Letter to Mr. P Chidambaram 15 January, 2007

C N Venugopalan Ex- Manager, Union Bank of India	“Nandanam” Kesari Junction North Paravoor Kerala – 683 513
Phone No. 0484 2447994 Mobile: 9447747994 e-mail cnvenu@yahoo.com

Shri. P Chidambaram, 15^th January, 2007

Hon’ble Minister for Finance,

Govt. of India,

New Delhi

Dear Sir,

Pension for all bank employees

I take the privilege of addressing this letter to the Finance Minister who has made an indelible imprint through legendary performance for bringing Indian economy to the forefront of progress through a series of financial sector reforms. A versatile genius and a responsible minister committed to the welfare of the subjects as you are, you will be keen to fine tune the system so as to uphold the rich heritage and tradition India has by weeding out anomalies from your territory. Reflexes of the entire subjects shall go with the Minister and take him to towering glory when he renders justice to them by fulfilling the commitment he has given to them while swearing in and assuming responsibilities. Prevalence of glaring anomalies in the scenario will, no doubt, undermine the prestige of the system and belittle those responsible. Being at the helm of affairs in the economic front of the nation, the Finance Minister will be most particular to render justice to the entire subjects. He can not be the minister for the welfare of any particular segment of people an will be the minister for the welfare of each and every citizen. He can not differentiate between the workmen of SBI and the workmen of the rest of the banks. It is my sincere feeling that the Minister having taken solemn oath to protect the sanctity of the constitution, he will take immediate steps for doing away with discrimination of any kind among people doing identical work so as to preserve fairness and equality and to uphold the high values of the constitution. In such a context, I thought it worthwhile to bring to your notice the anomaly in the compensation package on retirement of officers and workmen in the banking industry.

India is drawing itself close to the Diamond Jubilee of independence. It is however dismaying to note that the water that has flown through the holy rivers failed to achieved the requisite amount of cleansing for the country. In the pre independence period, the British were perpetrating atrocities in the country. The British influence has not yet gone. They are now incarnate in the bureaucrats who are percolating discrimination and denying justice to the subjects. In the process, they are shaking the foundation of the constitution. The banking bureaucrats under the banner of the Indian Banks Association carved out an empire of their own, with rules and regulations framed by them applicable to it, and did things that ran counter to the constitution and infringed the fundamental rights enshrined it. The substantive law of the country had little or no application to the territory. They infused discrimination among people doing the same work and conferred distinct privileges to the employees of State Bank of India and extended step motherly treatment to the rest of the banks including the subsidiaries of SBI by signing separate wage pacts. They submitted unsound proposals and got Government approvals for them. The discrimination and disparity went on with each wage revision especially as they signed separate wage pact in respect of SBI and the rest of the banks. They proved themselves to lack credibility through their own wrong deeds.

In the process of commissioning the Pension Scheme, the banks denied the benefit of the scheme to about 8 lakhs bank men by keeping them out of it. This much employees could not join the scheme within the original time frame on account of the clause relating to forfeiture of entire service for participation is strike and those relating to requirement of minimum qualifying service of 20 years which existed in the Pension Regulations that stipulated surrender of the CPF contribution of the members to the Pension Fund of the Banks as the basic requirement for joining it. Banks illegally denied the employees a chance for fresh option while beneficially amending the Pension Scheme by scrapping the clause relating to forfeiture of past service and reducing the minimum qualifying service from 20 years to 15 years. Ironically, the scheme that compulsorily extends the benefit of Pension to the new recruits taken after 1995 denies the benefit to the existing employees who have already put in years of service even against surrender of their CPF balance of Rs.4.00 lakhs to Rs.6.00 lakhs to Pension Fund. The Pension benefit is thus denied altogether to bank employees who work for banks for 30 to 40 years in a country where the members of the legislature or Parliament earns a Pension out of the public exchequer on sitting for a small term of two years despite their subsequent ouster from office on account of public disapproval or moral turpitude.

Things became worse when the Government conceded to the demands of the SBI employees in April, 2006 by approving hike in Pension in the name of bringing parity with the Pension Scheme obtaining in other banks. While about 70 to 75 percent of employees in the rest of the banks did not have Pension even as a second benefit, the demand of SBI employees was considered, making them eligible for three retirement benefits in sharp contrast with only two benefits in the other banks. Parity was established with something illusory and the principles of equity and equality to similarly placed got tumbled down. All lofty principles the nation and its constitution had envisaged got upset in the sixth decade of independence of the nation.

It really becomes a matter of pity that even on realizing the mistakes, the bureaucrats are not showing the wisdom to admit them and to take requisite corrective steps. It is well known to them that extension of the second option on Pension is something inevitable that can be done without any expenditure in excess of the committed establishment costs obtaining in 1995. What is necessary is only a positive approach to the issue and a willingness to correct the earlier stand taken. The unscientific deeds sans any intelligent reckoning have engendered much turmoil and resentment among the working clause and banking services gets paralyzed frequently on account of labour unrest. The net outcome is inconvenience to the public and bad reputation to the Government. Any further inaction in the matter is effort to patch a hole with darkness. The threat of a nation wide agitation of bank employees is looming large in the banking scenario in furtherance of a second option on Pensions. It is felt ideal that the government shows the magnanimity to settle the issue on its own without driving the work force out of their seats and putting the banking operations to ransom and finally conceding to the demand of the work force as done in the case of SBI employees last year. Pension is to be approved to all those, both working and retired, who have the minimum stipulated qualifying service as a third retirement benefit as in the case of SBI employees so as to remove discrimination. There is cent percent justification for considering the retired also irrespective of the mode of exit like Voluntary Retirement, Resignation or normal retirement since the contribution each employee has made to the organization and to the country is since the same. The Pension Scheme commissioned in 1995 encompassed under it those who retired after 01 01 1986. The members of the Parliament or Assembly who have resigned or expelled after a term of two years earn a Pension. There is no justification in denying the benefit to the retired or resigned or those who are sent out through special packages so long as similar persons get such benefits. It is my sincere desire that the Hon’ ble Minister be pleased do justice to the deceived and avert the possibility of a strike of the employees for second option on Pension in banks.

I shall be circulating copy of this letter through e-mail to the bank employees at large, all over the country, so that the action of the Minister in settling the issue is hailed by each and every one and all of them have allegiance to the Minister and his organization.

I am enclosing a copy of the fortnightly “Business Economics” (Dec.16 – 31 issue), containing the article on Indian Banking Sector: A Saga of labour unrest” contributed by me in its pages 22 and 23 that will give you a correct version of the picture. The annexure to this letter also will give you a clear picture of the anomalies as this will bring home to you the need for immediate corrigendum action by giving appropriate directions to the concerned.

Thanking You,

Yours faithfully,

C N Venugopalan