IBA’s
Arrogant and Arbitrariness Attitude Now Totally Exposed: Encashment of
Leave on Compulsory Retirement Now Permitted
BY SOURCE:http://www.allbankingsolutions.com/Wage-Revision/CSR-leave-encashment.htm
Rajesh Goyal
Today (i.e. 15th May 2015), a copy of the IBA letter dated 11th May 2015 has been released wherein IBA has instructed the Chief Executives of the Banks to permit encashment of leave on compulsorily retirement.
A reading of IBA circular gives a real insight of the mind set of IBA team and their absolutely negative attitude towards bank employees. I am shocked to see the arrogant and arbitrary attitude of IBA on this issue and the brazenness with which they have admitted so to how they have harassed the poor bankers who were given CRS.
Let me first put below the copy of the said circular issued by IBA, for which some union leaders are trying to take credit and even saying that it was because of their taking up the issue in sub-committees. Should we assume that the sub-committee decisions will now be released in instalments rather than in one agreement to be called 10th BPS? This is another method of befooling the Aam Banker 
Frankly
speaking,
I was
not
aware of
the
intricacies
of the
denial
of leave
encashment
to CRS
employees
as I
thought
it was
not
allowed
anywhere.
I will
quote
below
some of
the
paragraphs
which
shows
that IBA
is
totally
negative
towards
bank
employees
and can
not be
trusted
by the
Aam
Banker.
I am
sure
there
will be
many
more
skeletons
that
will
tumble
out soon
as now
bankers
have
started
following
the
cases in
Courts.
Some of
the
interesting
quotes
from the
circular
are :-
(1)
It was in year 2000 (i.e. about 15 years back ) that IBA decided not to allow
Leave encashment and Travelling Allowance on Retirement for officers whose
services are compulsorily retired as a punishment.
(2)IBA
was well aware that SBI was permitting encashment of leave on compulsory
retirement as per the provisions of their OSR.
Thus, IBA had created two set of rules : one for SBI and another for Public
Sector bank employees. They never bothered to check whether it is legal to
deny the employees of PS Banks the right to leave encashment which was available
to SBI.
This clearly proves that HR policies of SBI are undoubtedly more positive than
what IBA team thinks (who are headed by ex-CMDs and serving CMDs of banks) and
PS heads boost of.
It is now clear that serving CMDs firmly believed that in case some mistake is
committed by a bank officer, then even his / her terminal dues must be shrinked
to the maximum extent. It is a shame on the
part of the CMDs that inspite of knowing well SBI is paying these as per law,
they never though to review this decision in last 15 years.
(3)To
my dismay,
IBA circular even mentions that Govt of India in February 2006, had also decided
that in cases where government servants are compulsorily retired as a measure of
punishment , the benefit of encashment of earned leave at the time of such
retirement shall be allowed.
Thus for last 9 years IBA was fully aware that it is against the government
policy to deny such encahment of leave.
Still they decided to continue with this illegal policy of denying leave
encashment to CSR bankers.
(4)Now
comes the worst part.
Inspite of knowing that it is illegal to deny the leave encashment to CSR
bankers, the bank HR teams and IBA team ganged up and when these bankers went to
Court, instead of releasing their dues, they decided to fight the cases tooth
and nail.
Ultimately, as per IBA circular, some of the affected officers approached
various High Courts and got relief in their favour.
In this process crores of rupees must have been spent in payment to bank
lawyers, hundreds of hours must have been wasted by Law officers of the banks
in briefing such lawyers, and hundreds of hours must have been wasted of Courts
only as IBA WAS ARROGANT AND ARBITRARY DECIDED NOT TO PAY CSR BANKERS THE LEAVE
ENCASHMENT.
This
is the reason why our legal system is on the verge of collapse as whosoever has
money (specially free) and power can easily misuse the same and delay the
process of legal remedy.
Thus,
it appears that now IBA was facing the challenges of contempt of Court and none
of the IBA team or CMDs of PS Banks wanted to go to jail for contempt of Court
and thus they were forced to release this circular.
It
is the biggest shame for CMDs of all PS Banks and the CEO of IBA. Each one of
them needs to hang their head in shame today that for last 15 years, PS Bankers
have been denied what was legally due to them.
Now
questions arises what about bankers who were denied the leave encashment since
2000 inspite of that being paid by SBI, Government of India and instructions of
High Courts? The circular only says that it is applicable only from April
2015.
To
avoid further complications, there is a need that IBA should issue instructions
that all those who were denied this since 2000 should be paid leave encashment
alongwith interest @ 15% p.a. (compounded quarterly) or they should be paid
encashment at the current salaries in the equivalent grade.
I
will be soon writing a separate article about how retired bankers have been
ignored in this settlement inspite of so many cases decided in favour of bankers
and many more are at advanced stage of judgment.
I
have no other words except to say that IT IS A SHAME, SHAME, SHAME ….. ALL THE
WAY SHAME FOR IBA AND TOP BANK MANAGEMENT
AS THEY HAVE BEEN FORCED TO EAT WHAT THEY HAVE BEEN SPITTING FOR LAST 15
YEARS. It is also shame on UFBU (the so called biggest union of workers in
India) that they failed to get this issued settled knowing fully well that it is
payable by SBI and Govt of India..
What is the use of such a union which can not even enforce what is available in
SBI and Govt of India and is illegally denied in banks.
GoI and RBI are also sleeping and are not ready to play the role of regulator.
This is the reason that PS Banks are going from bad to worse.
