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Circular No.7/VI/2015

March 16, 2015








Dear Comrades:





In continuation of the earlier meeting held on January 14, 2015  one more round of discussion on Officers  issues, was held at IBA office today, at 3.00 pm.


IBA was represented by Sh. Ashwini Kumar, CMD, Dena Bank, Sh. Shailesh Verma, CGM, SBI, Sh.M.V.Tanksale, CEO, IBA, Sh. K. Unnikrishnan, Dy.CEO, IBA, besides officials of HRD Department of IBA. AIBOA and INBOC were representated by its General Secretaries.  Other organizational representatives were also present.


The CEO, IBA while initiating the discussion complemented for arriving at the M.O.U on 23rd February, 2015, emphasized the need to conclude the finalization of the matters at the earliest.  Shri Ashwini Kumar  also congratulated the leadership for clinching the wage component together with 2 days holidays on Saturdays.


It was mutually accepted that the salary and allowances, as well as the perquisites and medical facilities listed in the charter of demand will be taken up for discussions once the draft scales are drawn up by the IBA for discussion.  In the matter of discipline and Appeal regulations, it was agreed to submit once again a comprehensive chart to IBA which will be taken up for discussion by a small committee of IBA for further discussion in the HR committee of the IBA.   In the matter of regulated working hours, it was agreed by IBA to issue a communication to the member banks, not to call officers on Sundays and Holidays, except on some specified emergent circumstances.


In the matter of leave rules, it has been broadly agreed to follow  the provisions of the Sixth Pay Commission recommendations.  A clear submission was made to monetize the LTC scheme on the lines of RBI.  The income stipulation for categorizing the “dependent” has been agreed to be enhanced substantially with the stipulation that the dependent is not an Income Tax payee.  It has been agreed to recommend to the government to consider Banking Administrative Tribunal on the lines of CAT.  It was also informed that the protection of emoluments on transfer will also be positively considered, as the same was drawing the attention of the top management team of the various banks.  As the issues discussed are to be given an appropriate shape, we may term this round of discussion as inconclusive.  In our considered assessment there is certainly a forward movement in this round of discussion.  It was expressed by the representatives of IBA to arrive at a positive conclusion by the end of this month through mutually convenient date of negotiations. It was further informed that IBA is actively engaged in drawing up the draft  scales of pay and expected to discuss  the same at an earliest possible time with us.


Our endeavour to reach a  reasonable and respectable settlement in terms of monetary gains as well as appropriate advancement in the other service regulations, like discipline and appeal regulations, will continue.


With Greetings.


Yours Comradely,


 (S. NAGARAJAN)                







Circular No.6/VI/2015

February 23, 2015

            Camp: MUMBAI




Dear Comrades,






In the background of C.L.C.(Central) Delhi, counseling IBA and also representatives of the unions  to get back to the negotiation on 20.02.2015, in which Com.Alok Khare, Vice Chairmen, Com.S.S.Shishodia, President and Com.Sanjay Khan  Joint Secretary AIBOA participated and at the CLC’s advice IBA invited the unions for discussions on 23.02.2015.


 To-day, a meeting was held at IBA office at 11.30 am.  Representatives of all the eleven unions participated in the discussions.


2.         IBA team was led by Shri.T.M.Bhasin, Chairman IBA, Smt.Arundhati Bhattacharya Chairman SBI, Smt.V.R.Iyer, Chairperson and Managing Director BOI, Shri.Rajeev Rishi,CMD,CBI, Shri.Ashwini Kumar,CMD DB, Shri.Arun Tiwari CMD UBI, Shri.Rakesh Sethi CMD All Bank, Shri.Animesh Chauhan MD&CEO OBC,Shri.Ashwini Mehra DMD SBI Shri.Shyam Srinivasan CEO Federal Bank, Shri.M.V.Tanksale CEO IBA, Shri.K.Unnikrishnan Dy CEO,IBA, Shri.K.S.Chauhan besides officials of HR department of IBA.


3.         While initiating the dialogue Shri.M.V.Tanksale CEO IBA expressed the progress made in the last 18 rounds and also the meetings held with the subgroups with workmen and officers during this period. Shri.Rajeev Rishi Chairman Negotiating Committee IBA, picked up the thread from the last discussion held on 3.02.2015 and reiterated that unions should come forward with the revised demand. Com.M.V.Murali, Convenor UFBU presented in a pointed way the chronological progress of the conduct of the negotiations and also the ‘U’ turn of IBA on 03.02.2015 vis a vis the assurance made on 19.01.2015 precipitating the crisis.


4.         Shri.T.M.Bhasin, Chairman IBA quoting the details of the earlier bipartite benefits, ultimately indicated the paying capacity of the individual banks is the deciding factor, indicated failure at Industry level to force a situation of individual bankwise settlement. He also appealed to appreciate the present situation in Q3 performance of various banks and realize the need to fold up the negotiation with the offer of further 0.5% increase from 13% made on 03.02.2015 by Shri,Rajeev Rishi, Chairman Negotiating Team IBA.


5.         Smt.A.Bhattacharya Chairman SBI in her pointed  presentation dealt the present position of Public Sector Banks vis a vis Private Sector Banks, present capital infusion announcement of Rs 6990 crores by Government of India and also to realize the need to finalise the agreement keeping in mind the various serious developments having global compulsions and also stipulations. To get the priority reallocation of PSB employees at par with Central government employees for the purpose of admission of the wards in Kendriya Vidyalayas by her efforts was also shared in the meeting.  Smt.V.R.Iyer, too supported the view points expressed by Chairman SBI and explained the need to function as a team to keep PSBs in tact and not to allow the Private sector banks to sneak in to capture the business from us..


6.         After protracted negotiations, ultimately the understandings have been clinched which are as follows;


 a.        Date of Effect      1.11.2012.

 b.                b        Total Increase of 15% in Payslip components- amounting of Rs 4725 crores.

c.                c         Construction of new Basic Pay by merging 60.15% of D.A impact where of not to exceed 2% of BP plus DA

amo                      amounting Rs 597 cr.

d.                 d         2nd and 4th Saturdays will be holidays and other Saturdays will be full working Days.


7.         Thus the exercise to construct new Basic Pay effective from 1.11.2012 has been initiated by sealing the agreement, with the first step to clinch a new working condition in the era of Information and Communication Technology explosion, quite nearer to our most important demand of 5 day working.


8.         AIBOA place on record the role played by Com.D.Raja CPI MP leading AIBEA –AIBOA delegation to meet FM on 19/02/2015 and making sincere efforts to break the deadlock in the Banking Industry avoiding paralysis of the nerve centre of the economy in the last week of this month., due to the proposed 4 days strike which now stands called off consequent to signing of MOU as above. Detailed Pay structures may now be worked out with IBA in subsequent meetings besides discussions other left out issues including of those pertaining to retirees.


9.         Comrades, while rejoicing this success of wage increase, let us not be complacent in our efforts to protect our Public Sector character of our Industry and also preserve the jobs and jobs security secured by the founding fathers of our movement.



Yours comradely,






[Central Office: Chennai]



[Central Office: Chennai]


CIRCULAR TO ALL UNITS                                                                                                                                                                  19TH February, 2015

Camp: New Delhi

Dear Comrades,

AIBEA-AIBOA’s meeting with Finance Minister today


In order to take up some of the important issues with the government, we had sought for an appointment with the Finance Minister, Government of India.  We are happy to inform our units that with the help of Com. D. Raja, Member of Parliament, CPI, we met Shri. Arun Jaitley, Hon. Finance Minister today in his office in Delhi.  From our side, Com. Rajen Nagar and Com. C.H. Venkatachalam, President and General Secretary of AIBEA and Com S.S. Shisodia and Com. S. Nagarajan, President and General Secretary of AIBOA were present in this meeting.  Com. D. Raja was also present along with us. 


For about 40 minutes, we explained our issues to him and Finance Minister gave a very patient hearing with positive observations on some of the issues raised by us.  We also submitted a joint memorandum to him covering the issues taken up during the discussions. 

We reproduce herein the copy of the Memorandum for the information of our units and members.


Yours comradely,


                                                  C.H. VENKATACHALAM                                                    S. NAGARAJAN

                                                  GENERAL SECRETARY                                              GENERAL SECRETARY

                                                            AIBEA                                                                       AIBOA





[Central Office: Chennai]



[Central Office: Chennai]


Dated : 19th February, 2015


Shri. Arun Jaitley,

Hon. Minister for Finance

Govt. of India

New Delhi


Dear Sir,


On behalf of All India Bank Employees’ Association (AIBEA), the leading trade union of bank employees in our country and its counterpart,  All India Bank Officers Association (AIBOA),  we thank you for sparing your valuable time to meet us and we wish to submit the following few important issues for your personal attention and favourable consideration.


1. Wage Revision for Bank employees and officers :  As you are aware, the revision of wages and service conditions in the banking sector is due from November, 2012.  16 rounds of negotiations have taken place between the Indian Banks Association and the Unions in the last more than two years.  But unfortunately, the issue is still lingering without resolution thus frustrating the entire workforce in the banking industry.  Everyone is fully aware that the price rise and inflation has been on the higher side in the last few years and this has seriously eroded the real income of the wage-earners.  Additionally, the banking sector has expanded in the recent years with larger clientele to serve and varied Governmental schemes to be implemented. In the absence of adequate manpower at various levels, the existing staff are over-burdened with very heavy workload in the bank branches.  In this background, the entire workforce deserves and rightly expects a fair increase in their emoluments. 


But unfortunately, the Indian Banks’ Association has been pleading on behalf of the Banks, their limitation in taking any huge burden of wage revision cost as the net profits of the Banks have been under stress due to higher provisions on account of bulging bad loans. 


While we fully share their concern, we may submit that that the Operating Profits of the Public Sector Banks have gone up from Rs. 99,981 cr in March 2011 to Rs. 116,345 cr in March, 2012 and to Rs. 121,917 cr in March 2013 and further to Rs. 127,652 cr in March, 2014.


Since the provisions for bad loans and other contingencies have increased from Rs. 55,080 cr in 2012 to Rs. 66,831 cr in 2012 and to Rs. 71,334 cr in 2013 and further increased to Rs. 90,633 cr in March 2014, obviously the net profits have come down and stood at Rs. 44,901, Rs 49,514, Rs 50,583 and Rs 37,019 crores respectively.


But it is unfair to pass on the entire burden of the bad loans and the consequent provisions for the same on the shoulders of the employees.   Hence IBA should take a holistic view and come forward to resolve the demands amicably.


Wage revision has been taking place in various public sector undertakings and very reasonable wage revision has been given.  Employees in central government and many state governments also get better wages.  Inadequate wages in the banking sector is a major demotivation and hence the expectation of bank employees and officers for a fair increase in wages in very legitimate.


Govt. should intervene:  When the entire workforce in the banking industry is making every effort to implement the various programmes of the Government including the recent Jan Dhan Yojana, when employees and officers are working under lot of stress and maximum difficulty due to manpower shortage and increased volume of work, we regret that the issue remains unresolved and the workforce is constrained to express their grievances through various protest actions which are otherwise avoidable if the issue is attended to and resolved expeditiously.


We urge upon you to intervene in the matter and advice the IBA to adopt a reasonable and fair approach and we assure that we would not lag behind in reciprocating the same so that an amicable solution is worked out immediately. Wage revision settlement brooks no further delay.


2. Regulated Working Hours for Officers in the Banks :  It will be highly appreciated that except the senior officials and Executives of the Banks, other officers and supervisory staff in the Banks are normal employees of the Banks and it is a pity that there is no regulated or prescribed working hours for these officers.  Being staff members with higher responsibilities they may not be treated at par with the workmen employees in the clerical and subordinate cadre but by no stretch of imagination, they may be expected to work in the Banks without any prescribed or defined working hours in the normal course.  As and when it is needed and warranted, officer staff do rise to the occasion but this cannot be used as a ruse to avoid prescribing and providing some broad guidelines of defined working time for the officer staff also.  This is a very vital issue which concerns the entire officer staff in the banking sector and deserves a positive approach from the Government and Bank managements to find out a workable and amicable solution to the same. 


3. Improvements in pensionery benefits :  Pension and other superannuation benefits are a very important part of the service conditions of the employees and officers.   In the Banking sector, pension benefits have been akin to Government pension rules and have been introduced on such lines.  But while there is revision and updation of pension along with the wage revision of in-service employees in the Government, there is no such provision in the Bank Employees Pension Regulations.  Employees and officers who retired from 1986 onwards continue to draw the same pension which was fixed at the time of their retirement.  Similarly, the formula of Family Pension payable to the family of deceased employees also remains unaltered in the last three decades while the same has undergone improvements in the government rules and even in RBI.  Even the demand for extending 100% DA compensation on Pension for those who retired prior to 2002 is awaiting favourable consideration by the Government. 


The employees and officers who have retired from the Banks look upon the Government and the IBA to consider their demands with sympathy.  Hence we seek your kind and personal attention to the above genuine demands and cause suitable instructions and advice to the IBA.


4.  Problems faced by Daily Deposit Collectors in Banks:   

Banks have been engaging the services of Daily Deposits Collectors to augment deposits, from the general public, since late 1970s.   The need arose to codify the incentive remuneration payable to them and hence the issue was referred to a CGIT in Hyderabad in 1980.  The Tribunal gave its Award in 1988 prescribing incentive commission with minimum Fall Back Wages at Rs. 750/- per month, Conveyance amount of Rs. 50/100 etc. and also held that the Deposit Collectors are ‘Workmen’ under the I.D. Act.  Bank managements did not accept the Award and challenged it before High Court of Andhra Pradesh and the High Court gave its judgement in 1997 confirming the Award.  Still the Bank managements did not implement the Award and chose to go to the Supreme Court on appeal. In 2001, Supreme Court also upheld the Award but the process took nearly 13 years to get the Award of 1988 implemented.   Since the incentive commission and Fall Back Wages were based on inflation level and consumer price index of 1988, the need arose to demand revision of the rate of incentive commission linked to current price-level.  Bank managements refused to concede this genuine, justified and reasonable demand and hence the demand was referred to a Tribunal in 2003.  After 10 years of proceedings, the CGIT gave its Award on 7.10.2013 revising the rate of incentive commission as under w.e.f. 19.7.2005 . 


The Central Government has duly notified the Award on 19.11.2013.  15 months have lapsed since the Notification was issued, but the Bank managements have not yet implemented the Award.  The action of the Bank Managements in not implementing the Award is unfair and illegal having regard to Section 17 of the Indl. Disputes Act, 1947.  The Government’s National Litigation Policy advisory also suggests that Awards in favour of the workers should not be automatically be challenged and invariably implemented without dragging workers from one Court to another Court.

At a time when Banks are required to reduce their high cost deposits and mobilise low cost deposits, the approach of the Banks in discouraging the Daily Deposit collection Schemes and demotivating the Deposit Collectors is unfair, unreasonable and clearly anti-labour. Hence, we urge upon your intervention to advise the IBA & Banks to implement the Award immediately to uphold the sanctity of the Award secured by the Deposit Collectors after 10 years of waiting before the Tribunal.  If there are any issue concerning the Banks in this regard, we assure to sort out the same through mutual discussions.  The matter deserves your personal attention, Sir.


5. Problems of Co-op. Bank employees and Co-op. Banks:


a. Income Tax Relief sought for Cooperative Banks

The erstwhile Union Government in the year 2006 Budget had introduced the scheme of levying of income-tax on cooperative banks, which are coming under the purview of B.R. Act.  Levying of income-tax on the profits of the co-operative banks has adversely affected the vast sections of population of our country, who belong to the economically poor and suffering masses in the farm sector.  Your Honour must be aware that the slapping of income-tax on the profits of the cooperative banks was a deplorable decision by the previous Government.  Whatever might be the pleading from all sections of people for removal of income tax on the profits of the co-operative banks, the then UPA Government did not bother about the well-meant pleadings of the various co-operators, Apex Co-operative Banks, National level co-operative credit institutions, apart from our All India Bank Employees’ Association.  All the pleadings were ignored and income tax was levied.  We would request you to please remove the levying of Income Tax on the profits of the Co-op. Banks by repealing the amendment brought to Section 80(P) of Income Tax Act.


b.   Agriculture and Rural Development Banks all over the country have been facing numerous problems including loss making situation:

We have desired that the Task Force – II recommendations headed by Prof. A. Vaidyanathan for providing the balance of Rs.3,070 crore for totally eliminating the loss making situations of these Agriculture and Rural Development Banks will have to be released not only for improving the PCARDBs, but also for improving the disillusioned conditions of the farmers of our State.


c.  Rate of interest on crop loan:

Crop loan is one of the major credit facilities given by the cooperative banks all over the country, to the extent of Rs.1,07,000 crore, which benefits mostly the small and marginal farmers and more particularly the Dalits, who are mainly dependent upon the cooperative banks for their credit needs.  Even though the ultimate rate of interest for crop loan is varying from State to State, the basic factor that determines the rate of interest for crop loan is the interest that is charged by NABARD to State Co-op. Banks for crop loan disbursement.  We desire that the NABARD shall charge not more than 2.5% rate of interest for reimbursement credit to State Co-op. Banks for being given by them to the Central Co-op. Banks and also the Primary Agricultural Co-op. Societies and finally to the farmers of our country.  By giving subsidy to the co-operative banks, both by the Centre and also by the State Governments, the ultimate rate for the farmers for getting the credit facility for the farm operations shall be at 0%.  The farmers of our country deserve to get all help and support both from the Central and State Governments.  Today the rate of interest for crop loan in many States is varying from 0% to 7%.  We would desire that the GOI may kindly give reimbursible credit to the State co-operative banks at not more than 2.5% and the present rate of interest at 4.5% by NABARD to SCBs is not only against the interest of the farmers but also against the interest of the masses of our country.


d.  Agriculture and Rural Development Banks and Primary Agricultural Co-operative Societies shall be brought under the Banking Regulation Act:

We have requested your Honour that the PCARDBs and PACS shall be brought under the B.R. Act, which would help these base-level cooperative credit organisations to get the status of Banking organisations and it would also help them to mobilize the deposits from the public for becoming resource-based banks.


e. Reintroduction of Agriculture Infrastructure Development Fund:

The earlier NDA Government provided necessary funds in the Budget for improving agriculture and increased infrastructure facility in the name of “Jayaprakash Narayan Agricultural Infrastructure Development Fund”, whereas the previous UPA Government had dismantled it, insofar as it had the name of Jayaprakash Narayan in the context of certain political overtones and the exclusive funds for agricultural development has come down.  We would request you to kindly reintroduce that the Agricultural Infrastructure Development Fund, specifically to ensure that the infrastructure development for agricultural growth is coming about in a larger extent. 


f.  Maintenance of SLR requirement – Revised instruction by RBI through its notification dt.5.6.2014.:

It was notified by RBI that the balance kept with the State Co-operative Banks as also the Time Deposits with the Public Sector Banks will not be eligible for being reckoned for SLR purposes.  The balances with the SCBs by the DCCBs will not be eligible for being reckoned for SLR purposes, effective from 1.4.2015.  Apart from this, the RBI has given instructions to increase the CRR from 3% to 4% of the Total NDTL.   However, on our representation seeking the withdrawal of the above notice on the grounds of protecting the co-operative banks, you had issued instructions to RBI and RBI through its revised notification dt.25.7.2014 has informed that for maintenance of SLR in the form of approved securities on NDTL, it shall be in a phased manner.  According to this revised notification, as on 25th July 2014, investment in approved securities as percentage of NDTL shall be for 5%.  For the year 2016, it shall be 10% and for the year ending 31st March 2017, it shall be as per the prescriptions to be done by RBI on that day.


We submit that the co-operative banks will face financial crunch, if the above order is implemented.  We would desire that with respect to maintenance of CRR/SLR by the CCBs will have to be as per the position prior to 2014.  We would request you to consider our request.


g.  Prime Minister’s Jan Dhan Yojana

Co-operative Banks of all categories must be permitted and motivated to open accounts as per the programme of Jan Dhan Yojana (PMJDY) since there are 1,20,000 cooperative credit outlets in our country.  In the PMJDY only the co-operative banks which are coming under the CBS have been permitted to open bank accounts.  We submit that suitable instructions may be given for permitting all the co-operative banks to implement the Jan Dhan Scheme of the Prime Minister and thereby 1,20,000 co-operative credit institutions would go massively for opening the accounts for the millions of India’s poor thus helping financial inclusion.


Our immense thanks  for having revived the 23 de-licensed DCCBs in 4 States:

In the States of Uttar Pradesh, Maharashtra, West Bengal and Jammu & Kashmir, 16 DCCBs in Uttar Pradesh, 3 in Jammu & Kashmir, 3 in West Bengal and 1 in Maharashtra were able to be brought into the status of getting banking licence once again through infusion of recapitalisation assistance of Rs.2,375.42 crore.  The assistance is borne by the Central Government, 4 State Governments and also by NABARD.  This is a remarkable and timely assistance which enables the 23 DCCBs in the above 4 States to get revived and also protecting the interest of the depositors and catering to the credit needs of lakhs of farmers.  While expressing our happiness in this behalf, we would further desire that the amount pronounced shall reach to the benefit of the concerned DCCBs at an early date.


6. Problems of Regional Rural Banks:


Regional Rural Banks (Grameena Banks) have been established with a view to developing the rural economy by providing, for the purpose of development of agriculture, trade, commerce, industry and other productive activities in the rural areas, credit and other facilities, particularly to the small and marginal farmers, agricultural labourers, artisans and small entrepreneurs, and for matters connected therewith and incidental thereto.  In view of above, in terms of the original Act, the capital issued by a Regional Rural Bank under Sub section (1) of Section 6, 50% shall be subscribed by the Central Government, 15% by the concerned State Government and 35% by the Sponsor Bank.


But, by way of intended amendment of the RRBs Act (Amendment) Bill, 2014 (Bill No. 188 of 2014-tabled in Lok Sabha on 18-12-2014 and passed by the House on 22-12-2014)  it has been provided to lower down the share capital of the Union Government and Sponsor Banks from present proportion of 50% and 35% respectively (total 85%), to bring it down to 51%, and the rest 34% to be provided for private share capital, keeping rest 15% optional for the State Government. This means provision has been made for 49% of private capital where State Government will opt out from the ownership.


The relevant portion of the Bill is reproduced below for your kind reference: -


Amendment of Section 6: “4. In the principal Act, in section 6,  (b) in sub-section (2), the following provisos shall be inserted, namely:—   ‘‘Provided that in case the Regional Rural Bank raises its capital from sources other than the Central Government or the State Government or the Sponsor Bank, the shareholding of the Central Government and the Sponsor Bank shall not be less than fifty- one per cent.:


Sir, in case the aforesaid Bill takes the form of an Act, the basic concept of establishment of RRB would be jeopardized as no private investor would take interest as much as taken by the Union Government for economic welfare and social development of rural people of the country.  It may kindly be noted that the role played by all the RRBs, now 56 in number, has been acknowledged and appreciated by not only the huge number of beneficiaries in different parts of the country, but also by the RBI, NABARD and the Government of India.  In view of the above, we appeal to you to see that the Bill in the form of RRBs Act Amendment Bill, 2014 is dropped and scrapped in the larger interest of  common and rural people of the country.


Merge RRBs with Sponsor Banks :  Further, when there is a lot of discussion and debate at various levels on consolidation in the banking sector, it is high time that the Government would merge the various RRBs with their sponsor Banks.  This would instantly give extra, flesh, muscle and additional infrastructure the PSBs in their expansion agenda and enable them to make further inroads in the deep rural areas which is the objective of the PSBs.  We urge upon you to take this suggestion forward by constituting a Working Group to examine this proposal.


Pension benefits to RRB Employees and officers :  In terms of the National Industrial Tribunal Award, thee is to be parity in the service conditions of the RRB employees and sponsor Banks.  But still some of the service conditions of the sponsor banks are being denied to the RRB employees.  Particularly, the benefit of pension is being denied and looking to their genuine demand, the issue needs to be considered favourably.



7. Delay in appointment of Workman Employee Directors :


In terms of the Government’s Scheme, trade union representatives are being appointed as Employee Directors in the PSBs.  The scheme provides for procedure to enable the Government to appoint the Employee Directors in time once in three years when the term is over.  However, in the recent months, in the case of Canara Bank, Union Bank of India and Corporation Bank, the appointment has been unduly delayed and hence these positions remain vacant thus defeating the purpose and objective the scheme.  We seek you intervention to expedite the appointment of Employee Directors in these Banks immediately and also to ensure that in future such delays do not recur.


We are extremely thankful to you for your kind indulgence and precious time to meet our delegation and to submit our above suggestions and problems seeking your attention and redressal.


Yours faithfully,



                                                        C.H. VENKATACHALAM                                                    S. NAGARAJAN

                                                         GENERAL SECRETARY                                              GENERAL SECRETARY

                                                                     AIBEA                                                                       AIBOA




Circular No.5/VI/2015

February 4, 2015






Dear comrades,







As conveyed to UFBU Convenor on 19th Jan, 2015 to have the talks on 3/02/2015, by the Chairman of the Negotiating Committee, the four days strike was put on hold as a consensus decision by UFBU.


True to the expressions made by the Chairman Negotiating Committee, IBA held the 16th round of discussions with all the eleven unions' representatives.


IBA team was led by Shri.Rajeev Rishi,Chairman, Negotiating Committee IBA,Shri.Ashwani Kumar CMD,Dena Bank, Shir.Animesh Chauhan MD & CEO OBC,Shri.Ashwin Mehra,DMD,SBI,Shri.Shyam Srinivasan, CEO FB, Shri.B.Raj Kumar ED I.B.,Shri M.V.Tanksale,CEO IBA, Shri.K.Unnikrishnan Dy.CEO IBA besides other HR officials.


While initiating the discussions by Chairman Negotiating Team, he advised the chairmen of the three sub committees to keep abreast the developments in the meetings held on 14th and19th Jan, 2015 for the benefit of the members of the full committee. On the much vexed issue of %age hike, IBA insisted UFBU to reduce the % of PSCs to enable to clinch the matter, as the IBA has committed to conclude the discussions by 15th Feb,2015.


UFBU constituents were very firm and insisted IBA to respond, as the deferment of action programmes were at the behest of IBA on 19thJan,2015. The exercise of see saw continued for considerable time. Ultimately IBA came out with a meager offer of 0.5%,thus rounding it off to 13% of PSCs and abruptly closed the dialogue.  Hence the crucial talks ended with belied hopes. After thorough assessment of the situations, the nine constituents of UFBU felt and resolved to revive the put on hold exercise of 4/5 days strike action followed by the indefinite strike from16th March 2015.


The following programmes are to be adhered to by the entire work force.

9th February 2015

Centralised Demonstrations at all centres

13th February 2015

Centralised Demonstrations at all centres

20th February 2015

Badge Wearing & Demonstrations

23rd February 2015

Press Meet in all State capitals

24th February 2015

Centralised Demonstrations at all centres

25th to 28th February 2015


2nd to 14th March 2015

Further preparatory programmes

16th March onwards




 Comrades, we are reasonable and also restraint in our approach in the negotiations consistently. Our approach is being viewed/assessed as our weakness. The sternness on the part of the IBA and Government combine have been firmly reflected from the abrupt closure of the dialogue by Chairman Negotiating team of IBA.


The present situation has been forced on us. An united, disciplined and focused  struggle is the  only answer to realise the increase in PSCs along with other two key issues viz; Regulated Working Hours and 5 day working.






With fighting greetings,


Yours Comradely.




Circular No.4/VI/2015

January 20, 2015









Dear Comrades,


v       Four days strike put on hold

v    One step backward and two steps forward – our approach

v    Aim to achieve a satisfactory conclusion of 7th Joint Note


Further to the earlier meeting of Officers Sub committee on 14th January 2014 at Mumbai, to finalise  the collective approach on the Hospitalisation Scheme, a meeting was held on 19th January 2015 at IBA Office Mumbai.


2.         The sub committee on Hospitalisation scheme was headed by Shri Arun Tiwari, Chairman, Union Bank of India, Shri Shailesh Verma, CGM, SBI, Shri B.S.Shekhwat, GM, Central Bank of India, Shri M.V.Tanksale, CEO, IBA, Shri K.Unnikrishnan, Dy.CEO, IBA, besides the officials of HR department of IBA.  The General Secretaries of all the Negotiating unions had participated.


3.         It has been submitted emphatically from the Unions side that :


            [a]        Workforce will continue to deal with the Bank only.

[b]                   [b]  Wherever the existing schemes are better than the Industry level understanding that should not be disturbed.  It was expressed that the existing scheme        available at Bank of India and State Bank of India are better in content.

[c]                    [c]It has been agreed to include Domiciliary treatment and the new inputs submitted by the Union.

[d]                   [d]Ways and means to include the workforce after they superannuate from the employment of the Banking Industry and also family pensioners to have hospitalisation coverage.


4.         4.     While folding up the meeting, it was expressed that efforts will be made to roll out a better scheme in the current wage revision exercise, by appropriately including the suggestions received from the unions.


FOUR OFFICERS’ ORGANISATIONS MEETOn 19th afternoon, the representatives of Four Officers’ Organisations met to take the stock of the situation and also to present the view points of officers’ organisation in the UFBU meet held in the evening.  It was felt that the offer of increase gained so far is certainly falling short of expectation.  Regulated working hours, 5 days week and improvements in the Disciplinary and Appeal Regulations are to be clinched in the present exercise.  Every effort should be made to take forward the call of agitation by a unanimous decision of UFBU.  Com.Alok Khare, Vice Chairman, Com.S.S.Shishodia, President and the undersigned participated in the meet.


5.         UFBU MEET


The UFBU meeting was held at State Bank of India, Overseas Branch, World Trade Centre, Cuffe Parade on 19th January 2015 at 17.30 hrs.  The meeting was chaired by Com.K.K.Nair, Chairman, UFBU.          


The representatives of all the constituents of UFBU attended  this important meeting.  AIBOA was represented by Com.Alok Khare, Vice Chairman, Com.S.S.Shishoida, President and the undersigned in the meeting.


The meeting deliberated in detail the events right from CLC[C] meet at Delhi on 5th January 2015, followed by the twists and turns in the scenes unfolded in the IBA meet on 6th January 2015 and ultimately arriving at the unanimous decision to defer the strike on 07.01.2015, in the background of the assurance of IBA to convene the meeting within 10 days to take forward the discussion for conclusion by mid February 2015.


In view of the Chairman, Negotiating team IBA interacting with the Convenor UFBU expressing and sharing the concern to arrive at the conclusion of the wage negotiation, , communications emanated from IBA to Convenor on two successive days assuring to conclude the wage revision exercise by mid February 2015, made the collective decision of putting on hold the 4 days strike action as an interim step.  It was also decided that in the event of IBA failing to revise upwardly / substantially, the percentage in PSC, in the proposed meeting, subsequent to the Managing Committee of IBA in the first week of February 2015, the constituents have unanimously resolved to implement the continuous strike action of 4 / 5 days in the month of February 2015.


It was also decided to prioritise regulated working hours and 5 days a week along with the clinching of the impending wage revision.



To make it amply clear, that the meetings held on 14th and 19th with “officers and “workmen organisations were issues listed in the Charter of Demand and not the quantum increase of “payslip components”.


Please don’t fall prey to the false messages spread by individuals / certain vested interests to wreck the solidarity of the TU’s in the Industry, which is the forerunner for the “Central Trade Unions” in the country.


We all have to preserve, protect and promote the unity, as the attacks on jobs and job security is going to be with more velocity and sharpness, in the background of “Gyan Sangam” held at NIBM, Pune in the first week of January 2015.


With preparedness to face the challenges.


Yours comradely,





January 15,2015






Dear Comrades,





While concluding the 15th round of discussions on 7th Jan,2015,it was mutually agreed to discuss the issues listed in the charter of demands of respective categories in a small committee and also the Hospitalisation Scheme. Accordingly, three committees have been formed by IBA to address the issues pending for resolution and the information was also released by IBA in this regard.


In this background, the subcommittee to address the issues of the officers met on 14th Jan,2015 at IBA office, Mumbai. IBA team was led by Shri. Ashwini Kumar, Chairman Dena Bank, Shri. V.S.Krishna Kumar, CEO Canara Bank, Shri. Shalilesh Verma, CGM, SBI, Shri. M.V.Tanksale CEO IBA, Shri.K.Unnikrishnan.Dy.CEO IBA ,besides officials of HR department of IBA.


The officers' subcommittee was led by Com.K.K.Nair,Chairman UFBU/General Secretary INBOC, Com. G.V .Manimaran, Vice President AIBOC, Dr.S.U.Deshpande,General Secretary NOBO besides the undersigned representing our organisation.


In three hours long discussions, the following issues have been taken up for a detailed presentation from our side. [1]. Discipline and Appeal Regulations- Amendments,[2]. Regulated Working Hours and [3]. 5 days working.


 On Discipline and Regulations, this round of discussion is second sitting, which centered around the implementation of the earlier decisions of IBA pending with Government ie CVC jurisdiction to Board level appointees and one level below the board level appointees, time limit for the disposal of the Appeals and submission of the Appeal by the officer directly to the Appellate Authority instead of routing through Disciplinary Authority, guidelines on Revocation or continuation of suspension, classification of Misconduct, Effects of Punishments, Removal of the restriction on number of cases to be handled by Defence Assistance, extension of defence by Retired officers etc were presented by the team. A special emphasis was placed that the Accountability Policy in the matter of credit decisions should be more of officer friendly to facilitate the officers to take decisions to develop the business of the Banks. The experts engaged by the Bank ie Legal Advisers, Valuers and CAs are in one way or other instrumental in the retail advances getting into crisis in most of the Banks. Officers are to be protected from this work situation prevailing by and large in all Banks.


On Regulated working hours for officers, a detailed document supported by the communication from government of India, RBI decision to have flexi hours with 8 hours of work and IDBI circular on the captioned subject that 44 Hours of work per week was presented to the IBA team. Our presentation was more focused to evole a scientific manpower policy and also exploring the possibility of technology enabled solutions for completing day end activities at the back office. There were strong observations about the officers not staying in the headquarters and also the branch functioning on consecutive holidays by the IBA team. Our team was more emphatic for defined working hours rather than for any alternative compensatory concept to be brought in as a part of the package.


On 5 day working, it was informed  by the IBA team that Chairman IBA has already taken up with Government and development in this regard will be communicated to us in due course of time. While folding up the discussions, at the end, there was an Appeal made by the CEO IBA that the proposed strike action would alone precipitate the solution to the situation. It was further informed that the proposals would be placed before HR Committee of IBA and subsequently to be placed before Management Committee for arriving at an appropriate understandings.


Comrades, we have been given to understand that there is a communication emanated from IBA addressed to the convenor UFBU, assuring to arrive at the conclusion of the present wage revision discussion on 15th Feb,2015,which was also earlier expressed  by Shri. Rajeev Rishi, Chairman, Negotiating Team IBA on 7th Jan,2015. The other two sub committees are scheduled to meet on 19th Jan 2015 at 10.30am and other one at2.00 pm at Mumbai. UFBU has convened a meeting at Mumbai on 19th Jan 2015 at 5.00pm to take stock of the situation.


AIBOA stands for clinching the issue of Regulated Working Hours,5 days working, Amendments to Discipline and Appeal Regulations and Reasonable and Respectable wage increase commensurate with Risk, Responsibility, Accountability and Transferability of officers community.


Await for further communication,


Yours Comradely,



Circular No.2/VI/2015

January 8, 2015








Dear comrades,


Ø           WAGE REVISION –15th ROUND




Prelude to the meeting at IBA office on 6th January 2015, CLC[C] convened the meeting of UFBU and IBA to break the deadlock after the November 12,  and 4 relay Zonal strikes in the first week of December 2014, on 5th January 2015 at 15.00 hrs at  New Delhi.


AIBOA, was represented by Com.S.S.Shishodia, President and Com.Sanjay Khan, Joint Secretary in the conciliatory meeting.  On behalf of the Unions, it was submitted that the action of the IBA seeking the revisiting of the mandate by member Banks was highly provocative one resulting in announcement of the strike action on 7th January 2015.  IBA has expressed that the action initiated was based on the Managing Committee decision.  However, IBA expressed their desire to have further discussion on 06.01.2015 itself.


Keeping alive the spirit of bilateralism, it was decided to participate in the 15th     round of discussion on 6th January 2015 at 15.00hrs.


A ray hope on 6th January 2015 discussion:


In the discussion held at Mumbai on 6th January 2015 IBA team was captained by Shri Rajeev Rishi, Chairman, Negotiating team [CBI], Shri Ashiwini Kumar, Chairman, [Dena Bank], Shri Arun Tiwari, Chairman [UBI], Shri Ashwin Mehra, DMD [SBI], Shri B.Rajkumar, ED [IB], Shri M.V.Tanksale, CEO [IBA], Shri K.Unnikrishnan, Dy.CEO[IBA] and officials of HR Department, IBA.  11 Unions have participated in this round also.  While sharing the developments in the Banking Industry, on wage issue, they initially proposed 0.5% increase and in turn insisted to bring down our demand substantially.  After protracted discussions amongst the representatives, backwards and forward, for a period of nearly three hours, in response to the IBA offer of revised offer of 12.5% to take forward the talks further, the demand stands revised to 19.5% from our end.


Keeping in view of the “a step forward” development, the intention to shelve the issue of revisiting mandates by IBA after a due process and to continue the discussion on 7th also resulting in, deferment of the  one day strike action on 07.01.2015.


Discussion continued on 07.01.2015:


The adjourned dialogue process commenced at 10.45 hrs.  Keeping the trend of discussion and the developments, Unions insisted for expeditious conclusion of the talks within a time frame with substantial enhancement in the % of PSC.  While   responding Chairman Negotiating team IBA, expressed that the discussion to take a definite shape by mid February by holding periodical discussions and agreed to sort out the issues by constituting small committees.  The issues listed for discussions in the small committees are :


[a]          [a]  Hospitalisation scheme backed up by Insurance tie up , without any ceiling.

[b           [b]  Regulated working hours, Discipline and Appeal Regulations, 5 days working etc.

[c]          [c]   Issues of award staff / officer staff listed in the Charter of Demands.


Discussion on Pension:


The issue of Family pension, 100% DA for retirees prior to 01.11.2002 and also updation of Pension were taken up, besides restoring the “old pension scheme” for the new recruitees joined the services of the Bank after 01.04.2010.


IBA, while sharing their concern to resolve the matter of reitrees, ultimately expressed that the quantum of money counts to decide these issues in totality.


The future programmes of actions depend upon positive, satisfactory and sincere reciprocal approach in the discussion expected to be scheduled to take place shortly.


Hence a small step towards possible resolution.


Yours comradely,





Circular No.1/VI/2015

January 1, 2015







Dear comrades,




Ø        IN 2015 – WE ARE TO HAVE THREE L’s.


A mere stroke of a midnight clock does not intrinsically effect any change.


The global meltdown of 2008 still continues to dominate the International Economic scene and the USA continues to reel under serious economic pressures.  Terrorism abated by USA in destabilising various countries viz., Arab Nation, Syria and Israel.  Due to internal strife, the peace otherwise prevailing in the African Nations are slowly disappearing.  European Union is consistently interfering in the internal matters of Ukraine and the peoples’ desire to realign with the independent Russia is derailed by promoting destabilisation process.  Tamils living in Srilanka continue to suffer from atrocities committed against them and the repeated appeals from the centre to provide relief has been conceded after considerable time lapse. International diplomacy has paid limited and delayed response to relieve the pains of the Indians living in Srilanka.  Pakistan, a country controlled indirectly by Military backed by civilian group sworn by democracy, but often thrown out by continuous upsurge of one or other group to kill the peace loving citizens of  that country.  The recent massacre of 132 children in the school premises by extremist   was condemned worldwide,


Let’s Look at Acts of departures within our Nation:


The people’s belief that “good days are ahead” after the  massive corporate high voltage campaign giving the mandate to BJP with “282” MPS, as the single largest party after 30 years of coalition politics, slowly evaporating due to loss of faith in the good governance, an oft repeated slogan.  GDP rate has come down by ½%.  There is a recession and industrial production is continuously slowing down.  The promise of publishing the names of black money holders remains unfulfilled.  The impression gained in G 20 and subsequent action of accepting the conditionalities stipulated by USA depicts the reality vis-à-vis impression.  The reduction in spending in the social sector is demonstrating the shift in the policy of the Government. NREGP programme being skewed, leading to large scale disapproval from the rural masses. The subsidy available to consumers is linked to unique AADHAR scheme, adding lot of work at various delivery points. The subsidy available on consumption of kerosene was totally withdrawn unmindful of protest from the people living below poverty line. The concept of Self Help group and the benefits granted are given go bye. Practically SHG have been dismantled.


Labour is at the receiving end.  More liberal laws favouring private entities are forcing the Trade Unions to close their ranks and struggle to retain the present position in the country.  Even the TU having the direct relationship with the ruling Government experience the heat of strangulated working conditions.  The massive conversion carried out by religious outfits in Northern part of country and silent support by the ruling group  and the retaliatory moves by other group of minorities likely to throw a new regime of instability forcing the “TUs” to play the role of catalyst to maintain religious amity and tolerance. Ordinance route is best way of escaping to face the democratically elected members questioning the proprietary of the action of promulgation.  Insurance sector allowed to be utilised by FDI prior to Shri Obama’s visit to India on 26.01.2015, dismantling the 65 years old planning commission and also abolition of collegium to select the people to occupy the office of judiciary are some of the glaring acts of departures in the past year.


In our Banking sector, bad loan burgeoning is creating tremendous pressure on the working of PSBs.  Court intervention is being sought to define ‘wilful default” of Bank loan.  The great Indian Bank robbery is taking place, bending the rules to accommodate the defaulters by all concerned and ultimately “PSBs” are blamed for the ills of the system in the financial sector as a whole.  Leaving the major stake holder in the “Gyan Sangamam” on 2nd and 3rd January 2015 at NIBM, Pune, Maharashtra, is clearly reflecting the least importance to the TUs operating in the Banking system, by the present rulers, who are strong proponent of “new reform era” without any iota of doubt.


Bank men positively responded to call of financial inclusion from August 2014 till date adding 10 crores accounts and collecting a sum of Rs 8000 crores as deposits by working relentlessly, unmindful of the problems faced by them. Further the impending merger of ING Vysya with another private sector entity, much against principled stand of the unions and also of past practises of the controller of the Banking system. Initially invested a sum of Rs 600 crores or so and repatriating much more they deserve to square up the position in their mother country is also against the approach of the present ruling dispensation of attracting FDI to develop our nation.


The much talked “wage revision” inspite of increasing “gross profit” year after year, eluding a solution after 26 months establish the rigidity of owners/controllers and IBA, as if the workforce is disentitled to have the compensation relating to risk, responsibility, accountability and transferability. We need to seriously take lessons out of our experience to set the tone of negotiations in proper way.


If we need to have this year 2015 to be year of change, technology alone will not make us better and more engaged representative of the citizens of this Nation. We need to LEARN, LISTEN and also to LEAD the People of the country to brighter days through united struggles to have an exploitation free society and secured working environment to all.



Yours comradely,