Pension Reduction Issue in Tenth Bipartite Settlement

I reproduce hereunder letter on pension issue post by - Mr.S. Ramchandran--Retd.G.M.--Bank of Baroda.


S. Ramachandran Kunal Icon, Building -A8
Former General Manager, Bank of Baroda, Flat No. 104, Pimple Saudagar,
Former Chairman & CEO, The Sangli Bank Ltd. Aundh Camp, Pune – 411027,
(Now merged with ICICI Bank Ltd) Tel: 020 27201012.
Former Administrator, Madhavapura Mercantile E-mail id: ramans1938@gmail.com
Co-Op Bank Ltd ( Ahmedabad )
Former Director General, Maratha Chamber of
Commerce & Agriculture, Pune.

BY E-mail / SPEED POST

Date 1st,June,2015

APPEAL TO ALL THE BOARD MEMBERS OF BANK OF BARODA ON RETIREES PENSION ISSUES.
Dear Sir/Madam,
Subject:- Unconstitutional and illegal attitude of IBA and UFBU in the matter of
Retirees issues as spelt out in the record note of discussion of IBA and UFBU
dated 25-5-2015
This has reference to the press note dated 26th May 2015 issued by the Chairman of IBA Mr. T.M. Bhasin clarifying that the Adhoc arrears would be paid w.e.f. 1st November, 2012 immediately after its approval by the respective Boards of Banks and the new scale of pay will be implemented after due process of approval of Revised regulations by the Government of India and its adoption by respective Boards of Banks.

The recommendation of IBA to implement and to pay the Adhoc amount is illegal as IBA’s recommendations have no force of law due to the fact that IBA is unregistered body under the law. Banks which are formed under the law and PSU BANKS are state as per constitution cannot accept such unforceful recommendation of IBA ,if they go ahead it will be against rule of law. The personnel who are public servants as per IPC and follow such recommendations which have no force of law, will be held accountable and responsible and they will be doing it at their peril.

It is rather unfortunate that all the issues relating to retirees have been kept aside and the issues of only serving employees have been dealt with at the industry level settlement. This is a great injustice to retirees who have given their brain, brawn and blood to the bank’s in their hey days. It is against corporate ethics and governance for the Board to give effect to such one sided settlement, if at all they believe in corporate governance. A good number of our pensioners who retired after 1.11.2012 are hard hit in as much as their pension is getting reduced considerably by several thousand whereas in the normal course one expects a raise in pension on account of wage revision.

THE WORST SCENIRO IS THAT OF REDUCTION OF PENSION IN CASE OF LARGE NUMBER OF EXISTING PENSIONERS IRRESPECTIVE OF WHETHER THEY OPT FOR COMMUTATION OR NOT. This is a gross anomaly and a hit below the belt of pensioners. How can the existing pensioners lose their current pension amount by several thousand on account of wage settlement? FURTHER THE REDUCTION IN PENSION IS AGAINST CONSTITUTIONAL PROTECTION TO THE EMPLOYEES AS PER THE DECISION OF MANIPUR HIGH COURT WP(C) NO 744 OF 2014 DATED22-5-2015.

The manner in which the special pay concept has been brought in, the employees would be at loss for ever. It is a permanent disability without any external injury. Introduction of grade in the name of special allowance not taken for pension is to reduce the pension to the employees is against the well established practices in the country and elsewhere. When additional pension is released to the seniors to beat the inflation and medical expenses the settlement is against such principle.

In view of what is stated above the Board needs to question such anomaly and deny the approval.
Mr Bhasin please be informed that the Hon’ble Minister of State Mr. Jayant Sinha in his reply to the Parliament question No.3396 and 2140 has stated that the total amount of Loan written off by the Public sector Banks during the last five years stands at Rs.1,06,170/- crores and as per RBI data the gross NPA of Public Sector Banks are Rs.2,60.531/ crores as on December 2014. The total number of NPA borrowers of Rs.Ten crores and above as at the end of September 2014 are 2897 with amount outstanding of Rs.160164/- crores. Obviously, PSBs have to make provisions for these NPAs out of P&L whereas in terms of section 10(7) of Banking companies (Acquisition and Transfer of Undertakings) Act, 1970, issues of superannuation funds has prior charge over net profit. These NPA borrowers are enjoying the funds and the employees are being given a raw deal.

It is, therefore, our earnest appeal to the members of the Board not to approve such one sided wage settlement and both the Record note1 and Record note no 2 which reduces the pension amount of several existing pensioners by several thousand as, they are illegal, unconstitutional and against all cannons of justice and fair play besides being against corporate governance. Further the unique landmark note on discussion on the retirees issues between IBA AND UFBU will go down in history as a record note or sorts , anti labour , anti elders ,senior citizens and human rights and above all brings to the surface the simmering one sided employee oriented wage talks to the utter detriment of all pensioners and oozing in contents with absolute negativity not even exhibiting an iota of concern to pensioners or any sense of HRD or empathy towards a dwindling species ,totally forgetting the dedication of sacrifice by these elders to the cause and progress of the institution they served
We may further mention here that Hon’ble High Court of Allahabad has already stated that the settlement is subject to decision of writ petition filed by WE BANKERS who have highlighted the reduction in pension of many existing pensioners. Since the matter is sub-judice, we request you to refrain from giving effect to the settlement and the record note 1 and record note 2.

S.RAMACHANDRAN
FORMER GM BANK OF BARODA (age 77years)
PENSIONER ,AND ON BEHALF OF
THOUSANDS OF AFFECTED PENSIONERS OF
BANK OF BARODA
PUNE 1-6-2015

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