Minimum demand which must be achieved now in Eleventh Bipartite by Pannvalan sir

Minimum demand which must be achieved now in Eleventh Bipartite by Pannvalan sir

** It may be noted that Pannvalan sir is among bankers who have deep knowledge of banking and related sector and his reviews and forecasts are well detailed and much appreciable among banking community. Here, we have presented his thoughts on future demands of Eleventh bipartite. **

We are all aware that the Department of Financial Services, Ministry of Finance has set the ball rolling for commencement of 11th BPS and they have issued a notification to all the banks that are part of the process, advising them to complete the whole process well before the due date i.e. 1st November, 2017.

So, I have now been tempted to initiate the process, by making these suggestions.

Before proceeding further, we must remember that the implementation of new pay scales for central government employees under 7th CPC is already under way. Their new pay scales are expected to be implemented with effect from 1st January, 2016.

Their new basic pay is expected to vary from 2.57 to 2.78 times their present pay.

Even at the pre-revised level (i.e. 6th CPC level), their Basic Pay is higher than the revised Basic Pay of the bank staff, after 10th BPS.

Alright, let us now proceed to arrive at the new Basic Pay to be fixed in 11th BPS.

Assumptions:

1. The average All India Consumer Price Index for Industrial workers (Base: 1960=100) is expected to be at 6777 for the quarter ending 30th September, 2017 (assuming that the annual inflation will be 6% for the next 2 years).

2. Accordingly, the DA as on 31-10-2017 on the exiting basic pay will be at 58.40%.

3. Unlike last time, it is expected that the full amount of D.A. outstanding as on 31.10.2017 will be merged, as is being done in the case of Central Government Employees.

4. So, the whole D.A. at 58.40% will be merged with the existing basic pay, at the time of next wage revision.

5. Then, the Special Allowance with applicable D.A. thereon (introduced in 10th BPS) is also to be merged with the existing basic pay.

6. Then, on this amount, an increase of 40% (additional load factor) is given and fixed as the revised Basic Pay. It is then rounded off to the next higher 100.

Now, let us see how much it translates to, so as to arrive at the revised Basic Pay for each staff, depending on his cadre/grade. Variation occurs here, only because of the difference in the rates of Special Allowance fixed for officers in different grades and scales.

→ Note:

1. The new Basic Pay is arrived, by multiplying the present Basic Pay by the factor as stated above.

2. Then, the new basic pay so arrived at is raised to the next higher 100 Rupees.

3. This figure will be the new Basic Pay.

4. The Basic Pay mentioned above is exclusive of the Stagnation Increments, wherever applicable.

5. Amount of new increment is slightly lower than 4% of the revised Basic Pay at each stage.

6. It must be noted that even the revised Basic Pay at this level is far below the proposed Basic Pay of the Central Government staff, as per 7th CPC.

7. Since the entire D.A. outstanding as on 31.10.2017 is to be merged with the existing Basic Pay, the new D.A. as on 01.11.2017 will be ‘Nil’.

8. Therefore, we are fully justified in demanding the revised Basic Pay at this level and we need not feel guilty that our demand may sound unreasonable, impractical and excessive.

9. Unless we convince ourselves regarding the justification in our demands, we cannot go the bargaining table with total confidence. This we must remember.

→ Some Important Points

1. Already we are far behind the central government employees in pay and perks and if we fail to bridge the gap between them and us at the time of 11th BPS, the gap will keep on widening further and further, with each wage revision.

2. Already the bank jobs have lost their charm, for the highly qualified and meritorious candidates and the attrition rate is also very high as compared to any other sector or industry.

3. Moreover, we must remember that nearly 40% of the existing staff in the banking industry retire in the normal course (on attaining the age of superannuation), in the next 4 years. The exodus will be like a deluge between 2018 and 2020.

4. With the recruitment not taking place at the desired levels, the staff position will only deteriorate, with the indiscriminate branch expansion by all banks in general and public sector banks in particular. With the introduction of new products every now and then, the situation will turn precarious.

5. Therefore, unless we make the bank job a more lucrative and interesting profession, banks especially in the public sector cannot attract good talent and retain it.

6. If the revised basic pay is not at the level projected hereinabove, it will only reflect upon our weak bargaining power and the inability of our union leaders to feel the pulse of the staff especially those in the public sector banks.

7. If we cannot achieve revision as projected here, we must demand CPC scales or a separate Banking Pay Commission. For that to happen, disbanding of UFBU is a sine qua non.



Source:BankingUpdates.