Thursday, March 13, 2014

Bi-partite or Pay commission?

Some comrades prefer Pay commission than to Bi-partite system.
Some were gone to the extend of  online campaign.

Pay commission is like a gift/donation. It depends on the mood of the donor. Employees can give representations but can't negotiate like which head to be increased to which extend etc.,
You might have  noticed that even after 5 years of 6th pay commission, various section of Govt. employees are conducting demo.etc for various anomalies.  

Bipartite is  a negotiated settlement agreed by both the parties  and no more agitations for another five years in the matter of wages.

There are many more points to add. I will post it in future, as it will lead to a new topic for dicussion and dilute the negotiation process.
***********************
 I searched for explanation, I found one issued by AIBEA ISSUED IN THE YEAR OF 2010.
(SOME VALID  POINTS ARE MISSING IN THE CIRCULAR)
I reproduced the same for your reading.



 
       ALL INDIA BANK EMPLOYEES' ASSOCIATION
         Central Office:  “ PRABHAT NIVAS ”
          Singapore Plaza, 164, Linghi Chetty Street, Chennai-600001
          Phone: 2535 1522, 6543 1566    Fax: 4500 2191, 2535 8853

                                    e mail ~ chv.aibea@gmail.com & aibea@vsnl.com   




CIRCULAR NO: 26/68 /2010/18                                                       27TH May, 2010

TO ALL UNITS & MEMBERS :

Dear Comrades,
6TH PAY COMMISSION – SOME FACTS

During the current negotiations and Settlement, there have been numerous references to 6th Pay Commission Report on wage revision for Central Government employees.  This is not the first Pay Commission and in the past also we have encountered such wage revisions for Government employees.

Previous wage revision for Government employees and bank employees:

For Government employees
For Bank employees
1st Pay Commission
Report submitted in 1947
Sastri Award
Award  in 1953
2nd Pay Commission
Report submitted in 1959
Desai Award
Award  in 1962
3rd Pay Commission
Report submitted in 1973
1st BPS
Signed in 1966
4th Pay Commission
Report submitted in 1986, 87
2nd BPS
Signed in 1970
5th Pay Commission
Report submitted in 1995,96,97
3rd BPS
Signed in 1979
6th  Pay Commission
Report submitted in 2008
4th BPS
Signed in 1984

·         In  61 years,  Government employees
     got wage revision on 6 occasions.

·         In 57 years,  Bank employees have
     achieved wage revision on 11 occasions

5th BPS
Signed in 1989
6th BPS
Signed in 1995
7th BPS
Signed in 2000
8th BPS
Signed in 2005
9th BPS
Signed in 2010

6TH PAY COMMISSION:
  • Effective from                                                  :        1.1.2006
  • Effective for                                                    :        Next 10 years
  • No. of employees/officers covered            :       Around 35 lacs
  • Gross implication of wage revision        :         Rs. 12,561 crores per year
  • IT IS A DECISION BY GOVERNMENT – NO NEGOTIATIONS INVOLVED

Wage Revision for Bank employees/officers – 2010

  • Effective from                                                     :        1-11-2007
  • Effective for                                              :        5 years
  • No of employees/officers covered                 :        7 lacs
  • Gross implication of wage revision         :         Rs. 4816 crores per year 
                                                                          + Rs. 6300 crores for giving 
                                                                                pension to  PF optees
·                             IT IS A COLLECTIVELY BARGAINED NEGOTIATED LEGAL SETTLEMENT


GROSS IMPLICATIONS (  Para 10.1.12 – Page   640  of   6th Pay Commission Report   )

Sl.No.
Head
Implications   (Rs.in cr per year)
1.
Revised Pay scales for civilians
3828
2.
Revised Pay scales for Defence Forces
1640
3.
Military Service Pay for Defence Forces
1497
4.
Transport Allowance (civilians and Defence Forces)
241
5.
HRA (Civilians and Defence Forces)
1100
6.
Pension (Civilians and Defence Forces)
1365
7.
Gratuity (Civilians and Defence Forces)
410
8.
Leave encashment (Civilians and Defence Forces)
180
9.
Defence Forces allowances
1750
10.
Other allowances
400
11.
Misc (upgradations of individual posts, allowances, etc.)
150

TOTAL
12,561
Wage Revision for Govt. employees and bank employees:


No. of employees covered
period
Amount of wage revision cost per year
Govt. employees/officers
35 lacs
10 years from 2006
Rs. 12561 crores less projected savings
Bank employees/officers
7 lacs
5 years from Nov. 2007
Rs. 4816 crores + 6300 cr for PF optees to join pension scheme


Projected Savings (  Para 10.1.13 – Page 641 )
“The gross financial implication on account of the recommendations made in this report will need to be reduced by the savings that will accrue on account of various recommendations made in the report.”
 These savings are on account of the following:


Recommendations
Projected Savings per annum
Rectification of commutation of pension formula
Rs.1000 crores
Revised scheme for payment of pension commutation
Rs.1344 crores
Revised scheme for payment of advances
Rs.442 crores
Lateral movement of Defence Forces personnel in CPMFs
(Rs.600 crores (on pension) + Rs.1100 crores (on commutation of pension) + Rs.100 crores (on training & recruitment)

Rs.1800 crores
TOTAL
Rs.4,586 crores


Net Additional Financial implications (  Para 10.1.14  -   Page 641  )
“The net additional financial implication on account of implementation of various recommendations of this Commission will, therefore, be Rs. 7,975 crores”.

40% Increase in their wages ?
Media has reported of bonanza of 40% hike in salary under Pay Commission recommendations. 
According to a leader of the Government employees : The correct way to estimate the average pay hike for Central Government employees is to see how much the Government’s wage bill goes up.  The Pay Commission estimates the annual gross impact of its recommendations to be Rs. 9242 crores for the Union Government (excluding Railways).  Pay, Allowances and Pension of the Union Government amounted to Rs. 68,290 crores in 2007-08.  Hence, the increase in Government compensation is 13.5%.
The increase at the highest level –  Grade A – is much larger, around 30 to 40%.   But Grade A officers account for just 1% of the total strength of Government employees.

Do you know ? :
In our wage settlement, the main feature is that in addition to wage revision, we had to achieve another option to join the same pension scheme for the remaining more than 3 lacs employees/officers/retirees.   In addition to the cost of wage revision, we have achieved this demand and the cost of funding the deficit by the management is Rs. 4,200 crores for the existing PF optees and Rs. 2,100 crores for the retired PF optees.  Over and above this, for all the existing and proposed pension optees, the Banks will also bear an additional 13% of the revised Pay towards additional pension cost ( actual cost of 36 % less 23 % accounted for from wage revision).  Hence additional amounts have been earmarked for future pension benefit. Hence our wage revision has to be seen in totality.
 But in the Central Government, the Pension cost has been proposed to be reduced.  The Commutable factor Table has been revised.
For example:

IN BANKS
IN GOVERNMENT – AFTER 6TH CPC
AGE NEXT BIRTHDAY
COMMUTATION
FACTOR
AGE NEXT BIRTHDAY
COMMUTATION
FACTOR
59
10.46
59
8.371
60
10.13
60
8.287
61
9.81
61
8.194
62
9.48
62
8.093
63
9.15
63
7.982

Thus, with the change in Commutation Table and factor, the commutable value of pension will be lesser.  The idea is to reduce long term future liability and satisfy the employees with some benefits as of now.  But in our case, we have provided more amount for future benefits after retirement.    Because of the change in the Commutation Table, Central Government employee will get lesser commutation than in the past.  That is how the Pay Commission Report states in page 641 that on account of the reduction in commutation cost, the Government will be saving Rs. 1344 crores per year. 



·         In Pay Commission, future commutation benefit has been
Reduced


In our Settlement, commutation amount will increase.  Further another 3 lac employees have been brought within the DA linked pension benefit whereas in Govt., from 2004, DA linked pension
has been discontinued

OTHER NEGATIVE FEATURES :
·      Entire Group D  i.e. Substaff cadre has been abolished
·      Total freedom to outsource any job in any Government department
·      All the existing vacancies not to be filled up


That is why we have never gone by Pay Commission as a model for bank employees.  6th Pay Commission is no exception.

With greetings,
                                                                                           Yours comradely,
                                                                                         
C.H. VENKATACHALAM

GENERAL SECRETARY

20 comments:

Anonymous said...

what is the meaning of this artical
gov emp got 6 time revision and bank got 11 time revision but ultimately gov peon got more salary then a bank officer what is it
it means which they got in 6 revision banker didnt get in 11 revision they got more then double from us and they are on top
banker not fool

Anonymous said...

i have joined bank after leaving air force after implementation of six pay commission in year 2009, my salary before six pay commission was 10000/- wheras after implementaion of six pay commission i got 19500/- per month, more than the probationer officer in bank at that time.
There is ultimate comparision can be done on basis of pay. In central govt at entry level an officer get around 50000/- wheras in bank around 35000/-. so think what will happen after seventh pay commission.

Anonymous said...

Sir, pay commission works on fact not on mood of the government but mutually signed bipartite is a fixed match & depends only on few people sitting at the top and there needs not thinking of a common banker. Coz if u consider facts and various aspects it will always b more than the pay commission but result is vice versa. Some might b genuine leaders but lack the leadership quality & for their sake doesn't do anything. Time have cum pay commission for bankers.

Anonymous said...

Whatever it is, how complicated your mathematical calculation, finally those 'poor' govt. employees take double than the 'lucky' bankers to home...i still wonder ...why?

Vikas Yadav said...

During central government 6th pay commission commitee apointed and they placed there demand before government and several round of discussion took place before finalising it and even after it armed forces placed their additional demand for salary hike which came in form of rank pay. Where as in bank BPS is not yielding any thing and we banker become beggers. Banker are working under various risk and day by day our work is increaseing but salary is not in tune of goverment employee and our allowances and educational fees needs atleast five times improvement. Central government employee gets enhanced insurance and medical coverage where we banker are lacking. HRA is major concern with maximum of 30% to government employee but only 8.5% to bank employee. Bankers salary have no comparision with central government employee salary and our salary matter needs urgent redressal by government other wise bank will not get quality people.

Anonymous said...

Mr. Blogger this is intolerable. Please remove this blog asap. What do you want to say that we are at par with central government employees. Can't you see the difference between the two this site you have developed for bank employees or against bank employees. It seem you have also joined hands with IBA so called "INDIAN BROKERS ASSOCIATION".

Anonymous said...

Yes we need a pay commission but our leaders need wasting of time for more union fund and nine members are deciding 10 lakh banker's life so do not think about good salaries in banking : srinu kadapa

Anonymous said...

One sided article...

rajeevkojha said...

You forget that pay commissions are headed by persons of high integrity,honesty and vision.They Supreme Court Judges,IIM Professors/eminent economists/secretay to GOI level officials.They consider all the representations from various groups of employees.
In bank pay revision some bank chief (half of them under CBI scanner) and ill educated, half wits called Union netas are involved. How can you even think about comparing both systems?

Anonymous said...

Even after 11 revisions for Bank employees pay for an entry level officer in a Bank is less than Central government entry level officer. And you are saying Bipartite settlements are better. Can you justify why the entry level salaries are higher for central government officers..

Anonymous said...

i just dont understand ur means of calculation. just feel like laughing ....thats all i can say.......

Vikram Thapa said...

WE WANT PAY COMMISSION

Anonymous said...

100% DA neutralisation is common norms in pay commission, whereas ufbu describe 60% DA neutralisation as achievement. ufbu stands for unwanted forum of bank association.

Anonymous said...

We bankers are matured and We don't need to any example for convince us. We bankers understand every thing. What is going on.

Don't try to make us fool.

Now days gone to be fool.

venkateswaran said...

Sir

Even after 11 BPS our award staff salary is less than that of Govt staff. They have fixed working hours. 10- 5. we have financial responsibility.

Anonymous said...

It is said that commutation has been decreased, my dear sir before 6th pay commission the said commutation was 45% of the pension basic after 6th pay commission it become 50% now you decide whether it is an increase or decrease..... it is always advisable to buy things from shops which offer fixed prices where we know that the shopkeeper has taken his due profit rather than bargaining and we end in loss b'coz we never knew about all ins and outs of every thing available in the world...... BPS is a fixed match pay commissions are only best.....

Anonymous said...

Mr. Peryasami
You must have got your reply from all the comments given earlier.

If you and Mr. Venkatchalam Think that you are smarter then think once again.

Please give us some practical example comparing the present salary and pension of both categories.

By the way why then AIBOC has admitted that they are a failure in Bipartite since 1982.

Thank you for enlightening us

Anonymous said...

Mr. Peryasami, u think that the young bankers are damn fools, that watever u say, we'l belive that. 11 BPS or 6 PC dusn matter. Just try to explain us the diff betwn the salaris, working conditions & risk factors of cent. govt. employees & the bankers. If a loan goes bad, then the accountability comes to the branch head, then tell us a soln by which we will be able to know the future of the loan account before sanctioning it.
This is a common issue and there are a lot more issues of diff aspects.
10 BPS result is fixed. The only reason that it is getting delayed is that the more arrear we get, the more levy our union will charge which will be used by our MAHAAN LEADERS for their personal purpose. UFBU & IBA is nothing, but the two sides of coin..... facing opposite to each other but always remain attached together.
Sab young bankers ka HAAAI lage inko...

Anonymous said...

The AIBEA making fool to all of us in Govt 40% commutation is allowed ( Banks 1/3 of basic pay. P/L leave accumulation is 300 days fully exempted from I.Tax in banks 240 days exempted up to Rs 3 lacs only.5 days working and difference in class-1 and bank officer salary at initial stage is more than Rs 25000/- monthly. So these are only few examples all bankers know it very well they know that pay commission is far far better than this Bi partite

Kaybee Singh said...

Pay commission or Bipartite settlement , issue Is justice. Also consider risk involved in a bankers job. I suggest legal recourse before UFBU sells interests of lacs of employées.