::::: MINISTRY OF FINANCE INITIATIVES 11TH BI-PARTITE PROCESS ::::: ::::: HAPPY PONGAL :::::

Tuesday, November 12, 2013

CIRCULAR/GS/2013/26



CIRCULAR NO.: GS: 2013: 026                                  Date: 18.08.2013
TO ALL OFFICERS                                                   PLEASE CIRCULATE
We furnish hereunder the communication received from AIBOC for the information of all officers.

FRUITFUL TALKS WITH IBA
“Another round of bipartite talks took place between IBA and UFBU on our demands for wage revision. We emphasized the need for IBA to expedite and conclude the settlement in a time bound manner.  We also asked them to react and respond to the issues like date of effect for commencement of the revised wages, consumer price index point up-to which Dearness Allowance is to be merged with basic pay for construction of revised pay scales, quantum of wage revision, etc. 
DATE OF EFFECT:  In response, the IBA agreed that the new wage settlement would be effective from 1st November, 2012, i.e. the date from which the 10th Bipartite Settlement is due. 
MERGER OF DA FOR CONSTRUCTING REVISED PAY SCALES:  IBA explained their constraints to consider merger of Dearness Allowance at higher index points. After prolonged discussions and on the insistence of the UFBU for merger of D.A at a higher level to enable construction of Pay Scales in a reasonable manner looking to the Pay Scales of employees and officers in comparable sectors, IBA agreed and conceded to merge Dearness Allowance upto 4440 Consumer Price Index i.e. 401 slabs and construct new pay scales accordingly.

INCREASE IN WAGE LOAD: On the offer of the wage load increase, IBA wanted to study the cost impact of the merger before responding. However, the UFBU reiterated its demand that the offer shall be exclusive of superannuation cost and improvements in other welfare measures. IBA indicated that the same would be kept in mind by them.

REIUBURSEMENT OF HOSPITALISATION EXPENSES:  To our demand for 100% reimbursement of hospitalization expenses incurred by the employees/officers for self & family members, IBA offered introduction of Mediclaim policy facility under which hospitalization expenses would be reimbursed by the insurance company upto Rs. 2 lacs for sub-staff, Rs. 3 lacs for clerical staff and Rs. 4 lacs for officers per year. Looking to the various implications, we said that a detailed study is required on the contents of the scheme offered before responding.
MANAGEMENT’S ISSUES:  The management’s issues like introduction of cost to company method, Fixed Pay and Variable Pay concept were discussed and UFBU has given its strong views against the same.  However, the matter remained inconclusive.
COMPASSIONATE GROUND APPOINTMENT SCHEME:  Another vital issue, much dearer to all the bank employees, which is relentlessly being pursued by the UFBU is restoration of compassionate appointments in the Banking Industry. IBA informed us in today's meeting that its recommendations for introduction of compassionate appointment scheme on similar lines prevailing in Central Government for its employees has been sent to Ministry of Finance, Govt. of India for its approval.
Friends, we could arrive at conclusion on two vital issues i.e. date of effect and merger of dearness allowance.  We thank the team of the Negotiating Committee of IBA for this forward movement in the discussions.
The date for the next round of discussions will be decided in due course.”
We will keep you informed of the developments.
WITH GREETINGS
Yours Sincerely,
Sd/-
(A.R. SAIFULLAH)                      

GENERAL SECRETARY  

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