Arun Jaitley asks bank employee unions to withdraw strike call-LiveMint 22.02.2015
Jaitley says banks are already in negotiations with their unions and associations for wage settlement
New Delhi: Union Finance minister Arun Jaitley on Saturday appealed to bank employee unions to call off their proposed four-day nationwide strike from 25 February as talks are on for a revision of wages of employees.
The finance minister said banks are already in negotiations with their unions and associations for wage settlement and “the bipartite negotiations in a cordial manner is the only available tool for settlement”.
Public sector bank employee unions have given a call to go on a country-wide strike from 25 February to press for their wage-related demands.
In a statement, Jaitley appealed to all employees of public sector banks and their unions and associations not to resort to agitation approach by participating in a strike and “call off the call for strike”. He said participating in the proposed strike is neither desirable nor affordable in the interest of the nation.
Earlier, United Forum of Bank Unions (UFBU) convener M.V. Murali had said banks already had incorporated wage increase of 15% into their accounting but their offering is 13% only. “This is not acceptable to employees who have been fulfilling all obligations, including making Pradhan Mantri Jan Dhan Yojana a runaway success. This was accepted by the Prime Minister. Therefore, we have decided to stick to our strike call till our demands are met,” Murali had said.
Ashwini Rana, general secretary of National Organisation of Bank Workers, said bank employee unions have unanimously decided to go on a four-day strike from 25 February. Many banks, including Bank of Baroda and Corporation Bank have already informed about the likely inconvenience to customers if strike materializes.
PSU Bank Unions Warn of 4-Day Nation-Wide Strike-NDTV
New Delhi: Public sector bank employee unions have warned of going on a four-day nation-wide strike beginning February 25 to press for wage-related demands.
"Banks have been providing for a 15 per cent wage hike since November 2012. Thus, banks already have incorporated wage increase of 15 per cent into their accounting but their offering is 13 per cent only."
"This is not acceptable to employees who have been fulfilling all obligations including making Pradhan Mantri Jan Dhan Yojana a runaway success. This was accepted by the Prime Minister. Therefore, we have decided to stick to our strike call till our demands are met," United Forum of Bank Unions (UFBU) convener M V Murali told PTI.
Ashwini Rana, general secretary of National Organisation of Bank Workers, said bank employee unions have unanimously decided to go on a four-day strike from February 25 to 28.
Many banks including Bank of Baroda and Corporation Bank have already informed about the likely inconvenience to customers if the strike materialises.
In a filing to the BSE, Corporation Bank said it has received a notice from the convener of UFBU consisting of nine National level unions - AIBEA, NCBE, BEFI, INBEF, NOBW, AIBOC, AIBOA, INBOC and NOBO - informing the decision to go on for a four-day nation-wide strike from February 25 to 28 in support of their demands.
"A major section of the Bank's employees/officers belonging to the workmen unions/officers' association having allegiance to the above national level unions/organisations, may take part in the proposed 4 days strike from February 25, 2015 to February 28, 2015 and indefinite strike from March 16, 2015, if the strike materialises."
"In view of the above, it is likely that the normal functioning of our Branches and offices may get affected during the days the union has given the strike call," it said.
Earlier this month, Indian Banks' Association (IBA) had bettered its offer from 12.5 per cent to 13 per cent against unions' demand of 19 per cent hike in wages.
"On suggestion of Chief Labour Commissioner, IBA agreed to hold negotiations with UFBU on February 23. In the meantime strike stands," All India Bank Employees Association general secretary C H Venkatachalam said.
If strike happens it would impact government fund transfer during the time of Budget.
The Budget session of Parliament is scheduled to start from February 23.
Wage revision of public sector bank employees has been due since November 2012.
Earlier, unions had deferred one-day strike scheduled for January 7 as IBA improved the wage hike offer to 12.5 per cent from 11 per cent earlier.
Following this, unions also deferred the proposed four-day strike from January 21 after the management of banks (IBA) assured that wage-related issues would be resolved by early February.
To press for their demand, the bank unions had gone on four-day rotational strike between December 2 and December 5.
There are 27 public sector banks in the country with a combined employee strength of about 8 lakh. There are about 50,000 branches of these lenders across the country
Sri Kamlesh Chaturvediwrites on Faceboook
Our Finance Minister Sri Arun Jaitly has made appealed to us not to resort to agitation approach y joining bank strike. He has informed us that Banks are already in negotiations with our Unions and Associations for wage settlement. He has told us that Bipartite negotiations in cordial manner is only available tool for settlement. He has appealed to call off the Strike in the interest of nation.
Respected Jaitly ji, are you not aware that the only tool referred by you is bein...g used since long. Our Wage Settlement is due since November 1st, 2012. Sir are you aware that a Clerk in Bank gets lesser Salary than Peon of your Government and that a Bank Officer gets less Salary than Clerk of your Government?
We think that while making an appeal you must have referred this truth in your press statement and at least you must have assured that your Government is keen to remove this disparity.
Public sector banks have lost lacs of crore of rupees in bad debts and are going to lose more in near future. To Compensate loss caused by bad debts , Modi Sarkar has prescribed various austerity measures to curtail operational expenses of public sector banks. Management of banks in turn has taken various steps to reduce expenditure.
They have planned to save money by curtailing expenditure on newspapers, on electricity charges, on expenses incurred in conducting meetings etc. There is a proverb in Hindi "Gau Markar Juta Dan" (kill cows and donate shoes).
However it is easy to preach sermons but difficult to practise. I do not believe that top officials of bank management will really stop wasting crores of rupees in organising various meetings in 5 star hotels , avoidable visits to towns and cities, avoidable foreign trips , offering red carpet welcome to VIPs etc. It is possible that they will manage all these expenses through their clients. They have killed several cows, still they will not donate even shoes. They may manage shoes also from their customers even if it required indirect loss to bank in future .
Because this culture of exchange of gits and overspending have been inherited by them from none other than politicians and other VIP officials. I doubt they will stop spending crores of rupees on gifts distributed every now and then to get business and various favours. If somehow or the other their greed of getting gifts in cash or in kind is brought to ZERO , banks may gain in many parameters.
Mr. Narendra Modi and Ministry of Finance had in the month of June 14 issued guidelines advising bankers to refrain from distributing gifts to officials of Ministries on Puja occasions. But I think they have all forgot or wilfully ignored the said guidelines.
Modi may start good culture from his office. He may punish both, one who offers gifts and one who accept it. If he gets success in his office .the same culture will percolate down. If he wants real cut in expenditure, he will have to issue guidelines which will be uniformly applicable to all employees,all netas and all others. And finally he will have to ensure full compliance of good policy he like to adopt.
Only bankers cannot be expected to follow impractical suggestions. Bankers have to live in Rome and do what Romans do. When workers of all department of central government and that of state government work only on the basis of gifts and bribe only, how can bank afford survive in such system.
Drastic change in work culture may not change until approach and attitude of ministers, top officials and VIP changes.
When recruitment ,posting and promotion depends on flattery and bribery , one cannot dream of corruption free system or any reduction in corrupt practices including overspending .
Let us be positive however.
Public banks take lead in government's austerity drive-DNA-21.02.2015
The public sector banks are on a strict austerity drive, thanks to the finance ministry directive asking them to bring down expenditure.
As part of belt-tightening measures, the PSU banks are staying away from 5-star hotels, cutting down on telephone bills, and rationalising on branch expansions and ATMs so that the operating expenses are down and their margins are not eaten away by the pile-up of bad debt.
And, what more?
State Bank of India (SBI) has now got glow signs with automatic timers so that lights on office premises can turn off when not required. Andhra Bank chairman travels only by budget airlines as a matter of policy. Overseas travels are cut down by half and meetings generally have to be held in head office; but only when parliament is in session banks can call meetings in Delhi so that ministry officials can participate.
Several banks have also put overseas expansions on hold.
Arundhati Bhattacharya, chairman, State Bank of India, told dna, "Our operating expenses are growing at the rate of 3-7%, down from a 20% year-on-year growth in expenses. ATM and branch rationalisation are some of the measures that the bank is already putting in ever since I took over a year and a half back."
SBI did not open any ATMs in the last one year while many have been outsourced. The largest bank in the country has also merged some of its existing branches. In 2014, 909 branches were set up but this was after shutting down branches in some locations or relocating some to rationalise the operations.
During last quarter, banks stayed away from 5-star hotels in the city in favour of suburban locations. Central Bank of India held their financial results news conference at their training college in Vile Parle. The usual venue for the bank used to be Trident in Nariman Point, next to its corporate head office at Chandramukhi building. Andhra Bank also chose to hold its news conference at YB Chawan Centre, leaving its usual venue at the Taj Colaba.
CVR Rajendran, chairman and managing director, Andhra Bank, told dna, "As a matter of policy, I only travel by budget airlines. So the executive class and business class does not impact me."
Vijayalaksmi Iyer, chairman and managing director, Bank of India, told dna, "We have shifted 265 ATMs to areas where there is more traffic and branches rationalisation is also part of our austerity drive. We are also rationalising cash in the ATMs. Earlier, expenses on cash management formed 3-4% of the total ATM maintenance cost, which has now come down to 0.5%."
Finance ministry officials too are regularly holding video conferences with bank officials and avoiding travel.
With higher bad loans on their books, banks hope that bringing down the operating expenses will help them to stay profitable.
Reserve bank chief Rajan favours punishing black money holders-DNA
Reserve Bank Governor Raghuram Rajan today favoured punishing black money holders by streamlining laws that should be enforced better.
Terming the black money issue as "sensitive" he said what is important is ensuring that conditions are such that people don't misuse the rules and regulations and don't have the incentive to park money outside.
"We also have to ensure that if somebody is hiding, why only outside, even internally there is a lot more black money, we punish him and enforce the regulations, and laws. For this we need to streamline laws, so that we enforce them better."
Stating that the best way to prevent law breaking is to reduce the incentive to do that, Rajan said, "Do not have 99% levels of taxation.
"For the last few decades, we have brought down our levels of taxes so much that nobody has a right to evade those taxes. Those taxes are sensible, reasonable and if they evade it, they are making mockery of the tax system."
His comments assume significance as they come ahead of Budget which will be presented on February 28.
"Let people pay, but if they don't pay, go after them. That message has to get out. People have to know if they evade, they will be penalised. We need to strengthen the tax administration as part of the government," Rajan said.
About the economic reforms, he said "so long as we are able to modulate the pace of liberalisation, people will be with us".
He also underlined the need for economic inclusion that arrives with quality of education, nutrition, healthcare, finance. A job is very important and government has to prepare the people for it by giving the right policies, he added.
Disapproving the inheritance tax, he said focus should on bringing people up rather than bringing down those who are well-off. Also, there will be no incentive for wealth creation if such a tax was introduced, he said.
On the education loans, which have seen a lot of stress of late, Rajan said there is a need for a better student loan scheme to curtail NPAs.
http://www.dnaindia.com/money/report-public-banks-take-lead-in-government-s-austerity-drive-2062768