cir. no: ai / 01 / 2008 – 2011 date: 14.03.2008 to all … · xv triennial conference held at...

CIR. NO: AI / 01 / 2008 – 2011 Date: 14.03.2008 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

XV TRIENNIAL CONFERENCE HELD AT CHANDIGARH ON 07.03.2008

The XV Triennial Conference of our All India Indian Bank Officers' Association was held at Chandigarh on 07th March 2008. Delegates from various constituent units attended in full besides observers in large numbers from almost every unit.

The Conference commenced at 12.30 p.m. with Com. K. Chandrasekaran, President occupying the chair. Com. E. Sundararajan, General Secretary of Indian Bank Officers’ Organization (Northern Zone) extended a warm welcome to all the delegates and observers and said that the conference is being held at CITY BEAUTIFUL which is one of the first few cities built in modern India after its independence and hoped that this conference would deliberate upon various issues confronting our members.

Com. K. Chandrasekaran, President, said that this Conference is being held in the backdrop of deferment of two days strike scheduled to be observed on 25th and 26th February 2008 and the MOU signed between the IBA and UFBU with a time frame to resolve the industry level issues raised by UFBU.

The Secretary General placed the report covering the developments on the International Scene, National Scenario, Banking and Economic Scenario, Salary Revision and the present position of the issues such as 2nd Option of Pension, Compassionate Appointment, payment of Income Tax on Perquisites like leased accommodation etc, Promotions, Transfers and the other developments in our Association and at our Bank level. Many comrades participated in the discussions on the Secretary General's report and came out with their frank and forthright views. Many voiced their concern over the urgent need to clinch the demands raised by UFBU at industry level and on the need to arrive at a fair and transparent Transfer and Placement Policy at our Bank level. All the delegates and observers congratulated the Association for the efforts taken in getting the repatriation transfer orders released before the end of February 2008. The Secretary General gave a detailed reply to the various points raised by the members and thereafter the report was adopted unanimously.

Statement of Accounts for the period ended 31.12.2005, 31.12.2006 and 31.12.2007 were presented and the same was approved unanimously.

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The house unanimously approved the proposal for amendment to the Rules and Bye-Laws of the Association for the creation of a post of Working President from the ensuing term.

The Conference unanimously passed the resolutions on the following subjects.

1. I L O Conventions 2. Income Tax on Perquisites 3. Labour Laws in Special Economic Zones 4. In Defence of Public Sector 5. Attack on Trade Unions 6. Opposing the Move of Mergers and Acquisition

A grand felicitation function was organized to bid farewell to Com. K. T. Venkateswaran, Vice President and a very senior comrade in our All India Body who had retired from the services of the Bank on 29.02.2008.

All the delegates recalled their long association with him and thanked him for the contribution and guidance all through the years and wished him a happy, prosperous and peaceful retired life.

Responding to the felicitation Com. K. T. Venkateswaran said that he was moved by the love and affection showered on him and asked every one to bear in mind as to how the association was built and said that the responsibility is cast on the incoming team to carry forward the movement with commitment and more determination to meet the challenges ahead.

It was a great pleasure to have in our midst Com. R. K. Gulahati, President of Federation of Indian Bank Employees Union, who at our invitation readily accepted to grace our conference and address the members. Congratulating the delegates and observers of the conference, he said that the unity forged in our Bank under the banner of UFBU- Indian Bank by all the unions be preserved and strengthened. He also said that officers’ movement should strive for creation of a tribunal in line with the Central Administrative Tribunal (CAT) for redressing the grievance of the officers in respect of various service matters such as transfers, promotion etc. He also said that the working hours of the officers are becoming unending and a solution has to be arrived at in that regard.

Thereafter Com. A. K. Jana and Com. K. T. Venkateswaran were nominated to conduct the Elections for the ensuing term. The following Office Bearers were elected unanimously for the ensuing term 2008 – 2011.

President : Com. K. Chandrasekaran

Working-President : Com. Dr. V Rajagopal Reddy

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Vice Presidents : Com. S. Soundar Rajan (TN & P) Com. G. A. V. Badrinaryana ( A P Unit) Com. A. X. George (Kerala Unit) Com. K. V. Halappa (Kar & Goa Unit) Com. Tapan Majumdar (Eastern Zone) Com. E. Sundararajan (Northern Zone) Com. Shabbir Ahmed (Western Zone) Secretary General : Com. T. T. Natarajan

Dy. Secretary Generals : Com. C. P. S. Murugan (TN & P) Com. M. Radhakrishna (A P Unit) Com. G. Harimon (Kerala Unit) Com. K. Dinakara (Kar & Goa Unit) Com. Arun Kumar (Eastern Zone) Com. C. B. Chaturvedi (Northern Zone) Com. Deepak Samant (Western Zone) Treasurer : Com. C. Sundararajan

Assistant Treasurer : Com. A. Sivakumar Com. K. Chandrasekaran President, summing up the proceedings of the Conference said that the journey continues and the ensuing period will be a challenging one. The Conference came to an end with the vote of thanks proposed by Com. A. X. George and the entire participants exhibiting total commitment and support to the newly elected team and with a note of more determination to carry forward the Officers' Movement to further glory in the days to come. With greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

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8TH TRIENNIAL GENERAL CONFERENCE OF AIBOC - A HISTORIC EVENT

The 8th Triennial Conference of our National Organization AIBOC was held in the ‘City Beautiful’ Chandigarh for the first time from 8th March to 10th March, 2008. It was a memorable one. Com. V. Eswaran, President of the Confederation hoisted the flag of the Confederation at the State Unit Office of AIBOC, State Bank of India, Chandigarh and led a mammoth rally to the venue. The procession started its journey amidst thunderous bursting of crackers with high enthusiasm amongst the delegates and observers with the chanting of sky touching slogans on trade union movement with particular reference to the Confederation, to herald the beginning of the procession. The veterans of our movement Com. L. V. Subramaniam, Com. A. K. Jana and Com. Shantha Raju, were present throughout the procession to inspire our rank and file.

“The Indian Banking Industry is the driving force and engine for growth of the Indian economy and for that, over 9 lacs of bank employees and officers working in the banking industry deserve appreciation of the common man”, declared Shri. Pawan Kumar Bansal, Hon’ble Minister of State for Finance, Government of India, amidst the thunderous applause and slogans “AIBOC ZINDABAD’, BANK OFFICERS UNITY ZINDABAD, while delivering his inaugural address to a gathering of over 2000 delegates and observers assembled in the spacious Bhargava Auditorium, PGI, Chandigarah to participate in the historic 8th Tri-ennial General Conference Inaugural Session on 8th March 2008, at Chandigarh. Shri. Bansal, declared that the UPA Government has made it very clear that under no circumstances, the Government will allow equity to go down below 51% in the Public Sector Banks and would ensure that the banking industry remains under the ownership of the Government. Further, he stated that the Banks are given greater autonomy to ensure all-round growth of the banking industry.

He also referred to the recent agitation on the various issues by the United Forum of Bank Unions (UFBU) and complimented the leadership of the unions for its maturity and experience in dealing with the issues concerning the banking industry and also their own issues in the interest of the common man. “There is great disparity between the perception of ‘cost’ in respect of 2nd option on Pension between the IBA and the unions and they should meet and discuss to workout a final solution to the issue”, he stated. He also made it clear that the Government is not forcing the Merger of Banks on the workforce, but the unions should also consider the need for strengthening the banking industry in the background of implementation of Basel-II norms and the need to provide an additional capital of Rs.50, 000/- crores. The issue of Compassionate Appointment, Outsourcing and Recruitment etc., are being looked into by the Government. In democracy, the unions and associations have a pivotal role to play. “You have your own perception and are entitled to express to the IBA and Government for positive consideration of your issues…” declared Shri. Bansal.

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The Minister also covered very extensively various issues that are confronting the banking industry in the background of the changes that are taking place and the value addition by the unions through their experience in resolving those issues. The IBA is the bridge between the Government and the Unions and it is for the leadership to place all their views before the IBA so that they can take up the matter with the Government.

The function which attracted the attention of the fraternal organizations, media in the august presence of veterans commenced with a prayer. Thereafter, Com. Amar Pal, the General Secretary of the Confederation in his welcome address referred to the good gesture of the dignitaries on the dais for having accepted our invitation and gave a brief account of the ‘City Beautiful’ Chandigarh. He also made detailed reference to the background of the Confederation, its role and contribution to the growth of the banking industry. He referred to some of the initiatives that the Confederation has taken in order to oppose the ill-advised moves of the Government on the reforms in the financial sector and its efforts in getting an independent opinion from an outside commission on Banking and Financial Reforms and on the various issues that are pending at the Government level with particular reference to the 2nd option on Pension, Merger and Acquisition, Compassionate Appointment etc., which require immediate attention on the part of the Government. He also briefly touched upon the problems that the officers are facing and the need to find a solution to some of them including the regulated working hours for officers. He touched on the challenges that are ahead of the Confederation and urged upon the Government to look into some of the issues that have been the reason for the recent agitation by the employees and officers in the banking industry.

Shri. M. B. N. Rao, the Chairman of the Indian Banks Association and the Chairman and the Managing Director of Canara Bank, acknowledging the services of the employees and officers in the Banking Industry for their contribution to the growth of the industry and their excellent performance in achieving the targets of the Government, said that “the Indian Banking is safe in the hands of the experienced people at all levels, since the people who are at the helm of affairs including the Prime Minister of the Country have come from the banking background, and the Governor of RBI is a man of rich experience and known as professional banker, are responsible for protecting the interests of the industry. The challenges ahead are the WTO conditions that the banks should be liberalized as per the Basel-II norms and allow competition from the foreign banks. “You hold the key for the future of the country and once the banking growth is taken care of, all your demands will be resolved” stated Shri. Rao. “You need to address the issue of competition and should be proactive to ensure our continued contribution to the growth of GDP through priority sector lending. There cannot be retrenchment and we need to recruit more hands to achieve inclusive growth in the economy. The IBA has been taking all initiatives to ensure an early resolution of all the issues raised by the United Forum of Bank Unions and a time frame has already been drawn to address the issues raised by the unions.” said Shri. Rao

Com. C. H. Venkatachalam, the Convenor of UFBU and the General Secretary of AIBEA congratulated the membership of AIBOC for maintaining unity and solidarity in the banking industry. “The Confederation is the biggest trade union of the officers not only in the country but also in the whole world. Its

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contribution in consolidation of the Bank Officers’ movement and in bringing unity amongst the unions through the United Forum of Bank Unions by providing leadership over the last several years is well known to the trade union fraternity. The Banking Industry has performed well. We are only asking for a small share of prosperity to take care of some of our issues. We had so far 8 bipartite settlements in the Banking Industry covering over one million employees and officers in our country which is the biggest achievement. It is a record not only within the country but outside the country as well”. Further he added that we believe in bipartite relationship. If the Government and IBA are willing to take one step forward we will not be lagging behind in taking two steps forward towards finding solution to our issues. While, we believe in the inclusive growth, we believe that the welfare of the employees of the banking industry is also equally important for us he said.

Com. V. Eswaran, the President of the Confederation in his presidential address brought to the notice of the Hon’ble minister the precarious working conditions of the Officers and the security hazards they are subjected to when they visit the interior parts of the country for the banking business including the threat of losing their lives. He drew the attention of the dignitaries sitting on the dais about the recent killing of the Officer of State Bank of Indore at Vizag when he was on his official duty for recovery of loan. The Officers are under a lot of pressure. The Govt. is attempting to force the revised pension scheme knowing well that the Officers organizations have signed a settlement with the IBA on the pension scheme. The joint note signed by AIBOC on the pension scheme is an agreement and is very important and the officers will not tolerate any discrimination on this count stated Com. Eswaran, amidst roaring applause from the audience. He also highlighted the difficult working conditions of the officers and frequent denial of several legitimate demands. “We have to take care of the problems of our comrades also before talking about the Society at large”, he observed. The HRD in Banks is at the lowest ebb, declared our beloved President on the occasion.

Shri. M. B. N. Rao, Chairman of IBA, thereafter released the special issue of Common Bond brought out on the occasion of the 8th Triennial Conference. He handed over the first copy to Com. R. N. Godbole, the founder General Secretary and also the first Editor of the Common Bond as a mark of respect to the veteran leader.

Com. G. D. Nadaf, the Joint General Secretary proposing the vote of thanks in his inimitable style drew the attention of the House to the responsibility of the organization and the need to remain united to ensure the success of the 2nd option and other issues. He said that the Confederation will strive to ensure in the next salary revision that the working hours for officers are fixed. He also referred to the working conditions that are prevailing in the branches and the need for recruiting sufficient number of the clerks and officers in the interest of the banking industry. He thanked the dignitaries on the dais and all the guests, delegates, observers, volunteers, state unit leadership and all those who have toiled to make the function a grand success. The function concluded with National Anthem.

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BUSINESS SESSION:

On the 9th March 2008, at 10.30 a. m Com. V. Eswaran, the President of the Confederation took the chair and called the meeting to order. In his opening remarks, he drew the attention of the delegates and observers to the challenges that are ahead of us and the need for maintaining the unity of the organization. Com. Amar Pal, General Secretary presenting his report made reference to the National and International developments which included several issues relating to the common man affecting the country as a whole. He dealt at length on the issues relating to the trade union movement in general with particular reference to the banking industry, the labour scenario and the industrial relations in the country and at International level. He also elaborately dealt with the organizational developments, the struggles launched by the Confederation and the affiliates of the Confederation, the organizational activities at all levels and also the various diversified activities that are being taken up by both the Confederation and its Affiliates. The report also covered very exhaustively the Nationalistic outlook of the Confederation and its commitment towards the common cause and at the same time ensuring the welfare of our own members on all counts. Large numbers of delegates spoke on the General Secretary report. The General Secretary replied to the various points raised by the members and thereafter the report along with accounts, amendments to the bye-laws and resolutions presented before the house were adopted.

TOUCHING MOMENTS:

A gratifying event that took place in the midst of the Business Session was the felicitation to the past Presidents and General Secretaries of the Confederation as token of love and affection for their valuable contributions to the Bank Officer’s Movement. It was an emotional moment for every one, present in the Conference to see Veterans beginning from the movement Com. L. V. Subramaniam, Com. R. N. Godbole, Com. S. R. Sengupta, Com. Umed Singh, Com. A. K. Jana, Com. R. C. Agarwal, and Com. Shantha Raju, honored on the occasion. Com. G. D. Nadaf, the Joint General Secretary of the Confederation presented a brief resume about the contributions made by these stalwarts for the success of the trade union movement recalling their sacrifices and struggles in carrying forward the banner of the Bank Officers movement against all odds braving the challenges posed by the managements and successive Governments during their days in the office. Com. L. V. Subramaniam, former General Secretary of All India State Bank Officers’ Federation and All India Confederation of Bank Officers’ Organization expressing his thanks on behalf of all the veterans honoured on the occasion, made a spirited appeal to fight injustice and atrocities committed on our membership by the managements and also the Government.

ELECTIONS: Com. V. Kumaresan, IOBOA and Com. M. V. Mahesh of ABOA was appointed

as Returning Officers by the General Conference. They completed the process of election. Com. V. Eswaran and Com. G. D. Nadaf have been elected as President & General Secretary of the Confederation respectively for the Triennial term. From our organization Com. T. T. Natarajan, Secretary General of our All India Body and Com. K. Chandrasekaran, President of our All India Body were elected as Vice President and Deputy General Secretary of AIBOC respectively. Com. Tapan

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Majundar, General Secretary of our Eastern Zone Unit has been nominated as Executive Committee Member of AIBOC.

The outgoing General Secretary Com. Amar Pal was offered felicitations and given a touching farewell. Responding to the felicitation, he thanked the outgoing committee and wished that under the new leadership, the Confederation would scale to greater heights in the days to come.

Comrades, the 8th Triennial General Conference has truly depicted the conviction and commitment of the rank and file in strengthening the Bank Officers’ Movement. Let us march forward with solemn commitment, exemplary unity and solidarity to carry forward the banner of the Confederation to greater heights and glory in the days to come.

With warm greetings,

Yours Comradely,

T. T. NATARAJAN SECRETARY GENERAL

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CIR. NO: AI / 03 / 2008 – 2011 Date: 22.03.2008

TO ALL MEMBERS PLEASE CIRCULATE

Dear Comrades,

Industry Level Developments

1. Corporation Bank Officers’ Organization on War Path:

The Corporation Bank Officers’ Organization, one of the militant and committed affiliate of the AIBOC has resorted to agitation after having exhausted all means of persuasive efforts to break the stalemate in the industrial relations in the Bank. The leadership of the Corporation Bank Officers’ Organization submitted memorandum bringing to the notice of the management the violations on the agreed policies. Unfortunately the Management of Corporation Bank is not able to see the reason in the arguments put forth by the leadership. The provocation is on the increase. Instead of attempting to resolve the issues the Management has resorted to highhanded actions. Left with no alternative a notice of a Day’s Token Strike on Monday, the 31st March 2008 has been given by our affiliate.

2. Industrial Relations in Punjab National Bank is in lowest ebb – Joint Struggle with workmen unions:

The Employees and Officers in Punjab National bank are on war foot. The All India Punjab National Bank Officers’ Association and the All India PNB Employees’ Federation have come together for collective action against unilateralism that has set in the Punjab National Bank in the recent past. The Joint Forum has made all out efforts to defuse the situation through submission of Memorandum jointly adopted by them in order to ensure the intervention of the CMD in the matter. As no positive response from the Management has emerged, the joint forum has given a call for One Day All India Strike on 31.03. 2008.

3. Andhra Bank Launches agitation programme to realize long pending demands:

The bilateral machinery at Andhra Bank has failed thereby leading to industrial crisis in the Bank. Our Affiliate the All India Andhra Bank Officers’ Federation (AIABOF) has issued a strike notice demanding implementation of agreed items as arrived in JCC meetings, I.R. Policies, Officer friendly HR policies in the Bank, withdrawal of harsh / disproportionate punishments in Disciplinary cases, attitude of Management vis-à-vis disciplinary matters etc. The management so far has not affirmatively responded to the issues so far. AIABOF has launched a series of agitation programme culminating in One Day All India Strike on 31.03.2008

Comrades, the Management of few Banks have targeted the Associations and leadership to harass and create fear psychosis in the minds of general membership. They are envying our unity and instead of channalising the

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energy of workforce for constructive activity ,they are towing the line of destructive activity, posing a fresh challenge to our existence. Hence we request all our members to extend all fraternal support to the agitation of Corporation Bank Officers’ Organization and All India PNB Officers’ Association and All India Andhra Bank Officers’ Federation in their demonstrations / dharans / rallies etc in their action for protection of hard earned trade union rights.

4. Victimization of Office-Bearers and Members in Central Bank Of India:

The Industrial relations in Central Bank of India is in bad shape with constant attack on the Trade Union Rights of the Officers and Employees working. The Management has let loose the rein of terrorism through series of victimization of leaders and members of our Affiliate of the All India Central Bank of India Officers of their legitimate trade union activities. The Management has resorted to a series action undermining the existing agreements and understandings reached through their bilateral discussions in the structured forum. The Management not only resorted to disciplinary action but has taken actions through suspension and dismissals in order to terrorize the officers’ community.

5. Discussions with IBA: UFBU in its meeting held on 03.03.2008 at Mumbai formed Sub-Committees to go further into further details on the various issues to effectively present and pursue our important demands. The Sub-Committees are as under:

PENSION OPTION COMPASSIONATE APPOINTMENT

OUtSOURCING

Com C H Venkatachalam – AIBEA (Convener)

Com V Eswaran – AIBOC

Com Milind Nadkarani – NCBE

Com K K Nair – INBOC

Com Pradip Biswas – BEFI

Com Alok Khare – AIBOA

Com Subhah Sawant – INBEF

Com Bapu Joshi – NOBO

Com V K Gupta – NCBE

(Convener)

Com B S Mulye – AIBEA

Com Prakash Gangal – NCBE

Com S Nagarajan – AIBOA

Com G M V Nayak – BEFI

Com O P Sharma – INBEF

Com Ashwini Rana – NOBW

Com Rajen Nagar – AIBEA (Convener)

Com L Balasubramanian – NCBE

Com G D Nadaf – AIBOC

Com S N Dutta – AIBOA

Com K Krishnan – BEFI

Com S B Menon – INBEF

Com Varthak – INBOC

Com Dinesh Kulkarni – NOBW

In the meeting held with IBA on 03.03.2008 first round of preliminary discussion were held and it was decided to continue the discussions on 18.03.2008. Accordingly, another round of bilateral discussions took place

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between IBA and UFBU in Mumbai on 18.03.2008. In the discussion with the IBA, UFBU had detailed discussions on suggestions on compassionate ground appointments as well as on outsourcing. Discussions were inconclusive and will continue in the next round of meeting to be held at Kolkata on 25.03.2008.

In the meantime, IBA and UFBU have finalized a common panel of two actuaries to deal with the issue of Pension Viz., Mr. D Basu from Kolkata and Mr. K P Sarma from Hyderabad. A meeting of IBA and UFBU with actuaries will also be held on 25.03.2008 at Kolkata.

We note to keep members informed of further developments.

With greetings,

Yours Comradely,


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CIR. NO: AI / 04 / 2008 – 2011 Date: 01 04 2008 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

OUR DEAR BANK CROSSES ONE LAKH CRORE BUSINESS 31 03 2008 would be remembered as a Historical Day in the journey of

our Mother Institution - Indian Bank. It is on this day, we have crossed

the coveted business position Rs. One Lakh Crore mark. We convey our

hearty congratulations to Shri. M. S. Sundara Rajan, Chairman and

Managing Director, Shri. A. Subramanian, Executive Director,

General Managers, the team of Executives, all our members and each

and every staff of Indian Bank who made this achievement possible.

On this glorious occasion, we proudly recall the role played by the

Unions and Associations in the Bank in the task of rebuilding the

Institution when it was branded as weak and the efforts put in by the

staff in making the turnaround possible. As rightly observed by our

General Manager (HRM), Shri. V. Srinivasan in the IP message given

under the caption – “The Bygone year 2007-2008,” there cannot be a

better way to salute our mother Indian Bank on the year she had

completed a century.

The exhilaration and enthusiasm displayed by our comrades on this

happy occasion has to be seen to be believed. It would not be an

exaggeration if we claim that we have proved wrong the prediction of

the arm chair pundits that with the increasing age and waning energy of

the staff, the public sector banks would not be able to excel. On the

other hand, we have proved that with the spirit of oneness, unity and

bonding and preparedness for sacrifice, we can create history.

As an organization, we always believe that the well being of the staff

flows from the well being of the Institution. Now that we have achieved

the coveted business position of Rs.One Lakh Crores and are committed

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to move forward, we need not emphasize the need to connect the

prosperity and the well being of the Institution to the people who made

it is possible and we hope that the steps will be right earnestly initiated

in that direction.

It is said that success is not a destination but it is only a beginning of a

journey for scaling of new heights. It is also said that it is always easy

to achieve success but it is difficult to sustain the same. Let these words

be the guiding factors in our ongoing journey and let us take a fresh

guard to make a fresh start to scale further heights and in that direction

let us follow the six mantras of success – they are: customer, human

capital, growth, innovation, initiative and discipline mechanism.

We wish each and every one of you a successful and prosperous

operational New Year.

With greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

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CIR. NO: AI / 05 / 2008 – 2011 Date: 02 04 2008 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

TAX ON PERQUISITE VALUE ON INTEREST ON STAFF LOANS AND LEASED ACCOMMODATION

We would like to inform our members that we had filed Writ Petitions (Writ Petition

No.4012/2008 and 4163/2008) before the Hon’ble High Court of Madhya Pradesh at

Jabalpur seeking intervention of the Court for appropriate interpretation on Income Tax

Rules on Perquisite Tax on Staff Loans and Leased Accommodation.

We are glad to inform our members that with regard to Tax on Perquisite on Interest on Staff

Loans, the Hon’ble High Court had passed interim orders that the tax shall be deducted in

accordance with the cost to the employer and not in accordance to the SBI lending rate. In

the matter of deduction of tax on perquisite value of leased accommodation and furniture,

the Court, as an interim measure had directed that the deduction of tax would be from 07 11

2007 only and the deduction for the earlier period is stayed.

We have communicated the above mentioned directions of the Hon’ble Court to the

Management and has requested for issuance of necessary instructions in compliance to the

directions issued by the Hon’ble High Court of Madhya Pradesh.

We request all our members to kindly take note of the above developments and avail the

applicable relief. We note to keep the members informed of further developments.


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CIR.NO.AI /06 / 2008 - 2011 Date: 04 04 2008

TO: ALL MEMBERS PLEASE CIRCULATE

Dear Comrades,

UFBU MEETING HELD AT MUMBAI ON 03 04 2008

UFBU meeting was held at Mumbai on 03 04 2008 and thereafter UFBU met the IBA

and submitted the suggestions on Compassionate Appointment. The justifications

for our demands and details of our suggestions are enclosed in the UFBU Circular

No.13 dated 03 04 2008 which we are reproducing for the information of our

members.

With Greetings,

Yours Comradely,

T T NATARAJAN

SECRETARY GENERAL

TEXT OF UFBU CIRCULAR NO.13 DATED 03 04 2008 QUOTE:

UFBU MEETING HELD AT MUMBAI ON 03 04 2008

UFBU meeting was held today in Mumbai. Com. Subhash Sawant (INBEF) presided over the meeting. 1. COMPASSIONATE APPOINTMENT: Further to the discussions held with the IBA on 18th and 25th March, 2008, in today’s meeting, UFBU finalized its detailed views and suggestions on compassionate appointment scheme. Thereafter UFBU met the Chief Advisor (Personnel), IBA and submitted its suggestions.

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The summary of the justifications for our demand and details of our suggestions submitted to IBA are furnished herein for the information of our unions and members. IBA agreed to forward our views to the Government for their consideration as agreed in the MOU dated 25-2-2008. 2. PENSION OPTION: Further to the discussions held with the panel of Actuaries at Kolkata on 25-3-2008, the necessary data asked for by them have been provided to them by the IBA and the same is being processes by them. Further discussions will take place after hearing from the Actuaries. 3. OUTSOURCING: It has been decided to hold an exclusive meeting for the purpose of discussing the various aspects of the issue relating to outsourcing to enable the UFBU to concretise its views and demands for further discussion with the IBA. 4. DISCUSSION ON WAGE REVISION DEMANDS: We have already submitted our common charter of demands for wage revision and we are informed by IBA that the formal discussions on our demands will commence before the end of this month. 5. MERGER OF BANKS: In our recent MOU dt. 25-2-2008, on the issue of merger of Banks, the IBA submitted that there are no directions or guidelines from Government of India to banks on the subject of merger/consolidation of banks. The UFBU did not agree with the view of IBA and strongly maintained that IBA should ensure that management of Banks should not proceed with the merger unilaterally without addressing the concerns of the Unions. While the attempts of mergers have slowed down, there are overt and covert attempts especially by the by SBI management to somehow go ahead with their agenda of mergers. The meeting decided that if any attempts of merger are revived, UFBU will also be constrained to revive its struggle.

“ JUSTIFICATIONS FOR COMPASSIONATE APPOINTMENTS IN BANKS

1. Compassionate appointments were being made in Banks as per scheme advised by Government in 1978. 2. From 1996, based on Supreme Court judgement in Nagpal case, compassionate appointments were being given duly taking into account the viewpoints of the Supreme Court. 3. Even the Supreme Court in the Negpal case (1994) has not prohibited or banned compassionate appointments. 4. In 2000, Supreme Court has given another landmark judgement in Balbir Kaur Vs SAIL directing compassionate appointment. There have been various other judgements also indicating that Compassionate Appointments can be given to the dependent on the death of an employee. 5. For 2004, Compassionate appointments have been totally banned in Banks quoting Nagpal judgement even though there is no such ban order in that judgement. 6. Even today, even after the Nagpal judgement, compassionate appointments are being given in Central Government. 7. Various State Governments continue to give compassionate appointments.

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8. In Railways, various Public Sector Undertakings, Private establishments, compassionate appointments are being given. 9. Within the financial sector also, in RBI & LIC, compassionate appointments scheme continues and appointments are being given. 10. Within the banking sector, private banks also give compassionate appointment. 11. The arguments that compassionate appointments lead to surplus staff is a fallacy. There is large number of vacancies unfilled in the Banks and acute shortage of staff is the reality. 12. Number of Banks have started the process of recruitments. There may be surplus pockets, if at all, in some area or place, but there is no surplus staff in any Bank as a whole. 13. The incidence of death in harness is very negligible. It is less than 0.50% of the total employees per year on an average. 14. Even if the widow / family of the deceased employees are offered employment, the number will constitute a very small portion of the available vacancies. 15. In fact, some of them will not be eligible for a job for want requisite qualification and some widows may not take up the job due to family circumstances. Hence the actual incidence of jobs on compassionate ground will by very marginal. 16. Invariably, the deceased employee happens to be the main or sole breadwinner of the family and his death while in service destabilizes the entire economics of the family. A job on compassionate ground is a great support to the family in distress. 17. It may be further mentioned that when an employee retires from service, they get the lump sum commuted value of pension but when an employee dies while in services, this amount is not payable. 18. It is also a fact that bank employees being middle-class employees resort to loans and borrowings to make both ends meet. These loans are not only from the Banks but sometimes from other recognized sources also. When an employee suddenly dies while in services, the savings or terminal dues go to liquidate these loans and the family is facing difficulties. 19. Further, in these days of changed economic conditions, after the death of the bread-winner, the widow is needed to take care of the education of the children and marriage of the daughters which sucks a substantial portion of whatever the family gets as terminal benefits 20. To sum up: UFBU submits that compassionate appointments can be given in the Banks since: a) Supreme Court has not banned compassionate appointments. b) Banks’ scheme on compassionate appointment is based on Government guidelines only. c) Compassionate grounds appointments are available in Central Government, State Government, Public Sector, RBI, LIC, Railways, Private Sector, etc. and denial of the same only to Banks appears to be discriminative. d) No. of deaths of employees in service is marginal

18

e) Banks require a lot of additional staff in the coming years. f) If prescribed qualification for normal recruitment is ensured in compassionate appointments also, it will not create any problem relating to quality. g) Compassionate ground appointments may be given in the banks without violating the guidelines of Supreme Court judgements. UFBU’S SUGGESTIONS on COMPASSIONATE APPOINTMENTS: a) DEATH WHILE IN PERFORMANCE OF DUTY: In cases of deaths during performance of duties/related to duties in all contingencies including cases where an employee dies while resisting robbery, dacoity, terrorist attacks, attack by borrowers/other while on recovery and other duties, fatal accidents, death during office hours, etc. compassionate appointment to be extended to the spouse or dependent son/daughter. b) DEATH ARISING OUT OF TERMINAL DISEASES: In the cases of deaths due to employees suffering from terminal diseases like cancer, etc. compassionate appointment to be extended to the spouse or dependent son/daughter. c) DEATH DUE TO NATURAL CALAMITIES, ETC. Spouse/dependents of employees who lose their lives in natural calamities, violence, civil commotion, etc. to be considered for compassionate appointment. d) MISSING EMPLOYEES: Wife of an employee who has been missing and not traceable for more than 2 years to be considered for compassionate appointment. e) OTHER DEATHS IN HARNESS/DURING SERVICE: In all other cases, the widow of the deceased employee to be considered for compassionate appointment subject to the widow being 50 years of age and below. f) PREMATURE RETIREMENT DUE TO INCAPACITATION: In cases where an employee becomes physically incapacitated due to medical grounds, he may be permitted to retire prematurely and his dependent may be considered for employment in the Bank provided such an employee is 55 years of age and less.

g) If the deceased Employee is a widower, his son / daughter to be made up eligible for compassionate appointment. OPTION FOR EX-GRATIA LUMP SUM: In case the widow is unable to accept the employment in the Bank due to genuine reasons though otherwise eligible for compassionate appointments, she may be given an option to avail of ex-gratia payment in lieu of employment. EX-GRATIA SCHEME: In all other cases not covered under (a) and (g) above, ex-gratia payment should be made to the dependent / family based on 80% of the last drawn emoluments for the remaining years of service with a ceiling of Rs. 9 lacs for subordinate staff, Rs. 10.50 lacs for Clerical staff and Rs. 12 lacs for officer staff with suitable minimum compensation amount.

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OPTION FOR MONTHLY INCOME: Further an option should be given to the widow / family to avail of the ex-gratia on monthly basis by keeping the ex-gratia amount with the Bank as a deposit for a period upto the notional date of retirement of the deceased employee.

UFBU SUGGESTS THAT A CEILING ON COMPASSIONATE APPOINTMENTS IN AN YEAR MAY BE FIXED AT 2% OF TOTAL NUMBER OF EMPLOYEES IN A BANK IN THAT YEAR.

Qualification: Qualification as applicable to normal recruitments may be prescribed Age - Suitable relaxation in age to be given

Waiver of Loans: Housing Loan and other staff loans availed by the deceased employee may be waived upto a ceiling amount and provision for continuation of staff Quarters for 2 years as in the case of RBI.

Financial condition of family/widow to be considered with relaxations, compassion, sympathy, other recognizable debts/loans of deceased, future liabilities like marriage of daughters and education of children, medical expenses and exclusion of normal savings, own PF, personal insurance policies, income from house, family pension, etc. from income criteria. Some standard minimum liability norms may also be worked out.

Notional monthly income from out of net available funds after adjusting liabilities to be calculated at 5% interest p.a. since a portion of it has to be kept in savings account for immediate contingencies and only a portion of it can be invested in Fixed Deposits.

Regarding extant guidelines relating to disciplinary action against the deceased employee, the same needs to be reviewed since any charge or action will abate with the death of the employee.

Applications received up to 1 year from the date of death to be considered.

Where the dependent is minor or under-qualified, their representation can be registered and accepted provided four years time may be given to reach the age of majority or to acquire the necessary qualification.

Applications for compassionate appointments / ex-gratia should be considered within a period of three months.

All the past cases should be reviewed / reconsidered based on the modified scheme as above. “ Yours comradely, Sd/- C.H.VENKATACHALAM CONVENER

: UNQUOTE

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CIR.NO.AI /07 / 2008 - 2011 Date: 05 05 2008 TO: ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

Performance of our Bank for the year 2007-2008

For us in Indian Bank, nothing can be more satisfying than the achievements on the business front as we all gave up our past to put the Institution back on the rails. The sacrifices made by the Indian Bank family needs no reiteration and it would not be an exaggeration to say that but for that sacrifice Indian Bank would not have earned the name of “COME BACK BANK”. The Bank had not only completed its Centenary Year but also posted excellent results for the year 2007-2008.

The business of the Bank crossed Rs.One lakh crore to Rs.1,00,823 crore as on 31 03 2008 from Rs.76,593 crore as on 31 03 2007. The total deposits grew by 30% over the previous year to Rs.61,046 crore, an increase of over Rs.13,955 crore, gross advances have gone up by 35% to Rs.40,228 crore and gross NPA has down to 1.21% from 1.85% in March 2007. The Bank has posted a net profit of Rs.1,008 crores. With all these results, our market share in deposits is only 1.70% and credit 1.60% which indicates that we have a long way to go. In the above background, the Business Plan Conference was held and our Chairman & Managing Director, Shri M S Sundara Rajan inaugurated the Conference on 25 04 2008. In his inaugural address, he impressed upon the need to have milestone approach instead of mere target approach, promoting of business values and ethics, importance of attendance and punctuality, promotion of a sales culture at all levels with every staff contributing to the growth of business, continuous building of relationship with customers and concluded by saying that the best from the Indian Bank staff is yet to come and it should be tapped. In the course of his address, the Chairman & Managing Director indicated that he is not for holding of meetings on holidays and Sundays and he would desire that all officers leave the office by 7-30 PM as staying too longer will not promote efficiency. Shri A Subramanian, Executive Director, in his address stressed on the need to reduce the cost of deposits, improving the export business, need for timely lending and effective monitoring taking advantage of the CBS environment and focusing our attention to earn maximum profit from operations as earning profit from recovery of MOI which was on account of old NPAs has almost

21

dwindled down. He expressed his concern over increasing customer complaints and frauds. From our Association, we have presented our views in the form of a write up. We have assured our Chairman & Managing Director and Executive Director that we will extend full cooperation in promoting trust based relationship and laying the best foundation in the Institution’s journey towards the next century and scaling of new heights. We thanked the Chairman & Managing Director for restoring and reinstating the institutional mechanism of Staff Welfare Fund by transferring Rs.15 crores from the Net Profit. We conveyed our sincere appreciation to the General Manager (HRM), Shri V Srinivasan and the entire HRM team for issuance of transfer orders well in time thereby removing the uncertainty on this front. We have impressed upon the Chairman & Managing Director the urgent need to resolve the long pending issues of augmenting more manpower, increase in rental ceiling and conveyance reimbursement scheme, payment of gratuity and Bank’s contribution of PF to those who are subjected to the decision of loss of livelihood, introduction of circle level consultative forum which would serve as a two way communication between the Management and the Association in sharing the business vision of the Bank and resolving the issues concerning the officers. Comrades, the Institution belong to all of us. The workforce of Indian Bank is looked upon with respect and regard in the industry for their role in rebuilding the Bank. In the given competitive environment, there is a need to rededicate for the rapid business growth of our Bank. We call upon each and every one of you to contribute your mite in taking our beloved Bank to greater heights.

With Greetings,

Yours Comradely,

SECRETARY GENERAL

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UFBU DEMANDS EARLY RESOLUTION OF 2ND OPTION ON PENSION AND OTHER ISSUES

The Executive Committee of AIBOC met at Chennai on 12th and 13th May 2008. The Executive Committee deliberated at length on the pending issues and also the Problems of the Officers working in North Eastern (NE) Region. On the problems of Officers working in NE region the Committee was of unanimous view that the present discrimination in regard to the payment of Special Allowance / Incentives in respect of the Officers hailing from the NE region is a great injustice and has to be sorted out by ensuring the extension of these benefits to them as well. In accordance with the decision of Executive Committee, AIBOC on 16.05.2008 has sent a suitable communication to the Chairman of IBA seeking extension of these benefits to all the officers working in the NE region. On the other pending issues, which remain unresolved the members of the Executive Committee expressed their anxiety and felt that the matter should be taken up with UFBU to bring pressure on IBA to stand by their commitment and to ensure that the deadline fixed for resolution of each issue should be honoured by them. Accordingly, the matter was taken up by the AIBOC leadership with UFBU and a communication has been sent by Com C H Venkatachalam, Convener, UFBU to IBA. The text of UFBU letter is reproduced for the information of our members. Quote:

Text of UFBU Letter No UFBU/2008/L-7 dated 15.05.2008 addressed to the Chairman of IBA

You are well aware that after our recent agitation and proposed strike actions, with the intervention of the Government and IBA coming forward to find amicable solutions to our long pending demands, an MOU was signed on 25.02.2008 between IBA and UFBU by which the strike programmes were withdrawn and discussions were agreed to be held to resolve the issues by mutual discussions. You will appreciate that the signing of the MOU and withdrawal of the programmes were based on extraordinary mutuality of understanding and earnestness to find solutions to the issues through bilateral discussions. But we are getting an impression that the earnestness is slowly evaporating as things are not moving with the speed with which they should.

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1. IBA informed us that the issue of covering employees between 01.11.1993

and date of Regulations under Pension Scheme has been recommended to Government on 08.03.2008. Two months are over but we are yet to hear anything from the IBA or Government further in this regard.

2. Regarding Compassionate Appointments, we have submitted our detailed

suggestions to the IBA and we were informed that the same have been sent to the Government on 09.04.2008. On this important issue also, we are not aware of further developments.

3. As regards Outsourcing, no date for discussions has been fixed up and the

same needs to be expedited.

4. On the important issue of Pension Option, we had the last round of meeting with the Actuaries on 25.03.2008 and the things have not moved further. No further meetings have been held. Hence we may overshoot our time frame.

In the first round of meeting held between IBA and UFBU on 03.03.2008, it was agreed to resolve the issues within a time-frame. You will appreciate that the delay is naturally causing anxiety to the rank and file. Hence it is important that we should adhere to the time schedule and move in the matter earnestly avoiding further delays. We shall thank you for your personal attention and intervention in the matter. Sd/- C. H. Venkatachalam Convener UnQuote: We note to keep the members informed of further developments. With greetings, Yours Comradely, SECRETARY GENERAL

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1. Tripartite meeting with IBA and Actuaries

The tripartite meeting between the IBA, UFBU and Actuaries was held at Kolkata on 09th June 2008. The UFBU was represented by Presidents and General Secretaries of its constituents, while the IBA was represented by its team of 7 members. The Actuaries presented their suggestions on various assumptions on arriving at cost of pension. During the discussions, UFBU raised a number of points for clarifications and felt that, there is a need to finalize the assumptions with IBA, before it is given to the Actuaries for calculation of cost of pension. Accordingly, the meeting between IBA representatives and UFBU leaders was held at Mumbai on 13.06.2008 to finalize the common parameters for calculation of cost of 2nd Option on Pension. The IBA has requested for some more time and said that it is in the process of collecting certain data from the member Banks on parameters to finalize its views. Hence it has been decided that tri-partite meeting will take place again by next week to come to conclusions on parameters /assumptions. As the deadline for arriving at the settlement on 2nd Option on Pension has already crossed, UFBU has urged upon IBA to expedite the process so that the issue is resolved within a reasonable period. We note to keep the members informed of further developments.

2. Confidential Report of Employees Communication of contents necessary, says Supreme Court

1. Tripartite Meeting with IBA and Actuaries 2. Confidential Report of Employees - Communication of

Contents necessary, says Supreme Court

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In the landmark judgment, the Supreme Court has emphasized the need for transparency in the performance evaluation of the employees. It has held that an employee should be mandatorily communicated about the contents of his annual confidential report so as to enable him to appeal against the same.

We reproduce below the Text of AIBOC letter addressed to the Chairman IBA on this issue, for information of our members.

We note to keep the members informed of further developments. With greetings,

Yours Comradely,

T. T. NATARAJAN SECRETARY GENERAL _____________________________________________________________________________

Quote: Text of AIBOC letter No.1452/148/08 05.06.2008

Written to the Chairman of IBA

Dear Sir,

HR INITIATIVES – SHARING OF CONTENTS OF CONFIDENTIAL REPORT WITH OFFICERS – RECENT JUDGMENT OF SUPREME COURT

In one of the recent judgments by the Supreme Court civil Appeal No. 7631 of 2002 the Hon’ble Justice H..K..Sema and Markendeya Katju while disposing the case of Sri Dev Dutt, an employee with the Border Roads Engineering Services, ruled that the contents of Annual Confidential Report is no longer secret and the employee has a right to know the same so that he will have an opportunity to contest in case he does not concur with the recording of report and can appeal against the same. The Hon’ble Court further observed that “We are developing the principles of natural justice by holding that fairness and transparency in public administration requires that all entries (whether poor, fair, average, good, very good, outstanding) in the annual confidential report of a public servant whether in civil, judicial, police or any other State services (except in military), must be communicated to him within a reasonable period.” 2. The ruling is a land mark in the history of transparency in the administrative systems and, in particular the HR initiatives. Such a transparency provides the employee an opportunity to know what are his strengths and weaknesses and,

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also make necessary amendments to correct himself to earn a good rating if need be. “The State must be a model employer and must act fairly towards the employees. Only then would good governance be possible” declared the bench. It further adds that the departments should also provide for an appeal system to enable the employee to contest the rating, which should be heard by one grade above the reporting authority. The Court also held that nondisclosure of ACR contents to a public servant amounted to arbitrariness that violated Article 14 (right to equality before law) as it amount to deprival promotional opportunities of the employee concerned. 3. The Banking Industry for all practical purposes are an extended arms of the State and the officers are considered as Public Servants and, are eligible for all the rights and privileges of the Civil Servants in the matter of litigation etc., The Service Rules of the officers in banking industry are the replica of the Civil Service Rules framed by the Government of India and, are considered as statutory rules. Hence, the rules laid down in the above judgment are equally applicable to the Officers working in the banking industry in letter and spirit. The court while deciding the case has laid down as under:- a) The Government Servants have a right to know the contents of the ACR – which is considered for the purpose of promotion, transfers etc. b) The Government Servants should be advised of their ratings and contents of the Annual Confidential Report – in order to ensure transparency in the administration. c) The Government Servant has a right to contest any of the contents of the ACR and appeal against the same to an authority who is higher than the one who was responsible for the preparation of the Confidential Report d) Non-supply of the contents of the Confidential Report to the employee concerned amounts to violation of Article 14 and denial of the principles of Natural Justice to him. 4. The principles that have been laid down in the above case are equally applicable to the Officers working in the Banking Industry. We, therefore request you to kindly look into the matter and issue appropriate guidelines to the banks to incorporate the above provisions in the service rules and implement the same in letter and spirit. 5. Please treat the matter as urgent,

Unquote

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CIR. NO: AI /10 / 2008 – 2011 Date: 24.06.2008 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

Long Pending Financial Demands

The enhancement of rental ceilings, increase in the fuel

reimbursement limits and lump sum conveyance are long overdue.

The issues were repeatedly raised in the informal and formal

meetings with the Management and we have been urging for an

early solution. Recently, we have met the Chairman & Managing

Director and the Executive Director and impressed upon them

about the urgency of the matter and we are assured that the

issues will be resolved shortly. The text of the communications

sent to the Chairman & Managing Director, in this regard are

reproduced for the information of our members.

We have already informed our members that an amount of

Rs.15 crores has been apportioned from the Net Profit for the year

31 03 2008 towards the Staff Welfare Fund. Keeping in view that

fresh staff welfare measures have to be evolved and put in place,

we have requested the Management to introduce the facility of

medical check up for all employees and their spouses, One time

mediclaim policy for retirees on superannuation and certain other

schemes.

We note to keep the members informed of further developments

With greetings,

Yours Comradely,

T. T. NATARAJAN SECRETARY GENERAL QUOTE

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Text of our letter dated 04 06 2008 on Enhancement of Rental Ceilings addressed to Chairman & Managing Director,

Sub: Enhancement of Rental Ceilings

Our request for enhancement of Rental Ceilings has been repeatedly focused in all the formal and informal meetings seeking your intervention for an early solution. This issue was raised in the Central Consultative Committee Meeting held on 26 10 2007 and the recording / decision conveyed by the Management was as under.

“Representatives from the Association submitted that the Rental Ceilings for leased accommodation provided to the Officers of the Bank was less when compared to ceilings prescribed in peer banks. They also put forth that Officers had to shell heavy amount out of their pocket due to the prevailing rentals.

Management assured to examine the issue”

In the above background, Officers were expecting for a sizeable enhancement in the rental ceilings and their expectations have become manifold after our Bank had posted a Net Profit of Rs.1,008 crores. Moreover, a stage has now been reached that Officers cannot get any reasonable leased accommodation with the prevailing rates allowed by the Bank.

Getting a leased accommodation has become an uphill task. In a metro city like Chennai, even to get a single room flat, one has to offer more than Rs.7,000/-. Similar is the state of affairs in other cities. The influx of IT professionals is the most commonly cited reason for the escalation of rental ceilings. House owners have begun to advertise with the clause “IT professionals preferred” virtually closing the doors for others working in different industries. Besides this, ten months advance has become a routine which salary earners can little afford. While this is the market related problem, in comparison with the other Banks, ours is the lowest and even after shelling out a substantial portion of the salary towards the rent, our Officers are able to get accommodation in the outskirts of the city and as a result they have to incur substantial expenditure by way of conveyance to reach their office and return.

For the purpose of comparison, we enclose the copies of the circulars communicating the rental ceilings allowed in Corporation Bank and Canara Bank. The rental ceilings communicated in these circulars were the rates approved by the respective banks in the year 2006 and we are given to understand that these banks are going to substantially increase the rental ceilings. Similar is the situation in other Banks and the prevailing rental ceilings may be

29

compared for confirmation of our views in this regard. Recently, State Bank of India had fixed the rental ceilings applicable to the Scale.I Officers at the level of Rs.10,000/- and we sincerely feel that no amount of further justification or reasoning is required to be put forth to convince the Management about the gravity of the situation.

The Officers of the Bank have contributed their best and this is reflected in the business results of the Bank. If not a luxury, atleast they deserve little comfort.

In the above background, we request the Chairman & Managing Director to kindly appreciate the urgency of the matter and do the needful for enhancing the rental ceilings atleast to the level of 100% increase from the present level so that the trend of Officers shelling out substantial portion of their salary towards rental is partially reversed.

** ** ** Text of our letter dated 20 06 2008 on Conveyance Reimbursement addressed to Chairman & Managing Director,

Sub: Request for enhancement of lump sum Conveyance expenses and fuel reimbursement limits

Ref: Our letter dated 22 10 2007 ** ** **

We draw the kind attention of the Chairman & Managing Director to our letter dated 22 10 2007 on the captioned subject wherein we have highlighted the following points.

1. The lump sum conveyance amount and the limit for fuel reimbursement were fixed way back in the year 1994.

2. The following are the prescribed limits.

a. Officers who have not been provided with bank’s vehicle and who are not availing fuel reimbursement facility would be reimbursed the conveyance expenses incurred by them upto a maximum of Rs.200/- per month on consolidated basis for the journey’s performed while on duty.

b. Fuel reimbursement limits (litres per month):

Scale Major ‘A’ Class

Area I Area II Other Centres

4W 2W 4W 2W 4W 2W 4W 2W I 25 15 20 15 20 15 20 15 II 30 20 20 15 20 15 20 15 III 35 20 30 20 30 20 25 20 IV 45 25 45 25 45 25 45 25

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3. The above limits were not revised since 1994. In fact, on account of the set back suffered by the Bank in the year 1996, we have signed two MOUs reiterating our commitment to the Bank and sacrificing some of the hard earned benefits inclusive of 15% in fuel reimbursement.

4. The bank has turned around and it is on the path of accelerated growth and hence our Association has been requesting the Management to enhance the limit for lump sum conveyance expenses and fuel reimbursement and the issue was repeatedly focused in Central Consultative Committee Meetings also.

5. The role of the officers had undergone an enormous change

over a period of time and the job role demands them to perform marketing, recovery, promotion of various allied activities and for this purpose they have to be on the move continuously and consequently incur a substantial expenditure towards conveyance. Besides this, the officer has to start early in the morning and he is unsure of his return time back to residence and mostly it is very late hours. This also adds to his conveyance expenses in a substantial manner. Many Banks have doubled / tripled their conveyance reimbursement limits during this period and in comparison to such Banks, ours would be the meager and negligible.

6. We have shown a patient wait for over 13 years and we feel

that it is time that the Management reciprocate and respond favourably to our request as the same is totally genuine.

For the year ended 31 03 2008, our Bank has posted a Net Profit of Rs.1,008 crores and the officers of the Bank naturally expect that their long wait for improvement in the financial demands inclusive of increase in the lump sum conveyance and the limits prescribed for fuel reimbursement would receive the due consideration of the Management. In view of the above, we request the Chairman & Managing Director to atleast increase the lump sum conveyance allowance to Rs.800/- and double the limits prescribed for fuel reimbursement as our peer/similarly placed Banks are allowing much more higher limits. For the purpose of comparison, we enclose the copies of the circulars communicating the limits of reimbursement of conveyance expenses allowed in Indian Overseas Bank, Corporation Bank and Canara Bank. We are given to understand

31

that these banks are going to further increase the limits shortly and steps are being taken in that direction. Similar is the situation in other Banks and the prevailing conveyance reimbursement limits may please be compared for confirmation of our views in this regard. We hope and trust that the Chairman & Managing Director would appreciate the genuineness of our requests and do the needful in this regard without further loss of time.

UNQUOTE ** ** **

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CIR.NO:AI/11/2008–2011 Date: 11 08 2008 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

PROTEST STRIKE ON 18th AUGUST 2008 BY ALL INDIA STATE BANK OFFICERS’ FEDERATION AGAINST MERGER PROPOSAL OF STATE BANK OF SAURASHTRA WITH SBI

** ** **

The UPA Government, immediately after winning the trust vote in the Parliament on 22.07.2008, declared that, all pending bills on financial and labour reforms will be pushed through in the monsoon session of the Parliament. As a first step, the Union Cabinet has cleared the proposal of merger of SBS with SBI and has decided to amend SBI Act, 1955, SBI (Subsidiary Banks’) Act, 1959 Banking Regulations Act, 1949, to repeal State Bank of Saurashtra Act 2008, to pave way for merger of Associate Banks with SBI. During 2007, Parliament has amended Subsidiary Banks’ Act 1959, to enable Associate Banks to function independently, out of the control of SBI, to raise capital in the market and to be managed by separate Chairman, for each of 7 Associate Banks. It is unfortunate that, within a year’s time, Union Cabinet has taken a ‘U’ turn in deciding to merge SBS with SBI. In fact, the performance of all Associate Banks, including SBS, is better than SBI. Their market share is more than SBI. The NPA is less than SBI. They are rendering yeoman service to the rural economy. They are competent to face any challenge in future. The IT, ATM and Treasury business are done on common platform But SBI is not allowing them to function independently with an ulterior motive to brand them as loss making banks and to remove them from the map of the Banking Industry. Merger is neither in the interest of stake holders nor that of customers and the employees. The culture of Associate Banks differs from the culture of SBI. The Government is trying to bring back class banking at the cost of rural poor. Hence, All India State Bank Officers’ Federation has decided to observe a day’s protest strike by the officers of State Bank of India and Associate Banks on Monday, the 18th August, 2008. In the event of management/government not retracing their steps, AISBOF is planning to resort to indefinite strike during middle of September 2008. In view of the above development, our national organization AIBOC has directed all affiliates to extend fraternal support to the fighting comrades of State Bank group by participating in their demonstrations on the day of

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strike. We, therefore, request all our members to extend their fraternal support to the common cause, as the disease, if allowed, may spread to the other Banks also.

GENERAL STRIKE ON 20th AUGUST 2008 –

FRATERNAL SUPPORT BY AIBOC

The Left oriented Central Trade Unions and certain other Unions and Associations in Financial Sectors have given a call for observing One Day General Strike on 20th August 2008 on the issues affecting the Working Class and also the issues concerning the Banking Industry. The Working Committee of AIBOC which met recently at Bangalore took stock of the developments had observed that AIBOC is sharing the concern of the Central Trade Unions but it is not in a position to participate in the direct action at this juncture. AIBOC has directed all its members to extend fraternal support by participating in the demonstrations / rallies organized in support of this strike. We request all our members to take note of the above decisions and be guided accordingly. With greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

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CIR.NO: AI / 12 / 2008 – 2011 Date: 14.08.2008 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

SALARY REVISION TALKS HELD WITH IBA

The Second round of talks on Salary Revision was held on 11th August 2008 with IBA. We reproduce below the Text of AIBOC Circular No.91 dated 12.08.2008 for information of our members. We note to keep the members informed of further developments. With greetings, Yours Comradely,

T. T. NATARAJAN SECRETARY GENERAL _____________________________________________________________________

Quote:

Text of AIBOC Circular No.91 dated 12.08.2008 A second round of talks on salary revision was held on 11 th August ’08 with IBA. The IBA was lead by Shri. M. V. Nair, Chairman Negotiating Committee with other members of the Committee. Shri. K. Ramakrishnan, newly appointed CEO was also present with other officials of IBA. The President Com. V. Eswaran & Com. G. D. Nadaf, General Secretary of AIBOC and representatives from three Officers’ Organizations participated in the negotiations. 2. During the opening remarks, Mr. Nair dealt on following points: (a) The market share of public sector and old generation private sector

banks is declining.

(b) Compensation package shall include incentives and cost to the

company (CTC) concept may be implemented in PSBs.

(c) By 2025, India will be the 3 rd largest industrial country.

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(d) China is having 3 banks in the list of Top Banks; where as Indian

Banks are at the bottom of the list.

(e) With in next few years, 270 million population will be between the age

group of 20 – 29 years.

(f) New generation private sector banks are far ahead of PSBs in terms of

market share, business growth, profitability and corporate business.

(g) It may be necessary to create “job family” to handle different types of

business with different salary packages.

(h) Technology, marketing and talent management will be at the centre

stage in future etc.

Thereafter, he briefed on developments on issues before IBA as follows: (a) 2nd Option on Pension: Common parameters to calculate additional cost on 2nd option on pension finalized and data as on 31.03.2008 will be provided to the actuaries to arrive at pension cost. It may take 1 – 2 months’ time to arrive at additional cost for 2 nd option on pension. It may have bearing on salary revision cost. The Department of Financial Services and Ministry of Finance have issued instructions to IBA to negotiate with UFBU on coverage of 11,032 employees and officers appointed between 01.11.93 and 28.09.95, under Pension Scheme. (b) Compassionate Appointment Scheme: The IBA, Management Committee has decided to suggest to government to cover spouse / dependents of employees / officers for appointment on Compassionate ground, who die due to terminal diseases like cancer. The ceiling on cash compensation will be improved to Rs.7.00 lacs, Rs.8.00 lacs & Rs.9.00 lacs in case of subordinate, clerical and Officers’ cadre respectively. The ‘penury’ has to be defined. (c) Outsourcing: IBA may present to UFBU leaders, a view on outsourcing during next meeting. To improve market share; Competition and profitability, and to control cost, outsourcing is necessary. The business of banks will be classified as core and non-core and non-core business will be outsourced.

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(d) Merger & Acquisition: There is no direction from Government of India on merger & acquisition. In the interest of stakeholders and employees, bank managements may consider merger and acquisition etc. 3. Thereafter, we responded to the points raised by the Chairman of IBA Negotiating Committee, as under: (i) The decline in market share of PSBs and increase in Attrition rate is

not good for the industry. Hence, a sincere introspection be made.

(ii) The salary package should be improved. The incentive schemes must

cover all sections of officers as banking is a team work, it should not lead

to discrimination and de-motivation of officers.

(iii) The cost to the company based salary package is not suitable to the

service industry like banking.

(iv) There is a need to take up recruitment of adequate number of

employees and officers in Banks to fill up vacancies and to be in readiness

to serve the youth in future.

4. We also reiterated our stand on:

(a) 2nd Option on Pension: The deadline fixed by the IBA i.e. 31.05.2008 is over. Hence, the issue has to be settled at the earliest. The coverage of officers/employees recruited between 01.11.93 and 28.09.95, under Pension Scheme is only a clarification and hence, there is no question of further negotiation on the issue. Therefore, IBA should take up the matter with the Government for issue of necessary clarification, at the earliest. (b) Compassionate Appointment Scheme: We reiterated our stand that, the scheme has to be further improved with enhanced cash compensation and penury has to be defined keeping in view how it is interpreted at state Government , Railway Department, RBI, LIC, Exim Bank, Central Government establishments etc., who are providing compassionate appointment to the dependents of deceased employees. (c) Outsourcing: A routine Banking transactions which permanent officers are in a position to do should not be outsourced. To classify core and non-core banking

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transactions a separate meeting with IBA may be held. We shall provide further inputs in next meeting. (d) Merger and Acquisition: The issue is opposed at UFBU level. The merger proposal of SBS with SBI is opposed by All India State Bank Officers’ Federation and they will be observing a days protest strike on 18th August 2008. 5. We have insisted that, date of effect of Salary Revision shall be from 1st November, 2007 and D.A. merger be at 3028 points. The 2nd option on pension negotiations be finalized on time bound basis. Entire negotiations shall be expedited with regular and continued meetings within next 3 months period. Detailed discussions will continue in the next meeting the date of which will be fixed shortly. 6. Comrades, we hope that, long pending demands will get settled along with 9th bipartite discussions. The non-monetary demands shall also be taken up seriously. We shall keep you advised of further developments in due course. With greetings, Sd/-- (G. D. NADAF) GENERAL SECRETARY

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CENTRAL CONSULTATIVE COMMITTEE MEETING

The Central Consultative Committee Meeting between the Management and the Association was held on 7th August 2008, at Head Office. The meeting was addressed by the Chairman & Managing Director and the Executive Director. Shri V Srinivasan, General Manager (HRM) welcomed the representatives of the Management and the Association. The Chairman & Managing Director, Shri M S Sundara Rajan in his opening remarks gave a detailed account of the performance of the Bank. Though the performance of the Bank is satisfactory, we still have a long way to go and the best performance from the staff is yet to come, he said. He, therefore, called for all out efforts in resource mobilization especially the low cost segment - CASA. Keeping this aspect in mind, he said that the Bank is launching a movement under the name “BANYAN VRIKSH” (BANYAN TREE - which was the Bank’s first logo) to add 1.1 million customers to our fold in 101 days and exhorted for the total involvement of officers to make the movement a complete success. The Executive Director, Shri A Subramanian, in his address lauded the standard of customer service extended by the Bank but said that we are not reaping the commensurate business benefit. He expressed his concern over the sluggish growth of CASA deposits and said that there is an urgent need to put in more efforts to improve our market share and called for improvement in the skill level so that all the branches shall function uniformly with excellence to surpass the set targets. A Power Point presentation was made giving a critical analysis of the performance of the bank up to July 2008. Responding to the opening address by CMD and ED, President Com K Chandrasekaran, assured the full cooperation of the officers community in the task of taking the institution to greater heights. Highlighting the man power shortage as the foremost issue, he said the Bank should keep the succession plan in mind and should start the promotion process for all cadres and the recruitment should be done both in clerical and officer cadre. Pointing out that the real situation in the field is that 93% of time is spent on attending to the routine operations in view of our Bank’s business model which is mass based, only 7% of time is available for development. This position calls for a dispassionate study and suitable corrective action, he said. He expressed the hope that the genuine needs of the officers in respect of the monetary issues and their aspirations in respect of career progression will be met without further loss of time. Com. T. T. Natarajan, Secretary General, while responding highlighted the present plight of officers community, the stifling working atmosphere and the

39

non availability of benefits and perquisites comparable to other Banks. He expressed the hope that the much awaited evolving of the fair and equitable Transfer and Placement Policy would take shape soon and assured all support for the business growth of the Bank.

Thereafter, the issues raised by us were taken for discussion and the General Manager (HRM) assured us of prompt follow up action for resolving the issues. We give below the gist of important issues raised by us besides the other pending matters.

01. Holding of Central Consultative Committee Meeting at regular interval. 02. Holding of Consultative Committee Meetings at Circle Levels. 03. Enhancement of Rental Ceilings for Leased Accommodation. 04. Increase in Petrol Reimbursement. 05. Increase in Lump sum Conveyance Allowance. 06. Fitment to Promotee Officers. 07. Withholding of Bank’s Contribution of PF on the ground of quantified

loss – evolving of Standard and transparent guidelines. 08. Payment of Gratuity to those Officers who are subjected to the

punishment of Compulsory Retirement. 09. Uniform implementation of TA guidelines – Payment of Lump Sum and

Charge taking Allowance. 10. Increase in Local Conveyance while on duty in out stations. 11. Payment of Officiating Allowance under revised Basic Pay as per last

Salary Revision Settlement. 12. Sufficient man days to be given to Inspectors. 13. Domicillary Treatment – evolving of clear cut guidelines. 14. Transfer of Officers working in North Eastern Region after two years as

per Government guidelines. 15. Immediate commencement of Promotion process in all scales. 16. Frauds in respect of Home Loans and Personal Loans – failure of the

System should not be shifted to the Officers. 17. Vigilance matters. 18. Increase in Canteen Subsidy. 19. Enhancement of Lodging Expenses on par with other Banks. 20. Improvement in existing Staff Welfare measures and introduction of

New Staff Welfare measures. 21. Permission to have the leased accommodation in the place of choice to

keep the family – reckoning the eligibility as per the place of posting.

We were assured that the financial issues would be addressed on a priority basis and rest of the issues would be addressed with all earnestness. We hope that with the given positive attitude of the General Manager (HRM) and his team, many of the problems confronted by the officers would be redressed with empathy and understanding. We note to keep our members informed of further developments. With greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

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CIR.NO: AI / 14 / 2008 – 2011 Date: 25.08.2008 TO ALL MEMBERS

Dear Comrades, ‘BANYAN VRIKSH’ (BANYAN TREE) –

AN AMBITIOUS MOVEMENT LAUNCHED BY THE BANK

An ambitious Movement in the name of “Banyan Vriksh” (Banyan Tree)

has been launched by our Bank from 18th August 2008 to commemorate

the 101st year of founding of the Bank. The period of the movement is

101 days and the purpose is to stretch our arms far and wide to bring

more number of customers in our fold, particularly under CASA (Current

Account and Savings Bank Account). The target is to open 1.1 million

accounts i.e. 10900 accounts per day for the Bank as a whole.

Many campaigns have been launched in our Bank in the past and for that

matter launching of campaigns have become a matter of routine in all the

Banks. But in launching Banyan Vriksh (Banyan Tree), a total departure

has been made from the routine campaigns as this scheme has been

named as a movement. The word movement is totally attached to people

and hence naming the Banyan Vriksh (Banyan Tree) as a movement

carries great significance as it becomes binding on our part that we all

should emotionally get attached and involved with this movement and

make it a grand success.

All of us who belong to the Indian Bank family are closely attached to

Banyan Tree. Banyan Tree was our first logo. Banyan was our telegram

address for a long time. Like banyan tree which is a very special tree

and which even to day is the national tree, our mother institution - Indian

Bank is very special to us as it has in its character and content, the

swadeshi spirit and it is an institution which has made a remarkable

turnaround thus making history.

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Banyan Tree and Indian Bank are inter-twined and inseparable. Banyan

Tree is known as a tree that walks because unlike other trees that stay

rooted in one place all their lives, Banyan Tree actually moves forward

with every new trunk it puts out. Needless to say that Indian Bank also

has branched out and serving the people through all its trunks i.e. the

branches with a total social commitment.

Banyan trees are found in almost all the villages and they are the centre

of village life. Banyan trees are believed to be sacred trees and little

shrines are built under them. Banyan tree provides shelter to the

villagers from the scorching sun. Needless to say that Indian Bank serves

the Rural India providing the solace and succor that it badly needs and

thus it is embedded in the hearts of the people.

We can go on and go on highlighting the similarities between Indian Bank

and Banyan Tree. But the need of the hour is to make use of this life

time opportunity given to us i.e. making the movement Banyan Vriksh

(Banyan Tree) a great success. Towards the direction, let us do our best

by doing the best customer service, adding new customers in our fold

and doing everything possible and even making impossible as possible as

our Chairman & Managing Director desired in his circular that this Great

Bank should be passed on to posterity as a strong Bank with a large

customer base and thus building an Institution which would be a model

Institution in Public Sector, merging the past and present, yet forever

changing and growing like a Banyan Tree.

With greetings,

Yours Comradely,


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CIR.NO: AI / 15 / 2008 – 2011 Date: 25.08.2008 TO ALL MEMBERS PLEASE CIRCULATE

Dear Comrades, CONTINUE THE STRUGGLE AGAINST BANKING REFORMS AND TO EXPEDITE OUR DEMANDS. UFBU’s CLARION CALL FOR 2 DAYS STRIKE ON 24th & 25th SEPTEMBER, 2008

** ** ** The UFBU met at Chennai on 21 08 2008. The meeting took stock of the developments taking place in the Banking Sector on account of the Government pushing ahead the reforms and also the delay in implementing the various commitments given in respect of Pension Option, Compassionate appointment and Salary Revision. The meeting unanimously decided to give a call for agitational programmes including two days strike on 24th and 25th of September 2008. The text of the UFBU Circular No.22 dated 21 08 2008 is reproduced for information of our members. We call upon our members to implement the agitational programmes successfully to show our unity and solidarity to the powers that be to make them retrace their course and come forward for early solution on our burning issues. With greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL _____________________________________________________________________

Text of UFBU Circular

A meeting of the UFBU was held today in AIBEA Office in Chennai. The meeting was presided over by Com. P.S. Pillai (BEFI). The meeting took for review the developments taking place in the banking sector arising on account of the Government’s decision to push ahead the banking reforms like Privatization of Banks, Merger of Banks, allowing unrestricted FDI in banking sector, etc. The meeting also took note of the delay in implementing the various commitments under the MoU signed on 25.2.2008 with the IBA in relation to our important issues like Pension Option, Wage Revision, Compassionate Appointments, etc. The meeting observed that the Government has taken a hostile view by proceeding with their agenda like merger of public sector banks and the announcement of the SBI Chairman that all the Associate Banks will be merged with the SBI, notwithstanding the assurance in the MoU that there are no guidelines or instructions from the Government for merger of public sector banks. The meeting further noted that even though six strike actions have taken place in the banks in the last one year, expressing our concerns and protests against merger of banks, it is regretful that the Chairman of SBI has recently remarked to the press that he is not aware of the

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concerns of the unions or employees regarding the merger of banks. The meeting also condemned the recent remarks by the SBI Chairman castigating the bank unions as antinationals. The meeting also took note of the efforts of the Government to get the recommendations of the Raghuram Rajan Committee implemented and the recent statement of the IBA that the Government’s Equity Capital in public sector banks can be reduced to less than 51% which is nothing but privatization of banks. Similarly, the Government also wants to proceed with the amendment to Banking Regulation Act to allow more FDI in the Banking Sector with full voting rights. At a time, when there is the task and challenge for the public sector banks to strengthen themselves and to expand their activities to achieve total financial inclusion and to cater to the needs of the priority segments of the economy, it is unfortunate that the Government and the bankers are talking of measures like privatization and global competition, which will dilute the social obligations of the banking industry, especially of the public sector banks. In this background, the meeting after detailed discussions came to the inescapable conclusion that our struggle against these banking reforms will have to be continued and further intensified. The meeting also observed that as against the commitments to resolve our important issues like pension option, wage revision, compassionate appointments, etc. within the agreed time frame, the same are being delayed adding to the anxiety to the rank and file. Hence, the meeting felt that our demands must also be expedited for early solution. Taking all these facts and factors into consideration, the meeting decided to give a call for agitational programmes as under:

1. Preparatory programmes like, Demonstrations, Deputations, Badge Wearing, Pestering, Mass Rallies, etc. from 1.9.2008.

2. Two Days’ All India Bank Strike on 24 th & 25 th September, 2008. 3. Seminars, Conventions and other campaign programmes during October,

2008. 4. Further intensified programmes including Indefinite Strike in November and

December, 2008.

Comrades, we want peace and harmony in the banking industry. But it appears that the Government is foisting more and more struggles on us by hurrying up with their reforms agenda and the managements are compounding the attacks by their unilateral actions. Let us accept the challenge and give a befitting account of our unity and militancy. With Greetings,

Yours comradely,

Sd/-

C.H. VENKATACHALAM CONVENER Ø WE OPPOSE PRIVATISATION OF BANKS Ø REJECT RAGHURAM RAJAN COMMITTEE RECOMMENDATIONS Ø STOP MERGER OF PUBLIC SECTOR BANKS Ø DO NOT ALLOW UNRESTRICTED ENTRY OF FDI IN BANKING SECTOR Ø DO NOT DELETE SEC. 12(2) OF BANKING REGULATIONS ACT Ø IMPLEMENT OUR MOU DT. 25 02 2008 Ø EXPEDITE SETTLEMENT OF DEMANDS

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Dear Comrades,

ALL INDIA STRIKE ON 24th & 25th SEPTEMBER 2008 BY UFBU

We draw the attention of our members to our earlier Circular No. AI / 15 / 2008-2011 dated 25.08.2008 on the UFBU’s call for 2 days strike on 24th & 25th September 2008 protesting against the Governments move on merger of Banks, dilution of Capital, amendments to Banking Regulation Act and demanding implementation on various commitments given in respect of Pension Option, Compassionate Appointments, Salary Revision etc. The UFBU has issued a strike notice on 29th August 2008 to the Chairman IBA, Mumbai. We reproduce below the text of Strike Notice for information of the members. We call upon our members to implement the programmes and the Strike Action successfully. With greetings, Yours Comradely,

T. T. NATARAJAN SECRETARY GENERAL _____________________________________________________________________

Text of UFBU’s STRIKE NOTICE

August, 29, 2008

FORM – 1

NOTICE OF STRIKE

NAME OF UNIONS: UNITED FORUM OF BANK UNIONS (U.F.B.U.) ALL INDIA BANK EMPLOYEES’ ASSOCIATION (AIBEA) ALL INDIA BANK OFFICERS’ CONFEDERATION (AIBOC) NATIONAL CONFEDERATION OF BANK EMPLOYEES (NCBE) ALL INDIA BANK OFFICERS’ ASSOCIATION (AIBOA) BANK EMPLOYEES FEDERATION OF INDIA (BEFI) INDIAN NATIONAL BANK EMPLOYEES FEDERATION (INBEF) INDIAN NATIONAL BANK OFFICERS CONGRESS (INBOC)

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NATIONAL ORGANISATION OF BANK WORKERS (NOBW) NATIONAL ORGANISATION OF BANK OFFICERS (NOBO) NAMES OF ELECTED REPREENTATIVES 1. Shri. C. H. Venkatachalam, General Secretary, AIBEA & Convener, UFBU 2. Shri. G. D Nadaf, General Secretary, AIBOC 3. Shri. V. K. Gupta, General Secretary, NCBE 4. Shri. R. J. Sridharan, General Secretary, AIBOA 5. Shri. Pradeep Biswas, General Secretary, BEFI 6. Shri. Subhash Sawant, General Secretary, INBEF 7. Shri. K. K. Nair, General Secretary, INBOC 8. Shri Ashwini Rana, General Secretary, NOBW 9. Shri. Bapu Joshi, General Secretary, NOBO

Dated this day of 29th August, 2008 The Chairman, Indian Banks’ Association, World Trade Centre, 6th Floor, Cuffe Parade, Mumbai Sir, In accordance with the provisions contained in subsection (1) of Section 22 of the I.D. Act – 1947, we hereby give you notice that the members of all the constituent unions of United Forum of Bank Unions (1. AIBEA, 2. AIBOC, 3. NCBE, 4. AIBOA, 5. BEFI, 6. INBEF, 7. INBOC, 8. NOBW, 9. NOBO) propose to go on strike on the 24th and 25th September, 2008. Protesting against Banking sector reforms like: 1. Privatisation of public sector banks 2. Recommendations of Raghuram Rajan Committee and Anwarul Hoda Committee 3. Merger of public sector Banks 4. Amendment to Banking Regulations Act / deletion of Sec. 12 (2) which will enable full voting rights to FDIs in banking sector And Demanding: 1. Expeditious implementation of the MOU dt. 25. 02. 2008 between UFBU and IBA on important issues like pension option, compassionate appointments, wage revision, etc.

--Sd/- (C.H. VENKATACHALAM)

CONVENER

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Encl: 1. Statement of the Case 2. Details of Agitational Programme

Statement of the Case

1. BANKING SECTOR REFORMS There are frequent pronouncements from various authorities on dilution of Government’s capital in public sector banks. Recently the Government had appointment two Expert Committees under Prof. Raghuram Rajan, former Chief Economist of the IMF and Mr. Anwarul Hoda of the Planning Commission. These Committees have submitted wide ranging recommendations chiefly recommending privatization of banks, further reduction of Government capital to less than 51%, allowing more FDI in banks, allowing more private banks, phasing out priority sector advances, merger of banks, etc. The Government has not rejected these reports; rather these recommendations have been forward to the Banks to get their consent and to proceed further with their implementation. The Government is also proceeding with the amendment to Banking Regulations Act to delete Section 12 (2) which will remove the existing ceiling of 10% on the voting rights and provide full pro-rata voting rights to the foreign investors which will facilitate their virtual control over our banking sector. Similarly, despite the assurance contained in the MOU dt. 25. 02. 2008 between UFBU and IBA that merger of banks is not the policy of the Government; the Government is now proceeding with the merger of Banks. 2. IMPLEMENTATION OF MOU WITH IBA In the fact of our two days strike in Feb. 2008, the IBA signed an MOU with UFBU on 25. 02. 2008 agreeing to find amicable solutions to the various demands raised by UFBU like pension option, wage revision, compassionate appointments, automatic covering employees from 01. 11. 93 to 1995 under Pension scheme, etc. within a time frame. The delay is causing anxiety and hence all these issues need to resolved without further delay. ______________________________________________

DETAILS OF AGITATIONAL PROGRAMMES:

1. 24 / 25. 09. 2008 -- ALL INDIA STRIKE FOR TWO DAYS Preceded by various programmes like Demonstrations, Rallies, Processions, Badge wearing, Postering, etc.

-Sd/- (C.H. VENKATACHALAM)

CONVENER

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CIR.NO: AI / 17 / 2008 – 2011 Date: 09.09.2008 TO ALL MEMBERS Dear Comrades,

NEW WELFARE MEASURES INTRODUCED

We draw the attention of our members to our Circular No.AI/10/2008-11 dated 24 06 2008 wherein we have informed that we have requested the Management to introduce the facility of medical check up for all employees and their spouses and mediclaim policy for retirees on superannuation. We are glad to inform that our efforts have yielded the desired results and the Central Staff Welfare Committee had approved the introduction of the above welfare schemes. The details of the schemes in a nutshell are as under: Health Check Up to all staff members Eligibility: All confirmed award staff members and officers in Scale I to Scale III who are aged 45 years and above and their spouse. Amount: Rs.1,500/- towards the cost for the staff members and Rs.1,000/- for the spouse per calendar year. Periodicity: Calendar year Our HO: HRM Department will approve and circulate the names of reputed Hospitals and Diagnostic Centres with whom tie up arrangements will be made and in case such tie up arrangement is not available in some centres, the employees may undergo health check ups in reputed Diagnostic Centres and Hospitals and the applicable payment will be made by the Bank directly. Reimbursement of Health Insurance Premium to Retired Staff Members The Scheme envisages reimbursement of Health Insurance Premium for cover of Rs.1.00 lakh to all the staff retired on superannuation and their spouse at a cost of Rs.2,516/- up-to the age of 65 years and Rs.5,336/- over 65 years of age.

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The Scheme is effective from 29 08 2008 for taking fresh health insurance policy and also for existing health insurance policy renewed on or after 29 08 2008. A retired staff member along with his / her spouse is free to take a common health insurance policy from any of the public or private insurance company. Reimbursement of Rs.2,516/- / Rs.5,336/- towards Annual Premium will be made subject to production of proof of health insurance policy newly taken /renewed. Retired Staff are free to take insurance coverage of higher amount by paying differential amount beyond Rs.2,516/- / Rs.5,336/- as the case may be. We would like to clarify that the present Annual Medical Aid of Rs.1,500/- will continue to be paid to all the staff members retired in superannuation besides the above health insurance scheme introduced. A detailed circular will be issued by HO: HRM Department in this regard. We thank the Chairman & Managing Director Shri M S Sundara Rajan, Executive Director Shri A Subramanian, General Manager (HRM) Shri V Srinivasan, Assistant General Manager Shri N P Rajan and the HRM team and other members of the Central Welfare Committee for introduction of the new welfare schemes and look forward for many more schemes and improvements in the existing schemes in the days to come. With greetings, Yours Comradely,


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CIR.NO: AI / 18 / 2008 – 2011 16.09.2008 TO ALL MEMBERS Dear Comrades,

ALL INDIA STRIKE ON 24th & 25th SEPTEMBER 2008 BY UFBU

We draw the attention of our members to our Circular no AI / 15 /2008 - 2011 dated

25.08.2008 and AI / 16 / 2008 - 2011 dated 05.09.2008 reproducing the text of

UFBU circular on the industry wide 2 days Strike on 24th and 25th September 2008

and the Strike Notice served by UFBU respectively. The preparations are in full

swing to make the Strike programme a Grand Success.

We now reproduce AIBOC’s Circular No 101 dated 11.09.2008 giving the gist of the

recommendations of Raghuram Rajan Committee and Anwarul Hoda Committee.

A cursory glance of the recommendations would throw light that concerted efforts are

made to move towards consolidation and merger of Banks, allowing of unrestricted

Foreign Capital and no guarantee would be available for our terminal benefits as it is

strongly advocated that the PF and Pension Fund are to be invested in private

equities.

Hence, we call upon all our members to rally round the call of the UFBU and make

the struggle a Grand Success. Let the entire banking industry come to a grinding

halt on 24th and 25th September 2008. Onward March to 2 days GLORIOUS STRIKE on 24th and 25th September 2008.

With greetings,

Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

Text of AIBOC’s Circular No 101 dated 11.09.2008

UFBU STRIKE ON 24TH AND 25 TH SEPTEMBER 2008

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1. Please refer to our Circular No.97 dated 02.09.08. 2. The following are few of the recommendations of Raghuram Rajan Committee and Anwarul Hoda Committee recommendations. Raghuram Rajan Committee:

i) Allow more entry of private banks. ii) More foreign investments to be allowed into India. iii) Open up Government bond market to foreign investors. iv) Liberalize banking correspondents i.e. outsource. v) Privatize priority sector advances. vi) Liberalize interest rates on loans. vii) Small Public Sector Banks to be sold or allow strategic investor in these Banks. viii) More powers to outside shareholder directors and strategic investors in the Bank Boards. ix) Delink the Banks from Government oversight like Parliament, Vigilance Commission. x) Be more liberal in allowing takeovers and mergers including by domestically incorporated subsidiaries of foreign banks. xi) Freedom for banks to open branches wherever they want. xii) Allow holding company structures xiii) Encourage more Asset Reconstruction Companies. ix) Reduce Government stake in Banks to less than 50%. Anwarul Hoda Committee: Some of this Committee's recommendations are:

i) Phase out Priority Sector lending. ii) Reduction of SLR. iii) Abolition of branch licensing. iv) Consolidation of banks. v) Reduction in Government's capital in Banks to less than 51%. vi) More foreign investment to be allowed in insurance sector. vii) Removal of FDI restrictions in reinsurance companies. viii) Banks, Insurance and Pension Funds to invest in private equity. ix) PF and Pension fund should be permitted to invest in equity shares. 3. Stop Mergers & Consolidation of banks: Today the Government and bank managements want to merge the 27 public sector banks into 5 or 6 Banks in the name of global competition. The Government wants mergers for the sake of global competition. Our public sector banks are not meant for global competition as their main role is to create to our own economic development. Secondly, even by mergers, our Banks cannot become stronger in comparison to the big global banks. India needs more bank branches and expansion of banks and not consolidation. Mergers will result in closure of thousands of bank branches. Even though in the MOU signed on 25.02.2008, the IBA clarified that the Government has no policy to go ahead with merger of Banks, still at the behest of the SBI Chairman, State Bank of Saurashtra has been merged with SBI.

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SBI Chairman has further announced that more Banks will be merged with SBI. These mergers are unwarranted. Hence Government should stop these attempts of merger of public sector Banks. 4. Danger of unrestricted Foreign Direct Capital in Banks: At present under Section 12 (2) of Banking Regulations Act, there is a ceiling of 10 % on the voting rights of the foreign direct investors in the Banks. The Government has introduced a Bill in the Parliament seeking to delete this Section 12 (2) of the B R Act. The Bill seeking to delete Section 12 (2) of Banking Regulations Act has not been withdrawn. This only shows that Government is waiting for an opportunity to push through the amendment which will enable 74% FDI to enter our Banking Sector with full voting rights. This will instantly make our banks vulnerable to be taken over (swallowed) by foreign capital. For example, the total capital of 26 Private Sector Banks is Rs.4,200 crores while they have a total deposit of Rs.6,00,000 crores. In the 27 Public Sector Banks, the total capital is only Rs.12,315 crores whereas the total deposits are Rs.24, 00,000 crores. Is it advisable to allow unrestricted entry of FDI in the Banks? Govt. should withdraw this Bill. 5. EXPEDITE IMPLEMENTATION OF MOU DATED 25 2 2008 ON OUR DEMANDS:

An MOU was signed between Indian Banks Association and United Forum of Bank Unions on 25.02.2008 based on which the two days strike was deferred. In the MOU it was agreed that the demands of the UFBU on pension option, compassionate appointments, wage revision, etc. would be resolved within a time frame. But, even though discussions are taking place on these issues, the same need expeditious resolution. To draw the attention of the Government, Indian Banks Association and bank managements, the strike action is being resorted to. If the Government does not reverse the policies and the managements do not resolve the issues, the UFBU has decided to intensify the programmes with further strike actions. 6. Comrades, gear up the machinery to face the challenges posed by the IBA / Government. We have to protect the hard earned trade union rights. The need of the hour is, united struggle against the common enemy. We request our affiliates / members to implement the action programme in Toto and strengthen the bargaining capacity of Unions in the banking industry.

UFBU – ZINDABAD :: AIBOC – ZINDABAD :: OUR UNITY – ZINDABAD

With revolutionary greetings Sd/-

(G. D. NADAF) GENERAL SECRETARY

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TREMENDOUS RESPONSE BY OUR COMRADES TO 2 DAYS STRIKE CALL

The nationwide 2 days Strike on 24th and 25th September 2008 at the call of UFBU is a resounding success. The 2 days strike has been necessitated because the IBA did not agree to give any firm commitment to resolve the demands like extension another option to join the Pension Scheme, Wage revision, continuation of Compassionate Appointment etc. within a mutually agreed time frame. This time frame commitment has become important because the discussion held so far have been very slow and tardy. Viewing the strike action as a warm up exercise, AIBOC has called upon us to be in readiness for further struggles in the days to come. We convey our greetings to the rank and file for their splendid participation. We reproduce the text of the AIBOC circular on the captioned subject for the information of our members.

With greetings,

Yours Comradely,

T. T. NATARAJAN SECRETARY GENERAL ___________________________________________________________________

Text of AIBOC Circular No 109 dated 26.09.2008

The Government is perplexed with the tremendous response by the employees and officers of banking industry to the 2 days strike call of UFBU. In fact, the Government / IBA had not assessed the gravity of discontentment in the rank and file properly and their resentment against the lackluster response to long pending demands. The IBA / Government are testing the patience of employees and officers of banking industry by withholding the decision on 2nd Option on Pension, Compassionate Appointment etc. The pension is a social security measure. It is now being extended even to the unorganized sector. Due to the conditions prevailing at the time of introduction of pension scheme in the banking industry, few employees / officers chose to remain with CPF Scheme. The situation has changed now. It is not fair on the part of the IBA / Government to deprive the social security to the work force under the pretext of cost. In fact, it is an investment on HR which will yield rich dividend in future. 2. We have to learn from the experience of USA on collapse of economy due to its own weight. They are now supporting public spending, whereas in our country, we are abdicating the social responsibility. The new theory of privatization, merger and acquisition in the banking industry, under the guise of consolidation is uncalled for. It will have far reaching effect on common man and, HR policy in the Banks.

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Our country being the Welfare State must support Public Sector. Due to wide gap between preaching and practicing of Government of India, common man has lost faith on public pronouncements of Government functionaries. There is a need to increase trust level. We have to be more vigilant and proactive. The two days strike must make the IBA / Government to soul search and reinvent. We hope that, Government will consider our demands in all seriousness. 3. The erosion in real wages on account of rising inflation and attractive pay packages in IT and private sector, has made bank jobs as a last priority. There is a lukewarm response to the recruitments in banking industry. The pay package is discouraging to choose banking as a career. The unregulated working hours, work pressure, lack of job security and stringent disciplinary rules are forcing the officers to choose exit route at the earliest. In the long run, it will have its own effect on the banking industry which is considered as a backbone of the economy of our country. A stitch in time saves nine. The authorities concerned have to review the situation and initiate steps to arrest the deterioration in the system. We, as a responsible trade union have to rise to the occasion and play our role without fear and favour. We compliment our learned comrades for raising their voice against the neo-liberalisation policy of the Government of India which is detrimental to the welfare of people of our country. At the same time, it is our bounden duty to preserve, and protect the hard earned trade unions rights. Therefore, the need of the hour is united fight for the common cause. 4. Comrades, we profusely congratulate each one of you for the support to our just cause. The fight has to continue till we succeed. We are thankful to our affiliates / members for their show of solidarity and splendid support in making our two days strike on 24th and 25th September ‘08, a tremendous success. We shall wait and see the response of IBA / Government. The UFBU will meet shortly to finalise the strategy to achieve our goals. We bank on your strength. Please be in readiness to respond positively to the clarion call of the organization.

OUR UNITY ZINDABAD OUR UNITY ZINDABAD

WE SHALL FIGHT TILL WE SUCCEED

WE SHALL FIGHT TILL WE SUCCEED

With revolutionary greetings,

-Sd/- (G. D. NADAF)

GENERAL SECRETARY

54

CIR.NO:AI/20/2008–2011 03 11 2008 TO ALL MEMBERS

Dear Comrades,

RENTAL CEILINGS ENHANCED

We draw the attention of our members to our Circular No.AI/13/2008-2011 dated 18 08 2008 wherein we have given a detailed account of the issues raised by us in the Central Consultative Committee Meeting held on 07 11 2007 and the assurance given by the Management that the financial issues would be resolved on a priority basis. In furtherance to the same, we have been relentlessly following up the issue of enhancement of rental ceilings and conveyance reimbursement and we are glad to inform that our efforts have yielded the desired results, as our Bank’s Board had approved an upward revision in rental ceilings for leased accommodation on 01 11 2008. The table containing the details of enhancement is reproduced overleaf for the information of our members. We thank our Chairman & Managing Director Shri M S Sundara Rajan, Executive Directors Shri A Subramanian and Shri A S Bhattacharya, General Manager (HRM) Shri V Srinivasan and his team for making the above improvement possible and we are confident that the improvements in conveyance reimbursement will also follow soon. At this juncture, we call upon our members to join hands, put shoulder to shoulder to mobilize low cost deposits and redouble the efforts to ensure the success of our “BANYAN VRIKSH MOVEMENT” and contribute their best for the systematic growth of the Bank.

With greetings,

Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

HEARTY WELCOME

We extend a hearty welcome to Shri A S Bhattacharya, who had joined our Bank as the Executive Director. Before joining our Bank, he served as General Manager, United Bank of India. We are sure that with his rich experience, he will contribute greatly for the alround progress of our Bank. We wish him all success.

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CIR.NO: AI / 21 / 2008 – 2011 10.11.2008 TO ALL MEMBERS

Dear Comrades,

WAGE REVISION TALKS - MEETING WITH IBA

Further to the nationwide 2 days Strike on 24th and 25th September 2008 at the call of UFBU, a round of discussion was held on 06th November 2008, between UFBU and IBA. We reproduce hereunder the text of UFBU circular No.26 dated 06.11.2008, for the information of our members. With greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL ___________________________________________________________________

Text of UFBU Circular No 26 dated 06.11.2008

Further to our recent 2 days All India Strike action, a round of discussions between IBA and UFBU was held today in Mumbai.

UFBU Meeting: Preceding this meeting with IBA, a meeting of the UFBU was held in the AIBEA office in Mumbai. The meeting was presided over by Com. V. Eswaran, President, AIBOC. The meeting congratulated all the employees and officers who participated in the 2 days strike and made it a grand success. The meeting while noting that the delay in resolution of our important issues like pension option, compassionate appointment scheme, wage revision, etc. is causing anxiety to the rank and file membership, decided that the same should be expeditiously settled and it was further decided to prevail upon the IBA in this regard during the talks with them.

Discussions with IBA: In the discussions with the IBA, the IBA team was led by Mr. M.V. Nair (CMD, Union Bank of India), Chairman of the Negotiating Committee while UFBU was represented by all our constituent unions.

1. Wage Revision: After mutual discussions it was agreed that a meeting of the Core Committee would be held by end of November, 2008 in which our demands would be gone into with further details, calculations and working out the cost implications, construction Pay scales based on our demand for merger of D.A. at 3028 points, etc. Thereafter another round of meeting will be held with the Negotiating Committee by the middle of next month.

……2 2. Pension Option: The Report of the common panel of Actuaries has since been received. As per their estimation and calculations based on the common parameters of assumptions

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agreed upon between IBA and UFBU, the cost of pension for the remaining employees who are in PF as on 31.03.2008 comes to around Rs.17,000 crores and if their PF balance (Management's contribution) is adjusted, the net deficit or liability would work out to Rs. 6,000 crores. The IBA wanted some time to study the Report before taking up the same for discussions with the UFBU. Since we also need to examine and understand the Report, it was mutually decided that further discussions on this issue would be held during the next round of discussions with the Negotiating Committee. 3. Compassionate Appointments Scheme: In the last meeting held on 02-09-2008, besides reiterating our detailed suggestions already submitted to the IBA, we had further given our views on the basis for defining Penury conditions, etc. In today's meeting, the IBA while agreeing with some of our suggestions on redefining the Assets and Liabilities, on the need for extra consideration if the widow of the deceased employee had school going children, marriageable daughters, ailing dependent parents-in-law, to give compassionate appointments in cases of death of an employee on duty, death due to terminal disease, etc., the IBA informed that further relaxation in the scheme is not acceptable to them. After mutual discussions, it was agreed that our suggestions and concerns would be further addressed and reviewed by them and thereafter the same would be taken up for discussions to finalise a mutually acceptable formula to be recommended to the Government. 4. Outsourcing: IBA made a presentation on outsourcing to explain the issues involved and appealed to the unions to arrive at an amicable solution having regard to the needs of the Banks and emerging requirements in the Banking Industry. The IBA informed that they will take into account the concerns of the unions and gave the assurance that there would be no retrenchment of jobs or reduction in employment opportunities. We have informed that the matter needs further discussions and can be taken up in due course. 5. Consolidation & Mergers: The IBA desired to know the views of the unions in regard to our opposition to the issue of merger and consolidation of Public Sector Banks as according to them the same would help in strengthening the Public Sector Banks in their ability to face competition. We have informed them that we would deal with this issue in subsequent meetings. With greetings,

Yours comradely,

Sd/ (C.H. VENKATACHALAM)

CONVENER

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CIR.NO: AI / 22 / 2008 – 2011 15.12.2008 TO ALL MEMBERS

Dear Comrades,

SECTORAL FEDERATION FOR NATIONALISED BANKS

The Executive Committee of AIBOC in its 59th meeting held at Kochi on 07th and 08th November, 2008 considered the proposal to constitute a Sectoral Federation for Nationalised Banks’ Officers, as provided in the constitution of the Confederation. The proposal was moved by the General Secretary of AIBOC, which was approved unanimously by the Executive Committee. We give below the salient features of the Sectoral Federation for information of the members.

a) The name of the Sectoral Federation will be “ALL INDIA NATIONALISED BANKS’ OFFICERS’ FEDERATION”.

b) The Federation will be consisting of the affiliates of the Nationalised Banks.

c) The Federation will be a wing of the Confederation and will have to be in conformity with the by-laws and the Policy Declaration of the Confederation. In order to ensure that there is no ambiguity in the structure of the Federation, the leadership to remain with the serving Officers, the restriction with regard to the foreign affiliation, receipt of funds etc., the relative provisions of the Confederation and the Policy Declaration shall be incorporated in the By-law of the Federation as well as the Policy Declaration that is to be adopted at the time of the foundation of the Federation.

d) The Federation is meant to consolidate the bank officers’ movement in the Nationalised Banks.

e) The Confederation will continue to remain as the sole bargaining agency in the matter of Salary and all other industry level issues with IBA, RBI, Government and all other agencies.

f) The subscription etc., will be continued to be received by the Confederation.

g) The President and General Secretary of AIBOC will be ex-officio Office-bearers of the Federation.

Comrades, the Executive Committee of the AIBOC has also approved the draft by-laws of the proposed Federation. It is also decided to organize the foundation Conference of “ALL INDIA NATIONALISED BANKS’ OFFICERS’ FEDERATION” on 18th January, 2009 at KOLKATA. We shall keep our members informed of further developments.

With greetings,

Yours Comradely,


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CIR.NO:AI/23/2008–2011 16.12.2008 TO ALL MEMBERS

Dear Comrades,

DISCUSSION WITH IBA

We reproduce hereunder the text of UFBU Circular No.27 dated 15.12.08 for the information of our members. With greetings,

Yours Comradely,


T E X T Another round of talks took place today in Mumbai, between UFBU and IBA on our current demands. UFBU Meeting: Prior to discussions with IBA, a meeting of UFBU was held which was presided over by Com. V. Eswaran (AIBOC). After discussions, the meeting finalized its broad approach towards the issues to be taken up with IBA. The meeting felt that all the issues viz. Compassionate Appointments Scheme, Pension Option and Wage Revision have to be expedited. Meeting with IBA: In the afternoon, discussions with IBA took place. The IBA team was led by Mr. M. V. Nair, Chairman of Negotiating Committee, while UFBU was represented by the leaders of the constituent unions. a) Compassionate Appointment Scheme: Further to the last meeting, improvements to be made in the compassionate appointments scheme to be finalized for recommendation to the government was discussed in today’s meeting. Our suggestions on improvements in eligibility for compassionate appointments / financial compensation, formula for working out the financial compensation, etc were broadly finalized. After fully finalizing the scheme, the same would be sent to the Government for their approval. We have suggested that the scheme should be extended to past cases from July 2004. Further developments will be informed to units in due course. b) Pension Option: We had earlier informed our units that as per the report of common actuaries, the net shortfall in the pension fund comes to around

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Rs.6,000 crores, for extending another option to the PF Optees. Today it was informed that the number of past retirees (PF Optees) comes to around 60, 000 and the additional liabilities in their case is also to be worked out as we have demanded that all the past retirees should also be covered by another option to pension. In order to work out the methodology of sharing the additional cost, etc, a Small Committee will be meeting in the next week where after the matter will be taken up in the Negotiating Committee discussions. c) Wage Revision: From UFBU, we brought to the attention of the IBA about the growing anxiety on the part of the employees and officers over the delay in finalizing the wage revision settlement. We suggested that the whole issue should be expedited and settled within the next 2 months. The IBA, while reiterating that the settlement would be effective from 1/11/2007, desired that the details and implications of our demands be worked out at the small committee level before they react on our demands. IBA also expressed their desire to resolve the issue in the next 2 / 3 months. d) UFBU Meeting: To discuss and workout our further approach to the issues for discussions with the IBA in the small committee, it has been decided to hold an UFBU meeting at Chennai on 19 / 12 / 2008. It has been decided that the next round of meeting with the negotiating committee will be held in the first week of January – 2009 to be preceded by the small committee discussions. With Greetings, Yours comradely, Sd/- C.H. VENKATACHALAM CONVENOR

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CIR.NO:AI/24/2008–2011 23.12.2008 TO ALL MEMBERS Dear Comrades, We are glad to inform our members that a Fresh Promotion Policy was arrived at after discussions with the Management and the record of discussions was signed on 22nd December 2008. In this connection, we would like to inform our members that a separate seniority channel has been introduced thus facilitating the seniors to get an opportunity for promotion without subjecting them to the process of written test. Besides this, lot of improvements have been made and the thrust given to the written test has been considerably reduced to provide a level playing field for those who are on operational assignments as well as non-operational assignments. We sincerely feel that the present policy will serve as a realistic one catering to the expectations of all officers who are in different assignments. The salient features of the policy are:

The Promotion Policy shall be applicable to both the Generalist and Specialist Officers.

There are two channels of promotion namely Seniority Channel and

Fast Channel.

20% of the vacancies in the applicable scales will be filled by the Seniority Channel.

The basis for promotion for Seniority channel is on overall

assessment through Performance Appraisal Report for a period of two years (60%) and Interview (40%).

The basis for promotion for Fast channel is on overall assessment

through Written Test (25), Performance Appraisal Report for a period of two years (50%) and Interview (25%).

The qualifying factors for Fast Channel will be total 60%, reckoning

Performance Appraisal and Written Test in aggregate.

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IMPROVEMENTS MADE IN PROMOTION POLICY UNDERSTANDING REACHED

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We enclose a copy of the record of discussions that was signed by the representatives of the Management and the Association for the information of our members. The Bank’s Board, in its meeting held on 23rd December, 2008 has approved the policy. Comrades the competition in the coming promotion process is bound to be stiff and hence we call upon our members to bear this aspect in mind and strive hard to come out successful. We also remind our members to submit the Performance Appraisal which is now an online mode, without any delay. We take this opportunity to thank our Chairman & Managing Director, Executive Directors, General Manager (HRM), Assistant General Managers and the concerned officials of the HRM Department for showing greater understanding which has facilitated arriving at a fresh promotion policy through mutual discussions in a record time. We wish all the eligible candidates Best of Luck and Success. With Greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

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CIR.NO:AI/25/2008–2011 26.12.2008

TO ALL MEMBERS

Dear Comrades,

We reproduce herein the text of AIBOC Circular No.144 dated 25.12.2008 in respect

of the UFBU Meeting held at Chennai on 19-12-2008 and the discussions held with

IBA on 24-12-2008 for information of our members.

With Greetings, Yours comradely,


QUOTE

Meeting of UFBU held on 19-12-2008:

A meeting of the UFBU was held on 19-12-2008. Com L Balasubramanian (NCBE)

presided over the meeting. The meeting took note of the discussions held with IBA

on 15.12.2008 and welcomed the broad understandings reached on the issue

of compassionate appointments / financial compensation scheme. It was decided

that the finalization of the scheme and approval of the same by the Government

should be expedited in as much as the unilateral scheme of the IBA / Government

implemented from July, 2004 has not benefitted the families of the deceased

employees and hence the revised scheme to be extended in all such past cases also.

The meeting also decided that the formula and method of sharing the additional

pension cost on account of another option to the PF optees should be resolved by

discussions with the IBA as early as possible. Looking to the emerging scenario,

the meeting underscored the need to quicken the exercise of wage revision

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settlement. The meeting also decided to take up the following issues with the

IBA/RBI/Government.

1. Increase in staff housing loan limits.

2. Amendment to revise the existing ceiling of Rs. 3.50 lacs under Gratuity Act.

3. Withdrawal of unilateral instructions of RBI on penalty on staff for fake notes.

4. Exemption to Private Banks to have their own Bank-level Staff Pension Fund like the Public Sector Banks.

MEETING WITH IBA ON 24-12-2008:

Further to the last round of discussions held with IBA on 15-12-2008, a round of

Small Committee-level discussions took place on 24-12-2008 in Mumbai.

In this meeting tentative calculations on the possible impact of wage revision

demands, index point for merger of DA, etc were exchanged besides the ways and

means to work out the manner and possibilities for funding the additional pension

cost, etc. The IBA informed us that as per the details received by them, there are

64,250 past retirees (PF optees) between the date of Pension Regulations

in 1996 and 31-3-2008 and that the Banks’ PF contributions paid to them amount

to Rs. 1,718 crores. To work out the cost of pension option to these retirees,

these details have been referred to the panel of common Actuaries and would be

taken up for discussions on receipt of the same.

It was decided to continue the discussions in the first week of January, 2009 along

with a meeting of the Negotiation Committee.

Further developments will be informed to units in due course.

UNQUOTE

SALARY REVISION TALKS

Representatives of four Officers’ Organizations led by Com G D Nadaf, General

Secretary, AIBOC, had discussions with IBA representatives on 24.12.2008 on Salary

Revision. While presenting our demands we insisted that, entire process of Salary

Revision has to be completed within next 2 months period. In view of better Salary

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Revision for Central Government employees, Public Sector Units, UGC Staff etc.,

aspirations of Bank Officers for better pay package has to be considered by the IBA.

The Officers of Banking Industry are contributing their best to the business

development of Banks at the cost of their social and family life. The responsibility,

accountability and transferability and, unregulated working hours for officers of

Banks are discouraging new talents to opt for their career in the banking industry.

Our long pending demand of regulated working hours for officers be given due

weightage. The productivity and increase in business of the Banks be the guiding

factors to arrive at better compensation in the industry. Apart from monetary

issues, the IBA team has to settle non monetary issues like 5 days week, regulated

working hours, accountability aspects etc., simultaneously. The IBA representatives

assured to come back with definite proposal in the next meeting to be held

in second week of January 2009.

Comrades, we are aware of the feelings and apprehensions of the grass root level

members on the issues like Salary Revision, 2nd Option on Pension, Compassionate

Appointment Scheme etc. The leadership will not leave any stone unturned.

The undersigned also met Hon’ble Union Minister of State for Finance Shri Pawan

Kumar Bansal and Shri Oscar Fernandes, Hon’ble Minister for Labour, Government of

India on 16.12.2008 at Delhi to impress upon the Government to settle our issues

before IBA and enhancement of ceiling of Gratuity, respectively. We shall keep our

members apprised of further developments in the matter, in due course.

With Greetings,

Sd/- (G D NADAF)

GENERAL SECRETARY

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CIR.NO:AI/26/2008–2011 13.01.2009

TO ALL MEMBERS

Dear Comrades,

We reproduce herein the text of AIBOC Circular No.4 dated 13.01.09 in respect of

the discussions held with IBA on 12.01.2009 for information of our members.

With Greetings, Yours comradely,


Text of AIBOC Circular No.4 dated 13.01.2009

on the subject - Discussions with IBA

The following is the gist of discussions held with IBA on 12.01.2009.

1. Compassionate Appointments: Further to the discussion amongst IBA

and UFBU in the last round of meeting on Compassionate ground

Appointments/ financial compensation to the family of employees who die

while in service wherein broad understanding were arrived at on the revised

schemes. In today’s meeting we have taken up the issue with IBA for further

possible improvements in age criteria and minimum compensation. It was

decided to take up the matter for further discussion in the next round of talks.

2. Pension Option: On the issue of sharing the cost of Pension Option,

the IBA opined that at least 50% of Rs.6000/- Crores, being the additional

cost of pension to 2.66 lac CPF Optees should be borne by us and the

remaining cost may be met by the Banks. From our side, we offered that

15% of the extra cost can be shared by us. After discussion, it was decided to

take up the issue again in the next round of talks.

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3. Salary Revision: As regards our demand for salary revision, separate

discussions were held with the Workman Unions and Officers’ Associations

respectively. On behalf of four Officers’ Organizations, we insisted that,

Officers deserve better salary package and non-monetary issues such as

regulated working hours etc., should also be considered by the IBA along with

the negotiations on salary revision. We also requested the IBA to look into

our demand for improvements in staff loans, transportation charges etc.

referred to them by the Confederation on priority basis. While further

explaining our demands and proposals we wanted the IBA to come out with

their offer as to how much additional wage increase can be given by them.

IBA assured that in the next round of discussion they would give their

reactions in this regard. On construction of pay scales, it has agreed in

principle that the revised Pay scales would be constructed on 2836 points of

Consumer Price Index (Average index of July – September – 2006)

4. Next Meeting: It has been decided that the next round of Negotiation

Committee level discussions will be held on 21.01.2009. We also reiterated

our stand that, entire exercise has to be completed before the end of

February 2009.

.

With Greetings,

Sd/- (G D NADAF)

GENERAL SECRETARY

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CIR.NO:AI/27/2008–2011 22.01.2009

TO ALL MEMBERS

Dear Comrades,

SUB: TALKS WITH IBA INCONCLUSIVE

As earlier informed another round of talks was held in Mumbai on 21.01.2009 between UFBU and IBA on the issues of Compassionate Appointment, 2nd Option on Pension and Wage revision. We reproduce herein the text of AIBOC Circular No.6 dated 22.01.2009 in respect of the discussions held with IBA for information of our members.

With Greetings,

Yours comradely,



As scheduled, another round of talks was held in Mumbai ON 21.01.2009 between the Negotiating Committee of IBA and UFBU. IBA was led by Mr. M V Nair, Chairman of the Negotiating Committee while UFBU was represented by leaders of our constituent unions.

1. Compassionate Appointments/ Financial Compensation Scheme:

Based on the discussions held and broad understandings reached so far, it has been decided to forward our jointly agreed views to the Government on a revised scheme providing for Compassionate Appointments under certain contingencies like death while on duty to and financial compensation to the family with a minimum of Rs.3.5 lacs, Rs.4 lacs & Rs.4.5 lacs and with a maximum of Rs.7 lacs, Rs.8 lacs and Rs.9 lacs to Substaff, Clerks and Officers respectively. The scheme will be made effective after approval by Government and applicable to all cases of deaths after July, 2004, i.e., the date after new Cash Compensation Scheme was implemented in Banking Industry where no benefit was extended to the family.

2. Pension Option:

On the issue of another option for existing PF Optees to join the Pension Scheme, after a lot of discussions, IBA offered to take a share of Rs.3500 crores out of the total deficit of Rs.6000 crores, as per the report of the panel of common actuaries. UFBU offered to share Rs.1500 crores and the remaining Rs.4500 crores, to be borne by the 25 banks put together. IBA further proposed that the new entrants in

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the banks to be covered by a new pension scheme based on defined contribution. UFBU expressed its apprehensions and disapproval of this proposal of the IBA. It was decided to discuss the issue further with a view to find an early and amicable solution to the issue.

3. Wage Revision:

On our demand for wage revision, IBA made an initial offer of RS.2750 crores of wage increase to the employees and officers. This works out around 10% increase in the wage cost. From UFBU we expressed our dissatisfaction over the offer and urged upon the IBA to substantially improve their offer to a mutually acceptable level. IBA also urged upon the unions to come forward to find a solution to their issues like need for outsourcing of non-core services, etc. The IBA also made a presentation on comparing our salary and allowances with CTC based concept.

It was decided to continue the discussions further in the next round of talks to be fixed up shortly, on a mutually convenient date.

As regards wage increase for Officers’ Community, we have reiterated our demand for respectable wage package to commensurate with the risk, responsibility and to restore the external parity. We have also submitted a letter addressed to the Chairman of IBA, urging upon him to initiate dialogue to fix regulated working hours for officers. A copy of the letter is sent to the CMDs of Banks for information and necessary action. We shall circulate the same separately.

Comrades, UFBU / Confederation is endeavoring its best to reach expeditious and satisfactory solutions to our demands. In the meantime, our affiliates / members are requested not to be misled or confused by any wrong and baseless reporting in the newspapers, etc.

.

With Greetings,

Sd/- (G. D. NADAF) GENERAL SECRETARY

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CIR.NO: AI / 28 / 2008 – 2011 07 02 2009 TO ALL MEMBERS Dear Comrades,

ALL INDIA NATIONALISED BANKS OFFICERS’ FEDERATION FORMED We draw the attention of our members to our Circular No. AI / 22 / 2008-2011 dated 15 12 2008, informing the unanimous approval of Executive Committee of AIBOC for the formation of Sectoral Federation for Nationalised Banks’ Officers, in the name of “All India Nationalised Banks’ Officers’ Federation”. In pursuance of the decision of AIBOC the “All India Nationalised Banks Officers’ Federation” was formed on 18th January, 2009, at Kolkata. Com. P. K. Sarkar, General Secretary of Union Bank of India Officers’ Association was elected unanimously as the founder President of the Federation and Com. K. S. Shetty, General Secretary of Syndicate Bank Officers’ Association was unanimously elected as the founder General Secretary of the Federation. We are glad to inform that from our Bank Com. T. T. Natarajan, our Secretary General has been unanimously elected as Vice- President of the federation. We reproduce hereunder the Circular No 1 dated 22.01.2009 of All India Nationalised Banks Officers’ Federation, giving in the full details of deliberations, newly elected team of Officer Bearers for information of our members.

With Greetings, Yours comradely, T. T. NATARAJAN SECRETARY GENERAL

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ALL INDIA NATIONALISED BANKS OFFICERS’ FEDERATION

CENTRAL OFFICE

Tel. No: 022-2207 84 57 C/o. Syndicate Bank Officers’ Association (Regd.,) Fax: 022-2207 03 83 Lawrence & Mayo House, 4th Floor, E Mail: [email protected] 276, D.N. Road, Fort, General Secretary: ® 022-2893 5053 MUMBAI – 400 001. Secretary: ® 022-2833 1231

Circular No.: 01/2009. Date: 22.01.2009

Dear comrades,

ANOTHER MILESTONE IN BANK OFFICERS’ MOVEMENT.

ALL INDIA NATIONALISED BANKS OFFICERS’ FEDERATION LAUNCHED.

We have great pleasure in announcing the launch of All India Nationalised Banks Officers’ Federation on 18.01.2009 which was a longtime wish of officers in nationalised banks. Sculpted as a sectoral federation of All India Bank Officers’ Confederation, this organisation will represent the pent up aspirations of the officers in nationalised banks and will give expression not only to their legitimate demands but also to their anger and anguish at the discrimination and neglect they have suffered for so long. Their much suppressed feelings were ventilated in no uncertain terms in the General Body of AIBOC held in Chandigarh in March 2008. Taking note of the strident demand, the AIBOC took initiative for the formation of the Federation which crystalised in the birth of this new organisation and its Foundation Conference was held in Kolkata on 18th January, 2009. The new federation has emerged as a wing of the AIBOC, to pursue the exclusive aspirations and demands of officers in nationalised banks. Already representing over one lakh bank officers, the Federation will consolidate further in the days to come. Comrades, with the formation of this Federation, we have made a new beginning and commenced a long journey in which our courage and conviction on the one hand and the struggle and sacrifice on the other will continue to be the beacon to lead us on. We warmly greet our entire membership at this auspicious hour and are sure that their collective vision will lead us to a glorious future ahead.

THE FOUNDATION CONFERENCE

The Foundation Conference of the Federation was held in the mammoth Centenary Auditorium of the University of Calcutta on 18th January, 2009. The inaugural session was held in the forenoon with Sri. Manabendra Nath Mukherjee, Hon’ble Minister for Tourism, Small Scale & Cottage Industry, Government of West Bengal, inaugurating the Conference. On the dais were Sri. K.R. Kamath, Chairman & Managing Director, Allahabad Bank, Com. S.R. Sengupta, the doyen of the bank officers’ movement and also former President / General Secretary of AIBOC, Com. V. Eswaran, President of AIBOC and Com. G.D. Nadaf, General Secretary.

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The inaugural session commenced with inspiring musical invocation matching the fragrance of the flower-bedecked auditorium. The song ‘we shall overcome’ reverberated and touched the hearts of the massive crowd of delegates, observers, and vast number of comrades jam-packing the Hall. The gathering was welcomed by Com. Deepankar Mukherjee, Secretary of AIBOC State Unit, West Bengal and the guests were invited to the dais. The Hon’ble Minister, who is the author of several noted books on contemporary issues and also fiction, delivered an inspiring inaugural address. Hitting out at forces which have led the world economy to the present crisis, he stated that those who rejoiced the so-called demise of communism after the fall of the Soviet Union did so prematurely. The talks of capitalism being the only course, and the declaration of unipolar world have been exposed with the collapse of economies in the West and their cascading effect on the rest of the world. Declaring that capitalism which stands on the bedrock of greed cannot be the panacea for the world’s problems he said it is time to look at the alternatives once again. He commended the formation of the Federation at this crucial juncture and called upon the officers’ community to carry forward the social-objectives of nationalization and help create a society free of hunger and poverty. In his address Sri. K.R. Kamath, Chairman & Managing Director of Allahabad Bank, who is also an important member of the Negotiating Committee of IBA, dealt at length the contemporary problems in the Banking Industry. Talking on issues concerning Human Resources he stated that getting candidates through recruitment has become difficult for the banks in view of the other alternatives available for the candidates. He assured that negotiations on Pension Option, Wage Revision, Compassionate Appointments etc., are moving forward. He called up the unions to review their stated positions periodically in matters like merger, outsourcing etc., Com. S.R. Sengupta in his captivating address traced the history of officers’ movement in the banking industry. Referring to momentous decisions taken by the organization he stated that but for the spontaneous and organized resistance against the Bank privatization Bill, the banks would have been privatized long ago. He stated that the understanding in the AIBOC was that while wages/perquisites coming under Officers’ Service Regulations would be pursued for improvement at the industry level, other fringe benefits can be taken up at the individual bank level by the affiliates. But since in recent years perquisites coming under Service Regulations are improved in some of the banks, the same has created widespread disenchantment among others, he stated. He declared that the formation of AINBOF is the need of the hour and he wished every best to the new organization. Com. G.D. Nadaf, General Secretary, AIBOC in his extensive address touched upon various issues concerning bank officers. He stated that the bank officers have been left so far behind in salary and perquisites that it has become difficult to get candidates for recruitment even in SBI. He stated that while the salary of the bank officers eroded from ‘high wage island’ to lowest in the organized sector, the workload increased manifold and today bank officers are left with no family life. Freeze of recruitment for the last two and half decades has led to the aging of the industry. He called for a drastic hike in the salary of bank officers and the need for external parity. He stated that remuneration cannot be linked to the profit of banks since factors deciding the profits like transfer price mechanism, rate of interest, NPA

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determination and other factors are not in the control of officers. At the same time he reminded IBA that there has been excellent increase in the productivity of officers year after year in spite of the adverse conditions in which they operate. Referring to the merger of banks, Com. Nadaf stated that under the present conditions of total distrust of private banks, if the merger has to take place, it is the private banks which have to be merged with public sector banks. Regarding outsourcing he stated that banking is a business of trust and it has no place for temporary players. He called upon the IBA to settle pension and wage issues forthwith in such a manner that banking attracts best talent in the days to come. Com. V. Eswaran, President AIBOC in his presidential address, alluded to the deteriorating scenario in the banking industry and called for urgent steps to stem the rot. Stating that concepts of loyalty and dedication are undergoing tremendous transformation all around us, he called for properly rewarding those who served the banking institutions all through their career and carried forward and implemented the national objectives. Declaring that organizations are born out of necessity, Com. Eswaran referred to the birth of UFBU when Management of UCO Bank wanted to take recourse to anti-employee measures. The inaugural session ended with vote of thanks by Com. Dipankar Mitra, President of West Bengal State Committee of AIBOC.

THE BUSINESS SESSION. The Business Session commenced post lunch with Com. G.D. Nadaf, General Secretary, AIBOC submitting a report on the activities of AIBOC and the course of events leading to the formation of AINBOF as a sectoral federation of AIBOC. Referring to the unresolved issues in the industry concerning various nationalized banks, he stated that now on the AINBOF will take up all these pending issues. He also wished every success to the new organization. Thereafter the bye-laws of the new Federation was placed before the House and the same was approved. The House thereafter passed the following Resolutions. 1. WORKING CLASS UNITY. 2. INCOME TAX ON SALARIES AND PERQUISITES. 3. CONDUCT AND DISCIPLINARY RULES; PROLONGED SUSPENSIONS;

DISPROPORTIONATE AND HARSH PUNISHMENTS; APPEALS AND REVIEW PETITIONS; SEALED COVER PROCEDURE.

4. COMPASSIONATE APPOINTMENT SCHEME. 5. SECOND OPTION FOR PENSION. 6. ATTACK ON TRADE UNIONS. 7. SALARY REVISION. 8. STAFF SHORTAGE, RECRUITMENT OF STAFF ETC., 9. OUTSOURCING OF CORE FUNCTIONS OF BANKS.

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10. NATIONALISATION OF OLD GENERATION PRIVATE SECTOR BANKS. 11. REGULATED WORKING HOURS FOR THE OFFICERS’ Thereafter Com. V. Eswaran, President, AIBOC and Com. K.D. Khera, Advisor to AIBOC jointly proposed the list of office-bears of the new Federation unanimously arrived at by all the affiliates earlier. The House approved the names to thunderous applause. The lists of office-bearers are as follows: 1. CHAIRMAN : SHRI V. ESWARAN (B.O.I.) 2. PRESIDENT : SHRI P. K. SARKAR (UNION) 3. WORKING- PRESIDENT: SHRI K. RAMAKOTESHWARA RAO (ANDHRA) 4. VICE – PRESIDENT : 1) SHRI T.T. NATARAJAN (INDIAN) 2) SHRI P.K. NAYAR (P. N. B) 3) SHRI M.Y. SHINTRE (B.O.I.) 4) SHRI K.K. DOGRA (ALLAHABAD) 5) SHRI D.S. BHADAURIA (CENTRAL) 6) SHRI J.C. SHANDIL (UCO) 5. GENERAL SECRETARY : SHRI K. S. SHETTY (SYNDICATE) 6. ADVISORS : 1) SHRI K. D. KHERA (P.N.B.) 2) SHRI S. ROY CHOUDHURY (UCO) 7. JT. GEN. SECRETARIES : 1) SHRI SUPRITA SARKAR (UNITED) 2) SHRI T. JAGANNATH HEGDE (VIJAYA) 3) SHRI VILAS PATIL (DENA) 8. DY. GEN. SECRETARIES : 1) SHRI K.S. SETHI (P & S)

2) SHRI PRADEEP KUMAR (P.N.B)

3) SHRI RAJAT PAUL (BOB) 9. SECRETARY : SHRI P.K. BHAT (SYNDICATE) 10. TREASURER :SHRI S. A. MANJAREKAR (SYNDICATE) Thereafter the newly elected office-bearers occupied the dais and Com. P.K. Sarkar, President in his address to the House traced the course of events leading to the

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formation of the Federation as a symbol of the aspiration of officers in nationalized banks. He placed on record the support and guidance received from Com. V. Eswaran and Com. G.D. Nadaf without which this dream could not come to fruition in such a harmonious manner. In his speech Com. K.S. Shetty, newly elected General Secretary of the Federation stated that the organisation could not have taken birth but for the unmistakable resolve and direction of the membership as exhibited in the Chandigarh Conference of AIBOC. While stating that this is only a beginning of a long and difficult journey, he called for the involvement of the membership in its every step so that our long-cherished aspiration could be realized. He stated that while Pension-Second Option and Wage Revision are the immediate goals, parity with officers of SBI/RBI on all matters of perquisite/benefits on the principles of ‘equal work equal pay’ would be on the radar of the Federation for pursuing next. While thanking the House on behalf of his entire team, he assured that the team would try to live up to the expectation in serving the officers’ community in the nationalized Banks. He further stated that with the emergence of a strong Federation the AIBOC will also emerge stronger. With this came to an end the Foundation Conference of AINBOF thereby opening a new chapter in the history of bank officers’ movement.

PRESS CONFERENCE On 19th January 2009 the President Com. P.K. Sarkar, working President Com. Ramakoteshwara Rao, and the General Secretary Com. K.S. Shetty addressed a Press-Conference at Kolkata delineating the goals and ideals of the newly formed Federation and also the course of action it would take to realize the outstanding demands.

A NEW FUTURE Comrades, with the formation of the Federation we have placed in our own hands a new instrument of justice, to enable us to realize our legitimate demands and to end discrimination. Our effort will be to achieve equity, harmony and balance in the industry. Our vision will not only be to achieve monitory demands but much more than that, self-respect and dignity for the officers working in nationalized banks. We have made a beginning with goodwill all-around. We have a clear vision of our chartered path. We have more than one lakh members who are committed to the cause and willing for sacrifice. Under these circumstances our victory is inevitable. With warm greetings, Yours comradely, Sd/- (K.S. SHETTY) GENERAL SECRETARY

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CIR.NO:AI/29/2008–2011 09.02.2009

TO ALL MEMBERS Dear Comrades,

SUB: REGULATED WORKING HOURS FOR OFFICERS The representatives of four Officers’ Organizations in the Banking Industry met and discussed on the subject matter as mentioned in our common charter of demands submitted to the IBA. The issue being more sensitive it was decided to take up with the managements on priority basis along with our other demands pending before the IBA. Therefore, in accordance with the decision taken at the Coordination Committee meetings of four Officers’ Organizations held on 19.12.2008 and 20.01.2009 at Chennai and Mumbai respectively, a comprehensive letter has been submitted to the IBA, reiterating our demand of Regulated Working Hours for Officers. A Copy of the letter was forwarded to the CMD’s of all Banks for necessary action. We reproduce hereunder the letter dated 20th January, 2009 submitted to the Chairman, IBA by four Officers’ Organizations for information of Officers. With Greetings, Yours comradely, T. T. NATARAJAN SECRETARY GENERAL

ALL INDIA BANK OFFICERS’ CONFEDERATION

ALL INDIA BANK OFFICERS’ ASSOCIATION INDIAN NATIONAL BANK OFFICERS’ CONGRESS NATIONAL ORGANIZATION OF BANK OFFICERS

20th January, 2009

The Chairman, Indian Banks’ Association, Mumbai.

Dear Sir,

REGULATED WORKING HOURS FOR OFFICERS

Banking Industry is undergoing an unprecedented transformation process. Implementation of large scale I.T. initiatives, CBS roll out, reengineering of business

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process, introduction of a series of new products and customer centric services such as 8.00 a.m. to 8.00 p.m. and 24 into 7 business hours, tremendous shortage of staff and above all stiff competition make the officers in Banking Industry to put in long hours of work. The growing businesses, expansion with multiple activities and above all the absence of the recruitment of adequate staff to meet the growing needs of the banks and the customers have been adding to the pressures of workload on the officers’ community. Officers carry a vicarious responsibility of completing the business of the Bank and ensure the closure and balancing of accounts with no regard to the time taken by them. Officers are required to put in on an average 12 to 14 hours of work daily. They are required to come on Sundays and Holidays disturbing their family and social life. General Welfare of Officers and quality of their life get adversely affected. Such a situation is having a telling effect on the health of the Officers. Even stress-induced deaths of officers are reported.

Though organizations of Officers in respective Banks do make sincere efforts to ameliorate such a deteriorating situation they seldom succeed. Hence, a collective industry wide approach was found as an absolute necessity to ensure regulated working hours for officers. In this background, we the four Officers’ Organizations met at Chennai on 19.12.2008 and deliberated these developments and the current plight of the Officers all over the Industry. The leaders of the Organizations were constrained to observe that the current pressure of work and late sitting has brought untold miseries to our officers and their domestic lives including their health. Hence, it was unanimously decided that the Officers’ Organizations should discuss the issue threadbare and arrive at a definite regulated working hours so that the Officers are not put to hardship in this Banking Industry.

The leadership of the four Officers’ Organizations also desired that while the negotiations on salary revision and other issues are in progress, the issue of the regulated working hours being an exclusive issue of Officers should be taken up separately and a solution be arrived at urgently to avoid the frequent irritations in industrial relations in Banks. We therefore request you to kindly convene an exclusive meeting to discuss the various issues arising out of unlimited working hours for Officers in the Banking Industry and finalize regulated working hours so that they are also allowed to live a normal life and released from the present exploitation.

Please treat the matter as urgent.

Yours faithfully,

Sd/- Sd/- Sd/- Sd/- (G D NADAF) (R. J. SRIDHARAN) (K. K. NAIR) (S. N. JOSHI) GEN. SECRETARY GEN. SECRETARY GEN.SECRETARY GEN. SECRETARY AIBOC AIBOA INBOC NOBO

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CIR.NO:AI/30/2008–2011 12.02.2009

TO ALL MEMBERS Dear Comrades, We reproduce herein the text of AIBOC Circular No.13 dated 12 02 2009 in respect

of the discussions held with IBA on 12 02 2009 for information of our members.

With Greetings, Yours comradely, T. T. NATARAJAN SECRETARY GENERAL

TALKS WITH IBA

Another round of discussion was held today between IBA and UFBU. The IBA was led by Mr. M. V. Nair, Chairman of the Negotiating Committee, while UFBU was represented by our constituent unions. 1. Pension Option : In today’s meeting IBA informed that the report of the common actuaries relating to the additional cost for extending pension option to the past retirees from 1996 has been received which has identified an additional net liability of around Rs.3,000 crores. IBA indicated that the issue can be resolved on the same basis as will be finalised for the existing PF optees who are in the banks’ service. It was decided to discuss the issue further. However, IBA insisted that the new employees who will henceforth join the banks should be governed by the new pension scheme as has been implemented by the Government for new employees from 2004. From UFBU, we vehemently objected to this condition and demanded that the future employees should also be governed by the existing pension scheme. In view of the divergent views on the matter, it was decided to discuss the matter further in the next round of meeting. Regarding sharing of the

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additional cost, from UFBU we maintained our earlier stand that Rs.1,500 crores can be borne by us while the balance by the banks. The IBA, while informing that they would like to resolve the issue by discussion, did not indicate any further offer than that was made in the last meeting. 2. Salary Revision: In this meeting, we emphasized the need for a substantial increase in the offer made by the IBA. After discussion, IBA came forward to offer an increase in wages of Rs. 3,600 crores for the employees and officers put together as against Rs. 2,750 crores offered in the last round of discussion. On behalf of four Officers’ Organisations, we insisted for maintaining external parity and better salary package. The nonmonetary issues like regulated working hours etc. have to be settled with the salary revision negotiations. We demanded separate meetings with the Officers’ Organisations to discuss on salary revision and other issues pertaining to Officers’ Community. It has been decided that very shortly further round of discussions will take place on the above issues with a view to find an early and amicable resolution of our demands. With greetings, Sd/- (G. D. NADAF) GENERAL SECRETARY

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CIR.NO:AI/31/2008–2011 21 02 2009 TO ALL MEMBERS

Dear Comrades,

REIMBURSEMENT OF CONVEYANCE EXPENSES ENHANCED We draw the attention of our members to our Circular No.AI/20/2008-2011 dated 03 11 2008 wherein we have informed about the assurance given by the Management that the financial issues would be resolved on a priority basis and in pursuance of the same the rental ceilings were enhanced. We were vigorously pursuing the enhancement of conveyance reimbursement expenses and we are glad to inform that our efforts have yielded the desired results, as our Bank’s Board had approved an upward revision in conveyance expenses. The details of the enhancement are as under: 1. Reimbursement of Conveyance Expenses on Declaration Basis. Officers who have not been provided with Bank’s vehicles are presently allowed a reimbursement of conveyance expenses upto a maximum of Rs.200/- per month on declaration basis and now the ceiling stands enhanced to Rs.500/- per month. 2. Reimbursement of Conveyance Expenses on Production of Fuel Bills The fuel limits presently applicable to the Officers who own a Two Wheeler/Four Wheeler have been enhanced and the details of the enhanced limits are furnished below:

Major A Class Cities Area I Area II Other Centres Present Limit

Enhanced Limit

Present Limit

Enhanced Limit

Present Limit

Enhanced Limit

Present Limit

Enhanced Limit

Officers in Scale

2 W

4 W

2 W

4 W

2 W

4 W

2 W

4 W

2 W

4 W

2 W

4 W

2 W

4 W

2 W 4 W

I 15 25 30 40 15 20 30 35 15 20 30 35 15 20 30 35 II 20 30 35 45 15 20 30 35 15 20 30 35 15 20 30 35 III 20 35 35 55 20 30 35 45 20 30 35 45 20 25 35 40 IV 25 45 40 65 25 45 40 60 25 45 40 60 25 45 40 60 (a) Major “A” Class

Cities Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Mumbai & Kolkata

(b) Area – I Centres with Population of 12 lakhs and above (c) Area – II Centres with Population of 5 lakhs and above; and not

included in (a) and (b) (d) Other Centres Centres not included in (a), (b) and (c) detailed above

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We thank Shri M S Sundara Rajan, Chairman & Managing Director, Shri A Subramanian and Shri A S Bhattacharya, Executive Directors, Shri V Srinivasan, General Manager (HRM) and his team for making the above improvement possible. We are sure that the above improvement will enthuse our members and we avail this opportunity to call upon them to redouble their efforts to ensure success in all spheres of business promotion and contribute their best for the systematic growth of the Bank.

With Greetings,

Yours Comradely, T. T. NATARAJAN

SECRETARY GENERAL

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CIR.NO:AI/32/2008–2011 24.02.2009

TO ALL MEMBERS

Dear Comrades,

TALKS WITH IBA ON WAGE REVISION & PENSION

IBA BECOMES ADAMANT

GET READY FOR AGITATION

The discussions that took place on 21.02.2009 in Mumbai between UFBU and IBA

on the issues of 2nd Option on Pension and Wage revision did not progress on the

expected lines as the IBA took an adamant stand. The UFBU has taken a decision to

take up the matter with Finance Minister, Labour Minister and Chairman IBA and

also requested the members to be in readiness for any action programmes.

We reproduce herein the text of AIBOC Circular No.17 dated 21.02.2009 containing

the UFBU Circular No.4 for the information of our members.

With Greetings,

Yours comradely,

T. T. NATARAJAN

SECRETARY GENERAL


We were having lot of hopes that, in today’s meeting with IBA, a breakthrough on

Pension and Salary revision talks will be reached. Unfortunately, from the beginning,

the IBA negotiating committee took an adamant stand to impose defined contribution

pension scheme on new recruitees in Banks. The scheme which has been

implemented at Central Government and few state Governments, unilaterally, is yet

to get the approval of the Parliament. There have been strikes by the Government

Employees against the unilateral imposition of new pension scheme to new

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recruitees wef. 01.01.2004. The bad experience of defined contribution scheme,

implemented abroad is cautioning the unions to resist the new scheme which is

detrimental to the interest of the employees. The pension being a social security

measure, neither the Government nor the Bank Managements can absolve

themselves from their obligation. No where in the country trade unions have become

party to the new scheme. That apart, even the IBA is not clear about the proposed

new scheme. It is not fair on the part of the IBA to link extraneous matter with the

MOU issues. We have expressed our willingness to discuss the new pension

scheme later, but IBA wants to settle this issue first before taking up 2nd option on

Pension & Salary Revision for discussion. Naturally, UFBU can not buckle to the

pressure of the IBA/Government there by enabling them to push through a disputed

agenda on priority. Hence, UFBU has decided to take up the matter with the IBA

Chairman & the Government for amicable settlement on urgent basis. If good sense

does not prevail upon the Government / IBA, the UFBU will be forced to take the line

of agitation including strikes during March 2009. We are aware that membership is

ready for any action to clinch the legitimate long pending demands but it is

necessary to prepare them for long drawn struggle. We, therefore urge upon our

affiliates / members to keep the powder dry and be in readiness to jump into action

at short notice.

2. Comrades, many a battles we have fought, not a single we have lost .Victory will

be ours, we reproduce hereunder circular of UFBU dated 21.02.2009 for your

information.

With warm greetings,

Sd/ (G.D.NADAF) GENERAL SECRETARY

TEXT OF UFBU CIRCULAR NO: 4 DATED 21st FEBRUARY, 2009.

“Today, another round of talks took place with the IBA in Mumbai on our pending

demands of pension option and wage revision.

1. Pension option: -

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As mentioned in our earlier circular, IBA insisted on introduction of new pension

scheme i.e. defined contributory scheme on the lines of the scheme unilaterally

introduced by the Central Government since 2004.

After discussions, IBA stated that while some option can be given to the new recruits

to choose between the existing pension scheme and the new pension scheme,

within a period of three months, such an option facility can be available only for one

year and thereafter, the new pension scheme should alone be operative for the new

recruitees.

After mutual consultation, from UFBU we offered as under: -

a) Existing scheme to continue.

b) IBA should give the full details of their proposed new pension scheme.

c) After study of the new scheme, IBA & UFBU can discuss the feasibility of

introducing the new scheme after one year for the new recruitees.

d) In the meantime, the issue should be de-linked and option for the existing

employees should be extended by finalizing the sharing formula without any further

delay.

IBA informed us that they do not have any mandate to agree to our proposal but

agreed to go to their Managing Committee scheduled on 27.2.2009 to discuss our

proposal and thereafter would come back to us. However IBA reiterated that any

resolution of our demand for pension option for the existing employees will have to

be comprehensively resolved including a scheme for the new recruits.

2. Wage Revision:

On wage revision, IBA informed that they do not have mandate to go beyond the

earlier offer of Rs. 3600 crores and hence cannot improve their offer any further.

In the light of above approach of the IBA, the UFBU met thereafter and felt that

IBA is trying to go beyond the MOU of February, 2008 wherein no such

conditionalities were informed by IBA on pension scheme. The meeting felt that in

the matter of wage revision also, the IBA attitude was unreasonable since given the

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reasonable demand submitted by us, their offer falls far short of making any ground

for a settlement.

Hence, the meeting decided that while we should take up the matter immediately

with the Government and IBA Chairman to impress upon them to expedite the

resolution of our above demands, the rank and file should be kept in readiness for

agitation programmes including strike action should the IBA and Government try to

impose their conditions and thus delay settlement.

The meeting decided to immediately meet and submit a memorandum to Finance

Minister, Labour Minister, Chairman of IBA and Chairman of Negotiating Committee

in this regard.

Comrades, it appears that our patience and reasonable approach are being

misunderstood as our weakness. Our genuine demands are being delayed due to

their rigid attitude and approach. It is time to get ready for action.

We shall briefly wait for the response of the IBA and the Government and give the

call for action programmes.”

Sd/- C.H. VENKATACHALAM CONVENOR

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CIR.NO:AI/33/2008–2011 12 03 2009

TO ALL MEMBERS Dear Comrades, AIBOC OBTAINS INTERIM INJUNCTION ON LEVYING OF TAX ON

PERQUISITE VALUE OF RESIDENTIAL ACCOMMODATION Our National Organization AIBOC has filed a writ petition in WP No.5343 of 2006 in the Hon’ble Madras High Court challenging the constitutional validity of Section 17(2) of Income Tax Act as amended by Finance Act, 2007 and has sought for an injunction, restraining the Banks from levying or collecting or deducting any tax on the perquisite value of residential accommodation. We are glad to inform our members that the Hon’ble Madras High Court, by its order has granted interim injunction as prayed for and we have taken up the matter with our Management for compliance of the Court Order and provide the necessary relief. In response, our HO: HRM Department has issued instructions advising the branches / offices not to reckon the perquisite value of accommodation provided to officers for the calculation of Income Tax for the current financial year. We request all our members to kindly take note of the above developments and avail the applicable relief. We note to keep the members informed of further developments. With greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

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CIR.NO:AI/34/2008–2011 14 05 2009

TO ALL MEMBERS Dear Comrades,

Certain Improvements in Staff Welfare measures

The need for improving the staff welfare measures has been continuously highlighted by our Association and our relentless persuasion in this regard had yielded the desired result. The Central Staff Welfare Committee which met on 29 04 2009 had approved the following improvements in the staff welfare schemes.

Staff members who have retired on superannuation or under medical grounds are presently provided with a medical aid of Rs.1500/- per annum on declaration basis and this medical aid has been increased to Rs.3000/-.

A memento of value Rs.1000/- is being presented to the staff retiring on superannuation on the day of his/her retirement in recognition of the services rendered by them to our Bank. The value of the memento has been increased from Rs.1000/- to Rs.5,000/-.

Under Staff Welfare Scheme, reimbursement is allowed upto a ceiling limit to cover the difference amount between the amount reimbursed under BPS/IBOSR and the claim preferred in respect of Open Heart Surgery, Closed Heart Surgery, Bypass Surgery, Catheterization – Angiogram, Angioplasty, Kidney Transplantation, Orthopaedic Surgeries and Cancer. Liver transplantation is also included now under this category and the difference amount to the extent of Rs.3.00 lakhs will be sanctioned.

The Scholarship Scheme is presently applicable upto officers in Scale-II and the same is now modified and extended to all the officers’ upto the level of Scale-IV. The scheme for grant of books and uniforms has been broad based and the restrictions are removed so that the staff members are eligible for a grant to their ward every year.

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Under the scheme providing for reimbursement of cost of accessories to physically handicapped employees, inclusion of Hearing aid as one of the accessories to get the reimbursement upto Rs.5,000/- is now introduced and further it has been decided to provide Rs.1,000/- per year as grant to all blind staff.

We have requested the Management to explore the possibility of bearing the risk portion of premium under GSLI Scheme upto a level and we are expecting the positive response from the Management.

A detailed circular will be issued by HO: HRM Department covering the above improvements made in the staff welfare schemes.

We thank our Chairman & Managing Director Shri M S Sundara Rajan, Executive Directors Shri A Subramanian and Shri A S Bhattacharya, General Manager (HRM) Shri V Srinivasan and his team and other members of the Central Welfare Committee for the improvements brought about in the staff welfare schemes and look forward for further improvements in the existing schemes and introduction of new schemes in the days to come.

On this occasion, we request all our members to avail the free health check up for self and spouse as per the eligibility (HO: HRM Circular No.54/2008-09 dated 09 09 2008) and take care of their health. We also request our members to bring to the notice of the retired staff on superannuation about the health insurance scheme introduced by the Bank (HO: HRM Circular No.55/2008-09 dated 09 09 2008) and also the increase in medical aid so that the benefit can reach them. With greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

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SALARY REVISION TALKS WITH IBA ON 11.05.2009 FAIL

STRIKE ON 12.06.2009

Members are aware that UFBU has been earnestly pursing for an amicable settlement on our long pending issues viz., Salary Revision, Pension Option and Compassionate Appointment etc. However, due to absence of reciprocative attitude on the part of IBA, the talks held with IBA on 11.05.2009 have failed and hence UFBU has rightly decided to go on agitational programme commencing with a one day Strike on 12.06.2009. We reproduce hereunder the text of UFBU circular No.6 dated 11.05.2009, for the information of our members. We call upon our members to implement the programmes and the strike action meticulously. With greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL ___________________________________________________________________

Text of UFBU Circular No 6 dated 11.05.2009

2. Units and members are aware that UFBU has been trying its best to expeditiously and amicably settle our long pending demands for Wage Revision, Pension Option and Compassionate Appointments / Ex-Gratia scheme. Quite a few rounds of talks have taken place with IBA, but things are not moving in the right direction. IBA and the Government appear to have taken out reasonable approach as our weakness.

3. Today, there was another round of talks between IBA and UFBU. During the discussions, IBA improved their offer to Rs. 4125 croress i.e., an increase of 15% over the wage bill as of 31.03.2007. From UFBU, it was made clear to IBA that taking into account all the factors and circumstances that warrant a substantial wage increase for the bank employees and officers, the offer of IBA too inadequate and falls short of UFBU demands and expectations. Hence UFBU rejected the offer of IBA.

4. As regards Compassionate Appointments / Ex-Gratia payment Scheme, units are aware that at the instance of the Government, a mutually accepted scheme had been finalized by IBA and UFBU and sent to Government for formal clearance. It is now learnt that the Government is not agreeable to extend the

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revised scheme to past cases from July 2004, when the unilateral scheme was introduced in the banks even though IBA had agreed to the same. We informed IBA that it is unfortunate that a scheme finalized by collective bargaining is sought to be bureaucratically scuttled by the Government, and hence demanded that the scheme mutually finalized between IBA and UFBU should be implemented without any further delay.

5. As to our demand for extending another option to the PF optees to join the pension scheme, IBA rejected our proposals given during the last round of talks and insisted that the new pension scheme should be accepted by the UFBU for future employees as a pre – condition. UFBU refused to accept this unfair condition of IBA.

6. In the matter of outsourcing, IBA wants UFBU to give total freedom to management to outsource banking jobs and services and UFBU could not agree to the same.

7. Because of this approach and stand point of the IBA, our efforts to amicably settle our demands have been frustrating. UFBU met immediately thereafter and decided to launch agitational programmes to press our following demands.

Expedite Wage Settlement with adequate increase in wages of employees and officers.

Extend another option for pension scheme without any pre-Conditions. Do not impose anti- employee conditions in the negotiations. Implement Compassionate Appointment / Ex-Gratia Scheme as per

agreed understandings.

After detailed deliberations; the meeting decided upon the following programmes:

a. Delegation and submission of memorandum to CMDS of all Banks by Unions in respective banks on a date fixed by our units.

b. Delegation to IBA Chairman by UFBU. c. Centralized Mass Rally / Demonstration at all state and districts head

quarters on 20.05.2009. d. Badge Wearing on 26.05.2009. e. Branch level joint demonstration on 26.05.2009. f. Dharna by UFBU units in all State Capitals and major towns on

04.06.2009. g. Centralized Mass Rally / demonstration in all centres on 11.06.09. h. All India Strike on 12.06.2009. i. 2 days Strike by middle of July, 2009. j. Further intensification / Strike Actions thereafter.

Comrades, we have negotiated with all our sincere efforts to expedite the settlement, but we regret that we are once again pushed to the path of agitation. We call upon all our units and members to implement all action programmes effectively. With Warm Greetings,

Yours Comradely,

Sd/- C. H. VENKATACHALAM CONVENER

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Dear Comrades,

ALL INDIA STRIKE ON 12th JUNE 2009 UFBU SERVES STRIKE NOTICE ON IBA

We draw the attention of our members to our earlier Circular No. AI / 35 / 2008-2011 dated 14.05.2009 on the UFBU’s call for ONE day Strike on 12th June 2009 demanding another option for Pension Scheme without any preconditions, to expedite wage settlement with adequate increase in wages of employees and officers, opposing imposition of anti-employee conditions in the negotiations and implementation of Compassionate Appointment / Ex-Gratia Scheme as per agreed understandings. The UFBU has issued a strike notice on 17th May 2009 to the Chairman IBA, Mumbai. We reproduce below the text of Strike Notice for information of the members. We call upon our members to implement the programmes and the Strike Action successfully. With greetings, Yours Comradely,


Text of UFBU /2009/ STRIKE NOTICE dated May 17, 2009

FORM – 1

NOTICE OF STRIKE

NAME OF UNIONS: UNITED FORUM OF BANK UNIONS (U.F.B.U.)

ALL INDIA BANK EMPLOYEES’ ASSOCIATION (AIBEA) ALL INDIA BANK OFFICERS’ CONFEDERATION (AIBOC) NATIONAL CONFEDERATION OF BANK EMPLOYEES (NCBE) ALL INDIA BANK OFFICERS’ ASSOCIATION (AIBOA) BANK EMPLOYEES FEDERATION OF INDIA (BEFI) INDIAN NATIONAL BANK EMPLOYEES FEDERATION (INBEF) INDIAN NATIONAL BANK OFFICERS CONGRESS (INBOC) NATIONAL ORGANISATION OF BANK WORKERS (NOBW) NATIONAL ORGANISATION OF BANK OFFICERS (NOBO)

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NAMES OF ELECTED REPREENTATIVES

1. Shri. C. H. Venkatachalam, General Secretary, AIBEA & Convener, UFBU 2. Shri. G. D Nadaf, General Secretary, AIBOC 3. Shri. S. A. Kadri, General Secretary, NCBE 4. Shri. R. J. Sridharan, General Secretary, AIBOA 5. Shri. Pradeep Biswas, General Secretary, BEFI 6. Shri. Subhash Sawant, General Secretary, INBEF 7. Shri. K. K. Nair, General Secretary, INBOC 8. Shri Ashwini Rana, General Secretary, NOBW 9. Shri. Bapu Joshi, General Secretary, NOBO

Dated this day of 17th May, 2009

The Chairman, Indian Banks’ Association, World Trade Centre, 6th Floor, Cuffe Parade, Mumbai Sir, In accordance with the provisions contained in subsection (1) of Section 22 of

the I.D. Act – 1947, we hereby give you notice that the members of all the

constituent unions of United Forum of Bank Unions ( AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF, INBOC, NOBW, NOBO) propose to go on strike on the 12th JUNE , 2009.

DEMANDS: 1. Expedite Wage Settlement with adequate increase in wages of employees and Officers. 2. Extend another option for Pension Scheme without any pre-conditions. 3. Do not impose anti – employee conditions in the negotiations. 4. Implement Compassionate Appointment / Ex-Gratia Scheme as per agreed understandings.


CONVENER Encl: 1. Statement of the Case

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Statement of the Case

1. Expedite Wage Settlement with adequate increase in wages of employees and officers. The last Settlement on revision of wages and service conditions of bank employees was signed between the bank unions and the IBA on 02.05.2005 w.e.f. 01.011.2002 to be effective for a 5 years period from 01.11.2002 to 31.10.2007. In view of the ending of the period of this settlement on 31.10.2007, the Unions had submitted a common charter of demands from the employees unions and officers association on the IBA in October, 2007 urging upon them to consider our demands and expedite the settlement with a fair increase in wages. IBA assured to commence the negotiations and expedite the settlement. But the discussions on our demands commenced only in May, 2008. In the last 18 months period after submitting our charter of demands, there have been only 8 rounds of discussions on our demands including the discussions on the IBA’s demands. As against our demands, the IBA has come forward with their offer of an increase in the wage bill by 15%. This offer is too inadequate in the context of the changing work profile and role and responsibilities of bank employees and officers in the given competitive environment, increased volume of work in the branches for the employees and officers and better packages extended to employees and officers in other sectors by the Government in recent period. 18 months are already over and hence there is a need to expedite the settlement with fair increase in wages without any further delay. 2. Extend another Option for Pension Scheme without any Pre-conditions. IBA is aware of the long pending demand of the UFBU for extending another option to the PF optees to join the Pension Scheme. After lot of strikes agitations, deliberations, IBA agreed in principle to consider our demand for pension option and UFBU agreed to share a part of the additional cost by working out the cost of such an option. From the side of the UFBU, we have shown a flexible attitude to find out an acceptable solution to bear a part of the cost. From IBA it was demanded that UFBU should agree for the introduction of a new Defined Contributory Pension Scheme for the future recruits on the lines of the Government’s scheme as against the existing Defined Benefit Pension Scheme as is provided in the Pension settlement. From UFBU we had offered as under:

(a) Existing Scheme to continue.

(b) IBA should give the full details of their proposed new pension scheme. (c) After study of the new scheme, IBA & UFBU can discuss the feasibility of

introducing the new scheme after one year for the new recrutiees. (d) In the meantime, the issue should be delinked and option for the existing

employees should be extended by finalizing the sharing formula without any further delay.

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But it has become clear that IBA and Government are putting a pre-condition that unless UFBU agrees for the imposition of a new contributory pension scheme for the future employees, our demand for pension option for the existing employees would not be agreed upon.

While UFBU has reiterated that it will deal with this fresh question with an open mind after the settlement is signed, it should not be made a pre-condition for finalizing the modalities of extending the option to the existing employees. 3. Do not impose anti-employee conditions in the negotiations. When we gave our charter of demands, IBA has also given a list of management issues to be resolved as a part of the next wage revision settlement. This is quite understandable and we shall be ready to deal with the same as are warranted by the need of the industry for better administration, customer serviced, etc. We have done so in the past even on very sensitive issues like technology, etc. We have been quite forthcoming on some their issues even this time. But, IBA’s expectation that the bank management should be given total freedom on outsourcing is totally unacceptable to us. Such a pre-condition is also not acceptable to us. 4. Implement Compassionate Appointment / Ex-Gratis Scheme as per agreed understandings. Similarly, right from 1996, based on certain guidelines of Government, the scope of compassionate appointments in the Banks were reduced and from July,2004, by another unilateral guideline of the Government, such appointments have been totally banned and in lieu of that unilateral ex-gratia lumpsum scheme has been introduced. This has also been an important issue of the conflict between UFBU and IBA / Government. In the MOU of February, 2008, it was agreed that the suggestions of the UFBU would be kept in mind for modifying the scheme. We had given a very detailed and exhaustive suggestions to the IBA. But we were informed by IBA that the Government desires a mutually agreed suggestions of IBA and UFBU. In order to find an amicable solution, we had stretched ourselves and enabled the working out of a scheme and that was duly sent to the Government for approval. It is learnt now that the Government wants further changes in the scheme in relation to retrospective effect. The number of deaths in the banks is very very negligible to the extent of not more than 0.50% per year. When the dispute has arisen on account of the unilateral scheme of July, 2004, the solution thereof cannot exclude the past cases thereafter.


CONVENER

Copy to:

1. Chief Labour Commissioner (Central), New Delhi 2. CMDs / MDs / CEOs of All Banks

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BREAKTHROUGH IN TALKS – IBA IMPROVES OFFER FURTHER TALKS SHORTLY – UFBU DEFERS STRIKE

We draw the attention of our members to our earlier Circular No. AI/ 36 / 2008-2011 dated 19.05.2009 on the UFBU serving Strike Notice on IBA for settling our long pending demands. The Chief Labour Commissioner intervened in the matter and in the meeting held on 04.06.2009, C L C have advised both UFBU and IBA to sit together to sort out the issues. But, IBA took a stand that unless strike is withdrawn, no talks would be held. Hence UFBU decided to go ahead with the Strike. In the face of countrywide preparations for the strike, IBA changed their stand and came forward for discussions on our demands. Accordingly the meeting with IBA took place on 09.06.2009, at Mumbai We reproduce the text of UFBU’s Circular No. 8 dated 09.06.2009 on the outcome of the meeting with IBA for the information of our members. We shall keep our members informed of further developments. With greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

Text of UFBU Circular No.8 dated June 09, 2009

1. In the conciliation meeting held by Chief Labour Commissioner at New Delhi between IBA and UFBU on 4/6/09, the CLC had advised both parties to sit together across the table to sort out the issues. While from UFBU we had agreed to this suggestion in order to find amicable solution to our demands, IBA however took the stand that unless the strike is withdrawn, no talks would be held.

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2. Hence UFBU decided to go ahead with the strike. In the face of our countrywide preparations for the strike, IBA changed their stand and came forward to hold further discussion on our demands.

3. Accordingly, a round of Bipartite discussion was held between IBA and

UFBU today (09-06-09) in Mumbai. Arising out of the discussions, the following positions have emerged.

i) The precondition that the unions should agree for new pension scheme to be made applicable to the new recruits would not be insisted upon. IBA stated that the existing pension scheme will continue to be applicable to all new recruits up-to 31/03/2010, but UFBU stated that this should be extended up-to 31/10/2012, and matter should be reviewed thereafter. The issue will be further discussed.

ii) Regarding sharing of additional pension cost, it has been agreed that banks would take a share of Rs.4200 crores and employees / officers at Rs.1800 crores.

iii) To our demand for a minimum increase of 20% in the wage bill, IBA was

willing to improve their offer from 15% to 17% subject to approval by Managing Committee. UFBU wanted IBA to further improve their offer to 20%.

iv) In view of the breakthrough in the pre-conditions and the willingness of

the IBA to finalise our demands with a positive approach within a short time, UFBU decided to defer our proposed strike on 12/06/2009.

v) It has been agreed that IBA and UFBU will meet again very shortly to

finalise the understandings on our demands.

4. Comrades, our unity and our preparations for the strike have resulted in this breakthrough. We shall further continue our efforts to achieve our demands expeditiously.

Keep this unity in tact and keep the powder dry.

--Sd/-

(C.H. VENKATACHALAM) CONVENER

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MEETING WITH IBA DOES NOT YIELD RESULT

UFBU GIVES CALL FOR 2 DAYS STRIKE ON 06TH AND 07TH AUGUST, 2009

DEMANDS: RESUME OF TALKS AND EXPEDITE SETTLEMENT

Members are aware that a stalemate has been created in regard to the negotiations of Salary Revision and 2nd Option on Pension Scheme due to the IBA going back on their offer of 17.5% to 15% on the increase in wage bill. The stand of the IBA is not only negative but also provocative. Thus agitation has been thrust upon us. IBA has informed that their stand is in view of the Government guidelines. Hence UFBU has decided to go on protest strike action for two days on 06th and 07th August 2009. We reproduce hereunder the text of UFBU circular No 11 dated 14.07.2009 for the information of our members. We call upon our members to implement the programmes and the strike action meticulously. We note to keep the members informed of further developments. With greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

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Text of UFBU Circular No. 11 dated 14.07.2009

1. We had earlier informed all our unions and members that further to the talks held on 09.06.2009, the IBA had made an offer of 17.5% increase in wage bill. However unfortunately on 17.06.2009, the IBA informed us that their offer stands withdrawn and reduced to 15%. This created a very serious and unprecedented affront to the entire negotiations. At the time when unions were adopting a realistic view to resolve the demands amicably, the IBA going back on their offer created a major stumbling block. However, before deciding upon any agitational programme, the UFBU decided to meet the Chairman of IBA with a view to find amicable solution.

2. In this background the leaders of UFBU met the Chairman of IBA today

(14.07.2009) in Mumbai in a deputation and made it clear that the IBA’s reduced offer is totally unacceptable besides being provocative. The IBA Chairman informed that they are acting as per the guidelines of Government and hence maintained their reduced offer of 15%.

3. In view of this stalemate, the UFBU met thereafter and decided that the

situation warrants serious agitational programmes. Accordingly the UFBU decided to give a call for 2 days All India Protest Strike Action on 06th and 07th August, 2009 demanding resumption of talks and expeditious settlement of our demands, to be followed by further intensified and continuous strike actions.

4. Comrades, the situation has been created by the IBA and the

Government. They have thrown a challenge to us. Hence this agitation has been forced upon us. We request all our units and members to realize the gravity of this situation and move as one man to push back the negative development and move towards the positive realization of our long pending demands.

With Warm Greetings, Yours Comradely, Sd/- C. H. VENKATACHALAM CONVENER

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PUSH BACK THE HURDLES AND ACHIEVE OUR DEMANDS

MARCH ON TO MAKE THE 2 DAYS STRIKE ON 06TH AND 07TH AUGUST A TOTAL SUCCESS

UFBU SERVES STRIKE NOTICE ON IBA

We draw the attention of our members to our earlier Circular No. AI / 38 / 2008 - 2011 dated 16.07.2009 on the UFBU’s call for 2 Days Strike on 06th and 07th August 2009, in the wake of IBA going back on their offer and that too at the behest of the Government and delaying the early settlement of our pending demands. It has to be resisted and fought back. Hence this agitation and strike action. The following are the action programme. – Mass Demonstration on 28.07.2009 in all Centres and Stations.

– Dharna in all State Capitals on 31.07.2009.

– Badge Wearing on 03.08.2009.

– Mass Demonstrations / Rallies / Processions on 05.08.2009

– All India Strike on 06.08.2009 & 07.08.2009.

– Further intensified programmes and Strikes thereafter.

We reproduce below the text of Strike Notice for information of the members. We call upon our members to implement the programmes and the Strike Action successfully. With greetings, Yours Comradely,


Text of UFBU /2009/ STRIKE NOTICE dated July 16.07, 2009

FORM – 1

NOTICE OF STRIKE

NAME OF UNIONS: UNITED FORUM OF BANK UNIONS (U.F.B.U.)

– ALL INDIA BANK EMPLOYEES’ ASSOCIATION (AIBEA)

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- ALL INDIA BANK OFFICERS’ CONFEDERATION (AIBOC) – NATIONAL CONFEDERATION OF BANK EMPLOYEES (NCBE) – ALL INDIA BANK OFFICERS’ ASSOCIATION (AIBOA) – BANK EMPLOYEES FEDERATION OF INDIA (BEFI) – INDIAN NATIONAL BANK EMPLOYEES FEDERATION (INBEF) – INDIAN NATIONAL BANK OFFICERS CONGRESS (INBOC) – NATIONAL ORGANISATION OF BANK WORKERS (NOBW) – NATIONAL ORGANISATION OF BANK OFFICERS (NOBO)

NAMES OF ELECTED REPREENTATIVES

1. Shri. C. H. Venkatachalam, General Secretary, AIBEA & Convener, UFBU 2. Shri. G. D Nadaf, General Secretary, AIBOC 3. Shri. S. A. Kadri, General Secretary, NCBE 4. Shri. R. J. Sridharan, General Secretary, AIBOA 5. Shri. Pradeep Biswas, General Secretary, BEFI 6. Shri. Subhash Sawant, General Secretary, INBEF 7. Shri. K. K. Nair, General Secretary, INBOC 8. Shri Ashwini Rana, General Secretary, NOBW 9. Shri. Bapu Joshi, General Secretary, NOBO

Dated this day of 16th July, 2009

The Chairman, Indian Banks’ Association, World Trade Centre, 6th Floor, Cuffe Parade, Mumbai Sir, In accordance with the provisions contained in subsection (1) of Section 22 of the I.D. Act – 1947, we hereby give you notice that the members of all the constituent unions of United Forum of Bank Unions ( AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF, INBOC, NOBW, NOBO) propose to go on strike on the 06th and 07th August, 2009. DEMANDS: 1. Resume Negotiations immediately. 2. Expedite Settlement of our demands on Wage revision, Pension option and Compassionate ground appointments / financial compensation scheme.


CONVENER Encl: 1. Statement of the Case 2. Details of Agitational Programme

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STATEMENT OF THE CASE

The last Settlement on revision of wages and service conditions of bank employees was signed between the bank unions and the IBA on 02.05.2005 w.e.f. 01.011.2002 to be effective for a 5 years period from 01.11.2002 to 31.10.2007. In view of the ending of the period of this settlement on 31.10.2007, the Unions had submitted a common charter of demands from the employees’ unions and officers’ association on the IBA in October, 2007 urging upon them to consider our demands and expedite the settlement with a fair increase in wages. IBA assured to commence the negotiations and expedite the settlement. But the discussions on our demands commenced only in May, 2008. In the last 18 months period after submitting our charter of demands, there have been only 9 rounds of discussions on our demands including the discussions on the IBA’s demands. During the course of the negotiations the IBA came forward with their offer of an increase in the wage by 15%. Since this was felt as very inadequate, the offer was not acceptable to the UFBU and hence a call for strike on 12.06.2009 was given. Chief Labour Commissioner (Central) intervened and held a conciliation meeting on 04.06.2009. As per his advice, another round of bipartite talks was held on 09.06.2009. In this meeting the IBA increased their offer to 16 / 17 % and then subsequently made the offer of 17.5%. This was not agreed to by the UFBU but having regard to the positive attitude shown by the IBA and earnestness to resolve the demands amicably, we agreed not to implement the strike call and accordingly deferred the strike action programmed for 12.06.2009. While we were looking forward for further discussions and an expeditious settlement, the IBA informed us on 17.06.2009 that in terms of Government’s guidelines / advice, their earlier offer stands withdrawn and reduced to 15% (from 17.5%). This has created an unprecedented situation as in the last 40 years of bilateral negotiations and relationship with IBA, such an action of going back on commitments or reducing their agreed offer has never been witnessed. When the employees and officers are anxiously awaiting a fair wage revision and early resolution of the demands, the IBA / Government decision has created wide unrest and resentment amongst the bank employees and officers. We immediately took up the matter with the IBA and urged upon them to withdraw their reduced offer and resume negotiations from where we ended in the last round of talks so that the demands can be settled without any further delay. Having waited for a month and observing that no earnest action is being taken by the IBA / Government in this regard, UFBU is constrained to express the resentment and protest of the bank employees and officers against their going back on agreed offer and reducing the offer made in the negotiations.

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The delay in settlement of our demands for early and fair wage revision, another option to join the pension scheme and a revised scheme on compassionate grounds appointments / financial compensation scheme to give relief to the family of the employees / officers who dies while in service have resulted widespread unrest amongst the bank employees and officers. Hence our demand:

1. Resume Negotiations immediately. 2. Expedite Settlement of our demands on Wage revision, Pension option

and Compassionate ground appointments / financial compensation scheme. ___________________________________________________________________ Details of Agitational Programmes:

1. Demonstrations, mass rallies, processions, postering, etc. in all the branches and stations all over the country preceding the strike.

2. ALL INDIA STRIKE IN ALL PUBLIC SECTOR, PRIVATE SECTOR AND FOREIGN BANKS ON 06TH AND 07TH AUGUST, 2009.

3. Further intensification / Strike Actions thereafter. ___________________________________________________________________


CONVENER

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Holding of Meetings on Sundays and Holidays, Compulsory late sittings and undignified treatment meted to Branch Managers / Officers.

We have been repeatedly impressing upon the Management that the Branch Managers and Officers are working under tremendous constraint of man power shortage and as a result they are virtually worn out and under this situation holding of meetings on Sundays and holidays, continuous late sittings and the undignified treatment by certain superiors are only causing widespread resentment and de-motivation. We earnestly expected that our views in this regard will be perceived in the right perspective and corrective action will be taken. But to our surprise we found that the trend of holding meetings on Sundays and holidays have increased, late sittings are advocated contrary to the directions given by the Chairman and Managing Director and there were complaints about the undignified treatment meted out to the Branch Managers. Hence we have addressed a letter to the Chairman and Managing Director, copy of which is reproduced for the information of our members. We hope that our letter will receive the due attention of the Management and the disturbing trend would be arrested. We note to keep the members advised of the further developments in this regard. With greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

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Letter addressed to CMD by our All India Body dated 20.07.2009

The Chairman & Managing Director 20 07 2009 Indian Bank Chennai 600 001 Dear Sir, Sub: Holding of Meetings on Sundays and Holidays, Compulsory late sittings and undignified treatment meted to Branch Managers / Officers.

** ** **

We have been repeatedly voicing our deep concern over the increasing tendency exhibited by certain Circle Administrations in holding the Business Meetings and Melas on Sundays and Holidays. We have also brought to your kind attention about the compulsory late sittings observed in various Circle Offices and Branches. We were very much delighted when your goodselves openly declared in many meetings and in the recently held Triennial Conference of our Tamil Nadu unit at Puducherry on 20th June 2009 that you are against the late sittings and all officers can leave the office latest by 7-00 pm. Likewise, your goodselves had expressed on many occasions that you are against holding meetings on Sundays and Holidays and that the week end should be exclusively reserved for the social and family life of officers.

In the above background, we earnestly expected that the Circle Administrations will take the cue from the declarations made by the Chairman & Managing Director and would desist from holding meetings on Sundays and Holidays and further avoid late sittings on a regular basis. Our expectations are belied and what we witness in reality is just the reverse. Recently, a crash programme on credit was organized on a Sunday in many Circles though this programme was suggested for being organized on Saturdays. Further, Loan Melas, CASA campaigns are planned for Sundays and Holidays continuously involving all the officers working in the Circle Offices on all the days besides the officers working in the respective branches.

We have earnestly taken up the matter with your goodselves and we were assured that except the crash programme on credit which is being organized to give a fillip to credit promotion, that too the programme being suggested to be organized on Saturdays, suitable instructions would be issued to avoid meetings or any other kind of programmes requiring the presence of officers on Sundays and Holidays. But what we observe is an unrelenting attitude in this regard by various Circle Administrations. Going little further, certain Circle Administrations have declared that they will conduct review after the crash programme to ensure that the officers do not get any time to relax and attend to their family needs. The situation is most frustrating and it demoralizes and de-motivates the officers. Your goodselves would agree that the business model adopted by our Bank is mass based and it results in enormous work load. Pensioners, Self Help Groups, Jewel Loan customers dominate our business model. As a result, officers are confined to the work place for more than 10 to 12 hours. They run out of their energies and hardly get time to attend to their families. They are also human beings and need

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some rest. The physical and emotional wear out manifest at some stage and land the officers in various health problems. The result of all these is the officers showing a sign of withdrawal which is reflected by the spate of resignations and voluntary retirements. Added to this is the undignified treatment in the hands of the superiors and the coercive culture exhibited by them. The oft repeated utterance by certain Circle Heads “If you cannot perform, you quit / put up your papers”, in the Branch Managers Meetings and at times in the presence of the HDFC insurance officials is sending a sweeping wave of demoralization. In the above background, we sincerely feel that your goodselves should effectively intervene in the matter and urge upon the various tiers of administration to stop forthwith the holding of meetings on Sundays and Holidays and put an end to the endless late sittings and also advise them to change their anarchical mindset and start treating the officers with dignity and decency. We are writing this letter as we are very much disappointed that the well intended declaration of the Chairman & Managing Director in the matter of building motivation by avoiding meetings on Sundays and Holidays, late sittings and the advice given by the General Manager (HRM) through HO: HRM Circular No.61/2008-09 dated 23 09 2008 that none can transgress the limits of decency and decorum are given the least regard by the various tiers of administration and as a result they prevent building up of a positive work culture which is hampering the progress of the Institution. We hope and trust that your goodselves will understand and appreciate our concern and do the needful to win the hearts of officers and motivate them to further accelerate the growth of the Institution. Yours faithfully, Sd/- T. T. NATARAJAN SECRETARY GENERAL Copy to: The Executive Director, Indian Bank, Chennai.

The General Manager (HRM), Indian Bank, Head Office, Chennai All Circle Heads.

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TWO DAYS STRIKE - A GRAND SUCCESS

Two Days Strike call given by UFBU was a thunderous success. The strike action on 6th and 7th August, 2009 was marked by mass rallies and demonstrations attended by large number of Bank Employees and Officers. The massive participation of Bank Employees and Officers indicated their disillusionment and dismay over the provocative stand taken by the IBA on the burning issues which are remaining unresolved for a long time. More than 8 lac Employees working in the Banking Industry, comprising Public Sector Banks, Private Sector and Foreign Banks struck work demanding:

Immediate Resumption of Bipartite negotiations.

Expeditious settlement of our long pending demands on Wage Revision, 2nd Pension Option and Compassionate Ground Appointment / Financial compensation scheme.

The unity and solidarity displayed by the rank and file in the two days strike compelled the Government and IBA to take up the negotiations on a serious note and hence CLC convened an emergent meeting on 07th August, 2009 with a view to resolve the current impasse. We reproduce below the text of AIBOC Circular No.61 dated 08.08.2009 for the information of our members. We heartily congratulate all our Comrades in making the two days strike programme a thunderous success. Let us be in readiness to plunge into action till we clinch all the legitimate and just demands. We shall keep our members informed of further developments. With greetings, Yours Comradely,


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Text of AIBOC Circular No.61 dated 08th August,2009

Comrades, the unity and solidarity displayed by the rank and file in the implementation of 2 days strike action on 6th and 7th August 2009, across the country in pursuance of the salary revision and also the 2nd option on Pension and other related issues to a logical end compelled the Government and IBA to take up the current negotiations on a serious note and hence the CLC convened an emergent meeting on the evening of 7th August 2009 with a view to resolve the current impasse. The meeting was attended by the constituent of the United Forum of Bank Unions in order to explore the possibility of getting a smooth resolution of the issue if feasible. Dr. K. Ramakrishnan, the Chief Executive along with Sarvashri K. Unnikrishnan and M. Venugopalan the executives of IBA participated in the meeting and presented their views on behalf of IBA. 2. The details of the discussions are as follows: The Chief Secretary, IBA, Dr. K. Ramakrishnan, submitted that after reconsideration, IBA proposed to revise offer as a package in toto as under: (i) Increase in wage 17.5% increase in the establishment expenses over the establishment expenses of banks as on 31.03.2007. (ii) New Pension Scheme to be introduced to new entrants with effect from 1.4.2010. (iii) The existing PF optees may be given another option for pension as per understanding reached between IBA and UFBU on June 9, 2009 when it was agreed that the employees would share Rs.1800 crores out of Rs.6000 crores funding gap identified in the joint actuarial valuation subject to the condition that at the time of the next settlement again another actuarial valuation will be carried out and the funding gap so arrived at would be shared in the ratio of 30% by the employees and 70% by the management. The representatives of the management added that compassionate appointment issue will be discussed separately. 3. Convenor of UFBU submitted on behalf of the UFBU that while taking the note of the offer of the management, the constituent unions need further clarifications on certain issues. UFBU suggested that IBA may fix up a Bipartite meeting at the earliest for the purpose. 4. CLC[C] suggested that parties may hold a Bipartite discussion as early as possible. The next date of conciliation proceedings will be fixed after hearing from the parties. 5. Comrades, the leadership of the Confederation is not fully satisfied with the offer made by IBA and wanted that the increase should be stepped to meet its original demand. It is in this background, we have to now look forward for the next round of discussions and continue our effort to get an equitable and reasonable salary revision as well as the 2nd option on Pension to our rank and file while ensuring an early resolution of the Compassionate Appointment Scheme. In the meanwhile, the Confederation is making sincere efforts through informal discussions with all concerned to ensure a fair deal to the bank employees when the banks are performing exceedingly well and they are taking up all the responsibilities entrusted to them by the Government from time to time.

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6. The IBA is expected to invite the representatives of UFBU as per the directives of the CLC. We are confident that the members will be in readiness to jump into action in case the IBA fails to come to the expectations of the rank and file and provide us a reasonable settlement to ensure a fair and equitable salary revision for the Officers community in the banking industry. We note to keep you advised of further developments in due course. With revolutionary greetings,

Sd/- (G.D.NADAF)

GENERAL SECRETARY

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PERFORMANCE AND BRANCH MANAGERS

Our HRM Department Circular issued under the caption “Non Performing Branch Managers” has totally upset the Branch Managers and we have received spate of calls requesting us to suitably respond to the communication highlighting Man power shortage and other operational constraints under which the Branch Managers are functioning. We have written a letter to the Management urging upon them to appreciate the genuine problems faced at the field level and also pointing out that the Branch Managers have done well despite the constraints and it is time that the Management initiate steps to mitigate the work place constraints as that will accelerate the growth process of the institution. The text of our letter dated 28.07.2009 is reproduced for the information of our members. With greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL ___________________________________________________________________________

Text of our letter dated 28.07.2009 under the caption “Branch Managers at Receiving End”

The Monday (27 07 2009) edition of the news paper “ The Hindu” proudly carries an advertisement given by our Bank conveying the heartfelt gratitude to the dear customers, patrons and well wishers of our Bank for receiving the Financial Express Award for India’s Best Nationalized Bank. The Wednesday (22 07 2009) edition of the news paper “Times of India” carried a news item that our dear Bank has won the Model Bank Award for 2009 from CELENT, a banking industry research and advisory committee for implementing core banking solution. The award was presented to our Chairman & Managing Director Shri M S Sundara Rajan by Shri Bart Narter, Senior Vice President, Banking Group CELENT.

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The above awards are besides our Bank being consecutively recognized as the Number One among the south based service brands by A C Neilson ORG Marg, American Newspaper ‘Forbes’ rating Indian Bank as a very strong organisation among the 47 organisations selected from India and our Tamil Nadu Government rating our Bank as Number One Bank for promotion of Self Help Groups. The above achievements were made possible by the untiring efforts put in by the staff, particularly the officers who are shouldering the entire work load on the operational front and the Branch Managers leading them from front. For making all these achievements possible, what the Branch Managers and the officers would naturally expect is a pat and a word of appreciation. But what they received in reality is mere ridicule and slur as conveyed in the above referred circular. The tone and tenor of the circular, the over generalized and the sweeping observations contained therein had totally upset the entire Branch Managers and we have received spate of calls that they cannot accept or digest or withstand this kind of insults any more. Some of the observations made in the circular are: “Functioning in CBS environment, there is no valid excuse for them to remain glued to their seats even after counter hours”. “As such, we strongly believe that the only reason for Branch Managers not stepping out of their offices for marketing is a total lack of interest in the development of the Bank, which cannot be condoned”. “We have now felt it the hard way, that it is high time such inaction on the part of concerned Branch Managers was not allowed to go unquestioned, any further. Henceforth, Branch Managers who do not move out of branches for meeting potential / existing customers seeking business would be deemed NON PERFORMERS. Appropriate action would be initiated against such non-performers, if it is found that they continue to disregard our instructions in this regard, which does tantamount to dereliction of duty”. The above observations lead us to believe that for the reasons best known to the Management, a conscious attempt is on to shift the blame to the doorsteps of the Branch Managers and further the Head Office Management wants to wish away the extreme constraints and difficulties under which the branches are functioning and the Branch Managers are helplessly enduring. In other words, the Head Office Management is not willing to come to grips with the vexatious issue of man power shortage and wanted to avoid addressing to the constraints that dominate the every day branch activity. We would like to make it clear that the observation made in the circular such as the Branch Managers lack interest in the development of the Bank and they remain glued to their seats etc., will carry no weight as the entire officers community of our Bank carry a history behind them of having made the turnaround of the Bank possible. None of the expert committees who studied the Bank during its set back time, i.e. be it TATA consultancy, ICRA, M.S. Varma Committee or the Advisory group led by Mr. Deepak Parekh faulted the lower level officers and Branch

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Managers. Thus it is a proven fact that the commitment of the Officers and Branch Managers to the Bank is unparallel. From the position of being almost written off, our Bank earned the proud name as ‘Come Back Bank’. The turnaround was no means a fluke and it has become possible because of the total commitment and involvement shown by the entire Indian Bank family which made the Government of India to rely on them and provide the necessary capital assistance. The fact that Government of India gave capital only after the representatives of the Unions and Associations signed the MOU will stand as proof of the same. Needless to say, the Branch Managers and Officers who are shouldering the entire responsibility of field operations had contributed their best in this regard. Having achieved the turnaround, our Branch Managers and Officers did not relax and they further ensured the accelerated growth of the Institution as could be seen from the fact that our Bank has now moved from the group of small size banks to the mid size banks. This achievement has been made possible despite severe constraints that our Branch Managers and Officers face and endure on a daily basis. We have been repeatedly pointing out that the business model adopted by the Bank is mass based and it results in enormous work load. Pensioners, Self Help Groups, Jewel Loan customers, collection of taxes dominate our business model. Everyday we can see an ocean of customers in our branches but at the end of the day if we calculate the business benefit that we would have derived, it would be the least. While the existing manpower itself is shrinking on account of retirement, resignations, VRS etc., opening of new branches further aggravate the depleted staff position. The recruitment proposed is no match for our actual need. The oft repeated slogan that CBS has reduced our work load is a myth and in reality it has increased the work load for the officers. Despite all these, the Branch Managers mobilize business and that has only enabled the Bank to receive good ratings/ awards /accolades during the financial year 2008-09 as mentioned in our CMD’s communication dated 17 07 2009. Officers of our Bank have lost almost 10 years of their career due to the set back faced by the Bank, but they exhibited their commitment to the Institution and did not remain struck with their frustrated mindset. Needless to say the Branch Managers carries the additional responsibility of steering and accelerating the business growth and they need to be encouraged, leave alone the awards and recognitions, they should not be hurt or insulted. We are not interested in joining issues concerning the growth of the Bank because we firmly believe that the pursuit of progress and growth is endless and we cannot afford to waver or falter or fail in our mission. However, we would like to point out that banking being a service industry, the Branch Managers being the real drivers of growth, nothing can be done which would result in de-motivating them. In fact, we are being asked as to why the above circular issued by the General Manager (HRM) dated 16 07 2009 and the Chairman & Managing Director’s communication dated 17 07 2009 are in different tones and tenors and what really the Management wants to communicate.

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It would be only in the fitness of things if the Management realizes that a sense of desperation is looming large because of extreme work pressure and the treatment meted out to Branch Managers and Officers. The Management wants everything to happen without attending to the manpower needs and other infrastructural necessities of the branches. It is time that earnest steps are initiated to provide relief in this direction and suitable amends are made for motivating the Branch Managers and Officers which should be unadultered and honest. While, neither an individual nor a group can claim monopoly over their concern and care for the Institution, the care, commitment and concern of our Officers and Branch Managers is second to none. We also do not undermine your concern for business development and growth but at the same time we would say that you have landed in a wrong choice in reasoning and identifying the factors that dampen our Bank’s growth and communicating them. In our view, it is high time that the Management starts mitigating the work place constraints in right earnest, the Circle Administration should play a pro active role in solving the problems faced by the branches instead of indulging in excessive control functions. Mere writing reminders, calling for explanations, finding out mistakes and lapses and reprimanding the Branch Managers for not reaching the target are not the only functions of Circle Administrations; rather they should exhibit a professional outlook and play a supportive and guiding role for achieving the business development as that alone will put the Bank on the track of progress. Towards this direction, we would request your goodselves to initiate steps and stop shifting the blame on the Branch Managers; as such an approach would not be in the interest of the Institution. Kindly acknowledge receipt of this letter. Thanking you, Yours faithfully, Sd/- T. T. NATARAJAN SECRETARY GENERAL

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UFBU MEETING

A meeting of the UFBU was held on 07.09.2009 at Chennai. Leaders of all the nine constituent unions were present. The meeting was presided over by Com. K.S. Shetty, President, AIBOC. The meeting congratulated the bank employees and officers for their magnificent unity and amazing militancy, thus making the 2 days’ strike on 6th and 7th August, 2009 a resounding success. The meeting noted that the unity of the rank and file under the banner of UFBU has ensured the thwarting of all attempts on the part of IBA and Government to retract from offers made. The meeting took for consideration the proposals of the IBA made before the CLC on 07.08.09 and decided to further negotiate on all components of the offer for improvements with IBA in the next round of Bipartite Talks. The IBA had fixed 12th September, 2009 for the next round of Talks. However, since the date is not convenient for a few constituent unions, UFBU has asked for a revised date for the talks during the next week or within 10 days. As soon as the meeting is fixed and held, we shall inform our members of further developments. In the mean time earnest efforts are being taken by meeting the Ministers, Members of Parliament to convince them of our legitimate demands for clinching a better deal through persuasion.

AIBOC OPPOSES THE GOVERNMENT MOVE TO APPOINT A CIVIL SERVANT AS CHAIRMAN AND MANAGING DIRECTOR OF PUNJAB NATIONAL BANK

It is learnt that Government of India is proposing to appoint a civil servant as Chairman and Managing Director of Punjab National Bank, negating the well settled practice of appointing a Banker as Chairman & Managing Director. Our National Organization AIBOC is strongly opposed to the move and had sent a communication to the Hon’ble Prime Minister, Government of India, New Delhi in this regard. The text of the communication is reproduced for the information of the members. With greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

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Text of AIBOC letter No.1454/183/09 dated 10.09.2009 addressed to Hon’ble Prime Minister, Government of India, New Delhi

To, The Hon’ble Prime Minister, Government of India, South Block, Parliament House, New Delhi.

Dear Sir,

APPOINTMENT OF CHAIRMAN AND MANAGING DIRECTOR OF PUNJAB NATIONAL BANK – A PROFESSIONAL BANKER TO BE APPOINTED

We are surprised to know that the Government is considering to appointment an

Officer from the Government as the Chairman and Managing Director of Punjab

National Bank in contravention of the established convention of appointing a senior

Executive Director or the CMD of other banks to this prestigious position thereby

creating a lot of heart burn amongst the Officers’ fraternity in the banking industry.

The banking industry has been witnessing spectacular changes in the business

environment and the public sector banks are required to face tremendous

competition in the current scenario. The Bank Officers are able to withstand these

pressures due to their experience and capability of handling the changing

environment in the financial sector and taking on the competition from the Private

and Foreign Banks in an effective manner. The Officers in the Banking Industry look

for advancement of their career in the industry itself since they can specialize and

compete amongst themselves to reach the top slots in the banking industry. The

present move of the Government is bound to hurt the sentiments of the senior

executives who have been languishing to reach the position of the Chairman and

Managing Director since the positions are few and the competent people to fill those

positions are in hundreds.

2. The Confederation has been holding a strong view as to the appointment of

outsiders to the top positions of the banks since the banking is a delicate matter and

needs a thorough professional knowledge of the banking as it is done in the present

day context. There is no need to place a Civil Servant to work in this position

creating a serious heartburn amongst the senior executives in the Banking Industry.

When there are plenty of talents available within the banking industry; appointing a

Civil servant or a bureaucrat will only harm the chances of promotions of several

senior executives in the Banking Industry. Whenever a senior position in the banks

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is filled it results in the promotional opportunities down the line thereby providing a

chance for several officers to go up in the ladder of their career. In view of the

banking industry passing through severe constraints as regards the expansion in

number of vacancies at the top level, the scarce opportunity cannot be further

reduced to the disadvantage of the several senior executives in the banking industry.

3. The Confederation is seriously concerned about these developments and

conveys its strong protest against the move of the Government which is bound to

create unnecessary irritations in the industrial relations in the banks. We therefore

request you to kindly take note of the sentiments of thousands of Officers working in

the banking industry and desist from the proposed move in the interest of the

harmonious industrial relationship atmosphere that is prevailing in the banking

industry.

4. Please treat the matter as urgent.

Thanking you,

Yours faithfully,

Sd/-

(G.D.NADAF) GENERAL SECRETARY

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CIR.NO:AI/44/2008–2011 Date: 11.09.2009 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

INCREASING INCIDENCE OF FRAUDS AND OUR DEEP CONCERN The word “shock” is inadequate to express our anguish and agony over the increasing incidence of frauds in our dear Bank. We fear that all the recognitions and accolades achieved by our Bank such as “The Best Nationalized Bank”, “Model Bank Award for implementing Core Banking Solution”, “Number One among the South based Service Brands”, “Number One Bank for promotion of Self Help Group” etc., would be set to naught if the menace of fraud is not put to an end. Frauds generally, can be grouped into two categories. The first category of fraud is the one committed by the outsiders with or without the connivance of the insiders. The second category of fraud is the one committed by the insiders. In both the categories of frauds, those who indulge in the act of fraud take advantage of the non adherence of laid down rules, procedures and guidelines by the staff members working in branches. Needless to say, that many cases of frauds result in direct loss to the Bank.

The most unfortunate thing that is observed in the case of frauds that are surfaced in the recent past is that the persons who had indulged in the fraudulent acts were none other than our colleagues. In almost all the cases of reported frauds, one main feature that is observed is that with the adherence of the laid down procedures, rules and guidelines and with a sense of vigil, majority of the frauds could have been either prevented or detected early thus minimizing the gravity and the resultant financial loss. While saying as above, we are not wishing away the tremendous work pressure under which the officers are discharging their duties due to the severe manpower shortage and hence in a mere text book style, we do not intend to advise our members that they should follow the Manual of Instructions. We are fully conscious of the ground level realities and as an organisation we are taking all possible efforts to improve the man power position. Our unrelenting efforts will continue in this regard till we achieve the desired results. However, what we want to emphasize is that every officer should have a clear idea about the minimum safe

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guards that are to be followed in respect of each transaction and they should not compromise in this regard and leave things to be taken care of by faith, trust etc. Faith, trust and confidence are, no doubt, required in a working environment; but they cannot be a substitute for effective supervision, adherence to procedure, rules and regulations etc., Faith, trust and confidence can be complimentary only; but they cannot be a substitute to the job role of each cadre. Yet another aspect we want to highlight from the recent frauds that had taken place is that in the CBS environment not maintaining the secrecy of the password and the officers not logging out their node while leaving the seat.

We also take this opportunity to call upon our members to be cautious and not to fall prey to temptations and ruin their career and their families. Bank officers are looked upon with respect in society and we should not allow few incidents of frauds to bring disrepute to the bank officers’ community. Another word of caution is in respect of short cuts, deviations, unethical practices adopted in the name of business development and the norms/procedures being set aside in the name of “established practice” and “conventions”.

Prevention of fraud in a financial institution is an important task as one single fraud can negate the whole efforts of the Institution. Besides this, frauds leave a psychological scare on all the personnel working in the relevant office / branch, even unconnected to the incident. With all the systems and procedures, it is only the alertness and vigil of the staff that can effectively combat the growing menace of frauds. Let us resolve to create a “FRAUD FREE” environment in our Bank and build a strong and healthy Institution with prosperity for all of us working in the Bank.

With greetings, Yours Comradely,


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Dear Comrades,

DIRECT TAXES CODE - 2009

The Ministry of Finance, Government of India, has come out with a draft bill on Direct Taxes Code - 2009 to replace the existing Income Tax. The Hon’ble Minister Finance Minister has invited from the members of public valuable suggestions on the Draft bill on Direct Taxes Code – 2009 to consolidate and build a consensus and finalize the draft code and amend the law relating to direct taxes, so that it could be presented in the winter session of the Parliament. Our National Organization, AIBOC, vide its letter dated 02.09.09, have sent suggestions on the draft Bill for consideration by the Hon’ble Finance Minister. We reproduce below the text of the letter for information of the members. With greetings, Yours Comradely,

T. T. NATARAJAN SECRETARY GENERAL __________________________________________________________________

Text of AIBOC letter No.1454/179/09 dated September 02, 2009, addressed to

The Hon’ble Finance Minister, Government of India, New Delhi.

DIRECT TAX CODE A STEP TOWARDS TAX REFORMS

As a sequel to your Budget speech, where you had declared that “Tax Reform like all reforms, is a process and not an event”, you have released the draft direct tax code, which provides a blueprint for the future of the Indian Direct Tax Regime. While many provisions of the Tax code are a welcome step, there are still many grey areas, especially the provisions on individual taxation have a dampening effect on the savings habit among the vast multitude of Individual tax payers while the reforms should aim at more disposable income in the hands of the people but at the same time should provide sops and incentives to personal savings. The incentives given for various savings schemes have played a very important role in inculcating savings habit among the people. The funds parked in various savings schemes have been invested in nation – building projects. Keeping this in the background, we

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wish to offer our views and opinions on the proposals made by you in the proposed Tax. 1. Tax Rates: The tax slabs proposed are liberalized significantly, reducing the tax

burden enormously. This provides great relief to the salaried class, facilitating increase of disposable income in the hands of individuals. Needless to say, this is a welcome measure.

2. Savings / Investments:- As per the existing provisions, under section 80C of

the Income Tax Act, the Personal savings such as: Provident Fund, Equity linked savings scheme, Payment of Premium on life Insurance Policies, National Savings Certificate, Post Office Time Deposits, Payment of Instalments on Housing Loan, Interest on Loans for higher education, Investments in Pension Plans are eligible for tax exemption under (EEE) exempt (investments) – exempt (Interest earned) – Exempt (Interest earned / accrued with compounded rate of interest withdrawn or reinvested).

As per the proposed provisions in Direct Tax Code any withdrawals of the contributions and accretions are subject to tax, w.e.f. 01.04.2011, and only the following savings instruments qualify for exemption: Provident Fund. Superannuation Fund. Life Insurance New Pension Scheme. Moreover, the code proposes to introduce the Exempt – Exempt – Tax (EET) method of taxation for the above savings instruments. The entire amount including accrued interest will be treated as ‘income’ and taxed. This is a totally retrograde provision which will act as a deterrent to savings habit. Hence to encourage savings the earlier method of Exempt – Exempt- Exempt (EEE) and all the savings instruments in the present system should be retained.

3. Interest on Housing Loans for self-occupied property: At present Interest on Housing Loan for individuals is exempted upto a limit of Rs. 1.50 lacs and this incentive encouraged home-ownership. This has given a big impetus to House construction and prompted a large number of employees to avail Housing Loans. This had given rise to a spurt in Housing Loans and the construction activity generated considerable employments opportunities. In this background, withdrawal of this incentive may adversely affect the House Construction activity and home ownership will be discouraged. As housing is a national priority, the existing incentive should be continued. Besides the above, the Principal component of the EMI which hitherto qualified for exemption upto Rs. 1.00 lac under Section 80C should also be continued. 4. Tax on perquisites / Fringe Benefits: Tax on perquisites and Fringe benefits have been withdrawn but the incidence has been shifted to the employee. Hitherto, there was a provision under which the Tax was being absorbed by the Company / Employer. The code shifts the burden from the employer to the employee, thereby reducing the disposable income in the hands of the beneficiary. Perquisites and Fringe Benefits are given by the Employer to his employees, by way of incentives, welfare measures, to ensure better productivity and positive contribution by the employees for the growth of the Industry. Such welfare measures

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should not be treated as ‘income’. The proposed move is totally retrograde and in particular it will result in heavy tax liability for the officers in the Banking Industry. We wish to bring to your kind notice the fact that: (i) Bank Officers are liable to be transferred on a cross – country basis and the

hardship of fixing up a new house, furnish it, acquire new furniture etc. is avoided by providing a furnished quarters at the place of posting.

(ii) Bank officers have been working hard, day in and day out, to achieve the

corporate goals and objectives disregarding their personal comforts, family life, education of children etc. The fringe benefits provide the necessary comfort and sense of satisfaction to the officers. A satisfied employee will be an asset of the organization. Productivity and positive contribution for the growth of the Institution will be improved.

(iii) Realising the positive impact of the fringe benefits, Managements of the Banks

had decided to absorb the tax burden on such facilities, thereby reducing the tax burden on the individual employees.

(iv) The perquisites and fringe benefits provided to the Officers vary from Bank to

Bank and have been considered by the Banks at the Bipartite forums with the trade unions represented by the Officers. It may please be noted that the perquisites and fringe benefits provided to the Central Government employees are exempt from Income Tax and it is unfortunate that the Bank Officers are being blatantly discriminated and are being penalized heavily.

(v) Bank Officers are treated as Public Servants and are brought under CVC and CBI

guidelines. Where as they are not treated as Govt. Servants under IT Act. This is a discrimination. We request to consider Bank Officers as Govt. Servants under the proposed Tax Code.

In view of the foregoing submissions, we would like to suggest that the tax on fringe benefit, perquisites should be borne by the employer and the present system should be continued which will certainly reduce the tax burden on the employees. 5. The DTC also proposes to include the following in the “Salary” earned by the employee. a) The value of leave travel concession.

b) The amount received on encashment of un-availed earned leave on retirement or

otherwise.

c) Medical expenses reimbursement.

d) The value of free or concessional Medical treatment paid for or provided by the

employers.

e) Retirement benefits under any Voluntary Retirement Scheme, Gratuity,

Commutation of pension, and approved superannuation fund would be taxable

unless the same is deposited in a retirement benefit account.

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The above benefits are exempted in the existing provisions to the employees to improve their health, happiness, liquidity and a peaceful life after retirement. By taxing the above provisions the employees will be discouraged to avail the facilities such as leave travel concession which basically ensures rest and recuperation for the employees and their dependent families. By imposing tax on medical expenses reimbursement, the value of concessional treatment paid or provided by the employer is akin to rubbing salt on the wounds of a person. These are social security measures and it is unfair to tax such facilities provided by the employer. 6. Similarly, imposing tax on retirement benefits, the employee will be rendered poor to some extent by taking away sizable amount of his hard earned money by the Government at the time of retirement. This is totally retrograde and anti-people measure. Hence, there is a need to continue the existing tax exemptions on all above welfare measures. 7. It appears that the new code discourages the propensity of the individuals to make savings for the ‘rainy days’. It discourages spendings, it will have direct bearing on the GDP of the Country. The philosophy of the DTC should be “widen the tax base and not to burden the honest tax payers”. In a progressive economy, the Tax Code should be pro-people, fair and reasonable to all sections of the society. 8. In this background, we wish to make the following suggestions in the proposed Direct Tax Code: (i) The deductions and exemptions that are available under the present tax laws

should be retained, so that it reduces the burden on the salaried class and promotes the savings habit among all sections of society. This serves as a long term social security measure for the salaried class.

(ii) The deductions that are available now in respect of Housing Loan Interest and

repayment of Instalments should be retained.

(iii) The proposal to tax the withdrawals from the Provident Fund under the Exempt-Exempt–Tax (EET) regime should be dropped as it goes against the very philosophy of the Provident Fund Scheme.

(iv) The perquisites and Fringe benefits should be kept outside the purview of the tax

net.

(v) The proposal to tax withdrawal of Provident Fund, Medical Expenses reimbursement, value of free or concessional medical expenses, Leave Travel concession and amount receivable on account of encashment of leave etc. may kindly be dropped.

(vi) Bank Officers be treated at par with Govt. servants for the purpose of tax laws.

9. We have a strong feeling that in a democratic country like India, a progressive

tax policy should aim at the principles of equity, fair play, reasonableness and usher into a regime of social security measures, which is the Principal objective

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of a Welfare State. The Tax Policy should be commensurate with the individuals “Capacity to pay”.

10. We therefore, urge upon you to take note of our suggestions and incorporate the

same in the Direct Tax Code 2009 Bill, to be placed in Parliament for enactment during the winter session. We request your goodselves to please provide us an opportunity for personal appearance before the Standing Committee if constituted; for presentation of our views.

Thanking you Sir,

Yours faithfully,

Sd/-


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UFBU MEETING

The United Forum of Bank Unions met at Chennai on 04.11.2009. The meeting took stock of the issues such as Compassionate Appointment, One more Option for Pension, Salary Revision, and Introduction of new pension scheme and the stand of IBA in this regard. After deliberations UFBU decided to pursue the issues for expeditious conclusions as early as possible. Taking note of the speculations and rumours that are circulated, UFBU has called upon the rank and file not to fall a prey for any such propaganda at this crucial juncture when all attempts are being made by UFBU to expedite the settlement. We reproduce hereunder the text of AIBOC Circular No. 83 dated 06.11.2009, for the information of our members.

AIBOC STAND VINDICATED – PROFESSIONAL BANKER APPOINTED AS CMD OF PUNJAB NATIONAL BANK

We draw the attention of our members to our circular no. AI /43/ 2008 - 2011 dated 10.09.2009, where in we have informed the stand taken by our National Organization AIBOC is strongly opposing the Government’s move to appoint a Civil Servant as Chairman and Managing Director of a Nationalized Bank. We are glad to inform that the stand of the AIBOC has been vindicated and the Government has shelved their move and has appointed a Professional Banker, Shri. K. R. Kamath, former Chairman and Managing Director of Allahabad Bank, as Chairman and Managing Director of Punjab National Bank. With greetings, Yours Comradely,


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Text of AIBOC Circular No. 83 dated 06.11.2009

UFBU MEETING HELD AT CHENNAI ON 4TH Nov. 2009 A meeting of the UFBU was held today in Chennai. Com P S Pillai (President, BEFI) presided over the meeting.

(a) The meeting took note of the negative approach of the Government in relation to the revised scheme of compassionate ground appointment/financial compensation to the family of the employees dying in harness and felt that the scheme as discussed and finalized between UFBU and IBA should be got expedited.

(b) As regards the condition of the IBA that the entire cost of pension

arising out of the wage revision to be adjusted from the proposed wage revision and that in the next settlement again another actuarial valuation should be carried out and the gap should be funded by employees sharing the same, after detailed discussions, the UFBU while rejecting the above conditions, expressed its view that the additional pension cost can be adjusted by sharing a portion of the same as was done in the 7th and 8th bipartite wage revision.

(c) Regarding IBA’s condition that a new contributory pension scheme

should be accepted by the unions from 1-4-2010 as a pre-condition for extending one more option for pension scheme, the UFBU felt that a mutually acceptable solution should be worked out to resolve the same as unilateral imposition of such conditions are not acceptable.

(d) Regarding IBA’s suggestion for introduction of the concept of fixed

pay and variable pay for bank employees/officers, UFBU decided not to accept the proposal.

2. Based on the above, the meeting decided to pursue the issues with the IBA during the next round of talks to be held shortly and to expedite the conclusions as early as possible. 3. Comrades, we are aware that speculations and rumours are being circulated here and there which are only adding to the anxieties of the membership. Hence UFBU appeals to all units and members not to fall a prey for such propaganda and close up the ranks at this crucial juncture when all attempts are being made by the UFBU to expedite the settlement. With greetings,

-Sd/- (G.D. NADAF)

GENERAL SECRETARY

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MINUTES SIGNED ON WAGE REVISION AND 2ND OPTION ON PENSION

We are extremely glad to inform our members that minutes have been signed between the UFBU comprising of Nine Unions and the IBA on Wage Revision and One More Option to join the Pension Scheme. These agreements have been signed on account of the magnificent unity, relentless struggle and immense patience fortitude exhibited by our members all over the country for the past several years. The copies of the minutes are enclosed. The salient features of the minutes signed are as under:

(a) Annual wage increase of Rs.4816 (Rs.2239 crores for officers and Rs.2,577 crores for workmen employees) w.e.f. 1-11-2007.

(b) The additional cost of pension on account of wage revision in excess of statutory contribution of 10% of pay will be shared equally between management and employees each and the share of employees will be deducted from the agreed wage increase while revising salary and allowances.

(c) All the existing employees who are now in PF scheme will be given an option to join the existing pension scheme.

(d) All those who have retired after the date of Pension

Regulations till date will also be given an option to join the pension scheme.

(e) The additional cost on 2nd option on pension will be shared by

the management and employees in the ratio of 70:30.

(f) Contributory Pension Scheme will be introduced for new recruits w.e.f 01.4.2010.

(g) Full settlement on the above to be finalized within 90 days.

Comrades, besides the wage revision, the clinching of pension option will bring in nearly three lakh families under the umbrella of social security net in the form of defined pension. It may be

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noted that the global trend today, including in Europe known for its social security measures, is to have defined contribution from employees for uncertain return. In this background the success of UFBU in achieving this vital demand is a historic victory for the entire working class in the banking industry. The pension option will be effective from the date of settlement. The UFBU will now move in earnest to work out the pay scales, allowances and other related issues and finalise the settlement at the earliest to enable the early implementation of the agreements and payment of arrears. Com. G D Nadaf, General Secretary of AIBOC and Com S A Kadri, General Secretary, NCBE did not sign the agreements on the ground that their demands concerning officers / workmen of State Bank of India are not incorporated in the agreements, though the IBA has clarified that the industry level agreements cannot reflect Bank specific issues and this has necessitated the President of AIBOC and NCBE to sign the minutes on behalf of their organisations, as it is apparent that the membership in general are for early settlement and there was a grave danger of second option of pension slipping away. Thus, a historical task was done without fear or favour. With the crucial step of signing of the minutes being over, we are confident that the things will move in the right direction for early finalization of the settlement and the formalization of one more option for pension. We profusely congratulate our members for their patience, magnificent solidarity and unfailing co-operation. We note to keep the members informed of further developments.


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CIR.NO:AI/48/2008–2011 30.12.2009 TO ALL MEMBERS Dear Comrades, We are glad to inform our members that certain improvements are made in the Promotion Policy and the record of discussions with the Management and the record of discussion was signed on 19th December 2009. Members would be aware that in the last promotion policy the Seniority Channel which was introduced earmarking 20% of the vacancies in the applicable scales thus facilitating the seniors to get an opportunity for promotion without subjecting them to the process of written test. This has been now improved to 25%. Besides this, interview has been dispensed with for Promotion for Fast Channel for Scale I to II and Scale II to III. We sincerely feel that the present policy will meet the expectations of all officers who are in different assignments. The salient features of the policy are:

25% of the vacancies in the applicable scales will be filled by the Seniority Channel.

The basis for promotion for Fast channel for Scale I to II and

Scale II to III would be through Written Test (60%), Performance Appraisal (40%)

The qualifying marks in the written test would be 50%.

An Officer who has attended the interview under the Seniority

Channel in the event of his not being successful in the Seniority Channel, depending on his eligibility will be allowed to participate in the promotion process under Fast Channel and also take the written test. In such circumstances if he scores more than the qualifying marks in the written test and his candidature can be reckoned for being called for the interview, in such case he need

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not attend the interview again under the Fast Channel and the marks obtained by him in the interview which he attended under Seniority Channel will be reckoned for Fast Channel also, in accordance to the weightage assigned for interview as applicable to Fast Channel.

The Bank’s Board, in its meeting held on 30th December, 2009 has approved the policy. With a view to bring down the average age in the cadres so that continuous availability of officers could be ensured in all scales, the Board has relaxed minimum service eligibility criteria by six months in respect of promotions from Scale I to II, II to III and III to IV. We remind our members to submit the Performance Appraisal which is now an online mode, without any delay. We take this opportunity to thank our Chairman & Managing Director, Executive Directors, General Manager (HRM), Deputy General Manager and the concerned officials of the HRM Department for making these improvements possible in the promotion policy through mutual discussions. We wish all the eligible candidates Best of Luck and Success. With Greetings, Yours Comradely,


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Dear Comrades,

FRINGE BENEFIT TAX

Government of India has withdrawn the Fringe Benefit Tax in the last Budget and recently the rules regarding taxation on perquisites have been notified. In view of the taxability of certain perquisites, AIBOC has taken up the matter with the Ministry of Finance. We reproduce below the text of AIBOC’s letter no.1410 / 03 / 10 dated 06.01.2010 addressed to Hon’ble Finance Minister in this regard for the information of our members. With greetings, Yours Comradely,


Text of Letter No 1410 / 03 / 10 dated 06.01.2010 No.1410/03/10 06.01.2010 To Sri. Pranab Kumar Mukherjee Hon’ble Finance Minister, Government of India, South Block, Parliament House, New Delhi. Dear Sir,

FRINGE BENEFIT TAX NOTIFICATION NO. 94/2009/F.NO.142/25/2009 – SO (TPL) DATED 18.12.2009

By issuing the above Notification the CBDT has shifted the incidence of

payment of Tax on Fringe Benefits or the perquisites, from the employer to the

employees and the payment of tax on perquisites has been implemented

retrospectively from 01.04.2009.

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2. This has come as a rude shock to the working class of the country as it would

put heavy monetary burden on the officers working in the Banking Industry, leaving

only a meager net-take-home salary to the officers. In these days of spiraling prices

which have skyrocketed in the recent past have left the officers in the Banking

Industry to groan under the burden of ever increasing cost of living, adversely

affecting their efforts to provide quality education to their children, take care of the

exorbitant medical expenses etc. The captioned notification will further erode the net

take home salary pushing our officers to a point of endless agony or economic

stress.

3. We wish to bring to your kind notice the fact that the perquisites provided to

the officers are a welfare measure aimed at providing minimum comfort level to the

officers working in the Banking Industry, who are subjected to cross country transfers

at frequent intervals. The perquisites are provided to enable the officer to discharge

his duties without any sense of insecurity or fear. Therefore, we feel it is necessary

to keep the perquisites and fringe benefits out of the tax net so that the officers

working in the Banking Industry, who have to work under constant pressure to

implement the Government sponsored schemes for generating self-employment,

eradication of poverty among the rural folk and other priority sectors.

4. We request you to withdraw the notification and rule to tax the fringe benefits,

so as to enable the officers to have better net take home salary for living a fairly

quality life.

5. We would be very glad to have your audience to make a presentation of our

views on the rules to tax the perquisites and fringe benefits.

Thanking you,

Yours faithfully,

Sd/-


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COMRADE JYOTI BASU IS NO MORE A LEGEND PASSES INTO HISTORY

Com. Jyoti Basu, an Eminent Statesman, a Great Visionary, a Tall Leader of the

Communist Movement, an Astute Politician and above all a Great Friend of the

People and the Working Class is no more. After battling for 16 days due to the

failure of multiple organs, he passed away on 17.01.2010.

Com. Joyti Basu became a communist while studying law in Britain. On his return he

joined the Communist Party of India and began working in the Railway Trade Union

Movement and was an important functionary of the B A Railroad Workers Union and

in the All India Railwaymen’s Federation. In 1946, he was elected to the Bengal

Legislative Assembly from a railway constituency. He made his mark as the leader

of the opposition in the West Bengal Assembly between 1957 and 1967. He was

twice Deputy Chief Minister in the United Front Governments between 1967 and

1970. Com. Joyti Basu became the Chief Minister of the Left Front Government in

1977, a position he held continuously for more than 23 years, till 2000 when he

stepped down due to ill health,

Com. Joyti Basu commanded National respect and the common thread that made

every body to respect him is the manner in which he toiled for the poor and those

who remained on the margins, who initiated land reforms, strengthened the

democracy by extending to the Panchayats and worked for communal harmony and

for an inclusive society. He lent stature to the political post and many hold the view

that had he become the Prime Minister of the Country in 1996, the course of the

history would have been different.

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In his first speech after taking over as the Chief Minister of West Bengal in 1977,

he declared that the Left Front has not assumed power, but has assumed office to

serve the People of the State. He declared that the Government will not function

from the Writers Building, but from amongst the people, a commitment to which he

remained true till the last breath.

Com. Jyoti Basu never wavered in his convictions. Though a Marxist he was not

dogmatic and continued to learn from his vast experience in charting out the course

for the party and to the workers and peasants.

Nothing more epitomizes him than the following observations he made when he

pledged, on April 04, 2003, his body to medical science. “As a Communist, I am

pledged to serve humanity till my last breath. I am happy that now I will continue to

serve even after my death.”

His life was a great saga of Struggles, Sacrifices and Success. With his passing

away we have lost one of the greatest sons of India and a leader who was guiding

the millions of workers and peasants of the Country, leaving behind thousands of

militant comrades and the younger generation to admire and ponder. Com Jyoti

Basu can never die. The seeds of service he has sown in lives in the hearts of the

working class people will grow from strength to strength and will keep alive the spirit

of working class unity and militancy.

The Urdu Poet Saying:

“Ask not how many moments constitute your life,

Ask how much life is there in every moment.”

amply sums up the spirit of his life. We dip our banner in memory of the departed soul and we convey deep

condolences to the bereaved family and the millions of people to whom he was the

leading light and guiding star.

With profound grief,


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CIR.NO: AI / 51 / 2008 – 2011 Date: 09 03 2010 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

CERTAIN IMPROVEMENTS IN STAFF WELFARE MEASURES

Our Association has been relentlessly pursuing the need for improving the Staff Welfare Measures and we are glad to inform that our efforts in this regard had yielded the desired results. The following are the improvements made in the existing Staff Welfare Schemes. 1. Reimbursement of amount for the HEALTH CHECK UP undergone by the staff and their spouses. The reimbursement under the above scheme for officers Scale.IV and above has been increased from the present level of Rs.2,000/- to Rs.3,000/- and the reimbursement to the spouse has been increased from Rs.1,200/- to Rs.2,000/- The reimbursement in the case of Staff members and officers upto Scale.III under the above scheme has been increased from the present level of Rs.1,500/- to Rs.2,000/- and the reimbursement to the spouse has been increased from Rs.1,000/- to Rs.1,500/-. 2. Provision for Eye Check up and purchase of spectacles for employees above 40 years of age. Staff members above the age of 40 are at present reimbursed an amount of Rs.1,000/- towards cost of eye check up and purchase of spectacles twice in their career subject to a condition that the gap between the first occasion and the second one should be four years. this amount stands increased to Rs.3,000/- from 01 04 2010, towards reimbursement for the consultations and purchase of spectacles made on or after 01 04 2010. All other eligibility conditions remain the same. 3. Health Insurance Premium to Retire Staff members The present scheme provides for reimbursement of health insurance premium for a cover of Rs.1.00 lakh to all the staff retired on superannuation and their spouse at a cost of Rs.2,516/- upto the age of 65 years and Rs.5,336/- for over 65 years of age. The policy cover has been increased from Rs.1.00 lakh to Rs.2.00 lakhs with effect from 01 04 2010. accordingly, the premium reimbursement were stands enhanced

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from Rs.2,516/- to Rs.4,000/- to the retirees upto the age of 65 years and from Rs.5,336/- to Rs.9,373/- to the retirees above 65 years of age. It is clarified that the reimbursement will be only for renewal of existing policies or for fresh policies taken on or after 01 04 2010. All other eligibility norms remain the same. A detailed circular has been issued by HO:HRM Department in this regard. We thank our Chairman & Managing Director Shri M S Sundara Rajaan, Executive Directors, Shri A S Bhattacharya and Shri V Ram Gopal, general Manager (HRM) Shri V Srinivasan and his team and other members of the Central Welfare Committees for the improvements brought about in the staff welfare schemes and look forward for further improvements in the existing schemes and introduction of new schemes in the days to come. On this occasion, we request all our members to avail the health check up for self and spouse and take care of their health. We also request our members to bring to the notice of retired staff on superannuation about the improvements made in the health insurance scheme so that the benefit can reach them. With Greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

TRANSFERS We are receiving anxious queries as to when the orders for Repatriation Transfers, Pre-retirement Transfers, Request Transfers etc. and other General Transfers would be issued. We would like to inform our members that all the transfers would be effected after the current promotion process is completed. In the meantime, we request all our members who are desirous of applying for transfers under any of the above categories to submit their applications through their Circle Office to HO:HRM Department marking an advance copy to HO:HRM Department and a copy to their units and to us for follow up.

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TRANSFER POLICY SIGNED Members are aware that the existing Transfer Policy was signed in the year 1995 and its review was overdue. Over a period of time, in the course of the implementation of the policy, some practical difficulties were experienced which were required to be addressed sincerely to find a workable solution. Keeping in view of such difficulties, the changes in various factors that have taken place during the period and considering the expectations of the members, we were urging upon the Management to review the present policy and arrive at a fresh Transfer Policy. We are extremely glad to inform our members that after threadbare discussions, a fresh Transfer Policy was arrived on 21 03 2010. The text of the minutes of the discussions is annexed for the information of our members. Through this new policy, we have aimed that the transfers are need based, serving the needs of the Institution with minimum hardships to the officers. We hope that the policy will meet the expectations of the officers community. It is said that the taste of the pudding is in its eating. A fair policy can ease the burden of officers only if it is implemented fairly, objectively and with compassion. We hope that the Managements at different levels will stand committed to this policy and ensure its implementation in letter and spirit. We thank our Chairman & Managing Director Shri M S Sundara Rajan, Executive Directors, Shri A S Bhattacharya and Shri V Ram Gopal, General Manager (HRM) Shri V Srinivasan and his team for their earnestness and understanding shown which only has made the signing of this policy a reality. With greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

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ONE MORE OPTION FOR PENSION AND WAGE REVISION TALKS TO

CONCLUDE

Our National Organization, AIBOC is planning for a grand curtain raiser ‘Silver Jubilee Celebrations’. Befitting to its celebrations, our 9th Bipartite talks are to be concluded shortly. The dream of one more option for pension is going to be a reality. We reproduce hereunder our parent organization, AIBOC’s Circular No.42 dated 03 04 2010 for the information of our members. With greetings, Yours Comradely,


Text of AIBOC Circular No. 42 dated 03 04 2010

9TH BIPARTITE TO CONCLUDE FORMAL SIGNING ON 2ND WEEK OF APRIL 2010

TO HERALD THE COMMENCEMENT OF SILVER JUBILEE CELEBRATIONS

We could not have chosen a better month than April 2010 for inking the historical 9th bipartite agreement between the All India Bank Officers’ Confederation and the Indian Banks’ Association covering over 2.5 lac officers working in the Banking Industry, as the major Officers’ organization in the country. Our members may recollect that the All India Bank Officers’ Confederation was founded on 6th October 1985 at the Foundation Conference held at Delhi. However, the seeds of the Confederation were almost sown mentally by several leaders of

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the Bank Officers’ movement during the period January 1985 to May 1985 with a firm determination. It was due to the fact that the priority of the leadership of the then AICOBOO was getting shifted from the crucial negotiations on salary revision, as they were on a foreign trip to attend the international conference during this period. Thus, the determination to form the All India Bank Officers’ Confederation got strengthened during these months in the year 1985.

2. The details of the discussions between IBA and the Confederation on the Salary Revision are being shared with the members at regular intervals. The major break through came during the middle of March 2010, due to the persistent efforts on part of the leadership of the Confederation to ensure fair distribution of the wage increase of 17.5% among various components of salary and allowances. The undersigned along with the President of the Confederation Com.K.S.Shetty, and other senior office-bearers held a number of parleys and thereafter had discussions exclusively with the officials of the IBA and the Chairman of IBA to pave the way for a smooth finalization of the agreement. The dialogue also helped us in ensuring a fair deal to the Officers in all the scales.

3. The Confederation is solely responsible for ensuring two additional stagnation increments in Scale I to III over and above the existing stagnation increments. The idea of stagnation was not welcomed by the representatives of IBA on the plea that the Officers are supposed to get promoted and not expected to stagnate. However, the vacancy constrains have made our officers to stagnate in the lower scales and many of our comrades have not been drawing increments for more than a decade. The stagnation increments thus will help us to indirectly take our scales up to the scale IV leaving a small gap of one increment. Thus we could elongate our scales now up to Scale IV due to the judicial distribution of the wage increase load available to us. We have also taken care of fair increase in the scales of Top Executives.

4. While, the salient features of the entire agreement would be shared with the membership across the country only when the final agreement is signed, we thought it fit, in order to silence some of our detractors from their vitious campaign against the Confederation we are furnishing the arithmetical aspects of the distribution of the load factor. The important ingredients of the working out are as follows:- SCALES

JMGS-I - Rs.14, 500/- TO Rs.31, 500/-@ MMGS-II - Rs.19, 400/- TO Rs.34, 200/-@ MMGS-III - Rs.25, 700/- TO Rs.35, 100/-@ @including two additional stagnation increments SMGS-IV - Rs.30, 600/- TO Rs.36, 200/- SMGS-V - Rs.36, 200/- TO Rs.40, 400/-

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TEG-VI - Rs.42,000/- TO Rs.46,800/- TEG-VII - Rs.46,800/- TO Rs.52,000/-

DEARNESS ALLOWANCE For every 4 points rise/fall in index, Dearness Allowance at 0.15% per slab. CITY COMPENSATARY ALLOWANCE We have freezed the existing CCA and utilized the amount towards improvement in Basic Pay. Accordingly, CCA rates will be as under;

Places in Area I - 4% of Basic Pay, Max. Rs.540/- p.m. Places with population of more than 5 lacs - 3% of Basic Pay, Max. Rs.375/- p.m.

HOUSE RENT ALLOWANCE We have retained the existing rate of HRA as under:

Major A class cities - 8.5% Other places in Area I - 7.5% Other places - 6.5%

MEDICAL AID – For officers other than SBI, the medical aid has been enhanced as;

Scale I to III – Rs. 5100/- p.a. Scale IV & above - Rs. 6320/- p.a.

STAGNATION INCREMENTS: It is a fact that majority of senior officers in Scale I to III are stagnated as promotions are linked to vacancies. Hence, we have ensured to add two additional stagnation increments in these scales. Date of Effect : 1st November 2007. The other details will be shared later. We expect that final settlement on salary revision; pension for CPF optees and residual issues will be arrived at during second week of April, 2010. 5. Comrades, in the given circumstances; when we secured pension for CPF optees, this is one of the best settlements on salary revision for officers. We are successful in ensuring fair increase in basic pay for all scales/grades and two additional stagnation increments to Scale I to Scale III, which is the unique achievement in the 9th bipartite. The concept of stagnation increment for officers was first time introduced during 1987 and there was no improvement thereafter except adding one more stagnation increment to MMGS III during the period.

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6. Members are requested not to be guided by any type of rumors and adverse comments. We compliment our members for their tolerance, faith and maturity displayed in standing like a rock behind the Confederation.

7. In the meanwhile, the leadership of the Confederation will be meticulously planning to herald the commencement of the Silver Jubilee Celebrations to coincide with the inking of the 9th Bipartite Agreement. The details will be circularised in due course.

With revolutionary greetings,

(G.D.NADAF)

GENERAL SECRETARY

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CIR.NO:AI/54/2008–2011 Date: 07 04 2010 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades, EQUITABLE DISTRIBUTION OF WAGE LOAD TO OFFICERS UP TO SCALE-VII

Further to our Circular No.AI/53/2008-2011 dated 05 04 2010, we enclose the Circular No.43 dated 05 04 2010 received from our National Organization AIBOC giving additional data on the distribution of wage load to officers along with some tables for the information of our members. Please be guided by the information provided by our parent organization AIBOC and not to rely on any rumours. With greetings, Yours Comradely,


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1. AIBOC will be completing 25 years of its yeoman service to the community of officers in the Industry in October 2010. The Executive Committee of AIBOC has decided to celebrate the event in a befitting manner. We call upon our members to actively participate in all the programmes chalked out in District / State level and make it a grand success. We reproduce below the text of AIBOC Circular No.35 dated 24.03.2010 for information of our members.

2. A meeting between IBA and UFBU took place at Mumbai on 13.04.2010

wherein issues regarding settlement of pension was discussed. We reproduce below the text of AIBOC Circular No. 46 dated 13.04.2010 for information of our members.

3. A grand curtain raiser Silver Jubilee Celebrations, programme will be held

at Chennai on 24th April 2010. Former General Secretaries and Presidents of AIBOC are invited to the inaugural function as Guests of Honour. The State Unit of AIBOC- Tamil Nadu is making all arrangements to celebrate the event in a befitting manner.

With Greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL ______________________________________________________________________________

Text of AIBOC’s Circular No.35 Date: 24.03.2010 SILVER JUBLIEE CELEBERATIONS

The first meeting of the sub-committee on the Silver Jubilee Celebrations of AIBOC was held at Bangalore on 19th march 2010. Comrade K.S. Shetty President, Com. G.D. Nadaf General Secretary and the General Secretaries of Affiliates, Secretaries of State Committees participated. Members enthusiastically discussed about various activities to be undertaken during the celebrations period. 2. The celebrations are aimed to increase the visibility of AIBOC, enthuse and motivate the membership and also to utilize the opportunity to interact with the economically weaker sections of the society through social service activities. This will enable maximum participation of members in the celebrations. It will also provide an opportunity to understand the contributions of AIBOC in furthering the cause of Bank Officers by building a strong movement and to prepare bank officers’ to face the future challenges.

Following decisions were taken.

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The Celebrations will take place at different levels, namely: (a) Confederation (b) Affiliates (c) State (d) District/Town/City (e) Sectoral Wings

CONFEDERATION LEVEL (i) Celebrations at all levels are to be held from April 2010 to 6th October 2010. For

historical reasons the Inauguration will be held at Chennai in the 2nd week of April and valedictory will take place at New Delhi on Wednesday, the 6th October, 2010.

(ii) Inauguration at Chennai: As a curtain raiser, a National Seminar on “Growth, Development and Future Challenges to the Bank Officers’ Movement” with focus on AIBOC to be organized. Senior leaders who are part of the movement for the last 25 years to be requested to participate. Massive publicity to the celebrations to be given. A symbolic inauguration of “Silver Jubilee Social Service Activities” will take place. Working committee meeting will be held on the same day.

(iii) Social Service Activities: To make the celebrations more meaningful, it was decided to aim at reaching the remote parts of the country by holding social service activities in co-ordination with the state units. Opportunity to be provided to all state units to conduct the activity. The expenditure to the extent of Rs. 50,000/- per activity may be reimbursed by “AIBOC Social Welfare Trust”. If possible the State Units must also make efforts to raise voluntary contributions. The State Committees will have to submit a detailed plan of action including cost implications to the Welfare Trust for its approval. They have to submit the accounts after the events.

(iv) Silver Jubliee Publications: A Book on “History and Future Perspectives of AIBOC” to be co-authored by Com. Shantha Raju , Com. T. R. Bhat with Com. B.S. Ravindra as the Convenor will be published to commemorate the occasion. The committee can take inputs from the present and past senior leaders of AIBOC, the book will have to be released on 6th October, 2010, at New Delhi.

(v) Special Commemorative Issue of “Common Bond” containing articles from the present and past leaders of AIBOC will be released on 6/10/2010.

(vi) The valedictory programme will be held at New Delhi on 6th, October 2010. A Special Executive Committee Meeting can be held. An effort will be made to invite the Prime Minister/Finance Minister or Noble Laureate Dr. Amarthya Sen or some High Level dignitary of his stature. The Valediction can be preceded by a National Seminar on the “Future of the Public Sector Banks in India”.

(vii) AIBOC to undertake postering, badge wearing, etc., to provide wide publicity for the Silver Jubilee.

(viii) The Confederation and the Affiliates are requested to prominently print on their Letter Heads and Envelops announcing the silver jubilee celebrations of AIBOC with a special logo designed for the occasion.

AFFILIATES’ LEVEL: All Affiliates are requested to form their own Silver Jubilee Celebrations Committees which will design programmes suiting to the concerned organizations. The suggestions to the committees are: (a) Massive Silver Jubilee Meetings where the Affiliates have larger concentration of

the membership. (b) Minimum of one social service activity which will be funded by the Affiliate them

selves. (c) Commemorative issues of House Journals to be published in October, 2010.

STATE LEVEL: (i) To form State Units, wherever it is not there.

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(ii) State Units to Organise District and Town/City Level Committees. (iii) Form AIBOC Women’s’ Wings wherever it is not formed. (iv) State Level Silver Jubilee Committee to be formed with State Secretaries as

Convenors. All EC Members in the states under its jurisdiction will be ex-officio members. The Committee will also consist of District Secretaries and State Committee Members. The Committee will have to draw appropriate action plan to celebrate the Silver Jubilee.

(v) The Committee has to plan at least one social service activity in co-ordination with “AIBOC Social Welfare Trust”. Which will be conducted between April to September 2010.

(vi) The Massive Special Silver Jubilee conventions are to be held in all state Head Quarters. They can make efforts to raise a fund and also seek the central office support as per the Executive Committee directions.

(vii) State level seminars can be organised with the participation of eminent speakers. The subjects can be; (a) Consolidation of Bank Officers’ Movement (b) Present day Challenges to AIBOC (c) Future Shape and Size of Public Sector Banks in India (d) Implementation of ILO convention Resolution No.87 & 98

DISTRICT LEVEL: (i) District Units to be reactivated which in turn have to activate city/town units. (ii) AIBOC EC Members/State Committee members should visit district and interior

places and hold special Silver Jubilee meetings. The recent developments regarding 2nd option on pension, wage revision etc will also enthuse members.

ALL INDIA NATIONALISED BANK OFFICERS’ FEDERATION ALL INDIA REGIONAL RURAL BANK OFFICERS’ FEDERATION All INDIA PRIVATE SECTOR BANK OFFICERS’ FEDERATION ALL INDIA CO-OPERATIVE SECTOR BANK OFFICERS’ FEDERATION AIBOC WOMENS’ WING

(i) The sectoral Federations are requested to draw their own action plans. (ii) They should hold seminars in different parts of the country to focus the

issues concerning their sector. (iii) They can also plan for social service activities.

FINANCE: (a) One Social Service activity conducted by the State Unit will be supported by the

Social Welfare Trust to the extent of Rs. 50,000/- only. (b) The state Units can seek financial support from Central Office with projected

activity as per the EC guidelines. (c) Affiliates’ level activities have to be self financing. (d) AIBOC Central Office has to bear the cost in respect of publications, inaugural

and valedictory programmes.

2. During the course of deliberations following suggestions were made; (a) All Vice Presidents to be made in charge for revival of state units. (b) “Conclave” of senior leaders to be held on 15th and 16th of May, 2010, to review

the path traversed by the confederation during the past 25 years and to finalise road map for further journey.

(c) A Compendium of important circulars issued by AIBOC to be prepared. (d) An office cum Guest House for AIBOC to be built/purchased at Mumbai.

3. Comrades AIBOC Silver Jubilee Celebrations are a landmark in bank Officers’ movement. During the last 25 years AIBOC has made valuable contributions towards Nation building. This is the time to celebrate struggles, successes and to rededicate ourselves to the cause of Bank Officers’ Movement. 4. General Secretaries of Affiliates and State Secretaries are requested to form Silver Jubilee Celebration Committees by 10th of April 2010 under information to us. State Committees

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are requested to finalise the Social Service Activities which they want to undertake and submit a detailed proposal to us immediately. Let us all join hands to make the event successful.

Sd/-

(G.D. NADAF) GENERAL SECRETARY

Text of AIBOC’S CIRCULAR NO.46 DATE: 13.04.2010

BIPARTITE TALKS WITH IBA

Another round of bipartite talks was held between IBA and UFBU constituents at Mumbai today. IBA was represented by Mr. R. Ramakrishnan, Chief Executive, Mr. K. Unnikrishnan, Dy. Chief Executive and Mr. M. Venugopalan, Officer on Special Duty. From UFBU, representatives of all the 9 Unions were present. In today’s meeting, issues relating to settlement on pension option were taken up. The draft Settlement was discussed in detail and finalized. Regarding retirees, the formula for contribution of Rs. 934 crores ( 30% gap ) of the deficit, after refund of the PF amount (Bank’s contribution), it has been decided that the retirees will contribute as under:

Refund of PF amount ( Bank’s contribution ) actually received at the time of retirement (no interest is payable on this amount )

Rs. X

PLUS 56 % on this amount of Rs. X Rs. Y

LESS: Commutation amount Receivable from the Bank

Rs. Z

Net Amount refundable to the Bank ( X + Y – Z )

Rs ……

Regarding Existing Employees / Officers, out of the net gap of Rs. 6000 crores, Banks would contribute 70 % i.e. Rs. 4200 crores. For the balance of Rs. 1800 crores ( 30%) employees / officers would contribute as under: (This will be a onetime contribution and would be recovered from the arrears.)

For existing employees/officers 1.6 times of “ Pay ” payable for the month of November, 2007. (Revised Scales)

For employees who have joined the banks after 1-11-2007

Their contribution would be proportionately reduced

Date of effect of pension option: IBA reiterated their stand that pension option would be effective from the date of the Settlement while we have explained our viewpoint that it should be w.e.f. 1-4-2008. Differences on this issue persist. UFBU decided to take steps to find a solution to this issue.

Improvements under Pension Scheme: We took up with IBA various improvements in the Pension scheme like periodical updation of pension along with wage revision for serving employees, 100 % DA neutralization to all pensioners, common indexation of pension, increase in commutable portion of pension, increase in Ex Gratia for Pre-1986 retirees/widows, higher pension for pensioners above the age of 80, covering CPF Optees who resigned etc. After discussion it has been decided to submit a memorandum on these issues to the IBA and the Government and to be pursued further.

Salary Revision: The Joint note on Salary Revision for officers’ will be finalized very soon. We are planning to meet the Chairman IBA in connection with certain improvements in service conditions and residual issues, such as: regulated working hours. 5 day week, accumulation of privilege leave, mode of travel for junior officers, transportation charges on transfer, facilities to women officers, enhancement in staff loan ceilings etc.,

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Comrades, we are aware of the anxiety at the grass root level and are trying our best to finalize the settlements on Salary Revision and 2nd Option on Pension simultaneously at the earliest. We shall keep you updated.

With Greetings,

Sd/-


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SALARY REVISION AND SECOND OPTION ON PENSION SETTLEMENT SIGNED

It gives us great pleasure to inform the members that the historic settlements on Pension Option and Wage Revision were signed today between the IBA and the Unions. After prolonged struggles and strike actions came protracted negotiations which have tested the patience and perseverance of our members and leaders alike. The longer time lag in concluding the agreement only indicates that the leadership made every possible effort to get the best possible deal for the members. At various stages of negotiations we had to go-back and forth to the IBA Chairman, the Government and political leadership in our quest to get a fair deal to the members. We are sure the membership in its ample wisdom will understand the situation and view the final outcome as an unprecedented success of our collective strength.

While we shall be reproducing the Agreements shortly for the information of our members, certain issues need to be highlighted as below:

Pension Option: The second option for pension for both retired and serving employees is a landmark achievement under the leadership of UFBU which has extended this social security measure to the entire bank employees in the country. Though it has come with some cost, a long pending demand has thus been met.

As regards the sharing of the cost of pension, though it was earlier agreed that the cost will be shared by pension optees and CPF optees equally, at the last minute the IBA developed cold feet due to the fear that it may not be legally tenable. The entire burden of cost has therefore come upon the CPF optees wherein most of the arrears receivable by them by way of wage arrears will have to be adjusted towards this cost. However Comrades will note that it is a onetime cost and efforts are also being made for an easier payment schedule in installments so that some amount of arrears will be available to the CPF optees upfront. Understand the limited maneuverability available to the leadership in this regard since sharing of cost is a long agreed position.

Wage Revision at 17.5%: The wage increase by 17.5% is by far the biggest increase we have achieved at industry level settlements. While comparison could be drawn between this settlement and award of central Government Pay Commission, it may be noted that pay scales can not be compared in isolation. Moreover bank employees are due for one more wage revision before the next

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Award. We are sure the membership will appreciate this best ever achievement and this was possible only due to our collective strength and unity.

Stagnation increments: Another important achievement in this settlement is the introduction of two additional stagnation increments in scale-I, II & III. As members are aware, in view of limited vacancy oriented promotions in the banking sector, a large number of officers are stagnating at lower scales. Those additional increments will benefit such officers to a great extent and also will go to improve their pension benefits. This was an issue of prolonged tussle with the IBA and was finally decided in our favour.

L.F.C.: It may be noted that L.F.C. by air is extended to a large section of officers' community which is in Scale-I, though reimbursement is limited to AC Ist Class by train. With so many low cost airlines in operation in our country, it shall be possible for our comrades in Scale-I to enjoy their L.F.C. by air without going out of pocket.

C.C.A.: Members may note that the CCA has been frozen at the earlier limits. The CCA for award staff has been abolished in this settlement and has been merged with HRA. Likewise, IBA was insisting that we too dispense with CCA. But since our HRA scheme is totally different and also because we did not want to deprive the section of officers who are enjoying CCA, the same has been maintained at former level without further cost.

Halting Allowance: Members will note that while Halting Allowance is increased across the board, a new tier is now introduced covering the four metropolitan cities with higher ceiling of Rs.1,000/- / Rs.1,200/- as applicable.

Residual Issues: While most of the issues have been sought to be addressed in the settlement, certain important issues like five days week, fixed working hours, various staff loans etc., could not be clinched since IBA pleaded lack of mandate. Much discussion has however taken place on these issues and we will be pursuing them further.

Comrades, there were anxious moments during this period coupled with loads of misinformation, orchestrated columnies and virulent propaganda against all our efforts to settle. Viewed in their entirety the agreements on Wage Revision and Pension indicate a new milestone in our collective bargaining. This has been possible only due to the unity, solidarity and militancy of membership across the length and breadth of the country who have plunged into collective action at every call of the organization.

We once again salute the entire membership on this victory.


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CIR.NO: AI / 57 / 2008 – 2011 Date: 17.05.2010 TO ALL MEMBERS Dear Comrades, AIBOC has come out with a detailed Circular No.64 dated 12.05.2010 on 2nd Option on Pension. We reproduce the same for the information of members. We are happy to inform our members that the process of obtaining in-principle approval of the 9th Bipartite from the Government is in progress and we expect the clearance shortly. We reproduce AIBOC Circular No.65 dated 14.05.2010 in this regard. With Greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL ______________________________________________________________________________ Text of AIBOC’s Circular No.64 Date: 12.05.2010 - 2ND OPTION ON PENSION – BARE

TRUTH

With our intense struggles and strikes during the 90’s, the Confederation was successful in securing Pension in the Banking Industry w.e.f. 01.11.1993. Infact the Confederation demanded Pension as a third retiral benefit. But some of the Unions did not support our demand and hence we had to accept pension as second retiral benefit in lieu of Contributory Provident Fund. However, service gratuity continued along with the pension. Due to the draconian clause in Pension Regulations, treating the strike as break in service and the higher interest rates prevailing on deposits in 1993-1995, many of the employees and officers did not join the pension scheme. However, it was made compulsory for those who joined the banking service w.e.f. 01.11.1993. Subsequently, the draconian clause of break-in-service for participating in strike was removed from the pension regulations on account of agitation launched by the unions. The unions wanted that in view of the removal of the restrictions, one more option on pension should be introduced. Due to the economic slow down, opening up of our economy to global forces, interest rates on deposits came down drastically. In successive bipartites thereafter; pension scheme was improved and it became more attractive, as compared to the contributory provident fund scheme.

2. Hence, the employees and officers, who remained in CPF scheme, intensified their demand for one more Option to choose pension benefit in lieu of CPF. The Govt. of India, IBA and Bank Managements, refused to offer one more Option to CPF Optees, as they wanted to avoid uncertain liabilities of pension payment. Pension being a social security measure, cannot be compared with the

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Contributory Provident Fund. But, pension funds of banks were not sufficient to take care of load of the existing pension Optees, as against the statutory contribution at 10% of pay towards the pension fund, both by the Bank and the employees, was insufficient to meet the pension liabilities. During 2001, Banks came out with a Special Voluntary Retirement scheme that put a lot of pressure on the pension fund to meet the consolidated liability, for which no additional Provisions were made by the Banks. 3. During the bipartites in 1997 and 2002, few of the Banks’ balance sheets were not comfortable to bear the cost of salary revision and the pension liability. Therefore, during the VII Bipartite settlement, unions came forward to support the pension fund of the Banks by volunteering to bear a part of the additional cost (incremental cost on pension) to be incurred on account of revised pay. The IBA offered 12.25% increase in wage load. The employees and officers shared 50% of the incremental cost of revision towards pension; which was at 8.25% of pay apart from 10% of pay in lieu of P.F; out of salary revision load. The managements also contributed 18.25% of pay towards additional cost of pension. But Banks were not in a position to assure 50% of the last drawn pay as pension and hence, for the purpose of Pension, separate scales were constructed with merger of 1616 points of D.A, whereas for the purpose of regular scales, the DA merger in the basic pay was at 1684 points with loading thereafter. This has virtually influenced IBA to accept our discussions on the issue of 2nd Option. 4. During 8th bipartite, the anomaly as regards inferior basic pay for the purpose of pension was rectified and both for pension and regular scale, a common scale with merger of 2288 points of DA with appropriate loading was considered. Here again, both managements of Banks and the employees, bore additional cost on pension on account of salary revision at 9.25% of pay in addition to 10% of pay and managements at 11.25% of pay in addition to 10% of pay in the ratio of 45% and 55%, respectively. 5. The struggle for one more Option for Pension took centre stage after signing of joint note under 8th bipartite on 2nd June 2005. A suitable clause was inserted in the joint note as regards demand of the Confederation for one more Option on pension. Accordingly, alternate scheme was to be evolved to resolve the issue. The UFBU took up the issue with all seriousness with the IBA/Government for 2nd Option on Pension, along with other issues like, compassionate appointment scheme, attack on trade union rights, opposition to merger and acquisition, early salary revision etc. The UFBU observed successful strike on 25th January, 2008 and was in readiness to observe two days strike on 25th and 26th February 2008, followed by indefinite strike from the middle of March 2008. The IBA/Govt. having assessed the situation properly convinced the leadership of UFBU to defer the two days strikes action on 25th and 26th February 2008, with an MoU on the 25th February 2008 that, they will “consider” the demand of 2nd Option on Pension favourably. 6. Accordingly, at wee hours of 25th February 2008, proposed two days strike was deferred and an MoU with IBA was signed on the same day, with an understanding that, according to the suggestion of the leadership of the Confederation common actuaries would be appointed to ascertain the gap in fund to consider the demand of 2nd Option on Pension. 7. Earlier, IBA came out with Rs. 26,000/- crore gap in pension fund to consider the demand of 2nd Option on Pension, where as, UFBU assessed it through its Actuaries at Rs. 4,700/- crore. There was a huge difference in the assessments

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of the gap and hence, it was the leadership of the Confederation which suggested the then Chairman of IBA Shri.M.B.N.Rao, at a meeting held on 22.02.2008 at Delhi, for common actuaries to asses the funding of gap with common parameters agreed by IBA and UFBU together. The gap was estimated by the common actuaries at Rs. 6000/- crore to consider the demand for existing CPF Optees for 2nd Option on Pension as on 31.03.2007. As committed earlier, UFBU after due negotiations agreed to contribute at 30% of the gap i.e., Rs. 1800/- crore towards the pension fund, out of the salary revision arrears and Rs.4,200/- crores are to be contributed by the Banks. Accordingly, an MOU was drawn on 27th November 2009 with IBA for 17.5% increase in salary and allowances and one more option of pension to CPF Optees. The modalities for sharing the 30% of the gap was evolved on 13th April, 2010, at 1.6 times of the revised pay of employees and officers except SBI as they are governed by a different pension scheme. The 2nd Option is also made available to all retired employees and families of employees who died during that period from 1993/1995 onwards to the date of settlement of the scheme. It was assured that out of Rs. 3,115/- crore, fund gap in respect of retirees of Rs. 935/- crores (30%) was to be contributed by the retirees by way of refund of 156% of Bank’s contribution of PF received by them towards the pension fund. There was a dispute as regards date of effect of the pension to CPF Optees and modalities of contribution etc. The UFBU decided to approach the Hon’ble Finance Minister, Government of India, as UFBU demanded a pension to CPF Optees w.e.f 01.04.2008 which was rejected by the IBA, and IBA offered it from the date of signing the final settlement on pension. Due to the intervention of the Finance Minister, on 21.04.2010 at Delhi, a via media was suggested that, pension may be effective from the date of effect of MoU i.e., 27th November, 2009. But, for the purpose of contribution of 30% of the gap, they will be treated as retirees up to the date of signing of the pension agreement. The Finance Minister was also quick in cautioning the UFBU leadership to settle the issue immediately otherwise the entire understandings may create a problem. 8. As the day of signing the settlement on 27th April, 2010 was fast approaching, few pension optees knocked the door of Hon’ble High Court of Andhra Pradesh and one of the Constituents of the UFBU who was a signatory to the MoU also sent a legal opinion to the IBA, protesting against contribution by the pension optees. It was a bolt from the blue. Anxious enquiries started pouring in the Confederation Office on salary revision and pension settlement. Under the chaotic situation, UFBU decided to meet on 26th April, 2010 at Mumbai to review the position, as terms and conditions of the 2nd Option cost were almost known to the entire rank and file. The following were the perceptions at different levels. 9. Pension Optees – When pension was opted in lieu of CPF during 1993/1995, why they should contribute towards the gap in the fund. In case of CPF Optees, they have option either to opt or not to opt and remain in CPF and accordingly, either to contribute or not to contribute towards pension fund gap. Whereas, for pension optees, such options are not available and it is compulsory for them to contribute towards the pension gap. In case of those, who joined the Banking Industry from 01.11.1993, there was no option for them to opt for CPF. Whatever, additional contribution made towards the pension fund during 7th and 8th bipartite by way of incremental cost on pension, was for strengthening the Pension Fund Account of Banks to take care of future liability of payment of Pension to retirees. As they are yet to complete minimum service of 20 years to be eligible for pension, they are yet to reap the fruits of pension. The 30% of gap in fund on account of 2nd Option on Pension has to be met by the CPF Optees, as they

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are beneficiaries of the present settlement. Hence, why Pension Optees, should contribute towards gap of pension fund for 2nd Option? 10. CPF Optees: As per the understandings reached between the IBA and UFBU, according to MoU dated 27.11.2009, all employees, have to contribute Rs. 1800/- crores gap in pension fund to take care of 2nd Option to CPF Optees. It worked out to 1.6 times of revised “pay” as on 01.11.2007 which was communicated to the membership through UFBU Circular. When CPF Optees had supported the Pension fund earlier by way of sharing portion of incremental cost on pension, why the pension optees should not share the gap in pension fund now? They may have to shell down major portion of arrears of salary and allowance to secure pension benefit, etc. 11. IBA: They were not inclined to offer one more option to CPF Optees as Pension fund is not viable to sustain additional burden. In fact, to meet future liability of pension to existing pension optees, they are contributing more than 10% of the pay, out of the balance sheet to the pension fund. That is the reason why, they proposed differential pay scale in 7th Bipartite for the purpose of pension. Due to unions volunteering to bear additional load equally out of salary revision during 7th and 8th Bipartite, the position was improved. But, they were interested in introduction of Defined Contributory Pension Scheme in the Banking Industry for future recruits to take care of uncertainty in liability towards pension payment. The Govt. also was interested in imposing the New Pension Scheme in the Banking Industry. 12. However, due to the pressure from UFBU and also volunteering to share the additional cost to be incurred by Bank Managements towards one more option to CPF Optees, they agreed to consider the demand of UFBU. After detailed deliberations IBA agreed to contribute Rs. 4,200/- crores out of Rs. 6,000/- crores gap and remaining balance of Rs. 1,800/- crores was to be shared by the employees. Similarly, in case of retirees, 30% of gap has to be contributed by them, which works out at 156% of P.F contribution of Banks. As long as there was unanimity as regards modalities for sharing of additional cost by the employees, IBA was comfortable. But, when one of the Constituents of UFBU, raised the basic issue of sharing of cost, and few employees approached the Hon’ble High Court of Andhra Pradesh, both Govt. and IBA became alert and over cautious, and they never wanted to be dragged in to any kind of legal hassles. The Govt. was quick enough in advising the IBA to recover the agreed share of employees towards the gap in pension fund from the CPF Optees only as the option to switch over from CPF to pension was for them only. Their attitude was either take it or leave it. It was their final offer. 13. UFBU: In accordance with the provisions made in the Joint note during the 8th Bipartite for alternate scheme, UFBU was successful in ensuring existing pension scheme to be offered to CPF Optees as well. UFBU did not agree for offer of IBA of inferior pension scheme or defined contributory scheme. The IBA was also proposing to impose certain restrictions to CPF Optees joining the Pension Scheme such as, Voluntary Retirement and commutation will not be considered for these optees etc. We did not agree for any change in the existing pension scheme to be offered to CPF Optees. The only condition considered by the UFBU was to share a portion of the gap by employees, as grass root level membership was desperate for pension scheme at any cost. Even, some of the leadership received a feed back from the membership that, the priority in 9th Bipartite is one more Option for Pension and they do not mind compromising on the lower increase in salary and allowances. The mandate given to the leadership was to secure 2nd Option on

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Pension at any cost. Therefore, the demand for 2nd Option was ‘now or never’. The issue cannot be made as a dispute and declare strike, at this stage. To some extent Govt./IBA exploited the situation by offering a poor package for revision in salary and allowances, making New Pension Scheme compulsory for new recruits w.e.f 01.04.2010, date of effect of pension from a prospective date i.e., from the date of signing of the settlement on pension. In UFBU, the majority view was to share the additional cost on 2nd Option by all the employees equally. Accordingly, as late as on 26.04.2010, in the UFBU meeting it was decided that, sharing of the cost shall be at 1.6 times of revised pay by all employees to whom pension regulations apply. 14. When UFBU leadership met IBA representatives on 26.04.2010 evening, despite our best efforts to convince the IBA for recovery of cost equally from all employees, reportedly Govt. did not permit IBA to agree to our view and they stuck to their decision to offer the pension to CPF Optees at 2.8 times of revised “pay”. We were advised, earlier, by IBA to come for signing of agreements, on pension and salary revision on 27th April, 2010 at 11:00 A.M. The IBA’s offer to UFBU was final and this put all of us in a tight spot. We expressed our inability to toe the line of the IBA and accordingly, stalemate continued. At that moment IBA officials cancelled the signing ceremony proposed on 27th April, 2010 and advised their negotiating team members to cancel their travel plans to Mumbai. 15. 26th April 2010, a night never to be forgotten: The Constituents of UFBU, after leaving IBA office at 9:30 p.m. were receiving anxious calls from the leaders and members, about the fate of the 2nd Option on Pension and future course of action. The issue being more sensitive and delicate was to be handled carefully by the UFBU. The membership was restless. They wanted settlement to take place without loss of further time. The following were the alternatives before the UFBU.

a) To reject the offer of the IBA and declare agitation. b) To accept the offer and leave it to the judgement of CPF optees to decide. c) Whether is it wise to raise the dispute on 2nd Option at the last stage after

struggling for 15 years for the benefit, and to invite uncertainty? d) Whether Govt. whose priority is elsewhere, will entertain the dispute and if

they go back on their offer, what is the recourse? e) The IBA was feeling that Rs. 6000/- crore gap in fund assessed by the

common actuaries was much less as compared to the actual gap in fund due to the changed scenario on interest front and discount value. The revised gap of allowances to be assessed will be much more than Rs.6,000/- crores.

f) Whether pension optees will support the stand of UFBU to volunteer to contribute towards the gap in pension fund to take care of 2nd Option to CPF Optees etc.

16. On weighing the alternatives, consulting leadership at all levels, reading the pulse of the grass root level membership, we never wanted that, there should be a slip between the cup and the lip. To be on the safer side, let UFBU make available the Option to CPF Optees, may be at a higher cost, but the social security available to them cannot be measured in terms of few more thousands of rupees to be contributed by them to strengthen the pension fund. The interested members may not forgive the leadership if the option is withdrawn by the IBA/Govt. on one or the other pretext at this stage. The decision had to be taken without loss of time, as IBA/Govt. having grouse against assessment of gap in pension fund, should not find an alibi to go back on the offer.

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17. Accordingly, UFBU met again on 27th April, 2010 at 10.00 a.m and after due deliberations, took a view to communicate to the IBA to go ahead with signing ceremony on the same day, on salary revision as well as on pension settlement. All the 9 constituents of UFBU signed the settlement on 9th Bipartite and Pension offer to CPF Optees with contribution of 2.8 times of revised “pay” towards the gap of pension fund. The effective date of pension to CPF Optees will be from 27th November, 2009. All those who have retired upto 27.04.2010 will be coming under the bracket of retirees and will return Bank’s contribution of PF with 56% additional contribution. They will be eligible for commutation of Pension. They will not contribute 2.8 times of revised “pay” towards the gap in Pension. The CPF Optees will contribute 2-8 times of revised “Pay” as on 01.11.2007, to switch over to the pension scheme etc.

18. Comrades, this is the saga of sacrifices and struggles by all members of the Confederation in securing Pension in the Banking Industry, and its improvements from time to time with latest benefit of another option to CPF optees to secure their future and lead a life without depending on others, in their old age. This achievement has come during the 25th year of the Confederation. We have every reason to celebrate the occasion, which is a momentous achievement in the annals of trade union history. We are confident that our learned membership will appreciate the stand taken by the Confederation in the given circumstances. The vested interest are again trying to fish in the troubled water. We have therefore brought bare truth on 2nd Option on Pension to the notice of the membership. Our membership is seasoned and matured to support the stand of the Confederation.

With greetings, Sd/-


Text of AIBOC’S CIRCULAR NO.65 Dated 14.05.2010

Implementation of 9th Bipartite Settlement Porcees on – IBA issues guidelines to Banks – Government’s Clearance in respect of Officers’ awaited.

We are happy to inform our members that the process of implementation of the 9th Bipartite is on. The Indian Banks’ Association has since issued detail communication to all the banks in respect of the Award Staff who signed 9th Bipartite Settlement under the provisions of the Industrial Dispute Act, 1947, which does not require further approval of the Government. The communication in regard to the payment as well as the recovery towards the contribution to Pension Fund on account of the 2nd Option is as under:

a) An amount equal to 2.8 times of the “Pay” for the month of November, 2007 be withheld and kept in a suspense account for crediting to the Pension Fund in case the employee opts to join the Pension Scheme complying with the terms of the Settlement dated 27th April, 2010.

b) If any employee gives in writing an irrevocable letter stating that he does not intend to join the Pension Scheme in terms of the Settlement, 2.8 times of the November 2007 pay as above need not be withheld.

c) Once the offer is made to join the Pension Scheme, on expiry of the period of option, the amount withheld in respect of those who exercised the option to join the Pension Scheme should be transferred to the Pension Fund. The arrears withheld in respect of those who

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did not opt for pension within the stipulated time, be refunded to them.

d) No portion of arrears be withheld in respect of non-optee employees who retired from 1st November 2007 to 27th April 2010. They will be joining the Pension Scheme by making contribution towards funding gap as retired employees in terms of the Settlement.

2. We are keeping in touch with the IBA to ascertain the latest position as regards in-principle approval, pending amendment to the service regulations in respect of the Officers in the banking industry. We understand that the approval is expected at any time. The first phase in respect of the Award Staff for the payment of arrears etc., as per the 9th bipartite settlement having been already initiated we are confident that the process in respect of the Officers will get speeded up now.

3. In the meanwhile, we have been receiving anxious enquiries on implementation of 2nd Option on Pension. The process of obtaining in-principle approval from Govt. is also in progress. We therefore advise members to have patience for a few days more as the instructions are awaited at the earliest. We also understand that the bank managements have already initiated necessary steps and the calculations have since been kept ready so that no delay takes place once the guidelines are received from the banking department for the implementation of the 9th bipartite.

4. Comrades, the technical requirement of obtaining the approval of the Ministry of Finance including the Finance minister should not take much time since the Government is conscious of the pressures that are built across the country, awaiting implementation of the 9th bipartite.

5. We note to keep all our affiliates/members informed of further details in due course.

With greetings, Sd/-


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1. We have been receiving various queries from our members after the recent settlement and it was felt necessary to place before the membership a true perspective of the Salary revision for better appreciation and understanding of the settlement. We give below the details for the information of members.

2. We are happy to inform that the Parliament has passed the amendment

to the Gratuity Act enhancing the ceiling of Gratuity from Rs.3.5 lacs to Rs.10.00 lacs. We reproduce the text of AIBOC Circular No.56 dated 04.05.2010 issued in this regard.

3. The PF Optees who intend to opt for pension scheme has to pay 2.8

times of the November 2007 revised Basic Pay being their contribution to the pension fund and the same will be recovered from the arrears payable. As the whole amount of arrears received by an officer will be taxable AIBOC has taken up the issue with IBA to get tax exemption for the amount of such contribution to the pension fund. We reproduce the text of AIBOC Circular No.60 dated 10.05.10 issued in this regard for the information of our members.

Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL ___________________________________________________________________

SALARY REVISION: A TRUE PERSPECTIVE Ever since the revised pay scales were arrived at and communicated to the members, a lot of queries and feedback have started coming. Some are very critical of the leadership for getting revised pay scales, comparing the same to the pay scales of Central Govt. employees. This comparison has caused more unhappiness among the officers and whatever achieved during the negotiations has been pushed to the background. While criticisms are necessary in a democracy, it should be objective and based on the facts and circumstances leading to an understanding between the parties. In view of the frequent queries from members it was felt necessary to address such issues and place facts before the membership for better appreciation and understanding of the settlement. They are given below:

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A) Why only 17.5% increase? The wage load of 17.5% was agreed by Govt. / IBA after prolonged bargain and protracted negotiations over a period of time. After deliberations among constituents, UFBU agreed to accept 17.5% wage increase w.e.f 01.11.2007 and a MoU was signed on 27th November, 2009. After signing the MoU, parties cannot go back and reopen the understanding now. B) Wage revision of Bank employee’s vis-à-vis 6th Pay Commission and wage revision of Central Government employees: It is true that even after the salary revision under 9th Bipartite; the salary of bank employees is not comparable to that of employees in Central Govt. and PSUs. However, following facts should be borne in mind while comparing: 1. 6th Pay Commission recommendations for wage revision of Central Government employees are effective from 01.01.2006, for a term of 10 years. In case of Bank employees it is for a period of 5 years from 01.11.2007. The next bipartite will begin from 01.11.2012. 2. The distribution of wage load for Central Government employees is not uniform. A meager increase of about 15-20% for lower level officials and higher increase at Secretary Level, with different pay bands is followed for them. Whereas in our case we have tried to maintain equi-distribution of load factor. 3. In case of Central Government employees, they will first arrive at the proposed revised scales and allowances and there is no restriction as regards cost of wage bill. The entire cost will be debited to the National Ex-chequer of the Government of India. 4. In the case of Bank employees, Government of India/ IBA would first determine the cost in terms of percentage and thereafter distribution of the increased load among various components of salary and allowances, is the responsibility of IBA and Unions / Associations. C) Higher increase for Officers in Scale-IV & above: During the current bipartite the demand of the IBA was to distribute higher load to Officers of SMG Scale-IV and above, whereas the Unions demanded equitable distribution of the load to all scales/grades, as higher load to officers in Scale- IV and above will affect the scales of junior officers. Unions had suggested to the IBA to get extra cost over and above 17.5% sanctioned from the Government of India to meet their demand for higher load for officers in Scale-IV and above. The IBA did not accept this suggestion and was bent upon loading higher increase in pay scales of senior executives. However, unions were successful in minimizing such higher load. The negotiating committee after due deliberations felt that the issue being sensitive, it will not be wise to break the negotiations on this point which would have created an avoidable conflict among the membership. D) Additional 2 Stagnation increments: It could be observed from the revised pay scales that the officers in Scale-IV and above are fitted at 2 increments higher in the starting scale, while the officers in Scale-I to III are given two additional stagnation increments. Due to the higher starting (by 2 increments) pay scale, the percentage hike appears to be in the range of 20% to 30%. IBA wanted higher load factor (than whatever agreed now) and not ready to extend stagnation increments at Scale-IV and above. They were not ready to extend stagnation increments to officers in Scale-

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I to III. However, AIBOC could get the issue resolved in a fair manner with benefit being extended to all in more or less equitable manner either in terms of additional stagnation increments or by way of hike in pay scale. It should be appreciated that the stagnation increments are going to benefit more than 1.5 lakhs officers who are at stagnation. E) Release of Stagnation Increment: As per the settlement, the officers who were in stagnation and drawn their last stagnation increment will be eligible for two additional stagnation increments. Those who have completed 6/3 years of service as on 01-11-2007 after drawing last stagnation increment in the existing scale, will be granted two /one additional stagnation increments on 01-11- 2007 and the next increment will be released on or after 01-11-2008. The release of stagnation increment will depend on the date of receipt of last stagnation increment in the pre-revised scale. Let us take two examples: Example 1: Officer ‘A” is in Scale-I and he had drawn his last stagnation increment on 1st April 2001 (Anniversary date of increment) and was at Basic Pay of Rs.21040/- (revised B.P. Rs.29700). Since the officer has already completed more than 6 years as on 01-11-2007 (date of salary revision) from the date of second stagnation increment, he will get one stagnation increment as on 01-11- 2007 (B.P. revised to Rs.30600/-) and next stagnation increment will be released on 01-11-2008 (B.P. revised to Rs.31500/-). Similar treatment will be given to officers in Scale-III if they have already completed 6 years from the date of last increment as on 01-11-2007. Example-2: Officer ‘B’ in Scale-II had drawn his last stagnation increment in February 2003 (Anniversary date of increment) and was at Basic Pay of Rs.22900/- (revised B.P. Rs.32400/-). Since the officer has NOT completed 6 years, but completed 3 years as on 01-11-2007 (date of salary revision) from the date of first stagnation increment, he will get one stagnation increment on 01-11- 2007 (B.P. revised to Rs.33300/-) and next stagnation increment will be released on 1st February 2009 i.e. 6 years from the date of first stagnation increment. On release of the increment his Basic Pay will stand revised to Rs.34200/-. Similar treatment will be given to officers in Scale-I & III if they have completed 3 years from the date of second stagnation increment but not completed 6 years as on 01-11-2007. F) Pension burden: why it was increased from 1.6 to 2.8 times of November 2007 ‘PAY’: IBA had agreed that Rs.1800 crores to be contributed by unions being their share of pension cost will be borne by all employees irrespective of whether they are PF or Pension optees. IBA had fixed the date for signing the agreement on 27th April. The UFBU had convened a meeting on 26th April morning and in that meeting unions were informed that there are certain difficulties which have cropped up on account of the sharing of the pension cost by the existing workforce due to court cases filed in the Hon’ble High Court of Andhra Pradesh. The IBA after obtaining the legal opinion advised the convener of UFBU that the share of pension cost could be recovered only from the PF Optees who wish to avail the 2nd Option one Pension and not from those who have already under the pension scheme. There was hectic discussion amongst all the constituents of UFBU and after threadbare discussions, UFBU keeping in view the aspiration of a large number of officers across the Industry who were eagerly waiting for second option on

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pension, unanimously decided to accept the view point of IBA and proceed with the agreement instead of breaking the talks on this issue. Accordingly, the share of pension cost has to be borne by only those PF optees who now intend to opt and join the pension scheme and accordingly the share stood increased from 1.6 times to 2.8 times. It is worth remembering that it is only one time cost for those who wish to join the pension scheme now. G) What will be amount an officer (who is PF opttee) has to contribute to join the Pension Scheme?: The officer who is a PF optee and want to join the Pension Scheme has to contribute 2.8 times of his revised Basic Pay as on Nov. 2007 as given below: Basic Pay as on Nov. 2007

Basic Pay as on Nov. 2007

Pre-revised Revised

2.8 times of the “Pay” Rs. Pre-revised Revised

2.8 times of the “Pay” Rs.

10000 14500 40600 20480 28900 80920 10470 15100 42280 21040 29700 83160 10940 15700 43960 21660 30600 85680 11410 16300 45640 22280 31500 88200 11880 16900 47320 22900 32400 90720 12350 17500 49000 23520 33300 93240 12820 18100 50680 24140 36200 101360 13320 18700 52360 24760 37200 104160 13820 19400 54320 25380 38200 106960 14320 20100 56280 26000 39300 110040 14880 20900 58520 26620 42000 117600 15440 21700 60760 27300 43200 120960 16000 22500 63000 27980 44400 124320 16560 23300 65240 28660 45600 127680 17120 24100 67480 29340 46800 131040 17680 24900 69720 30020 48100 134680 18240 25700 71960 30700 49400 138320 18800 26500 74200 31600 50700 141960 19360 27300 76440 32600 52000 145600 19920 28100 78680

Note: The amount as applicable will be recovered from the officers, who are opting for pension scheme now, from the salary arrears payable to them. H) What are the pending issues: The following issues remain unresolved which will be followed up with IBA: 1. Accumulation of 300 days of Privilege Leave etc. 2. Improvement and uniformity in various Loan facilities such as Housing Loan, Conveyance Loan. Personal Loan etc. as regard to quantum, repayment schedule, concessional interest etc. 3. Regulated working hours, 5 day week, compensation for extra hours of work, including working on weekly off and holidays. 4. Bank employees to be treated on par with Central Govt. employees for the purpose of Income Tax on perquisites.

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5. Uniformity in Appeal and Review system under Discipline and Appeal Regulations. 6. Structured forum at IBA for consultations with IBA on all issues concerning the service matters and also the Banking industry. I) What we achieved during 9th Bipartite: There is a campaign against AIBOC, spearheaded by minority unions who were signatories to the settlement. On one side they claim credit for whatever improvements brought out by the settlement and on the other hand they criticize AIBOC for the shortcomings in the settlement. While AIBOC stands by the understandings signed by it, it of the firm view that others have no business to criticize the settlement after signing the same. If they were not convinced, they should not have signed the settlement. While it is necessary for us to be aware of the areas requiring improvement, we should not forget the following achievements made during the Bipartite: 1. The highest increase in wage load i.e. 17.5%. 2. Long pending demand of officers and employees for getting the 2nd option on Pension achieved. This will provide social security for more than 2.7 lakh serving employees and about 65,000 retired employees. 3. Introduction of two additional stagnation increments for officers in Scale I to III will benefit more than 1.5 lakh officers who are in stagnation. 4. For the first time, air travel entitlement introduced for LFC for Junior Officers in Scale-I. Improvement of the air travel facility while on LFC for officers in Scale-II & III when the destination is less than 1000 kms. 5. Substantial improvement in Halting Allowance. 6. Increase in the lumpsum payable on transfer, Medical Aid etc. 7. Increase in FPP and PQP. 8. Improvement in Project Area allowance and Special Area Allowace. 9. CCA retained in spite of pressure from IBA to abolish it. We have provided the above information so that members could understand the gains made during the settlement in its right perspective. ___________________________________________________________________


AMENDMENT TO GRATUITY ACT – 1972 REVIEW OF CEILING FROM RS.3.5 LAC TO RS.10 LAC

1. We are happy to inform all our members that the ceiling under the Payment of Gratuity Act 1972 has been revised from Rs.3.5 lacs to Rs.10 lac with the passage of the Bill in the Loka Sabha for amendment on 3.4.2010. Our members may recollect that it was the initiative of the Confederation which prompted the Ministry of labour to take necessary action at the earliest for amendment of the Gratuity Act to this effect. 2. The leadership of the Confederation met the Deputy Minister of labour Shri. Harish Rawat and submitted a Memorandum requesting him for the immediate action for effecting necessary amendment to the Payment of Gratuity Act to raise the ceiling to Rs.10/- lacs and also to make it effective from 1.1.2006 as was done in the case of the central civil servants. We are now given to understand that as regards the date of effect, it would be dealt by the Labour Ministry while issuing the

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necessary notification. We have therefore sent yet another communication to the Deputy labour Minister, Government of India, New Delhi with an appeal to consider our request for making the amendment effective from 01.01.2006. A copy of our communication is enclosed. 3. All our affiliates / members are requested to await further developments in the matter.

Letter to Shri.Harish Rawat, Hon’ble Deputy Minister of Labour, Government of India, NEW DELHI

Dear Sir, AMENDMENT TO THE GRATUITY ACT - 1972

REVISION IN CEILING FROM RS.3.5 LAC TO RS.10.LAC 1. We are thankful to you for the immediate action taken in response to our representation for the amendment to the Payment of Gratuity Act 1972, revising the ceiling from Rs.3.5 lacs to Rs.10.00 lacs in tune with the acceptance of the recommendations of the 6th Pay Commission for the Central Government employees. 2. We are given to understand from the Press that the amendment has been moved by your goodselves and has been adopted by the Parliament with voice vote extending the benefit of the revision in the ceiling. We hope that, the bill will be duly passed in Rajya Sabha also. It was our earnest request to you at the time of our meeting you in person and handing over our representation that the benefit of the revision should be given on par with the Government employees who got this benefit from 1.1.2006 as a sequel to the acceptance of the 6th Pay Commission recommendations. The members of the banking fraternity all over the country are eagerly awaiting the issue of necessary notification giving the date of effect as 1.1.2006. It is in this background; we once again seek your indulgence in the matter and request you to ensure that the notification issued in this connection will take care of our request for the date of effect as 1.1.2006, for which act of kindness the entire bank officers’ fraternity will remain grateful to you Sir. 3. We are hopeful that our request will be responded positively. Thanking you and with Regards, Yours faithfully,

Sd/-


___________________________________________________________________


INCOME TAX EXEMPTION ON CONTRIBUTION TOWARDS PENSION FUND

1. On account of IBA agreeing to extend 2nd Option on Pension to CPF Optees, funding of pension gap by Optees at 2.8 times of revised pay as on 01.11.2007, a question has arisen as regards to tax on the amount to be recovered, out of arrears of salary and allowances payable on account of 9th Bipartite settlement. According to Income tax rules, the gross arrears receivable on account of salary revision is

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taxable. A portion of arrears is invested in Pension fund towards future liability of Banks who have agreed to extend pension to CPF Optees. Therefore, the contribution has to be treated as investment in Superannuation Schemes and the amount to be exempted from payment of tax. 2. We have today sent a communication to the IBA to issue necessary guidelines to the member Banks to treat the contribution to the pension fund out of arrears payable as investment in superannuation schemes and be exempted from payment of income tax on the same. 3. A copy of the communication is enclosed. We shall advise the outcome later.

********** Letter to The Chairman, The Indian Banks’ Association, World Trade Centre, MUMBAI – 400 020.

Dear Sir,

2ND OPTION ON PENSION CONTRIBUTION TOWARDS PENSION FUND BY CPF OPTEES

1. As per pension settlement, the employees and Officers are eligible to exercise one more option towards the Pension Scheme, in lieu of the Contributory Provident Fund. The agreement also refers to the funding of the Pension Fund gap by way of contribution by the employees and Officers who are in service, out of the arrears payable to them on account of the 9th Bipartite settlement; apart from surrendering of Bank’s Contribution of PF accumulated in their respective accounts. 2. The contributions made by the employees towards the Superannuation Benefits; such as Provident Fund, Pension Fund etc., are eligible for the tax exemption as per the Income Tax rules and treated as investments in the eligible securities for all practical purposes. Thus, the money, so contributed towards pension fund in Bank is liable to be exempted from the payment of Income tax by the Tax authorities. It is in this background, there is a need to issue proper instructions to all the Banks at the time of sending guidelines for the implementation of the 9th Bipartite settlement as well as the payment of arrears to cover inter-alia: a) The amount contributed from the CPF Optees towards their part of contribution for the Pension Fund in view of the 2nd Option on Pension extended to them should be treated on par with their contributions towards the superannuation benefits and necessary exemption should be extended at the time of deduction of tax at source. Thus, the recovery made out of arrears for the purpose of payment towards Pension Fund to the extent of 2.8 times of the revised Pay for the month of Nov.2007 should be treated as investment towards the superannuation benefits and necessary exemption should be allowed for the purpose of calculation of Income tax. In other words, the payment made towards Pension Fund on account of the 2nd Option on Pension should not be treated as taxable at the hands of the Officers.

b) The Bank Managements, while furnishing Form – 16 as well as the statement of arrears paid to the Officers should make necessary entry to this effect to enable the Officers’ concerned to utilize the same at the time of submission of their returns.

c) In view of the fact that the tax on the income for the year 2007-2008, 2008-2009, 2009-2010 have already been deducted at source, the Officers’ should also become eligible to apportion this amount as investment in the next three years’

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income, since the money contributed is very substantial and they may have already exceeded their entitlement for such investments.

3. We therefore, request you to obtain special permission from the CBDT to exempt the entire contribution towards pension fund, from payment of tax. Please therefore look into the matter and take necessary action without further delay. Thanking you,

Yours faithfully, Sd/

(G.D.NADAF)

GENERAL SECRETARY

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CIR.NO:AI/59/2008–2011 Date: 07 06 2010 TO ALL MEMBERS Dear Comrades, Succession Plan on Fast Track –Yet another promotion process to commence

Members are aware that our Bank has formulated a succession plan to ensure continued availability of manpower in the officer cadre and to accelerate their career progression within a time frame. In pursuance of this objective, a promotion process has commenced in February 2010 and the same was concluded. To take the succession plan in a fast track mode to ensure the availability of officers as per the manpower projection made till 31 03 2011 and considering the attrition that is to take place in all grades due to retirements, it was felt that there is a need to relax the eligibility criteria as regards the number of years of service an officer has to complete in a particular scale to be promoted to the next scale and accordingly discussions were held with our Association and the record of discussions was signed as detailed below: Promotion from Scale

Eligibility as per promotion policy in vogue (No. of years of service in the present scale as on the cut off date)

Relaxation approved (No. of years of service in the present scale as on the cut off date)

I TO II 4 2 years II TO III 3 2 years III TO IV 3 2 years

The above relaxation in the eligibility criteria as regards the number of years in the particular scale for an officer to be promoted to the next scale shall be applicable for the immediate promotion process as a one time measure. All other terms and conditions contained in the Promotion Policy for Officers duly communicated vide HO: HRM: Circulars HRM-96/2008-09 dated 26 12 2008 and HRM:149/2009-10 dated 02 01 2010 shall remain unchanged. Comrades, we expect the promotion process to commence shortly and the above relaxations would enable grooming of sufficient number of officers to take up higher responsibilities in future thus avoiding lateral recruitment. We wish the eligible candidates Best of Luck and Success. Implementation of the Settlements on Salary Revision & Second Option on Pension

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The attention of our members is drawn to our Circular No.AI:56:2008-2011 dated 27 04 2010 giving the highlights of the settlements signed on salary revision and second option on pension. A Booklet containing the Joint Note on salary revision and pension with details of charts showing DA, HRA etc., has been published by AIBOC and the same has been sent by us to all the branches. We have been receiving anxious enquiries about the implementation of the above settlements and we are glad to inform that in principle clearance has been given by Government of India for the implementation of the salary revision and the payment of actual arrears on adhoc basis and we expect our Bank to issue instructions in this regard shortly. Members would agree that it is not possible to conduct the affairs of the Association with the monthly subscription considering the high cost of communication, establishment, travel and other expenses. Hence it has been the practice to collect levy from members for running the Association smoothly. Our Units will be issuing the communication in this regard and we would like to impress upon our members that levy is a primary obligation and hence they are requested to pay the same in full. Gratuity Ceiling raised We are glad to inform our members that the ceiling under the Payment of Gratuity Act has been revised from Rs.3.50 lakhs to Rs.10.00 lakhs with the Lok Sabha approving the amendment on 03 04 2010. Gazette Notification has been issued by the Ministry of Labour notifying that the revised ceiling shall be effective from 24 05 2010. Bank’s Board approves the incentive scheme We are glad to inform our members that our Bank’s Board in its meeting held on 31 05 2010 had approved the incentive scheme which will cover around 25% of the entire staff. The details of the scheme would be circulated by the Bank. With Greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

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CIR.NO: AI / 60 / 2008–2011 Date: 14.08.2010 TO ALL MEMBERS Dear Comrades,

1. Legal hurdles cleared – IBA issues guidelines for implementation of Second Option for Pension – Pension becomes a reality.

2. Com P K Sarkar takes over as President of AIBOC

Kudos to the entire Bank Employees and Officers across the Country for their patience and perseverance. The Salary Revision agreement and the Second Option for Pension were signed simultaneously and the various provisions were circulated by us by way of two booklets. While the Salary Revision was implemented, implementation of Second Option for Pension got struck up due to an interim stay granted by Hon’ble High Court of Madras. Thanks to the efforts taken by the UFBU and IBA the stay has been vacated and IBA has issued guidelines to the Banks for implementation of Pension Settlement.

The 2nd option for Pension now offered to the members who are eligible for the Pension Scheme as well as the retirees from the banks with immediate effect. A detailed communication has since been issued by the IBA. The salient features of the instructions issued by the IBA are as follows: - (Gist of IBA Circular No.CIR/HR&IR/G2/665/90/2010-11/999 dated 10.08.2010)

“a. To facilitate early implementation, Government has consented IBA

advising all banks that they may undertake the exercise for seeking the option from the employees both serving and retirees who did not opt for pension earlier, explaining the terms and condition for such option.

b. Sanction of the Government is also accorded to implement the terms of

Settlement/Joint Note dated 27th April 2010 between IBA and Unions/ Associations for the grant of option to the retirees and payment of pension to such retirees w.e.f 27th November 2009, who opt for pension and comply with terms and conditions set out in the Settlement/Joint Note for the grant of pension, pending necessary amendments in the Bank (Employees’) Pension Regulations, 1995.

c. The existing pension scheme will not be applicable to those, who join

the services of banks on or after 1st April 2010. Officers/workmen employees, joining services of banks on or after 1st April 2010 shall be eligible for Defined Contributory Pension Scheme on the lines of New Pension Scheme introduced for employees of Central Government. The Officer/Workmen employees joining service on or after 1st April 2010 shall contribute 10% of Pay and DA towards the Defined Contributory Pension Scheme.

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d. Officer/Workmen employees, who opted for Voluntary Retirement under special Voluntary Scheme after rendering a minimum of 15 years, service, shall be eligible to exercise option to join the Pension Scheme subject to terms and conditions applicable to retirees.

e. Pension/Family Pension will be payable to those, who opt to join

pension scheme and comply with terms and conditions set out in the Settlement/Joint Note dated 27.4.2010.

f. The cost of another option of pension for the serving employees and the

grant of option to the retirees assessed by the Actuaries, based on the estimates of each Bank, will be closely supervised by the Monitoring Committee. The Banks which exceed the cost than the Actuarial report would need to explain to the Government.

g. The monitoring in this regard may be carried out every quarter at the

Board level. h. We are enclosing a draft of the Option letters to be obtained from

serving employees and retirees for guidance. You are requested to take immediate steps to circulate the terms and condition on which another option is granted to non-optees as contained in the enclosed Settlements/Joint Note among the staff members, with the approval of the Bank's Board,

i. You are also requested to advise those who retired from service on or after 29th September 1995/26th March 1996 in the last known address, the following information as available in the Bank's records:

i. The amount of Bank's contribution to Provident Fund with interest paid to him at the time of retirement.

ii. 56% of the above amount representing his share in the funding gap.

iii. The lumpsum amount he may get if he exercises his option to join the Pension Scheme and choose to commute the maximum permissible pension (1/3rd of Basic Pension) based on the commutation value on his next date of birth from the date of option.

j. IBA is arranging to publish an advertisement in English in a National daily and other newspapers in Regional Languages advising the retirees to approach the banks in this regard.

k. Banks may consider setting off the commutation amount of the optees

against the amount due from him for joining the Pension Scheme. l. In terms of Memorandum of Settlement dated 27th April 2010, in the

case of workmen employees and Joint Note dated 27th April 2010, in the case of Officer employees, those who ceased to be in service on account of retirement on superannuation, death or on account of VRS under special scheme prior to 27th April 2010 but after 29th September

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1995 from Nationalized Banks and after 26th March 1996 from Associated Banks of State Bank of India are eligible to opt for joining the pension scheme now as retired employees subject to the terms and conditions stipulated, Those who were in the service of the Banks as on 27th April 2010 will be eligible to join the pension scheme as serving employees subject to the terms and conditions stipulated.

m. Once the Scheme is implemented and funds received from those who opted to join the Pension Scheme complying with the terms and conditions for such option, please advise us the details in respect of:

i. Bank's contribution with interest paid to the retirees at the time of retirement refunded by them

ii. 56% of the above remitted by them towards their share of funding gap.

iii. Bank contribution towards Provident Fund and interest accrued thereon transferred to the pension in respect of serving employees who opt to join the pension scheme now.

iv. 2.8 times of revised pay for November 2007 contributed by serving employees who opted to join the pension scheme now.

n. You may kindly approach us for any clarification in respect of implementation of the Settlement/Joint Note in extending another option to join the Pension Scheme to employees/retirees as above.”

We request all our members and retirees who are eligible for the benefit of 2nd option for Pension to kindly take advantage of the scheme and see that they exercise the option within the time limit available so that they are able to get the full advantage of the Pension Scheme.

Com. P. K. Sarkar takes over as President of AIBOC:

Com. P. K. Sarkar, General Secretary of All India Union Bank Officers’ Federation and the President of All India Nationalized Bank Officers’ Federation has been co-opted as the President of AIBOC in the vacancy created by the retirement of Com. K. S. Shetty from Syndicate Bank who has retired on superannuation. We congratulate Com. P. K. Sarkar on his occupying the important position as President of AIBOC and we are sure that he will steer AIBOC with balance and harmony to realize the objectives of the organization. We wish Com. P. K. Sarkar all the best. With Greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

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CIR.NO: AI /61 / 2008 – 2011 Date:20 08 2010 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

PENSION – 2ND OPTION AT YOUR DOORSTEPS -EXERCISE YOUR OPTION QUICKLY We draw the attention of our members to our Circular No.AI/60/2008-11 dated 14 08 2010 wherein we have informed that the IBA had issued guidelines to the Banks for the implementation of pension settlement. We have also reproduced the salient features of the instructions issued by the IBA. We are given to understand that the Board’s approval is being obtained as required and the Bank will come out with the circular shortly. Hence it is time for action on the part of the beneficiaries i.e. both serving as well as retiree officers. They are required to submit their option letter with in the time limit that will be prescribed in the Bank’s Circular on the basis of the procedure advised by the Indian Banks’ Association. In order to facilitate the completion of the exercise without delay, we furnish copies of the draft option letters for the reference of the members. There are three separate draft letters for submission of option. One is in respect of serving officers; the second one is in respect of the retirees and the third one for the family members of those who are eligible for family pension. We request all our members to reach the retirees and ensure their submission of option within the prescribed time. We also request our members to pay special attention to the family members of the deceased employees since they may not have the contact with the Institution or the Association so that the benefit of 2nd option is made available to them. Comrades, we have a special responsibility in ensuring the 2nd option on pension to be made 100% of those who are eligible for the same and then only we can say that we have fulfilled the dream of our colleagues in the real sense. With greetings, Yours Comradely,


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CIR.NO: AI /62 / 2008 – 2011 Date: 14. 10. 2010 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

UFBU MEETING HELD ON 7TH OCTOBER, 2010

Further to the Wage Revision and the 2nd Option on Pension Settlement a meeting of UFBU was held Mumbai on 07.10.2010. The meeting took stock of the situation and discussed on various important issues and the need to resist and fight back the offensives of the Government. Hence, UFBU has decided to unleash agitational programmes shortly. We reproduce hereunder the text of UFBU Circular No.5 dated 10th October 2010, for the information of our members.

With greetings, Yours Comradely, T. T. NATARAJAN SECRETRY GENERAL ____________________________________________________

TEXT UFBU CIRCULAR NO.5 DATED 10.10.2010

“A meeting of the UFBU was held at Mumbai in the AIBEA office on 7-10-

2010. The meeting was presided over by Com.P.K.Sarkar (President,

AIBOC). The meeting while taking note that the wage revision settlement

has since been implemented and the process of submission of option to

pension scheme is underway, had a detailed discussion on the various

important issues.

1. Revised Scheme on Compassionate Ground: The meeting was seriously

concerned to observe that the revised scheme on compassionate

appointments/compensation scheme as mutually discussed and finalized

between IBA and UFBU is pending consideration and approval by the

Government for the past 20 months. The meeting decided that this issue

should not be allowed to be delayed further and must be pursued earnestly

on top priority including by agitational programmes, if necessary.

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2. Staff Housing Loan: The meeting further observed that while the

Government’s earlier guidelines to the Banks on Staff housing Loan, Staff

Vehicle Loan and Festival advance have become outdated due to escalation

in costs etc., the same are not being revised despite various representations.

Hence, the meeting emphasized the need for early revised guidelines from

the Government on these issues.

3. Pension Scheme: As discussed in the earlier meetings, it was decided to

pursue issues like improvements in pension scheme on the lines of

Government scheme as amended under the 6th Pay Commission, periodical

updation of pension, 100% DA neutralization on pension to all pensioners,

improvement in Family pension, Ex-Gratia paid to Pre 1986 retirees/their

widows, etc. besides taking up the issues of pension benefit to those

sections of retirees who are not presently covered by the scheme/settlement.

4. Recruitments: The meeting was perturbed to take note of the acute

shortage of staff in Banks and the need for adequate recruitments to provide

necessary staff in the branches keeping in view the increased workload,

future requirements, programmes of financial inclusion, etc. The meeting

also demanded that such recruitments should be made through common

process through revival of BSRB instead of the present bank wise

arrangements through private agencies.

5. Khandelwal Committee Recommendations: The meeting noted that as

per the press reports, the Committee has made the following

recommendations:

1. To outsource all non-core jobs 2. Direct Recruitment of Officers upto 50 % 3. Qualification for recruitment: For Clerks: Graduation /

For Substaff: 10th Std. 4. Fresh Recruitments to be only in Rural and Semi Urban areas 5. Appointment of exclusive Executive Director ( H R ) 6. Bank wise wage revision based on capacity to pay, profitability,

productivity, etc. 7. Introduction of Variable Pay as a major component of wages 8. Introduction of cost to company concept.

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9. Review of all internal settlements on mobility and transfer of employees.

10. HR Professionals to be recruited at senior/junior levels. 11. HR administration to be automated through web-based system

The meeting decided to out rightly reject these adverse recommendations as

the same are anti-employee and anti-union in their content and intent. The

meeting decided that these measures should be fought back with all our

strength.

6. Banking Correspondents: The meeting took note of the plans of the

Government/RBI/Banks to outsource normal banking services through

private business correspondents and observed that these are nothing but

attempts to casualise and contractualise regular banking jobs endangering

job security besides exploitation of education unemployed youth.

7. RBI’s proposals of New Licensing policy: The meeting took note of the

recent proposals of the RBI envisaging licenses to be given to Corporates and

Industrial Houses to open more Banks and to hand over RRBs in private

hands, NBFCs, etc. The meeting pointed out that these proposals are most

ill-advised ad detrimental and hence need to be opposed and resisted.

Interaction with Retirees organisations: Representatives of United Forum

of Retirees organisations met UFBU during the meeting and submitted their

views and suggestions on the various issues concerning the retired

employees. They sought the support of the UFBU in pursuing these issues

and UFBU assured them of the same.

Meeting with Damodaran Committee on Customer Service: RBI has set

up a Committee on Customer Service with Mr. Damodaran (former

Chairman of SEBI). This Committee had invited our unions for a discussion

on 7-10-2010 and to solicit our suggestions on these issues. Our Unions

met the Committee and placed their view points.

Comrades, it will be observed that the situation is increasingly becoming

hostile and there is no alternative for us than to unitedly resist and fight

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back these offensives. Hence, UFBU has decided to unleash agitational

programmes shortly.”

Yours Comradely, Sd/- (C.H.VENKATACHALAM) CONVENOR

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CIR.NO:AI/63/2008 – 2011 Date: 30 12 2010 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

ZONAL LEVEL CONSULTATIVE COMMITTEE MEETINGS REVIVED

Members are aware that our Association used to have the Structured Meetings at Head Office level and at the Zonal level till the four tier system of administration was followed in the Bank. After the de-layering of the erstwhile zonal tier of administration, the system of holding Structured Meetings at Zonal level was discontinued and we have been urging upon the Management to introduce the system at circle level. Our relentless follow up has now yielded the results and we are glad to inform our members that the earlier system of structured meetings which is now called as Consultative Committee Meetings is revived and the instructions have been passed on to the Zonal Administrations in this regard and accordingly Zonal Level Consultative Committee Meetings will be held at all Zonal Offices. The forum of Consultative Committee Meetings is a two way communication system and hence it can be effectively utilized for sorting out the issues at the zonal level. Hence, we request all our members take note of this development and apprise the zonal level issues to the respective units to enable them to present effectively and arrive at amicable solutions. STAFF WELFARE MEASURES - A RECAPITULATION The need for improving staff welfare measures has been continuously highlighted by our Association and as a result of our persuasion improvements have taken place in the staff welfare measures. Though these improvements are circulated by the Bank, we find that many members are not aware of these developments and as a result the benefit does not reach all the eligible staff. Hence, we thought that it would be in the fitness of things to circulate the details of the important benefits so that they are availed fully and the intent and purpose of introducing them is fully met.

Reimbursement of Medical expenses over and above the amount reimbursed under Officer Service Regulations.

Nature of Surgery Amount of Hospitalization

Expenses incurred Reimbursable under SWS is 100% for self / 75% for dependant over & above eligibility under OSR

Minor / Major surgeries 50,000/- to Rs.1,00,000/- Rs.25,000/- Major surgeries 1,00,000 and above Rs.50,000/-

PLEASE CIRCULATE

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The above benefit is introduced from 01 10 2010 onwards and the classification of minor/major surgeries as per OSR is as under: Minor Surgeries D&C, Fissure, Circumcision, Small Hydrocele, Dilatation, Vasectomy, Abscess, Bilat, Hydrocele, Appendix, Tubectomy, Piles, Fistula, Minor Operations of the Eye, Nose and Ear. Major Surgeries Brain, Lung, Bone Marrow Transplant, Kidney Stone (including lithotripsy), Prostate, Thyroid, Caesarean Delivery, Gastrectomy, Hysterectomy, S.P. Nailing, Discoidectomy, Retina Detachment. Liver & Gall Bladder, Plastic Surgery (Not for beatification), Cataract (with IOL), Hernia subject to Bank’s discretion

Reimbursement in the case of specified ailments over and above the amount reimbursed under Officer Service Regulations.

S.No. Name of treatment Earlier

Reimbursement Revised Reimbursement

1 Open Hear Surgery 60,000 80,000 2 By pass Surgery 60,000 75,000 3 Angioplasty (without Stent) 10,000 32,000 4 Closed Heart Surgery 30,000 27,625 5 Angiogram ---- 4,500 6 Cancer 2,50,000 3,00,000 7 Kidney Transplantation 1,75,000 2,25,000 8 Orthopaedic surgeries 1,50,000 2,00,000 9 Liver Transplantation 3,00,000 3,00,000 The above benefit is introduced from 01 10 2010 onwards.

Payment of subsistence allowance to the staff who are on loss of pay due to prolonged hospitalization.

Staff members who are on leave on loss of pay due to prolonged hospitalization were paid subsistence allowance of Rs.5,000/- per month for a period of 6 months in one occasion and twice in their career for a maximum period of 12 months. This has been now enhanced to Rs.10,000/- or 75% of the gross salary whichever is less for a maximum period of 6 months in one occasion and 3 times in the entire service with a maximum period of 18 months and this provision apply for the loss of pay leave availed by staff members on or after 01 12 2010.

Provision of eye check up and purchase of spectacles for employees

above 40 years of age. Staff members above the age of 40 will be reimbursed with an amount not exceeding Rs.3,000/- towards the reimbursement of eye check up

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and purchase of spectacles and this reimbursement is permitted for three times in the entire career of staff with a condition that the interval between any two reimbursements shall not be less than 4 years.

Reimbursement of amount for the HEALTH CHECK UP undergone by the

staff and their spouses. Under this scheme, officers in Scale.IV and above are eligible for reimbursement of Rs.3,000/- and the reimbursement for the spouse is Rs.2,000/- and the staff members and officers upto Scale.III are eligible for reimbursement upto Rs.2,000/- and the reimbursement to their spouses is Rs.1,500/-.

Health Insurance Premium to Retired Employees Staff members who have retired on superannuation are eligible for reimbursement of health insurance premium for Medi-claim Policy of Rs.2.00 lakhs. The amount of premium eligible for reimbursement is Rs.4,000/- for the retirees upto the age of 65 years and Rs.9,373/- above the age of 65 years. A retired staff member with his/her spouse is free to take a common health insurance policy from any of the Public or Private Insurance Company and can claim this reimbursement. As the premium applicable to Bank’s Arogya Raksha Mediclaim Policy is taken as the standard for fixing this premium amount, the amount will get increased whenever the premium for Bank’s Arogya Raksha Mediclaim Policy is increased and the same would be circulated.

Medical Aid to Retired Staff Members

Staff members who have retired on super annuation are eligible for Medical Aid of Rs.4,000/- per annum.

We request all our members to avail the benefit of health check up and other benefits wherever applicable and also inform the retired staff on superannuation about the eligible benefits so that they can avail the same.

TRANSFERS We are receiving anxious queries about the Repatriation Transfers, Pre-retirement Transfers, Request Transfers and other General Transfers. We request all our members who are desirous of applying for transfers under any of these categories to submit their applications through their Zonal Office to HO:HRM Department marking an advance copy to HO:HRM Department and a copy to their units and to us for follow up. We wish all our members and their families a “VERY HAPPY AND PROSPEROUS NEW YEAR”

With greetings,

Yours Comradely, T. T. NATARAJAN SECRETRY GENERAL

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CIR.NO:AI/64/2008 – 2011 Date: 03 01 2011

TO ALL MEMBERS PLEASE CIRCULATE

Dear Comrades, STAFF HOUSING LOAN LIMIT ENHANCED

Members might have received the Circular of the Bank communicating the enhancement of Staff Housing Loan Limit of Officers to Rs.20.00 lakhs. This has been possible due to the continuous efforts of our Association and the positive attitude shown by the Management. The salient features of the revised Staff Housing Loan Scheme applicable to officers is given below:

Limit : Rs.20.00 lakhs Rate of Interest - 8% p.a. (simple interest) Eligibility: Continuous Service of 4 years in the Bank. In case of Officer belonging to SC/ST category, 3 years of continuous service.

Margin : 10% of Total Cost. Second Housing Loan: As a one time measure, officers who have already availed Staff Housing Loan are permitted to sell their houses / flats acquired under Staff Housing Loan and to buy new houses/ flats. The interest rate is 8% p.a. (simple interest)

Additional Housing Loan: Officers who have already availed Staff Housing Loan are eligible for an additional housing loan of Rs.5.00 lakhs for carrying out additional construction, repairs/renovation work and the rate of interest is 8% p.a. (simple interest).

Take over of existing Housing Loan / Home Loan liability

Take over of pre existing Housing Loan / Home Loan availed by the officers from our Bank or any other Bank is allowed at our Bank’s discretion and the maximum amount permitted for take over shall not exceed the maximum ceiling as provided under the Revised Housing Loan Scheme.

Comrades, the year 2011 has begun with our Bank conceding to our long pending demand of enhancement of Staff Housing Loan limit. We thank the Chairman & Managing Director, Executive Directors and the General Manager (HRM) and his team for making this achievement possible and we hope that many more staff welfare measures and benefits would be implemented in the course of this YEAR 2011.

With greetings,

Yours Comradely,

T. T. NATARAJAN SECRETRY GENERAL

PLEASE CIRCULATE

cir. no: ai / 01 / 2008 – 2011 date: 14.03.2008 to all … · xv triennial conference held at...

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