WHAT'S STAFF WELFARE ? HOW FUNDS TO BE USED ?

फोरम आफ बैंक पेंशनर एक्टिविस्ट्स

Forum of Bank Pensioner Activists

            (AN ASSOCIATE OF AIBRWA)

                   PRAYAGRAJ  

    न त्वहं कामये राज्यं  न स्वर्गं नापुनर्भवम्।

    कामये दुःखतप्तानां प्रणिनामार्तिनाशनम्॥

WHAT'S STAFF WELFARE ?

HOW FUNDS TO BE USED ?

 

Government of India, Ministry of Finance, Department of Financial Services vide Order No. F. No. 9/18/2009-IR dated 22 October 2009, constituted a Committee headed by Dr. A. K. Khandelwal, the then CMD of Bank of Baroda, with the assignment of studying the Human Resource Issues of Public Sector Banks (PSBs) and making appropriate recommendations thereon. The Committee, known as Khandelwal Committee (KC), submitted its recommendations on 24.6.2010.

Among other issues, the KC studied the prevailing Staff Welfare measures and made its observations, opinions and recommendations about it under Chapter 12.3 of it's report. In this article, we would like to examine this chapter to highlight some shocking facts, which appear to be deliberately suppressed to deprive "serving and retired" employees of their due rights.

√ It is clear from Clause 12.3 of the Khandelwal Committee (KC) Report/ Recommendation – Staff Welfare is an 'employee' centric scheme where the word 'employee' has been used 23 times and the word 'officer' has not even once. 

√ According to KC, it's (Staff Welfare) non-statutory welfare measure to partly compensate the employees in the context of high cost of health and education as also to meet certain contingencies of life. As we stated in our earlier article, it's low paid employees who can't afford high cost of health & education.

√ KC points out, 'Traditionally, Staff Welfare Funds have been earmarked for health and education expenses of the dependents of the employees and in some circumstances, of the employees 

themselves.'

√ Explaining the Staff Welfare Schemes in vogue, KC said, 'Broadly, holiday homes to existing and retired employees, scholarships to talented students of employees, health check-up of employees, canteen subsidy to employees, loss of pay leave due to major illnesses/ surgeries, Financial assistance to employees in purchasing artificial limbs and hearing aids, providing financial assistance to dependents of employees who die in harness, promotion of small family norms and contributory medical assistance Scheme for retired employees, are schemes under the Staff Welfare scheme. 

√ KC states in clear terms, "Besides, with the number of retired and retiring employees increasing year after year (it is to be noted that large portion of current work force had joined the PSBs in 1970s), it is only fair that a part of Welfare allocation goes to the retired employees considering their long service and contribution in the respective Banks.

√ KC recommended Welfare Funds' allocation taking into consideration the business and employees strength and made distribution of allocated Funds as under:

i) For education of children of the employees 25%,

ii) For medical and health care facilities for the employees, spouse and dependents 25%,

iii) For medical and health care facilities for the retired employees and their spouses 25%, and

iv) Boards of the Banks to decide on the schemes for the balance 25%.

Look to above distribution method, where education to children of employees, medical & health care facilities of 'serving & retired' employees are put on equal footings, that's why DFS in para 2(ii) of their letter dated 24.2.2012 advised that, "(ii) Banks may consider the option of Group Insurance Policies for 'both serving and retired employees' instead of direct payment of benefit from the Fund."

✓ With all fairness, KC expressed it's belief that the 'core object of staff welfare' should not be allowed to be diluted or compounded. It said, "There is need for greater clarity as to what constitutes staff welfare."  It expressed the need for a generally agreed approach to the key constituents of staff welfare and proportion to be allocated for each such constituent."

√ The KC disagreed to 'canteen subsidy' to employees, which it found against the very spirit of 'staff welfare' and recommended to stop it wherever in vogue. Committee held the view that 'no cash should be paid to the staff from out of staff welfare fund, except in case of payment of medical and educational facilities.'

KC concluded it's report by making a very important recommendation, which was not heeded by the working Unions and went unclaimed by so-called retired Unions. "To take care of the interest of the retired employees, the Committee  recommends that two retired senior executives should be nominated by each Bank on its Staff Welfare Committee", said the committee in its report.

It is noteworthy that the Committee has asked for nomination of 'retired senior executives' on behalf of the retirees, as they will not be beneficiaries and will look after the interests of the retirees impartially. The Working Unions deliberately never demanded this and their pendulums, AIBRF/AIBPARC, maintained an ostrich attitude.

We do not know whether any Bank has even one representative of retirees in its Welfare Committee, leave aside two, as recommended by KC. Majority Unions' one officer and one employee representative are in the Welfare Committees and they are misappropriating all the amounts of Welfare Funds in the name of Working employees.

(J. N. Shukla)

National Convener

9.10.2023

9559748834