xiv triennial conference held at chennai on 25.12 · compassionate appointment scheme 8. second...

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Cir. No: AI/01/2004-2007 Date: 29.12.2004 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

The XIV Triennial Conference of our All India Indian Bank Officers' Association assumed very great importance as the conference is being held in the backdrop of the MOU on wage revision signed and the anxiety prevailing over the merger mania that has gripped the banking industry. Moreover, this is the Conference in which our great leader Com.A.K.Jana, who has led the movement for more than 2 decades, was to relinquish his office as President in view of his retirement from the services of the Bank on 31.12.2004. The Conference commenced at 11.30 a.m. with Com.A.K.Jana, President occupying the chair. He said that it was a painful decision to hold the Conference on a Christmas Day but it has become inevitable due to certain unavoidable circumstances. The Secretary General placed the report covering the developments on the International Scene, Banking and Economic Scenario, Salary Revision, the talk about the Merger & Acquisition of Banks, Independent Commission on Banking and Financial Policies formed by the AIBOC and the present position of the issues such as Compassionate Appointment, Office Bearers Transfers, One more Option for Pension, payment of Income Tax on Perquisites, Promotions, Transfers and the other developments at the Association level. Many comrades participated in the discussions on the Secretary General's report and came out with the frank and forthright views. Many voiced their concern over the repeated news items appearing in the print and electronic media about the Merger and Acquisition of Banks. The Secretary General gave a detailed reply to the various points raised by the members and thereafter the report was adopted unanimously. The accounts upto the period 15.12.2004 was presented and the same was approved with a direction that year-wise segregation has to be placed in the ensuing Executive Committee for its information. The Conference unanimously passed the resolutions on the following subjects.

1. Working Class Unity 2. Income Tax on Salaries and Perks 3. On the New Economic Policies 4. Industrial Relations Bill 5. Accountability 6. Conduct and Discipline Rules: Prolonged suspension; Disproportionate and Harsh

Punishments; Appeals and Review Petitions; Sealed cover procedure 7. Compassionate Appointment Scheme 8. Second Option for Pension 9. In Defence of Public Sector 10. Attack on Trade Unions

XIV TRIENNIAL CONFERENCE HELD AT CHENNAI ON 25.12.2004

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11. Demand for Reduction of Interest rates on Staff Loans 12. Opposing the Move of Merger and Acquisition

The following amendment to the rules and bye-laws of the Association was adopted unanimously.

Clause No.5 of the Bye-Law which deals with Funds and Accounts is amended by increasing the affiliation fee to Rs.50/- per member per annum besides the affiliation fee prescribed by AIBOC from time to time.

Com.A.K.Jana gave a detailed account as to how the movement was built over a period of years and touched upon the responsibility that is cast on the incoming team to carry forward the movement with commitment and more determination as great challenges are ahead. The delegates recalled their long association with Com.A.K.Jana and profusely thanked him for his contribution and guidance all through these years. Com.A.K.Jana released the house journal of our Tamilnadu Unit published under the caption "OFFICERS FRONT". While releasing the house journal he emphasized that every organisation should have a house journal to express its view point as that alone will facilitate the important issues getting the required focus and attention and membership awareness. Thereafter Com. S. Subbiah and Com. V. Kabaleeswaran were nominated to conduct the Elections for the ensuing term. Elections took place for the post of President and Com. K. Chandrasekaran was declared elected as President. The following is the list of Office Bearers for the ensuing term. President : Com.K.Chandrasekaran

Vice Presidents : Com.K.T.Venkateswaran Com.Sanjay Lade Com.A.X.George Com.B.S.Subramanya

Secretary General : Com.T.T.Natarajan

Deputy Secretary Generals : Com.A.V.M.Balasubramaniam Com.Mohammed Iqbal Com.K.N.Mohanan Com.S.Suresh

Treasurer : Com.C.Sundararajan

Assistant Treasurer : Com.A.Sivakumar The Conference came to end with the 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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MERGER OF BANK OF INDIA & UNION BANK OF INDIA The Bank Employees and Officers under the banner of UFBU representing over 10 lakh employees have conveyed their strong resentment over merger/acquisition of Public Sector Banks on several occasions. The UFBU has also conveyed its resentment through protest rallies and telegrams to the authorities concerned. Of late, we have been receiving disturbing reports through press as well as the officials of the Ministry of Finance, IBA and RBI of their initiatives to go ahead with the merger process in the name of consolidation of banking industry. The recent reiteration of the proposal by the Hon 'ble Minister of Finance Shri.P.Chidambaram in the Parliament indicating the Government's moves towards consolidation through acquisition and merger has raised the controversy once again. In the recent past, the press carried a report stating that RBI has also consented for the merger of Bank of India and Union Bank of India. Taking a view that this kind of developments cannot be taken lightly UFBU has instructed the constituents to carry out the following action programmes.

1) Telegram to be sent by all the units of the Constituents of UFBU and all the units of BOI and UBI.

2) Lunch Time Demonstrations in front of BOI and Union Bank of India offices all over the country. The employees and officers of other Banks should join the demonstrations.

3) Formation of Co-ordination Committee of UFBU in BOI and Union Bank of India for further struggles.

Accordingly we have given a telegram to the Hon 'ble Minister for Finance, Government of India; Governor, Reserve Bank of India; The Chairman, IBA; The Chairman, Union Bank of India and The Chairman, Bank of India. The text of the telegram sent by us and the text of the letter written by the Convenor, UFBU to the Hon 'ble Minister of Finance, Governemnt is reproduced for the information of our members. Quote:

TEXT OF TELEGRAM

Merger of Bank of India and Union Bank of India

"We, one of the units of the Constituents of United Forum of Bank Unions (UFBU) representing the officers working in Indian Bank hereby lodge our protest and concern that the views of UFBU in the matter of Merger/Acquisition of Public Sector Banks have not received due consideration at the appropriate levels.

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On the contrary we are surprised at the orchestrated press statements quoting Ministerial sources, appearing time and again in leading News Papers that Merger/Acquisition is the only panacea for consolidation and globalisation. We are more particularly concerned with the latest Press Reports in terms of which the Reserve Bank of India has approved the proposed merger of Bank of India and Union Bank of India. Should the above proposal be put through, we will be left with no other option but to resort to a lighting strike to focus public attention on the subject. We hope you will reconsider the matter and put a halt to the proposal before it is too late." Text of UFBU's letter to The Hon 'ble Minister of Finance, Govt. of India, New Delhi:

Proposed Merger of Bank of India and Union Bank of India For quite some time we have been voicing our concern and protest against the Government's moves for merger and acquisition of Public Sector Banks in the name of economic reforms, globalisation etc. The Public Sector Banks were created with an avowed social purpose of financing priority sectors and giving a thrust to overall development of the country's economy. In the recent years, there has been a shift in the functioning of the banks from 'Mass Banking' to 'Class Banking'. Profit has become the sine-qua-non. Branches at rural centers are being closed in the name of viability. In the process, the common man has been left in the lurch to fend for himself. Despite these odds, the Public Sector Banks have been performing quite well, registering higher profits during the last couple of years. But brushing aside our reasoned submissions, the Government appears to be bent on its Merger/Acquisition syndrome. The first such merger is the proposed merger of Bank of India and Union Bank of India. A number of statements have appeared in the press relating to the mergers quoting the Finance Ministry sources. According to the reports appearing in the leading papers, the Governor of RBI also appears to have given his OK for the merger. Representing the entire officers and workmen in the industry, we are taken aback by the series of developments. The bankmen are sore that their view-points have not received due consideration at the Governmental level. Accordingly, in the event of the proposed merger between Bank of India and Union Bank of India being put through, all the officers and workmen in the entire Banking Industry will be left with no other alternative but to resort to an immediate 'Lightning Strike' to voice their strong protest in the matter. We request you to look into the matter urgently and avoid Industrial Relations conflicts in the Banking Industry in the interests of the Nation and its economy.

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Unquote: Comrades, the UFBU will meet shortly to decide the further course of action. In the meanwhile we request our members to be in readiness to respond to any call of the Organization With greetings, Yours Comradely, T.T.Natarajan Secretary General

Secretary General's Cell No.: 94440-78521 President's Cell No. : 94440-25302

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Cir. No: AI/03/2004-2007 Date: 06.01.2005 TO ALL MEMBERS PLEASE CIRCULATE

FAREWELL 2004 - WELCOME 2005 Dear Comrades, The year 2005 has dawned without much fun fare or celebration, obviously and understandably, on account of the titanic Tsunami, rising from the fifth largest earth quake since the beginning of 20th century that has devastated the whole region of South Asia, killing people indiscriminately in more than half a dozen countries. India, Sri Lanka and Indonesia have been hit most disastrously. The death toll continues to mount day by day as new bodies are being recovered. As far as our country is concerned the worst hit is Andaman Nichobar Islands besides the substantial loss of lives and properties in Tamilnadu, Kerala and Andhra Pradesh. Besides the Government relief operations the people of the country have responded magnificently with their contributions for providing immediate relief to those who had survived. But the task of rehabilitation and rebuilding is gigantic. As we usher into the new year, let us resolve to commit ourselves totally to this gigantic task for providing shelter and sustenance to those who had survived and we wish that in the days to come, the country should prepare for earth quakes with a greater measure of mission and scientific clarity atleast to the extent of getting a warning so that the loss of lives could be averted. Looking back to the year 2004, on the political front, the humble Indian voters shook not only the country but the whole world. Those who thought that they would never loose, lost and who never thought that they would win, won. A Government under the Congress leadership with the Left extending outside support was formed. Except the secular credentials, this Government also follows the reforms agenda without let up. Of course the Left have applied certain breaks. It is imperative that the working class, in the days to come, should be in preparedness for greater struggles to resist the anti people reforms if over zealousness envelops the Government in advancing the reforms agenda. On the economic front the year 2004 was an year of recession throughout the world. The industrial production has remained as the lowest, credit off take was sluggish and the interest rate saw the lowest bottom. The central banks of many development countries took a position that they are under such a pressure that they are not in a position to introduce Basle II Accord norms till 2008. Against this backdrop India is the only country, among developing and developed countries, which has accepted to follow the Basle II Accord norms from 31st March, 2005. This clearly shows that the banking industry in India has not only faced a severe storm of recession bravely but has also come out successfully in a more stronger position than the banking industry in any other part of the world. Our Bank continued to tread in its successful journey and the bank earned an operating profit of Rs.802 crores as on 31.03.2004 and a net profit of Rs.405 crores. Our bank, which was rated as the foremost trusted brand among all service banks based in South India in the year 2003, retained the position for the year 2004 also. Further we have moved from 13th rank to 10th rank among all service brands in India as per the survey

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conducted by AC Nielson ORG Marg. Of course we cannot rest on our laurels. We have a long way to go as the interest earned on recap funds forms a major part of our profit. We need to redouble our efforts to register an impressive growth and march forward. This is not an impossible task as we have people of high calibre and quality.

The year 2004 also witnessed industrial unrest in the banking industry due to strikes, on account of delay in the settlement of wage revision. On 23rd November 2004 the historical wage revision settlement (MOU) was signed with an increase of 13.25% effective from 1st November 2002.

Due to the constant efforts of AIBOC reference to CVC was restricted to officers in Scale V and above.

The constant efforts of our Association have brought silver linings kindling the hopes and aspiration of our members. Improvements in staff welfare measures and rental ceilings, restoration of MOU sacrifices, signing of promotion policy, conducting of coaching classes and bringing out a booklet at concessional rate for the benefit of our members appearing for the promotion process and additional increments to the special selection process officers who were fitted much below the normal promotees etc. are some of its achievements. The Specialist Promotion Policy is going to be finalised shortly. We hope that the long awaited discussions on Transfer & Placement Policy will also see the light of the day. Satisfactory solution is still eluding on the issue of Compassionate Appointment and UFBU has decided to go for intensive struggle after the salary revision. The year 2004 also saw the retirement of our beloved and affectionate leader Com.A.K.Jana who was spearheading and leading us from the front for the last 22 years. The year 2005 is pregnant with enormous possibilities and upheavals. As a segment of enlightened citizen of this great Nation, we cannot remain oblivious to turn of events, issues thrown up and their impact on the future. Natures' fury and the consequent human agony remind us that we have to redouble our efforts to change India for better. AIBOC has been build up on the principle "Nation First – Organisation Next – Individual Last". As true soldiers of AIBOC let us dedicate ourselves for building up a better life condition and improved civilization. Before we conclude, a word of caution to our members about the increase of frauds in the bank and the painful part of involvement of insiders. It should concern all of us and make us introspect about the degeneration that is taking place around us. An Institution can cope up with administrative mistakes, leadership set backs but it cannot cope up if its ethical foundation is collapsed. We are tempted to quote the famous adage "When wealth is lost nothing is lost, when Health is lost something is lost, when Character is lost everything is lost". We are sure that our members will do their best to preserve the character of our institution, an institution that has come into existence out of Swedeshi spirit and contribute their best to build up a better society and in the process a better nation. We wish all our members, their families and friends a Very Happy & Prosperous New Year. With greetings, Yours Comradely, T.T.Natarajan Secretary General

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Cir. No: AI/04/2004-2007 Date: 31.01.2005 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades, Com.A.K.Jana, affectionately known to every one of us as Janada, who led the officers' movement for more than two decades has retired from the services of our Bank on 31.12.2004. He joined our bank as a probationary officer in the year 1973 and rose to the level of Chief Manager. Right from the beginning he was very active in the officers' movement. In the year 1977 he was elected as the Assistant Secretary of our Eastern Zone Unit. He was elected as its President in 1979. He was elected as the President of our All India Body in year 1983 and held this position till he stepped down in view of his retirement. When the AIBOC was formed in the year 1985, he was elected as its Executive Committee Member and continued in that position for more than 3 terms. He was elected as Vice President of AIBOC in the year 1995 which position he held till he scaled the pinnacle of leadership i.e. President, AIBOC in December 2003. He served in our Bank's Board for over 6 years. Com.A.K.Jana was a man of versatile talent and he was the knowledge capital of our organisation. He successfully steered the officers' movement in our Bank and shaped it as a real trade union. He always led the movement from front but never claimed credit for any achievement. He was an ideologue of AIBOC. He had his strong views based on a conviction routed in Marxian thoughts. Yet he would work to take people with divergent views together. A very grand farewell function was organized to Com.A.K.Jana on 27.12.2004 at IMAGE, Chennai. Our Chairman & Managing Director Shri.M.B.N.Rao was the Chief Guest. Com.Shantharaju, General Secretary, AIBOC; Com.R.C.Agarwal, President, AIBOC; Com.CH.Venkatachalam, General Secretary, AIBEA; Com.L.Balasubramaniam, President, NCBE; Com.K.V.Acharya, Joint General Secretary, AIBOC; Com.K.Parthasarathy, Secretary, AIBOC-Tamilnadu Unit; Com.E.Arunachalam, Secretary General, FIBEU; Com.Tapan Das, President, IBEF; Com.K.Krishnan, General Secretary, IBEF; Com.K.Bhaskaran, General Secretary, IBOF; Com.S.Ganesan, General Secretary, NAIBO; Com.R.Kunjithapatham, Chief General Secretary, AIIBSU; were the guest speakers. Shri.AR.Nagappan, former General Manager and presently the Executive Director of

COM.A.K.JANA, AN INSTITUTION, RETIRES

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Indian Overseas Bank, Shri.T.Valliappan, General Manager (P & HR), Shri.S.R.Shivasamy and many other Executives attended the function.

Our Chairman & Managing Director, Shri.M.B.N.Rao proudly recalled his long association with Com.A.K.Jana and complimented him for his constructive role in rebuilding the bank after the difficult times. Com.R.C.Agarwal appreciated Com.A.K.Jana for his forthright approach. Com.Shantha Raju gave the entire credit of signing of MOU on wage revision with the 13.25% load factor to Com.A.K.Jana. Com.C.H.Venkatachalam compared the role of Com.A.K.Jana in the wage revision exercise to that of a full back player in a football match who never allow the ball to go beyond him and solidly protect his side. Com.L.Balasubramaniam complimented Com.A.K.Jana for his consistent views. Com.K.V.Acharya highlighted Jana's humane approach. Com.Parthasarathy said that none could forget Jana's friendly approach. The other leaders from our Bank profusely greeted Com.A.K.Jana and complimented him for being the trendsetter of united movement in industry.

In his acceptance speech Com.A.K.Jana said that our great Institution i.e. Indian Bank has provided the life support to him and whatever he had achieved was due to this great Institution. He assured that the inseparable bond that he has developed with the Institution and the workforce will continue and will ever remain fresh in his memory.

Comrades, Com.A.K.Jana is not an individual. He had a great vision about the officers' movement. It will be befitting to say that he is an Institution by himself. He believed that officers' community has a larger role with its talent, resources and capabilities. It is this belief of his which found expression in arguing for an alternative banking plan to be worked out by AIBOC through experts drawn from relevant fields. It can be fairly expected that the alternate banking plan that will be released by the AIBOC will expose the ill-conceived moves of merger and acquisition of banks.

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It will be befitting to recall the words of Com.T.R.Bhatt, Joint General Secretary of AIBOC in the article written about Com.A.K.Jana in the house journal "Officers' Voice" published by the Corporation Bank Officers' Organisation.

"Having been together from 1981 in the movement (when I entered the then AICOBOO's Executive Committee), I found him to be stead fast in his conviction and passionate in his views about the ideological base for a collective movement. For many, his views sounded to be a hackneyed and fading leftist discourse with little practical relevance. But in the long run his views stand vindicated as criticisms are now increasingly heard about the failure of the new banking and economic model.

On 31st December 2004 he retired from the services. There will be a definite vacuum in the movement for, there are fewer men committed to the philosophy of an egalitarian society amongst us and in the new generation. But without such philosophy progress will be short lived and fragile. Posterity will remember Jana's contribution in providing the ideological strength to a white color community." We are very fortunate that we had Com.A.K.Jana as our leader for more than two decades. On behalf of the entire officers' community we convey our gratitude to Com.A.K.Jana who taught us to fight, suffer, endure, withstand and succeed. Com.A.K.Jana, Red solute, Com.A.K.Jana, Lal Salam. With greetings, Yours Comradely, T.T.Natarajan Secretary General

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Cir. No: AI/05/2004-2007 Date: 31.01.2005 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades, We reproduce hereunder the text of the circular issued by our National Organisation, AIBOC after the bipartite meeting held on 24.01.2005. The circular is self explanatory. On the same day a delegation of the UFBU constituents met the IBA chairman Mr.P.S.Shenoy in a deputation and urged upon him to expedite the conclusion of the settlement. The circular issued by UFBU after the meeting is also reproduced for the information of our members. We note to keep the members advised of further developments. With greetings, Yours Comradely, T.T.Natarajan Secretary General QUOTE:

TEXT OF AIBOC CIRCULAR No.5 DATED 25.01.2005 The Bipartite meeting between the Small Committee, IBA and the Officers' Organisations remained inconclusive due to certain new issues which had cropped up in course of negotiations in the area of pension scheme. Our members were advised in our earlier circular that the settlement in expected to be concluded in all probability by the end of January, 2005. However, as certain fundamental issues connected with the costing of pension as well as future payment of pension gave rise to differences between the IBA and the Unions, no finality could be reached on the other parameters as well. The Confederation team was led by Com.R.C.Agarwal, President accompanied by S/Shri.Shantha Raju, General Secretary, K.V.Acharya, Joint General Secretary, T.S.Nagaraja, Treasurer. In course of our discussions, we discussed the remaining portion of the residual issues. The Small Committee of IBA was represented by S/Shri.S.Shivasankara Babu, Shankara Narayanan, Krishna Murthy and others. During the course of our negotiations, we took up apart from the B.P, D.A, H.R.A. and CCA, the other residual issues. Tentative understandings have been reached on all the parameters subject of final decision in regard to the costing of pension. As regards pension, the issues discussed were:-

(a) The payment of pension should be on the basis of the 50% of actual pay drawn; (b) The sharing of cost on account of pension by the employees and officers continue

to be 18.25% of B.P. as was done in the last occasion;

BIPARTITE INCONCLUSIVE NEXT ROUND OF NEGOTIATIONS

IN THE MIDDLE OF FEBRUARY, 2005

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(c) The IBA should reconsider its stand in regard to the extension of one more option on pension;

The IBA representatives did not offer their response on the grounds that it has to be referred to the Management Committee for their reference. The other issues discussed thereafter were as follows:

(a) LFC/HTC with the option of enhancement of LFC on the basis of definite distance at 75% of their railway fare entitlement;

(b) The other allowances viz. hill and fuel allowances, special area allowances, deputation allowance, split duty allowance, project area allowance, the FPP quantum, closing allowance, mid-academic allowance etc.

(c) The issue of introduction of Branch Manager allowance is kept in abeyance due to cost constraints. A final position will emerge only at the time of final settlement subject to availability of funds;

(d) The IBA has rejected our demand for Stagnation Increment as also the improvement in PF to 10.5%;

(e) The other components where certain understandings were reached subject to final agreement are:-

(i) The minimum and maximum of the scales of pay; (ii) The incremental pattern; (iii) The issue of DA, HRA, CCA, PQA, Medical Allowance, Transportation

Allowance, Halting Allowance etc.

As regards the costing of pension, pay for the purpose of pension, another option on pension, the Hospitalisation charges not to be reckoned in the costing of wages etc. an exclusive meeting was held with Shri.Shenoy, the Chairman of IBA on the same evening by the representatives of the nine unions of UFBU. A detailed Circular issued in this regard is enclosed. We have restrained to furnish the full details of the actual quantum and other specifies for the reason that each and every aspect of the compensation is part of cost and hence represents the figures and quantum arrived at on various components of compensation. However, suffice to say that there will be reasonable and adequate revision of quantum on all the components of wages in the current revision. Hence, we request our colleagues to have patience for a few more days. Comrades, we have reached the final stage of negotiations. While we wish there should not be any hurdles in concluding our wage settlement by the end of February, 2005 though we endeavoured to do it by 31st January, 2005 due to the new dispute on pension issue, we have to keep our fingers crossed and be in readiness in case any action programme is warranted from our side. The next round of discussion to finalise certain loose ends of issues will be held in the first week of February and the full fledged

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meeting will be on or after 9th February. Hence, all our Affiliates/Members are requested to await further developments in the matter. UNQUOTE: QUOTE:

TEXT OF UFBU CIRCULAR DATED 24.01.2005 AFTER MEETING WITH THE IBA CHAIRMAN

In view of IBA's insistence to increase the costing for pension while allocating and distributing the 13.25% wage load to different heads, as well as to take up a few others related issues, it was decided that the UFBU should meet the IBA Chairman and express our film views to him. Accordingly, a joint letter was addressed to him from our recent Bangalore meeting held on 17.01.2005. In pursuance of this letter, today evening the delegation of UFBU constituents met the IBA Chairman Mr.P.S.Shenoy in his office in Mimbai in a deputation. We explained to him that in the last wage revision settlement, after prolonged discussion, it had been agreed that the costing of pension would be at 18.25% and that the same should be adequate for this settlement also. We also pointed out that the calculation of pension should be at 50% of the revised pay as provided in the pension settlement and not with simple merger of DA at 2288 points. We emphasized that one more option should be made available to the PF optees. We also took the opportunity to explain to him that the additional expenditure towards reimbursement of hospitalization expenses should be treated as Welfare measure and excluded from the wage revision process as recommended by the Shankar Committee. We also told him that the matters should be expedited and final settlement signed without any further delay. The IBA Chairman listened to our views patiently and agreed to discuss the matter with the IBA officials. He was also sympathetic to our demand for one more option for pension but explained that it needs to be again taken up with the government. He also wanted to expedite the settlement as early as possible. We hope that the vital issues raised by us with the IBA Chairman would be sorted out amicably and satisfactorily. Further developments in this regard will be informed to members in due courses. Sd/- Sd/- Sd/- C.H.Venkatachalam Shantharaju P.K.Patnaik General Secretary, AIBEA General Secretary, AIBOC General Secretary, NCBE Sd/- Sd/- Sd/- R.J.Sridharan S.Bardhan Subhash S Sawant General Secretary, AIBOA General Secretary, BEFI General Secretary, INBEF Sd/- Sd/- Sd/- K.K.Nair K.R.Poonja Bapu Joshi General Secretary, INBOC General Secretary, NOBW General Secretary, NOBO UNQUOTE:

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Cir. No: AI/06/2004-2007 Date: 25.02.2005 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades, We reproduce hereunder the text of UFBU Circular dated 23rd February, 2005 on Wage Revisions Talks held on 23.02.2005 for the information of our Members. Further developments in this regard will be informed as soon as we hear from our Apex Body. With greetings, Yours Comradely, T.T.Natarajan Secretary General QUOTE: TEXT OF UFBU CIRCULAR DATED 23.02.2005 Units and Members are aware that from the UFBU meeting held last month in Bangalore, we had raised certain common issues relating to pension etc. Following up these decisions, a delegation of UFBU met the IBA Chairman at Mumbai on 24.01.2005 and submitted the issues to him. Subsequently there was no response from the IBA on these matters. Hence upon our taking up the matter, an exclusive meeting was held today between IBA and UFBU to discuss these issues. The IBA was represented by Sri.V.P.Shetty, Chairman and other members of the Negotiating Committee. All the Constituents of the UFBU met are represented from our side. On behalf of the UFBU we explained our demands as under:

1. Payment of pension should be calculated at 50% of the actual Basic Pay as provided in the pension agreement;

2. Cost of Pension should be accounted for in the same manner as was done in the last wage revision agreement;

3. One more option for pension should be made available to the employees/officers; 4. Cost of hospitalization reimbursement expenses should be kept out of the wage

revision cost. From the IBA, reacting to our demands, IBA suggested certain alternative proposals on pension. After preliminary discussions on these proposals, it was

WAGE REVISION TALKS

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agreed that IBA would work out and submit the details to the UFBU after which the same would be discussed along with our proposals. On one more option for pension, IBA said that they have an open mind on any alternative viable proposal and we have decided to discuss the same further to submit such proposals. On hospitalization expenses, IBA while regretting to agree with our demand to exclude the same, agreed to sort out the matter by mutual discussion. In view of this development, further discussions will continue and the next round of meeting will be fixed up shortly. To our suggestion to expedite the conclusion of the settlement, IBA said that they would also endeavour the same. With greetings,

Yours Comradely, Sd/- Sd/- Sd/- C.H.Venkatachalam Shantharaju P.K.Patnaik General Secretary, AIBEA General Secretary, AIBOC General Secretary, NCBE Sd/- Sd/- Sd/- R.J.Sridharan S.Bardhan Subhash S Sawant General Secretary, AIBOA General Secretary, BEFI General Secretary, INBEF Sd/- Sd/- Sd/- K.K.Nair K.R.Poonja Bapu Joshi General Secretary, INBOC General Secretary, NOBW General Secretary, NOBO

UNQUOTE:

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Cir. No: AI/07/2004-2007 Date: 03.03.2005 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades, United Forum of Bank Unions, in its meeting held on 23.02.2005 had chalked out agitational programmes opposing the moves of the Government on Merger and Acquisition of banks. The text of the circular and the strike notice served on behalf of UFBU is reproduced for the information of our members. We request all our members to actively participate in all agitational programmes including the strike on 22.03.2005 and make it a grand success. With greetings, Yours Comradely, T.T.Natarajan Secretary General QUOTE: TEXT OF UFBU CIRCULAR No.5 DATED 25.02.2005 The representatives of UFBU met at Mumbai on 23.02.2005 to chalk out detailed programmes opposing the initiatives of the Government in regard to merger and acquisition of Banks, encouragement to Foreign Banks/Institutions enabling them to take over Indian Banks through permission to acquire equity upto 74% etc. During the course of discussions, the members made the following points: a) The decision of UFBU meeting at Bangalore to go ahead with the opposition in

regard to the initiatives of the government on merger and acquisition programme, though it had sent a strong signal to the Government, the Ministry of Finance is initiating several steps which provide indirect encouragement for Bank Chiefs to come out with appropriate proposals for merger and acquisition.

b) The recent decision of the Ministry of Finance in the name of autonomy to allow discretion to acquire, undertake new business such as Insurance, Mutual Fund, etc. are further steps towards indirect Privatisation/Merger/Acquisition;

c) The recent initiative of the Government to allow Foreign Banks/Institutions/Investors to acquire equity in Private Sector Banks is nothing but blatant attempt to hand over the Indian Banks to Foreigners.

In this backdrop, the meeting has unanimously decided to observe one-day All India Strike by the entire banking industry. The strike issues are:

COUNTRY-WIDE BANK STRIKE ON 22.03.2005

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I. To oppose merger and acquisition of Public Sector Banks. II. To oppose Foreign Banks/Institutions/Investors taking over Indian Banks.

The details of the programme are as follows:

1. 10.03.2005 : Centralised demonstrations at all Towns/District Headquarters/

State Capitals, etc. 2. 16.03.2005 : Centralised Rally at all State Capitals by the members of

UFBU-other than Delhi. 3. 18.03.2005 : Mass Rally and Morcha to Parliament, New Delhi, by all

the principal office-bearers of the Constituents of UFBU with members of local chapters of UFBU.

4. 22.03.2005 : Country-wide one-day protest strike. The UFBU has served a Strike Notice on the Indian Bank's Association with copy to all authorities concerned. Hence, it is not required by the constituents of UFBU to issue separate strike notice on their managements. A copy of notice is enclosed.

Comrades, this is a common struggle to defend the Banking Sector from being handed over to multinationals and the Foreignisation of Banks. The UFBU therefore calls upon all its constituents and its members to

participate in the strike. The strike call is extended to all members working in Public Sector, Private

Sector, RRBs, Co-operative as well as Foreign Banks. Constituents are advised to step-up their mobilization activities and gear up their organisational machinery at all levels to make the agitation programme including the strike on 22.03.2005 a thundering success. With greetings, Sd/- Shantharaju, Convener.

NOTICE OF STRIKE On behalf of all the Employees' Unions and Officers' Associations in the Banking Industry, we hereby give you notice that the Employees and Officers working in all the Public Sector, Private Sector, Regional Rural banks, Cooperative Banks and Foreign Banks will be observing a day's country-wide strike on 22nd March 2005, to voice their protest against:

a) Merger and Acquisition of Public Sector Banks; b) Foreign Banks/Institutions/Investors taking over Indian Banks.

The facts of the case are set out in the Annexure.

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Thanking you, Sd/- Shantharaju, Convener.

STATEMENT OF THE CASE The United Forum of Bank Unions (UFBU) is an apex body of the entire working class in the Banking Industry. Its Constituents numbering 9 consist of all the 5 Employee's Organisations and 4 Officers' Organisations in the Banking Industry. It is the only coordinating body for Employees and Officers in the Banking Industry. Apart from improvements in service conditions, the UFBU has also been voicing its views concerning the common man in general and the Nation in particular. It has been opposing the economic reforms initiated by the Government at the dictates of IMF/World Bank right from the beginning. It has continuously campaigned against Liberalisatin, Globalisatin and Privatisation of the Banking Industry as they are not the only panacea for the so-called ills of the Banking Industry. But the facts speak for themselves. The Public Sector Banks have acquitted themselves commendably well in branch expansion and priority lendings. Over the last couple of years, they have been making profits after meeting the statutory requirements, Capital Adequacy Norms, Reduction of NPAs etc. They are well prepared to meet even the stringent Basel-II Norms well within the prescribed time frame. As part of its sacred duty, UFBU has been opposing the Government's move to encourage acquisition and merger of Public Sector Banks as it will (i) harm the socio-economic developmental responsibilities all over the country undertaken by Public Sector Banks; (ii) Credit deposit ratio will get adversely affected; (iii) the priority lendings will suffer a serious setback; (iv) the resources mobilized will not be available for the benefit of locals; (v) the bank branches will get reduced due to so called 'Viability' thereby denying the banking facilities to common man and (vi) will result in drastic reduction of employment opportunities. Already the bank branches are groaning under acute shortage of man-power due to mass exodus on account of VRS introduced in 2000. The proposed 'merger mania' and 'acquisition syndrome' will further cripple the job and career opportunities of the staff at all levels. The encouragement to Foreign Banks/Institutions will enable them to take over the Private Sector through FDIs and is a dangerous signal. The banking is a sensitive sector. The handing over of the sector to multinationals is against the interest of our country. The UFBU therefore strongly opposes the take over of Private Sector Banks by Foreign Banks/ Institutions/Investors. In the grab of autonomy, lot of encouragement is being offered to Foreign Banks to make inroads into the Indian Banking arena and extend their tentacles. The Government's covert and overt moves to grant autonomy to Banks in the matter of Insurance, Mutual Fund etc. are blatant invitations to Foreign banks to enter the fray and acquire controlling interests slowly and steadily. While the Public Sector Banks were created with the

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avowed social objects of common good of the Nation, the Foreign banks will have no such objective to boast about as 'profit' will be their one and only concern. The Working Class in the Banking Industry, their Unions/Associations and the UFBU as a major stake holders have a great concern over the well being of the common man as the national interests are our prime concern. Hence the strike to focus the attention of the Government and the concerned authorities to the stark realities of the present banking scenario and make amends before it is too late. Sd/- Shantharaju, Convener.

UNQUOTE:

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MOVE TO INCREASE THE FDI FROM 49% TO 74% IN PRIVATE BANKS The Finance Ministry appears to be very keen on raising the current limit of Foreign holding in the capital of Private Banks from 49% to 74%. The move is a very dangerous move as we have the experience of East India Company entering the country on the plea of setting up a trading office in Surat which later emerged as a financial power and later as a political power. Forewarning against such dangers Com.T.R.Bhat, Joint General Secretary, AIBOC has come out with a detailed article against the ill-advised move of increasing the FDI limits in Private Banks. He had made a clear case as to why the move should be opposed. We reproduce the article for the benefit of our members so that they can have a clear view about the issue.

With greetings,

Yours Comradely, T.T.Natarajan Secretary General

About 400 years ago, Sir Thomas Roe presenting his credentials before the Moghul emperor, Jahangir sought permission for the East India Company to start its trading operations at the port town of Surat in Gujarath. What happened thereafter, the company’s entry as a trader, its growth as a giant commercial organisation and later its attainment of political power and finally emergence of India as a colony of the British Queen in 1857 are historical facts known to every student of Indian history. Are we now recreating that history? The chorus of demand from the foreign investors and foreign banks to liberalize the Banking Sector further and allow foreign direct investment up to 74% of the capital of Banks and the Finance Minster’s very positive response on the demand portend the direction the economy will take in the not distant future.

THE REASONS ADVANCED FOR HIGHER CEILING ON FDI ARE THE FOLLOWING:

Indian Banks by themselves will not be able to raise huge capital required to meet international standards of capital adequacy.

Technology upgradation requires large resources, which the domestic banks will not be able to generate.

Foreign investors will also bring better skills and help manage the banks better than their domestic counterparts.

The arguments do not carry much conviction as can be seen from the following facts. THE FACTS ARE CONTRARY: - Efficient domestic banks have been able to augment capital through reserve build up, Public issues and tier II capital. Where they could not go to the capital market, the regulator and the Central Government were responsible for such failure. For example, the purchase of substantial

A RED CARPET TO EAST INDIA COMPANY

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shares in Catholic Syrian Bank (CSB) of Kerala by an NRI was not cleared by the FIPB for a long time in the late nineties. RBI also kept quite. CSB could not go to the capital market for want of such clearance. The Bank was at a dangerously low level of capital adequacy. The old generation private banks like Karur Vysya Bank, Federal Bank, Karnataka Bank and City Union Bank have been accessing the capital market to raise capital. They have been able to maintain required levels of capital. Where the Bank was poorly managed the rights issue necessitated artificial support and some one would be asked to bail out. (Dhanlakshmi Bank’s rights issue flopped in 2002; a director stepped in to take up huge unsubscribed portion of the issue.)

Further, technology up-gradation is a continuous process. It requires huge investments. The expenditure, however, always depends on the size of the operation. Larger the size, greater will be the expenditure in absolute terms. Ironically some of the bigger banks are yet to fully computerise whereas small efficiently managed banks both in public and the private sector have constantly been upgrading their technology. Therefore, for technology upgradation, the domestic banks should be able to generate resources commensurate with their operations without recourse to the foreign investors.

It is presumed that the FDI, skills will automatically be injected into the banking sector. Our skills are comparable to the best in the world. There is no level playing field for the domestic banks; they are required to comply with the RBI guidelines and the Government instructions on the flow of credit, on support to special schemes and many other matters of internal management. All these restrict their operational and managerial freedom. Yet progressively Indian Banks have turned out better and better performance. There has been constant upgradation of skills. These skills are acquired internally and adopted to day-to-day working. In contrast much of the internal work in the new banks and foreign banks is outsourced. This could hardly be method of skill improvement.

DANGERS OF FDI: -

FDI in banks is a step in then direction of replacement of Indian Management by foreign management. In other words, they become foreign banks. The demand to allow free entry is triggered by the potential available in the Indian financial market. There is an inherent danger of free exit also when the market ceases to be attractive enough to sustain the earnings. In that eventuality the Bank will witness instability in management.

PERFORMANCE OF THE FOREIGN BANKS OPERATING IN INDIA: -

In the early 1990s, with more liberalised licensing RBI had issued licenses to many foreign banks. Mention could be made of Dresdener Bank, Commerzbank, Toronto Dominion Bank, Cho Hung Bank, Bank International Indonesia, Korea Commercial Bank, and Bank of Tokyo-Mitsubishi. The last named folded up its Kolkatta office unannounced some time ago attracting serious public criticism. The rest of them are hardly ever noticed. Even when licenses were issued so liberally the foreign banks did not contribute any thing to the banking business in the country.

In the matter of clientele base foreign banks operating in India today cater to urban and metropolitan customers of high income and wealth. These banks are not accessible to the traditional small savers and households. That kind of service is provided by Indian Public Sector Banks and the old generation private sector banks. Even in providing loans the foreign banks target only high net worth individuals whereas the Indian Banks meets the needs of small borrowers.

With the planned opening up of the banking sector for takeover by the foreign banks the profile of the Indian banks is certain to undergo a drastic change.

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POTENTIAL TO TRANSMIT SHOCKS AND INDULGE IN MALPRACTICES: -

Experience of many developing countries has shown that liberalising the domestic financial sector for entry of foreign institutions brings with it greater risks. The World Development Report, 1999-2000 of the World Bank warns that if the financial sector is poorly managed the entry can result in financial instability. It records that between 1977 and 1995, 69 countries faced banking crisis so severe that most of their capital was exhausted. While appreciating the gains a country may make from such entry in the form of skill up-gradation and competition, the report cautions that crisis in the originating country can affect the business in host country. In another study published by the World Bank in 2003. (World Bank Research Observer, Vol.18.No.1) this risk is further corroborated. The authors of the study, George Clarke and others confirm that foreign banks have the potential to transmit the shock from their home countries. The study also points out that the foreign banks are oriented to large borrowers and conclude that they shy away from small and medium enterprises.

FOREIGN BANKS KNOWN TO BE UNETHICAL: -

Many multinational banks are known for their sharp practices working against the host country. The world’s largest financial service provider viz., Citi group was on 17th September 2004, asked to close its private banking operations in Japan by that country’s regulator, Financial Services Agency (FSA) for violating banking laws. It is instructive to read what Douglas Peterson, head of the Bank’s Japanese operations said before the parliamentary financial affairs committee on 30th November which was probing the scandal: "there was an aggressive sales culture whereby attention was not paid to the rules, even if those involved knew what the rules were. We acknowledge there was a fundamental flaw in our organisation involving a weak culture of compliance and internal controls". (Reported in Business Standard, 1st December 2004). The bank was also prohibited from participating in auctions of Japanese Government bonds because of the penalty imposed by FSA. As per a report in Financial Times the actions followed, what the FSA said, “was a series of violations including misleading customers and failing to prevent suspected money laundering. According to FSA profits, were given undue importance by the bank headquarters; to generate this. Citi constructed a law evading sales system that disregards laws and regulation of Japan”. This action is now followed by a decision of the FSA in South Korea to probe Citibank’s Korean operations. It would investigate foreign exchange deals and suspected money-laundering operations. Earlier too, Citigroup has been facing mounting regulatory and legal problems.

In May 2004 it settled a lawsuit brought by WorldCom investors for $2.9 billion. It also set aside $ 5.2 billion to cover legal action related to the role in another financial scandals. More recently the group was forced to apologize for a huge trade in European Government bonds that disrupted the electronic market and angered the European Government officials concerned about the effect on liquidity. Chuk Prince, the Chief of the group apologized and promised action. (Report in Business Standard, 21st October 2004).

In case of the bankrupt Italian diary giant, Parmalat, the company’s administrator Enrico Bondi, had sued Citigroup in New Jersey for $ 10 billion in damages for exploiting Parmalat’s financial position.

Nearer home, in the 1992, Harshad Mehta scam, Grindalys Bank was one of the biggest culprits. In the stock market scam of 2001 involving Ketan Parekh, Citibank and Stanchart were among the biggest players having lent about Rs.760 crores and Rs.640 crones respectively for share market operations in violation of RBI’s guidelines. In the stamp paper scam involving Abdul Karim Telgi, Citibank was pulled up by RBI for violating its guidelines on Know Your Customer and asked to pay a penalty of Rs.5 lakhs.

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Citibank is known to indulge in unfair trade practice. In March 2001,MRTPC had upheld a charge of unfair trade practice against the bank. The complainant before the MRTPC had raised a loan of Rs.135460 from the bank to finance a Maruti Gypsy. The loan was repayable in 60 EMIs commencing from March 1991, to February 1996 for which post dated cheques were given to the bank. He paid EMI till June and by cash from July to September1993. Thereafter he defaulted. The bank sent a legal notice in December 1993. In the mean time the vehicle was seized on December 22,1993 before the expiry of the extended time by adopting deceptive methods. On a complaint the MRTPC upheld the complaint that the bank was indulging in unfair practice. (Hindu Business Line, 15th March 2001.) According to another report (The Economic Times , 26th March 2002) income tax department had found that Citibank had suppressed its income generated from the deposits of Grasim Industries Ltd. under PMS. Income tax department made a demand of Rs.40 crores on the bank which was challenged by the bank in Bombay High Court. The court upheld the decision of IT department on the ground that the bank had failed to disclose the primary facts about the profit generated through managing Grasim deposits.

The noted columnist and consumer rights activist Sucheta Dalal writing in her regular column wrote in November 2004;”there is a growing incidence of customer harassment by high profile foreign and private banks that is caused by new technology and systems that discourage grievance redressal.” She writes that several consumers on a yahoo group (consumer Voice) report that citibank recently billed them a security fee for the possibility of having to protect them against the misuse of a lost card, during the period between discovering the loss and reporting it to citibank. It reluctantly reserved the charges for those agitated customers who protested. What about the others, she asks? (Financial Express, 8th November 2004)

MOVE NOT IN THE INTEREST OF THE ECONOMY: -

That FDI will enable the banks to face global competition is only a cover to open up the Indian Banking Industry to the vicissitudes of big money. They will make the bank vulnerable to international financial crisis. While reforms are needed, giving banks over to multinational finance companies is hardly in the interest of the society from which the Indian Banks have been drawing their sustenance and for whom they have been providing the financial support. In respect of the safety of depositors’ money one leading financial newspaper feels that the foreign bank’s liability will be restricted to just its equity in the bank it has taken over, because of the limited liability laws. Depositors in the bank once again get left in the cold, putting pressure on the Government to come to the rescue as it had in the case of the GTB. The paper asks, why should Indian Taxpayers’ funds be used to provide a cushion to foreign banks? (Business Standard.4th January 2005).

FOREIGN BANKS MORE FREE IN INDIA THAN INDIAN BANKS ABROAD: -

It is the view of the Indian Banks and the RBI that foreign banks in India enjoyed greater freedom and operational flexibility in the country as opposed to Indian Banks setting up shops overseas. There are bottlenecks in the foreign countries. (Business Standard, 10th, January 2005). They are not only more free in India bur many of them have scant respect for Indian law and regulations as illustrated in the Citibank case and Bank of Tokyo-Mitsubishi Ltd. Case.

CONCENTRATION OF CONTROL BY FII: -

The Reserve Bank of India in a recent note to the finance Ministry says that a recent OECD data showed that about 60% of the cross border capital flows was accounted for by tax shelters and their banking transactions and identities were getting difficult to establish. This causes concern about the type of FDI / FII flows to sensitive sectors like banking opines RBI. It is in favour of some safeguards to avoid concentration of control over Indian Banks by FII / FDI investments. If

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the current restrictions on voting rights are also removed there are possibilities of close nexus among industrial houses to gain full control over the banks, RBI had warned. (Financial Express, 10th December 2004.)

EMPLOYEES’ VIEW: -

Employees of banks both in public and private sector are generally opposed to the entry of FII / FDI in banks. This is, among others, due to a perception that FIIs are fair weather friends. They invest in India when the profits are high and when they see uncertainty they may withdraw from the scene. This approach is not conducive to economic development. There could be instability in the financial sector. When profit maximisation is the goal the focus shifts to avenues that bring more and quicker returns. After the Vysya Bank Ltd., was taken over by ING Insurance the primary focus is on insurance now. Over the recent years ICICI Bank (which is no more owned by the Indians) has shifted its focus on short term commercial lending and there is a marked consumerist thrust through personal loans and credit cards.

FINANCIAL SECTOR, CRITICAL TO THE ECONOMY: -

The financial sector is critical to the economy as it commands huge resources in terms of the domestic savings and investment. When the control on the financial resources is with foreign investors and banks, the power can be expanded to cover many more areas like the East India Company did centuries ago. We, therefore, need to understand the dangers of allowing FDI in banks clearly.

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COUNTRY-WIDE STRIKE ON 22.03.2005 – A GRAND SUCCESS

Cir. No: AI/09/2004-2007 Date: 30.03.2005 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades, The Banking Industry was brought to a grinding halt on 22.03.2005 as the officers and employees of the banking industry observed total strike protesting the moves of the Government in regard to Merger and Acquisition of Banks and encouragement to Foreign Banks/Institutions enabling them to take over Indian Banks by allowing to acquire equity upto 74%. United Forum of Bank Unions has profusely congratulated the comrades and has called upon them to be in readiness to face any onslaught in future to protect the Banking Industry. The test of the UFBU circular No.10 dated 22.03.2005 is reproduced for the information of our members. With greetings, Yours Comradely, T.T.Natarajan Secretary General QUOTE: Text of UFBU Circular No.10 dated 22.03.2005

CONGRATULATIONS - STRIKE IS A GRAND SUCCESS GREATER STRUGGLES ARE AHEAD OF US

MAINTAIN UNITY AND SOLIDARITY Congratulations to all our comrades throughout the country for their excellent display of solidarity and unity in sending a strong signal to the Government on our opposition to:

a) Merger and acquisition of Public Sector Banks; b) Foreign Banks/Institutions/Individuals taking over Private Banks;

The issue has received a wider focus throughout the country. The media world over apart from domestic, is watching the agitation launched by UFBU in defence of the economic sovereignty of the country. The reports reaching here indicate that the strike participation is 100% allover the country. The UFBU local chapters in State/District/Taluk Headquarters have held rallies and demonstrations in support of the call given by UFBU.

…….2 The strike is unprecedented. The participation from Private Sector/Regional Rural Banks and Co-operative and Foreign Banks drew the attention of the public allover the country.

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The UFBU has already campaigned throughout the country against the ill effects of the Government moves. The press and electronic media have given a factual account of the agitation. The UFBU has received support from all political parties who are interested in protecting the common masses of the country. Comrades, the pressure is building inside and outside the Government. We have the experience of the Latin American countries, which had blindly opened up their Financial Sector and suffered subsequently. The South East Asian Countries are the recent classic examples. We need to learn from these experiences. We cannot blindly follow the dictates of the Global Operators. The UFBU demands immediate corrective measures to avoid further escalation of agitation in the banking industry. The unions strongly feel that the proposed move is against the interest of the country. The resources mobilized domestically should be utilized for the welfare of the common man of the country. The handing over of the private banks to foreign operators will affect the economic development of the country since the priority lending as well as the credit deposit ratio are bound to be affected. The branch net-work as well as the rural branches are sought to be closed on the grounds of viability. A large number of employees and officers will be rendered surplus through the so-called merger and acquisition amongst public sector banks. The Public Sector Banks have acquitted themselves exceedingly well during the last few years. The Banks have met Basel-II norms. They have cleaned up their balance sheets and are not so large in number when compared to western countries. Hence, the question of reducing the number of banks to manageable level and creating a large base is totally misleading. We are determined to stop the moves of the Government. The strike on 22.03.2005 is just a beginning. If the Government pursues its efforts in the matter of merger and acquisition as well as encouragement to FDI to hand over the Private Sector Banks to others, the UFBU will be compelled to intensify the agitation in the coming days. Comrades, the UFBU is fully geared up to meet the future challenges. All our Constituents/Comrades should therefore be in readiness to fight this onslaught and protect the banking industry for the good of the common man. With greetings, Sd/- Shantharaju Convenor

UNQUOTE

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SCALE PROMOTION RESULTS RELEASED – CONGRATULATIONS TO THE WINNERS

Cir. No: AI/10/2004-2007 Date: 01.04.2005

TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

The last promotion process took place in the year 2000. Though the process was conducted in 2000, the cut off date for eligibility to appear in the promotion process was 31.12.1998 and as such there was virtually a drought on promotions for the past 6 years. In the above backdrop the signing of the promotion policy on 26.10.2004 has created lot of expectations among the aspirants. The written test for promotion from Scale I to II, Scale II to III and Scale III to IV was held on 19.12.2004. The interviews were conducted during the last week of February 2005 and the first week of March 2005. In all more than 4000 candidates participated in the interview. The eagerly awaited results were declared on 30.03.2005 promoting 1280 officers from Scale I to Scale II, 629 officers from Scale II to Scale III and 120 officers from Scale III to Scale IV. Thus a gigantic task was completed in a record time.

We profusely thank our Chairman & Managing Director Shri.M.B.N.Rao for making this task possible and for promoting the officers in a large scale. We place on record our gratitude to the Executive Director Shri.B.Sambamurthy for the support extended that has facilitated the smooth completion of the promotion process.

Our special thanks goes to Shri.T.Valliappan, General Manager (P & HR) and Shri.A.K.Dhar, Deputy General Manager (Personnel) and the entire team of officers in the Personnel Department who burnt the midnight oil for facilitating the entire process and ensuring the early declaration of results.

While we wholeheartedly congratulate the members who are promoted, we are also conscious of the fact that there were some losers. In any promotion process the number of vacancies restricts the number of successful candidates and hence non-selection does not cast a shadow on the quality and competence of the unlucky aspirants. We wish that they should go by the adage "No one is a failure until they have given up trying". We wish them Good Luck in the future endeavours.

With greetings,

Yours Comradely, T.T.Natarajan Secretary General

Note: We are receiving anxious enquiries from the specialist officers about their promotions. They express a feeling of left out as all other promotions have taken place. We assure them that we are actively pursuing the matter and shortly the specialist promotion policy will be put in place which will be followed by the promotions.

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The much awaited salary revision settlement was signed today. We profusely congratulate each and every comrade for showing the patience and faith in the organization without which the settlement would not have been a reality today. We furnish below the text of AIBOC Circular No.33 of date for the information of our members. With greetings, Yours Comradely, T.T.NATARAJAN Secretary General. Quote:

Text of AIBOC circular No.33 dated 02.06.2005

HISTORIC SETTLEMENT REACHED: CONGRATULATIONS TO ALL COMRADES AIBOC CREATES SEVERAL MILE STONES

The signing of the agreement on 02-06-2005 by the representatives of the Confederation and Indian Banks‘ association has drawn the curtain to the long awaited salary revision exercise for the Bank Officers. The agreement is a historic one. The long waiting, patience, perseverance and commitment of the rank and file has ensured one of the best settlements we have reached so far at the industry level. The success is that of the rank and file. We congratulate them and applaud them for the tremendous maturity and patience shown by them in reaching the final settlement. The agreement is historic and significant on several counts. The major ones are:-

(1) The percentage increase at 13.25% is the highest so far. (2) The Officers in the Banking Industry could not get the same date of effect as

that of the workmen in the last revisions. This is the first time the date of effect is from the date of expiry of the earlier agreement, i..e. 01-11-2002;

(3) The removal of anomaly in the matter of Dearness Allowance and neutralization of 100% of D.A. for Officers and Employees;

(4) The correction of Pension aberration and achievement of 50% of last drawn pay as pension payable to employees retired w.e.f. 1-4-1998 and future retirees; Introduction of encashment of LFC facility;

SALARY REVISION SETTLEMENT REACHED – CONGRATULATIONS TO ALL COMRADES

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(5) Revision of all allowances and their improvement including the issue of Halting Allowance, etc.;

(6) Assurance from IBA for continuation of bipartite negotiations on extension of pension to PF optees;

(7) Improvement in Hospitalisation charges which remained unchanged during the last settlement.

There are several other areas which have ensured a fair deal to the Officers‘ Community.

Comrades, the Confederation has once again emerged as a clear winner in the race. It has ensured that the officers who were deprived of certain benefits, particularly D.A. neutralization as also the date of effect have been taken care of fully. The Confederation has also succeeded in ensuring higher merger of Index and the revision of all allowances.

We enclose the details of the settlement for the information of all our comrades.

Comrades, let us rededicate ourselves on this historic occasion to the cause of the Officers‘ Movement, to protect and strengthen it through our constructive participation in all the activities of the Confederation to defend the interests of the working class of our country. On the eve of our completion of 2 decades of service, we look forward to the whole-hearted support of all our officers and comrades in all our future struggles.

With greetings, Sd/- ( SHANTHA RAJU ) GENERAL SECRETARY

ENCL:

Unquote:

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SALIENT FEATURES OF SALARY REVISION FOR OFFICERS

(1) Scales of Pay (W.e.f.: 01/11/2002) Scale -I = 10000-470/6-12820-500/3-14320-560/7-18240 Scale -II = 13820-500/1-14320-560/10-19920 Scale -III = 18240-560/5-21040-620/2-22280 Scale -IV = 20480-560/1-21040-620/5-24140 Scale -V = 24140-620/4-26620 Scale -VI = 26620-680/4-29340 Scale -VII = 29340-680/2-30700-900/1-31600-1000/1-32600 Fitment: Fitment shall be stage-to-stage, i.e., on corresponding stages from 1st stage onwards and the increments shall fall on the anniversary date as usual. 2) Dearness Allowance: (a) For the period from 01-11-2002 to 31-1-2005: For every rise or fall of 4 points over 2288 points in the quarterly average of the All India Average Working Class Consumer Price Index(General) Base 1960=100 at the following rates:- (i) 0.18% of ‘pay’ upto Rs.9,650/- plus (ii) 0.15% of ‘pay’ above Rs.9,650/- and upto Rs.15,350/- plus (iii) 0.09% of ‘pay’ above Rs.15,350/- and upto Rs.16,350/-plus (iv) 0.04% of ‘pay’ above Rs.16,350/- (b) On and from 1st February, 2005 : Dearness Allowance shall be payable for every rise or fall of 4 points over 2288 points in the quarterly average of the All India Average Working Class Consumer Price Index (General) Base 1960=100: at 0.18% of pay. 3) House Rent Allowance: (w.e.f. 01/11/2002) ——————————————————————————————————————————— I II ——————————————————————————————————————————— (i) Major “A” Class Cities and Project Area Centres in Group ‘A’ 8.5% of Pay (ii) Other places in Area I and Project Area Centres in Group ‘B’ 7.5% of Pay (iii) Other places 6.5% of Pay ——————————————————————————————————————————— Provided that if an officer produces a rent receipt, the House Rent Allowance payable to him/her shall be the actual rent paid by him/her for the residential accommodation in excess over 1.75% of pay in the first stage of the Scale of Pay in which he/she is placed with a maximum of 150% of the House Rent Allowance payable as per aforesaid rates mentioned in Column-II above.

Note:

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The claims of officer employees for House Rent Allowance linked to the cost of their ownership accommodation shall also be restricted to 150% of House Rent Allowance as hitherto.

4) City Compensatory Allowance: (W.e.f 01-11-2002) —————————————————————————————————— Area Rate Maximum Amount —————————————————————————————————— i) Places in Area 1 and 4% of Rs.540/- In the State of Goa Basic Pay

ii) Places with population of 3% of Rs.375/- 5 lakhs and over and State Basic Pay Capitals and Chandigarh, Pondicherry and Port Blair —————————————————————————————————— 5) Provident Fund (w.e.f 01-11-2002)

10% of Pay

6) Pension (other than State Bank of India) In respect of an officer, other than the officer in SBI, who is a member of the Pension Fund, who retires or dies while in service or other wise ceases to be in employment on or after the 1st of May 2005, “Pay” for the purpose of pension shall be the pay last drawn by the officer employee prior to his retirement/death. Pending necessary amendment to be made to the relevant provisions of the bank (employees) Pension Regulations, 1995 officers retiring or dying while in service on or after 1st May‘ 2005 shall be granted provisional pension having regard to the above provisions. Note (1) The Bank (employees) Pension Regulations, 1995 does not apply to the officers of SBI. (2) “Pay” for the purpose of Provident Fund/Pension shall mean Basic Pay including Stagnation Increment, Professional Qualification pay, Increment component of Fixed Personal pay and Officiating Allowance.

7) Medical Aid: On and from 1st February, 2004, reimbursement of medical expenses shall be as under: (a) Officers in JMG & MMG Scales - Rs.3,750/-p.a (b) Officers in SMG & TEG Scales - Rs.5,000/- p.a. Note: For the year 2004, the reimbursement of medical expenses under the medical aid scheme shall be enhanced proportionately for 11 months, i.e., February, 2004 to December,2004.

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8) Hospitalisation Expenses: On and from 1st May, 2005, reimbursement of hospitalisation expenses under Regulation 24(1)(b)(i) of Officers’ Service Regulations, 1979/1982, shall be in terms of the Hospitalisation Scheme laid down under Bipartite Settlement dated 2.6.2005 for workmen employees, subject to following limits: —————————————————————————————————— Scale of Officer Limits —————————————————————————————————— (a) Junior Management Grade Scale-I i. Bed charges and Middle Management Grade Self - Rs.600/- per day Scales II & III Family - Rs.450/- per day ii. Other charges

At the scale 125% of limits laid down under the Hospitalisation

Scheme applicable to workmen employees (b) Senior Management Grade Scales i. Bed Charges IV & V and Top Executive Grade Self - Rs.800/- per day. Scales VI & VII. Family - Rs.600/- per day ii. Other charges

At the scale of 150% of the limits laid down under the Hospitalisation

Scheme applicable to workmen Employees. ———————————————————————————————————————————— 9. Recovery of House/Furniture Rent: (w.e.f: 1-11-2002) i. House rent recovery shall be @ 1.75% of the first stage of the scale of pay in which the officer is placed or the standard rent for the accommodation, whichever is less. ii. Furniture rent recovery shall be @ 0.40% of the first stage of the scale of pay in which the officer is placed. 10. Fixed Personal Pay: On and from 1st November, 2004. Fixed Personal Pay together with House Rent Allowance shall be at the following rates and shall remain frozen for the entire period of service. ———————————————————————————————————————————— Increment Component DA as on 01-11-2002 Total FPP payable where

bank’s accommodation is provided ————————————————————————————————————————————

(A) (B) (C) Rs. Rs. Rs. —————————————————————————————————— 560 23 583 —————————————————————————————————— 620 25 645 —————————————————————————————————— 680 28 708 —————————————————————————————————— 1000 41 1041 ——————————————————————————————————

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Note: (i) FPP as indicated in “C” above shall be payable to those officer employees who are provided with bank’s accommodation.

(ii) FPP for officers eligible for House Rent Allowance shall be “A” + “B” plus House Rent Allowance drawn by the officer employees concerned when the last increment of the relevant scale of pay as specified in sub-regulation (ii) of Regulation 4 is earned.

(iii) The increment component of F.P.P. shall rank for superannuation benefits.

11. Professional Qualification Pay: (W.e.f. 01/11/2002) Officers shall be eligible for professional qualification pay as under:

i) Those who have passed CAIIB - Part-I/JAIIB : Rs.300/- p.m. after one year on reaching top of the scale.

ii) Those who have passed both parts of CAIIB- a) Rs.300/- p.m. one year after reaching top of the scale. b) Rs.750/- p.m. two years after reaching top of the scale.

An officer employee acquiring JAIIB/CAIIB (either or both the parts) qualifications after reaching the maximum scale of pay, shall be granted from the date of acquiring such qualification the first instalment of PQP & the release of subsequent instalments of PQP shall be with reference to the date of release of first instalment of PQP.

Provided further that in a case where an officer as on the date of this Joint Note, has already acquired any of the above said qualifications and has not earned any increment or PQP on account of acquiring such qualifications, he may be, w.e.f. 1st Nov 2002 or the date of acquiring such qualification/s, whichever is later, released PQP as provided hereinabove.

12. Other Allowances:

i) Deputation Allowance. (W.e.f. 1.6.2005)

Deputation Allowance shall be at the following rates:

a) An officer deputed to serve outside the bank - 7.75% of pay with maximum of Rs. 1,500/- p.m.

b) An officer deputed to an organisation at the same place or to the training establishment of the bank - 4% of Pay with a maximum of Rs.750/-p.m.

ii) Hill and Fuel Allowance: (W.e.f. 01/11/2002) ----------------------------------------------------------------------------------------------------------------- Place Rate -----------------------------------------------------------------------------------------------------------------

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a) Places with an altitude of 1000 Metres and above 2% of Pay subject to a but less than 1500 metres and Mercara Town. maximum of Rs. 400/- p.m.

b) Places with an altitude of 1500 metres 2.5% of Pay subject to a and above but less than 3000 metres. maximum of Rs. 500/- p.m.

c) Places with an altitude of 3000 metrres and above. 5% of Pay subject to a maximum of Rs. 1150/- p.m.

-----------------------------------------------------------------------------------------------------------------

iii) Halting Allowance: (w.e.f. 01/6/2005) ————————————————————————————————————————————— Grade/Scales of Officers Major ‘A’ class cities Area-I Other places Officers in Scale IV and above Rs. 600/-* Rs. 550/- Rs.500/-

Officers in Scale I/II/III Rs.550/- Rs.500/- Rs.400/- ————————————————————————————————————————————— Provided that in case of officers in Scale IV and above, Halting Allowance payable per diem while on outstation work at the 4 Metros viz Delhi, Kolkata,Chennai & Mumbai : Rs. 700

iv) Special Area Allowance: (W.e.f. 01/11/2002)

At places where special area allowance is payable in terms of regulation 23(ii) of Officers’ Service Regulations, 1979/1982, the said allowance shall be payable at rates as in Annexure-IV.

v) Compensation on transfer: (W.e.f. 01/5/2005)

An officer on transfer will be eligible to draw a lump sum amount, as indicated below, for expenses connected with packaging, local transportation, insuring the baggage etc. —————————————————————————————————— Grade/Scales of Officers Rate —————————————————————————————————— Officers in Scale IV & above Rs.8,750/-

Officers in Scale-I/II/III Rs.7,000/- —————————————————————————————————— vi) Mode of Travel and Expenses on Travel

Effective from the date of this joint Note, the following provisions shall apply wherever an officer is required to travel on duty:

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(i) An officer in Junior Management Grade is entitled to travel by 1st Class or AC II Tier Sleeper by train. He may, however, travel by air (economy class) if so permitted by the Competent authority, having regard to the exigencies of business or public interest;

(ii) An officer in Middle Management Grade is entitled to travel by 1st Class or AC II Tier Sleeper by train. He may, however, travel by air (economy class) if the distance to be travelled is more than 1000 kms. He may, however, travel by air (economy class) even for a shorter distance if so permitted by the Competent Authority having regard to the exigencies of business or public interest;

(iv) An officer in Senior Management or Top Executive Grade may travel by car between places not connected by air or rail provided that the distance does not exceed 500 kms. However, when a major part of the distance between the two places can be covered by air or rail, only the rest of the distance should normally be covered by car;

(v) Any other officer may be authorised by the Competent Authority having regard to the exigencies of business, to travel by his own vehicle or by taxi or by the Bank’s vehicle.

The remaining provisions as in Sub-regulation 2 & 3 of Regulation 41 of Officers’ Service Regulations shall remain unchanged.

vii) Leave Travel Concession:

1. During each block of 4 years, an officer shall be eligible for leave travel concession for travel to his place of domicile once in each block of two years. Alternatively, he may travel in one block of two years to his place of domicile and in another block of two years to any place in India by the shortest route.

2. Alternatively, an Officer, exercising the option anytime during a 4 year block or two year block as the case may be, surrender and encash his LTC (other than travel to place of domicile) upon which he shall be entitled to receive an amount equivalent to 75% of the eligible fare for the class of travel by train to which he is entitled upto a distance of 4500 kms (one way) for officers in JMG Scale-I and MMG Scale II & III and 5500 kms (one way) for officers in SMG scale-IV and above. An officer opting to encash his LTC shall prefer the claim for himself/herself and his/her family members only once during the block/term in which such encashment is availed of. The facility of encashment of Privilege leave, while awailing of Leave Fare Concession is also available while encashing the facility of LTC.

3. The mode and class by which an officer may avail of Leave Travel Concession shall be the same as the officer is normally entitled to travel on transfer and other terms and conditions subject to which the Leave Travel Concession may be availed of by an officer, shall be as decided by the Board from time to time.

viii) Definition of family:

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i) For the purpose of Leave Travel Concession and for reimbursement of Hospitalisation Expenses, “Family” of an officer shall mean an officer’s spouse wholly dependent, unmarried children (including dependent step children and legally adopted children) and wholly dependent parents ordinarily residing with and wholly dependent on the officer.

ii) The term wholly dependent child/parent shall mean such member of the family having a monthlyincome not exceeding Rs.2,550/- p.m.

If the income of one of the parents exceeds Rs.2,550/- p.m. or the aggregate income of both the parents exceeds Rs.2,550/- p.m. both the parents shall not be considered as wholly dependent on the employee.

13. Project Area Allowance:On and from 1st November 2002, Project Area Compensatory Allowance shall be payable at the following rates:

Project Areas falling in Group A-Rs. 210/- p.m. Project Areas falling in Group B-Rs. 185/- p.m. 14. Mid-academic year transfer Allowance:

On and from 1st January 2004, mid-academic year transfer allowance shall be payable at Rs. 500/- p.m. subject to other conditions.

15. Split Duty Allowance:

On and from 1st November 2002, Split Duty Allowance shall be payable at Rs. 125/- p.m.

16. General Provisions:

Officers manning hubs/switch centres, disaster recovery centres or similar sensitive installations requiring round-the-clock maintenance/surveillance and security officers required to provide round the clock maintenance/surveillance shall not participate in any work stoppage/strike action.

17. Date of Effect:

For payment of arrears, the benefits under various provisions as above, shall be from the date of signing the Joint Note unless otherwise specified against the relevant provisions as detailed below:

—————————————————————————————————— W.E.F. ——————————————————————————————————- 1. Basic Pay 2. Dearness Allowance 3. House Rent Allowance 4. City Compensatory Allowance 5. Professional Qualification Pay 1.11.2002

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6. Hill and Fuel Allowance 7. Special Area Allowance 8. Project Area Allowance 9. Split Duty Allowance —————————————————————————————————— 10. Mid Academic Year Transfer Allowance 1.1.2004 ——————————————————————————————————- 11. Dearness Allowance 100% Neutralisation 1.2.2005 —————————————————————————————————— 12. Medical Aid 1.2.2004 —————————————————————————————————— 13. Fixed Personal Pay 1.11.2004 —————————————————————————————————— 14. Deputation Allowance 1.6.2005 —————————————————————————————————— 15. Compensation on Transfer 1.5.2005 ——————————————————————————————————

**********

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Dr.Kamalesh Chandra Chakrabarty has joined our Bank as Chairman

& Managing Director on 9th June 2005. A seasoned Banker with vast

exposure in all facets of modern banking, he will preside over our great

Institution - Indian Bank for the next five years. He started his career as a

Planning Officer with Bank of Baroda in 1978 and prior to joining Indian Bank he

was with Punjab National Bank as its Executive Director. He served as a teaching

faculty in Benaras Hindu University for 5 years before starting his banking

career.

With a Phd. in Statistical Techniques and Demographic Studies, Dr.Chakrabarty

brings with him rich experience of having worked in Bank of Baroda for over 26

years.

In Bank of Baroda he has looked after the Corporate Planning, Economic

Research, Lead Bank responsibilities, MIS and Information Technology at

different times and headed the Integrated Treasury Functions. The Bank’s

Corporate Risk Management function was vested with him and he was in charge

of UK operations of Bank of Baroda for more than four years from May 2001 to

July 2004 with ‘approved person’ status from Financial Services Authorities

in U.K. (U K Regulator).

Dr.Chakrabarty’s varied expertise includes preparation of Corporate Strategic

Plans, establishing systems for Asset-Liability Management, Resource

Management functions, marketing of new products, establishing Modern

Enterprise-wise Risk Management System, Electronic Payment Systems,

diversifying into Insurance business and e-banking at Bank of Baroda. He has

HEARTY WELCOME TO OUR NEW CHAIRMAN – DR.K.C.CHAKRABARTY

39

been a director on the Boards of Central Depository Services Ltd. and BOB

Housing Finance Ltd.

He has served as a member of the Committee on Direction on Banking Studies set

up by Reserve Bank of India, as Member co-ordinator of the Committee of

Transfer Price Mechanism of Indian Banks’ Association. He was a member of the

Committee constituted by IBA to study the Experience of Finance Sector

Reforms in East Asian Countries of Thailand, Taiwan, South Korea

and Indonesia and continues to be a member of the IBA Committee of

Economists for more than 10 years.

He is a visiting Faculty at Bankers’ Training College, RBI and National Institute

of Bank Management, Pune.

The new Chairman joins us at a time when the banking industry is at the cross

roads. A lot of challenges stare at us on the face. The Indian Bank family

witnessed unprecedented problems and set backs in the past and we rose as a

team and proved that nothing could fail our beloved Bank. We are confident that

the team spirit and the intrinsic strength shown by the Indian Bank family in the

past can be synergized very effectively with the vast experience of our new

Chairman & Managing Director to carve out a glorious future for our bank which

is going to celebrate its centenary in the year 2007.

With lot of hopes and expectations we welcome our new Chairman and assure

him of our sincere cooperation for the betterment and prosperity of our beloved

Institution.

With greetings, Yours Comradely, T.T.Natarajan Secretary General

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Dear Comrades,

Shri.M.B.N.Rao has assumed charge of Canara Bank as its Chairman & Managing Director on 9th June 2005. He started his career as a Probationary Officer in our Bank in the year 1970 and rose to the level of Chairman & Managing Director. He headed our Bank as the Chairman & Managing Director since 04.12.2003. There was a time in which the Bank was not having the Chairman & Managing Director and Executive Director. It was a situation of our Institution left as a rudderless ship. During that crucial time Shri.M.B.N.Rao, who was then a General Manager, headed the General Managers team that evolved the Restructuring Plan and strategies for the revival of the Bank which enabled the turnaround of the Bank. We can always feel proud that the restructuring plan that was submitted to the Government which facilitated the infusion of capital and turn around of the bank was an in-house plan and no consultancy or agency was involved in the process. As an organization we consider that this is the greatest contribution of Shri.M.B.N.Rao to our Institution. Shri.M.B.N.Rao had a flair for technology and he was a member of IBA’s Committee on Computerisation and Committee to Monitor Code of Ethics in the banking sector. He gave lot of thrust for technology upgradation, spreading of TBC to most of the branches, setting up of ATM and introduction of CBS. Focus was given to marketing also. Though difficulties are experienced at the field level in the implementation, these measures exhibited his good intention and far sight. On the IR front, differences persisted on the issue of compassionate appointment, reviving of bilateral forums and giving thrust to seniors in promotions as there was a virtual draught on the promotion front since 1998. On account of our views we suffered set backs on the organizational front. However, our request for giving weightage for seniority was finally conceded and reasonable promotions were given to make good the past denials. We will be failing in our duty if we do not place our sincere thanks to Shri.M.B.N.Rao for the same. We gratefully acknowledge all the positive contributions made during his tenure as Chairman & Managing Director and we wish him All the Best in his new assignment as Chairman & Managing Director of Canara Bank. With greetings, Yours comradely, T.T.Natarajan Secretary General

SHRI.M.B.N.RAO TAKES OVER AS CHAIRMAN & MANAGING DIRECTOR OF CANARA BANK

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Dear Comrades, CALCULATION AND PAYMENT OF PENSION DUE TO RE-DEFINITION OF PAY AS PER 8TH BIPARTITE SETTLEMENT/JOINT NOTE DATED 02.06.2005

******

We have been receiving queries from the retired officers who are receiving pension about the increase in pension amount that they are likely to receive consequent to the signing of the Joint Note on 02.06.2005 between the Officers’ Organisations and the IBA on Officers Salary Revision. IBA has issued detailed guidelines to the designated officers of the bank on the above subject as per their Letter No.CIR/PD/76/D/G2/2005-06/557 dated 28.06.2005. The guidelines are reproduced in the Annexure. We request our members to kindly bring this improvement to the notice of all the pensioners retired after 01.04.1998. PAYMENT OF DIFFERENTIAL AMOUNT IN GRATUITY ON ACCOUNT OF APPLICATION OF REVISED SCALES. We have been receiving queries from the officers who had retired about the arrears of gratuity that they are likely to receive consequent to the recent salary revision to the officers. IBA has since clarified the matter and the text of the clarification issued is reproduced. “Since amendments to the Officers’ Service Regulations to incorporate the new pay scales would take sometime, the differential amount in gratuity on account of application of revised pay scales to those who retired/ceased to be in service on or after 01.11.2002 shall become payable, both under the Payment of Gratuity Act, 1972 and the Officers’ Service Regulations, only after the amendments to the Officers’ Service Regulations are in place.” We request our members to kindly bring this development to the notice of the officers who had retired/ceased to be in service on or after 01.11.2002. With greetings, Yours comradely, T.T.NATARAJAN Secretary General

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Cir. No: AI/ 16/2004-2007 Date: 12 09 2005 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades AIBOC to participate in General Strike on 29th September 2005 – Strike notice served on IBA – Preparations to commence on war footing ----------------------------------------------------------------------------------------------------- Members are aware that the Sponsoring Committee of Trade Unions in a convention held at New Delhi on 9th July 2005 had given a call for a country-wide General Strike demanding directional change in the economic policies pursued by the Government of India and also submitted a 16 point charter seeking immediate action of the Government. Opposing the Government moves of privatization, dis-investment, acquisition and merger of Banks, introduction of FDI in Banks and Insurance, restoration of right to strike and collective bargaining, lifting the ban on recruitment, stopping of contractorisation, raising of the interest rates on PF and Savings, taking up of stringent measures for recovery of NPA and unpaid tax arrears are forming part of the 16 point charter. United Forum of Bank Unions have endorsed the 16 points charter and the constituent unions were advised to serve strike notice and participate in the General Strike.

In the above background, our National Organisation AIBOC has decided to enlarge the issues and to participate in the General Strike to be observed on 29th September 2005. Accordingly, the issues viz. Introduction of 2nd option for pension, Restoration of Compassionate Appointment Scheme, Regulated working hours for officers are included in the Strike Notice. The text of the Strike Notice is reproduced for the information of our members.

Comrades, you are taking up another struggle to discharge your sacred duty to the country in defending the interest of working class and common man. The Confederation has again proved that issues are important and not the ideological affiliations. The Confederation strongly believes that when the issues are genuine and are raised in the interest of working class and common man, giving it a political colour would amount to running away from responsibilities. The reforms have brought several miseries to the common man. The reforms may produce wealth for a few, but the bulk of our population remain below the poverty line. Therefore, we have every reason to feel proud that AIBOC had shown tremendous maturity and pragmatism in taking the decision to participate in the strike.

Comrades, AIBOC has given the call. Needless to say, it is our bounden duty to make it a grand success. We, therefore, call upon our members to rally round the call of the Confederation and make the strike a thunderous success.

With greetings

Yours Comradely

T T Natarajan Secretary General

43

No.1367/237/05 29th August, 2005

The Chairman, Indian Banks‘ Association, Stadium House, Block No.3, 6th Floor, Veer Nariman Road, MUMBAI-400 021

Dear Sir,

NOTICE OF STRIKE

We hereby give you notice that the Officers of our Affiliates working in all the Public Sector, Private Sector, and Regional Rural Banks, will be observing a day‘s country-wide strike on 29th September, 2005 , to voice their protest against:

(1) Amendments to Banking Regulations Act diluting the control and ownership of RBI and Govt. Removal of cap on Voting Rights (2) Initiatives of the Govt. to privatize the Public sector Banks through disinvestments/Sale of Govt. equity etc (3) Merger/ Acquisition amongst Public Sector Banks; (4) Foreign Direct Investment (FDI) in private as well as Public Sector Banks. (5) The proposed amendments to Trade Unions Act and Industrial Disputes Act with a view to de-unionise the workforce and to enable the Corporates to ‘hire and fire‘

The strike is also in pursuance of the following long- pending demands:

(i) Introduction of 2nd option on pension (ii) Restoration of a Compassionate Appointment scheme (iii) Regulated working Hours

The facts of the case are set out in the Annexure

Thanking you,

Yours faithfully,

SD/- (SHANTHARAJU) GENERAL SECRETARY

44

ANNEXURE

FACTS OF THE CASE

The All India Bank Officers‘ Confederation is major Bank Officers‘ union covering Officers working in Public, Private, RRB and Co-operative sectors. The Confederation is spearheading the officers‘ movement over the last several years. It has been in the forefront in protecting and preserving not only the trade union rights but also the issues concerning the interests of the common man. The Confederation has been leading struggles against a number initiatives of the Government which are against the common man. Accordingly it has now been decided to observe one day token strike on 29th September 2005 on the following issues.

1. AMENDMENTS TO BANKING REGULATION ACT

The Government has placed certain amendments to the Banking Regulation Act which include recommendations for change of several provisions which are not in the interest of the common man. While the Government has shelved the provisions regarding the dilution of equity from 51 to 33% for the time being, the other amendments proposed are equite harmful to the common man. The Banking is a sensitive sector. Banks are the nerve centers of the national economy. They cannot be handed over to the multinationals and private operators. The proposals to: (i). Remove the restriction of voting rights of 10% and link them to the proportionate share-holdings.(ii) The restructuring of the Boards with the exclusion of Reserve Bank of India and Government nominees (iii) The power to Reserve Bank of India to appoint any number of independent directors who will not be held responsible for the decisions of the Board.(iv). The reduction of the share holders from 6 to 3 and the increase of Executive Directors from 2 to 4 etc. These proposals are clear indications of the Government that though the control lies with the Government, the Boards are privatized so that the objectives of privatization are served

2. INITIATIVES OF THE GOVERNMENT TO PRIVATISE THE PUBLIC SECTOR BANKS THROUGH DISINVESTMENT/SALE OF GOVERNMENT EQUITY

The Government of India when the Finance portfolio was held by Shri Manmhon Singh, the present Prime Minister of the country had given a solemn assurance that the ownership as well as controlling stake will remain with the Government. However, this assurance has not been kept up. The Government has not only reduced its equity to 51% but has been refusing to provide equity support whenever expansion has been undertaken. Instead, it has been advocating for issue of Preferential Shares, Bonds for the capital etc. The initiative is to effect indirect privatization of Banks. Hence, we oppose all such moves.

3. MERGER AND ACQUISTION OF PUBLIC SECTOR BANKS

As part of its sacred duty, AIBOC has been opposing the Government‘s move to encourage acquisition and merger of Public Sector Banks as it will (i) harm the socio-economic developmental responsibilities all over the country undertaken by Public Sector Banks; (ii) Credit deposit ratio will get adversely affected; (iii) the priority lendings will suffer a serious setback; (iv)

45

the resources mobilized will not be available for the benefit of the locals; (v) the bank Branches will get reduced due to the so called `viability‘ thereby denying the banking facilities to common man and (vi) will result in drastic reduction of employment opportunities. Already the bank branches are groaning under acute shortage of man-power due to mass exodus on account of VRS introduced in 2001. The proposed `merger mania‘ and `acquisition syndrome‘ will further cripple the job and career opportunities of the staff at all levels. Hence we oppose such moves.

4. FOREIGN DIRECT INVESTMENT (FDI) IN BANKS

The encouragement to Foreign Banks/Institutions will enable them to take over the Private Sector through FDIs and is a dangerous signal. The Banking is a sensitive sector. The handing over of the sector to multinationals is against the interest of our country. The AIBOC therefore strongly opposes the take-over of Private Sector Banks by Foreign Banks/Institutions/Investors.

In the garb of autonomy, lot of encouragement is being offered to Foreign Banks to make inroads into the Indian Banking arena and extend their tentacles. The Government‘s covert and overt moves to grant autonomy to Banks in the matter of Insurance, Mutual Fund etc. are blatant invitations to Foreign Banks to enter the fray and acquire controlling interests slowly and steadily. While the Public Sector Banks were created with the avowed social objects of common good of the Nation, the Foreign Banks will have no such objective to boast about, as profit will be their one and only concern.

5. THE PROPOSED AMENDMENTS TO TRADE UNIONS ACT AND INDUSTRIAL DISPUTES ACT.

The intention of the Government is to remove all restrictions to the corporate world in regard to recognition of Trade Unions. The aim of the proposed amendments in regard to 10% minimum membership for registration as also `strike ballot‘ etc. is to de-unionise the workforce. These amendments will only serve the interests of industrialists and not their workers.

As regards the amendments to Industrial Disputes Act, it is a clear attempt to give a free hand to industrial houses and corporates to "hire and fire". These amendments have been opposed by us tooth and nail.

THE STRIKE IS IN PURSUANCE OF THE FOLLOWING DEMANDS:

1. INTRODUCTION OF 2ND OPTION ON PENSION

The Banking Industry introduced a pension scheme after a settlement between the Unions/Officers‘ Organisations. The IBA introduced pension on the lines of RBI. As the scheme was operational, a large number of Officers could not exercise option within the stipulated date because of the `strike‘ clause in the pension Rules. After the `strike‘ clause was removed, the Officers‘ Organisations have been demanding that the Officers be granted one more option. Such of those Bank employees who did not exercise their option for pension have been making a fervent plea for exercising their option now. It is but a reasonable request and the benefit of exercising a second option has been liberally granted in other Financial Institutions like RBI, LIC etc. The IBA has however been turning a `Nelson‘s eye‘ as far as Bank Empoyees are concerned. This is most unfair. As a matter of fact, the pension scheme would be more viable with a greater membership.

2.COMPASSIONATE APPOINTMENTS

46

The scheme is in vogue in the Banking Industry as a welfare measure. It is the only source of support and succour to the families whose bread winners die in harness or are physically incapacitated. But of late, the facility is being summarily denied on the basis of so called income criteria etc. But no such restrictions are being observed in Central/State Governments and other Public sector Undertakings with regard to such appointments. Our earnest pleas made to IBA in the past have not evoked any response. With the result, the dependents of eligible employees are thrown to starvation and economic deprivation. In this connection we would like to reiterate that.

(a) The Compassionate appointment scheme was prevailing in the banking industry for a long time. The dilution in the scheme came in the form of the Banks adopting certain economic criteria based on the decision of the supreme Court. (b)The Government has withdrawn the scheme unilaterally and introduced a cash compensation in lieu of compassionate appointment wherever the wards of the deceased were eligible for the appointment; (c) The compassionate appointment scheme is a welfare scheme and it provided a sense of social security to the officers who were discharging their duties with full devotion and Dedication:

(d) The Cash compensation is at the most a sort of "Death compensation" and it cannot replace the sucour that was available to the family under the compassionate appointment Scheme.

(e) The appointments are still offered in all other institutions including the Public sector and Government departments.

(i) The Confederation therefore demands restoration of the compassionate appointment scheme;

(ii) The appointment in the case of spouse should be offered irrespective of the economic condition;

(iii) The economic criteria should be redefined taking into account the standard of life the family was enjoying earlier

3. REGULATED WORKING HOURS

At many branches, Officers have to come early and/ or sit late for completion of the day‘s work. Due to cut-throat competition, diversification in products and services, aggressive marketing strategies coupled with business targets, the officers have to work endlessly for longer hours day in and day out. These Officers require to be compensated by way of reimbursement of out-of -pocket expenses incurred by them. IBA is yet to send a suitable communication to the Banks for such reimbursement.

The above issues are only illustrative and not exhaustive. Having exhausted all other revenues, the Officers are left with no other alternative except to give collective expression to their resentment over the apathy and indifference of both IBA and the Government in resolving their genuine grievances.

Hence the strike.

SD/- (SHANTHARAJU) GENERAL SECRETARY

Bangalore, Dt: 29.8.05

47


The Nation-Wide General Strike on 29th September 2005 has been a resounding success. The struggle was to defend the interests of Common Man and the Country and by taking part in this struggle, AIBOC has created history. 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 in this historic strike. 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 QUOTE: TEXT OF AIBOC CIRCULAR No.71DATED 30.09.2005

NATION – WIDE STRIKE TOTAL AIBOC LEADS STRUGGLE THORUGHOUT THE COUNTRY- STRUGGLE TO

CONTINUE The protest general strike on 29th September 2005 is total. The Nation has witnessed yet another historical General Strike throughout the country. The Banking Industry came to a standstill on 29.09.05 in response to the strike call given by AIBOC and other fraternal organizations in banking viz., AIBEA, NCBE, AIBOC AND BEFI representing more than 90% of the workforce in the banking industry. As far as the Officers concerned, it was almost total in view of the fact that the Confederation and AIBOA together command a near 100% of the membership in the industry. The Strike was also a part of the General struggle pursued under the banner of “Platform for Mass Organizations” spreading the movement against the ill-advised moves and policies of the Government. 2. The reports reaching the headquarters indicate that the Bank Employees and Officers under the Joint movement held rallies and conducted centralized demonstrations throughout the Country at all District/State headquarters and in front of administrative offices, main braches etc. At several centers, the members of the Confederation participated in the centralized rallies and demonstrations organized by the coordinating body of the central trade unions. The reports also indicate that the leaders of the confederation addressed all major rallies in the Metro-cities and State Capitals. The media coverage captured the total strike of the Banks. The strike participation was all-

NATION-WIDE STRIKE ON 29.09.2005 A GRAND SUCCESS

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round. The present strike also received mammoth support from hundreds of independent federations, confederations and also several non-governmental organizations. 3. The huge gathering at Delhi, Mumbai, Chennai, Kolkata, Hyderabad etc., received a wide coverage not only by the press but by the electronic media as well. The business both in Banks and Insurance came to a standstill. The State Government employees in many States participated in the struggle. The student organizations were in the forefront at different parts of the country. There were several instances where an attempt was made by some of the executives of Banks to mislead the members and insist upon them that they should not participate in the strike and they have been exempted from participation in the strike as per the latest agreement. However, due to timely intervention by the leadership of the Confederation, such confusion was sorted out and the strike was total. 4. Comrades, the Confederation and its members have once again created history through their participation in the strike which was mainly to defend the interest of the common man and the Country. The issues apart from ones listed out by the coordination committee of mass organizations, are dear to us. The country cannot afford Privatization of Public Sector Banks, nor does the country require any foreign direct investment as regards Banking. The People of the Country need the existing number of Public Sector Banks in full. Any reduction in the number of present 27 Public Sector Banks will be resisted by us. The Banks in Public Sector have recorded excellent performance and hence there is no need to merge them. The Confederation has also raised 3 major issues. They are (1) One more Option for Pension, (2) Review of Compassionate Appointment and (3) Regulated Working Hours for Officers. 5. The strike participants included Staff and Employees at all the Airports, Colleges, Government offices, Public utility Services, Public Sector Units, the Transport Operators both Public and Private, the Agricultural Workers, the Student and almost all sections of the working class of the Country. 6. The present Government which is a Coalition Government has failed to honour its commitments. It had declared that it will function on the basis of Common Minimum Programme accommodating the views of all the consensus partners in the Government as also the Left Parties. The major declaration of the Government was that it will not disinvest the profit making PSUs and it will respect the trade union rights of the workers and maintain bilateral discussions with them. These are being flouted day in day out. There are several other such assurances flouted by the Government recklessly. 7. Comrades, the Government has received a strong message. However, an attempt is being given to paint the strike as politically motivated and led by the Left Parties. Fortunately, we have witnessed hundreds of independent federations and confederations in action in the current agitation. The AIBOC took a leading role in highlighting the issues concerning common man. Our struggle is just and right and any attempt to give it a political colour should be resisted with all force at our command. 8. The strike action is only a warm-up exercise. There are several challenges ahead of us. The amendments to Banking Regulation Act, Trade Unions Act, Industrial Dispute Act, Factories Act etc., are staring at our doors to take away the hard earned rights of the workers. The financial sector is sought to be opened at the cost of the Common Man. Hence, our campaign should continue uninterrupted to ward off these

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threats to the Nation and the Trade Unions. Let us therefore keep ourselves in readiness for further struggles in the days to come. 9. In the meanwhile, our red salute to the rank and file for their splendid performance and wholehearted participation in the historic strike on 29th September 2005. With revolutionary greetings, Sd/- (SHANTHA RAJU) GENERAL SECRETARY

UNQUOTE:

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Cir: No: AI/18/2004-2007 Date: 06.12.2005 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades, Our Association has been voicing its deep concern over the coercive and intimidating culture prevailing in the Bank in general and in particular in some of the Circles. While we expect the Business leaders in the Circles to act as a friend, philosopher, and guide and support the Branch Administration in business promotions, what is happening in some Circles is just the contrary. In meetings and over phone using of words by Superiors, such as that if you cannot perform you quit, if you cannot perform kill yourself, who gave you promotion, I will transfer you to North East, I will see your end etc., are very common and not a single day pass on without the Officers bringing it to our notice, the kind of treatment meted out to them. In fact this attitude has at times percolated in the branches headed by higher officials thereby the branch staff working as a team has become a casualty. Sensing that this kind of attitude will actually hinder the process of business development and at times may lead to abnormal happenings, we have been pleading for a restrained approach. What we feared should not happen, has happened. Com. R B Mishra, Senior Manager joined our Bank as a probationary officer. He was a Post Graduate i.e., M.A. (Political Science) from Jawaharlal Nehru University, New Delhi. He was a fine officer. He got promoted to scale III in the recent promotions. He was a gentleman to the core. He held the position of Vice-President in out Easter Zone Unit for a considerable time. As Branch Manager Buguda he was trying his best to perform, but the place had its own limitations. Regardless of the reasons and constraints he was branded as a non-performer. He has been confiding to his wife about the bad treatment meted out to him from time to time. On 21.11.2005, he attended office as usual, but was visibly shaken after receiving a call from Circle Office around 2 o’clock in that afternoon. Few colleagues saw him weeping after receiving the call and he abruptly left the office. The Assistant Branch Manager of the Branch, who was living with him in the same house, was away in Cuttack on leave. That day night at around 2.o’ clock when he came back to Buguda in night bus, he found the door locked from inside and after repeatedly knocking the door, when there was no response called the landlord who also tried to open the door and by this time it was morning and police was informed. The police broke opened the door and found him hanging.

SUICIDE COMMITTED BY Com. R. B. MISHRA, SENIOR MANAGER ( BRANCH MANAGER ) BUGUDA BRANCH

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All Officers of the Circle were extremely shocked and agitated next day morning when they heard about the incident. Immediately a dharna was organized on 23.11.05 in front of our Circle Office, Bhubaneswar and another dharna was conducted before Circle Office Kolkata on 26.11.05. The President and Secretary General attended the General Council meeting of the Orissa State held at Bhubaneswar on 27.11.05 and assured all support. On 30.11.05, a gate meeting was organized in front of Head Office to condole the death of Com. R B Mishra in which the entire incident was dealt in detail by the leaders and the attitude of the Management was protested. Our National Organization AIBOC was fully apprised of the developments and they have extended full support. The AIBOC Orissa State Unit has extended all support to the Comrades of Orissa in their action programmes. We have addressed a communication to the Chairman & Managing Director conveying our anguish and disappointment over the matter and seeking his intervention for remedying the situation and to avoid occurrence such incidents in future. The text of the letter is reproduced for the information of our members. Comrades, we are deeply shocked by the incident. The entire episode speaks about the vulnerability of the Officers’ community. It should not happen again. What ever might be the provocations, insults or abuses, bring it to the notice of the organization. Life is precious. We owe a duty to family. We are collectively capable enough to face any situation and overcome the same. We dip our banner in the memory of Comrade R B Mishra and offer our condolence to the bereaved family. We note to keep the members advised of further developments. Yours Comradely, T. T. NATARAJAN Secretary General

Text of the letter dated 06.12.2005 addressed to our Chairman & Managing Director

The death of Shri R.B.Mishra, Senior Manager (Branch Manager), Buguda Branch by committing suicide on 21.11.2005 has sent shock waves through out the length and breadth of the country. The circumstances under which the officer has committed suicide clearly indicate that he has become a victim of the coercive attitude exhibited by the Circle Administration, Bhubaneswar. This incident is not the first one of this kind as one Mr. S.S. Mahapatro, Branch Manager, Ankula Branch has committed suicide some time back.

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Our association has been repeatedly voicing its concern over the coercive and intimidating culture prevailing in the Bank in most of the circles and has been requesting for corrective action as the officers were getting frustrated and de-motivated day by day. Leave alone playing the role of friend, philosopher and guide, these circle heads were hurling abuses on the Branch Managers and officers thereby psychologically breaking them down and create a confidence crisis. In meetings and over the telephone using of words such as that if you cannot perform you quit, if you cannot perform kill yourself, who gave you promotion, I will transfer you to North East, I will see your end etc., are very common and not a single day passes on without the officers bringing to our notice, the kind of treatment meted out to them. Yet another methodology adopted to coerce the officers is the denial of leave, last minute denial of LFC, denial of TA etc., thereby contravening the service regulations and various administrative provisions by which these entitlements are governed. To put it in a nutshell some Circle Administrations have bid farewell to the rules of law and they have become law unto themselves. While the officers were silently enduring this situation, as a recognized Association we have repeatedly drawn the attention of the management to this sordid state of affairs with the fond hope that some correctional course will be adopted and there will be change of mind towards better administration thereby providing some relief to the officers. Our expectations are belied as nothing of that sort had happened. On the contrary we have paid a price as could be seen from the death of Shri. R.B. Mishra. Sir, we have reached a situation of this far and no further. We are thoroughly disappointed and pained to note that there has been no response from the management to such a ghastly incident as the Deputy General Manager(HRM) who landed at Bhubaneswar in connection with the incident had held a closed door meeting with the Assistant General Manager, interacted with few relatives of Shri. R.B. Mishra, paid a courtesy visit to their house and returned. It is strange that he had chosen not to have any discussion with the other officers of Circle Office or the representatives of the Association. Are we to conclude that the management is not willing to listen to the officers and the Association which is their representative body? We are thoroughly disappointed by the manner in which the management has so far handled this incident. We cannot afford to loose our colleagues in this fashion anymore. Shri. R.B. Mishra death should be an end and not a beginning. Ensuring this is only in the hands of the management. Our Eastern Zone unit has addressed two communications and a resolution adopted in the General Council Meeting held on 27th November, 2005 at Bhubaneswar demanding action and has held demonstrations/dharnas without affecting the customer service to draw the attention of the Management. Right from the day one your goodselves has assumed charge, you have assured that you will ensure transparency in administration and democratic management. Demonstrations and dharnas are a collective cry for

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justice and in the background of an abnormal incident of suicide committed by Shri R.B. Mishra, we hope that you will not disregard and try to wish away the protest. We, therefore, request your goodselves to initiate dialogue with the Association and do the needful in this regard by responding to the representations made by our Eastern Zone unit and give raise to a hope that the management is not one sided and that the officers have a place in the Institution and that they will not be treated as aliens or strangers. Thanking you, Yours faithfully, Sd/- T.T. Natarajan Secretary General

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Cir: No: AI/19/2004-2007 Date: 01.01.2006 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades, Yet another year had slipped into the History. The year 2005 has come to an end and New Year 2006 has dawned. On this occasion we deem it our privilege to greet each one of you and your family members. Looking back to the year 2005 we have to say that it began carrying forward the agonies and miseries inflicted by the Tsunami that devastated the coastal regions in India, Sri Lanka and Indonesia on 26th December, 2004. As the New Year–2005 dawned massive relief operations continued to assist the survivors of the Tsunami. Ever after completion of one year it cannot be said that the rehabilitation task is completed. People are still living in relief camps and temporary houses. The fury of nature continued to take its toll. Monsoon rains in Mumbai killed over 1000 people. Powerful earthquake hit northern Pakistan and Kashmir killing more than 73000 people. Hurricane Katrina devastated the US gulf coast killing over 1200 people in New Orleans. While our Nation rose as one man to stand by the survivors of the calamities by providing them all help, there was no visible administration in America, when Hurricane Katrina struck New Orleans. New Orleans is the land where the black people live and the hollow superpower America exhibited its racial discrimination that is being nurtured and pursued over years. While the America invisible got exposed as a nation where the rich do not acknowledge shared nationhood with the rest, India established itself as a Nation with humanism and character. The UPA Government is marching with its reform process. Thanks to the presence of left, the Government is not in a position to rush through the reform with the speed they desire. Hon’ble Finance Minister Shri P.Chidambaram visited our Bank. He addressed the Board, Executives and the Unions and Associations. While addressing the Unions and Associations, in his own way, he tried to convince and persuade us that consolidation and convergence are inevitable. The Unions and Associations responded that they are not in agreement with his views, through a memorandum. It is not ideological hostility. The Trade Unions, which are instruments of social development, cannot subscribe to a view that the State must retreat abandoning the helpless to their fate and the business community’s animal spirit should be allowed to grow unabated. India continues to remain among highly corrupt nations. This dispiriting news coming from the Human Development Report of the United Nations Development Programme rated India’s Corruption Perception Index at 2.9 on a scale of 0 (highly corrupt) to 10 (highly clean). The index is arrived based on 14 surveys covering corruption within the State, misuse of Public Office, bribery in the

FAREWELL - 2005 **** WELCOME - 2006

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economy, inducement to officials etc. While this development has to be viewed with great concern, we cannot afford to loose sight of the fact that corruption in private sector which is the single largest source of black money remains untouched. As long as the society and media continue to glorify the rich irrespective of the method by which the riches were acquired, corruption cannot be eliminated. Kudos!!! AIBOC and UFBU. A Historic Wage Revision was clinched. The settlement was very close to our Charter of Demands. Removal of anomaly on DA and 100% neutralization, common date of effect for all, introduction of LFC encashment, revision of various allowances and improvement of Hospitalization charges are some of the highlights of this settlement. All our eyes are now set on our demand for one more option for pension and revival of compassionate appointment. Coming to our Mother Institution, Indian Bank, there was change of guard at the TOP. Dr. K.C. Chakrabarthy assumed charge as the Chairman & Managing Director. Though the business growth is good we cannot remain complacent as many branches have slipped in the business position compared to the last year. We have a proven past and given the motivation, it will not be a Herculean task for us to register an impressive growth and move forward. Coming to the Bank level issues, we have a sense of satisfaction that more than 3000 generalist promotions took place making good for the past denials. The specialist promotions were also completed recently. A vexatious issue that is eluding solution is evolving norms for transfers. The Apex Level Structured Meeting, with its name rechristened as Central Consultative Committee Meeting was held on 20.12.2005 in which all the pending issues were raised. We were assured that the issues will be receiving the due attention and norms for transfer will be arrived and put in place after discussion with the Association. Another area of our grave concern is the increasing number of frauds and involvement of insiders. It should concern all of us. We are tempted to quote Blaise Pascal, the famous French Mathematician who said: “Men should act as if God existed because if they did and He did not, nothing was lost, whereas they did not and He did, then all was lost”. The saying is relevant to all of us. Before concluding we cannot remain oblivious of the fact that the pressure exerted on Branch Managers and Officers in the name of performance is having a telling effect on their physical and mental health. It is time that the Management realizes that putting too much pressure will not bring the desired results as every one needs an equilibrium and climate to facilitate an orderly growth. In this context it will be befitting to quote the Modern Management Guru Peter Drucker who said:

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“Management deals with people, their values, their growth and development, social structure, the community and even with spiritual concerns” There should not be any problem for anybody to follow Peter Drucker as he is a Management Guru and not a Trade Union Person. We once again wish you and your family members a Happy and Prosperous New Year. With greetings, Yours Comradely T. T. Natarajan Secretary General

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Cir: No: AI/20/2004-2007 Date: 31.01.2006 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades, DISTURBING TRENDS ON THE VIGILANCE FRONT

********* One of the major concerns of our Association is the sufferings caused to the officers in the hands of the Vigilance Administration of the Bank. We have been voicing our deep concern over the tendency of the Vigilance Administration of the Bank in shifting all the blames on the officers and we have repeatedly demanded that there should be a thorough review in the attitude and style of functioning of the Vigilance Administration. Our earnest expectations that there will be some positive development in this matter got belied as we observed a spurt of activity on the Vigilance front. Numbers of Charge sheets were issued all of a sudden, most of them were converted as major penalty proceedings and as a result a virtual panic situation started engulfing the minds of officers. Officers who were to retire shortly started feeling unsure of their retirement as one Senior Manager who was to retire by 31st January, 2006 was served with five Charge sheets which were followed by Departmental Inquiries thereby making his retirement a question mark. Many matters for which explanations were sought in the year 1997/98 and which were not pursued further after receipt of replies obviously leading the concerned officers to conclude that the matters are rested as closed were suddenly reopened i.e. after 7 years and the Disciplinary Authorities, in total disregard to the time limit prescribed as per CVC guidelines, have imposed severe punishments including loss of livelihood decisions. When the Vigilance Administration of the Bank is headed by a General Manager and when the Executives at the level of Deputy General Manager/Assistant General Manager are monitoring the routine functioning of the Vigilance Department and the Disciplinary Authorities are at the level of Assistant General Manager and above and when systems are there in place for periodical review of all matters right from the department level to the Board level, the kind of trend of slapping Charge sheets just prior to the retirement and imposing punishments on the day of retirement is not only perverse but also an exhibition of total lack of concern and care towards the officers. Besides the sufferings caused to the officers concerned we feel that the present trend if allowed to continue will totally kill the business climate in the Bank. We, therefore, thought it fit to convey our concern and anxiety in the matter to the Chairman & Managing Director through a letter and a copy of the same is enclosed for the information of our members. We note to keep the members advised of further developments in this regard. With greetings, Yours Comradely, T.T.Natarajan Secretary General.

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Dear Comrades,

We draw the attention of our Members to the Circular dated 02nd February 2006 issued by the United Forum of Bank Unions – Indian Bank communicating the decision taken at the Industry level to go in for a Nation wide Strike on 09th March 2006 demanding the restoration of Compassionate Appointments in all Banks. The Various preparatory programmes such as submission of Joint Memorandum to the CMD’s of the Banks, Joint rallies and demonstrations and Badge wearing have been successfully observed. Preparations are in full swing to the make the Strike programme a grand success. Towards this direction UFBU has come out with guidelines for Strike. Com Shantha Raju, Convenor UFBU, has served the Strike Notice to the Chairman IBA. A copy of the Strike Notice served and the text of the guidelines for the Strike are reproduced for the information and guidance of the Members. 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 09/03/2006 to open the eyes of the powers that be and kindle their hearts with compassion. With greetings, Yours comradely, T. T. Natarajan Secretary General

STRIKE ON 09TH MARCH 2006 GUIDELINES FOR THE STRIKE ISSUED BY UFBU

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Dear Comrades,

We have been advised by UFBU through its Circular No.7, dated 06th March 2006, that the proposed strike on 9th March 2006 for restoration of COMPASSIONATE APPOINTMENT SCHEME has since been deferred. The text of the UFBU circular is reproduced hereunder for information of our Members. Further developments in this regard will be informed as soon as we hear from our Apex body. With greetings, Yours comradely, T. T. NATARAJAN Secretary General

Text of UFBU Circular No. 7, dated 06th March 2006

COMPASSIONATE APPOINTMENT SCHEME 9TH MARCH STRIKE DEFERRED

IBA TO COMMENCE NEGOTIATIONS ON THE ISSUE

In continuation of Conciliation proceedings a meeting was convened today at 3.30 pm at Delhi by the Chief Labour Commissioner (Central). The CLC suggested to IBA that they should hold discussions with UFBU and work out a solution to the issues raised by UFBU. After detailed discussions, it was agreed by IBA that they will invite UFBU for discussions and work out a detailed scheme keeping in view the demands made by Unions. Further, the representatives of IBA have also assured that they will conclude the discussions and formulate a detailed scheme within 60 days. Accordingly it has been decided to DEFER THE PROPOSED STRIKE ON 09.03.06. Comrades, we congratulate all of you for your splendid performance in the agitational programmes which have compelled IBA to come for negotiations on the issue of Compassionate Appointment Scheme. With greetings, Sd/- (SHANTHA RAJU) CONVENOR

STRIKE ON 09TH MARCH 2006 -DEFERRED IBA TO COMMENCE NEGOTIATIONS ON THE ISSUE

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Dear Comrades,

We have been advised by UFBU through its Circular No.7, dated 06th March 2006, that the proposed strike on 9th March 2006 for restoration of COMPASSIONATE APPOINTMENT SCHEME has since been deferred. The text of the UFBU circular is reproduced hereunder for information of our Members. Further developments in this regard will be informed as soon as we hear from our Apex body. With greetings, Yours comradely, T. T. NATARAJAN Secretary General

Text of UFBU Circular No. 7, dated 06th March 2006

COMPASSIONATE APPOINTMENT SCHEME 9TH MARCH STRIKE DEFERRED

IBA TO COMMENCE NEGOTIATIONS ON THE ISSUE

In continuation of Conciliation proceedings a meeting was convened today at 3.30 pm at Delhi by the Chief Labour Commissioner (Central). The CLC suggested to IBA that they should hold discussions with UFBU and work out a solution to the issues raised by UFBU. After detailed discussions, it was agreed by IBA that they will invite UFBU for discussions and work out a detailed scheme keeping in view the demands made by Unions. Further, the representatives of IBA have also assured that they will conclude the discussions and formulate a detailed scheme within 60 days. Accordingly it has been decided to DEFER THE PROPOSED STRIKE ON 09.03.06. Comrades, we congratulate all of you for your splendid performance in the agitational programmes which have compelled IBA to come for negotiations on the issue of Compassionate Appointment Scheme. With greetings, Sd/- (SHANTHA RAJU) CONVENOR

STRIKE ON 09TH MARCH 2006 -DEFERRED IBA TO COMMENCE NEGOTIATIONS ON THE ISSUE

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The issue of 2ND OPTION FOR PENSION was discussed at length in the Emergency Executive Committee Meeting of AIBOC held on 17th May, 2006 and it was decided to take up the matter with IBA on priority basis to resolve it within a stipulated time frame. The Circular issued by AIBOC in this regard is reproduced hereunder for the information of our Members. We note to keep the Members informed of the further developments. With greetings, Yours comradely, T. T. NATARAJAN Secretary General

Text of AIBOC Circular No.46

2ND OPTION ON PENSION SCHEME AIBOC TO PURSUE THE ISSUE TO LOGICAL END

One of the major issues taken up for discussion in the Emergency Executive Committee Meeting of the Confederation held at Bangalore on 17th May 2006 was 2nd Option on Pension Scheme. The members of the Committee were very much concerned to note that there is no forward movement despite an understanding reached with IBA at the time of salary revision on 02 06 2006, that the issue will be discussed and finalized at the earliest for the benefit of those who are yet to avail the option on pension, popularly known as 2nd option. In course of discussions on the subject, the members made the following observations:

a) The members are very much concerned about the delay in resolving the issue of 2nd option on pension – although it is being discussed since a long time.

ONE MORE OPTION FOR PENSION

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b) The issue of pension 2nd option has gained a strong momentum, particularly in the background of success of the indefinite strike in State Bank of India.

c) There is all round expectation from the membership that with the successful

indefinite strike in State Bank of India, the 2nd option on pension should not only be resolved but we should aim at an idealistic situation of getting it as a third benefit. As the issue of 2nd option itself is hanging fire, the Confederation should attend the demand immediately and if necessary, should resort to agitation.

d) The issue of pension is an industry-level subject and should be settled between the

unions and the IBA collectively, and hence we should take up the matter with UFBU for early resolution and if necessary, to agitate under the banner of UFBU.

e) The existing benefit under the pension scheme should not be diluted even while

agreeing to the question of sharing a limited burden on account of additional cost etc., the benefits of the scheme as existing should continue to be available to all, in future as well.

After detailed discussions, the Executive Committee decided as under:

a) The Confederation will take up the matter with IBA on priority basis. The issue will have to be discussed at length and the alternatives should be considered without sacrificing the current benefits available in the pension scheme.

b) The Confederation should keep a time frame for resolving the issue, say by the

end of July, 2006. The issue should be taken up amongst the UFBU constituents and speedy negotiations should be demanded from IBA.

c) In case the issue remains unresolved as per our expectations, the Confederation

should propose commencement of agitation by UFBU and commence an action programme including a strike action without further delay.

Comrades, the members of the Executive Committee were unanimous that the issue has remained pending for a long time and hence there should be no delay on the part of the Confederation in forcing the issue. The members should be in readiness for action programme at short notice, in case there is any further delay in the resolution of the issue of 2nd option on pension. With greetings, Sd/- (SHANTHA RAJU) GENERAL SECRETARY

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Cir: No: AI/25/2004-2007 Date: 18 07 2006 TO ALL MEMBERS PLEASE CIRCULATE

Dear Comrades, We draw the attention of our members to the Circulars dated 06 06 2006 and 04 07 2006 of UFBU-Indian Bank apprising the developments that forced the three Employees’ Unions and two Officers’ Organizations to go in for organizational course of action. This agitation is virtually member driven because the officers’ are enduring a silent suffering on many matters. As far as the officers are concerned, the transfer is a very sensitive issue. Given the age profile of the officers, half of them are living alone in their place of posting as they could not shift their families in view of their children education, medical needs of their parents, spouse employment etc., In the case of officers who are living with families and are having children who are studying, they have to plan their children education in advance, and hence they always desire to know as to how long they will continue in a particular place, when they will get a change and so on. The problems faced by the lady officers, officers who are due to retire in a short span of time etc have their own dimension. The problems faced by the officers on the transfer front can be minimized only if the policy provisions are honoured in letter and spirit and hence our Association was very particular that the provision of back to home state transfer on completion of three years of service outside the home state, transfer on completion of two years service in North Eastern Region, General transfers, posting prior to superannuation period etc., should be completed in time so that the uncertainty and anxiety prevailing on the transfer front is largely removed. Towards this direction, two letters were addressed to the Chairman & Managing Director i.e. on 21 03 2006 and 02 05 2006. We patiently waited that the transfer orders will be issued. Months have passed. Officers were undergoing a phase of tremendous anxiety and uncertainty but the Management was in no mood to honour the policy provisions. Similar was our experience on the promotion front. Appeal provision under promotion policy was refused to be honoured. There was no provision of probation in the promotion policy. No such provision was seemingly adopted by the Board and circulated by the Bank. But a provision of probation was invoked and many letters were served in this regard. On the whole, we found that the Management was acting in a unilateral manner and the earnest efforts made by the Association to resolve the issues did not meet with the desired results.

O N G O I N G A G I T A T I O N UNDER THE BANNER OF UFBU - INDIAN BANK

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On 09.05.2006, the Chairman & Managing Director addressed the Unions and Associations in the Bank. Availing the opportunity of this meeting, the representatives of the Unions and Associations raised various issues. From the Association side we have raised the issues of transfer but the response from the Management was negative. Later we received a communication from the Management stating that the Association is intruding in the Management function. On that day, i.e.09.05.2006, after the meeting of the Chairman & Managing Director, the UFBU-Indian Bank met and took stock of the situation. It was unanimously felt that various policy and settlement provisions are not honoured by the Bank and it is high time a suitable communication is sent to the Chairman & Managing Director conveying our feelings and indicating an action programme and adopt a collective approach to resolve the pending matters. The text of the memorandum submitted to the Chairman & Managing Director and the developments aftermath were already apprised to the members through the UFBU-Indian Bank Circulars. We congratulate the members for the successful observance of the various programmes launched. Since the Management has not come out with any positive response, UFBU-Indian Bank was compelled to serve the notice of strike to the Chairman & Managing Director conveying the concerns of the Organizations and its members and also listing out the issues that need immediate redressal. We reproduce the text of the notice of Strike for the information of our members. We call upon our members to be in readyness for the successful observance of the Strike action on 8th August 2006 in the event of the Management refusing to address to the genuine concern and issues raised. With greetings, Yours comradely, T. T. NATARAJAN Secretary General

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TEXT OF THE UFBU-INDIAN BANK LETTER DATED 13 07 2006 ADDRESSED TO THE CHAIRMAN AND MANAGING DIRECTOR

Dear Sir, NOTICE OF STRIKE

We draw your kind attention to our letter dated 16 05 2006 highlighting our concern over the unilateral attitude of the Management and drawing the attention of the Management on the following matters:

1. The existing policies and settlements are given the least credence by the Management

2. Even certain salient provisions such as repatriation on Periodical Transfers and request transfers of Award staff transfer policy and promotion policies are not honoured

3. In the case of officers back to home state transfer is a very vital and crucial service condition which has been faithfully implemented by the Management for over 22 years. This provision is yet to be honoured this year causing tremendous mental agony and anxiety to the concerned officers. Various other provisions like postings prior to retirement etc are not honoured.

4. The Government guidelines on North Eastern Transfers are not honoured

5. Outsourcing measures are implemented violating the industry wise Settlements when our own staff members are willing to perform the job.

We have also pointed out in the letter that the Management is totally neglecting the interest of the work force and a negative and unhelpful attitude is being shown on issues concerning them. We have indicated in that letter that the UFBU-Indian Bank has decided to observe certain organizational programmes such as Submission of Mass Memorandum to the Chairman & Managing Director, Badge Wearing, Centralized Demonstrations and Dharnas in front of Circle Offices and Head Office including a Strike on 08 08 2006. We have concluded the said letter expressing a hope that the Management would reverse the trend and open a new chapter on Industrial Relations.

While we waited for the response from the Management, as if a bolt from the blue, we were shocked to learn that the Bank did not set apart any money towards Staff Welfare Fund from the Net Profit of Rs.504 crores earned for the Financial Year 2005-2006. Vide our letter dated 31 05 2006, we have conveyed our concern and requested for initiation of steps to apportion Rs.15 crores towards Staff Welfare Fund to continue the age old practice and in consonance with the guidelines of the Government of India. There was no response from the Management for this matter also.

When the representatives of the individual unions were informally called by the Management and exhorted upon not to go for agitation, it was faithfully responded by the respective representatives that since the issues were raised under the banner of UFBU-Indian Bank, it would be proper and in the fitness of things to formally call the representatives of the UFBU-Indian Bank and discuss the issues towards

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satisfactorily resolving them. Towards this direction UFBU-Indian Bank awaited the response from the Management. However, the representatives of UFBU-Indian Bank were shocked when the individual signatories of the Memorandum submitted to the Chairman & Managing Director were served with a letter that they should act in a prudent manner before they cast their signature in any letter or representation of document and they should understand the contents and verify the authenticity of the information. The Management letter further undermined the UFBU-Indian Bank by branding them as some staff members indulging into the act of misleading. This kind of approach is unheard of in the Industrial Relations and it was a clear attempt to discredit the Unions and Associations. UFBU-Indian Bank has sent a detailed letter dated 04.07.2006 in this regard to the Chairman & Managing Director.

On the whole we have to say that our hopes that the Management would understand the feelings and expectations of the officers and employees, whose hard work and involvement have made the turnaround of the Bank possible, and exhibit a reciprocating approach by coming forward with positive response to resolve the issues stand belied. We are of the view that there is an obligation on the part of the Management to have faith in the negotiations and to enter into bonafide negotiations and to implement the understandings and assurances in good faith. When the Management has shown its total lack of faith in the negotiations, as demonstrated through the individual communication addressed to the staff members who have signed the Memorandum addressed to the Chairman & Managing Director and, as we have exhausted all reasonable methods of seeking redressal, the only alternate course available to us is collective union action i.e. Strike.

Having pushed to the path of agitation, we put you on notice that the members of UFBU-Indian Bank will be observing a Nation wide Strike on 08 08 2006 demanding the resolution of the following issues:

1. Stopping the outsourcing of our jobs 2. Promotion of Sub-Staff as per Promotion Policy 3. Immediate filling up of sweeper vacancies 4. Repatriation of periodical transfer of Award staff 5. Compassionate Appointment – Consideration of the old cases as per the then

prevailing provisions 6. Implementation of the existing policies and settlements in letter and spirit. 7. Recruitment of sufficient manpower 8. Absorption of temporary employees and personal drivers as Sub-Staff. 9. Release of transfer orders as per Request Transfer Policy. 10. Relieving of employees under orders of request transfers 11. Implementation of financial compensation provision for transferred employees as

per Bipartite Settlement 12. Release of Record Clerks Promotion 13. Withdrawal of ban on opening of new accounts under Tiny Deposit Scheme 14. Provision to Staff Welfare Fund as per Government guidelines 15. Implementation of back to home state transfer to officers on completion of three

years of service outside the home state as per policy. 16. Implementation of Government guidelines on North Eastern transfers. 17. Release of Appeal promotions

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18. Scrapping of the provision of probation on scale promotion. 19. Fitment to promotee officers 20. Disposal of the pending appeals under the Disciplinary proceedings 21. Payment of Gratuity to the officers who are compulsorily retired from service. 22. Elevation of Graduated Part-time Sweepers as Clerical Staff 23. Implementation of Career Path to Sweepers 24. Removal of approved hospital criteria for reimbursement for hospitalization. 25. Provision of required number of computer nodes / pass book printers to all CBS

branches 26. Conversion of permanent Part Time Sweepers into Sub-Staff 27. Newspaper to Permanent Part Time Sweepers.

Yours faithfully,

Signed by all the constituents of UFBU – Indian Bank.

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Cir. No: AI/26/2004-2007 Date: 22 08 2006 TO ALL MEMBERS PLEASE CIRCULATE

Dear Comrades,

We reproduce hereunder the text of UFBU Circular No.30, dated 16th August 2006, on the Industry-wide one day token strike on the issue of 2nd option on Pension and other major issues for the information of members. We request all our members to actively participate in all the agitational programmes including the strike on 27.10.2006 and make it a grand success. Further developments in this regard will be informed as soon as we hear from our Apex body. With greetings, Yours comradely, T. T. NATARAJAN Secretary General

Text of UFBU Circular No. 30, dated 16th August 2006

INDUSTRY-WIDE ONE DAY TOKEN STRIKE ON THE ISSUE OF 2ND OPTION ON PENSION AND OTHER MAJOR ISSUUES

1. The representatives of UFBU met at Bangalore on 16th August 2006 to take stock

of the general situation prevailing in the banking industry and also to work out the future strategy of unions in tackling some of the urgent issues confronting the employees and officers of the banking industry. Com Shantha Raju, Convenor of UFBU proposed that Com R J Sridharan, General Secretary, AIBOA may preside over the meeting. Com C H Venkatachalam seconded the proposal; Com R J Sridharan took the chair.

2. During the discussions on various developments in the banking industry,

the representatives of UFBU made the following points:

a) The strike in the banking industry by the three constituents of UFBU – namely AIBEA, AIBOA and BEFI on several issues related to the initiative of the Government to bring certain amendments to Banking Regulation Act, Subsidiary Banks’ Act, Outsourcing initiatives etc., was a thunderous success. The issue came up for discussions in the Parliament and the reply of the Hon’ble Minister for Finance did not satisfy the members of the House and there was a walk out on

UFBU LAUNCHES AGITATION ON THE ISSUE OF 2ND OPTION on PENSION

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the question of putting through some of these amendments. It resulted in compelling the Ministry of Finance for holding a meeting on the issue.

b) The strike received a lot of publicity and also the fraternal support of all the unions in the UFBU and for the first time a meeting was held between the Government and the representatives of UFBU. It is a forward movement and the first instance where the Hon’ble Finance Minister himself participated in the meeting.

c) Though for the time being there is a slight respite the threat of amendments to the

various enactments is still very much alive. We need to maintain our campaign and join the mainstream viz. the struggle launched by the Sponsoring Committee of Trade Unions comprising the Central Trade Union Organizations, which has been spearheading several of our issues as well.

At banking industry some of the issues which were discussed between the IBA and the UFBU, in particular Compassionate Appointment, is still unresolved. There is a deliberate attempt on the part of the IBA to delay the issue being resolved. d) Issue of 2nd option on Pension still remains unresolved. The IBA has failed to

come out with further meetings as assured by them. The members are restless and there is a need to take stronger measures to force the issue. In the meanwhile, the Government has circulated a fresh scheme the contributory pension which is opposed to the existing scheme in the banks. The UFBU should immediately resort to agitation on this issue.

e) Outsourcing has become a major irritation. The entire banking functions are

sought to be outsourced. The jobs are getting shrunk. The Hon’ble Minister for Finance was trying to mislead the Parliament stating that only the Non-Core functions are being outsourced. However, the classification of core-issues and non-core issues is such that except certain corporate functions, all other routine functions where the major chunk of employees are employed are sought to be outsourced. It has to be fought tooth and nail.

f) The banking industry is suffering on account of shortage of staff and officers.

The managements of the banks instead of outsourcing should ensure adequate recruitment of staff.

g) The threat of merger and acquisition which is not in the interest of the industry is

still being pursued by the Government. The UFBU should fight against this menace.

h) Another serious issue is the dilution of the cap on voting rights and putting

through necessary amendments to the Banking Regulation Act with a view to provide opportunity for FDI to increase their stakes in the banks.

i) There is a continuous attack on trade union rights in several banks. The ongoing

agitation in Central Bank of India, the struggles launched in Indian Bank, Allahabad Bank, Bank of Baroda jointly by the unions are clear trends in

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the style of the managements in the banking industry. UFBU should take cognizance of these developments and take appropriate stand on all these issues.

3. After detailed discussions on the various points made by the members, the

meeting decided unanimously that UFBU should commence immediate struggle on the following burning issues.

1) Introduction of 2nd option on pension scheme and rejection of the

Government directed scheme. 2) Implementation of Compassionate Appointment Scheme as per the

bilateral discussions between the IBA and UFBU. 3) Stop outsourcing and commence recruitment to fill the shortage of

employees and officers in the banking industry. 4) Threat of merger and Acquisition of PSBs. No dilution in the ceiling of

voting rights as provided in the Banking Regulation Act. 5) Attack on Trade Union rights

It was unanimously decided to observe the following action programme Centralized rallies and demonstrations at all State Capitals 05 10 2006 A delegation to IBA by the leaders of UFBU 05 10 2006 Memorandum to the Banks Heads 16 10 2006 Postering campaign and badge-wearing 05 10 2006 to 17 10 2006 Dharna at all State Capitals 18 10 2006 One day token strike 27 10 2006 Comrades, the draft memorandum, the poster and badges will be forwarded in due course. The campaign and preparations should commence right now. The preparations for the struggle should be taken up by all our comrades on a war footing. The issues are dear to all of us. The evil designs of IBA and the managements to deny our legitimate demands should be fought with full force at our command. There is no question of looking back. Let us march forward and take the struggle to its logical end.

COM SHANTHA RAJU, CONVENOR – RETIRES

COM P K PATNAIK, GENERAL SECRETARY, NCBE – Elected as Convenor In an emotional atmosphere, the present convenor Com Shantha Raju, expressed his desire to step down from the position on account of his retirement from the bank on Superannuation on 31 08 2006. The representatives of UFBU while appreciating the services of Com Shantha Raju, to the banking fraternity placed on record the valuable services rendered by him to the bank employees’ and officers’ movement while carrying on his responsibility as the Convenor of UFBU during the last four and a half years.

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The meeting also decided to elect the new convenor to take over the mantle of UFBU. Accordingly, the name of Com P K Patnaik was proposed. Com. C H Venkatachalam, seconded the proposal. Com P K Patnaik was elected unanimously. Com P K Patnaik, while placing on record the services rendered by Com Shantha Raju, as the Convenor of UFBU assured to continue the good work done by him and sought the support of all the constituents of UFBU in the discharge of his responsibilities. The meeting ended with a vote of thanks to Com R J Sridharan, who presided over the meeting. With greetings, Sd/- Sd/ (SHANTHA RAJU) (P K PATNAIK) OUTGOING CONVENOR INCOMING CONVENOR

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Cir. No: AI/27/2004-2007 Date: 12 09 2006 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

Com Shantha Raju has stepped down from the post of General Secretary of AIBOC consequent to his retirement from the services of State Bank of India on 31 08 2006. Com Shantha Raju has served as General Secretary of the All India State Bank Officers’ Federation, (AISBOF), All India Bank Officers’ Confederation (AIBOC), Convener of UFBU and AICUFFS for a long period and he leaves an indelible imprint of an eventful period in the history of Bank Officers’ and Employees’ Movement. Our All India Indian Bank Officers’ Association records its deep appreciation for the yeoman services rendered by Com Shantha Raju and thanking for the patronage extended to our Organization. The Executive Committee of AIBOC which met at Bangalore on 28th and 29th of August 2006 has unanimously co-opted Com Amar Pal, the President of All India State Bank Officers’ Federation, (AISBOF) and Joint General Secretary (AIBOC), as General Secretary of AIBOC for the remaining Triennial period in the place of Com Shantha Raju. Com Amar Pal, President of the AISBOF is a popular leader among the affiliates of the Confederation by virtue of his long standing experience in the leadership of the Federation. He is also the Officer-Director on the Board of State Bank of India as nominee of the All India State Bank Officers’ Federation. His long stay on the Confederation as one of the senior office-bearers of the Federation became an added strength of his ability to lead the Confederation. Com G D Nadaf, who was recently elected as the General Secretary of the All India State Bank Officers’ Federation has been co-opted as the Joint General Secretary of the AIBOC. He is a senior popular leader from the All India State Bank Officers’ Federation. He was also well known amongst the trade union fraternity in the Banking Industry through his long standing contribution to the Bank Officers’ Movement. We wish Com Amar Pal and Com G D Nadaf ALL THE BEST and look forward for an eventful period. With Greetings, Yours comradely, T. T. NATARAJAN Secretary General

COM SHANTHA RAJU RETIRES, COM AMAR PAL TAKES OVER GENERAL SECRETARY

OF AIBOC

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Cir. No: AI / 28 / 2004 – 2007 Date: 30 09 2006 TO: ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

We draw the attention our members to the circular no. AI / 26 / 2004 – 2007 dated 22 08 2006, reproducing the text of UFBU Circular on the Industry wide one day strike on the issue of 2nd option of pension and other major issues. UFBU has now served the strike notice dated 09th September 2006 to the Chairman of the IBA along with the statement of case. We reproduce the same for the information of members. We request all our members to actively participate in all the agitational programmes culminating in the one day Strike on 27.10.2006 and ensure its grand success. With Greetings, Yours Comradely T T NATARAJAN SECRETARY GENERAL

TEXT OF UFBU STRIKE NOTICE

UFBU/08/2006 09.09.2006

FORM – 1 NOTICE OF STRIKE Name of Unions United Forum of Bank Unions (UFBU)

- 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 Organization of Bank Workers (NOBW)

STRIKE ON 27TH OCTOBER 2006 STRIKE NOTICE SERVED

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- National Organization of Bank Officers (NOBO) Names of Elected 1 Sh. Profullo Kumar Patnaik, Convenor, UFBU & Representatives: General Secretary, NCBE 2. Sh. C.H. Venkatachalam, General Secretary, AIBEA 3. Sh. Amar Pal, General Secretary, AIBOC ` 4. Sh. R J Sridharan, General Secretary, AIBOA 5. Sh. S. Bardhan, General Secretary, BEFI 6. Sh. Subhash Swant, General Secretary, INBEF 7. Sh. K. K. Nair, General Secretary, INBOC 8. Sh. K. R. Poonja, General Secretary, NOBW 9. Sh. Bapu Joshi, General Secretary, NOBO Dated this day of 09th September 2006 The Chairman Indian Bank’s Association World Trade Centre, 6th Floor, Cuffe Parade, Mumbai. Sir, In accordance with the provisions contained in sub-section (1) of Section 22 of the I.D. Act – 1947, we hereby give you notice that the members of all the constituent Unions of the 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 27th October 2006 demanding –

1. Introduction of SECOND OPTION on Pension Scheme and rejection of the Government Directed Scheme.

2. Implementation of Compassionate Appointment Scheme as per bilateral discussion between IBA and UFBU.

3. To discontinue outsourcing and commencement of recruitment to fill the acute shortage of Employees and Officers in the Banking Industry.

4. Not to take any step of merger and acquisition of Public Sector Banks and dilution in the ceiling of voting rights as proposed in the amendments to the Banking Regulation Act.

5. Stoppage of attacks on Trade Union Rights.

Sd /- (Prafullo Kumar Patnaik) Convenor

Copy forwarded to the Chief Labour Commissioner (Central), Shram Shakti Bhawan, Rafi Marg, New Delhi.

Sd /-

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(Prafullo Kumar Patnaik) Convenor Enclosure: 1. Statement of the Case 2. Details of Agitational Programme

DETAILS OF AGITATIONAL PROGRAMME

Centralized rallies and demonstrations at all State Capitals : 05.10.2006

A delegation to IBA by the leaders of UFBU : 05.10.2006

Memorandum to the Banks Heads : 16.10.2006

Postering Campaign and Badge- Wearing : 05.10.2006 to 17.10.2006

Dharna at all State Capitals : 18.10.2006

ONE DAY TOKEN STRIKE : 27.10.2006

STATEMENT OF THE CASE

The UNITED FORUM OF BANK UNIONS (UFBU) is the apex umbrella Organization of the entire 9 Employee’s and Officer’s Organization in the Indian Banking Sector representing 100% membership. It has been determining the service conditions of Employees and Officers through negotiation with the Indian Bank’s Association (IBA) which represent management of all Banks.

ISSUES

1. Introduction of 2nd Option on Pension Scheme and rejection of the Govt. Directed Scheme.

UFBU have been demanding one more option for pension for those employees / officers who could not exercise their option earlier. Though IBA maintained their stand for long time not to consider the demand of UFBU but it agreed to discuss the alternatives with UFBU to resolve the issue. The declining of interest rate of deposits was one of the major factors compelling the Unions to demand for PF optees to switch over to Pension in lieu of the PF the issue was again and again raised during negotiation of 8th Bipartite and specific assurances were held out by IBA to settle the issue amicably. Accordingly it has been a part of the 8th Bipartite also. But to our surprise the IBA has recently forwarded a proposal to all member Banks advising them to explore possibilities of introduction of the Scheme in their respective Banks at a time when the issue is still under discussion with UFBU. This unilateral decision of the IBA to introduce any alternative scheme is strongly opposed by us. We urged upon IBA to withdraw the instructions issued to the member Banks. In this connection we reiterate that:

The Pension Scheme in Banks was introduced by IBA after a detailed discussions and settlement at Industry level with Officers and Workmen Unions.

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The Pension Scheme in the Banking Industry is an exclusive one and cannot be compared with any other scheme available outside the Industry.

The pension Scheme introduced in Banking Industry is in lieu of PF. Those who were willing to opt out for Pension were required to surrender their PF.

The Pension Scheme in the Banking Industry is akin to the one introduced in RBI and Insurance Sector,

The new proposals of Defined Contributory Pension Scheme, is quite contrary to the prevailing Scheme. We strongly oppose such scheme of IBA / Govt. and demand the Govt. / IBA to withdraw the proposal and allow 2nd option to those willing employees without any further delay.

2. Implementation of Compassionate Appointment Scheme as per Bilateral discussion between IBA & UFBU.

The Compassionate Appointment Scheme was introduced in the Banking Industry as a social security measure benefiting the bereaved families of the deceased employees. Gradually the scheme was diluted and the appointments were restricted to the barest minimum. In other words, the revisions made in the scheme was aimed at elimination rather than fulfilling the requirement of bereaved families. The dilution in the scheme provided scope for arbitrariness and caused serious set back to the long established harmonious industrial relation. The issue was raised both at Bank level as well as Industry level and also several rounds of discussions took place to retain the scheme. Since there was no positive response from the IBA and finding no other alternatives the UFBU was compelled to resort to agitation to check the unilateral decision of IBA. IBA gave commitment before the conciliatory authority of Labour Department, Govt. of India to resolve the issue bilaterally but has failed to do so.

3. Stop outsourcing and commence recruitment to fill the shortage of Employees and Officers in Banking Industries.

Several initiatives of Management in Banking Industry to outsource core functions of Banks have become a matter of serious concern for us. It is observed that very regular and routing works of the Banks have been given to outside agencies unmindful of the consequences the industry is going to face. It is bound to expose the confidentialities of the clients and adversely affect the Banks. Obviously outsourcing of regular and routine work will bound to adversely affect recruitment of regular employees / officers. Despite our several requests and persuasions not to go ahead with outsourcing the regular routine work and to recruit employees and officers as per needs of the Banks, Management of the Banks failed to respond to our legitimate and genuine demand.

4. Merger and Acquisition of Public Sector Banks and dilution of ceiling of voting right.

More than 10 lakhs Officers and Employees under the banner of UFBU have been exhibiting their anguish over the initiatives of Govt. and Reserve Bank of India towards acquisition and merger of Public Sector Banks. Despite resentment

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exhibited, it is a matter of concern that instead of considering the genuine and logical approach of the unions against acquisitions and merger, it is evident from the media reports, statements of Govt., RBI & IBA authorities, that they are bent upon in going ahead with their agenda. It is pertinent to mention that the Banks were nationalized with the objective of reaching to common masses and to uplift their social economic condition. Therefore, expansion of Banking Services was widened and the present move of merger and acquisition will bound to upset the very objective.

Again the proposal of the Govt, for amendment of Banking Companies Act with specific objective of removing the ceiling on voting right has been another step towards handing over the Banking Industry to the hands of vested interest and Private Ownership. The UFBU is totally opposed to such move of the Govt., RBI and IBA, since it is neither in the interest of the Country nor the Industry and Employees as well.

5. Attack on Trade Union Rights.

There are umpteen evidences of continued attacks on Trade Union Rights in different Banks aimed at de-unionization. The ongoing agitation in different Banks in the Country by Unions, speak volume of it. While UFBU is committed to the growth and prosperity of the Industry, it can not remain as passive onlooker on such anti Employees / Officers union attitude of the management. UFBU therefore demanded the Managements to desist from such ANTI-UNION activities and restore peace and harmony for development of the Industry and the Country’s economy as well.


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Cir. No: AI/29/2004-2007 Date: 31 10 2006 TO ALL MEMBERS PLEASE CIRCULATE 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 27th September 2006. In this connection, we recall the attention of our members to the reservations we had in respect of the earlier policy as too much thrust was given to the Written Test which in reality was going against the field level functionaries who could not spare more time for preparing adequately for the written test. There was also a feeling that the policy was bound with too many restrictions. In the above background, we sincerely feel that the present policy will be seen as a balanced one, as all candidates will be treated as equals at the entry point of appearing for the written test and they will have a level playing field. Likewise, the need to create a favourable age profile of officers’ to lead the Bank in the days to come and to succeed in the market competition has been taken care of in this policy. The salient features of the policy are:

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

There is only one channel of promotion The basis for promotion is on overall assessment through Written Test

(40%), Performance Appraisal Report (40%) and Interview (20%). The Officers must secure a minimum of 40% each in Written Test,

Performance Appraisal and Interview. The Officers should secure an aggregate minimum of 60% in the three

qualifying factors i.e. Written Test, Performance Appraisal and Interview put together for final selection.

Written Test for Specialist Officers will be in the respective areas of specialization as well as in Banking related areas.

The cut off date for reckoning the eligibility criteria shall be informed during every promotion process.

A defined appeal mechanism process has been introduced.

FRESH PROMOTION POLICY ARRIVED

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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. We understand that the Bank’s Board, in its meeting held on 30th October 2006 had approved the policy with some minor modifications. 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 booklets without any delay. Last time, we have come out with a comprehensive booklet for the benefit of the candidates and this time we will be coming out with a supplement carrying out the corrections, if any, modifications/additions etc., to serve the purpose of updation. Coaching Classes will be arranged in important centres. We take this opportunity to thank our Chairman & Managing Director, Executive Director, 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 / 30 / 2004 – 2007 Date: 21. 11. 2006 TO: ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

The strike observed on 27th October 2006, was a great success and the Banking Industry was brought to a grinding halt. Yet another glorious chapter has been added to the struggle launched by the Unions in the Banking Industry under the banner of UFBU. Whether the Government will review their stand and retreat from the path of confrontation? Whether one more option for pension will come? Whether Compassionate appointment scheme will be revived? We know that these questions are in the minds of the members, but the Government seems to be in no mood to relent. In this background the UFBU met at Chennai and chalked out the further course of action. The text of the UFBU circular is reproduced for the information of the members. Members are aware that AIBOC has formed an Independent Commission on Banking and Financial Policy in the year 2004. The interim report of the Commission has already been circulated to the members. We are happy to inform that the Commission has released its final report in a function held at Mumbai on 7th November 2006. In this regard the text of the circular issued by AIBOC is reproduced for the information of the members. We note to keep the members informed of further developments. With Greetings, Yours Comradely T T NATARAJAN SECRETARY GENERAL

1. UFBU MEETING HELD AT CHENNAI ON 9TH November 2006

2. INDEPENDENT COMMISSION ON BANKING & FINANCIAL POLICY

FINAL REPORT RELEASED

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UFBU MEETING HELD AT CHENNAI ON 9TH NOVEMBER 2006

(Text of UFBU Circular No.39 dated 10.11.06)

1. A meeting of the constituents of UFBU was held at Chennai on 09th November, 2006.

2. The meeting was presided over by Shri. K. K. Nair, General Secretary, INBOC. The following members were present.

S/Shri i) C H Venkatachalam (AIBEA) ii) Amar Pal (AIBOC) iii) G D Nadaf (AIBOC) iv) L Balasubramanian (NCBE) v) R J Sridharan (AIBOA) vi) S Bardhan (BEFI) vii) Subhash Sawant (INBEF) viii) K R Poonja (NOBW) ix) Bapu Joshi (NOBO)

3. The members were of the unanimous view that the strike on 27.10.2006 has been a thundering success throughout the country. Banking transactions have been brought to a grinding halt. Clearing houses did not function and cheques to the tune of several crores of rupees were piled up. Bankmen held massive rallies and demonstrations. They also held press meetings at several places which were addressed by the leaders of the local units of UFBU.

4. The response of the IBA / Government however has been casual and luke-warm. Despite UFBU’s willingness to share a part of the additional cost, if any, the authorities are unwilling to budge from their negative stand. This has thoroughly frustrated the workforce which has been demanding a second option on Pension and which has been conceded by Managements in RBI, GIC etc. As if this is not enough, the Government is seeking to introduce the new contributory Pension scheme for bankmen also. New irritants have been added to the bankmen’s woes like shortage of man-power, outsourcing, amendments to several legislations, setting up of National Payment Corporation of India and several other anti-labour measures seeking to curb their hard earned trade-union rights.

5. The members present at the meeting were of the unanimous view that intensification of the agitation is the only course open to us. In the course of discussion on the issue of second option on pension, Compassionate Appointment, attack on Trade Union Rights etc. the following action programmes were suggested.

i) Mass Mobilization of Membeship ii) Public Awareness Campaigns iii) Submission of Memorandum to MPs iv) 2 days Preparatory Strike v) Morcha to Parliament during the winter session vi) Indefinite Strike

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6. After detailed discussions on the various suggestions made by the representatives of the constituents of UFBU, it was unanimously decided as under:

Extensive Campaign: The leaders of UFBU will lead delegation to the IBA, the Government and also the Members of Parliament etc. to convey our strong resentment over the delay in resolving some of the outstanding issues.

A Massive Morcha by the members of the constituents of UFBU in the middle of December during the winter session of the parliament at Delhi to draw the attention of the Parliament and Government and seek their intervention to resolve the pending issues such as 2nd Option on Pension, Compassionate Appointment etc. The exact date and venue will be advised in due course.

Country-wide demonstrations at all State Capitals and major centres on the day of Morcha to the Parliament.

State level programme and campaign in the month of January and February 2007 – meeting the members of Parliament and all other important personalities and submission of a Memorandum seeking their intervention in the matter. The State level and District level rallies, seminars and Conferences all over the country. The detailed programme will be advised in due course.

Strike action: If the Campaign fails to evoke any response – the UFBU leadership will come out with a strike Programme in the month of March – during the budget session and will go for continuous strike including indefinite strike.

7. Strategic Alliance: It was decide that the copies of MOU signed between the partners of the Strategic Alliance should be studied by the representatives of the UFBU. The copies to be forwarded to the representatives by the convenor. Thereafter a view will be taken in the next meeting as to the future course of action.

8. Attack on Trade Unions: It was also agreed that the Convenor will send a communication to the Chief Executives of all Banks drawing their attention to such attacks and expressing concern of the UFBU and urging upon the authorities to avoid such attacks on the Unions in their respective Organizations.

9. The constituents of UFBU and their affiliates will meet during the last week of November / first week of December and chalk out further programme. Till then, we call upon our militant membership to keep themselves ready to plunge into any organizational activity at short notice.

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INDEPENDENT COMMISSION ON BANKING & FINANCIAL POLICY FINAL REPORT RELEASED

(Text of AIBOC Cir. No. 78 dated 08.11.06)

1. It is another golden chapter in the history of our great movement. The All India Bank Officers’ Confederation will be remembered for its concern for the people of the country and its contributions in resisting several changes that are being forced on the economy of the country in the name of financial reforms. Shri S P Shukla, Chairman of the Commission while releasing the final report of the Independent Commission on Banking and Financial Policy, gave a brief outline of the background in which the Independent Commission was constituted and the salient features of the findings of the Commission on the structure of banking, its contribution and the need to sustain it in the manner before the commencement of the financial reforms to the accredited representatives of the print and electronic media at Mumbai Press Club where a large number of members of the Press had gathered to witness the release of the Report. The other members of the Commission, namely Dr. C P Chandrasekhar, Dr. S L Shetty and Prof. Prabhat Patnaik were present in the meeting.

2. The members of the Commission spoke on various contributions of the Banks under the ownership of the Government, their initiative in providing financial assistance to the masses of this country in particular the rural population in the interior parts of the country. The members also highlighted the success story of green revolution, the micro financing etc, until the advent of so-called reforms in the financial sector. The media representatives participated in the free and frank discussions and raised several issues related to banking and financial policies and wanted to know the alternatives. The members of the Commission clarified all the queries and emphasized the need for giving a wide publicity to the alternatives suggested by the Commission so that there should be a public debate on the current changes thrust by the Government.

3. The Maharashtra State Unit had made excellent arrangements for the release of the report in a glittering atmosphere. The ledership of the Confederation led by Com R C Agarwal, President Com Amar Pal, General Secretary, Com T R Bhat and Com G D Nadaff, the Joint General Secretaries were also present on the dais. The occasion was also utilized to honour the members of the Commission for their yeomen service in the completion of the Report which is a land mark in the history of our movement.

4. Com A K Jana, former President along with Com Shantha Raju, the former General Secretary and the doyen of the Confederation were special invitees on the occasion. They were also felicitated on the

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occasion for their excellent contribution in conceiving and encouraging the completion of the task of the Independent Commission during their stay in the office.

5. The Commission was established in the year 2004 after a detailed discussion and debate in our Working Committee and Executive Committee. The Commission consisted of the following members:

Shri S P Shukla – Former Finance & Commerce Secretary, Government of India: Chairman

Prof Amiya Bagachi – Director, Institute of Development Studies, Kolkatta: Member

Prof. Sushil Khanna – Indian Institute of Management, Kolkatta: Member

Prof. Prabhat Patnaik – Professor of Economics, (JNU – Delhi): Member

Dr. S L Shetty – Director, EPW Research Foundation, Mumbai: Member

Dr. N A Majumdar – Ex. Principal Advisor, RBI: Member

Prof. C P Chandrasekhar – JNU Delhi: Member

Dr. N K Thingalaya, former CMD, Syndicate Bank, Manipal: Member

6. The Commission submitted its interim report during the year 2005. The interim report evoked a spontaneous response and public debate all over the country. In order to facilitate public participation the Commission held public sittings at all major centres and provided an excellent forum for the public to air their views.

7. Com T R Bhat and Com G D Nadaf, provided excellent secretarial assistance and coordinated the functioning of the Commission. Thus a glorious chapter of the Bank Officers’ movement has since been opened by the Confederation. The report has now become a public document and it is the duty of each and every affiliate / State Unit / member to utilize it as a campaign material for creating awareness amongst the public at large. Sufficient number of copies of the report will be supplied to all affiliates for distribution amongst eminent personalities of the society. We request all our affiliates / members to popularize the report.

____________________________________________________________________

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CIR. NO: AI/30/2004-2007 DATE: 01 01 2007 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades, Yet another Year had slipped into the History. The New Year 2007 has dawned. We deem it our privilege to greet each and every one of you and your family members. Looking back, the year 2006 was one of sharp contrast, ups and downs. The neighbourhood Nepal witnessed the people’s power bringing an end to Gyanendra’s autocratic rule. Violence continues to rock Sri Lanka as the ceasefire between the Army and LTTE collapsed. India’s first ever bid to get one of its citizen elected to the post of Secretary General of United Nations did not succeed as India’s candidate Shashi Tharoor has to bow out of the race. The great satisfying event was the Nobel Peace Prize awarded to Bangladesh’s Mohammed Yunus, Grameena Bank founder and Banker to the poor. On the National front, the UPA Government continues the reforms agenda wishing away the pro people and pro worker promises committed under the Common Minimum Programme. Nearly 1.37 lakh farmers have committed suicide in the past 10 years. The Government remains unmoved. Stock Market variation is the Government’s prime concern. The agenda of the Government that India should aim to become an economic and military super power appears to be flawed. As long as hungry, naked children beg in the shadows of giant glass and concrete structures housing multinationals, poor backward villagers get hacked to death and the State and Media are disinterested witnesses, and people’s legitimate protest fearing displacement and loss of livelihood are brutally silenced. India’s dream of becoming a super power on any count will remain as a cruel joke fashioned by the rich and powerful. It’s time that we reject the logic of armed competitive capitalism. As a nation, we should be primarily interested in the fate of the living human beings, their record of survival, welfare and freedom. This can be achieved only by working class, upon their assuming the role of unmasking the real face of the Government – How it works, for whom it works, against whom it works, who pays and who profits. Banking Industry witnessed industrial unrest with employees and officers striking work on the demands of restoration of compassionate appointments, second option for pension and opposing the outsourcing. There is no meaningful response from the IBA Government combine. The Independent Commission on alternative Banking and Financial Policy, commissioned by AIBOC submitted its final report on 7th November 2006. The year witnessed the change of guard at AIBOC with the retirement of Com Shantha Raju, doyen of Officers’ movement. Com Amar Pal has been co-

FAREWELL 2006 *** WELCOME 2007

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opted as the General Secretary of AIBOC. The employees and officers of State Bank of India successfully observed 7 days continuous strike on the issue of revision of pension and arrived at a settlement. It is high time that we set our eyes on realizing the demand of compassionate appointments, second option for pension and wage settlement which is due in 2007. Coming to our mother Institution, Indian Bank, it is a momentous time as we walked into our 100th year on August 15th 2006. The Centenary Year Celebrations was befittingly launched with His Excellency, the President of India, Dr A P J Abdul Kalam unveiling the Bank’s Mission statement that we are a Common Man’s Bank, in a glittering function held on 04 09 2006. Each and every employee carries a sense of pride about their bondage with the Bank and they naturally expect that their life time association will be acknowledged and suitably honoured. The Bank has paid a dividend of 20% of Net Profit i.e. Rs.101 crores to Government of India after a gap of 12 years. Bank has entered into a Strategic Alliance with Corporation and Oriental Bank of Commerce. We have to wait and watch this development closely. Bank is planning to enter capital market by way of IPO. On the Bank level issues, the greatest departure that took place in 2006 was non- implementation of agreed policies and guidelines. Repatriation did not take place, the Government guidelines in respect of North-Eastern Transfers were not honoured and pre retirement transfers were not issued. Similar was the experience faced by award staff and thus an agitation was launched under the banner of UFBU – Indian Bank. Discussions took place on the issues of agitation and a settlement was arrived on 5th August 2006. The assurances given by the Management are partially fulfilled and we expect that the assurances will be honoured in letter and spirit. A fresh Promotion Policy was signed on 27 09 2006 and the promotion examinations are likely to take place in January / February 2007. We hope our long craving for a transparent transfer policy will materialize atleast in 2007. On the vigilance front, there is marked improvement, thanks to the positive orientation shown by the Chairman & Managing Director, Dr K C Chakrabarty, Executive Director, Shri M S Sundara Rajan and Chief Vigilance Officer, Shri M Damodar Kamath. However, our grave concern on the increasing number of frauds and involvement of insiders continues. It needs introspection on the part of every employee and its time that every one resolves that we will not trade on our ethics and morales. Before we conclude, we cannot remain silent to the too much pressure exerted on Branch Managers and Officers in the name of performance. Another factor is the abuses hurdled by some controllers. This treatment is taking its toll and many good officers are giving up and leaving the Institution. It is time that the Management realizes that success is achieved if power is transformed into participation and control into cooperation. It is the only culture that motivates the

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employees and binds them with the Institution - not force, not even rewards. Let us hope that changes will take place towards creation of such a culture in the year 2007. We once again wish you and your family members a Happy & Prosperous New Year. With Greetings, Yours comradely, T. T. NATARAJAN Secretary General

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Cir. No: AI / 32 / 2004 – 2007 Date: 25.01.2007 TO: ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

Members might be aware that the Officers and Employees of Central Bank of India are on agitation. The Management of Central Bank of India under the leadership of the new Chairperson is trying to create a Union Free atmosphere. The Management has transferred the Officer Bearers of the recognized Unions, withdrawn the special leave facility available to the Office Bearers under the Industry level agreements and all types of Bi-partite understandings and agreements are attempted to be cancelled.

In the above back ground 8 unions functioning in Central Bank of India have formed UFBU and chartered out an action programme. The Executive Committee of AIBOC which met at Hyderabad on 04th and 05th January 2007, viewed the developments seriously. AIBOC is of the firm view that the developments in Central Bank of India cannot be viewed in isolation and it has to be seen as design as to what is in store for the Industry. Hence AIBOC has decided to extend all support to the Officers and Employees of Central Bank and also to observe one day support strike in case the Central Bank of India Officers and Employees goes on indefinite strike. The Officers and Employees of Central Bank have already observed badge wearing, display of posters, demonstrations before ZOs and COs and one day token strike.

The following action programme is further planned: ZONAL STRIKES announced by Central Bank Unions:

DATE: ZONES TO BE ON STRIKE 02.02.2007 – FRIDAY MUMBAI & HYDERABAD

05.02.2007 – MONDAY MUZAFFARPUR & PATNA 07.02.2007 – WEDNESDAY CHENNAI & AHEMEDABAD 09.02.2007 – FRIDAY DELHI & CHANDIGARH 13.02.2007 – TUESDAY KOLKATA & GUWAHATI 19.02.2007 – MONDAY NAGPUR & PUNE 21.02.2007 – WEDNESDAY BHOPAL & RAIPUR 23.02.2007 – FRIDAY AGRA & LUCKNOW

Demonstrations at all other ZOs / ROs during 2nd and 23rd February, 2007 - Deputations and submission of Memoranda at ROs during February, 2007 - Further strikes including continuous strikes in March, 2007.

We call upon our members to extend all support to the fighting comrades of Central Bank of India by joining the protest action programmes in large numbers in all centres.

With Greetings,

Yours Comradely

T T NATARAJAN SECRETARY GENERAL

AGITATION IN CENTRAL BANK OF INDIA BY EMPLOYEES AND OFFICERS

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We draw the attention of our members to our earlier Circular No.AI/32/2004-2007 dated 25 01 2007 on the ongoing agitation in Central Bank of India. The Management of Central Bank of India and the IBA / Government combine are adopting an approach of deliberate silence and hence it has become the responsibility of the United Forum of Bank Unions to send the correct message to the IBA and Government that the Officers and Employees in the Banking Industry will not remain as spectators to the terror unleashed by the Central Bank of India Management. UFBU, at its meeting held on 30th January 2007 has unanimously decided to extend fraternal support to the fighting comrades of Central Bank. Accordingly, it was decided to observe a supportive strike by the entire Bank Officers and Employees throughout the country on 23 02 2007. UFBU’s Circular No.5 dated 31 01 2007 is enclosed for the information of our members. Comrades, the Officers and Employees of Central Bank of India are in a heroic struggle to defend the Trade Union Rights. The success of the struggle is going to determine the survival of the Trade Union Movement in the Banking Industry. We call up on our rank and file to observe a Total Strike on 23 02 2007 to send a loud and clear message to the Central Bank of India Management, IBA and the Government of India. Onward March to the Success of the Glorious Strike on 23 02 2007. With Revolutionary Greetings,

Yours Comradely T T NATARAJAN SECRETARY GENERAL

ALL INDIA STRIKE ON 23RD FEBRUARY 2007

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Cir. No: AI / 34 / 2004 – 2007 Date: 21.02.2007 TO: ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

Members are aware that Banking Industry witnessed industrial unrest with Officers and Employees striking work on the issue of 2nd option on Pension and restoration of Compassionate Appointment in 2006. But there has been no positive and forward movement on these issues. UFBU in its meeting held on February 11, 2007 at Mumbai has decided to take further course of action for realization of these long pending demands. Accordingly, it was decided to go on a Country-wide Strike on the issue of Pension, Compassionate Appointment, etc. for 3 three days on 28th, 29th and 30th of March 2007. We reproduce herewith the extract of UFBU’s circular for information of members in respect of action programme connected with three days strike action in March 2007. Let us gear up for the strike on a war footing basis. We request all our members to actively participate in all the preparatory agitational programmes whole-heartedly and ensure the total success of the Strike. With Greetings, Yours Comradely


UFBU CALL FOR COUNTRY-WIDE STRIKE ON 28TH , 29TH & 30TH MARCH 2007

AND IN DEFINITE STRIKE FROM 3RD MARCH, 2007

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EXTRACT OF UFBU CIRCULAR NO. 7 DATED 13TH FEBRUARY 2007

CIRCULAR NO.07 13.02.2007

INDUSTRY-WIDE AGITATION ON 2ND OPTION ON PENSION, COMPASSIONATE APPOINTMENT, ETC.

UFBU DECIDES UPON 3 DAYS’ STRIKE ACTION ON 28TH, 29TH AND 30TH MARCH 2007 PRPARATION FOR STRIKE TO GO ON WAR FOOTING

A meeting of the leader of the United Forum of Bank Unions was held at Mumbai on 11th February 2007, as declared earlier to discuss the issue of 2nd Option on Pension, Compassionate Appointment and other issues of 27th October 2006 Strike, and to take further course of action for realization of the long pending demand of the Employees and Officers of the Banking Industry. Com. L. Balasubramanian, President NCBE presided over the meeting. 2. Com. P. K. Patnaik, the Convenor of United Forum of Bank Unions briefing the members referred to the casual attitude of the Indian Banks’ Association and failure on the part of the Government to issue proper directions for resumption of discussions on the issue of 2nd Option on Pension Scheme. He was also critical about the lack of initiative on the part of the representatives of Indian Banks’ Association to come forward with its proposal as was agreed at the time of 8th Bi-partite settlement. The IBA has just completed the formality by forwarding the new scheme circulated by the Government to all the Banks though the UFBU has taken a strong exception to the scheme and has opposed the new scheme in toto. Hence, he requested the leaders to come out with their views and suggestions for taking the issue to a logical end.

3. Com. Patnaik further expressed his displeasure on the apathetic attitude of IBA and Government as well on the core issue i.e. Compassionate Appointment. The lackadaisical approach of the IBA / Govt. on the issue, which was introduced in the Industry as a social security measure, has not only pushed the members of the bereaved family to virtual starvation but also irked the rank and file. Scant regards shown by the IBA / Govt. to the sentiment expressed by the UFBU at the Industry level in resolving the issue, has forced the members to have firm opinion that nothing short of agitation would bring about any solution.

4. Members were also very much critical on the inaction of IBA / Govt. to resolve the demand of UFBU for recruitment, which is not held in the Industry since a decade and everywhere the shortage of staff has affected the functioning of the Bank. At the same time the existing staff are over burdened and are forced to stay late without any legitimate compensation.

5. In course of discussions, the members were unanimous that the UFBU stand has been made clear to IBA and the Government. The IBA’s inaction or intention to push through the defined Pension Scheme forwarded by the Government is a clear message that they are not considering the demand of the UFBU on 2nd Option for Pension. The members also expressed their concern that due to the delay in the settlement of the above issues, a lot of frustration is developing amongst the rank and file and the time has come to go in for a strong agitation programme including strike action for longer periods. The members were also unanimous that any further delay in resolving the issues will adversely affect the interest of the Bank

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Employees and also would result in a serious set back to the united movement of the Bank Employees and Officers 6. After detailed discussion, agitation programmes on the following issues were finalized.

TO DEMAND

A) 2ND OPTION ON PENSION B) COMPASSIONATE APPOINTMENT SCHEME & C) RECRUITMENT OF STAFF

TO OPPOSE

OUTSOURCING

As regards other Common Issues like opposing merger and acquisition amendments to various acts like Banking Regulation Act, Labour Legislations etc. the fight will continue.

ACTION PROGRAMME

I. Not to attend office on weekly-off days and Holidays W. E. F. 15.03.2007

II. To take Morcha to Parliament on 12.03.2007

III. Lunch time Demonstrations: In front of ZO / HO / Branches on

28th February, 2007

05th March, 2007

12th March, 2007

21st March, 2007

26th March, 2007

IV. Meeting at different centers under the banner of UFBU between 12th and 24th March 2007

V. Wearing of Black Badges on 12.03.2007 and 26.03.2007

VI. COUNTRY-WIDE STRIKE ON 28TH , 29TH AND 30TH MARCH 2007

VII. INDEFINITE STRIKE FROM 3RD MAY 2007 7. It was also decided that for the sake of uniformity, the badges / posters, press statements, etc. will be printed by UBFU State Chapters and supplied to the constituents, the specimen of badge / poster handout, press statement etc. will be sent separately. 8. Comrades, it has been a long wait for the Employees and Officers in the Banking Industry. The warning signal sent through the successful one day strike on 27th October 2006, has not been properly responded by the IBA and the Government and hence the responsibility for the industrial unrest in the Banking Industry in pursuance of our above demands now squarely rests on the Indian Banks’ Association and the Government. Let us therefore go with full preparations for the successful implementation of our agitation programme to create enough pressure on

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the IBA and the Government to draw them to the negotiating table for an amicable settlement. 9. All our State Units and the Constituents of United Forum of Bank Unions should gear-up for this historic struggle to ensure victory to the Bank Employees’ Movement in the Country. Hence all our members and units are requested to rally round the organizational call and give effect to each and every direction of the United Forum of Bank Unions with full support and make it a grand success. 10. As regards submission of Charter of Demands, it was decided to finalize the charter by the middle of March and submit a common charter on behalf of Workmen Unions and Officers’ Organisations to IBA before the end of March, 2007. With revolutionary greetings,

Sd/-

(PROFULLO KUMAR PATNAIK) C O N V E N O R

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Cir. No: AI / 35 / 2004 – 2007 Date: 25.02.2007

TO: ALL MEMBERS PLEASE CIRCULATE

Dear Comrades,

We draw our attention to our earlier circulars no.AI-32 and AI-33 dated 25.01.2007 and 09.02.2007 respectively on the captioned subject. We are happy to inform you that the strike on 23rd February 2007 called by UFBU in support to the fighting comrades of Central Bank of India has been called off, owing to signing of minutes on 20.02.2007 by the Management of Central Bank of India. We reproduce the text of UFBU circular for the information of members.

With Greetings,

Yours Comradely


Text of UFBU Circular

The United Forum of Central Bank Unions have regained their hard earned trade union rights through series of Action Programmes against the adamant attitude of the Management. The struggle commenced with demonstrations, dharnas and a day’s countywide strike on 22.01.2007 which ended happily on 20.02.2007 by signing of minutes with the management on understandings on all the issues connected with their agitation. We congratulate and compliment all Unions in Central Bank of India on this achievement. They stood like a rock and faced all attacks boldly. The rank and file was ready for any sacrifice and to face the challenges. The United Forum of Bank Unions (UFBU) decided to stand behind them by declaring a day’s supportive strike on 23.02.2007, during the UFCBU’s continuous strike proposed from 22nd February, 2007.

Comrades the victory of trade unions in Central Bank of India is a message to those who would like to test the strength of Unions. “United We Stand” has yielded results and sent a strong message that no force on earth can divide the unity. In view of the amicable settlement in Central Bank of India, UFBU has called off proposed supportive strike in 23.02.2007. We once again salute unions in Central Bank of India and all our constituents and members for their preparedness to face the challenges to protect the trade union rights.

Comrades, we have many more challenges before us. The UFBU will meet on 01.03.2007 at Delhi to review and plan further course of action to achieve long pending demands such as 2nd Option on Pension, Compassionate Appointment, Recruitment, etc. We request all our constituents to implement all action programmes with full vigour including 3 days’ strike on 28th, 29th and 30th March, 2007. Simultaneously, we have to be ready with charter of demands for 9th Bipartite Settlement. We are confident that victory will be ours. We shall keep you advised of further developments.

With warm regards, Sd/-

(PROFULLO KUMAR PATNAIK) C O N V E N O R

CENTRAL BANK OF INDIA STRIKE ON 23RD FEBRUARY, 2007 CALLED OFF

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We draw the attention of our members to the Circular No. AI / 34 / 2004 – 2007 dated 21 02 2007, reproducing the text of UFBU Circular on the Industry wide three days strike on the issue of (1) 2nd option of pension, (2) Compassionate Appointment Scheme and Recruitment of staff and (3) Opposing the Outsourcing. UFBU has now served the Strike Notice dated 24th February 2007 to the Chairman of the IBA along with the statement of case. We reproduce the same for the information of members. We request all our members to actively participate in all the agitational programmes culminating in the three days Strike on 28th, 29th & 30th of March 2007 and ensure its grand success. We also request our members to be in readiness for observing the Indefinite Strike from 3rd May 2007 in the event of the observance of the three days Strike does not evoke the desired response. With Greetings, Yours Comradely T T NATARAJAN SECRETARY GENERAL

TEXT OF UFBU STRIKE NOTICE

UFBU/10/2007 24 02 2007 NOTICE OF STRIKE Name of Unions - United Forum of Bank Unions (UFBU)

- All India Bank Employees Association (AIBEA) - All India Bank Officers Confederation (AIBOC) - National Confederation of Bank Employees

(NCBE)

STRIKE ON 28TH, 29TH AND 30TH MARCH 2007 AND INDEFINITE STRIKE FROM 3RD MAY 2007

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- 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 Organization of Bank Workers (NOBW) - National Organization of Bank Officers (NOBO)

Names of Elected 1 Sh. Prafullo Kumar Patnaik, Convenor, UFBU & Representatives: General Secretary, NCBE 2. Sh. C.H. Venkatachalam, General Secretary, AIBEA 3. Sh. Amar Pal, General Secretary, AIBOC ` 4. Sh. R J Sridharan, General Secretary, AIBOA 5. Sh. Pradeep Biswas, General Secretary, BEFI 6. Sh. Subhash Swant, General Secretary, INBEF 7. Sh. K. K. Nair, General Secretary, INBOC 8. Sh. K. R. Poonja, General Secretary, NOBW 9. Sh. Bapu Joshi, General Secretary, NOBO Dated this day of 24th February 2007 The Chairman Indian Bank’s Association World Trade Centre, 6th Floor, Cuffe Parade, Mumbai. Sir, In accordance with the provisions contained in sub-section (1) of Section 22 of the I.D. Act – 1947, we hereby give you notice that the members of all the constituent Unions of the 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 28th, 29th & 30th March 2007 and Indefinite Strike from 3rd May, 2007.

STATEMENT OF THE CASE (1) 2nd Option on Pension

UFBU have been demanding one more option for pension for those employees / officers who could not exercise their option earlier. Though IBA maintained their stand for long time not to consider the demand of UFBU, finally agreed to discuss the alternatives with UFBU to resolve the issue. The declining of interest rate on deposits was one of the major factors compelling the Unions to demand for PF optees to switch over to pension in lieu of the PF. The issue was again and again raised during negotiation of 8th bipartite and, specific assurances

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were held out by IBA to settle the issue amicably. Accordingly, it has been a part of the 8th bipartite also. In this connection, we reiterate that:

(a) The Pension Scheme in Banks was introduced by IBA after a detailed

discussion and settlement at industry level with Officers and Workmen unions.

(b) The Pension Scheme introduced in Banking industry is in lieu of P.F.

Those who were willing to opt out for pension were required to surrender their P.F.

(c) The Pension Scheme in the Banking Industry is akin to the one introduced in RBI and Insurance sector. The staff of those organizations were given 3 – 4 chances to change their option.

We strongly demand of the Government / IBA to allow 2nd Option to those willing employees without any further delay. (2) Restoration of Compassionate Appointment Scheme as per bilateral discussion between IBA & UFBU and Recruitment. The Compassionate Appointment Scheme was introduced in the Banking Industry as a social security measure benefiting the bereaved families of the deceased employees. Gradually the scheme was diluted and the appointments were restricted to the barest minimum. In other words, the revisions made in the scheme were aimed at elimination rather than fulfilling the requirement of bereaved families. The dilution in the scheme provided scope for arbitrariness and caused serious set back to the long established harmonious industrial relation. The issue was raised both at Bank level as well as Industry level and also several rounds of discussions took place to retain the scheme. Since there was no positive response from the IBA and finding no other alternatives, the UFBU was compelled to resort to agitation to check the unilateral decision of IBA. IBA gave commitment before the conciliatory authority of Labour Department, Govt. of India to resolve the issue bilaterally but has failed to do so. There is acute shortage of staff in the Branches / Offices of the Bank all over the Country. A very large number of staff in all cadres availed voluntary retirement scheme (VRS) and exit policy and retired from bank prematurely. There has been usual retirements, promotions and wastages in Banks also. Despite a very large number of vacancies existing due to the above situations, there is no recruitment in the Banking Industry for the last 8 to 10 years. Whereas the business and workload in all the Banks has increased manifold. The acute staff position is adversely affecting customer service and reached an alarming situation. We, therefore, demand recruitment in the Banks in the best interest of the customer service and smooth functioning.

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(3) Stop outsourcing Several initiatives of Management in Banking Industry to outsource core functions of Banks have become a matter of serious concern for us. It is observed that very regular and routine functions of the Banks have been given to outside agencies unmindful of the consequences the Industry is going to face. It is bound to expose the confidentialities of the clients and adversely affect the Banks. Obviously, outsourcing of regular and routine work is bound to adversely affect recruitment of regular employees / officers. Despite our several requests and persuasions not to go ahead with outsourcing the regular routine work and to recruit employees and officers as per needs of the Banks, Management of the Banks failed to respond to our legitimate and genuine demand. We demand immediate stoppage of outsourcing which is leading to unfair labour practices.


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We draw attention of our members to the circular no. AI / 36/ 2004-07 dated 15.03.07 informing about the serving of the Strike Notice for 28th, 29th and 30th March 2007, to Chairman of IBA, demanding resolution on the issues 2nd Option of Pension, Compassionate Appointment Scheme, Recruitment of Staff and Opposing the Outsourcing. We are happy to inform our members that an understanding has been reached with the Indian Banks’ Association (IBA) before the Chief Labour Commissioner (Central) at Delhi on 21.03.07. Accordingly, the proposed agitiation programme including the strike action has been deferred. The text of the minutes of understandings reached between IBA and UFBU is reproduced herewith for information of members. We congratulate all the members for their determination and whole hearted participation in the action programmes of UFBU. The UFBU will be following up the matter with the Indian Banks’ Association to ensure implementation of the understandings reached with in the stipulated time frame. We note to keep our members informed of further developments. With Greetings, Yours Comradely T T NATARAJAN SECRETARY GENERAL

UNDERSTANDING REACHED STRIKE ACTION OF

28TH, 29TH AND 30TH March 2007 DEFERRED

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TEXT OF MINUTES OF UNDERSTANDING

UFBU Cir. No. / 15 / 2007 21 03 2007

Minutes of Understandings reached between Indian Banks’ Association and United Forum of Bank Unions in the meeting held

On 21 03 2007 at Delhi on the Demands raised by the Unions. ** ** **

The Unions raised the following demands as contained in their Strike Notice dated 24 02 2007 served on the Indian Banks’ Association

1) 2nd Option to join Pension Scheme 2) Restoration of Compassionate Ground Appointments 3) Recruitments in Banks 4) Stopping Outsourcing of normal bank jobs

After detailed discussions between the parties, the following understandings were arrived at:- 1. 2nd Option for Pension Without prejudice to the demand and contention of either parties on the issue, it is agreed that the UFBU based on the data provided IBA will go in for actuarial calculations to arrive at the shortfall, if any, UFBU will also draw out other viable alternatives and come back to IBA by 30th April 2007 after which both UFBU and IBA shall sit across and to sort out the issue by 30 06 2007. 2. Compassionate Appointments The UFBU explained their demands as follows:

a) In exceptional cases of deaths of employees and officers arising out of resisting decoity, robbery, terrorist attacks and while in performance of duties, the erstwhile scheme of compassionate appointment would be restored.

b) In case of employees / Officers dying at relatively young age, wife of the

deceased employee would be considered for employment on compassionate grounds based on the qualification prescribed by the Banks for the purpose of recruitments.

c) As regards financial compensation on death in lieu of appointment would

be made applicable based on emoluments drawn at the time of death as per the details already worked out.

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IBA informed that based on the mutual understandings reached on the issues before the CLC (Central) and consequent discussions with UFBU, earlier, recommendations have been forwarded to the Govt. and that the response of the Govt. is expected shortly. 3. Recruitments: IBA clarified that there is no ban on recruitment in the Banks and Banks are given adequate autonomy to fill up vacancies based on their needs and requirements. 4. Outsourcing: While the Unions expressed their opposition to the outsourcing of the normal banking jobs and services and IBA clarified that they are bound by the RBI / Govt. guidelines. It was agreed that the Unions would come out with their understandings on core and non-core functions for the purpose of outsourcing and thereafter the matter would be sorted out through discussions before 30th April 2007. 5. Regarding coverage under Pension Scheme for employees who joined the

Banks between 1 11 1993 and the notified date of the Pension Regulations, the IBA informed that the issue is under consideration by the Govt. and would be pursued for expeditious approval.

6. Based on the above, the Unions agreed to defer their agitational programmes

and proposed strike action on 28th, 29th and 30th March 2007. Signed at Delhi on 21st March 2007. For INDIAN BANKS’ ASSOCIATIONS For UNITED FORUM OF BANK UNIONS Sd/- Sd/- (H N SINOR) (P K PATNAICK) (NCBE) (P SANYAL) (C H VENKATACHALAM) (AIBEA) (G SANKARANARAYANAN) (R C AGARWAL) (AIBOC) (V P SHARMA) (G D NADAF) (AIBOC) (PRADEEP BISWAS) (BEFI) (ALOK KHARE) (AIBOA) (O P SHARMA) (INBEF) (P G GOLWANKAR) (INBOC) (S N JOSHI) (NOBO) (ASWARIRANA) (NOBW) (L BALASUBRAMANIAN) (NCBE) ______________________________________________________________________

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Cir. No: AI / 38 / 2004 – 2007 Date: 28 03 2007 TO: ALL MEMBERS PLEASE CIRCULATE Dear Comrades, We draw the attention of our members to our Circular No.AI/29/2004-2007 dated 31 10 2006 wherein we have given the details of the fresh promotion policy arrived between the Management and the Association. In that circular we have informed that during the last promotion process we have published a comprehensive booklet for the benefit of the members and this time we will be coming out with a supplementary booklet carrying out the modifications and additions to equip our members and to enable them to update their knowledge. We are on the job of preparing the booklet and the booklet will be ready in a day or two for despatch. The cost of the booklet inclusive of the postal / courier charges comes to Rs.100/- per copy. Those who are desirous of getting the copies of the booklet can send their remittance by way of Demand Draft drawn on Service Branch, Chennai favouring “All India Indian Bank Officers’ Association and the envelope should be addressed to

Com C Sundararajan Treasurer All India Indian Bank Officers’ Association 3 rd Floor, No.22, Mooker Nallamuthu Street Chennai 600 001

to facilitate immediate despatch of the booklets. We reiterate that the above booklet should be read as a continuation of the booklet published by us in the year 2004. In case, if any member requires the copy of the booklet published by us in the year 2004, they are requested to send the remittance of Rs.200/- per copy in addition to Rs.100/- per copy for the supplementary booklet. As in the past, we are making arrangements for conducting coaching classes at important centres. The information about the date, time and venue will be informed by the respective units. We avail this opportunity to once again remind our members to submit the performance appraisal booklets without any delay, if they have not already submitted the same. We wish all the eligible candidates Best of Luck and Success. With Greetings, Yours comradely,

T T NATARAJAN, SECRETARY GENERAL

P R O M O T I O N S

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Cir. No: AI / 39 / 2004 – 2007 Date: 28 03 2007 TO: ALL MEMBERS PLEASE CIRCULATE Dear Comrades, GROUP SAVINGS LINKED INSURANCE SCHEME FOR OFFICERS Life Insurance serves as an Institution substituting certainty to uncertainty and serves as a timely relief to the bereaved families who loose their bread winner. The Group Savings Linked Insurance Scheme was introduced to the Officers in the year 2003 and thereafter for award staff. The Scheme was very much beneficial as it served the purpose of Insurance and Savings. In the unfortunate event of death of the staff while in service, the bereaved family is provided with the financial relief. Otherwise, the accumulated savings portion along with the interest is paid to the employee on his / her retirement, resignation etc. The Scheme is due for renewal now. As per the existing scheme, there are three different Insurance covers with the sum assurance being Rs.2 lakhs, Rs.3 lakhs and Rs.4 lakhs. The monthly premium paid is Rs.204/-, Rs.306 and Rs.408/- respectively. In case the death of an employee due to accident, the family will be paid double the sum assured. It has now been decided to renew the scheme on the following revised terms.

There is no change in the existing premium amount and it will continue to be Rs.102 for every one lakh rupee cover.

The cover amount will be uniformly increased by 100% over the existing cover. The sum assured under the revised cover will be Rs.4 lakhs, Rs.6 lakhs and Rs.8 lakhs. Members will have to necessarily take the corresponding revised covers against the existing cover of Rs.2 lakhs, Rs.3 lakhs and Rs.4 lakhs respectively. In other words, the existing employees will have to necessarily take the revised covers and they cannot retain the previous ones.

New entrant will be allowed to join the scheme compulsorily only at the lowest category (i.e. Rs.4 lakhs) without any option.

We learn that more than 1400 officers are remaining out of this scheme. After much persuasion we could prevail upon the LIC authorities to provide an option to such members to join the scheme. Please note that the option given is a one time option and such kind of option will not be available in future to join the scheme. Hence, we request all our members to avail this opportunity and positively join the scheme. New entrants joining the scheme will be under the cover of Rs.4 lakhs only. Our HO: HRM Department is coming out with a circular in this regard. We request our Branch Secretaries to impress upon those members who have not joined the scheme, to positively join the same taking advantage of this opportunity. With Greetings, Yours comradely,

T. T. NATARAJAN SECRETARY GENERAL

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Cir. No: AI / 40 / 2004 – 2007 Date: 07. 04. 2007 TO: ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

CLEARING ACTIVITIES ON 31.03.2007 AND THE INSTRUCTIONS ISSUED TO OFFICERS TO ATTEND OFFICE

Members are in the know of things that the Reserve Bank of India had issued instructions to Banks to keep their offices open for extra hours on 31.03.2007 and on 01.04.2007 for clearance of cheques towards collection of direct and indirect taxes for the financial year ending March 2007. This has severely inconvenienced the officers.

The matter has been taken by our Association with our Chairman and Managing Director and also by our Apex organization AIBOC with IBA. We reproduce the text of both the letters for information. We note to keep the members informed of further developments.

With Greetings,

Yours Comradely T T NATARAJAN SECRETARY GENERAL

Text of our Letter addressed to Chairman and Managing Director dated 30.03.2007

Dear Sir,

Sub: Clearing activities on 31.03.2007 and the instructions issued to Officers to attend Office.

31st March 2007 has been declared as a holiday under Negotiable Instrument Act by some of the State Governments on account of Mahavir Jayanthi. 01.04.2007 is a Sunday i.e. routine holiday and 02.04.2007 is a weekly holiday in case of Sunday working branches.

We are given to understand that instructions have been issued to extend the working hours up-to 8.00 P.M. on 30.03.2007 for the purpose of carrying out the transactions of Central and State Governments and that the Officers will have to keep the branches opened on 31.03.2007 to facilitate the tax collection.

Sir, we are surprised by the above unilateral instructions issued at the behest of Reserve Bank of India on the plea that the same is desired by the Government of India. It appears that the owner and the regulator are taking things for granted while taking such decisions without any consultations. We understand the importance of tax collection and its contribution to the Country’s economy but at the same time it should be realized that these events of tax collection and the completion of Government transactions are not sudden events which cannot be anticipated and planned. Besides this, we understand that some Circle Administrations have issued instructions that Officers should attend office on 1.04.2007 / 02.04.2007.

While the RBI and the Government of India are taking unilateral decisions putting the Officers to severe inconvenience, an attitude has developed in our Bank that the Officers should not have any holidays and for that matter any personal life. The instructions

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issued advising the Officers to attend office during Pongal holidays; a very sensitive festival in the southern part of the country will stand as proof for the same.

Sir, the Officers of the Bank have been enduring a tremendous pressure and are coping up with shortage of manpower after the mass exodus under VRS 2000 and the VRS / resignations that are taking place on a regular basis. On their own the Officers sacrifice many holidays. But the instructions issued to the Officers to attend office on holidays, as explained above are a matter of concern for us. It is not possible for the Officers to work on extended hours, Sunday and holidays without compensatory off and adequate compensation. Hence we request your goodselves to issue suitable instructions to the concerned authorities to provide adequate compensation, say RS.500/- per day besides compensatory off whenever the Officers are working on holidays and Sundays.

Thanking you, Yours faithfully, Sd- T T Natarajan Secretary General _________________________________________________________________________

Text of AIBOC Letter Dated 29.03.2007 Addressed to IBA

Dear Sir,

Collection of Direct / Indirect Taxes Extended working hours on 30th and 31st March 2007 And working on Sunday 1st April,

2007

We understand that the RBI has made a special announcement in terms of which the Banks will work for extended hours on 30th, 31st March & 1st April, 2007 to facilitate clearing of cheques towards Direct / Indirect Taxes for the year ending 31st March, 2007.

Service Conditions like working for extended hours or working on Holidays is a bi-partite issue between the IBA and their representative organizations. We resent the unilateral intrusion of RBI in the last minute without allowing the matter to be discussed and decided at the appropriate forum.

This is not the first time that such fiats have been issued by the RBI. Normally, Bank Officers would like to relax on 01.04.07 after their tiring annual closing work on 31.03.2007. Summoning them for additional work on a weekly holiday on 01.04.07 saps their energy and enthusiasm for facing the rush of work in the first week.

It is needless to mention here that, Workmen staff will claim overtime for sitting late or working on Sundays & holidays. As a matter of fact, we have been insisting upon regulated working hours for Bank Officers for the past several years. In the absence of failure to meet our reasonable demand, it is only fair and proper that the Officers are monetarily compensated for their extra labours on Saturday & Sunday.

Accordingly, we hereby call upon you to advise the member Banks to pay adequate monetary compensation to all Officers for sitting late on Saturday (31.03.07) (which is only half a working day) & working on a holiday viz. Sunday (01.04.07) We look forward to your immediate response in the matter. With greetings,

Sd/-

(AMAR PAL) GENRAL SECRETARY

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Cir. No: AI / 41/ 2004 – 2007 Date: 11. 04. 2007 TO: ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

TRANSFERS AND OTHER LONG PENDING ISSUES The Executive Committee of All India Indian Bank Officers’ Association met at Hyderabad on 11th March 2007. The Committee was highly agitated over the various issues that are remaining unresolved despite being repeatedly articulated by the Association demanding early redressal. The committee expressed its deep concern over the anxiety prevailing on the transfer front. After threadbare discussions, the Committee directed the Secretary General to convey its deep concern on the various issues remaining unresolved and the frustration that is growing in the minds of the officers to the Management and to take the necessary steps to resolve the pending issues early and to ensure the release of transfer orders as per the existing transfer and placement policy without further loss of time. Accordingly, a communication has been addressed to the General Manager (HRM), Head Office, Chennai. The text of the communication is reproduced for the information of our members.. 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 our Letter addressed to General Manager (HRM) dated 03 04 2007

Dear Sir,

Sub: Transfers and other lond pending issues - reg

The Executive Committee of All India Indian Bank Officers’ Association met at Hyderabad on 11th March 2007. The Committee was highly agitated that various issues concerning officers such as increase in rental ceilings and conveyance reimbursement / lump sum conveyance allowance, fitment formula for promotee officers, payment of gratuity to officers who are subjected to compulsory retirement, evolving of standard and transparent guidelines for payment of Bank’s contribution of PF in the case of officers who are subjected to the decision of loss of livelihood, conversion of RDOs to General category, payment of officiating allowance as per revised guidelines, curtailing the selective approach adopted by the Bank’s Doctor in disallowing the medicines prescribed for Domiciliary Treatment, etc., are remaining unresolved over a period of time. The Committee further expressed its deep concern on the issue of transfers as a great set back was faced by the officers last year due to the partial implementation of back to home state transfers and transfers from north eastern region giving a go bye to the applicable Government guidelines in this regard. The Committee felt that in view of the academic year getting closed shortly, the transfers as per the existing transfer and placement policy, inclusive of the backlog that has to be cleared without further loss of time. In the above background, the Committee directed the undersigned to exhort the Management to appreciate the deep sentiments of the officers and to initiate steps to resolve the long pending issues and to urge for attending the most sensitive issue of transfers on an urgent basis to ensure that the inconvenience faced by the officers on account of transfers is reduced to the barest minimum. In pursuance to the same, we request you to kindly bestow your attention on the following lines.

1. The various pending issues have been effectively articulated in the Central Consultative Committee held on 28 09 2006 and a letter has also been addressed to your goodselves on 20 01 2007. We request that our view points expressed in the meeting and through our letter dated 20 01 2007 are to be given due credence and the issues may please be resolved without further loss of time.

2. The transfer and placement policy was evolved in the year 1983 and the

same was modified in the year 1995. Though we have repeatedly expressed our readiness to go in for a review of the transfer and placement policy and arriving at a fresh policy and we were assured of

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positive action by the Management in this regard, in reality no forward movement has taken place. For the year 2007, the academic year for the purpose of admission is almost coming to a close and the officers are undergoing tremendous anxiety in this regard. In the given situation of time constraint, as we could not arrive at a fresh transfer and placement policy so far, in all fairness transfers for this year has to take place in faithful compliance to the existing transfer and placement policy. In this direction, we request

Officers who have completed 3 years of service outside home state

are to be transferred back to their home state.

Officers who have completed 2years service in north eastern region are to be transferred back to their home state and be given placement as per their choice in compliance with the Government guidelines.

The existing guidelines provide that officers who are to retire from

service in 3 years period can request for transfer to their place of choice and the Bank would favourably consider the same. The pending requests in this regard are to be considered favourably.

Officers serving in a particular Circle in the state of Tamil Nadu,

Andhra Pradesh and Maharashtra where there are more than one circle, have submitted their request for transfer after completion of tenure. These requests are also to be considered on the basis of duration of their service in that circle.

The problems of lady officers deserve special consideration in view

of the vital role they have to play in their family besides their official responsibilities. Hence we request that the lady officers should be given an option to indicate their place of preference and the request can be considered favourably without sticking to the fixed tenure norms.

The issues enumerated by us and the various other requests on the transfer front are vital and needs immediate redressal. We hope and trust that the Management will appreciate the deep concern exhibited by the entire committee and do the needful in right earnest to arrest the frustration and demotivation which we fear is engulfing the minds of officers. Thanking you, Yours faithfully, Sd /- T T Natarajan Secretary General

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All India Indian Bank Officers' Association (Affiliated to AIBOC: Recognized by Management) New No.22, Mooker Nallamuthu Street, Chennai -600 001 Tele - Fax / Phone: 2523 3366 / 2524 2666 - E –mail: [email protected]

Cir. No: AI / 42/ 2004 – 2007 Date: 07 05 2007 TO: ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

WRITTEN TEST FOR PROMOTIONS HELD ON 29 04 2007

CONDUCTING OF MEETINGS / WORKSHOPS ON SUNDAYS/HOLIDAYS

** ** **

Extensive Preparations were made by the candidates for the Written Test for Promotions conducted on 29 04 2007. Our Association has come out with a Booklet. Coaching Classes were conducted and an all out effort was made to equip the candidates. The enthusiasm that was built up in the process was totally shattered and the candidates were thoroughly frustrated on seeing the Written Test question papers. The question paper made the candidates feel as if they are aliens to the Institution and it had sent a wrong signal that no purpose would be served by reading the Circulars, Manuals etc., as hardly any question emanated from the same. From the Association, we felt that any failure in the examination should not be viewed as a failure of the candidate rather it should be viewed as the failure of the system. Hence we have addressed a letter to the Chairman & Managing Director in this regard. For quite some time, we have been receiving complaints from our members that it has become a fashion to hold meetings, workshops etc., on Sundays and Holidays and the treatment meted out in these programmes leads to total demotivation and frustration. We have tried to impress upon the various authorities that they should desist from holding the meetings, workshops etc., on Sundays and Holidays and the Officers should be treated in an honourable manner. Our efforts did not yield the desired results and spate of complaints were received about the treatment meted out in a workshop recently conducted at IMAGE, Chennai. With a view to clearly communicate our views and arrest this trend, we have written a letter to the Chairman & Managing Director. The above mentioned letters are reproduced for the information of our members. We note to keep the members informed of further developments. With Greetings, Yours Comradely T T NATARAJAN SECRETARY GENERAL

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May 4, 2007 The Chairman & Managing Director Indian Bank Chennai 600 001 Dear Sir,

Promotion process for Scale I to II, Scale II to III and Scale.III to IV – Written Test held on 29 04 2007

We draw the kind attention of the Chairman & Managing Director to the record of discussions on Promotion Policy signed between the Management of Indian Bank and All India Indian Bank Officers’ Association on 27th September 2006 and also the Promotion Policy circulated by the Bank vide HO: Personnel Department Circular No.118/2006-07 dated 10 11 2006. In the record of discussions, the following observations are finding a place. “ Taking into consideration the long term man power requirements of the Bank, as well help in phasing out a structured succession planning process which will eventually help in meeting the career and motivational needs of the officers it was decided to bring about certain improvements in the policies detailed above. Discussions were held with the recognized officers association in this regard. The parameters that emanated during the discussions, envisage a concerted approach for succession planning while taking care of the career progression needs of the officers at all levels. Taking into consideration present day requirements Officers should have computer literacy and they must be able to work in CBS environment so that they can shoulder higher responsibilities”. From the above observations, it could be logically concluded that the intent and purpose of conducting the written test is to test the basics and the operational knowledge of the candidates in General Banking, Computer literacy and Core Banking Solution. By way of strengthening this conclusion, it was indicated through the guidelines issued by the Bank along with the call letter for the written test that the structure of the examination will be as follows: Section

Subjects No.of questions

Marks Time

I Banking, Financial Awareness, products of the Bank, Circulars, Manuals etc.,

75 100

1 hour 15 minutes

II CBS and computer knowledge 25

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Keeping the above aspect in mind, the candidates prepared and equipped themselves by studying the Manuals, Circulars and Booklets / study materials released by various sources. But they were shocked and were totally taken aback on seeing the question paper as the questions framed were in a different context and it appeared as if the outside agency which has set the question paper was totally unaware about the intent and purpose for which the Bank has proposed the conduct of written test. The following sample observations would substantiate as to how the purpose of the written test was defeated and the candidates were frustrated.

In the CBS portion of the Written Test, the questions were supposed to test the knowledge of the candidates about the basics and the operational aspects such as user ID, password, User level, Capability level, system of passing queues, modification, correction, authorization and updating of entries, concept of home branches and host branches, closing of deposits, withdrawals, clearing, provision of sweep facilities etc., There were no questions on these issues.

On the contrary, the questions were in the area of computer net work, programming, machine language, how efficiency of communication in transferring the data through the leased lines can be found etc. It appears that the questions would be difficult even for the officers who are working in EDP / CBS Team as every operative menu was customized by the vendors. In sum, the test on CBS was not based on either our Bank Circulars or the Manuals and as such a virtual situation of the candidates being tested on out of syllabus basis had resulted. While the test on CBS ended up as explained above, the questions on General Banking were in no way better. The following observations would substantiate our views in this regard.

The questions were running into as many 6 to 8 lines with 5 options as

answer, making the process of reading a time consuming one.

The questions were mostly put in an indirect way or negatively and were not

sharp or to the point forcing the applicants to give a second reading for

understanding of the question itself.

The questions were mostly not on general banking and practice or on various

structured products as indicated in the call letter. Rather the questions were

hovering around the abstracts of the policy level issues.

The options given as answers were also not specific in respect of many

questions calling for judgement on these answers which may go anyway as per

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the answers perceived as correct by the testing officials. In other words, the

subjectivity element was more pronounced in the questions.

The Bank has conducted many written test in the past but the pattern of

questions in this test was in total departure compared to the earlier tests

conducted.

Another concept new to this test is the negative marks which restrained the

candidates to confine their answering only to the questions for which they

know the answer confidently and they cannot afford to venture into little unsure

areas lest their hard earned marks will be reduced. This has also had acted as

an impediment on the candidates.

Given the age profile of the candidates and the little time they had to prepare for the written test in view of the tremendous work pressure which confines them to their branch / office till late hours, there is always a resistance for going for written test. However, we have advanced an argument that in the process of preparing for the written test, every candidate enriches himself and become a more competent officer. But this written test has sent a signal that no purpose will be served by reading the Circulars, Manuals etc., as hardly any question had emanated from the same. We fail to understand as to why this kind of treatment has been reserved by the outside agency for our Bank. A comparison with the promotion test conducted for Scale.I to II in Indian Overseas Bank on 25 03 2007 would prove our point. From the All India Indian Bank Officers’ Association, we would like to make it clear that the purpose for which the written test was introduced was not met in the written test held on 29 04 2007 and hence any failure in the written test by any candidate should not be viewed as his individual failure, rather it has to be viewed as a system failure caused by the callous approach adopted by the outside agency. We, therefore, request the Chairman & Managing director to intervene in the matter and ensure that no candidate is unduly affected as a fall out of the written test by suitably reducing the cut off and thus render justice. Thanking you, 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

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The Chairman & Managing Director May 4, 2007 Indian Bank Chennai 600 001 Dear Sir,

ORGANISED DEMOTIVATION EXERCISE IN THE NAME OF WORKSHOP IMAGE has organized a day’s workshop for the Assistant Branch Managers on 21 04 2007 and for the Branch Managers on 22 04 2007. These workshops have commenced at 9.00 AM and the conclusion was stretched beyond 9.00 PM. The purpose of these workshops was seemingly to create awareness on the utility of CBS to migrate the customers to other channels like ATM, Internet Banking, Mobile Banking, Tele Banking and to equip the participants about the basic operations for handling foreign currency / cheque encashment, foreign inward/outward etc., While the objective of the workshop was laudable, what happened in reality was nothing but an organized exercise of demotivation. In the workshop, particularly in the one that was conducted by ABMs, it was repeatedly told that communication has already been sent for some of the officers who have completed 55 years of age or 30 years of total service as officer conveying displeasure and this exercise will end up in compulsory retirement. Another observation that was made is that people are waiting in queue for a salary of Rs.3000/- for doing the same job that is being done by these officers and they cannot take things for granted. Repeated comparison was made with ICICI and various sorts of abuses and insults were hurled. To top it all, we learn that some participants were fined for seemingly coming late after the tea-break, as if they were all school students. The participants in one voice have communicated to us that they hate this kind of treatment and they detest participating any such programme if organized in future. For quite some time, we have been voicing our deep concern about the shabby manner in which the officers and Branch Managers are treated in the meetings. We feel that the time has come to put an end to this kind of treatment lest it will have a degenerating effect on the Institution. Hence we seek your intervention in the matter on the following:

1. There is an increasing tendency to hold this kind of workshops and meetings on Sundays / Holidays. Managers and Officers of our Bank are working at late hours to complete the work due to increase in work load and lack of manpower. Hardly they get time to attend to their families. They also need some rest. Weekly holiday is an accepted concept world over and hence this tendency of snatching the holidays should stop forthwith.

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2. Be it a training programme or a business meeting, they should be conducted keeping the objective in mind and the authorities conducting the same should exhibit a commensurate behaviour to their position. They should keep in mind that the participants also are officers having served the Institution for long years. Even for small lapses, the authorities in the Bank invoke the Regulation No.3 (1) of Indian Bank Officer Employees (Conduct) Regulations 1976 and charge sheet officers that they fail to discharge their duties with utmost integrity, honesty, devotion and diligence. It is high time that the higher authorities of the Bank who indulge in abuse and insult against the officers know that there is yet another Regulation i.e. Regulation No.3 (2) of Indian Bank Officer Employees (Conduct) Regulations 1976 which says that every officer employee should maintain good conduct and discipline and show courtesy and attention to all persons in all transactions and negotiations. This regulation applies equally to officers from Scale.I to Scale VII.

3. Officers are not school children. They cannot be subjected to whimsical

treatment such as fining etc.

4. Last but not the least, the Officers who were called for the above programmes were asked to be present at IMAGE by 9.00 AM. For this purpose, many officers have to start from their home by 7.00 AM. We learn that break fast was not provided in these programmes. Many officers are acute BP or Diabetic patients. If the authorities of IMAGE are of the view that they cannot afford to provide break fast for the participants, we have no quarrel but our request is that the authorities should communicate in the call letters that the participants have to make their own arrangements for break fast. We are consciously making this observation because we have come across instances of officers collapsing in the office on account of sudden shoot up of BP/sugar, a recent one such incident being the death of an officer in CEDP/ Coimbatore.

We hope and trust that the Chairman & Managing Director will understand and appreciate the sense of disappointment and anguish that has driven us to write this letter and take the necessary corrective action in this regard.

Thanking you, Yours faithfully, Sd/- T T Natarajan Secretary General Copy to: The Executive Director, Indian Bank, Chennai The General Manager (HRM), Indian Bank, Chennai.

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Cir. No: AI / 43/ 2004 – 2007 Date: 30 07 2007 TO: ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

TRANSFER AND OTHER LONG PENDING ISSUES – RECENT

DEVELOPMENTS

The attention of our members is drawn to our Circular No.AI/41/2004-2007 dated 11 04 2007 wherein we have highlighted the deliberations that took place in the Executive Committee of our All India Indian Bank Officers’ Association held at Hyderabad and the directions given to the Secretary General to address a communication urging upon the Management to resolve the pending issues and to ensure the release of transfer orders without further loss of time.

In accordance with the directions given by the Committee, a communication was addressed to the General Manager (HRM) highlighting the pending issues and drawing his immediate attention for immediate implementation of Back to Home State Transfers, Pre Retirement Transfers, Transfers as per North Eastern Guidelines, Request Transfers for those who are serving in a particular Circle in the state of Tamil Nadu, Andhra Pradesh and Maharashtra where there are more than one Circle and Transfer of lady officers to their place of their preference without sticking to the fixed tenure norms.

Besides addressing the communication to the General Manager (HRM), we have followed up the matter through regular discussions and this has yielded certain positive results.

The Written Test for promotions was conducted on 29 04 2007 and the entire promotion process was completed on 28 06 2007.

Transfer Orders were issued in the case of officers who have completed 4 years of outside Home State service. Request for change of circle was also positively considered and modification orders were issued.

Transfer Orders were issued in the case of officers who have completed 58 years to their place of choice.

In the case of North Eastern Region, all the officers who have completed 3 years of service have been transferred as per their request.

A beginning has been made for inter circle transfers within the state of Tamil Nadu, Andhra Pradesh and Maharashtra.

The lady officers who have completed 3 years of service in a particular place have been transferred to their place of choice.

In the above background, the Office Bearers of All India Indian Bank Officers’ Association met at Courtalam on 16 07 2007. The meeting took stock of the situation and deliberated at length about the developments that had taken place. Expressing a view that a positive orientation is taking place on Industrial Relation

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front, it was decided to submit a letter to the Chairman & Managing Director requesting for his intervention for earlier solution to the long pending issues.

The Office Bearers met Shri A Subramaniam, Executive Director on 18 07 2007. While addressing the Office Bearers, the Executive Director desired that the leaders of the Association should percolate the message for accelerated business promotion down the line and he also shared his concern over the increase in the customer complaints. Responding to the Executive Director, we have assured him of our sincere co-operation and impressed upon him that the attempts made by certain quarters to misuse the channel of preferring complaint to gain undue advantage should be discerned and suitably dealt.

The Office Bearers met Shri M S Sundararajan, Chairman & Managing Director on 19 07 2007. Extending a warm welcome, the Chairman & Managing Director impressed upon the entire team to ensure that the part of accelerated growth is sustained and the Bank achieves the goal of Rs.1,00,000 lakh crore business by March 2008. Responding to the Chairman & Managing Director, we have assured him of our support in achieving the dream figure of Rs.1,00,000 lakh crore even before March 2008. We have also highlighted the pending issues and submitted a letter in this regard. We are glad to inform our members that all the staff members who were in the rolls of the Bank on 15 08 2006 and those who will be confirmed in the services of the Bank on or before 15 08 2007 will be presented with a souvenir in the form of ‘Centenary Year Commemorative Gold Coin’ weighing 5 grams. Comrades, Back to home state transfers in the case officers who have completed three years of service are yet to be issued. Likewise, in the case of North Eastern Region, Officers are to be transferred on completion of two years of service. Few requests are pending under pre retirement category also. These issues are being vigorously pursued for early solution. With the completion of the entire promotion process in two months time and the positive developments that had taken place on the transfer front, we hope that foundations have been laid for a cordial industrial relation atmosphere and a new chapter will be opened on the industrial relation front. 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 /44/ 2004 - 2007 Date: 12.08.2007

TO ALL MEMBERS PLEASE CIRCULATE

Dear Comrades,

Sub: Implementation of MOU dated 21.03.07 between IBA & UFBU on the issues of 2nd option of Pension, Compassionate Appointment, Recruitment and

Outsourcing

United Forum of Bank Unions met at Mumbai on 1st August 2007. The meeting was presided by Com V Eswaran, President of AIBOC. The meeting reviewed the developments after the signing of Memorandum of Understanding on 21.03.2007 with IBA and observed that instead of taking steps for implementation of the MOU, the IBA is delaying the matters and taking a casual and non-serious approach to the serious issues raised during the agitation.

As per MOU the UFBU submitted its proposal on the 2nd option of Pension with actuarial calculations on additional cost of pension and expressed its willingness to resolve the issue through mutual discussions and negotiations. IBA, instead of initiating a dialogue with UFBU has unwarrantedly referred the matter to the Government with a deliberate intention to avoid the discussions and delay the early solution.

Similarly, a revised scheme on Compassionate Appointment has been sent by IBA to the Banks based on Government guidelines, which has no connection with the discussions held between IBA and UFBU, subsequent to the intervention of the Chief Labour Commissioner. The revised scheme has neither restored the Compassionate Appointments nor improved the financial compensation formula as discussed with UFBU. Equally on the issue of outsourcing, in terms of the MOU we have submitted the details to the IBA, but IBA has not bothered to commence any discussion.

In the above background, UFBU has addressed a letter to the Chairman of IBA communicating their anxiety and concern over the delaying tactics and casual approach adopted by the IBA and demanded for immediate discussions for early and expeditious resolution of the issues. UFBU has further warned that if the IBA continue their lackadaisical approach, they will be compelled to resort to agitation. UFBU has decided to meet in the 3rd week of August, 2007 to take stock of the situation and to decide the further course of action depending upon the response of the IBA.

Comrades, the strike was deferred in March,2007 after a delegation of UFBU met the Hon’ble Prime Minister Mr. Manmohan Singh & Hon’ble Finance Minister Mr. P. Chidambaram and on their assurance that the issues could be resolved through discussions. Discussions took place with IBA in the presence of the Chief Labour Commissioner and minutes were drawn fixing deadline for resolving the issues. But, now the Government / IBA combine is trying to abdicate their

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responsibility and thus a situation of agitation being thrust upon is seemingly emerging. Therefore, be in readiness for responding to the call of UFBU and await further developments.

With Greetings,

Yours Comradely,

T T NATARAJAN Secretary General

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CIR.NO. AI /45/ 2004 - 2007 Date: 27.08.2007


Dear Comrades,

UFBU REVIVES THE AGITATION ON THE ISSUES OF 2ND OPTION ON PENSION, COMPASSIONATE APPOINTMENT, OUTSOURCING ETC – ONE DAY STRIKE ON

12.09.2007 We draw the attention of our members to our earlier Circular No. AI / 44 / 2004 – 07 dated 12.08.2007 on the delaying tactics and casual approach adopted by the IBA and the Government to the serious issues raised by us during the agitation in March 2007. More than five months period have passed since the IBA signed the MOU with the UFBU and despite the UFBU repeatedly urging the IBA to resolve the issues through discussions; IBA has taken a negative stand of not involving the UFBU for any discussions. In this back ground, UFBU in its meeting held at Mumbai on 22.08.07, took stock of the situation. The meeting came to the unanimous conclusion that the issues have remained unresolved despite the earnestness shown by the UFBU to resolve the same through discussions and in pursuance to the MOU arrived before the CLC and as such there is no option left, but to revive the agitational programmes. Accordingly, the meeting decided on the following programmes.

05.09.2007 – Branch Level Demonstration.

07.09.2007 and 11.09.2007 – Centralised Demonstrations at all Centres.

12.09.2007 – All India Strike.

Further Programmes including the dates for the Indefinite Strike will be announced thereafter. Comrades it is unfortunate that after signing the MOU with the intervention of the Government, the IBA is now trying to backtrack from the issues. It is a very serious situation. We have no other alternative than to fight out this negative attitude and to settle our genuine and long pending issues. Let us gear up for the strike on a war footing basis. We request all our members to actively participate in all the preparatory agitational programmes and ensure the total success of the strike. With Greetings, Yours Comradely,


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CIR.NO. AI / 46 / 2004 - 2007 Date: 05.09.2007 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

CONCILIATION PROCEEDINGS FAIL MAKE THE 12TH SEPTEMBER STRIKE A GRAND SUCCESS

The organizational preparations for the strike on 12.09.2007 are in full swing. Membership is exhibiting full enthusiasm to carry forward the struggle for achieving the demands raised in our strike notice. The State Units are gearing up for the demonstrations that are slated during the week in order to send a strong message to Indian Banks’ Association as also to the Government for their failure to honour the understandings reached in the presence of Central Labour Commissioner during the last agitation call. The Indian Banks’ Association is yet to respond to our strike notice. However, Central Labour Commissioner convened a conciliation meeting on 03.09.2007 at Delhi. The representatives of the UFBU attended the meeting. On behalf of AIBOC, our President Com V Easwaran along with the leaders from our Delhi State Unit attended the meeting and made a detailed presentation on the facts of the case justifying the strike call given. The attitude of the IBA was highly provocative. It refused to appreciate the stand of UFBU and initiate the dialogue for resolution of the issues raised by us. The proceedings therefore failed. Comrades, the conciliation meeting by the Central Labour Commissioner is only a technical formality. We cannot afford to tolerate the casual and adamant approach of IBA and Government any more. Step up the preparations to ensure the total observance of the Strike on 12th September, 2007. Let us march forward and make the strike a grand success. The text of the UFBU circular dated 03.09.2007 is furnished overleaf for information of our members. With Greetings, Yours Comradely, T T NATARAJAN SECRETARY GENERAL

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TEXT OF UNITED FORUM OF BANK UNIONS, CAMP DELHI, DATED 03.09.2007

To: All constituent Unions Dear Comrades,

Our ALL INDIA STRIKE ON 12.09.2007 CONCILIATION MEETING FAILS IBA REMAINS ADAMANT GO AHEAD WITH THE STRIKE

Units and members are aware that we have given the call for strike on 12.09.2007 demanding the implementation of the MOU signed by IBA on 21.03.2007 by which IBA agreed to discuss our demands like one more option for Pension, Compassionate Appointments in the Banks and stopping Outsourcing in Banks with a view to find amicable solutions. Since IBA has not taken any steps to resolve the demands through mutual discussions, UFBU decided to revive our agitational programme and gave the call for strike on 12.09.2007 To day the Chief Labour Commissioner (Central) convened a conciliation meeting at Delhi with a view to find the possibilities of bringing both the parties together. In the Conciliation meeting, from UFBU side we offered to suspend our agitation and strike provided IBA agreed to hold discussions with the UFBU as per the MOU. Unfortunately IBA maintained an adamant approach and did not agree for holding any discussions. In view of this, the conciliation meeting did no yield any positive results and hence we have no other option than to go ahead with our strike action on 12.09.2007 All our Units are advised to proceed in full swing with the preparations and make the ALL INDIA STRIKE on 12.09.2007 a total success. Yours Comradely, Sd/- Sd/- Sd/- Sd/- Sd/- (AIBEA) (AIBOC) (NCBE) (AIBOA) (BEFI) Sd/- Sd/- Sd/- Sd/- (INBEF) (INBOC) (NOBW) (NOBO)

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CIR.NO. AI / 47 / 2004 - 2007 Date: 17.09.2007 TO ALL MEMBERS PLEASE CIRCULATE

Dear Comrades,

IBA AGREES TO DISCUSS OUR DEMANDS STRIKE ON 12.09.2007 DEFERRED

We draw the attention of our members to our earlier Circular No. AI / 46 / 2004 – 07 dated 05.09.2007 on the delaying tactics and casual approach adopted by the IBA and the Government to the serious issues raised by us during the agitation in March 2007 and the failure of the Conciliation meeting held on 03.09.2007. The organizational preparations for the strike on 12.09.2007 were in full swing. However, in continuation of the Conciliation meeting held on 03.09.2007, another round of Conciliation meeting was held between UFBU and IBA on 10.09.2007 in New Delhi at the instance of Chief Labour Commissioner (Central) in his office. All the 9 constituents of the UFBU were represented by their principal Office bearers and Com V Eswaran, President of the Confederation attended the proceedings on our behalf. Besides the representatives of UFBU and IBA, Mr. Alok Bhatnagar, Director (Financial Sector) Banking Division, Ministry of Finance, was also present during the conciliation meeting. While, IBA tried to stick to its earlier stand, UFBU asserted that that there was no forward movement on the part of IBA in resolving the issues raised by us. In the course of discussion UFBU pointed out that the proposals on 2nd option on pension submitted by us along with the acturial calculation are definitely an alternative proposal and that the revised scheme on compassionate appointment has no bearing to the discussions held earlier by UFBU with IBA. It was also clearly stated to IBA that in terms of the MOU dated 21.03.2007, UFBU has submitted its views on the Outsourcing as committed in the MOU. IBA has to discuss this issue with UFBU and the same cannot be left for discussion at the Bank level. The Chief Labour commissioner suggested that the parties should initiate discussions within a fortnight so as to arrive at an amicable settlement. Upon IBA agreeing to the advice of the CLC to commence the discussions on our demands, UFBU decided to DEFER the strike action slated for 12th September 2007 for the time being. In view of the above developments, the proposed strike on 12.09.2007 stand deferred. We congratulate all the members for the preparatory action programme and request to keep themselves in readiness for further action, if necessary. 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 /48 / 2004 - 2007 Date: 09 10 2007 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

UFBU MEETINGS ON 30 09 2007 & 03 10 2007 UFBU MEETING WITH IBA ON 03 10 2007

UFBU met at Cuttack on 30.09.2007 and thereafter at Mumbai on 03.10.2007. Com. P K Patnaik, General Secretary, NCBE and Convenor UFBU, has stepped down from the post consequent to his retirement from Bank’s service. The meeting unanimously elected Com. C H Venkatachalam, General Secretary, AIBEA as Convenor UFBU. We place on record our gratitude to Com P K Patnaik and convey our greetings to Com C H Venkatachalam.

In pursuance to the conciliation proceedings held by the Chief Labour Commissioner at Delhi on 10.09.2007, a Bi-partite meeting was held between IBA and UFBU on 03.10.2007. The text of the UFBU circular dated 04 10 2007 is reproduced for the information of our members. With Greetings, Yours Comradely, T T NATARAJAN SECRETARY GENERAL

TEXT OF UNITED FORUM OF BANK UNIONS DATED 04 10 2007

To:

All constituent Unions

Dear Comrades,

1. UFBU Meeting:

UFBU meeting was held at Cuttack on 30 09 2007 and was further continued in Mumbai on 03 10 2007. The meeting held at Cuttack was presided over by Com. Amar Pal, General Secretary, AIBOC while the meeting held on 03 10 2007 at Mumbai was presided over by Com. Eswaran, President, AIBOC.

a) Consequent to his retirement from the Bank’s service and relinquishing his

position as General Secretary of NCBE, Com P K Patnaik informed his decision to step down as Convenor of UFBU. The meeting placed on record its appreciation for the valuable services rendered by him under the banner of UFBU.

b) The meeting, thereafter unanimously elected Com C H Venkatachalam, General Secretary of AIBEA as Convenor of UFBU.

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c) The meeting decided to hold the next meeting of UFBU at Mumbai on 18 10 2007 to discuss the following issues:

i) Preparation of Common charter of Demands for next Wage Revision Settlement.

ii) Steps for expeditious resolution of the pending demands viz., Pension Option, Compassionate Appointment and Stopping Outsourcing in Banks.

iii) Recent attempts of merger of Associate Banks with SBI thus starting the process of consolidation of Public Sector Banks.

2. Discussion with IBA:

Further to conciliation proceedings held by Chief Labour Commissioner at Delhi on 10 09 2007 and our deferring the call for strike on 12 09 2007, a bipartite meeting was held between IBA and UFBU at Mumbai on 03 10 2007. In this meeting, discussions centered mainly on our demand for Pension Option. From our side we have explained the details of the Actuarial Report submitted by us and our willingness to share the additional cost by mutual discussions. IBA wanted some clarifications on the report submitted by us. We also wanted the details of the basis of the calculations prepared by IBA. Hence, it was decided to continue the discussions further in the next round of talks.

We also took up the issue of covering under Pension Scheme of the employees who joined the Banks between 01 11 1993 till date of Pension Regulations in 1995 and have asked IBA to again pursue the matter with the Government to expedite their clearance.

Other issues like Compassionate Appointment and Outsourcing will be taken up by us in the next meeting

With Greetings, Yours Comradely,

S/d-

C H VENKATACHALAM CONVENOR

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CIR.NO.AI /49 / 2004 - 2007 Date: 01 11 2007 TO: ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

CHARTER OF DEMANDS

The Salary Revision is due from 01 11 2007 onwards. The leaders of the Officers’ Organizations and Workmen Unions have decided to submit a common charter of demands for officers and workmen respectively. Accordingly, the leaders met Shri M B N Rao, the Chairman of Indian Banks’ Association on 30th October 2007 and submitted the charter of demands. The text of the AIBOC circular issued in this regard is reproduced for information of the members.

We shall keep the members informed of the further developments.

Wishing you and your family members a “HAPPY DIWALI”

With Greetings,

Yours Comradely, T T NATARAJAN SECRETARY GENERAL ________________________________________________________________

TEXT OF AIBOC CIRCULAR NO.47 DATED 30 10 2007

CHARTER OF DEMANDS

CIRCULAR NO. 47 30th October, 2007 TO ALL AFFILIATES/MEMBERS

CHARTER OF DEMANDS

The leaders of the Officers’ Organizations and the Workmen Unions under the bannerof United Forum of Bank Unions met Shri.M.B.N.Rao, the Chairman of Indian Banks’Association at Hyderabad in a delegation and submitted their Charter of Demands inconnection with the salary revision due from 1st Nov. 2007. The delegates consistedof representatives of all the 9 unions covering 100% of the workforce in the bankingindustry.

2. The Confederation in the delegation was represented by Sarvashri.G.D. Nadaf,M. Harshavardhan, K. Ramakoteswara Rao, D. Krishna Kumar and others. The Chairman was greeted by the UFBU leadership as it was our first meeting withhim after he assumed the charge as Chairman of IBA. After exchange of pleasantries,the Chairman received the Charters from both the Officers’ Organizations and theWorkmen unions demanding a comprehensive review of the salary and allowanceseffective from 1.11.2007. The representatives also impressed upon the Chairman,the need for a time- bound settlement since the entire workforce in the banking

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industry is looking forward to it with great expectations which have been amplyreflected in the Charter of Demands submitted by both the Workmen and Officers’organizations.

3. The Chairman gave a patient hearing and assured the delegates that he will takethe necessary initiative and start the process of commencement of the negotiationsin right earnest. He also expressed his willingness to ensure a speedy settlement ofthe Charter submitted by both the organizations so that there is no delay in theprocess of negotiations. We also demanded a structured forum at IBA for sharing ofinformation and continuation of dialogues on various issues confronting the bankingindustry.

4. Our members may recollect that the understanding with IBA was that the salarynegotiations should commence in right earnest preferably before the expiry of thesettlement and should be concluded in good time. Accordingly, the Confederationhad set up a Sub-Committee consisting of the following members to finalize thecharter in respect of Officers:

1. Com V Eswaran, 2. Com Amar Pal, 3. Com G D Nadaf, 4. Com S K Kohli,5. Com Ananda Kumar, 6. Com A C Chandra Prasad, 7. Com P K Sarkar,8. Com P V Mathew, 9. Com K D Khera, 10. Com S Roy Choudhury,11. Com K Rama Koteswara Rao, 12. Com T R Bhat

5. The Committee met on a couple of occasions and finlized a draft report forapproval of the Working Committee. The Committee also received suggestions fromvarious affiliates of the Confederation. After the Working Committee approved thedraft charter prepared by the Sub-Committee, the consultation process with theother officers’ organizations viz AIBOA, INBOC AND NOBO was commenced in themiddle of September 2007 to finalize the Common Charter.

6. The date for submission was fixed on 29th October 2007. A meeting of all theOfficers’ Organizations followed by that of the representatives of UFBU was held at Hyderabad. After giving final touches, the Charter was signed and submitted to theChairman IBA. The A.P. State Unit of UFBU deserves all appreciation for organizinga mammoth meeting of members at short notice. The enthusiastic members ofUFBU were addressed by the leaders of UFBU. The enthusiasm of membershipspurred the leadership to march forward to achieve pending demands before the IBA/ Government including a best salary revision w.e.f.01.11.2007.

7. Comrades, the first stage of registering our demands through submission ofCharter of Demands has since been completed. The submission is only a beginningfor commencement of negotiations in right earnest. We need to pursue our Charterto its logical end. It requires continuous campaign and preparation on the part of therank and file to pressurize the IBA and other authorities to consider our demands.

8. We request all our affiliates/State Units to give wide publicity to our Charter ofDemands. Copies of the Charter are being mailed separately.

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9. Our past experience is before us. The IBA had never responded on its own toconclude the settlement in right earnest. It has always been only through thepressure actions of the Officers’ organizations. All our affiliates/members aretherefore requested to be in readiness to jump into action at short notice, if need be.

With greetings,

Sd/- (AMAR PAL) GENERAL SECRETARY

ALL INDIA BANK OFFICERS‘ CONFEDERATION (AIBOC) ALL INDIA BANK OFFICERS’ ASSOCIATION (AIBOA)

INDIAN NATIONAL BANK OFFICERS’ CONGRESS (INBOC) NATIONAL ORGANISATION OF BANK OFFICERS (NOBO)

To

The Chairman, Indian Bank’s Association, C/o IDBI Towers, Cuffe Parade, Mumbai – 400 005. Dear Sir,

CHARTER OF DEMANDS

PREFACE

The Banking Industry has witnessed a spectacular growth during the last decade shedding its earlier protective control and close scrutiny by Reserve Bank in the formof strict regulatory guidance. The banks have now become totally commercialenterprises with a fiercely competitive environment calling for an excellent balancingact on the part of the employees and officers of the industry, breaking away fromtheir traditional path of the last 4 decades. This task has been performed by bankofficers exceedingly well despite heavy odds and pressures.

The globalization impact was felt initially in the financial sector. Its so-calledadvantages and adverse features are borne by the banking industry in the name offinancial reforms which commenced over one and a half decades back. Since then,the banking industry particularly the Public Sector Banks and the Old GenerationPrivate Sector banks with over 95% of business coverage under their jurisdictionfaced the threat of extinction and loss of their identity through planned attacks fromdifferent agencies including Government, the Foreign and New Generation PrivateSector Banks, with the able support of Reserve Bank of India, the BankingDepartment and all the agencies involved in the regulatory mechanisms of thebanking industry. The industry survived these pressures. However, the new

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initiatives in the matter of technological advancement, mushrooming of newgeneration private sector banks and also the foreign banks posed a serious challengeto the workforce in the industry in terms of compensation package, perquisites andother facilities. As a result, the compensation system varies widely between the newgeneration private sector banks, foreign banks and the Public Sector Banks as well asthe Old Generation Private Sector Banks.

Having adopted all the business strategies of the new generation private banks inorder to perform competitively, the expectations of the officers across the countryare that the compensation package available 'in these banks should constitute theminimum benchmark for officers in PSBs.

The increasing shortage of staff due to VRS and Exit policies and a high rate ofattrition with no matching recruitment has created a tremendous pressure on theexisting officers’ community with unlimited working hours and, appalling workingconditions. Work-life balance is sadly missing in the case of officers’ in Public SectorBanks.

It is in this background, the current salary negotiations assume added importanceand should be a turning point in the history of our bipartite settlements.

ASPIRATIONS AND EXPECTATIONS COMPREHENSIVE CHARTER OF DEMANDS

a) Bank Officers aspire for a comprehensive review of the compensation package andexpect the revised package to attract the best talent and to retain the existingofficers. It should enable every officer to derive adequate satisfaction so as toeffectively compete in the hostile environment with utmost devotion and dedication.The salary revision should be at the industry level only. A decent and reasonablecompensation package which provides not only the basic requirements but alsoelevates the standard of life of the officers’ community for their increasedresponsibility is the need of the hour. Negotiations are to be time-bound on alldemands in a comprehensive manner.

b) The Compensation should ensure periodical up-gradation and protection againsterosion in real wages due to inflation with a definite career progression for each andevery officer to ensure their loyalty to the institution and take care of the attritionproblems.

c) The Compensation package should be divided into 3 parts:

i) Salary and Dearness allowance:

(Basic Pay and DA) to be worked out on the basis of actual establishment expenses.

ii) Perquisites and other allowances including Welfare and Superannuation –(Medical, P.F., Pension, Gratuity, Leave Encashment, LFC etc.,) the cost of which

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should be de-linked from the cost of wages.

iii) Issues like regulated working hours, 5 days a week, compensationfor Extra Hours of work including working on weekly off days and holidays.These issues have to be negotiated and settled as an integral part of the wagesettlement.

d) The Bank employees should be treated on par with Government employees for the purpose of income tax and perquisite tax. e) The compensation package should be net of tax. The respective banks should pay all the taxes that the employee is assessed for, as also the taxes on vehicles etc.,

f) The present scheme of recruitment of officers should remain undisturbed. Thecontract labour either directly or through outsourcing should not be resorted to.

g) The Salary Revision should be applicable to all Public Sector Banks, PrivateSector, RRB Sector. Uniformity and parity of salary and service conditions to beensured.

The 4 Officers’ organizations namely AIBOC, AIBOA, INBOC and NOBO have jointlyprepared the Charter on the basis of the above principles and are submitting thesame to the Indian Banks’ Association/Government of India for their consideration.

The Charter is divided into:

Part I - Salary and allowances /

Part II - Perquisites, Allowances, Welfare facilities including Superannuation benefits.

Part III - (a) Non monetary issues & (b) Concerns of Lady Officers

Part IV - General

PART –I

SALARY ALLOWANCES

BASIC PAY:

The Basic Pay should be constructed on the basis of merger of D.A. Index atSeptember ‘07 Index figure.

The Scales should be merged and constructed on a running pattern upto Scale V andthereafter continuation of increments payable once in every year. (The allowances

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should be treated as part of the BP for superannuation purposes etc). The existingscales upto Scale V may be merged into 2 scales.

The other scales namely, VI and VII should be drawn keeping in view the structure ofscales upto scale V.

DEARNESS ALLOWANCES:

The rising cost of living is adversely affecting the ‘take home pay’ on day to daybasis. The payment of Dearness Allowance does not reflect the correctcompensation. There is a need to revise and increase the rate ofcompensation. Hence, the existing rate of compensation for every 4 points should beretained even after the merger of Index. The neutralization level should be raised to125% in order to ensure adequate protection against inflation as also toaccommodate the loss the officers’ community has suffered due to lesserneutralization in the earlier dispensation.

At present, the revision in Dearness Allowance takes place on quarterly basiscalculated on the previous 3 months’ average index. The revision in DearnessAllowance should be automatic on the basis of monthly figures, since the salarypayment is now centralized and is automatic through technologicaladvancement. This is necessary to arrest the erosion in real wages.

PROFESSIONAL QUALIFICATION PAY:

Increments for CAIIB should be granted in the following manner:

Part - I One additional increment ::: Part - II Two additional increments

On reaching the maximum, the increment which is converted into PQP should bepaid as follows:

Part – I The PQP should be equal to the amount of last increment in the new scale.

Part – II The PQP should be equal to 3 times the increment in the last stage of the scale. (Part – I - one increment and Part II - two increments - total 3)

The increments as well as PQP should be granted in respect of qualifications such asDiploma in Business Management, Certified Information System Audit etc.,

FIXED PERSONAL PAY (FPP):

The FPP should be treated on par with PQP in respect of fitment of Basic Pay onpromotion and payment of all other allowances. The fixed character or freezingshould be done away with, to avoid anomalous situation like a Senior Officer drawing

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a lower FPP than a Junior Officer, and officers drawing HRA etc.

(a) House Rent Allowance:

The Banks are obliged to provide quarters or leased accommodation to all theOfficers. The Officers should also have a choice to opt for HRA in lieu of this facility.

The Rate of HRA payable should be as follows:-

30% of the revised Basic Pay at Major Metros 25% of the revised Basic Pay at Area I Centres 20% of the revised Basic Pay at all other Centres without any ceiling.

HRA ON CAPITAL COST BASIS: a) The existing facility of HRA payable on capital costbasis at 150% should be increased to 200%

(b) SELF LEASING:

Benefit of self lease to be extended to officers who are willing to offer their ownhouses for lease to the bank.

OFFICIATING ALLOWANCE:

The existing rate should be raised to 10% of B.P. without any ceiling. The minimumperiod of 7 days should be removed.

CITY COMPENSATORY ALLOWANCE:

The existing classification should be reviewed into the following categories:

CATEGORY CENTRE

I. Major Metro Kolkata, Delhi, Mumbai, Chennai, Bangalore, Hyderabad, Ahmedabad, Pune, etc.,

II. Metros (Area I) All centres with more than 12 lakh population and State Capitals.

III. Centres with population of 1 lakh and all District Head quarters.

RATES OF CITY COMPENSATORY ALLOWANCE:

Category I - 20% of Basic Pay :::: Category II - 15% of Basic Pay Category III - 10% of Basic Pay

INCENTIVES FOR RURAL POSTINGS: Rural Allowance at 10% B.P. Weightage for

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promotions. Choice of posting after completion of term etc.,

CLOSING ALLOWANCE: The Closing Allowance should be increased to Rs.2500/- perquarter and payable to all officers including those working at administrative offices.

HALTING / BOARDING / TRAVELLING EXPENSES:

(A) Review and rationalization of Halting / Boarding / Travelling expenses. (B) The Boarding expenses should be linked to lodging expenses. (C) The existing system of allowing banks to fix the rates of reimbursement periodically should continue with a provision to review them annually. (D) All officers should be eligible for travel by Air, with Executive Class entitlement for Senior Management. (E) The minimum of 1000/- K.M. restriction to be removed. (F) For places not connected by Air, Officers should be permitted to travel by AC – 1st Class.

PPROTECTION OF ANNUAL INCREMENTS: An allowance equal to the amount of lastrawn increment should be granted every year after reaching the maximum in thecale. The allowance so granted should be treated as B.P. for all purposes.

PART II

SUPERANNUATION, PERQUISITES, ALLOWANCES, WELFARE FACILITIES

PROVIDENT FUND:

The Provident Fund should be at the rate of 12% of Pensionable Pay, DA and all otherallowances reckoned for the purpose of fixation of pension.

GRATUITY:

Service Gratuity rules should be modified. The Gratuity payable should be onemonth’s gross salary for every year of service without any ceiling from the date ofappointment to the date of retirement. The provisions in the service rules as regardsrestriction on payment of gratuity to be removed. The IBA should take up with theGovernment for enhancement of ceiling on statutory Gratuity to Rs. 10 lacs.

PENSION: Pension should be applicable to all officers.

RATE OF PENSION:

Regular Pension: 50% of pay and allowances drawn at the time ofretirement. Family Pension: 40% of pay and allowances drawn by the deceasedemployee at the time of retirement.

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Pension Rules should be reviewed to make provision for payment of 50% of pay andallowances drawn at the time of retirement. The Voluntary Retirement provisionsapplicable to Pension Regulations, should be made identical with Officers’ ServiceRegulations so as to remove discrimination between Pension optees and P.F. opteesas regards number of years of service.

The Pension should be automatically upgraded as and when the index rises by 50%of the number of index already merged. For example, if the merger of points is at600 points, and if the DA rises by 300 points over and above the merged level, thePension payable should be automatically revised.

Rule no 13 as regards addition to qualifying service in respect of earlier recruits,conditions in recruitment policy should be made applicable from prospective date.

WELFARE FACILITIES TO RETIREES:

The medical facilities and LFC to be introduced for the retirees also.

ENCASHMENT OF LEAVE:

Encashment of entire leave at credit should be permitted on retirement, resignation,removal and compulsory retirement. The existing restriction on encashment of leaveon resignation should be removed. Maximum encashment at the time of retirement,resignation etc., to be increased to 360 days.

COMMUTATION:

(a). Commutation should be allowed upto 40% of the Basic Pension(b). Commutation should be restored after 10 years.

POST ALLOWANCE:

(i) 25% of the Basic Pay should be paid as post allowance to all designated officers viz. Branch Managers, Divisional Managers etc.,(ii) At 20% of the Basic Pay to all other officers.

The allowance is necessary for the reason that with technology innovation, theaccountability and responsibilities of all the officers have multiplied manifold.

MEDICAL REIMBURSEMENT:

The expenditure incurred for Medical treatment, both on account of hospitalizationand non-hospitalization, for self as well as the dependent family members should bereimbursed in full without any ceiling. IBA should take up with Government forenhancement of ceiling on income of dependent family members. The definition offamily should include unemployed sons, unmarried daughters, deserted or widowed

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sisters, daughters, sisters etc.

The Medical Scheme should be available to all retired officers on the same terms andconditions under which they were enjoying the facilities while on duty as in the caseof the CMDs and EDs of Banks. Hospitalization for major ailments and cost thereonare a nightmare to bank officers. Therefore IBA on participatory basis with banksshould set-up multi facility hospitals at Metros and State capitals to start with forcatering to the retired officers and their families.

DIFFERENTIAL ON PROMOTION:

The differential on promotion from one scale to another scale should be equal to aminimum of 2 increments. A suitable fitment formula to be evolved to protect theemoluments drawn in the previous grade on promotion from one grade to anothergrade in the officers’ cadre.

LEAVE FARE CONCESSION:

The existing scheme of LFC should be reviewed comprehensively. The mode of travelby Air within the entitlement and without insisting on touching the designated placeto be permitted; officers to be permitted to travel anywhere on LFC. The encashmentshould be related to the actual entitlement of mode of travel.

SPECIAL ALLOWANCES: Special Allowances to be granted to all officers working inSikkim, J & K, N.E., H. P. A & N Islands, Lakshadweep and other Centres.The Hardship allowance already paid at some centres for those who are posted tothese centers from other centres should be extended to the locally recruited officersas well. The rate of allowance in centers which are already eligible for the allowanceshould be revised appropriately.

EX-GRATIA IN LIEU OF BONUS:

A portion of Profits should be shared with all the officers in the form of ex-gratiapayment.

OTHER ALLOWANCES:

1. Computer allowance to all officers. 2. All other allowances not specified above, but payable as per the industry settlement as well as bank level understandings should be raised by 100%.

PART III

NON-MONETARY ISSUES WORKING ENVIRONMENT AND WORKING HOURS

The Banks should provide to all the officers an appropriate ambience and

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environment at all centres to work at their cabins. The Officers should also beprovided with all the amenities such as supply of refreshment, beverages etc., insidethe branch premises in view of pressure of work.

The environment should be hygienic and should take care of the vision etc., in viewof technology advancement, continuous exposure to computers etc., at the workspot. Wherever the Dress Code is insisted by the Bank, the managements shouldprovide appropriate reimbursement of expenses incurred. The Banking Industry dealswith economic issues and handles huge financial resources of the community.

The working hours should be such that it should not lead to fatigue and result in lossof health or upset the officers’ routine. Hence, the working hours should be defined.

5 DAYS WEEK:

The working hours should not be more than 36 hours in a week. The daily workinghours should not be more than 7 hours in the normal course.

Any working for more than 7 hours a day should be compensated monetarily to theextent of twice the actual hourly salary in the normal course.

The Officers required to work on weekly-off days and holidays should becompensated as above and in addition be permitted a compensatory off on a dateconvenient to them or their leave account should be credited with the number ofdays involved.

LEAVE RULES:

The existing Leave Rules should be reviewed and comprehensively rationalized.The Officers should be free to avail the leave as per their requirement. There shouldbe provision for availing the same on the basis of hours, half-day, full-day and longerperiods as is the practice in several corporates.

TYPES OF LEAVE:

The existing system of maintaining separate leave account should be done awaywith. The entire leave available to an officer should be credited to one leave accountevery year on the following basis:

1. Casual Leave: 15 days in a year. 2. Privilege leave: one month in a year. 3. Sick Leave: 15 days in a year (on full Pay) without any ceiling. 4. Restricted Holidays: 6 days in a year for festivals not declared as holidays under the Negotiable Instruments Act. 5. Leave-bank to be introduced.

The leave so calculated should be credited to the leave account of the Officer on a

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consolidated basis. The Officer should be eligible to avail the leave on the basis of hisrequirement. The intermediate holidays and weekly-off should not be counted asleave.

The Officer should have the opportunity of encashing the balance available in theconsolidated leave account once in a year to the extent of 50% of the leave availablein his account at the beginning of the subsequent year. Further, an officer should bepermitted to encash the entire leave at his credit at the time of retirement and noceiling should be imposed for accumulation of leave.

DISCIPLINARY PROCEEDINGS:

The existing Disciplinary Proceedings need a review to ensure uniformity. Details willbe furnished during the negotiations. The areas requiring immediate attention are:-

ADMINISTRATIVE TRIBUNALS:

At present, officers have to knock the doors of Courts for justice after exhausting theappeal system. The litigation is time consuming and costly. Hence, for speedy justice,there should be exclusive Administrative Tribunals for bank officers.

VIGILANCE:

The Vigilance cases should be dealt with at Bank level. There is no need to make anyreference to the Central Vigilance Commission. The Bank Boards should beauthorized to forward a list of all Vigilance Cases dealt with by the respective banksfor the information of the CVC. The misconduct should be redefined in thebackground of changes that have taken place in the area of accountability andresponsibility of the officers with particular reference to technological advancement.

Classification of Misconduct be defined. The restriction of 2-3 cases for defence at atime to be removed. Ground rules for suspension to be on par with CCS Rules andrigour period should not exceed more than one year. The subsistence allowanceshould be full pay after one year. The Service Rules regarding termination withoutopportunity to hear and continuation of service after 60 years for the purpose ofdepartmental enquiry to be abolished.

APPEAL & REVIEW PROCEDURE

The Disciplinary Authority, while imposing the penalty, should specifically indicate theperiod within which the appeal has to be submitted. The imposition of the penaltyshould be kept pending till the final disposal of the appeal. The processing ofall Review Petitions by the Reviewing Authority must be made mandatory with a timelimit of three months. UNIFORMITY IN PROCEDURE: The existing systems and procedures vary from bank tobank. The systems should be made uniform. The areas in which modifications are

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required are:-

a) Interpretation of Punishment - The Disciplinary Authority should advisethe effect of punishment and his order should contain an annexure giving thepractical effect of the order along with the restoration of original position in the BP,rigour period etc.,

b) The suspension should be restricted to the barest minimum. Detailed guidelinesshould be formulated providing for inter-alia, (i) the time limit for the conduct andcompletion of the enquiry proceedings., (ii) payment of Subsistence Allowance;restoration of full payment after one year of suspension etc.

c) The suspension period, in case of minor penalty should be treated as on duty andfull salary allowance should be released after re-instatement.

d) The issue of memo/ show cause notice should be made mandatory before theissue of charge-sheet.

e) The penalty of reduction in grade / scale should not be below the grade / scale at entry point. LOANS AND ADVANCES:

Housing Loan - The existing ceiling on Housing Loan should be enhanced toRs. 30 lacs with the repayment period spanning upto 30 years.Rate of Interest - Simple rate of 2% p.a. on the entire Housing Loan.Re-payment of Loan – Schedule should be fixed in such a way that the Officers arenot put to hardship with a provision for re-payment from their pension even aftertheir retirement, upto the age of 75 years.

The premium on insurance of loan should be met by the banks.

Festival Advance - An Interest-free Festival Advance of 3 months’ gross salaryshould be granted. The repayment schedule can be extended from 12 months to18 months.

Conveyance Loan - The quantum of conveyance loan to all officers to be raisedto Rs.10/- lacs at 2% p.a.

Other Loans - The quantum of clean OD should be doubled at 2% interest p.a.

Education Loan - The wards of officers should be eligible for grant of educationloans, free of interest during their study period. The loans may be recovered aftertheir employment at 2% p.a. In view of transferability of officers, lack of priority incentral schools etc., IBA should start schools al least in Metros to ensureuninterrupted education of children of bank officers. On the death of officer, all loansshould be waived.

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CONCERN OF LADY OFFICERS

The Banking Industry was in the forefront in encouraging Lady Officers to acceptpromotions and take up higher responsibilities. There are a number of Ladyemployees who are reluctant to come forward and shoulder higher responsibilitiesdue to absence of exclusive facilities for their well being. The Officers’ Organizationshave been demanding for a long time certain specific facilities to them keeping inview their dual responsibility. The following are some of the issues:

A) Placement And Transfer Policy:

A separate Transfer Policy taking into account the difficulties of Lady Officers shouldbe formulated by IBA in consultation with the Officers’ organizations and forwardedto all the Member Banks. The lady officers should be exempted from mandatory ruralassignments. The Lady Officers need to be extended the benefit of flexi-time andflexi-place concept. They should be given choice of their place at the time of transferand placement keeping their difficulties in view. The Banks should be advised to keepone exclusive Lady Officer in charge of Personnel Administration in all the Banks toattend to their exclusive issues including transfer, placement etc. The Lady Officerswhose spouses are working elsewhere should be accommodated at the same place. Similarly, where the wife and husband are employed in the same bank, they shouldalso be accommodated at the same centre.

B) Provision of Creche Facility: The Banks should provide Creche facility for the benefitof children of Lady Officers who are required to attend to office and their childrenneed parental attention.

Leave Facilities: The existing Maternity Leave should be enhanced to 6 months at atime, from 90 days as at present. The facility should also be extended in case ofadoption of a child. 3 months’ additional sick leave after attaining the age 45 years.

Paternity Leave: The Paternity leave of 15 days should be introduced for officerson 3 occasions.

LFC/LTC: Spouse employed in the same bank to be permitted to avail LFC,separately as per individual eligibility. The lady officers to be permitted to take theirdependent parents along with them on LFC/LTC.

Definition Of Family: The parents, father-in-law & mother-in-law, depending on anofficer to be treated as member of family for the purpose of LFC/LTC and medicalfacility.

PART IV GENERAL BILATERAL RELATIONSHIP

The Officers’ Organizations alone are entitled to settle the issues related to theService Conditions in respect of those who are promoted from clerical cadre to officer

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cadre and also the Officers recruited directly from the market. The issues such aspromotion policy, transfer policy, fitment formula etc., will have to be discussed andsettled with the Officers’ organizations both at Bank and industry levels.

STRUCTURED FORUM:

At present, there is no structured forum at IBA level to interact with the Officers’organizations on service conditions. We have been requesting for setting up of astanding body for holding periodical meetings with the officers’ organizations on allthe issues related to the banking industry, apart from the issues concerning theservice matters. The meetings can be held at quarterly intervals and may also beutilized for the purpose of sharing the latest trends in the banking industry along withcorporate concerns to elicit the views of the organizations on all such matters.

RECRUITMENT / RETIREMENT:

The recruitments should be taken up on an ongoing basis. With the exit of a largechunk of the experienced workforce, there is a dearth of experienced work force inthe industry. The training and updating of skills should be taken up on a war footing.In view of shortage of manpower, the retirement age should be re-fixed. We havethe following suggestions:-

VOLUNTARY RETIREMENT: After Completion of 20 years of pensionable service.

AGE OF SUPERANNUATION: The age of superannuation to be raised to 65 years forall officers.

WITHHOLDING OF GRATUITY ON RETIREMENT: The gratuity should not be withheld onaccount of pending cases.

WELFARE FACILITIES: Present Ceiling of 3% of net profits to be increased to 5%without any ceiling.

VEHICLE TAX: In view of All India transferability of officers. The Road tax on vehiclesof different States should be paid by the bank on inter-state transfers.

DATE OF RETIREMENT: Those who were born on the 1st of a month to be retired onthe last day of the same month, and not the previous month.

PROTECTION OF EMOLUMENTS:

The emoluments drawn by an Officer should be protected on his transfer from ahigher CCA centre to a lower centre.

TRANSPORTATION OF PERSONAL BELONGINGS:

The Banks should take the responsibility for shifting the personal effects of the

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officers on transfer from one place to another. In the absence of such facility, theOfficers should be reimbursed the full expenditure on certificate basis.

INCIDENTAL EXPENDITURE ON TRANSFER:

To meet additional expenditure towards education of children, housing etc., officersto be paid two months’ salary to compensate incidental expenses on transfer. Incase of transfer outside the State, 3 months’ salary to be paid towards incidentalexpenses.

OTHER ALLOWANCES SUCH AS HILL AND FUEL ETC: All the allowances other thanwhat have been covered in Part I and II should be enhanced appropriately.

AREAS DECLARED AS SEZ / NEZ / EPZ: The branches coming under the above areasshould be treated on par with Metro Centres for all allowances and perquisites.

IMMUNITY FROM TRANSFER POLICY: The Office-bearers of Associations to beextended immunity from transfer/placement. The Central/State level office-bearersto be given duty-off on par with workmen organizations.

THE LOAD FACTOR: The negotiations should be confined only for the purpose ofdeciding the load factor in respect of Basic Pay and Dearness Allowance. The expenditure towards other perquisites has to be de-linked from the load factor.

DATE OF EFFECT: The date of effect for implementation of the settlement on thebasis of the charter of demands should be from 1.11.2007.

RIGHT TO SUBMIT SUPPLEMENTARY CHARTER: The Officers’ Organizations reservethe right to include, amend or alter the demands, as made out in the Charter duringthe course of bilateral discussions. All anomalies arising out of Salary Revision shouldbe resolved irrespective of the cost factor involved.

Sd/- Sd/- Sd/- Sd/- General Secretary General Secretary General Secretary General Secretary (AIBOC) (AIBOA) (INBOC) (NOBO)

Place: Hyderabad

Date: 29/10/2007

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UFBU CALL FOR AGITATIONAL PROGRAMMES Members are aware that UFBU has been pursuing the following important demands / issues with the Indian Banks’ Association (IBA).

To Expedite the Pension Option

To Revise the Compassionate Appointment Scheme

To Fill Up all Unfilled Vacancies

To Stop Outsourcing While discussions were started with the IBA on our demand for one more Option for Pension based on the suggestions submitted to IBA by the UFBU, the matter is not moving forward. On the issue of Compassionate Appointment, the revised guidelines of the Government and IBA are far from satisfactory and needs review. The discussions on Outsourcing are yet to take place as agreed by the IBA in the MOU dated 21.03.2007 and Minutes before the Central Labour Commissioner dated 10.09.2007. Further in the matter of recruitments also, the Managements are not moving earnestly and thousands of vacancies remain unfilled resulting in increase of the workload to the existing staff. Even on the issue of covering the employees recruited between 01.11.1993 and date of Pension Regulation in September, 1995, there are no positive developments. In the matter of Merger of Public Sector Banks also, the Managements and the Government are moving with their agenda. Hence, UFBU in its recent meeting has decided to take up these issues through agitational programmes and to demand expeditious solution to these issues.

....2

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= 2 = Accordingly, UBU has chalked out the following programmes for implementation:

1. Centralized Joint Demonstration in all stations on 20.11.2007 and 27.11.2007.

2. Dharna in all State Capitals between 3rd to 7th December, 2007.

3. Extensive Display of Posters before all Bank Branches.

Comrades, the importance of the issues need not be elaborated. Looking to the developments of the programmes, UFBU will decide the ALL INDIA STRIKE, preferably during the winter session of the Parliament. There is no other alternative for us than to agitate to focus the issues and to get early redressal to our demands. We call upon our members to whole heartedly participate in all the agitational programmes and make them a grand success. We note to keep the members informed of further developments. Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

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We are extremely glad and immensely happy to inform our members that the much awaited recognition has come and Com T. T.N. Our Secretary General is nominated as the Officer Employee Director to the Bank's Board. The notification to this effect has been issued by the Government of India on 22.11.2007.

Com T T Natarajan has joined the Bank in the year 1974 as clerk and was promoted to the officer cadre in 1982. He has worked as Officer in Karol Bagh Branch Delhi and was instrumental in establishing the Officers’ organization of Northern Zone as its founder General Secretary. Presently he is the Senior Manager of our Mannady Branch.

The Trade Union graph of Com. T. T. N. starts with his holding of the post of Assistant Secretary in Indian Bank Employees’ Union, Tamil Nadu in the year 1979 and he has been in the forefront of Award Staff Movement till his promotion. After leading the Indian Bank Officers’ Organization Northern Zone, as its General Secretary, on repatriation transfer he came to Chennai in the year 1986. From then on he has held the posts of Executive Committee Member, Deputy General Secretary in our Tamil Nadu unit before becoming its General Secretary in 1995. He has held the post of Secretary in our All India Indian Bank Officers’ Association before becoming the Secretary General in 1996. He has held the post of Secretary in AIBOC Tamil Nadu State Unit during 1988-90. He has served as the Deputy General Secretary of AIBOC for over seven years and he is the Vice President of AIBOC from 2004.

...2

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COM. T. T. NATATRAJAN SECRETARY GENERAL IS NOMINATED AS

OFFICER EMPLOYEE DIRECTOR TO THE BANK'S BOARD

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The entire workforce in Indian Bank can always proudly claim that the Trade Unions in Indian Bank were the pioneers in United Movement. Even before the formation of UFBU at Industry level, the United Movement had its birth in Indian Bank, when the Bank Management had attempted to close down the then Regional Offices. There after there was no looking back and the movement continues under the banner of UFBU – Indian Bank.

Com. T. T. N. has been leading the Joint Movement as its convenor which would speak volumes about his acceptability among the constituents Unions / Associations. Members are aware that our Bank had passed through the testing times of over six years since 1996 and Com. T. T. N. has been leading the Organization from these times. He has signed two MOUs which facilitated the infusion of Capital by Government of India which paved the way for the turn around of the Bank. Needless to say that he richly deserved his rightful place in the highest policy making body of the Bank i.e. Bank’s Board. Com. T. T. N. is known for his forthright views and fighting qualities. He has withstood the test of time and we are sure that his rich experience in Trade Union Movement and close association with the Bank during its time of difficult journey will enable him to function effectively as the Director in advancing the cause of the Bank and the Officers’ Community and thus will bring glory to our Association. We congratulate all the members of All India Indian Bank Officers' Association and Com. T. T. Natarajan on this happy occasion. We wish Com. T. T. Natarajan all the Best. With greetings, Yours Comradely, K CHANDRASEKARAN PRESIDENT

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IMPROVEMENTS IN STAFF WELFARE SCHEMES

The need for improving the existing Staff Welfare measures was continuously highlighted by our Association for quite some time and our relentless efforts and persuasion had yielded results. The Staff Welfare Committee which met on 10 10 2007 had approved the following improvements in the various schemes.

Increase in the medical aid for the retired employees from Rs.1,000/- to Rs.1,500/- per annum.

Enhancement of the reimbursement towards purchase of spectacle

from Rs.500/- to Rs.1,000/- per occasion for the employees above 40 years of age. This facility is available to the employee twice in their career and the gap between two reimbursements should be four years.

Enhancement of the financial relief to the family of the staff dying in

harness to Rs.50,000/- from the existing level of Rs.40,000/- and payment of Rs.10,000/- immediately for funeral expenses instead of Rs.5,000/- being given hitherto.

Increase in the quantum of subsistence allowance for employees

who are on leave on loss of pay due to prolonged hospitalization from the maximum of Rs.2,500/- p.m. to a maximum of Rs.5,000/- p.m.

Increase in the reimbursement towards the cost of accessories

purchased by physically handicapped employees from Rs.3,000/- to Rs.5,000/- once in their career.

The increase in medical aid for the retired employees will be effective from January 2008 and all other enhancements will be effective from the financial year 2008-09.

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Besides the above, the scholarship to the wards of employees who are pursuing professional courses has been increased from the existing level of 100 to 300 and further 100 scholarships for post graduate courses at Rs.3,000/- has been introduced. The Committee also approved the increase in limits for reimbursement of medical expenditure under Staff Welfare Scheme over and above the amount approved under Bi-partite Settlement / Indian Bank Officers’ Service Regulations for the specified ailments such as Bye pass surgery, Angioplasty, Kidney Transplantation, Cancer and introduced fresh provisions for meeting the extra expenses incurred for open and closed heart surgeries and arthopaedic surgeries. The Committee also discussed the possibilities of evolving a scheme for medical check up of all staff members / spouse at different centres and establishing fresh holiday home facilities. A detailed circular will be issued by our HO: HRM Department covering the various improvements made in the Staff Welfare Schemes. We thank the Chairman & Managing Director, Executive Director, General Manager (HRM) and his team and other members of the Central Welfare Committee for the improvements made in the various welfare schemes and look forward for further improvements in the days to come. With greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

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CIR.NO.AI /53 / 2004 - 2007 Date: 20 12 2007 TO ALL MEMBERS PLEASE CIRCULATE

Dear Comrades,

UFBU DECIDES TO CONTINUE & INTENSIFY OUR STRUGGLE ON PENSION OPTION,

MERGERS AND OTHER DEMANDS

We draw the attention of our members to our earlier Circular No. AI / 50 / 2004 - 2007 dated 16.11.2007 informing the first phase of agitational programme for redressal of our pending demands. UFBU met at Mumbai on 11.12.2007 and has decided the intensify the agitational programmes including an All India strike action in the 4th week of January 2008 and further strike actions by March 2008. The text of the UFBU circular No.29 dated 11 12 2007 is reproduced for the information of our members. We note to keep members informed of further developments. We also inform our members that our Bank’s Board in its meeting held on 01.12.2007 have given mandate to IBA to negotiate the Salary revision at Industry level.

With Greetings,

Yours Comradely,

T T NATARAJAN SECRETARY GENERAL ________________________________________________________________

TEXT OF UNITED FORUM OF BANK UNIONS CIRCULAR NO.29 DATED 12 12 2007

To: All constituent of UFBU

Dear Comrades,

UFBU decides to continue & intensify our struggle on Pension Option, mergers and other demands.

A meeting of the UFBU was held at Mumbai yesterday i.e. 11 12 2007, Com. G.D.Nadaf (AIBOC) presided over the meeting.

Wage Revision Demands: The meeting took for review the developments since the last meeting and noted that after the common charter of demands for wage revision served on the IBA, the IBA has asked for the mandate / authorization from the member banks for negotiating with the Unions on the demands. It was further noted that so far Central Bank of India, Corporation Bank, Andhra Bank, Bank of India, Vijaya Bank and UCO Bank have given authorization to IBA.

1st Phase of agitation: The meeting noted that the 1st Phase of our agitational programmes like demonstration, badge wearing and dharnas have been

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undertaken by our units successfully. While on this issue, the meeting felt that State-level units of UFBU should be made more functional in all States to ensure more effective implementation of our programmes. Strikes in Associate Banks: The meeting noted that recently 4 strike actions have been observed by the employees and officers in the Associate Banks against proposals of mergers with SBI and congratulated them for their successful strikes.

Further programmes: The meeting observed that the Government and Bank managements were trying to push forward their agenda of mergers and consolidation of Public Sector Banks and hence it has to be fought and resisted at the UFBU level. In the matter of pension option also, after the discussions held on 03 10 2007, no further meeting has been fixed by IBA. Similarly on our demands for improvement in the compassionate appointment scheme and to stop outsourcing in the Banks, no discussions have been initiated by IBA.

Our strike on 12 09 2007 was deferred by UFBU due to the intervention of the Chief Labour Commissioner, Government of India and his advice to IBA to hold discussions with UFBU on our demands. It appears that IBA is retracing and retracting from their commitment to discuss the issues with UFBU. Our intention to resolve the issues through mutual discussions is being taken as our weakness. Our good faith on IBA is becoming an illusion. In this background, after detailed deliberations, the meeting decided that our agitational programmes have to be continued and further intensified. Accordingly the following programmes have been chalked out.

1. Between 25th & 31st December 2007 – Letters to Chairman, IBA by all units of UFBU & their constituent Unions.

2. Poster display before all Bank Branches.

3. 04 01 2008 (10.00 am to 5.00 p.m.) Dharna before the Office of Banking Division, Ministry of Finance, Parliament Street, New Delhi.

4. All India Strike in the 4th week of January 2008.

5. Further strike actions including continuous strikes / indefinite strike by March 2008.

Demands

To oppose the merger of Public Sector Banks To expedite the Pension Option. To revise the Compassionate Appointment Scheme.

To fill up all unfilled vacancies. To stop outsourcing.

Next UFBU Meeting: The next UFBU meeting will be held at Delhi on 03 01 2008 when the dates for the above strikes will be finalized and announced.

Comrades, our efforts to seek solutions to our demands through discussions and negotiations are being foiled by the IBA due to their indifferent attitude. The path

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of confrontation and struggle is being foisted on us. There is no alternative for us than to carry on the struggle.

Prepare from now on : All our unions at all levels are requested to take all-out steps to prepare for the ensuing intensified struggle programmes. UFBU – State level meetings and bank-level meetings should be organized to explain the need for extensive preparations for a sustained and prolonged struggle. With Greetings, Yours Comradely,

S/d- C H VENKATACHALAM CONVENOR

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CIR. NO: AI/54/2004-2007 DATE: 02 01 2008 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades, The year 2007 has passed into the History. The New Year 2008 has dawned. We deem it our privilege to greet each and every one of you and your family members. The year that has gone by i.e. 2007 was an historical year. It is in this year, our Bank has completed its 100 years of its existence. It was not a smooth journey. Looking back we can heave a sigh of relief that our great Institution had survived the test of time and could defeat many designs that were aimed at to eliminate its existence. Many financial experts who predicted the doom of our Institution were proved wrong. This was possible on account of the spirit of oneness exhibited by the entire Indian Bank family and the unfailing loyalty shown by our customers. We have sacrificed certain benefits and we are way behind in the financial benefits comparable to other Banks. But we have proved that we can create history and defend a Public Sector Bank, that too the Bank which was born out of Swadeshi Spirit. The Bank’s Mission Statement was released by His Excellency, the then President of India, Dr. A P J Abdul Kalam while inaugurating the Centenary Year Celebrations. The mission statement is as under: “To be a Common Man’s Bank; To provide all financial products and services to all our customers under one roof; At an affordable cost and in a fair and transparent manner”. We have a crucial role to play in translating the above mission into action. Besides this, we have our self set business goal of crossing the Rs.1 lakh crore well before March 2008. We are steadily moving in achieving this goal and we are confident that we can definitely surpass the same. However, we would like to consciously ensure that the business achieved is a quality based and sustainable one. Here comes the question as to where we should lay our focus. In today’s environment of competitive and challenging financial market, corporate advances provide a thin margin only. In fact the Corporates are volatile and have alternate sources of funding. It is the retail borrowers who remain with the Bank and provide greater safety to our portfolio. Hence we should lay our focus in this area to earn sustainable profit. We are the forerunners in the area of financial inclusion and in the SHG sector. There was a general impression that the rural areas are the exclusive domain of Public Sector Banks and private players will not enter the fray. Defying this impression, ICICI Bank had pioneered ATM culture in Semi Urban India and is moving forward to grab the business opportunities in villages through the channel

LET US ACHIEVE THE GOAL OF RS.1 LAKH CRORE BUSINESS AND GROW FURTHER

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of mobile phone which is gaining faster acceptance even over no frill accounts. This should open our eyes and our rural and semi urban branches should reposition themselves to face this challenge and to sustain their business and to grow further as well. In other words, it is identified in the Industry that next to the Metros, the big opportunities lie in rural areas and as a Bank having large presence in rural areas; we should exploit the potential to achieve the best business promotion. It is always said that none can succeed in his endeavours ignoring the fundamentals. Therefore, it becomes obvious that in our business mix, Current and Savings Bank (CASA) should be at the highest level and comparable to other Banks. We are really lacking behind in this area as our percentage under CASA is around 35% whereas many other banks enjoy a comfortable level of 50%. Bringing the accounts of our relatives and friends in our fold itself will substantially improve the CASA percentage. Let us resolve to put in our best efforts in this area. Our Bank has Net Worked more than 1350 branches under CBS. The investment and the efforts put in should be converted into results and hence we should campaign extensively over the advantage of CBS. Likewise, the customers should be reached with the technology effective banking operations such as DMAT Account with Online Trading Facility, Improving the usage of ATM, Internet Banking, Mobile Banking, RTGS, NEFT etc., While many strategies and approaches can be formulated and discussed for achieving the goal of Rs.1 lakh crore business, one singular factor that should remain foremost in our mind under any circumstances is that the needs and wishes of customers are to be met if we want to be successful in having repeat customers. Every customer is a goodwill ambassador of our Bank and hence we cannot afford to lose even one. Ultimately, customer service remains as the key to success. Every organization has its own unique way of doing things which is called as organizational or institutional culture. This culture is nothing but the amalgamation of value systems, beliefs, attitudes, aspirations and operational styles that all employees possess and conduct themselves as a collective body. By our organizational culture, we have proved in the past that we can overcome any set back. With that strength and with a will to excel further, let us move forward, achieve the goal of Rs.1 lakh crore business and surge ahead to bring further glory to our great Institution. We once again wish you and your family members a Happy & Prosperous New Year. With Greetings, Yours comradely, T. T. NATARAJAN Secretary General

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CIR.NO.AI / 55 / 2004 - 2007 Date: 14.01.2008


Dear Comrades, MARCH ON TO UFBU’S STRIKE CALLS

We draw the attention of our members to our earlier Circular No. AI / 53 / 2004 - 2007 dated 20.12.2007 informing the action programme on our long pending issues viz., To expedite 2nd Option for Pension, Compassionate Appointments, Opposing the Merger of Public Sector Banks, to fill up Unfilled Vacancies and to stop Outsourcing.

UFBU in its meeting held at New Delhi on 03.01.2008, took stock of the developments and has decided and given call for observing ONE DAY ALL INDIA STRIKE ON 25.01.2008, TWO DAYS STRIKE ON 25 AND 26th OF FEBRUARY 2008 AND INDEFINITE STRIKE IN THE LAST WEEK OF MARCH 2008.

The text of the UFBU circular dated 03.01.2008 is reproduced for the information of our members. Other preparatory programmes such as display of posters, demonstrations, badge wearing are planned. We request our units to co-ordinate with the State AIBOC for successful implementation of preparatory programmes.

Comrades, let us firm up our Unity and Solidarity, March forward and make the Clarion Call of UFBU a thunderous Success.

We note to keep members informed of further developments.

With Greetings,

Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL ------------------------------------------------------------------

TEXT OF UNITED FORUM OF BANK UNIONS CIRCULAR - DATED 03.01.2008

To-day, i.e. 03.01.2008, a meeting of the UFBU was held in New Delhi. Com V Eswaran President, AIBOC presided over the meeting. All the constituents of UFBU were present in the meeting.

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The Meeting took review of the developments since our last meeting in relation to our current issues and demands. After discussions it was observed that the attitude of Government and IBA continued to be negative and unhelpful in finding amicable solutions. On the issue of merger and consolidation, despite the four strike actions in the Associate Banks by the employees and officers, the management and the Government are wanting to proceed. In the Nationalized Banks also, news are appearing about possible mergers of one or the other Bank. When the country needs expansion of Public Sector Banks and financial inclusion, mergers will only lead to shrinkage of Banks. Of course, mergers will also affect the jobs and job security of the Employees and Officers.

In the matter of our demand for one more option for pension, even though we have submitted our Actuarial Report and have agreed to resolve the issue even by sharing a part of the cost by mutual discussion, IBA is not taking any positive steps. On the other hand, steps are being taken to discriminate in retirement benefits.

On compassionate appointments, a revised scheme has been announced in total disregard to the discussions between IBA and UFBU. Virtually, Compassionate appointments are continued to be denied.

Similarly, when thousands of vacancies in the Banks remain unfilled and the workload on employees and officers is increasing, the managements are not taking steps for adequate recruitments of staff and employees continue to suffer.

On Outsourcing of normal banking services, despite their commitment in the MoU dated 20.03.2007, the IBA has not even discussed the issue with the UFBU for the past nine months.

Again, when out last wage settlement has ended in October 2007 and we have already submitted our common charter of demands, no steps are taken to commence the negotiations and conclude the settlement expeditiously. Rather, situations are created here and there to move away from industry level wage revision settlement. Hence we demand an early wage revision settlement.

In this backdrop, the UFBU came to the inescapable conclusion that we have to fight out and intensify our struggles. Accordingly, the following programmes have been decided upon:-

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1. 25.01.2008 ALL INDIA STRIKE 2. 25.02.2008 AND 26.02.2008 ALL INDIA STRIKE FOR TWO DAYS 3. LAST WEEK OF MARCH, 2008 INDEFINITE STRIKE

DEMANDS 1. STOP MERGER OF PUBLIC SECTOR BANKS 2. EXTEND ONE MORE OPTION TO JOIN PENSION SCHEME 3. RESTORE COMPSSIONATE APPOINTMENTS 4. FILL UP ALL UNFILLED VACANCIES THROUGH RECRUITMENTS IN BANKS 5. STOP OUTSOURCING OF NORMAL BANKING SERVICES 6. EARLY SETTLEMENT OF WAGE REVISION

Other preparatory programs will also be given separately.

We request all our constituent units and all our members to take all effective and immediate steps to implement the programs successfully.

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CIR.NO.AI /56 / 2004 - 2007 Date: 04 02 2008 TO: ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

25TH JANUARY 2008 STRIKE - A TOTAL SUCCESS

25th January, 2008, was yet another glorious day in the history of Bank Employees Trade Union Movement. Banking transactions of every description came to a grinding halt as the Bank Employees and Officers stayed away from their Branches / Offices in an exemplary show of unity and solidarity. Through this Strike, the Employees and Officers expressed their resolve to fight till a satisfactory settlement is reached. We congratulate each and every employee and Officer for this grand success. Comrades, the response of the IBA and Government has been non-serious, casual and are persisting with their rigid stand. Hence let us march on to the next programme of two days strike action on 25th and 26th February, 2008 and also for the indefinite strike action on the last week of March 2008. We reproduce hereunder the UFBU Circular No.4 dated 25 01 2008 and shall keep our members informed of further developments. With Greetings, Yours Comradely, T T NATARAJAN SECRETARY GENERAL

TEXT OF AIBOC CIRCULAR NO.4 DATED 25 01 2008

CONGRATULATIONS – STRIKE TOTAL SUCCESS

Bank employees and officers under the banner of UFBU have once again demonstrated their total unity and militancy by making to-day’s strike a total success in all the Banks all over the country. As per reports reaching us from different parts of the country, there has been enthusiastic participation in the strike action by the rank and file. By this strike, bank employees and officers have ventilated their genuine grievances and legitimate demands. The response of the IBA and Government has been non-serious and casual. But they must realize that the discontentment of the bank employees is bound to further intensify into serious agitational actions in the days to come if the issues are not solved expeditiously. There have been speedy steps to implement the consolidation and merger of the banks as seen in the case of merger of associate banks with State Bank of India.

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Not only were these unwarranted but also unilateral. As regards our demand for extending an option to join the pension scheme, the IBA has remained adamant even though UFBU has given its alternative proposal to resolve the issue even by sharing a part of the additional cost by mutual discussions. Even in the matter of compassionate appointment, adequate recruitments and stopping of outsourcing of normal bank works, IBA’s approach has been disappointing. On our charter of demands for wage revision many Banks have not given their mandate to IBA and IBA has not commenced the negotiations. In this background, strike was forced on us and it became inevitable. But we have shown that with unity and conviction we shall pursue our demands. We convey our heartiest congratulations to all our unions and members for the glorious success of the strike. Let us march on to our next programme of two days strike action on 25 & 26. 02. 2008 and also for the indefinite strike action on last week of March 2008. With Greetings, Yours Comradely, S/d- C H VENKATACHALAM CONVENOR

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CIR.NO.AI / 57 / 2004 - 2007 Date:18.02.2008 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

BUDGET 2008

Every year the Finance Minister elicits the views of the representatives of the various sections of the society including the trade unions before the presentation of Budget. AIBOC have been demanding that a similar opportunity to be given to them as well. However, the Government is yet to respond to the request. Therefore, AIBOC submitted a written note giving a detailed view of the expectations from the present Budget for the consideration of the Finance Minister, New Delhi. Text of the letter addressed by AIBOC to the Finance Minister is reproduced hereunder for the information of our members. With Greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

TEXT AIBOC’S LETTER ADDRESSED TO FINANCE MINISTER DATED 30.01.2008

BUDGET FOR 2008- 2009 - ISSUES OF BANK OFFICERS

We are happy to note that your goodself has begun the exercise of

eliciting the views of the cross sections of the society with regard to the Budget 2008-2009 which is under consideration for presentation to the Parliament in the next month. We also observe that several trade unions representing different group of working class are also appearing before the Ministry and making their own presentation as regards their expectation form the ensuing budget. We have been seeking a similar appointment for appearing in a delegation on behalf of All India Bank Officers’ Confederation to make a detailed presentation pertaining / concerning our issues in relation to the presentation of the budget.

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2. Pending invitation to appear on behalf of the Confederation before the Ministry of Finance we would like to make written submissions of our views for your valuable consideration. TAXATION: 3. The present taxation system needs a re-look in order to ensure that the common man living below the poverty line is provided succor and his basic necessities are met at a reasonable level. The weaker sections need continued protection from the Government. The taxation should be liberal when it comes to the basic necessities such as food, shelter, fuel etc, which are regularly required by the weaker sections of the society. 4. Ours is an agrarian economy. More than 70% of the population lives in villages and pursue the agricultural and allied activities. The recent trend of the farmers committing suicide is an indication that they are not able to survive the competition in the market. The Government should consider these aspects seriously and provide appropriate social security measures to those who are indebted to the banking system. SUBSIDIES AND SUPPORT PRICE: 5. The subsidies to agriculture and support price for their produce must continue in case the country is really proud to claim accelerated growth in the economy and increasing GDP growth. The Collection of Income Tax and other revenue is growing very substantially. The Government has received a record amount of Income Tax both from individuals and corporate sector. The Government should consider using a major chunk of these revenues for the welfare measures of the Common man. SOCIAL SECURITY MEASURES: 6. The Government has not come out with any concrete proposal for providing safety net in respect of the weaker sections and down trodden in regard to the medical, insurance etc. The Government should launch comprehensive social security measures including the unemployment allowance to those youths who are unemployed after their studies. SALARIED CLASS – EXEMPTIONS: 7. The Officers working in the Banking Industry come under the salaried class. They are paying tax sincerely. They are not compensated for prompt payment of tax and the tax is being deducted by the salary disbursing authorities. Their compensation is directly related to the cost of living and they live hand to mouth in view of ever growing cost of living.

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They pay the tax in advance from day one since it is collected at source by the disbursing authorities. The net take home gets drastically reduced on account of higher tax that they are required to pay. Therefore there is a need to give certain special concessions and need your immediate attention to some of the issues mentioned here under.

a) Income Tax Exemption Limit: The Income Tax Exemption limit under personal tax should be increased considering the growing cost of living index. The present limit is inadequate and hence it should be raised to Rs. 2 lacs.

b) Rebate on expenditure incurred on Education: The Bank Officers are subject to transfer from one place to another. They are compelled to spend a lot of amount towards the education of their children. They are also required to pay heavy donations to get the admission for their wards in the educational institutions at transferee place. The fee structures are substantial especially for pursuing the professional courses. We submit that the expenditure incurred towards education should be exempted from payment of tax to the extent of 20% of the gross salary of the officers.

c) Medical Expenditure (100% Tax Rebate): (i) The Officers are not eligible to get full reimbursement of medical expenditure incurred in respect of self and family members. The Medical Expenditure is one area where the Officers are compelled to spend quite a lot. The current rebate in respect of Medical Expenditure is restricted only to the reimbursement obtained from the managements in case treatment is taken at CBDT approved hospitals. There is a need to provide rebate in respect of the expenditure met by officers themselves. We therefore suggest that the expenditure incurred on account of health care wherein the reimbursement is available from the management to the extent of 100% without any cap on the amount and the same exemption of income tax be extended. (ii) As regards the expenditure incurred by the Officers over and above the reimbursement to the extent of 75% should exempted from Income Tax without any ceiling. (iii) It is practically not possible to verify the status of hospital according to CBDT stipulations before admission of a patient in emergency. Hence restriction of exemption for tax from CBDT approved Hospitals be removed to cover all types of Hospital.

d) Rebate on Expenditure Incurred on Professional Books and Periodicals: The budget should consider the provision of rebate in respect of the expenditure incurred on professional books and periodicals by the Officers to a reasonable extent.

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e) Tax on Fringe Benefits – Perquisite Etc. (i) There is a need to streamline the existing taxation in respect of the Fringe Benefits, Perquisites etc that are provided to the Bank Officers. The Government has issued clarification in respect of the accommodation and furniture, directing the Banks to recover the perquisite tax over and above certain limits which has been causing serious hardship to the officers’ community. The perquisite tax on leased housing and furniture is very high, whereas Government employees are exempted from payment of such tax. But Bank officers are not treated on par with Government employees for the purpose. (ii) The Government also permitted the employer of the institutions to pay the perquisite tax under their discretion. This liberalization was utilized by most of the private banks and also Reserve Bank of India. However, in respect of the Bank Officers in Public Sector and also Old Generation Private Sector Banks there is no such concession. Hence, Bank Officers should be exempted from payment of perquisite tax on leased housing and furniture provided by the Bank as in the case of Government employees.

ENCOURAGEMENT TO SAVINGS: 8. The salaried class would like to save a major chunk of their earnings for their future. However, the encouragement to savings is far from satisfactory. The current rate of exemption in respect of savings in various form of investment is neither attractive nor encouraging. There is a need to have a re-look at the present structure and permit the salaried class to have exemption limits for availing the tax concessions through savings in authorized securities including the banks, postal, insurance and market related investments. There should be sufficient incentives and encouragement to the salaried class to invest their funds in long term savings. 9. We shall be glad if you will kindly give us an appointment to submit our oral presentations in a delegation on various aspects relating to the Budget 2008. In the meanwhile, you may examine our various suggestions given above for favourable consideration. 10. Please treat the matter as urgent. Yours Faithfully, -Sd/- (Amar Pal) General Secretary

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CIR.NO.AI / 58 / 2004 - 2007 Date:26.02.2008 TO ALL MEMBERS PLEASE CIRCULATE Dear Comrades,

CONGRATULATIONS – IBA RELENTS MOU SIGNED – AGITATIONS DEFERRED

The agitation programmes have forced the Government and IBA to relent and they have agreed to start the negotiations with an earnest attempt to arrive at the solutions within a time frame. In this regard an MOU was signed on 25-02-2008 at Mumbai. We congratulate all our members for their active participation in the agitation, which has forced the authorities to talk to the UFBU leaders and start the negotiation process. We hope that IBA will maintain the trend and arrive at the mutually agreed solutions at the earliest. We reproduce hereunder the UFBU Circular No.9, dated 25-02-2008 and shall keep our members informed of further developments. With Greetings, Yours Comradely, T. T. NATARAJAN SECRETARY GENERAL

UFBU/2008/CIRCULAR NO.9 Mumbai

25-02-2008 To: All constituent Unions/ Members

Dear Sirs, Congratulations – IBA relents MOU signed – Agitations deferred

Vide our Circular No.8 dated 23-2-2008 we had informed all the units and members that the conciliation meeting before Chief Labour Commissioner on 22-2-2008 as well as the discussions with the IBA held on 23-2-2008 had failed to yield any satisfactory results and hence UFBU decided to proceed with our 2 days strike on 25 / 26-02-2008 and also decided that we shall commence the indefinite strike from 24th March 2008.

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However, yesterday late night and today early morning (between 11.00 pm and 4.00 am) IBA were in touch with us as to whether any mutual solution could be worked out to avert the strike. We had again reiterated our stand points as explained to IBA on 22-02-2008 and 23-02-2008 and within those same parameters only, any solution can be worked out. As a result of these efforts IBA came forward and agreed to the following understandings.

1. Reconcile the actuarial calculations relating to pension with a view to consider extending one more option of pension to the remaining employees who are under CPF.

2. The issue of allowing coverage to the employees and officers through pension scheme recruited in the banks between 1.11.93 and 28-9-1995 which will be once again taken up with the Government for reconsideration.

3. As regards restoration of compassionate appointment scheme, the IBA requested the UFBU to suggest improvement, modifications etc, to the scheme to enable IBA to refer the matter to the Government for further consideration.

4. On the demand of UFBU that proper recruitment is not taking place in banks resulting in increased workload for the employees and officers, the representatives of IBA maintained that recruitment is a bank specific function. However, the UFBU maintained their own view that the IBA should advise the banks to ensure adequate recruitment in the banks through proper procedure etc.

5. As regards outsourcing, the representatives of IBA agreed to discuss the matter with UFBU keeping in view the existing parameters and regulatory guidelines.

6. As regards merger of the public sector banks the representatives of IBA submitted that there are no directions or guidelines from Government of India to banks on the subject of merger/consolidation of banks and as such the demand is premature. The UFBU did not agree to 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.

7. As regards revision of wages the representatives of IBA submitted that the machinery has been set in motion and once the mandates from all the banks are available bilateral negotiations will commence.

In view of the above outcome, UFBU has decided that our strike / agitations would stand deferred.

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Comrades, salutes to all our Union and members for their rock-like unity, solidarity and their readiness to implement the strike call which has made the IBA to relent and made this positive outcome possible

The talks with IBA will begin on 03-03-2008 to convert the demands of our struggle for an amicable settlement.

Further developments will be informed to units and members in due course.

We convey our hearty greetings and congratulations to the entire membership under the banner of UFBU for this achievement of understandings, which will enable us to take the issues forward.

With greetings

Yours comradely,

S d/…

C H.VENKATACHALAM

xiv triennial conference held at chennai on 25.12 · compassionate appointment scheme 8. second...

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