Saturday, November 28, 2009

UFBU SIGNS MINUTES WITH IBA : Pension Option with 17.5% hike. SBI Leaders walk out.

UFBU SIGNS MINUTES WITH IBA : Pension Option with 17.5% hike. SBI Leaders walk out.
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As predicted in this blog earlier, the bankers are going to get 17.5% wage hike and one more option to join the pension scheme. The minutes of the meeting with these broad understanding has been signed today. The details will be chalked out within 90 days.AIBEA Version :"ANNUAL WAGE INCREASE OF RS. 4816 CRORES FROM
1-11-2007
ONE MORE OPTION FOR PENSION ACHIEVEDWE DEDICATE THIS ACHIEVEMENT TO THE MEMORY OFCOM. PRABHAT KAR ON HIS 25TH DEATH ANNIVERSARY DAYYes, today, 27-11-2009, is the 25th death anniversary of our great leader and doyen of bank employees trade union movement, Com. Prabhat Kar. On this solemn day and during the centenary year of this father of our movement, we deem it a befitting commemoration and tribute to his life-long pioneering role in shaping up the service conditions of bank employees that the Minutes have been signed with the IBA on our wage revision demand and more importantly, securing another option for more than 3 lacs of employees/officers/retirees to get the benefit of our unique pension scheme.Salient features:a) Annual wage increase of Rs. 4816 ( Rs. 2239 crores for officers and Rs. 2576 crores for workmen employees ) w.e.f. 1-11-2007.b) All the existing employees who are now in PF scheme will be given an option to join the existing pension scheme.c) All those who have retired after the date of Pension Regulations till date will also be given an option to join the pension scheme.d) Full settlement on the above to be finalized within 90 days.Wage revision – what we have achieved:
7th BPS
8th BPS
NOW
Additional annual wage load
12.25 %
13.30 %
17.50 %
Total quantum of annual wage increase (Officers & Workmen)
1497 crores
2200 crores
4816 crores
Annual Average Per Capita Increase
Ø For Workmen employees
Ø For Officers
12,550
24,025
23,300
43,600
56,200
91,800
ONE MORE OPTION TO JOIN PENSION SCHEME
– A UNIQUE ACHIEVEMENT:In 1993, after bitter struggles and against all odds, AIBEA and AIBOA achieved pension scheme for bank employees. Today, once again, with the leading role of AIBEA and AIBOA, another milestone has been anchored. More than 3 lacs bank employees, officers and retirees will now get another option to join the pension scheme to insulate themselves with this unique social security benefit. It is a very commendable achievement indeed.Dear comrades, with the signing of this Minutes, the main understandings have been reached. Now the UFBU will be taking steps to expedite the final settlement with revised pay scales, allowances and other improvements and thereafter for implementation of the same and payment of arrears to the employees.Dear comrades, on this happy occasion, it is necessary to remind ourselves that these achievements were preceded by persistent efforts and protracted negotiations by the leadership of UFBU and backed up by the exemplary unity of the bank employees and officers and their successful participation in the strike actions. It is the result of our unity, militancy and perseverance."
Source : AIBEA (The text is as available with AIBEA website)
SBI Association walked out of the meeting, NPS for new entrants w.e.f 01.04.10.
Representatives of SBI employees unions walked out of the deal saying their interests were not protected. But with the United Federation of Banking Unions, the body that represented nine employees associations, signing the minutes of the meeting, the deal is said to have been clinched. Now SBI employees would have to negotiate with the management to ensure that their interests are protected.
Wage Increases and Pension Option
Wage increase
Banks (all public sector banks, some old generation private sector banks and a few foreign banks) have agreed to an aggregate annual wage increase of Rs 4,816 crore (or 17.5 per cent increase over the collective establishment cost of Rs 27,520 crore as on March-end 2007 on account of employees), said Mr K. Unnikrishnan, Deputy Chief Executive, IBA.
About seven lakh bank employees, including officers, clerical and award staff, will stand to gain due to the wage revision, said Mr Vishwas Utagi, General Secretary, All Bank of Maharashtra Employees Association.
Further, 2.72 lakh existing employees and 35,000 retired employees will benefit as another option for pension is being extended to non-pension optees.
The total liability on account of existing employees exercising the pension option is Rs 6,000 crore and that due to retired employees is Rs 3,116 crore. The gap in the pension liability will be shared between banks (70 per cent) and employees (30 per cent).
Retired employees
Retired employees (non-pension optees), who were in the service of the bank as on September 29, 1995 and March 26, 1996 and retired thereafter, choosing the pension option will be required to return the bank's contribution to the provident fund with interest thereof received by them at the time of retirement.
Further, they have to contribute to the pension fund their share of 30 per cent of the gap in pension fund.
Existing employees (non-pension optees) can exercise the pension option by contributing to the pension fund their share of 30 per cent of the gap in pension fund.
This contribution will be recovered from the arrears payable on wage revision.
According to the agreement, a defined contributory retirement benefit scheme will be introduced for workmen/ officers joining the services of banks on or after April 1, 2010.
Though SBI employee representatives too were part of the negotiations, they were unhappy with the pension agreement as the pension scheme of other public sector banks is better, said Mr Utagi.
The IBA and the unions will finalise the joint note within three months.
(With inputs from Business Standard and Hindu Business Line.)

1 comment:

  1. It is exactly copied from paycommissionupdate.blogspot.com

    No objection about copying, just acknowledge the source.

    ReplyDelete