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Retirement Gratuity Ceiling hiked to Rs.20 lakh for bank employees and officers – AIBEA

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Retirement Gratuity Ceiling hiked to Rs.20 lakh for bank employees and officers – AIBEA

Joint Ciruclar on Gratuity Ceiling
March, 2, 2017
Dear Comrades,

Improvements in Gratuity under Gratuity Act

Our units are aware that Gratuity is one of the important retirement benefits for the bank employees and officers. In all Banks ( except SBI ), Gratuity is paid as per formula under BPS/OSR or under the Gratuity Act whichever is higher. (In SBI, Gratuity is payable under the Act only).

While there is no ceiling for Gratuity under BPS/OSR, under the Act, there is a ceiling which is at present Rs. 10 lacs. (from 25-5-2010). When an employee or officer retires from the Bank, his/her Gratuity entitlement would be calculated both under the Act and under BPS/OSR and the higher of the two will be paid.

For example, a senior substaff/Daftary retiring after 40 years’ service would be eligible for ( approx.) Rs. 5 lacs under BPS and Rs. 8 lacs under the Act and hence would be paid Rs. 8 lacs as Gratuity.

A senior Clerk/Special Asst. would be eligible for Rs. 9.50 lacs under the BPS and Rs. 10 lacs under the Act and hence would be paid Rs. 10 lacs.

A senior General Manager of a Bank retiring after 40 years’ service would be eligible for Rs. 17 lacs under the OSR and Rs. 10 lacs under the Act and hence would be paid Rs. 17 lacs.

Due to continued inflationary trend and erosion in value of rupee, AITUC and all other Central Trade Unions have been demanding improvement/removal of ceiling under the Gratuity Act. Due to their effort, the ceiling was increased from Rs. 1 lac to Rs. 2.50 lacs, and then to Rs. 3.50 lacs and to Rs. 10 lacs in May, 2010. They have been demanding for removal of ceiling on Gratuity under the Act.

AITUC and Central Trade Unions have been pursuing this issue for the last more than 4 years through various programmes and struggles.
Thus AIBEA and AIBOA have been part and parcel of all these programmes and strikes on the 12 Points Charter of Demands of the Central Trade unions which includes the demand for improvement in Gratuity Act.

AITUC and Central Trade Unions have been following up these demands with the Government and as a result, recently on 23-2-2017, the Central Government called for a Tripartite meeting on the issue of revising the ceiling on Gratuity. From AITUC, its Secretary, Com D L Sachdev participated and put forth the following suggestions.
  • i) While there should be no ceiling for Gratuity, as an interim measure, Government’s proposal to increase in ceiling of Rs. 20 lacs can be accepted.
  • ii) The revised ceiling should be made effective from January, 2016.
  • iii) Minimum service of 5 years for eligibility for Gratuity to be removed.
  • iv) Gratuity to be paid at 30 days wage per year instead of 15 days wage as atpresent.
  • v) All factories/establishments to be covered by the Act irrespective of number of workers.

All these matters have to be finally cleared by the Labour Ministry and then by Finance Ministry and then to be brought to the Parliament for amendment to the Gratuity Act.

Units are aware that improvement in Gratuity Act has been one of the demands of our strike on 28-2-2017. We are in touch with the AITUC and will keep our units informed of any further development in this regard.

With greetings,

Yours comradely,

Source: AIBEA

Walkout by Federations from DC/JCM meeting today 07.03.2017 - NFIR

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Walkout by Federations from DC/JCM meeting today 07.03.2017 - NFIR

Railway Board’s order dated 30.01.2017 curbing workers’ rights – Walkout by Federations from DC/JCM meeting today i.e., 07.03.2017
07 March, 2017
The General Secretaries of
Affiliated Unions of NFIR


Subject: Railway Board’s order dated 30.1.2017 curbing workers’ rights.

In the DC/JCM meeting held on 7.3.2017, during Opening Address, both the Federations have taken a stand that the unconstitutional order dated 30.1.2017 preventing Safety (Supervisory) Staff
from becoming Office bearers should be withdrawn by the Railway Board immediately to facilitate negotiations to resume.

The President, General Secretary, Working President etc. have conveyed their strong protest against the Board’s letter dated 30.1.2017.

The General Secretary/NFlR had stated that the Railway Board has betrayed the Federations and the Railway Board has equally failed on several counts on written commitments. notably:

a) Replacement of GP 4600 with 4800

b) Upgradation from Gr.C to Gr.B (Gaz.)

c) Allotment of GP 4600 to Loco (Mail)

d) Stepping up of pay of Loco Inspectors inducted prior to 1.1.2006

e) Arbitrary reversal of various decisions given in the past (as a result of agreements with the Federations) and without caring to consult federations.

f) Track Maintainers upgradation (written commitment of Board)

In light of Railway Board’s total failure, the Federation (NFIR) conveyed that it is not in a mood to participate in the negotiations of DC/JCM forum and at the same time demanded immediate
withdrawal of Board’s order dated 30.1.2017, if the Railway Board sincerely feels that industrial relations are required to be preserved.

With the above observations in the DC/JCM meeting, the leaders left the meeting place. Both the Federations have jointly walked away from the meeting.

Please convey to all employees the above development, as the Railway Board’s order is a direct attack on the rights of workers, whether they are Supervisors or Non-Supervisors and it is a gross violation of Trade Union Act, ID Act etc.

Also convey the “Walk Out” decision of Federations to GMs, CPOs etc.

Yours fraternally,
General Secretary

Source: NFIR

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