As
promised on 12th August 2013, after announcement of major points, I am putting
my views and analysis. UFBU and IBA had negotiation talks on 12th August
2013. According to UFBU discussions
were fruitful and satisfactory decisions on following important issues were arrived
at :-
(a) IBA has agreed that the Xth BPS will be
applicable wef 1st November, 2012 i.e. the due date as per previous BPS;
(b) That 4400 will be merged for the purpose of
DA
It
is for the first time that since Xth BPS
has become due, some serious discussions
seems to have taken place and some firm commitments arrived at. However,
it appears UFBU has once again failed to extract honourable commitment
from IBA and bankers have already lost the initial battle. Now chances of major hike have receded.
By
agreeing that Xth BPS will be made applicable from the due date, IBA has not
done any favour but merely agreed to do what was due to bankers. On the second issue, that is merger of CPI
points, the agreement to merge 4440 only shows that UFBU has failed in its duty
to protect the interests of its cadre.
Everybody will remember that in Sixth Pay Commission, the merger was
done upto the due date of revision and under the new scales the new DA was
0%. In the circular UFBU has claimed:
UFBU
has conveniently ignored to share with its cadre the constraints given by
IBA. I feel, it is wrong on the part of
UFBU as to not share such constraints with cadre as it means they do not
believe in transparency. If such constraints are genuine, then let
these be made public. Without going
into further details, at present, I
leave it to our readers whether they need UFBU to be accountable to the cadre
or to the management / IBA.
Thus,
UFBU has lost a great opportunity to ensure that merger of CPI points should
have been upto October 2012 instead of
October 2011. It was during this period
that there was steep increase in inflation and IBA has easily made fool of UFBU
by ensuring that bankers do not get the benefit of merger for the period which
has highest increase due to inflation.
By keeping Basic Pay at a lower level, IBA will be able to suppress the
wage bill in the long run, and the losers will be bankers.
With
my limited knowledge, I have tried to make certain calculations and the results
I am placing for the benefit of our readers (In case of discrepancies in my
calculations, please feel free to point errors through the comments, so that
we and all readers become aware of such
corrections.)
After
merger of the 4440 points the left over points and the slabs to the accounted
for new Basic Pays for DA will be as follows:-
As on 1st November 2012 : 437 (Slabs 109)
As on 1st February, 2013 : 536
(Slabs 134)
As on 1st May, 2013 : 642 (Slabs 160)
As on 1st
August, 2013 : 772 (Slabs 192)
(Slabs are arrived at by dividing the left over points by 4)
(When we convert 4400 points to existing DA %age, it comes to approximately 60.15%)
Let
me try to make the things simple for my readers, as my experience with Union
leaders is that they never show transparency in calculations and 99% of the
bankers fail to understand the nitty-gritty
of such calculations.
It
is not that bankers are not intelligent, but it is purely as these calculations
are kept secret. In my career of over 30
years, I have not come across even once the methodology adopted in calculations
at the time of BPS. Now with time
available at my disposal, I have tried to figure out the details and are
sharing these so that our readers are not befooled by Union leaders.
I
would request our readers to send me immediately whatever information or link
they receive from any quarter relating to developments on wage revision (by an
email )so that we can analysis the same and then place it before all the
bankers in a transparent manner. I hope
readers will do me this service. This
will not give chance to UFBU leader to hide behind the curtain of secrecy.
In
the Chart below I am giving some calculations (based on assuming Basic Pay of
Rs10,000 as per existing pay scales) so
as to show that after merger of DA at 4440 points i.e. 60.15%, there will be need to have a minimum factor
of 0.10 for converting the remaining slabs, so as to maintain the status quo in
the salary of bankers.(This Chart is not New Scales but to show as to how factor for conversion of slabs is likely to be arrived at) - Links for Likely New Scales are given below
Charts
for Likely Salary of Bank officers Based
on Merger of 60.15% DA and giving a 20% increase in Basic Pay and ensuring that
the revised conversion factor is 0.12 for converting balance slab into DA
percentage
Charts for Likely Salary of Workmen Based on Merger of 60.15% DA and giving a 20% increase in Basic Pay and ensuring that the revised conversion factor is 0.12 for converting balance slab into DA percentage
We
are aware that under the existing BPS (i.e. IXth BPS), the factor used to convert slabs into DA %age
is 0.15. This factor is reduced in
every BPS as the existing DA is merged in the new Basic Pay. Making backward calculations, we have arrived to the conclusion that to
maintain the same level of Basic Pay + DA, this factor has to be at least
0.10.
To make the calculations easy and appreciate
the way calculations are done, for our readers, we have provided the above
chart. The values in column 4 and 8 are
approximately same. Thus, above will
mean we will be maintaining status quo after merger at 4400 if new factor for
conversion to DA is 0.10. Thus, it will
be the minimum threshold. Thus, we can
safely say that this factor will be at least 0.10 and any thing above will
bring some relief / increase in pay for the bankers.
UFBU
needs to insist that this factor should be at least 0.12 so that the existing
losses on account of steep increase in inflation in last few years are properly
compensated as CPI used by IBA does not
actually reflect the true inflation.
This will also ensure some reasonable compensation in salary of the bankers. I personally feel that in case UFBU is able
to extract anything above 0.12 factor, it will be an achievement.
Although,
different unions in Charter of demands have demanded very high percentage
increase in salaries. In case UFBU is
able to extract increase of 20% or more
on the revised Basic Pay arrived based on above calculations (alongwith
a minimum factor of 0.12 for conversion of slabs into DA %age, it will be an
reasonable settlement, although it will
be certainly short of aspirations of the bankers. To convert this reasonable settlement into
honourable settlement, there has to be
appropriate hike in %age of HRA and other allowances.
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