Monday, July 26, 2010

I want to know Facts of Pension Fund of Banks

"Accepting the settlement in its present form would result in miscarriage of justice."
Justice in fact already miscarried on Historic Day for bankers i.e. 27th April 2010, now actually passing through washing operation in hope of getting justice.

Banks already deducted at source not only TDS on entire arrear (including the amount which is deposited in pension fund), it already recovered 2.8 times from PF optees but it willfully ignored offering pension letter in fear of Writ filed at Madras High Court.

It appears to IBA as if Madras High court had stayed pension offer and allowed recovery from PF optees. Please verify from contents of court order. Please re look into wording of order given by learned Judge whether stay was on pension or on recovery.

Pension is social security, Mr. Ashok Goel rightly admits it and he has true apprehension in his mind that Banks may not offer pension option if recovery is stopped by learned court. He along with Sri Pradip Kumar learned advocate of Supreme Court is truly and rightly worried of pain of PF optees retiring in coming days if they are not given second option of pension.

Sir I like to add one line here that heaven is not going to fall even if pension offer is not given, PF optees will survive with his head high and with dignity. God will give them adequate food at least better than our Union leaders who signed the said “Historic Agreement” because their own conscience will curse them.

Banks are giving pension out of fund created by PF contribution (Bank’s portion) refunded to them. Has any bank spent any amount from expenditure account in the past as central government use to do for their employees every year?

I raise some questions and hope anyone who knows about the same will reveal the clear picture.

What is total accumulated fund in pension account?

What amount is deposited every month by bank in pension fund on behalf of pension optees?

Or whether it may be confirmed that banks are actually crediting bank’s contributory share in pension fund for each pension opees each month (as in the case of PF opees )? I doubt banks are doing so.

What amount is actually paid by a bank every year to it’s retire employees? And what amount is refunded to retirees every month on an average?

Can anyone mathematically assess the clear picture of anyone bank to ascertain and forcefully confirm that in future banks will face crisis if fresh recovery is not made from PF optees?

Had our learned leaders not agreed for sharing in 7th and 8th Bipartite, bank employees could get higher salary and higher PF contribution. In fact , it appears to me that IBA reduced wage hike during 7th and 8th Bipartite Settlement but did not make actual credit in pension fund what they saved on account of lesser wage hike.

Can anyone confirm that banks are maintaining two separate funds, one for PF optees and another for pension optees? If not, how IBA or UFBU came to conclusion that banks will face crisis of fund if they agreed for second option of pension?

And if there are two separate funds in each bank, can anyone say what is the real balance accumulated in pension fund , what they are likely to get from PF fund if they offer pension offer and what monthly accretion will happen in pension fund keeping in view bank’s contribution of 10% and monthly interest?

Whether pension fund is prudently and wisely managed to earn profit or used as a tool to inflate bank’s operational profit or deposit?

Whether it is not true that banks are parking PF/Pension fund in fixed deposit and earning less interest compared to what they use to pay to employees?

Can anyone confirm that there are no avoidable expenditure from such funds?

Whether Banks are using profitably the amount which is accumulated out of employee’s share in PF of 10% and withheld with bank with PF Trustees? This fund is in hundreds of crores of rupees with each bank and banks need to invest the fund to earn maximum profit and give dividend to employees and not simply park them idly.

Above mentioned questions will help in knowing the probable burden to each bank if all PF optees switch over to pension. These facts are necessary because an employee suffers and lives in crisis for 30 to 40 years when he serves the bank only to make his residual life of hardly 10 years painless and pain free.

As an individual everyone who is afraid of not getting pension offer should ponder over following questions

1. How much amount he is going to sacrifice (Bank’s contribution in PF) on his date of retirement keeping in view fresh addition and interest accrual. (In other words when will he retire and by that time what will be the expected growth and what will be the final accumulated amount when he or she retires.)
2. How many years he or she will then survive, a rough estimate
3. Whether the amount he will get (if he does not get pension offer) will not be adequate to give him pension at Bank's rate of pension till he survives or his family survives to get pension offer. Please be practical
4. Finally say whether banks will gain or you will gain.
5. How much banks are expected to gain if we take into consideration the average age of bank employees, especially bank officers.

Now say whether mountain is going to fall if pension offer is denied to PF optees.
Yes mountain may fall on family if one dies during the serving period or you say in case of premature death. Out of three lac PF optees in bank for whom entire dispute has come on the floor in banking industry, there will be hardly a few thousand cases of premature death and in whose cases banks will have to pay pension for a longer period though with lesser amount of pension. For this one or two thousand of death cases banks is worried so much they are bent upon giving worries to entire banking community. I think Insurance companies in such cases may give better return if the same amount (which is deposited by banks in PF fund every month) is given to them.

Now everyone will perhaps agree to protest disputed recovery from PF optees and prefer justice instead of blindly purchasing pension offer in the name of social justice.

IBA and UFBU are jointly trying to impose injustice in the name of social justice.

Friday, July 16, 2010

Bank Employees Unity ......Zindabad , Zindabad

How many Banks have obeyed the stay order of Madras High Court and not recovered 2.8 times of November 2007 salary from PF optees?

How many banks have not yet started paying arrears as per 9th BPS.?

How many banks have issued pension offer till date and if not why have they recovered from PF optees? Already three months are likely to complete after the date of settlement. Why bank is so slow on the issue of pension offer and so fast on the matter of recovery and similarly why union leaders are so anxious on recovery of levy of Rs.3000/ from their members and not worried for delay in offer of pension? Union leaders are getting farewell gift of five lacs or ten lacs on their retirement from Union Fund. Is this the way to use hard earned contribution made to Unions and Associations by poorly paid bank employees?

Days are not far when union leaders will distribute accumulated union levy amounting to hundreds of crores of rupees among themselves and ask for separate fee if they fight for any aggrieved employee. Are union leaders not more dangerous than our management bosses? I say this because union leaders have threatened to expel officer from their association if they do not pay union levy of Rs.3000/ on account of so called successful historic agreement. Management never dared to issue dismissal threatening to officer employee if they fail to obey any instruction of boss.

Why are employees keeping mum on illegitimate recovery and bent upon getting arrear at the earliest even if it is discriminatory? Why are they afraid of even lodging their protest before accepting arrear payment?

Bank management has signed a historic victory agreement when they have vertically divided the employees in two segments and created an unbridgeable split in banking unity and created dilution in their intensity to fight against the reign of injustice perpetuated by management.

And Bank union leaders on the contrary has committed a historic blunder by signing a discriminatory and divisive agreement on 27.04.2010 for some or the other vested interest and clearly betrayed the cause of unity for which they used to struggle under the banner of communist parties.

At least pension optees are now in support of the agreement. It hardly matters to most of them how loudly PF optees cries and weeps though in the past they all always used to be on the same platform and UFBU was also formed for the same purpose. Banking unity was an example in the community of labour class or working class.

Banks are not in the grip of flatterers. Those who are yes-men are getting timely promotion and getting best posting and in this way a team of flatterers are generated by bank management who blindly support of all action of the management right or wrong. Even union leaders do not fight against such lollipop like promotions and transfers because they say that ultimately their members are getting promotions and cream posting or choice posting though the same may be at the cost of others genuine right. At least veteran union leaders are enjoying posting in Metros and capital towns, they need not perform bank’s job, they may do their side business, they may take share from dirty dealings in credit decision or contract offers corruption and they may get sweet request from corrupt officers for reduction of punishment and so on. Lastly they may get huge gifts from top branch managers, big bribe earners, big customers and last but not the least huge money from union fund on their retirement and on attending an inquiry from Union Fund. Similarly union leaders now plead that the said agreement is good in the light of social security though they know and understand from the core of their heart that recovery from PF optees is not justified from any angle of consideration.

This is called divide and rule policy. Intelligent, talented, experienced, valued and visionary leaders of bank management who occupy the important seats of core committee of IBM as also that of United Forum of Bank Unions are very well aware and they all realize from the core of their heart that injustice has occurred with PF optees, retirees and those who have resigned. They all know very well that courts cannot deliver justice in decades and decades and this is why they are least bothered of courts also. They have gained sufficient experience by giving undue promotions to even charge sheeted officers and by rejecting even good officers. In every circular enlisting name of officers getting promotion they used to mention “subject to court decisions on various writs going on in various courts”

In the same way IBA is bent upon making recovery from PF optees subject to court decisions. But at the same time God knows whether they will issue pension offer or not. Reason for not issuing pension offer, bank will say they are waiting decision from courts. It is not surprising at least for me that even so called union leaders are also keeping mum on this matter for which they feel proud and say that the agreement is historic.

Bank Unity Zindabad?

Saturday, July 10, 2010

IBA is guilty of Contempt of Court

Government of India does not listen without Strike, Bharat Bund or violent agitation programmes disturbing public. Government does not understand the language of peaceful protest or peaceful movement, or letters to Prime Minister or Finance Minister or even President of India. Ministers are awakened from their deep slumber only by agitations, arsoning, loot, strike, violant agitation, burning of shops ad buses, stopping of train services etc.....There are hardly a few hundred internet viewers out of ten lac bank employees who are aware of what is happening in various courts. Even IBA is least bothered of interim stay granted by Madras High Court.

Bank employees who struggled for 30 months to get second option for pension and for their wage revision are subjected to huge loss by ill-motivated trade union leaders and visionless officials of IBA team who participated in 30 month long process of negotiation.

This agreement has almost cheated PF optees on the plea of second option of Pension and IBA is almost ready to go against the MOU signed months ago. They are obviously bent upon putting into action the discriminatory, unjustified and divisive clause of Bipartite Settlement against the interest of three lacs employees called PF optees . Their main motto is to divide the United Forum of Union of Bank employees and dilute the intensity of bank unions and militancy of bank employees.

Some of the Bank unions filed a writ in Madras High court and also in various other high courts. Madras High court granted stay on execution of recovery clause no. 32 of the said Bipartite Settlement which was signed at Industry level on 27th April 2010 by Indian Bank’s Association and United Forum of Bank Unions.

But Banks are bent upon making a recovery of 2.8 times of November 2007 salary from those employees who will get second offer of pension (not yet served by any bank) after 15 year long struggle. In defiance of stay granted by Madras High Court.

Banks have not released arrear and not submitted second option of pension to all employees as per spirit of the said agreement. On the contrary banks without any fear of court are going against the spirit of stay order of Madras High Court and making forceful recovery from three lacs employees.

Are they not committing contempt of court?

Media is silent and least bothered of fate of three lac employees.

Opposition parties, ruling party all are silent.

Why?

Do they want violent movement?

Saturday, July 3, 2010

M V Nair

"Asli Chehra" - TRUE FACE OF BANK UNIONS
Immediately after the settlement, most of the unions patted their back for the so called "historic settlement". Slowly as they started facing volley of questions from the members, they came out with various theories to justify their action, which included the so called legal opinion and IBA's stiff attitude which forced them to agree to recovery from only PF optees to the tune of 2.8 times of the November 2007 pay. An impression was being created by them as if they were not in favour the same till 26th April, 2010, but somehow they were cornered so much that they had to agree to the terms set by IBA. If that would have been the case, then they would not now oppose the petition pending in Madras High Court. That shows the double standards.
But soon the bankers will be able to see the "Asli Chehra" (i.e. True Face) of these union leaders. These union leaders will now not be able to beat around the bush and befool the members by shedding crocodile tears. They have to take a stand in the Madras High Court, as to whether they are in favour of payment by all employees / officers @ 1.6 times or they favour 2.8 times only from PF optees. Some of these unions have already been exposed. Let us see what does the market reports say as at the end of June, 2010.
It is reported that during the course of hearing of the case at Madras High Court, while opposing the interim stay granted by Madras High Court, advocates of IBA, and AIBEA and NCBE, requested for vacation of the stay. AIBEA and NCBE were represented by one of the top most firm namely M/s Aiyar & Dolia and wanted vacation of the interim stay on recovery of 2.8 times only from PF optees to be vacated. So the stands of these two unions are very clear now. They will be using the members’ funds (including PF optees) for payment to the law firms and fighting case against them. However, the Hon’ble Judge advised them to file their counter affidavits and Ordered continuation of the Stay Order. Next hearing has been fixed for 6th July 2010.
Vide circular No. 98 dated 29th June, 2010. AIBOC has declared "We are in constant touch with the IBA and the Convenor of UFBU, to initiate appropriate steps to vacate the stay, at the earliest, to enable IBA to issue necessary instructions to member Banks on the Pension offer". Thus, AIBOC is also likely to oppose the move and appears to be in favour of payment by only PF optees".
(Remember, the stay is not against the Pension offer or issuing circular by IBA, it is only against immediate recovery of 2.8 times of pay of November, 2007 from PF optees. )
The stand of other unions will also be clear within a week, as court in its orders says ""Notice to respondents returnable by 06.07.2010. There shall be an interim order of stay". (all major unions are respondents in this case). The reports indicate that NOBW may support the petition filed by Canara Bank Workers Unions. Similarly, BEFI may not oppose the petition of Canara Bank Workers union. The protest by INBEF has already been incorporated in the affidavit filed in the Court.
If the above reports are true, then 29th June 2010 would be regarded as a sad day in the history of trade union movement of Banking Industry. Souls of great leaders like Parawana Ji would be feeling really sad and dejected.
Till now they have been propagating that they have been forced by the circumstances and situation to accept contributory pension scheme in banking industry. They are giving so many logics and have been pleading as to why they could not make IBA agree to the Pension Scheme in its original form of 1993. We are unable to find any logical reason from Unions wherein it joined hands with the union of the Management i.e. IBA to defeat the efforts of bank employees.
Duniya ke Mazdooron ek ho - Duniya ke mehanatkashon ek ho ka naara laagene waale aaj majdooron ke khilaf hi Court main jaa pahunche.
TESTING TIME IS NOT FAR WAY NOW. NOW THESE UNION LEADERS WILL NOT BE ABLE TO SAY THAT IBA DID NOT LET THEM SUFFICIENT TIME AND CORNERED THEM SO SUCH THAT THEY SIGNED THE SETTLEMENT ON 27TH APRIL, 2010. THEY HAVE SUFFICIENT TIME OF OVER A WEEK TO DECIDE WHETHER THEY WANT TO PROTECT THE INTERESTS OF PF OPTEES OR WANT TO DO WHAT IBA IS SAYING.
It has also been reported that some Banks have issued strict instructions for payment of arrears to all the employees / officers by 30th June, 2010 or so, after keeping 2.8 times of the pay of November, 2007 in suspense account. This clearly gives an indication that banks are in a hurry to pay arrears so that they can deduct 2.8 times from the arrears of PF optees before orders of Madras High Court are delivered to them through IBA. In court they will take the plea that notice of stay was not received by them and arrears have already been paid. As Canara Bank has also rushed to pay the arrears today after keeping the 2.8 recovery in suspense, Canara Bank Workers Union is likely to give a strong protest letter on 1st July, 2010 at their Head Office. Canara Bank Workers Union has informed that they are proceeding to Bangalore to personally handover the letter along with a copy of the court order and get the acknowledgement.
Now all the bankers have to take a final call as to whether these union leaders are with the workers or are working against them. We know it is a difficult task as they have to eat their own words. They have issued number of circulars justifying as to why and how they were cornered to agree this changed stand on the night of 26th and 27th April, 2010. However, this is the time when they can correct the mistakes as PF optees have shared the burden of pension even in the last two Bipartite settlements (7th and 8th). This information is now shared by almost everybody (which was not known earlier to 99% of the PF optees).
The unions opposing the petition will be spending lacs of rupees in the legal battle. All this money can be saved if they simple say that we do not oppose the petition and are in favour of the same.
LET PF OPTEES DECLARE THAT THEY WILL QUITE THEIR UNION (WHICHEVER IT MAY BE) IF THEIR UNION OPPOSES THE PETITION FILED BY CANARA BANK WORKERS UNION AT MADRAS HIGH COURT. LET COURT DECIDE THE CASE ON MERITS.
(Inputs also by kamlesh.chaturvedi@yahoo.com; canara bank workers unions etc )







UPDATE ON THE ORDERS ISSUED BY VARIOUS HIGH COURTS AGAINST RECOVERY OF 2.8 TIMES OF NOVEMBER 2007 PAY
In order to ventilate the grievances of the employees, Writ Petitions have been filed in various Hon’ble High Courts.
(A)The First Writ Petition was filed before the Hon’ble Andhra High Court bearing number Writ Petition No. 8237 of 2010 where in Hon’ble Court has passed following orders:
“ORDER: Interim order dated 13-04-2010, to continue, subject to final orders to be passed in this WPMP. Any settlement also, shall be subject to final orders in this WPMP.
Post after Summer Vacation, 2010.”
(B) Writ Petition No. (C) No.3729/2010 has been filed before Hon’ble Delhi High Court, where Hon’ble Court has passed following Orders on 28.05.2010:
“Issue notice to the respondents to show cause as to why rule nisi
be not issued, returnable on 30.07.2010. Necessary steps be taken within seven
days.”
(C) Subsequently, Division Bench of Hon’ble Allahabad High Court while disposing Special Appeal No. 947 of 2010 passed following orders Orders:
“Issue notice.
Respondents are allowed three weeks time to file counter
Affidavit.
List thereafter”

(D) And now recently a Writ Petition bearing no. WP 12269/2010 has been filed before Hon’ble High Court of Judicature at Madras, in the matter of Clause No. 32 of the industry level Wage Revision Settlement dated 27.04.2010 and also clause (1) of the Pension Settlement of even date, seeking a direction from the Hon’ble Court to quash the above clauses only in so far as the said clauses require the provident fund optees now in service to contribute 2.8 times of the Nov 2007 revised pay, if they want to opt for the pension scheme.
Hon’ble Justice K Venkataraman, who heard the matter has ordered an interim stay and the next date of hearing, has been fixed on 06 July 2010. A copy of this order is enclosed.
From what is stated here in above, it is evidently clear that Clause 32 of Settlement dated 27.04.2010 and Clause (1) of Pension Settlement dated 27.04.2010 has become subject matter of judicial scrutiny by the Hon’ble Courts and Hon’ble Madras High Court has passed orders to stay the operation of these clauses.