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DATA ANALYSIS AND INTERPRETATION

BRIEF OF WAGE NEGOTIATIONS IN BANKING INDUSTRY

In the era of Bank Industra! Tr"una!s #$%&%'$%()*

There is a general impression amongst many of us that INTUC is a late starter into the Banking

Industry. But in reality it is not so. If one goes through the history of various Bank-Awards, whih

determined the servie onditions of the !ank employees then, one would find that the INTUC"s

affiliated union entry into the !anking industry is almost five deades old. #es, from the $en Tri!unal

%&'('-)*+ INTUC unions have entered their appearane and fought for !etter wages and other servie

onditions.

 $hri.C. udhia, Barrister at aw represented INTUC unions. rom that period whether it is ivatia

Tri!unal %&')&+ or $astry Tri!unal %&')/-)0+ or a!our Appellate Tri!unal %&')(+, INTUC unions

were represented !y their ederation vi1. Bank 2mployees ederation. In the year &')', the INTUC

ederation in the name of All INIA BAN3 2456#22$ 227ATI6N %AIB2+ su!mitted its

Charter of emands on !ehalf of employees of !anks, whih was referred to along with the demands

su!mitted !y AIB2A and AI$B2 %$BI+ to esai Tri!unal, onstituted !y the 8overnment of India on

the /&st 4arh &'9*. $hri. :. N. $ekhari was then the 8eneral $eretary of AIB2.

INTU+ n the era of B,artte Ne-otatons #$%(('.)))*

The Award of the National Industrial Tri!unal presided over 4r. ;ustie 3anthilal T esai %&'9/+

 popularly known, as istene a !ipartite system !etween the Indian Banks Assoiation and

the industry level !ank unions in resolution of disputes !etween the managements of !anks and theunions. The first settlement whih is known as the irst Bipartite $ettlement overing the wages and

other servie onditions of the !ank employees !arring $tate Bank of India was signed on the &'

6to!er, &'99 !etween the IBA representing !ank managements on the one hand and the All India

Banks Assoiation %AIB2A+ and the All India Bank 2mployees ederation %AIB2+ on the other.

It would !e of interest for you to know that the AIB2, the then !ank federation of INTUC was

represented !y $hri.N.3.Bhatt, 4.5, Chairman of the ederation along with $hri.N.5.esai, :ie

5resident, $hri :.N.$ekhri, 8eneral $eretary and $hri 6.5.Nigam, ;oint $eretary. Apart from the

usual main features of a wage settlement suh as revision of wages and other servie onditions, the

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first $ettlement provided for $peial Casual eave eligi!ility /& days for 6ffie Bearers and &? days

for Central Committee 4em!ers of AIB2A@ AIB2 and ? days for 6ffie Bearers of their $tate or 

7egional 6rganisations per year for attending meetings and onferenes of !ank employees. This

faility has !een su!seuently e>tended !y IBA to other organi1ations as well.

uring the $eond Bipartite $ettlement %&/th 6to!er, &'?*+ the INTUC"s !ank federation has not

signed the settlement. I am not a!le to trae out the reasons therefore. This happens to !e a settlement

 !etween the IBA and AIB2A only.

The Thrd B,artte Sett!e/ent 0as s-ned on the $st Au-ust $%1%

This time there were three parallel negotiations !etween IBA and AIB2A and NCB2 on the one hand

and !etween IBA and Indian National Bank 2mployees Congress %INB2C+, Banking wing of INTUC

on the other and third round of negations was !etween the IBA and the National 6rganisation of Bank 

orkers %N6B+. $ine there were three parallel negotiations, three idential $ettlements were signed

 !etween the parties.

The third $ettlement was signed !y $hri.C..udia, Bar at aw, 5resident, $hri . 5. 7oy, 8eneral

$eretary, $hri.$. N. 4ishra, $eretary and $hri 7. 5. 3. 4urugesan, the then Asst. $eretary on !ehalf 

of INB2C. It would also !e interesting to know that on !ehalf of N6B $hri. $u!ramaniam $wamy,

5resident along with other offie !earers signed the $ettlement.

rom this $ettlement the system of revision of !asi pay underwent a great hange from adho

inrease to merger of a part of deamess allowane with the e>isting !asi pay with onseuent

automati upward revision in other allowanes su!=et to ad=ustments !y presri!ing a ap on them.

This time the !asi pay was revised !y merging dearness allowane at /** points in the All India

Average orking Class Consumer 5rie Inde> %8eneral+ Base &'9*&** popularly known asConsumer 5rie Inde> %C5I+. The effetive date of the $ettlement was from &Bt $eptem!er &'?D and

the period of the settlement was for four years.

The Fourth B,artte Sett!e/ent dated $1th Se,te/"er $%2&

This time there were two parallel negotiations, whih IBA held !etween AIB2A and NCB2 on the one

hand, and INB2C on the other. The $ettlement was signed !y $hri.N.3.Bhatt, 4.5 as its 5resident,

$hri..5.7oy, 8eneral $eretary, $hri.7.5.3.4urugesan, ;oint $eretary, along with $hri..7am,

$hri.:.$.4alhi, $hri.7am 7ahim ;ohny and $hri $u!hash $ $awant, the other offie !earers on !ehalf 

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of INB2C.This time the revised !asi pay was arrived at !y merging that portion of dearness

allowane at 00/ points at C5I. The four-year $ettlement was effetive from &-?-&'D0.

The Ffth B,artte Sett!e/ent date $)th A,r! $%2%

The period !etween &'D9-&'DD had !een most tur!ulent in the history of the INTUC"s !anking wing.

INTUC deided to reorgani1e its Industrial ederations in Banking, Insurane and other inanial

$etor, hene dissolved the INB2C and INB6C along with IC and 8IC unions with effet from &9th

;uly, &'D?.

6n the / August, &'D?, therefore, the workmen-unions in the !anking industry affiliated to INTUC

held a meeting at 8rand Eotel, 4um!ai on the / August, &'D? deided to form a new ederation under 

the name and style of months !efore the e>piry of the $ettlement and the

negotiations would ommene three months !efore. 6n !ehalf of INB2 $hri C.. 7a=arathnam, :ie

5resident, $hri 7.5.3.4urugesan, 8eneral $eretary, and other offie !earers vi1. $hri..7am,$hri.$u!hash $ $awant, $hri.inesh :egurlekar, $hri. ;. 8. :erma and $hri.7am 7ahim ;ohnny signed

the $ettlement.

S3th B,artte Sett!e/ent dated $&th Fe"ruar45 $%%6

or the first time in the !anking industry the era of separate negotiations with different Unions has

ome to an end. 8reat e>petations of the !ank employees aroused in them with the implementation of 

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the ifth 5ay Commendations, the $i>th Bipartite Negotiations !egan. At the same time there was a

growing realisation among the !ank-unions that only !y unity and united efforts on the part of all

unions they an reali1e aspirations of their mem!ers. $o all the four unions vi1 AlB2A, NCB2, INB2

and B2I prepared a Common Charter of emands that led to ommon negotiations !etween the IBA

and the industry-level Unions. Conseuently a five-year $ettlement was signed !etween the parties on

the &( e!ruary &'') with retrospetive effet from &s Novem!er &''/.

 

The merger of dearness allowane for the purpose of revision in the !asi pay was at &&(D points at

C5I %&'9*&**+. The five-year $ettlement, whih was effetive from &st Novem!er &''/, was a single

doument signed !y all the four industry-level Unions vi1 the AIB2A, NCB2, INB2 and B2I. 6n

 !ehalf of INB2 $hri.7.5.3.4urugesan, 8eneral $eretary, $hri ;ogen $arkar, :ie 5resident and

$hri.$u!hash $ $awant, y 8eneral $eretary and $hri. 7.3unhithapatham signed the $ettlement.

6ther onneted developments in the $i>th $ettlement are e>plained under ;$C.

The Se7enth B,artte Sett!e/ent dated .1th 8ar9h .)))

The urrent $ettlement ie the $eventh Bipartite $ettlement was a =oint $ettlement with IBA onseuent

to =oint negotiations !etween IBA on the one hand and five industry-level Unions vi1. AlB2A, NCB2,

INB2, B2l and N6B. This five-year $ettlement is effetive from &s Novem!er &''? and due to

e>pire as on the 0&s 6to!er /**/.

The dearness allowane at &9D( points at C5I %&'9*&**+ was merged for the purpose of revision in

 !asi pay. Besides the a!ove $ettlements, there were many other $ettlements suh as $ettlement on

Computerisation and 4ehanisation, 5ension, $ettlement on revision of wages and other servie

onditions for B lass !anks, 7esidual issues et. where the Banking wing of INTUC had !een a party.

It is not my intention to !ring out here the history of Bank-Awards or the salient features of various

Bank-$ettlements with a historial perspetive. 4y intention is to !ring to your notie the variousstages of the INTUC"s Bank ederation whih to day is INB2. INB2 as the inheritor of this great

tradition ould legitimately feel proud of. 8iven the freedom and thrust, I earnestly feel that the day is

not far off when INB2 would emerge as the strongest organi1ation in the !anking industry.

The E-hth B,artte Ne-otatons and UFBU

By e>erising an option anytime during a !lok of / years or ( years, as the ase may !e, an employee

an either undertake travel availing of leave fare onession and laim reim!ursement upto his

entitlement or to enash the faility for the onerned !lok. The option so e>erised shall !e

irrevoa!le for the !lok onerned. 6n opting to enash the faility, he will !e entitled to reeive a

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lump sum euivalent to ?)F of notional train fare for the admissi!le distane %depending on a / year 

or ( year !lok+ !y the entitled lass, su!=et to dedution of admissi!le ta> at soure.

eave are Conession for travel to plae of domiile is not enasha!le. An employee opting to enash

his TC shall prefer the laim for himself and his family mem!ers only one during the !lok@term in

whih suh enashment is availed of. The faility of enashment of privilege leave while availing of 

eave are Conession is also availa!le while enashing the faility of C. 5roviding, however that

an employee so enashing the faility of leave fare onession shall proeed on leave for a minimum

 period of ( days.

The post :7$ situation has witnessed a very alarming shortage of staff at all levels. 2>tremely tight

work at all offies more partiularly at !ranh level has neessitated late sitting without adeuate

ompensation. In many Banks there have !een disloations in the work and the life pattern of the staff.

In the a!sene of fresh reruitments, the e>isting staff is over !urdened with heavy routine.

5romotional opportunities in almost all Banks, of late, are delining very fast. The e>isting employees

have to shoulder additional responsi!ilities for nominal ompensation in the name of $peial 5ay

whih is disproportionate to suh additional responsi!ilities. These issues will have to !e kept in mind

while negotiating with the IBA.

4ere perentage inrease in the e>isting 5ay $ales with or without merger of a portion of dearness

allowane, as have !een done in the past, would not !e adeuate and reasona!le under the present

irumstanes. irst of all the present $peial 5ay paid as untional Allowane should !e rationalised.

There are too many of suh AllowanesG $eondly employees should not !e allowed to rot in the same

 pay sales even after ompleting /*@/) years of servie. This has led to frustration among the

employees.

There should not only =o! satisfation for them !ut also a sense of pride in their status. ;ust anadditional payment of $peial Assistant $peial 5ay or $enior Assistant $peial 5ay would not satisfy

them. There should !e distint and separate pay sales for eah of these ategories. To !egin with,

there may !e 0 or ( 5ay $ales for Clerial Cadre. $imilarly there may !e at least / 5ay $ales for 

$u!ordinate Cadre also. rom one sale to the other, there should !e automati swith over as in the

ase of $ale I to $ale II in the 6ffier Cadre. The introdution of multi-sale system is not new to us.

It is availa!le in the 6ffier Cadre within our own !anking industry and they have si> sales. $imilar 

multi-sales within the same adre are availa!le in 7BI, IC, and 8IC in the inanial $etor and even

in Central@ $tate 8overnment.

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The apprehension e>pressed !y some Unions during the ) Bipartite Negotiations when INB2 plaed

suh a proposal that the introdution of multi-sales would enourage a split in our Unions and would

lead to the formation of adrewise Unions is unfounded. 2ven now there is multipliity of Unions.

Eowever, we should not stand in the way of employees" areer progression for trade union

onsiderations. 6pinions gathered !y INB2 from various Union-offiials and general !ank 

employees reveal that they would wholeheartedly support any suh idea. INB2 would ertainly

initiate suh a move in the =oint forums of !ankmen !ut muh depends on the response of other 

onstituents of UBU one ommon approah formula is adopted.

I: B,artte Sett!e/ent 0th Penson Dedu9ton /et on a-ree/ent

This has referene to your letter No.E7HI7@4:@?9@'*@&)) dated /&st April /*&* inviting us to sign

the 'th Bipartite settlement on /?-*(-/*&*. e would like to draw your attention to the disussions

held on &9th April, /*&* in onsonane to the modalities signed on /?-&&-/**' that interalia stipulates

- 0*F %7s.&D**.)( rores+ !y all the employees who are in servie of the !anks as on the date of the

4emorandum of $ettlement@;oint Note to !e signed !etween the parties in this regard. This amount

will !e reovered from the arrears paya!le on wage revision.J you had informed us that all employees

who are in servie shall have to pay &.9 times of the revised pay as on *&-&&-/**?.

To our utter surprise =ust on the eve of the signing agreement for whih the entire workfore serving in

the industry are eagerly awaiting, you have violated from the understanding reahed earlier and now

insisting upon us to agree that only the C5 optees shall have to !ear the entire !urden of &D**.)(

rores !y ontri!uting /.D times of their pay as on *&-&&-/**? in lieu of &.9 times that was agreed

upon.

This is a ma=or deviation from the earlier understanding as our organisation ould have su!mitted

alternate proposal on /?-&&-/**' for the !enefit of the employees to whih we have !een deprived of.

urther sine *&-*(-/**D uite a large num!er of employees have retired from servie for whom you

have deided to reover )9F in addition to the BankKs ontri!ution that they will !e surrendering for 

opting pension. This will definitely =eopardise the interest of !oth the serving and retired employees as

the very !asis of atuarists alulation will undergo a hange.

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In view of the a!ove we would like to su!mit that we are signing the 'th !ipartite settlement under 

 protest without pre=udie to our rights to maintain the santity of the understanding reahed earlier.