Merger of PSUs into 7 Banks

Total Offer in Hike as on 24.01.2015

To understand offer of improvement by IBA- Some of our friends are asking about hike , this is the offer of IBA I.e. 11% to 12.5%.
Last time it was 10.3% +7.2% I.e. pay slip increase+cost of superannuation benefits.Total 17.5%
Now the offer is 12.5% +12% Total 24.5%

Settlement Update 24.01.2015

Dear friends.. latest update about our settlements:
1) 12.5% offer (still negotiating with IBA for further improvement) by the IBA as on date is equivalent to Rs.3940 crores is only on payslip components (9th settlement 17.5% offer was inclusive of payslip components + all other expenditures - total of 3000 crores)
2) only for medical expenses in this settlement agreed by IBA is around 500 crores..
3) medical expenses for self & family 100% reimbursement by banks without any ceiling (previously it was 100% for self & 75% for families with ceiling)
4) petrol allowance for clerks also
5) improvement in leave conditions for award staffs
6) 60% increament in basic pay
7) 400 points (in 10th settlement alone) of DA merging with basic pay (7th + 8th + 9th settlement total da merger of points was 425 points..)
8) these things were achieved without compromising existing conditions

PROGRESS IN THE CURRENT NEGOTIATION

To-day's (24.01.2015) meeting in TNBEF was attended by a large number of comrades. Com Chv explained the progress in the current negotiations. I give below the details for your informations:

1 Hospitalization reimbursement is 100% for both self & Dependant.

2 There is no limit/cap for the tests etc.

3 Normal delivery charges is reimbursable up to Rs 35000/-

4 Cesarean delivery charges reimbursable up to Rs 50000/-

5 No limit for package treatment.

6 Hospitalization reimbursement even after retirement on payment of very nominal premium.

7 Paternity leave for 15 days twice in the service ( beneficial for young employees)

8 Un availed CL 4 days can be taken without MC.

9 PL leave apply period reduced from 30 days to 15 days.

10 Combined CL restriction of 6 days at a stretch is removed.

11 Rs 1 lac Ex gratia is permitted for meeting preliminary expenses in cases of serious ailments.

12 Full period of absence to those donate kidney is treated as leave with full pay.

13 Child adoption leave to be granted for 6 months out of maternity leave.

14 Leave for surrogacy child birth is permitted up to 6 months.

15 leave for hysterectomy increased from 45 days to 60 days.

16 Accumulation of PL to be increased to 300 days ( after referring)

17 Sabbatical leave to be extended to male employees

18 Study leave to be introduced

19 Leave Bank to be introduced wherein employees can donate leave(including Sick leave) to the needy employees

20 Extraordinary leave is increased

Other issues like Special Pay/Conveyance/Petrol/LFC etc will be finalised on 30th meeting. Increase in percentage load will be decided on 03 Feb 2015 meeting. AIBEA feels in case five day week is introduced, every day there will an one hour increase in working hours which will affect our (award staff) employees especially women employees, which further delays their reaching home in the evening hours.

PAY SLIP COMPONENT

PAY SLIP COMPONENT   –   WHY ARE WE TALKING ABOUT THIS IN THE TENTH BIPARTITE SETTLEMENT10th Bipartite Settlement  we started hearing a new word.   Pay Slip Components, suddenly IBA and UFBU both started talking about it.  Want to know why my dear friends,  here we go.In any bipartite , first thing that both parties would agree upon is the merger of DA and effective date of implementation, Next will be the percentage hike.  Third and the most difficult one is distributing the same  into various categories such asPay Slip Components: Most important, this is what we get every month salary what we call it, consists of  Basic,DA,HRA,CCA, PQA,FPA etc.,Non Pay Slip Components: We can broadly divide them into two.  a) Those settled under bipartite such as Medical Aid, Hospitalisation Expences, Halting allowance, LFC, Compensation on transfer.   b)  Other Allowances such as Petrol Limit, House Rent, Entertainment expences, Subscription allowances etc., which are negotiated by individual banks with their respective unions and associations.Superannuation benefits: Pension, Gratuity, PF contribution, Encashment of Leave at the time of superannuation etc.,Except Pension under superannuation benefits all others well defined and are same for all the employees and varies according to their service and cadre . But iIn case off superannuation benefits we have three categories of employeesPension Optees.PF oftees. ( Very few people are left in this category )New Pension scheme employees. ( They are yet to witness a Bipartite )The cost of for PF optees  was 10% of their basic pay for all the bipartites. However  The cost of the pension opetees  was pegged at  26.5% of the basic for 7th Bipartite, 30.5% of the basic for 8th bipartite and 36% for 9th bipartite.Here is the tricky point, for PF optees Banks contributed 10%.  For pension optees IBA has forced the employees to share the “  incremental cost “ i.e over and above 10% basic pay by the employees.  ( All the employees including who had opted for PF )  The  “ incremental Cost was shared by all the employees in the following mannerDuring the 7th Bipartite, IBA requested the Unions to bear additional cost on pension on account of increase in basic pay, in 50:50 proportions over and above 10% of pay.  The additional cost on pension, on account of increase in basic pay was estimated at 26.5% of the pay.  Excluding 10% of the share of the employees, remaining 16.5% cost was shared in the ratio of 8.25 / 8.25 each, by Unions and Management. during 8th Bipartite, incremental cost on pension on account of change in basic pay was estimated at 30.5% of pay.  Excluding 10% share of employees, remaining cost was shared in the ratio of 11.25% and 9.25% by the Management and Unions respectively.In the 9th Bipartite, incremental cost on account of salary revision is estimated at 36% of pay and in excess of 10% contribution by the employees, will be shared in 50/50 ratio at 13% each, by the Unions and the Management.For the shortfall in the pension fund of pension optees all other employees have contributed by accepting to bear the incremental cost.  Other wise,  PF optees should get more salary than pension optees as superannuation benefits were less.   ( 26 % of basic pay for 9th bipartite which is really huge ).Now for tenth bipartite settlement another group was added NPS ( New Pension Group ),  the group which is very active, dynamic, courageous.   They are not like us, who were silent, paid twice for the pension what ever they have demanded.Now there is no other way, IBA / Banks have to contribute total  retirement benefits by themselves,as they cannot differentiate three different group’s of employees, which leads to total confusion and chaos, as there are already court cases against 9thbipartite, so they are talking of pay slip components.For simplicity and easy understanding I am posting the following exampleFor Officer                                      BASIC                 DA                   Total Salary        SUPERANNUATION       TOTAL                                                                                                                              BENEFITS                     AMOULMENTSPENSION OPTEES   14500              15921               30421                  3770                              35641PF OPTEES                14500              15921                30421                  1450                              31871NPS                              14500              15921                30421                  3042                              33463