Interim stay of a clause in the ninth bipartite settlement for bank employees

Interim stay of clause in bank staff settlement

The Madras High Court has granted interim stay of a clause in the ninth bipartite settlement for bank employees of April this year requiring contributory provident fund optees to become pension optees upon contributing 2.8 times of the revised pay payable for November 2007 onwards to the Pension Fund.

Justice K. Venkataraman passed the interim order on a petition by the Canara Bank Workers Union, Nungambakkam and R. Radhakrishnan of Nungambakkam, a member of the managing committee of the union.

The petitioners submitted that in the previous pension settlement dated October 29, 1993, and Pension Regulations 1995, there was a provision only for transfer of banks' contribution to the PF account along with accrued interest. There was no provision for payment or transfer of any other additional amount.

While in the seventh and eighth bipartite settlements all employees (both pension and PF optees) had contributed to fund the gap in the Pension Fund, in the present settlement dated April 27, the entire load had been placed only on those employees who wanted to opt for pension now, while the existing pension optees were left free. The contemplated recovery exclusively from the PF optees who wished to join the Pension Fund now amounted to discrimination and was violative of the Constitution.

Mr. Justice Venkataraman ordered notice regarding admission returnable in three weeks.

Source: The Hindu

Bank staff to enjoy a 17.5 pc pay hike

Bank staff to enjoy a 17.5 pc pay hike

Bank employees unions managed to secure a hefty pay hike of 17.5 per cent by getting the employer’s forum, Indian Banks’ Association (IBA), to sign an accord.

Buzz up!The ninth bipartite wage revision agreement was signed between six workmen unions, four officers’ associations and IBA on Tuesday, Apr 28.

With this, about 7.5 lakh bank employees and officers of 26 nationalised banks, 12 private sector banks and eight foreign banks will be enjoying 17.5 per cent increase in their wages, effective from Nov 1, 2007.

However, for the lower level employees the hike will be marginal.

The basic pay of officers at the entry level will be between Rs 14,500 and Rs 52,000 per month as against the floor of Rs 10,000, IBA said in a statement.

The basic pay for clerical staff will range between Rs 6,200 and Rs 23,900 while subordinate staff will get between Rs 5,500 and Rs 13,800 per month.

The accord also gives the choice to employees and officers covered by the provident fund scheme to join the pension scheme. This also means that over 50,000 retirees could choice to join the pension scheme.

Besides this, a contributory retirement benefit scheme introduced for employees of the central government with effect from Jan 2004 will be introduced for the employees, including officers and workmen, joining the services of banks on or after Apr 1, 2010, the IBA informed in its statement.