Thread by @Bankers_United

As many of you may be aware that Centre drafted the rules for ""Minimum Wage Code Bill 2019" which was passed in RS on 2.8.2019. Lok Sabha passed bill on 30.7.2019. Lets try to understand what happened in it for Bankers & how IBA & UFBU made us fool
thehindu.com/news/national/…

On 7th July 2020 eGazette was published for "Code on Wages Bill, 2019" which seeks to amend & consolidate laws relating to wages, bonus & matters connected therewith.

✔The Code subsumeed,
✔Min Wages Act
✔Payment of Wages Act
Payment of Bonus Act &
✔Equal Remuneration Act.

Now coming the interesting part, in the middle of worldwide pandemic & more than 6 Month's hibernation, Indian Bank association wake up & issued letter on 10th July ( Just 3Days later) for "Wage Negotiations Meeting" on 22nd July. Coincidence???? Apparently not!! Stay tuned;

On 19th July (9Days later) Convenor UFBU communicated to IBA for setting up meeting & formed a committee to resume the talk!! Be advised, they did all that within 9 Days timeframe in this pandemic!!
Pretty fast for those who couldn't finalized in 1000 Days even....

Surprisingly ( Though we have doubt) on the very next day on 20th July, IBA issued communication to UFBU & arranged Date (22nd July) & place of meeting (Both Personal & Virtual) at 5 different Locations.. impeccable timing for those who have a proven history of delaying things.

On 22nd July without any much chatter, IBA & UFBU came to an understanding on #11thBPS wage negotiations after an historic ever 1056 Days Delay. Mind that no new development have been made & all provisions was the same as IBA submitted to CLC in Jan2020 after UFBU's Strike Call!!

Now coming to point on why all of a sudden so much hurry to finalize BPS & sign MoU, the answer lies within Wage Code Bill & its rules notified by Govt of India under Gazette notification which have given a clear definition of Employee/Employer & Wages in prescribed manner!!

"Employee" means any person (other than covered under apprentice act) employed on Wages by an establishment to do any skilled, semi skilled or Unskilled work. Hence employee engaged in Banking industry shall be covered under the Wage Code Bill positively...

Wages include,
✔Basic pay
✔Dearness allowance
✔Retaining allowances (No such allowance on Banks at time)

Based on MoU bankers have got merely 2.5% on components legally called "Wages", rest are clearly NOT part of WAGES!!

Following is NOT part of "Wages" as per Wage Code Bill;

✔Bonus
✔Overtime allowance
✔HRA/Leased rent allowance
✔Conveyance/Travelling allowance
✔PF/NPS contribution of Employer
✔Any commission payable

Under Point No.3 of MOU dated 22-07-2020, it has been mentioned
"The new pay scales will be constructed after merging DA corresponding to 6352 points [Avg index point of June, July, August, 2016 (why not of Aug2017??)] & adding thereon a loading of 2.50% on Basic + DA

Now as per the Wage Code Bill, Wages means BP/DA & Retaining allowance only, rest everything is not part of "WAGE". Coming again to signed MoU,
QUOTE
✔"The Wage Revision" will be effective from 1.11.2017
✔"Annual wage Increase" in salary & allowence is agreed at 15%

Based one correlation btwn signed MoU & Wage Code Bill, its clear that the Actual increase is mere 2.5% coz that's what actually given on the part called "Wages" on a Legal definition. That quick response & rapid meetings was never for Bankers welfare but to conclude the BPS...

Just to prevent any legal setback by any of the Banker. Unions in particular have a lot to answer to their members as to why no one (as of now) have focussed on BPS based on Wage Code Bill!!
The way things are, its evident that both IBA &UFBU tricked bankers!!