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

Monday, May 31, 2010

ADIEU SHRI.D.DORAISAMY


Shri.D.Doraisamy who is retiring today at T.Nagar Branch, Chennai has joined the Bank on 15.09.1970 at Triplicane Branch, Chennai. He is qualified with MA (English), CAIIB and Certificate course in Co-operation and Industrial Finance. He was promoted under All India Service in November-1975 and posted to Credit Management Department at Central Office, Mumbai and worked there for 5 Years. He got his transfer from Mumbai to Madurai Region and worked in Madurai Main, South Gate, Tallakulam and Regional Office, Madurai.

He got married in November 1978 and is blessed with a Daughter and a Grand Daughter.

Shri.D.Doraisamy has been in the Trade Union activities ever since he joined the Bank. He was the Vice President of Central Bank of India Employees Union. Later, he became the Joint Secretary of Central Bank Officers Union. In 1984, he walked out of that Union along with 40 others and joined Central Bank Officers’ Association. He was elected as President in March-1988 and has been committee member of our Federation. He also served as President of Madurai District Unit of AIBOC from 1989 for 5 years. He has led from the forefront of our Association for the last 26 years.

We wish him good luck and God speed.

Saturday, May 29, 2010

CIRCULAR NO:77 DT. 26th MAY, 2010

We are reproducing herewith the circular no:77 dt.26.05.2010 issued by AIBOC for our readers:

CIRCULAR NO:77 26th MAY, 2010

TO ALL AFFILIATES/MEMBERS:

REVISION OF GRATUITY CEILING-DATE OF EFFECT IS 24TH MAY 2010


We have just now received a copy of the Gazette Notification issued by the Labour Ministry, Government of India for the purpose of notifying the date of effect of the revision in the Gratuity Ceiling payable under the Payment of Gratuity (Amendment) Act 2010. The date of effect has been made as 24th May 2010, much to our surprise and astonishment.

2. Our members are aware that the Confederation had led a delegation to the Minister of State for Labour and appealed to him to make the date of effect same as in the case of the Central Government employees i.e., 01.01.2006. When we were given to understand that there are certain vested interests from the industry lobby who were inimical to raising the ceiling to Rs.10/- lacs in the Gratuity Act and were attempting to scuttle the amendment; we submitted an exhaustive Memorandum to the Government to ensure that there is no discrimination as regards the date of effect between the Central Government employees and the Banks. There were positive responses from the Labour Ministry and our subsequent interaction with them at various stages also provided sufficient comfort and confidence to us.

3. We are disappointed with the current notification since it results in frustration to all those who retired between 1.1.2006 to 23rd May 2010. We have been receiving anxious queries as to the impact of this notification. The import of the notification is that it is prospective and all those who retire/resign on or after 24th May 2010 shall be eligible for the benefit of the revised ceiling. For those who had retired earlier, we will pursue the matter after due consultation with other organizations as to the manner in which the issue needs to be taken up with the Government. We are also examining the possibility of legal remedy in the matter in view of a large number of representations we have been receiving in the matter.

4. We note to keep our members advised in the matter in due course.


With greetings,


(G.D.NADAF)
GENERAL SECRETARY

CIRCULAR NO: 75 DT.26th MAY, 2010

We are reproducing herewith the circular no:75 dt.26.05.2010 issued by AIBOC for our readers:

CIRCULAR NO: 75 26th MAY, 2010

TO ALL AFFILIATES/MEMBERS:

IMPLEMENTATION OF 9TH BIPARTITE SETTLEMENT
PROCESS ON – IBA ISSUES GUIDELINES TO BANKS
GOVERNMENT’S CLEARANCE IN RESPECT OF OFFICERS AWAITED

We are happy to inform our members that the process of the implementation of the 9th Bipartite is on. The Indian Banks’ Association has since issued detailed communication to all the banks in respect of the Award Staff who signed 9th Bipartite Settlement under the provisions of the Industrial Disputes Act which does not require further approval of the Government. The Communication in regard to the payment of arrears as well as the recovery towards the contribution to Pension Fund on account of the 2nd Option from those who will be required to exercise the option has since been sent to the Banks with instructions to hold the contribution in a separate account pending receipt of the detailed instructions from the Government including the amendment to the Service Regulations in respect of Officers of the banks.
2. We are in touch with the Banking Department to ascertain the latest position as regards the Justify Fullcommunication of in-principle approval pending amendment to the service regulations in respect of the Officers in the banking industry. We understand that the approval is expected at any time. The first phase in respect of the Award Staff for the payment of arrears etc., as per the 9th bipartite settlement having already been initiated, we are confident that the process in respect of the Officers will be expedited.
3. In the meanwhile, we have been receiving anxious enquiries about implementation of the 9th bipartite settlement as well as the 2nd Option on Pension in respect of Officers. We therefore advise the members to have patience for a few more days and the instructions are awaited at the earliest. We also understand that the bank managements have already initiated necessary steps and the workings have since been kept ready so that no delay takes place once the guidelines are received from the Banking Department for implementation of the 9th bipartite, pending amendment to regulations in respect of officers in the banking industry.
4. Comrades, the technical requirement of obtaining the approval of the Ministry of Finance including the Finance Minister should not take much time since the Government is conscious of the pressures that are built across the country awaiting the implementation of the 9th bipartite. We have also been in touch with IBA as well as the Government authorities for early action in this regard.
5. We note to keep all our affiliates/members informed of further details in due course.
With greetings,

(G.D.NADAF)
GENERAL SECRETARY

Saturday, May 22, 2010

AIBOC CIRCULAR NO:73 DT.22.05.2010

We are reproducing herewith the circular no:73 issued by AIBOC for our readers

CIRCULAR NO:73 DT. 22nd MAY, 2010

TO ALL AFFILIATES/MEMBERS:

ENHANCEMENT OF GRATUITY CEILING-LAW MINISTRY ISSUES GAZETTE
NOTIFICATION
-DATE OF EFFECT UNDECIDED – FURTHER CLARIFICATIONS

The process of implementation of the amendment to the Gratuity Act 1972 is on. The Parliament approved the amendment to the Gratuity Act revising the current ceiling from Rs.3.5 lacs to Rs.10.00 lacs on 17.05.2010. The Parliament did not take any decision as regards the date of effect leaving it to the Government to come out at the time of the gazette notification. We took up the issue immediately with the State Minister of Labour to take care of this aspect and ensure that the amendment is made effective from 1.1.2006. However, the process of implementation of the amendment is on. The Law Ministry has issued a Gazette Notification after receiving the assent of President amending the ceiling on the Payment of Gratuity from Rs.3.5 lacs to Rs.10 lacs leaving the issue of date of effect to the Central Government. This has caused yet another uncertainty as regards the retrospective date of effect.
Justify Full
2. We have received an interim reply to our representation from the Ministry of Labour. We have sent another communication to the Labour Ministry re-iterating our demand for implementation of the amendment with effect from 1.1.2006 taking into account the fact that gratuity has been revised in respect of the Central Government employees from the same date, keeping in view the proposed amendment to the Gratuity Act by the Parliament as approved by the Cabinet Committee. A copy of both the circulars were furnished vide Circular Nos. 69 and 71.


3. In the meanwhile, it is necessary to understand the implication of this amendment in respect of Gratuity payable to our members. There are two types of Gratuity. The first one is the Statutory Gratuity which is a statutory obligation and each and every employer is required to adhere to the provisions of this act. The other one is the Service Gratuity introduced by the institutions to their employees internally, which may be a better one than the Statutory Gratuity payable under the Act.

4. Those who are receiving Service Gratuity the provisions of Gratuity Act are applicable for the purpose of payment of Income Tax. The amendment which has now taken place enhancing Gratuity from Rs.3.5 lacs to Rs.10.lacs will be applicable for the purpose of exemption of Income Tax. That is to say all those employees who are the beneficiaries of the Service Gratuity, the gratuity amount may go beyond the ceiling as prescribed under the Act and the entire amount of Gratuity upto Rs.10 lacs will be eligible for the Income Tax Benefit. Accordingly, the Income Tax exemption which was available only to the extent of Rs.3.5 lacs will now be available upto the extent of Rs.10 lacs to all those who will draw the Gratuity of more than Rs.3.5 lacs from the date the provisions are made effective.

5. However, in respect of those who are covered under the Statutory Gratuity, the ceiling can now go upto Rs.10 lacs from the existing ceiling of Rs.3.5 lacs as per the working of the scheme. It is necessary for all those who are covered under the Statutory Gratuity Scheme that the benefit of Ceiling upto Rs.10 lacs is subject to the actual working as per the scheme. The amendment per se does not make every one eligible to higher ceiling of Rs.10 lacs. Hence, they have to workout the actual difference on the basis of their emoluments and can draw the difference between the earlier ceiling with the current ceiling. We have been receiving a number of enquiries from various members as regards the current amendment. Hence this clarification.


6. We will provide further inputs once the date of effect is advised by the Government and actual cases will be worked out so that they would be able to get the advantage of the amendment in due course.

7. All our affiliates/members are requested to await further developments in this regard.


With greetings,

(G.D.NADAF)
GENERAL SECRETARY


Thursday, May 20, 2010

AIBOC CIRCULAR NO:70 DT.20.05.2010

We reproduce herewith the AIBOC circular no:70 dt.20.05.2010 for our readers:

CIRCULAR NO: 70 dt. 20TH MAY, 2010

TO ALL AFFILIATES/MEMBERS:


GENERAL SECRETARIES CONCLAVE - VAGAMON DECLARATION

The First ever “Conclave” of General Secretaries of All India Bank Officers’ Confederation was held at Vagamon, Idukki Dist, Kerala, on 15th and 16th May 2010, to review the path traversed by the Confederation, ever since it was founded on 6th October, 1985 and its meaningful existence in the service of the membership, society and the country as a whole. The participants appreciated the vision of the Founders of the Confederation, its ideology and resolutions adopted in the foundation conference, its efforts in striving hard to improve the service conditions of its membership in public, private, co-operative and RRB Sectors spread across the country and also the proactive role played, in providing feed back to the government in evaluating policies on economic and financial sector. AIBOC has succeeded in its prime agenda of protecting pro-socialistic, socio-economic policies of Government and in opposing the so called policy of liberalization, privatization and globalisation, in the interest of the common man. Our policy has saved the Indian Financial Sector from the ill effects of the global financial crisis. To-day, we look back and feel proud that our resistance to the new economic policies and support to the control system of RBI and the inherent strength of Public Sector Banks has in fact saved our economy. We feel proud to be Members of the only supervisory cadre organisation in the world, with 2.5 lac membership, at the service of the under privileged and the down trodden. The “Conclave” after due deliberations has reaffirmed its faith in the policy declaration of the Confederation and recalled its 25 years of relentless journey, with ups and downs, which has only enabled the Confederation to move forward and to grow from strength to strength. The Confederation has become a household name as an umbrella organisation protecting the interest of its members, across the country. The Confederation is celebrating its SILVER JUBILEE during the current year. In fitness of things, the participants involved themselves whole heartedly in reviewing the 25 years of selfless service and resolved to proceed with the same zeal and enthusiasm and continue to serve the mother land. After two days of brain storming sessions, the following declarations were adopted at the Vagamon Conclave.

1. To reaffirm our faith on the Policy Resolutions, Ideology and Declarations of the Confederation adopted in the Foundation Conference.

2. To continue as an Independent Trade Union for supervising staff in Banking Industry, without being affiliated to any political party or any Central Trade Union, but to seek their support as and when required.

3. To, not to seek any affiliation with foreign Trade Unions but to maintain co-ordination with global unions in order to oppose the LPG policies of Governments across the world.

4. To be led by the Internal Leadership.

5. To strive hard to strengthen the compensation system for officers so as to take care of the risk, responsibility and accountability that they shoulder. To resist the new concept of “cost to the company” being imposed in the banking industry.

6. To improve upon the working conditions of officers for enhancement of Quality of Life.

7. To maintain good relationship with other Industry Level Unions, UFBU, Central and other Trade Unions.

8. To initiate and organize Professional Workers in financial sector, Public Sector and also to organise workers in unorganised sector.

9. To be proactive in providing feedback on the economic and industrial policies to the Governments, Public and to organise discussions, seminars on the same issues.

10. To demand with IBA/Govt. for a structured Bilateral Negotiating Forum with AIBOC, so that issues other than wage revision can be discussed at periodical intervals.

11. To demand 5 days week and regulated working hours for officers in the Banking Industry.

12. To demand with the Government of India not to tinker with the policy of nomination of Officer Directors on Bank Boards and to seek legal intervention wherever Govt. is violating the policy.

13. To understand better, the concept of Participative Management and to update our skills to improve quality of participation at Board level discussions. To represent the views of the organisation with true spirit as its nominee on the Board.

14. To work for mobilisation and consolidation of our membership in all the 82 RRBs in the country.

15. To demand for parity of wages to RRB Officers and for the improvement of their Superannuation benefits.

16. To work for establishment, mobilisation and consolidation of AIBOC in co-operative sector.

17. To encourage and support the Affiliates to improve service conditions of their members.

18. To urge upon the Management to review disciplinary rules and procedure and to take out officers from the jurisdiction of CVC, CBI, Police etc. so as to encourage them to function without fear or favour.

19. To increase liason with Govt. departments and to pursue implementation of AIBOC policies and programmes.

20. To bridge the gap between perception level of the leadership and the membership, on vital issues, through continuous interaction with grassroot level membership.

21. To gain recognition from the management, not only through the check off system, but also by establishing credible relationship with them.

22. To play a watchdog role effectively, in the framing of policies and implementation of programmes by the Bank Managements.

23. To move towards consolidation of membership under the banner of the Confederation and to achieve “One Union: One Industry Policy” that is “to have AIBOC as the only Supervisory Staff Organisation in the Banking Industry in India”.

24. To initiate appropriate steps to face the challenges before the working class in the country in general and officers’ organisations in particular.

25. To establish AIBOC units wherever we do not have a presence and to achieve 100% membership in other Affiliates. Sectoral Federations/Affiliates should draw a time bound action plan for the same.

26. To make inroads and to achieve total membership in the New Generation Private Sector Banks.

27. To challenge deunionisation efforts from different quarters boldly and to open our membership to all grades/scales of officers’ community in the Banks.

28. To further strengthen representative forums at all levels and to retain our prime position as sole bargaining agent of Bank Officers and to remain as a force to reckon with.

29. To further strengthen the democratic functioning of the organisation and to deal transparently with the management and membership.

30. To resolve internal differences within the organisational forums.

31. To encourage feedback and constructive criticism through free and frank discussions at structured forums to improve the functioning.

32. To re-structure the Confederation so as to provide equal opportunities for all sectors and wings.

33. To discuss and finalise the ways and means to strengthen state/dist./town committees. Affiliates may be asked to assist and guide the functioning of the state units in states where they have a major presence.

34. To provide financial support to the State Units by Central Office, for effective functioning.

35. To provide organisational support to the Affiliates to face attacks from Management/Government.

36. To provide wider participation to Women officers in organisational forums as provided in the bye-laws of AIBOC Women’s Wing, in the Affiliates and Confederation level and to constitute their Central Committee in full.

37. To envisage and suitably modify our approach to gain the confidence of recently recruited youngsters. The efforts of the Affiliate/Confederation in improvements of their service conditions be apprised to them.

38. To further strengthen the Affiliates which determine the strength of the Confederation through interaction, guidance, organisational activities, providing organisational and logistical support whenever required.

39. To organise Training Programmes for new recruits, Cadre Development and leadership developments programmes for second line leadership to facilitate smooth succession plan.

40. To interact with the Affiliates/Members to have the benefit of direct feed back on working conditions of officers at branches/base levels and to make continuous efforts to enhance the trust level between Confederation/Affiliates/Membership.

41. To update Banking Knowledge and Skills on a continuous basis at all levels of leadership/membership.

42. To organise Cadre Development Programmes, Inter active sessions amongst the leadership, Study circles to update the Banking knowledge, National, International Economic Scenario at Affiliate and Confederation levels.

43. To organise Conclaves of Presidents and General Secretaries at periodical intervals based on the experience of Vagamon Conclave to discuss and deliberate on the crucial issues confronting the organisation and the Industry.

44. To encourage the Affiliates to organise the Conclave of Presidents and General Secretaries of their base units on similar lines.



2. Comrades, the participants have immense satisfaction of accomplishing the task entrusted to them to lay a road map for the future of the Confederation for the coming decade. The success of the ‘Conclave’ depends on the vigorous implementation of the declaration from all affiliates, Sectoral Federations, with due co-operation by all members.

3. We are confident that, the efforts will bear fruits in the days to come.

AWAKE, ARISE AND STOP NOT TILL THE GOAL IS REACHED

With greetings,

Sd..
(G.D.NADAF)
GENERAL SECRETARY

AIBOC CIRCULAR NO:69 DT.20.05.2010

We reproduce herewith the circular no.69 issued by AIBOC for our readers:-

CIRCULAR NO: 69 dt. 20TH MAY, 2010

TO ALL AFFILIATES/ MEMBERS:

AMENDMENTS TO PAYMENT OF GRATUITY ACT 1972

We took up the issue of revision in ceiling on Payment and Gratuity Act 1972, with Shri. Harish Rawat, Hon’ble Minister of State for Labour and Employment vide our letter No. 1410/140/10 dated 04.05.2010, requesting him to effect the revised ceiling of Rs. 10/- lacs approved by the Lok Sabha and Rajya Sabha, from 1st January, 2006.

2. We are glad that, Hon’ble Minister has responded positively to our request. A D.O letter No. 2/10/MOS/L&E/VIP/2010 dated 13.05.2010 received from Shri. Harish Rawat, Hon’ble Minister is enclosed for your information.

3. .We are glad that, in the Gazette of India, dated 18.05.2010, the following notification has been issued by the Ministry of Law and Justice.

Quote
“ MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 18th May, 2010/Vaisakha 28, 1932 (Saka)

The following Act of Parliament received the assent of the President on the 17th May, 2010 and is hereby published for general information:-

THE PAYMENT OF GRATUITY (AMENDMENT) ACT, 2010
(No. 15 OF 2010)

[17th May, 2010]
An Act further to amend the Payment of Gratuity Act, 1972.

Be it enacted by Parliament in the Sixty – first Year of the Republic of India as follows:-

1. (1) This Act may be called the Payment of Gratuity (Amendment) Act, 2010.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
Short title and commencement
2. In section 4 of the Payment of Gratuity Act, 1972, in sub-section (3), for the words “three lakhs and fifty thousand rupees”, the words “ten lakh rupees” shall be substituted. Amendment of section 4 of Act 39 of 1972.

Unquote
V.K.BHASIN,
Secy. To the Govt. of India


4. We are following up the matter with the concerned Ministry and advise the outcome later.
With warm greetings,
Sd..
(G.D.NADAF)
GENERAL SECRETARY

AIBOC CIRCULAR NO:68 DT.19.05.2010

THE CIRCULAR NO.68 ISSUED BY AIBOC IS REPRODUCED HEREWITH FOR OUR READERS.

CIRCULAR NO:68 DT. 19TH MAY, 2010

TO ALL AFFILIATES/MEMBERS:


FUTURE OF BANK OF RAJASTHAN
CONFEDERATION TO OPPOSE MERGER MOVES

We have to-day sent a communication to the Hon’ble Minister of Finance, Government of India, New Delhi and also to Hon’ble Governor of RBI against the so called move of the merger of the Bank of Rajasthan with ICICI Bank. A Copy of our communication is annexed, which is self-explicit.


2. All our affiliates/members are requested to await for further developments in the matter.

With greetings,

Sd..
(G.D.NADAF)
GENERAL SECRETARY

No.1410/157/10 19.05.2010
Shri. Pranab Kumar Mukherjee, shri. D.Subba Rao,
Hon’ble Finance Minister, Hon’ble Governor of Reserve Bank of India
Government of India, Central Office,
South Block, Shahid Baghat Singh Road,
Parliament House, MUMBAI - 400 001.
NEW DELHI.
Dear Sir,
FUTURE OF BANK OF RAJASTHAN
PROMOTERS DEAL WITH ICICI BANK
We are disturbed by the reports appearing in both press as well as electronic media, as regards the so called decision of the Boards of the Bank of Rajasthan and also the ICICI Bank on the take over of the Bank of Rajasthan by the ICICI Bank, through buying the entire share holdings of Mr.Tayal and his group in a private treaty. This is yet another blow to the Old Generation Private Sector Bank, if this transactions are allowed to take place, since the Bank of Rajasthan which has made tremendous contributions for the economic growth of the State of Rajasthan and the surrounding northern states through a network of 434 branches in ensuring that the credit facilities reach the interior parts of most backward places of these States. The Bank of Rajasthan is one of the oldest Private Sector Banks functioning as per the policies and guidelines laid down by the Reserve Bank of India and the Central Government from time to time in particular the lending to the priority sector so that the State of Rajasthan as well as other backward states are able to ensure their economic growth on par with other states. The Bank has also established a number of branches in the interior parts of Rajasthan while several other banks had their own reservation in serving these parts of the country. The Employees and Officers of these banks have been rendering a yeomen service to the common people of the country.

2. We have seen in the recent past that the aggressive take over which had taken place in respect of Bank of Madura by ICICI only led to frustration amongst the employees and Officers in the Bank and the ICICI Bank utilised the Bank of Madura to add to the number of branches but the yeomen service that was being rendered by the bank earlier was given a go by. Same is the case of Lord Krishna Bank, which was taken over by the Centurian Bank and subsequently by the HDFC Bank, thereby pushing these banks into the fold of the Banks, now controlled by multinationals.

3. The Confederation and its affiliates have been opposing any attempt by the new generation private Banks to take over the old Generation Private Banks with their traditional bond with the local people which are akin to the Nationalized Banks in their style of functioning as well as in discharging of their duties to the cause of the common man in this country. The events which led to the so called in principle decision of the Boards of both the banks has an organised attempt by the Promoter to hand over the Bank of Rajasthan on a platter to the ICICI bank knowing very well that there is a total opposition by the employees and officers working in this bank as well as the local public. We were hoping that with the intervention of the RBI in the matter of ensuring that the Bank of Rajasthan is functioning on a proper line by strengthening the Bank as an independent private bank restoring its past glory. But the developments are contrary to our expectations.

4. We therefore request you to kindly intervene and provide alternative proposal for the Bank of Rajasthan to overcome the current aggressive take over by the ICICI Bank in order to ensure that the faith and trust of the General public, employees and officers in the regulator is not shattered. We are also against this so called merger. There is scope for the alternatives for helping the Bank of Rajasthan to come out of the present difficulties and the promoters should not be allowed to push the bank to the lap of the ICICI Bank and to make huge profits for himself and his associates in the process leaving the employees and officers who were the people who build this bank over the last several years in the lurch. We demand nationalisation of the Bank or merger with a Public Sector Bank instead of merging the Bank with a foreign bank.

5. Please look into the matter and take necessary steps without further delay.

6. Please treat the matter as urgent.
Thanking you,
Yours faithfully,
Sd/-
(G.D.NADAF)
GENERAL SECRETARY