Disparity and Violation of bilateral agreement
Disparity and Violation of bilateral agreement
Ref. No: AIJKBOF/2021- 03
The President,
HRD Division,
Corporate Headquarters,
M.A.Road, Srinagar, Kashmir.
March 26, 2021.
Subject: Disparity and Violation of bilateral agreement.
Sir,
Bilateralism is the corner stone of employer-employee relations in an organisations to facilitate dialogue and cooperation. Bilateralism therefore comes into existence when the two sides of an organizations agree to work together, undertake to achieve the goals, resolve crises and issues and is a binding on both parties. Maintenance of sanctity of bilateral agreements therefore assumes a lot of significance in a service related industry like Banks where customer service and satisfaction plays a pivotal role. The activities of banking industry are basically all about “relationship’’ with customers only.
Sir, as you know that 8th Joint Note was signed between IBA and UFBU on 11th November, 2020 with 15% increase on wage load, salary revision including officers up to scale-VII and Performance linked Incentives linked to operating profit/ Net profit of the individual banks. It was agreed PLI shall be payable to all employees annually over and above the normal salary payable. The PLI matrix shall decide the amount payable to the employees (in a number of days of Pay= Basic + DA) depending upon the annual performance of the bank. All the employees shall get the minimum number of days of pay as incentive depending on where in the matrix the bank’s performance fits in, broadly as per matrix as under
| Sr.No | Year On Year Growth in operating Profit | No. of days for which Salary (Basic + DA) shall be paid |
| 1 | < 5% | NIL |
| 2 | 5% to 10% | 5 Days |
| 3 | >10% to 15% | 10 Days* |
| 4 | >15% | 15 Days* |
| *3rd and 4th slabs are payable only if the bank has Net Profit. If a Bank has growth in operating profit of 5% and more, but there is no Net Profit, then minimum 2nd slab of 5 days will be payable.The PLI will be applicable from Financial Year 2020-21 |
Other items which got space in the settlement include privilege leave encashment of 5 days for each calendar year at the time of any festival of the officer’s choice. Officers who have completed 55years of age as on 01.01.2020 and above shall be entitled to en cash at the rate of 7 days for each calendar year, introduction of learning allowance together with D.A., introduction of one more stagnation increment up to Scale IV, eligibility for stagnation increments reduced from 3 years to 2 years of completed service and family pension of 30% of the pay of the deceased employees etc. The popular demand of 5days week is still open for discussions and is expected that it would find a place in the record note.
We express our sincere gratitude to the Management and Board of Directors for acknowledging the strenuous efforts of the workforce and implementation of wage settlement arrived at industry level. We appreciate the prudence of the management for creating sufficient provisions for disbursement of arrears on account of wage revision w.e.f 01.11.2017 along with Variable Pay and yearly encashment of 5/7 days of privilege leave retrospectively from the calendar year 2020 undernewly introduced Annual Encashment of Privilege Leave. We appreciate the efforts of the Management for initiating the process to save the workforce from any additional burden of tax due to delay in receiving salary arrears, in terms of relief under section 89(1) of Income Tax Act, for which circular bearing No:781 issued under No: HR/PS/2020-21/005 of 25th instant stands issued by HR.
We are thankful to the Management for acceding to our request to change the nomenclature of Variable Pay to “Pay Protection” now been named as “Adjustment Pay” and delinking its payment with performance which has given impetus to our repeated arguments that said portion has actually been carved out of our basic emoluments and forms part and parcel of our pay. As your aware of the fact that said component was paid in lieu of additional pay drawn by workforce in terms of internal Bank Level Pay Revision introduced w.e.f April 2001, in terms of Board Resolution No.43. and in the year 2006-2007, while reverting back to IBA Pay structure, the said component earlier named as Variable Pay Component was reduced considerably, thus causing loss.
To compensate this loss, in the year 2009, an agreement was reached between Management and AIJKBOF by virtue of which it was agreed that w.e.f. 1st October, 2009, 10% variable will qualify for D.A and 15% variable pay will qualify for pension benefits and other allowance, except D.A.
While going through the contents of the Circular No. 751, bearing No: JKB/CHQ/IR & Codes/2021-382 dated; 21.03.2021 of Human Resources, with regard to salary revision (Officers), disparity has been observed with regard to payment of DA on 10% of Adjustments Pay, out of total 25% being paid to workforce. Through a chain of correspondence, personal meetings, we have clarified and were able to convince the Management and Board of Directors that 25% Adjustment Pay drawn by the workforce is actually Pay Protection Component and is no way an additional perk being paid to workforce of the bank.
Unilateral decision on the part of the management to freeze the Adjustment Pay, previously known as Variable Pay equivalent to 25% of revised basic pay and Platinum Jubilee Pay equivalent to one future increment on revised pay scale as on 31.12.2020 is a blatant violation of bilateral agreement reached in the year 2009 between the Management and All India Jammu And Kashmir Bank Officers’ Federation.
Violation of bilateral agreements lead to unrest and dissatisfaction and industrial peace and harmony becomes too difficult to maintain. We believe for optimum growth and consistent profits, employees’ satisfaction is essential which is possible only when employees comfort is taken care of and bilateral agreements reached between the parties are honored and implemented in letter and spirit.
During the course of “Expression of Thanks” ceremony held at “Yousf Khan Hall” on 16th instant where senior Management team headed by Chairman and MD, Office bearers of J&K bank Officers’ Association and Office bearers J&K Bank Workmen Union were also present, matter with regard to violation of bilateral agreement was brought in the notice of the Chairman and MD. Accordingly, you are requested to kindly arrange our meeting with Board level Committee, constituted for the purpose to arrive at an amicable resolution on the issue.
Yours sincerely
(Syed Jameel Qadri)
Secretary, AIJKBOF
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