CIRCULAR LETTER No. 27/181/2016/14 24-3-2016
Dear Comrades,
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AIBEA’s MEMORANDUM TO FINANCE MINISTER ON THE PROBLEMS IN ASSOCIATE BANKS
As informed in our Circular Letter No. 180/13 dated 23-3-2016, a delegation from AIBEA met the Hon. Finance Minister Shri Arun Jaitley yesterday in his office in Delhi when the issues that we are facing in the Associate Banks were taken up with him for amicable solution. We furnish herein the text of the memorandum submitted to the Finance Minister on this occasion for the information of our units and members. The FM went through the memorandum in full and we also supplemented the same with our explanations and details. The FM assured to address the issues suitably. Further developments in this regard will be informed to units in due course.
With greetings,
Yours Comradely,
ALL INDIA BANK EMPLOYEES' ASSOCIATION
23rd March, 2016
Issues in Associate Banks of SBI :
We are immensely thankful to you for having given us an audience amidst your very busy schedule and submit the following for your kind consideration and intervention.
Employees of Associate Banks numbering more than 50,000 are deeply agitated over certain vital issues that are remaining unresolved despite there being Government of India directives, guidelines besides bilateral Agreements.
1. Compassionate Ground Appointments:
It was in 2004, the then UPA Government abruptly put an end to the Compassionate Ground Appointment Scheme in Banks. After prolonged agitation and discussions with the Indian Banks’ Association, a revised Compassionate Ground Appointments Scheme on the lines of Central Government scheme was finalised by the IBA and Unions.
This scheme was approved by your goodselves for implementation in all the public sector banks from 5-8-2014.
Based on your approval, Ministry of Finance informed IBA that Government have approved the proposal
(i)
To open the Compassionate Appointment in PSBs on the lines of Central Government and
(ii) Discontinuing the earlier provision of ex-gratia in lieu of Compassionate Appointment in PSBs.
Government advised all PSBs to place the Scheme before the Boards of all PSBS and get it approved for implementation. IBA vide their Circular dated 14-8-2014 sent the detailed Scheme to all PSBs.
We are immensely thankful to you for this great humane approach in re-introducing Compassionate Appointment Scheme in Public Sector Banks.
However, this Government/IBA approved Scheme has not been placed before the Board in the Associate Banks, presumably at the behest of State Bank of India.
On the other hand, despite the protest of our Unions, a different scheme denying compassionate appointment and providing for fixed Ex-Gratia amount has been introduced by the Associate Banks as has been done in SBI.
Since Associate Banks are all Public Sector Banks, the Government approved Scheme should have been introduced. It is unfortunate that the Associate Banks have not cared to implement a Scheme approved by the Union Minister of Finance, Govt. of India.
A large number of eligible dependents of deceased Employees, who felt relieved consequent to the Government clearing the Compassionate Appointment Scheme and eagerly awaiting the same, have been denied justice.
We seek your intervention for implementation of the Govt. of India approved Compassionate Appointment Scheme in all Associate Banks.
2. Staff Housing Loan:
The matter regarding improvement in Staff Housing Loan was taken up with the Ministry of Finance, Government of India by IBA.
The Ministry of Finance, after examining the matter, conveyed their concurrence on 11.08.2014 with the observation that PSBs may decide the matter related to Staff Housing Loan Policy with the approval of its Board.
This approval was circularised to all banks vide IBA Circular dated 12.08.2014. Staff Housing Loan limits have since been increased in all Nationalised Banks.
Housing Loan limit has been improved upon for the Officers and employees in State Bank of India.
Housing loan limit has been improved upon in the Associate Banks for the officers but not for the Award staff.
In 5 the Associate Banks alone, the housing loan limit for the employees continues at the old limits of Rs. 8 lacs and Rs. 12 lacs for Class IV and Class III employees.
This is totally unjust and discriminatory.
We request your urgent intervention to ensure that housing loan limits of workmen employees of Associate Banks are also be upwardly revised.
3. Attempts for violation of Industry-level Bipartite Settlement
As you will appreciate, the service conditions of bank employees are governed by Bipartite Settlements since 1966. Service conditions of Employees the Banks have been achieved through the industry-level bipartite settlements as well as by our internal settlement through Bank-wise Unions.
We recollect with gratitude that it was your intervention in February last which paved way for the 10th Bipartite Industry-level Wage settlement in Banks in India. 43 Banks including all the 27 PSBs are parties to the Settlement signed between IBA and Unions on 25th May 2015.
In this settlement, Clause 11 (v) permits State Bank of India (only State Bank of India) to review and settle the rates of special pay and duties at their bank level.
Clause 39 provides special compensatory provisions in respect of SBI (only in SBI ) to be reviewed and settled at their Bank level.
The above provisions of the Settlement clearly mean and imply that the Special Pay rates and duties in all other Banks will be as provided therein and cannot be altered and amended by them at their Bank level.
Of late, there have been attempts to arbitrarily, adversely and unilaterally amend the service conditions of the employees in the Associate Banks. Managements of Associate Banks, at the behest of SBI, are attempting to ignore and negate these settled service conditions and want to impose the certain service conditions by name Career Progression Scheme which is neither sought for nor acceptable to the employees in the Associate Banks.
In the proposed scheme which is termed as a package, designations, duties, roles and responsibilities, hours of work of Employees, more transferability, etc are sought to be changed in contravention of Awards and Bipartite Settlements.
The posts of Sweepers are sought to be abolished. Outsourcing of permanent jobs is contemplated which will deprive the poorer sections of the people to get some employment opportunities in the Bank. This would also be in violation of Bipartite Settlement.
In SBI, a Career Progression Policy has been implemented as per the mutual Settlement reached with the Union in SBI.
But in the case of Associate Banks, bilateralism is avoided and SBI management wants to unilaterally force their Scheme upon the employees in the Associate Banks.
Instead of coming forward to negotiate with our Unions, recently SBI Management has sent a fiat to all Associate Banks instructing them to implement SBI Career Progression policy in the Associate Banks.
This means that SBI management does not care for bilateralism, does not believe in discussions with the union, does not want to abide by law, does not respect bipartite settlement and wants to move unilaterally, arbitrarily, discriminatingly and illegally against the interest of the employees of Associate Banks.
It would be recalled that during the negotiations for the 10th BPS, the IBA raised the issue of rationalization of Special Pay and desired enhancement in duties. From the side of the unions, it was indicated that the duties can be revised and expanded if the rates of Special Pay are also upwardly revised commensurately.
However, IBA did not insist on any change in the duties and powers of Special Pay posts and accordingly the Settlement was signed in May, 2015. Even the SBI representative in the negotiation Committee of the IBA did not suggest any special provisions for Associate Banks on the lines of SBI.
All the Associate Banks viz. SBT, SBM, SBH, SBP and SBBJ, are party to the Settlement and are bound by the provisions of the Settlement. They had given clear mandate to the IBA to negotiate and settle on behalf of their Banks and hence the Settlement is fully binding on them.
But it is disturbing to observe that the managements of the Associate Banks, at the instance of SBI, are attempting to change the duties and rates of Special Pay in deviation and violation of the provisions contained in the Settlement. You will kindly appreciate Sir, that this cannot be countenanced or agreed to by the union.
It is evident that the SBI management is forcing the Associate Banks to adopt the Special Pay duties as are applicable in SBI.
While the Settlement provides for separate dispensation in the case of SBI, the same is not available to any other Bank including the Associate Banks.
This is an attempt on the part of the SBI and Associate Banks to violate the provisions of 10th BPS, which is illegal.
We seek your intervention to ensure that Managements uphold the sanctity of 10th Bipartite Settlement in Associate Banks by not altering the settled service conditions.
We are ready to negotiate and settle:
We have repeatedly informed the management of SBI, Associate Banks and even the Indian Banks Association that any reasonable proposal of the management to modify the Settlement to provide for higher duties and responsibilities in the Associate Banks and all other Banks would be welcome by us but unfortunately, this positive offer is being scuttled by the SBI who are keen to unilaterally impose their service conditions in the Associate Banks.
When the matter was seized in conciliation before the Chief Labour Commissioner, he also clearly opined that any attempt to unilaterally alter the service conditions in the Associate Banks would be illegal and hence the right course would be to negotiate with the union and modify the service conditions suitably.
But unfortunately again, the same was not acceptable to the management who insisted on their right to change the service conditions as they deem fit.
We may assure you that our Association stands fully committed to better customer service, improved productivity, higher efficiency of the employees, etc. and hence would welcome any meaningful negotiations on higher duties and responsibilities to arrive at a mutually acceptable solution.
4. Delink Associate Banks from SBI:
As you will appreciate, the present Associate Banks are former princely state banks founded prior to formation of State Bank of India, with regional flavour, footprints, customer base, business, people’s wide patronage etc.
On many parameters, Associate Banks are ahead of SBI. But conflict of interest between SBI and Associate Banks has dampened the growth of the Associate Banks.
Had the Associate Banks been given more functional autonomy and operational flexibility sans SBI’s control, they would have grown further and farther.
There are many nationalized banks which were smaller in comparison to the business of the Associate Banks two three decades ago but today have overgrown the Associate Banks because of their independence and flexibility to do business.
There have been repeated attempts on the part of the SBI management to threaten closure of the Associate Banks and merge them with the SBI unmindful of the fact that it unwarrantedly destabilizes the mindset of the employees and creating avoidable anxiety and uncertainty in their minds about the future of their employment and career in their Banks.
In fact the real need is to de-link these Associate Banks from SBI and make them stand-alone independent Banks to enable them to grow and progress to their optimum potential.
Sir, We request your kind intervention to extend justice to the Employees of the Associate Banks.
Thanking you,
Yours faithfully,
Sd..
C H VENKATACHALAM
GENERAL SECRETARY