agree that the Banks may now adopt any decision for introduction of the NPS before signing of the Settlement between IBA and unions.

However, since the new recruits from 1-4-2010 would not be covered by PF and existing pension scheme and would be covered by the NPS as agreed in the MOU, it would be sufficient and adequate if the Banks are advised to incorporate a clause in the appointment letters of those being appointed from 1-4-2010 to the effect that they would be governed by a New Pension Scheme being introduced in the Banks w.e.f. 1-4-2010."

We request you to send revised instructions to the Banks as above.

Thanking you,
Yours Faithfully,
Sd..
C.H.VENKATACHALAM
GENERAL SECRETARY

IBA-UFBU meeting today (31-03-2010)

In IBA-UFBU meeting today (31-03-2010),
pension cost and PF-Pension balancing issue have been sorted out.
Next meeting with IBA on 3rd April. 2010.Things are moving towards conclusion!!

Draft settlement

MEMORANDUM OF SETTLEMENT dated _______between the Managements of 43 Banks as represented by the Indian Banks’ Association and their workmen as represented by the All India Bank Employees’ Association, National Confederation of Bank Employees, Bank Employees’ Federation of India, Indian National Bank Employees’ Federation and National Organisation of Bank Workers.
Under Section 2(p) and Section 18(1) of the Industrial Disputes Act, 1947 read with Rule 58 of the Industrial Disputes (Central) Rules, 1957]

SHORT RECITAL OF THE CASE
(A) The Indian Banks’ Association (IBA) on behalf of its member banks named in the Schedule I hereto, signed a settlement dated 2nd June 2005 with the All India Bank Employees’ Association (AIBEA), National Confederation of Bank Employees (NCBE), Bank Employees’ Federation of India (BEFI), Indian National Bank Employees’ Federation (INBEF) and National Organisation of Bank Workers (NOBW) representing the workmen employees of the Banks mentioned in the said Schedule I, inter alia regarding various terms and conditions of their service. The Settlement dated 2nd June 2005 was operational for a period of 5 years from 1st November 2007.
(B) The AIBEA, NCBE, BEFI, INBEF and NOBW (hereafter jointly called the Unions) submitted their Charter of Demands dated 29th October 2007 for revision in wages and other service conditions of workmen to IBA and requested for negotiations on the same, with a view to arriving at an amicable settlement.
(C) Simultaneously, IBA also raised with the Unions, issues on behalf of the managements of banks concerned, to be discussed and settled with a view to improving efficiency of operations in banks.
(D) The parties initially agreed after negotiations that the total quantum of wage increase arising out of a Settlement to be signed in this regard shall be Rs.2,577 crores per annum including the cost of superannuation benefits and accordingly signed and exchanged minutes on 27th November 2009 at Mumbai. It is agreed that for the purpose of this settlement, the additional cost of pension over and above 10% of pay be shared equally shared between the parties and the share of employees so calculated be deducted from the agreed wage increase while revising salary and allowances.
(E) The IBA and the Unions entered into a Memorandum of Understanding on 25th February 2008 on various issues. Extending another option for pensio to those who did not opt for pension when Bank Employees’ Pension Regulations, 1995 were implemented was one of the issues to be considered. After several round of discussions and valuing the liability through an actuarial calculation, it is agreed to extend another option to join the pension scheme to those who did not opt for pension when Bank Employees’ Pension Regulations, 1995 were implemented on the terms and conditions agreed and incorporated in the Settlement dated _________ signed between the parties.
(F) The parties negotiated the aforesaid demands and issues and have reached an agreement as set out herein under in full satisfaction of their demands.
(G) The agreement reached as aforesaid shall amend, modify and supersede the relevant provisions of the Awards and Settlements wherever referred to in this Settlement.
NOW, IT IS HEREBY AGREED AND DECLARED by and between the parties hereto as under:-
TERMS OF THE SETTLEMENT
GENERAL
1. In respect of 50 Banks listed in Schedule 1 to this Memorandum of Settlement, except the State Bank of India, Indian Overseas Bank and Bank of Baroda, the provisions of the Sastry Award as finally modified and enacted by the Industrial Disputes (Banking Companies) Decision Act, 1955, the Industrial Disputes (Banking Companies) Decision Amendment Act, 1957 and the provisions of the Award of the National Industrial Tribunal presided over by Mr. Justice K T Desai in Reference No.1 of 1960 which Award inter alia modifies certain provisions of the Sastry Award (hereinafter referred to as the Awards) as modified by the settlements dated 19th October, 1966, 12th October, 1970, 23rd July, 1971, 8th November, 1973, 1st August, 1979, 31st October, 1979, 21st April, 1980, 8th September, 1983, 17th September, 1984, 5th January, 1987, 10th April, 1989, 29th June, 1990, 16th July, 1991, 29th October, 1993, 14th February, 1995, 14th December, 1996, 28th November, 1997, 27th March 2000, 10th April 2002 and 2nd June 2005 shall continue to govern the service conditions except to the extent the same are modified by this settlement.

2. (i) In respect of State Bank of India, the provisions of the Awards as modified by the Settlements dated 31st March, 1967, 24th February, 1970, 15th September, 1970, 1st August, 1979, 31st October, 1979, 21st April, 1980, 8th September, 1983, 17th September, 1984, 5th January, 1987, 10th April, 1989, 29th June, 1990, 16th July, 1991, 29th October, 1993, 14th February, 1995, 14th December, 1996, 28th November, 1997, 27th March 2000, 10th April 2002, 22nd July 2003 and 2nd June 2005 shall continue to govern the service conditions of the workmen except to the extent the same are modified by this settlement.
(ii) In respect of Bank of Baroda, the provisions of the Awards as further modified by the Settlements dated 23rd December, 1966, 19th December, 1970, 1st August, 1979, 31st October, 1979, 21st April, 1980, 8th September, 1983, 17th September, 1984, 5th January, 1987, 10th April, 1989, 29th June, 1990, 16th July, 1991, 29th October, 1993, 14th February, 1995, 14th December, 1996, 28th November, 1997, 27th March 2000, 10th April 2002 and 2nd June 2005 shall continue to govern the service conditions of the workmen except to the extent the same are modified by this settlement.
(iii) In respect of Indian Overseas Bank, the provisions of the Awards as further modified by the Settlements dated 14th December, 1966, 17th December, 1970, 29th July, 1972, 23rd March, 1973, 1st August, 1979, 31st October, 1979, 21st April, 1980, 8th September, 1983, 17th September, 1984, 5th January, 1987, 10th April, 1989, 29th June, 1990, 16th July, 1991, 29th October, 1993, 14th February, 1995, 14th December, 1996, 28th November, 1997, 27th March 2000, 10th April 2002 and 2nd June 2005 shall continue to govern the service conditions of the workmen except to the extent the same are modified by this settlement.
(iv) In respect of State Bank of India, Bank of Baroda and Indian Overseas Bank, Settlements referred to in Clauses 2(i), (ii), (iii) and (iv) above refer to settlements entered into between State Bank of India, Bank of Baroda and Indian Overseas Bank with the All India State Bank of India Staff Federation, All India Bank of Baroda Employees’ Federation and the All India Overseas Bank Employees’ Union, respectively, representing the workmen of those banks (hereinafter referred to as the said separate settlements).
3. (i) The provisions of the said Awards, the First Bipartite Settlement dated 19th October, 1966 and/or other subsequent settlement(s) including the above mentioned separate settlements hereinafter collectively referred to as said settlements shall stand modified or superseded to the extent and in the manner detailed hereunder.
(ii) Provisions in the aforesaid Awards/Settlements which have not been amended/modified or superseded by this Settlement shall continue to remain in force.
4. Scales of Pay
In supersession of Clause 4 of Bipartite Settlement dated 2nd June 2005, with effect from 1st November, 2007 the scales of pay shall be as under:-
Clerical Staff

6200 400 7400 500 8900 600 11300 700
3 3 4 7
16200 1300 17500 800
1 1
Subordinate Staff

5500 200 6300 250 7550 300 8750 350
4 5 4 3
9800
400
3
5. Dearness Allowance
In substitution of Clause 7 of Bipartite Settlement dated 2nd June 2005 with effect from 1st November 2007, the dearness allowance shall be payable as per the following rates:-
(i) Subordinate Staff
0.15% of ‘pay’
(ii) Clerical Staff
0.15% of ‘pay’
Note:
Dearness Allowance in the above manner shall be paid for every rise or fall of 4 points over 2836 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960=100.
(a) It is clarified that there shall be no ceiling on Dearness Allowance.
(b) Dearness Allowance shall be calculated and paid on Basic Pay, Special Pay, Graduation Pay, Professional Qualification Pay and Officiating Pay, if any, payable under this settlement in respect of both clerical and subordinate staff.
(c) All other existing provisions relating to Dearness Allowance Scheme shall remain unchanged.
8. City Compensatory Allowance
Clause 8 of the Bipartite Settlement dated 2nd June 2005 stands superceded and accordingly no City Compensatory Allowance shall be payable w.e.f. 1st November 2007.

9. House Rent Allowance
In substitution of Clause 9 of the Bipartite Settlement dated 2nd June 2005 with effect from 1st November, 2007 the House Rent Allowance payable shall be as under:
Area Rate as percentage of Pay
[No Minimum/ No Maximum]
(i) Places with population of more than 45 lakhs 9
(ii) Places with population of more than 12 lakhs and State Capitals and Capitals of Union Territories included in (i) above. 8
(iii) Places not covered in (i) and (ii) above. 6.50

Note:
(1) Where quarters are provided, HRA shall not be payable and the rent to be recovered shall be 1% of the first stage of the Scales of Pay.
(2) All other existing provisions relating to House Rent Allowance shall remain unchanged.
10. Transport Allowance
In partial modification of Clause 10 of the Bipartite Settlement dated 2nd June 2005, Transport Allowance shall be paid @Rs.200/- per month with effect from 1st November, 2007.
Note:
(i) All permanent part time employees including those on probation and drawing scale wages shall be paid transport allowance on pro rata basis.
(ii) This provision by itself will not preclude the payment of any existing allowance of this nature paid as a result of Government guidelines/bank level settlements.
11. Special Pay
(1) (i) In supersession of Clause 11 of the Bipartite Settlement dated 2nd June 2005, with effect from 1st November 2007 and upto 30th April 2010, the Special Pay payable to the clerical staff and subordinate staff in banks other than State Bank of India shall be as mentioned under Part-A in Schedule II to this Settlement.

(ii) The duties and responsibilities as improved or retained as they are and attracting Special Pay in banks other than State Bank of India shall be as set out in Schedule III and shall be in partial modification of Schedule III to the Bipartite Settlements dated 17th September 1984, 14th February 1995 and 2nd June 2005.

(iii) Posts attracting Special Pay as listed in Schedule II (Part A) of this Settlement and which do not find a mention in Part B of Schedule II to this Settlement shall stand discontinued. With effect from 1st May 2010, there shall be only three categories of special pay payable to clerical staff w.e.f. 1st May 2010, viz. Special Assistant, Head Cashier – Category II and Single Window Operator ‘B’. The allowance payable to them w.e.f. 1st May 2010 shall be given as mentioned in Part B of Schedule II of this Settlement. Duties which require special skill such as Stenographers etc. shall be assigned to those who possess the required skills.

The Basic Pay of all clerical staff members will be increased by Rs.1000/- p.m. w.e.f. 1st May 2010. All clerical staff members will be liable to perform the duties of Single Window Operator ‘A’ as mentioned in Schedule III of this Settlement in addition to the normal clerical duties as and when required, including those duties which attracted payment of Special Pay hitherto.

(iv) There shall be only 8 types of Special Pay in Subordinate Staff cadre w.e.f. 1st May 2010, viz. Armed Guard, Bill Collector, Daftary, Head Peon, Head Messenger in IOB, Electrician, A/C Plant Operator and Driver. The allowance payable to them w.e.f. 1st May 2010 shall be given as mentioned in Part B of Schedule II of this Settlement. Duties which require special skill such as liftman shall be assigned to those who possess the required skills.

The Basic Pay of all subordinate staff will be increased by Rs.350/- p.m. w.e.f. 1st May 2010. All subordinate staff members will be liable to perform all those duties which attracted payments of special pay hitherto, in addition to the normal duties of subordinate staff .

(v) In all other aspects, the general rules and provisions contained in Chapter V of the Bipartite Settlement dated 19th October 1966 relating to special pay carrying posts, as modified from time-to-time, shall continue to apply.

(vi) Graduation Pay and Professional Qualification Pay payable to the clerical staff in banks shall be as mentioned in Part ‘C’ of Schedule II to this Settlement.

(vii) The special pay, graduation pay and professional qualification pay as mentioned in Schedule II shall rank for superannuation benefits.

(viii) The rates of Special Pay and the duties of Special Pay carrying posts for workmen staff in State Bank of India may be reviewed and settled at the bank level.

(2) In partial modification of Part II of clause 23 of the Bipartite Settlement dated 12th October 1970, a member of the non-subordinate cadre acquiring a Graduate/National Diploma in Commerce or a JAIIB/CAIIB (either or both parts) qualification/s at a time when he/she does not have the requisite number of increments in the scale to be earned as advance increments shall in the first instance be released increments for such qualification/s acquired to the extent available in the scale and in lieu of the remaining increments(s) not available for being so released as advance increments be granted / released the first installment of Graduation Pay or PQP, as the case may be. Release of subsequent installments of Graduation Pay or PQP shall be with reference to the date of release of Graduation Pay or PQP under this clause.

Provided that in the case of an employee acquiring such qualifications after reaching the maximum of the scale of pay, he shall be granted from the date of acquiring such qualification the first installment of Graduation Pay or PQP, as the case may be and the release of subsequent installments of Graduation Pay or PQP shall be with reference to the date of release of Graduation Pay or PQP under this clause.

Provided further that in a case where the employee as on the date of this settlement, has already acquired any of the said qualifications and has not earned any increment or Graduation Pay / Professional Qualification Pay on account of acquiring such qualification, he may be, with effect from 1st November 2007 or the date of acquiring any of the said qualifications, whichever is later, released increment/s or Graduation Pay / PQP as provided herein above.

12. Hill and Fuel Allowance
In partial modification of Clause 12 of the Bipartite Settlement dated 2nd June 2005, the Hill and Fuel Allowance shall be payable at the following rates with effect from 1st November 2007:
a. At places situated at a height of 3000 metres and above 8% of pay
(Max. Rs.1295/-p.m.)
b. At places situated at a height of and over 1500 metres but below 3000 metres 4% of pay
(Max. Rs.510/-p.m.)
c. At places situated at a height of over 1000 metres but less than 1500 metres and Mercara Town 3% of pay
(Max. Rs.410/-p.m.)

Note: All other existing provisions shall remain unchanged.

13. Fixed Personal Pay
In supersession of Clause 13 of the Bipartite Settlement dated 2nd June 2005, the Fixed Personal Pay shall be revised with effect from 1st November 2007 as per Schedule IV.

14. Payment of Overtime Allowance
The overtime allowance paid to the employees for the overtime work performed uptil the date of this settlement shall not be recalculated on account of this Settlement.

15. Provident Fund
There shall be no Provident Fund to employees joining the services of banks on or after 1st April 2010. They shall be covered by a Defined Contributory Retirement Benefit Scheme, where the employee will contribute 10% of Pay plus Dearness Allowance and the bank will make a matching contribution. The Scheme shall be governed by the provisions of the Contributory Pension Scheme introduced for employees of Central Government w.e.f. 1st January 2004.

16. Pension (in Banks other than State Bank of India)
It is agreed between the parties that the terms of the Bank Employees’ Pension Regulations, 1995 shall not apply to the employees who join the services of Banks on or after 1st April 2010; and they shall be covered by a Defined Contributory Retirement Benefit Scheme, which shall be governed by the provision of the Contributory Pension Scheme introduced for employees fo the Central Government w.e.f. 1st January 2004. Necessary amendments to the relevant provisions of the Bank Employees’ Pension Regulations, 1995 shall be carried out following the procedure in this regard.

Further to Clause 6 of the Bipartite Settlement dated 2nd June 2005, it is agreed between the parties as under:
(i) With effect from 1st May 2005, the pension of employees who retired or died while in service during the period 1st April 1998 to 31st October 2002 will be re-fixed based on the definition of ‘Pay’ as defined in Clause 6(ii) of the Bipartite Settlement dated 27th March 2000. No arrears of pension and commuted value of pension will be payable on account of such re-fixing of pension.
(ii) With effect from 1st May 2005, the pension of employees who retired or died while in service during the period 1st November 2002 to 30th April 2005 will be re-fixed based on the definition of ‘Pay’ as defined in Clause 6 of the Bipartite Settlement dated 2nd June 2005. No arrears of pension or commuted value of pension will be payable on account of such re-fixation of pension.

Further to Clause 7(2) of the Bipartite Settlement dated 2nd June 2005, it is agreed between the parties as under:
(i) Those employees who retired or died while in service during the period 1.04.1998 to 31.10.2002, Dearness Relief on Basic Pension or Family Pension or invalid pension or compassionate allowance shall be paid as under for the period 1.04.1998 to 30.04.2005:
Basic Pension or Family Pension or invalid pension or compassionate allowance per month The rate of Dearness Relief payable as a percentage of Basic Pension or Family Pension or invalid pension or compassionate allowance
(i) Upto Rs. 3550 0.24 percent
(ii) Rs.3551 to Rs.5650 0.24% +
0.20% of pension exceeding Rs. 3550
(iii) Rs.5651 to Rs.6010 0.24% +
0.20% of pension exceeding Rs. 3550 – Rs.5650 +
0.12% of pension exceeding Rs.5650
(iv) Above Rs.6010 0.24% +
0.20% of pension exceeding Rs. 3550 – Rs.5650 +
0.12% of pension exceeding Rs.5650 – Rs. 6010 +
0.06% of pension exceeding Rs. 6010


With effect from 1.05.2005, the Dearness Relief payable shall be @ 0.18 percent of the basic pension or family pension or invalid pension or compassionate allowance as the case may be.
(ii) In respect of employees who retired or died while in service on or after 1.05.2005 Dearness Relief shall be payable at 0.18% of the basic pension or family pension or invalid pension or compassionate allowance as the case may be. Dearness Relief in the above manner shall be paid for every rise or fall of 4 points over 2288 points in the quarterly average of the All India Average Consumer Price Index for industrial workers in the series 1960 = 100.
Note:
The Dearness Relief as above shall be payable for the half year commencing from the 1st day of February and ending with 31st day of July on the quarterly average of index figures published for the months October, November and December of the previous year and for the half year commencing from 1st day of August and ending with the 31st day of January on the quarterly average of the index figures published for the months of April, May and June of the same year.

17. Medical Aid
In substitution of Clause 17 of the Bipartite Settlement dated 2nd June 2005, with effect from 1st November 2007, the reimbursement of medical expenses under medical aid scheme shall be restricted to an amount of Rs.2,000/- per annum.

For the year 2007, the reimbursement of medical expenses under the medical aid scheme shall be enhanced proportionately for two months i.e. November and December 2007.

18. Definition of ‘Family’:
The term wholly dependent child/parent shall mean such member of the family having a monthly income not exceeding Rs.2,550/- p.m. [b1]income ceiling for treating as wholly dependent.

19. Hospitalisation
In substitution of Clause 20 of the Bipartite Settlement dated 2nd June 2005, with effect from the date of this Settlement, the reimbursement of hospitalisation expenses shall be as detailed in Schedule V to this Settlement.

20. Part-Time Employees
a) In substitution of Clause 21 of the Bipartite Settlement dated 2nd June 2005, with effect from 1st November 2007, Part-Time employees who are members of the subordinate staff and whose normal working hours per week are as given below shall be paid consolidated wages as under:
a. Upto 3 hours : at bank’s discretion with a minimum of Rs.1,030/- p.m.
b. More than 3 hours but less than 6 hours : at bank’s discretion with minimum of Rs.1,440/- p.m.

21. Compensation for losses due to breakage
or damage to goods on Transfer

In supersession of Clause 22 of Bipartite Settlement dated 2nd June 2005, with effect from 1st May 2010, compensation on transfer, shall be as under:-

a. Where an employee produces receipts or a statement of loss in respect of breakages subject to a maximum of :
Clerical Staff : Rs.1,120/-
Subordinate Staff : Rs.745/-

b. Where no receipts/statement of loss are produced, a lumpsum payment of:
Clerical Staff : Rs.745/-
Subordinate Staff : Rs.560/-

22. Halting Allowance
In modification of clause 23 of the Bipartite Settlement dated 2nd June 2005, with effect from 1st May 2010, halting allowance shall be payable at the following rates for the days spent on duty outside the headquarters:

Higher CCA Centes Lower CCA Centres Non CCA Centres
Clerical Staff Rs.500/- per diem Rs.375/- per diem Rs.300/- per diem
Subordinate Staff Rs.375/- per diem Rs.250/- per diem Rs.185/- per diem

23. Washing Allowance
In supersession of Clause 24 of Bipartite Settlement dated 2nd June 2005, washing allowance shall be payable at Rs.100/- p.m., where the washing of livery is not arranged by the bank.

24. Cycle Allowance
In supersession of clause 25 of Bipartite Settlement dated 2nd June 2005, w.e.f. 1st November 2007, cycle allowance is payable to the members of the subordinate staff who are required to use a cycle on regular assignment for outdoor duties at Rs.75/- p.m. at all centers.

Cycle allowance would not be paid to a workmen member of the subordinate staff entitled to the allowance for the period of leave where such leave exceeds 30 days.

25. Split Duty Allowance
In partial modification of Clause 26 of the Bipartite Settlement dated 2nd June 2005, w.e.f. 1st November 2007, Split Duty Allowance shall be payable at all centers at Rs.125/- p.m.

26. Project Area Compensatory Allowance
In partial modification of Clause 27 of the Bipartite Settlement dated 2nd June 2005, w.e.f. 1st November 2007, workmen in project areas shall be paid a project area compensatory allowance as under :
(i) Project Area Group ‘A’
Clerical Staff – Rs.205/-p.m.
Sub-Staff - Rs.180/- p.m.

(ii) Project Area Group ‘B’
Clerical Staff – Rs.180/- p.m.
Sub-Staff - Rs.150/- p.m.

27. Special Area Allowance

In supersession of all earlier provisions relating to Special Area Allowance, w.e.f. 1st November 2007, Special Area Allowance shall be payable at places specified in column 2 of the Schedule VI hereto, as per the quantum indicated in column 3 thereof against each such place subject to the condition that if at any of the place mentioned in column 2 of 27th March 2000 hereto, Hill and Fuel Allowance is payable in terms of this Settlement, then at such places only higher of the two allowances shall be payable.


28. Reimbursement of expenses on Road Travel
In substitution of Clause 30 of Bipartite Settlement dated 2nd June 2005 w.e.f. the date of this Settlement, where an employee has to travel on duty / LFC between two places not connected or partially connected by rail or steamer, he shall be reimbursed actual road mileage cost or at Rs.3/- per k.m., whichever is less.

29. Outsourcing

In view of the fact that Indian Banks have changed their business processes almost completely by extensive use of technology, almost all banks are presently under Core Banking Solutions and new products are being introduced by banks as compared to conventional banking products, they need to concentrate on their core business activity and outsource others to agencies who can perform the same more effectively with cost efficiency due to the expertise and economy of scale they possess.

The issue was discussed in detail and it is hereby agreed between the parties as follows:

Though it may not be possible to list out extensively all core functions on illustrative list of core functions, based on RBI guidelines in this regard agreed to are as under:

Core Functions

• All Management functions
• Internal Audit
• Compliance functions
• Decision-making functions such as –
- Determining and compliance of KYC norms for opening accounts
- Management of Investment Portfolio
- Sanctioning of all types of loan/advances and other facilities to clients.

The banks may subject to the outsourcing policy approved by their Boards, outsource non-core activities complying with such terms as may be stipulated by the Reserve Bank of India in this regard. An illustrative list of functions that can be outsourced are as under:-

• Concurrent/Risk based Audit/Information system, audit of overseas branch and International Banking Division.
• Concurrent/Revenue/Income Audit, Systems Audit of critical installation.
• Development of software packages/CBS/Internet Banking/ Management and Monitoring of WAN.

• Central Pension and preparation of scrolls.
• Back Office functions/Data Entry Work/Maintenance of Data-base.
• Engagement of Banking/Business Correspondents/ Facilitators for financial inclusion
• Retail Product Selling.
• Recruitment/Promotion Processes.
• Drivers/Electricians/Plumbers/Lift Operators.
• Security Services.
• ATM Card Management/Cash Replenishment/ Cash Vaulting Facility/ FTS (Financial Transaction Switch) operators

• Guarding ATMs.
• First-line Maintenance of ATM Centres.
• Credit Card Application Processing.
• House-keeping/Cleaning/Maintenance.
• Catering and Canteen.
• Due Diligence/Legal Opinion.
• Courier Services.
• Recovery.
• Call Centre Management.

It should be ensured that outsourcing of non-core activities will not result in job loss to the existing workforce. The bank may utilize the services of the staff rendered surplus, if any, in the core activities where banks need more employees for effective performance of the job.

30. Date of Effect and Operation

i. This Settlement shall be binding on the parties for five years from 1st November 2007.
ii. The terms and conditions hereof shall continue to govern and bind the parties even thereafter until the Settlement is terminated by either party giving to the other a statutory notice as prescribed in law for the time being in force.
iii. The AIBEA, NCBE, BEFI, INBEF and NOBW (and BKSM) on behalf of the workmen agree that during the operation of this Settlement the workmen will not for any reason whatsoever, raise any demand of any nature whatsoever on any of the banks in respect of matters, monetary or otherwise, covered by this Memorandum of Settlement.
iv. Copies of the Memorandum of Settlement will be jointly forwarded by the parties to the authorities listed in Rule 58 of the Industrial Disputes (Central) Rules, 1957 so that terms and conditions thereof are binding on the parties as provided in law.

31. Interpretation


If there is any difference of opinion regarding interpretation of any of the provision of this Settlement the matter will be taken up only at the level of the Indian Banks’ Association, the All India Bank Employees’ Association, the National Confederation of Bank Employees, the Bank Employees’ Federation of India, the Indian National Bank Employees Federation and the National Organisation of Bank Workers, (and BKSM) for discussion and settlement.


CC TO: 1. Assistant Labour Commissioner (Central)
2. Regional Labour Commissioner (Central)
3. Chief Labour Commissioner (Central), New Delhi
4. The Secretary to the Government of India,
Ministry of Labour, New Delhi.

________________________________________
SCHEDULE - I
LIST OF BANKS TO BIPARTITE SETTLEMENT

1. Allahabad Bank
2. Andhra Bank
3. Bank of Baroda
4. Bank of India
5. Bank of Maharashtra
6. Canara Bank
7. Central Bank of India
8. Corporation Bank
9. Dena Bank
10. Indian Bank
11. Indian Overseas Bank
12. Oriental Bank of Commerce
13. Punjab & Sind Bank
14. Punjab National Bank
15. Syndicate Bank
16. UCO Bank
17. Union Bank of India
18. United Bank of India
19. Vijaya Bank
20. State Bank of India
21. State Bank of Bikaner & Jaipur
22. State Bank of Hyderabad
23. State Bank of Indore
24. State Bank of Mysore
25. State Bank of Patiala
26. State Bank of Travancore
27. Bank of Rajasthan Ltd.
28. The Dhanalakshmi Bank Ltd.
29. The Federal Bank Ltd.
30. ING Vysya Bank Ltd
31. The Jammu & Kashmir Bank Ltd.
32. The Karnataka Bank Ltd.
33. The Karur Vysya Bank Ltd.
34. The Lakshmi Vilas Bank Ltd.
35. The Nainital Bank Ltd.
36. The Ratnakar Bank Ltd.
37. The South Indian Bank Ltd.
38. Bank of America N.A.
39. The Bank of Tokyo-Mitsubishi UFJ, Ltd.
40. BNP Paribas
41. The Hongkong & Shanghai Banking Corporation Ltd.
42. Sonali Bank
43. Standard Chartered Bank



________________________________________

SCHEDULE - II
SPECIAL PAY
PART A
For Clerical Staff (upto 30.4.2010)
Sr.No. Post Amount of Special Pay (Rs.)
1. RelievingTelephone Operator 110
2. Telephone Operator 210
3. Audit Clerk - Category "A" 360
4. Audit Clerk - Category "B" 670
5. Comptist 420
6. Agricultural Assistant 510
7. Telex Operator 530
8. Punch Card Operator 580
9. Assistant Head Cashier Units of 4 clerks & below 450
10. Assistant Head Cashier Unit of 5 Clerk & above 650
11. Teller - Category A 690
12. Cashier in Charge of Cash in Pay Officers 690
13. Head Cashier - Cat. A - Units of 4 clerks & below 690
14. Head Cashier - Cat. A - Units of 5 clerks & above 910
15. Head Cashier - Cat. B - Units of 4 clerks & below 820
16. Head Cashier - Cat. B - Units of 5 clerks & above 1020
17. Encoder Operator 740
18. Data Entry Operator 860
19. Accounting Machine Operator 910
20. IBM/ICT Machine Operator 1020
21. Stenographer 1020
22. Head Clerk 1020
23. ALPM Operator 1060
24. Teller 1150
25. Head Cashier Category C 1150
26. Computer Operator - A 1250
27. Head Cashier Category I 1270
28. Computer Operator - B (with passing powers) 1500
29. Head Cashier Category II 1780
30. Special Assistant 2180



For Subordinate Staff (upto 30.4.2010)
Sr.No. Post Amount of Special Pay (Rs.)
1. Relieving Liftman 210
2. Cyclostyle Operator 280
3. Liftman 350
4. Cash Peon 350
5. Watchman 350
6. Armed Guard 590
7. Bill Collector 590
8. Daftary 690
9. Head Peon 800
10. Head Messenger in IOB 1350
11. Electrician 1600
12. A/C Plant Operator 1600
13. Driver 1800



SPECIAL PAY

PART B
For Clerical Staff (w.e.f. 1.5.2010)
Sr.No. Post Amount of Special Pay
(Rs.)
1. Head Cashier - II 780
2. Special Assistant 1180
3. Single Window Operator ‘B’ 500






For Subordinate Staff (w.e.f. 1.5.2010)
Sr.No. Post Amount of Special Pay
(Rs.)
1. Armed Guard 240
2. Bill Collector 240
3. Daftary 340
4. Head Peon 450
5. Electrician 1250
6. AC Plant Operator 1250
7. Driver 1450
8. Head Messenger in IOB 1000





PART C
GRADUATION PAY/ PROFESSIONAL QUALIFICATION PAY

For those workmen who hereafter reach or have already reached 20th stage of the scale and have got increments in consideration of educational qualification(s), Graduation Pay/ Professional Qualification Pay shall be payable as under:

1. Those who are graduates and/or NDC -
Rs.250/- p.m. after they complete 1 year
Rs.490/- p.m. after they complete 2 years

2. Those who have passed JAIIB or Part I of CAIB/CAIIB-
Rs.250/- p.m. after they complete 1 year

3. Those who have passed JAIIB and CAIIB or Both Parts of CAIB/CAIIB -
Rs.250/- p.m. after they complete 1 year
Rs.490/- p.m. after they complete 2 years
Rs.740/- p.m. after they complete 3 years

4. Those who are graduates/NDC and have passed JAIIB or Part I of CAIB/CAIIB -Rs.250/- p.m. after they complete 1 year
Rs.490/- p.m. after they complete 2 years
Rs.740/- p.m. after they complete 3 years

5. Those who are graduates/NDC and have passed JAIIB or Both Parts of CAIB/CAIIB -
Rs.250/- p.m. after they complete 1 year
Rs.490/- p.m. after they complete 2 years
Rs.740/- p.m. after they complete 3 years
Rs.990/- p.m. after they complete 4 years
Rs.1230/- p.m. after they complete 5 years.

Note: Refer to Clause 11(2) of this Settlement.

________________________________________
SCHEDULE - III
SPECIAL PAY DUTIES

The Special pay duties do not include the routine duties of the cadre (clerical / subordinate) which a workman has to normally perform; but merely refer to those special allowance duties which if performed in addition to the routine duties will entitle a workman to a special pay on the terms and conditions provided in Chapter V of the First Bipartite Settlement as modified.

For removal of doubts it is clarified that the workman entrusted with duties attracting special pay can be required to perform routine duties of his cadre and that the following duties shall inter alia form part of the normal duties of the clerical cadre and for performance of those duties no special pay shall be payable :

(i) Acknowledgements of inward mail received.
(ii) Receipt of cheques, drafts, dividend warrants, pay orders and other like instruments other than bills and giving acknowledgements in the counterfoil.
(iii) Delivery of cheque books subject to authorisation by competent authority.
(iv) Issue of cash receipts.
(v) Issue of E.S.I. stamps wherever applicable or may become applicable.
(vi) Recounting of currency notes by cash department staff.
(vii) Ensuring the proper contents in covers and envelopes including registered ones before dispatch.





DUTIES OF SPECIAL PAY CARRYING POSTS IN CLERICAL CADRE

1) Single Window Operator ‘A’

Single Window Operator ‘A’ will perform all duties and functions of clerical cadre, either online or manually, which does not involve any passing or supervisory function of an officer of the bank. He will, wherever and whenever required, function as a single window operator where he will also receive and pay cash.

In addition, their duties will include –

a. Passing and cash payment of all cheques/withdrawal forms/bankers’ cheques/gift cheques, etc. upto and including Rs.20,000/-

b. Passing independently clearing and transfer cheques, vouchers, etc. (whether credits or debits) upto and including Rs.25,000/-

c. Receipts of cash and issuance of pre-signed drafts / gift cheques / travellers’ cheques / pay orders / bank orders, etc. upto and including Rs.25,000/-

2) Single Window Operator ‘B’

Single Window Operator ‘B’ will perform all duties and functions of clerical cadre, either online or manually, which does not involve any passing or supervisory function of an officer of the bank. He will, wherever and whenever required, function as a single window operator where he will also receive and pay cash.


In addition, their duties will include–
a. Passing and cash payment of all chequest/withdrawal forms/bankers’ cheques/ gift cheques, etc. upto and including Rs.40,000/-.
b. Passing independently clearing and transfer cheques, vouchers etc. (whether credits or debits) upto and including Rs.50,000/-
c. Receipts of cash and issuance of pre-signed drafts/gift cheques/ travellers’cheques/pay orders/bank orders, etc. upto and including Rs.50,000/-.

3) Head Cashier II
Their duties involve :
1. Holding the bank’s cash, key and/or other valuables in safe custody jointly with an officer and being accountable for them and being responsible for the running of the cash department;
2. Opinion compilation;
3. Verification of vernacular signatures/endorsements;
4. Countersigning cheques and/or drafts (on selves or correspondents), payment orders, deposit receipts, etc.
5. Attending to Government Treasury work;
6. Discharging/endorsing bills, cheques etc;
7. Being in charge of clearing and godown departments, etc;
8. Passing independently clearing and transfer cheques, vouchers, etc. (whether credits or debits) upto and including Rs.1,00,000/- and cash, cheques and vouchers upto and including Rs.50,000/- They will also pass cash, cheques, vouchers etc. above Rs.50,000/- and clearing and transfer cheques, vouchers etc. above Rs.1,00,000/- jointly with another authorized person.

4) Special Assistants

Special Assistants will be accountable and responsible for running of the department/section under them and their duties will involve looking after and checking the work of other clerk or clerks and sub-staff and will include:
1) Passing independently, manually or online, cash instruments upto Rs.1,00,000/- and clearing and transfer cheques vouchers etc., (whether credits or debits) upto and including Rs.3,00,000/-. They shall also pass cash, cheques, vouchers etc. and above Rs.3,00,000/- jointly with another authorized person. Passing will include verification of signatures and scrutiny as to the correctness of endorsements on and other particulars of such instruments. There shall be no limits for verification of signatures, passing of authenticated credit vouchers/entries and for verifying authenticated vouchers in the ledges, books, computer printouts etc.
2) Accept, verify and post cash/transfer/clearing cheques and other instruments, as the case may be, in appropriate books of accounts/ledgers, either manually or online, and give due acknowledgements.
3) Signing vouchers, cheques, drafts, mail transfers, pay order, advices such as non payment advices, inter branch fate calling advices, bill schedules, demand notices, statements, certificates etc.
4) Checking all vouchers, advices, statements, cheques, drafts etc., bills and books of accounts including current savings and other ledgers, cash, postal and revenue stamps, franking machine balances, exchange, discount, brokerage calculations and initialing by way of authenticating them for accuracy/correctness;
5) Checking, manually or online; current, savings and other accounts;
6) Checking the coding and decoding of telegrams (excluding check symbols or ciphers);
7) Discharging, endorsing cheques, bills, etc.;
8) Perform, when required in a computerized set up, system control functions, either jointly with an officer or independently, upon specific authorization in this regard;
9) Briefly explain, the features of Bank’s various products and services to customers, to reply their queries and to refer interested customers to appropriate personnel;
10) Inspecting godown (only in banks where such work is already being done by workmen).

For the purpose of efficient and effective functioning of the section or department the special assistant shall ensure that all acts, things and steps necessary therefore are taken by himself or by the clerks placed under him and shall ensure that, wherever necessary;
a) Reminders are sent on time and followed up.
b) Pass sheets/books are filled up and issued promptly.
c) Deposits are renewed on due dates or reminders sent to the parties.
d) Standing instructions are complied with.
e) Bills are accepted and due dates diarised/advised and followed up.
f) Interest, commissions and service charges are collected.
g) Proceeds of bills are received or remitted promptly.
h) Confirmation of balance of accounts of the customers and its follow up.
i) All securities relating to the department/selection of which the special assistant is in charge are secured and/or kept in proper custody and properly handed to the authorised person at the close of the day.
j) Balances promptly taken, tallied and reported and followed up and also returns submitted.
k) Advices and/or duplicate advices/summaries are issued/responded promptly, whenever called for.
l) Checking the proper recording of entries and all relevant particulars in regard to accounts opened under due authorization.

Notes:-
(ii) In respect of the above special pay carrying posts in clerical cadre –
• Countersigning would mean signing in a manner whereby the primary responsibility for ensuring that all the formalities are complete rests with the other signatory.
• Checking/ verifying would mean verifying that the instrument/material checked is in order in all respects and also includes verification of signature irrespective of the amount of the instrument and authenticating the same on the instrument /material, initialing the relative entries in the respective books of accounts, manually and/or online.
• Passing includes verification of signatures and scrutiny as to the correctness of endorsement on and other particulars of such instruments. It will also include checking and authenticating the relative entries in the respective books of accounts/ ledgers/ computer sheets and/or online.

(ii) Henceforth, selection of staff for being entrusted with special pay carrying posts shall be on the basis of their suitability for the specialized function, norms for which shall be decided at the bank level.

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DUTIES OF SPECIAL PAY CARRYING POSITIONS IN SUBORDINATE CADRE


POST DUTIES
Armed Guard Persons required to perform watch and ward duties i.e. to watch or look after the premises or department for the purposes of its safety, security and guard against attack or assault or infiltration and against removal of the bank’s property by any unauthorized persons AND/OR to watch and guard as above the movement of cash from one place to another whether inside or outside the Bank, for which purpose they are required by the bank to carry any of the following weapons:

i) Gun, Pistol or any other fire arm; or

ii) Dagger, sword, khukri or spear; or

iii)any other licensed weapon

Note: ‘Retainers’ Peons (other than watchmen) whose names are registered in the Bank’s licence as Retainers will, when they perform “Armed Guard” duties, be entitled to special pay for “Armed Guards” pro rata.
Daftary Their work involves :

1. Obtaining acceptance of bills of exchange, hundies etc., drawn on local parties or banks and / or collecting payments thereof.

2) Collecting payments for cheques or postal order etc., from banks or post office counters.

They may also be required to collect cash not exceeding Rs.5,000/- at a time against various instruments.

3) Simple binding of books and registers;

4) Press copying;

5) Filing independently letters and other papers in respect files as per indications marked thereon;

6) Assisting in issuing stationery;

7) Stacking under guidance old records in orderly manner and assisting in giving them out when required; and

8) Undertaking the whole process of sorting, arranging, numbering, tallying the total number or stitching the vouchers
Head Peon Persons required to assist in supervision of various matters pertaining to subordinate staff like:

i) Cleanliness of the office premises;
ii) Cleanliness of uniforms;
iii) Leave arrangements;
iv) Arrangements for safekeeping of keys; and
v) Distribution of duties amongst the subordinate staff
Air-Conditioning Plant Helper Semi skilled persons who under the supervision of the technician attend to routine maintenance of and minor repairs to air conditioning plants.
Electrician Their work involves carrying out semi-skilled electrical work like routine maintenance of electrical equipments, effecting minor repairs to electrical fixtures and appliances.
Drivers Persons required to drive, maintain and effect minor repairs (not requiring a technician’s skill) to motor cars, motor vans, station wagons, scooters, motor cycles or other motor vehicles.
Head Messenger in IOB

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SCHEDULE - IV
FIXED PERSONAL PAY
Area of Posting Total FPP payable where bank’s accommodation
is not provided Total FPP payable where bank’s accommodation is provided Increment Component of FPP
(1) (2) (3) (4)
CLERICAL STAFF
(i) Places with population of more than 45 lakhs. 935 885 800
(ii) Places with population of more than 12 lakhs upto 45 lakhs and State Capitals and Capitals of Union Territories 935 875 800
(iii) Other places 935 865 800
SUBORDINATE STAFF
(i) Places with population of more than 45 lakhs. 470 440 400

(ii) Places with population of more than 12 lakhs upto 45 lakhs and State Capitals and Capitals of Union Territories 465 435 400
(iii) Places with population of 2 lakhs and over [other than (i) above] and State Capitals and Capitals of Union Territories 460 435 400


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SCHEDULE FOR REIMBURSEMENT OF HOSPITALISATION EXPENSES