BANK’s WAGE REVISION Mathematics

Dear Colleague,
We are bringing to your notice some detailed discussions appearing on the NET regarding inept handling of wage negotiations for bankers. The desperation shown by a section of trade unions for getting the second option of pension will not only sacrifice the interest of lacs of young employees , but will also adversely affect the morale of work force who are supposed to carry forward their institutions in the years to come.
BOPF TEAM

An excerpt from the blog “ PAY COMMISSION “
BANK’s WAGE REVISION Mathematics
1. Initially IBA has agreed for Rs 6000/ Crore as wage revision Burden due external relativity (6th Pay commission recommendation). Later on improved up to Rs 7800 Crores.
2. Employee Unions raised the demand for pension Option. Option was converted into Pension burden calculation and sharing of Pension burden. Silently and conveniently External Relativity was ignored and lost.
a) Initially for current employee Pension burden (Rs 6000 crore )
b) later on even for employees retired after 1996 pension burden Rs 3000 Crores.
3. Mathematics of pension is as followsAssumption Rs 250 crores is 1% (figures in Crore)Total Wages offered by IBA = Rs 7800/- (Approx 31.2 %)Total Burden of Pension = Rs 6000 Crores Out of whichIBA agreed pension burden = Rs 4200 Crores (deducted from wage offer)Wage revision offer shown to us = 3600 Crores (7800 – 4200= 3600) (actually 14.4 %) Employee to bear Pension burden = Rs 1800 CroresNet (Actual ) Wage revision offer is only = Rs 1800/ Crores (Rs3600 Cr -1800Cr= 1800Cr) = 7.20 %
High Lights of wage revision Agreement :-
1. IBA was ready to pay 31.20 % rise Rs 7800 Crores
2. Full pension burden is adjusted from wage hike in either way.(7800Cr-6000Cr)
3. Unions wants to help even retired (after 1996) employee from this wage revision.
4. Net Wage revision offered is meager Rs 1800 Crores (Aprox 7.20%)
5. If pension is actually given as an option Employee would get 31.20 % rise in wage which when compared with external relativity (Central Govt employee was given 33 % to 40 % Rise.) may be in acceptable limit.
6. Pension burden is fully loaded on Bank’s employees.
7. Decision of Retired employee burden (RS 3000 Crores ) sharing is not clear.
8. In desperate bid to obtain 2nd pension Option, Union have opened a new way to IBA for sharing the future wage revision burden by employees.
9. This is not the pension option, it is burden sharing by Current employees.
10. Unions are silently playing against current employee interest,
Members needs to be alert of development, and read all UFBU circulars carefully. And Act if necessary.