EDITORIAL BOARD

EditorCom. Walter Lasrado

MembersCom. Vincent D’Souza

Com. G. Govardhan PrabhuCom. B.N. RajajiCom. M. Nagaraj

Corporation Bank Employees’ UnionCBEU Golden Jubilee Hall, 1st Floor,

Opp: Sharada Vidyalaya,P.V.S. Kalakunj Road,

Kodialbail,Mangalore 575 003

Phone: 4279303

Volume No. 21

Issue No. 1

March 2014

For Private circulation only

Views expressed in this Magazineare not necessarily those of

Corporation Bank Employees’ Union

Dear comrades,

The Election fever is slowly gripping our country. Indian political systemhas entered a critical situation whereby it is totally controlled by Corporates.They are not only dictating the policies but they are also interfering in thechoice of Ministers. Today even the media to a large extent is controlledby these Corporates. They are financing the elections to reap bumperharvest. In addition even foreign corporates do have a great influence onthe political system of our country.

UPA II Government is gradually getting isolated from the common massesdue to numerous corruption charges, total abandonment of its commitmentto the people, working at the behest of the corporates, liberalising theeconomy, failing miserably to curb price rise etc., etc., The price rise hasbeen such that the common man is suffering the most. Slowdown in economyhas affected the livelihood of the working class especially those who areworking on a contract basis and belong to unorganised sector constitutingthe largest segment of the working class.

Over a decade, trade unions have been fighting against the attacks of theGovernment. The all out unity of the trade unions and consistent massaction including Two Days’ Strike by more than 10 million workersagainst the anti labour policies of the Government was the most importantevent taken place in the country. The two days strike and also Morcha toParliament has stimulated the mood of the workers. Working Class hasclearly understood that without bitter and prolonged mass action it is notpossible to realise the just demands. Moreover the workers have alsounderstood that without a proper political representation it is difficultto tide over the situation. The political necessity and consciousness is slowlydawning amongst working class.

GENERAL ELECTION - 2014

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LABOUR NEWS

63 SACKED 30 YRS AGO TO GET2LAKHS EACH

Over three decades after employees of anAndheri company, associated with unionleader, the late Datta Samant, struck work, theBombay high court ruled that there was nomaterial to hold that the strike was illegal.Justice M.S. Sonak said their dismissal was notproper and directed Haldyn Glass Ltd., whichshut down in 2006, to pay 2 lakh each to the

Job creation has fallen miserably on the one hand and on the other hand contract labour issteadily increasing. Miserable service conditions, low wages and long working hours are thesignificant features of contract labour. Poverty and unemployment has created a dreadfulconditions of slavery in working place.

In our industry, RBI is moving towards granting of new Bank Licences to Corporates and industrialtycoons when the country is busy in electing new parliament. It is a fact that major chunk ofNPAs are from the private corporate sector and many business houses are wilful defaulters.AIBEA has opposed this move and written to the Election Commissioner lodging official protest.AIBEA has also demanded that loan defaulters should not be allowed to contest Lok Sabhaelections.

Trade Union movement is always an instrument of social change. But the workers have to bepolitically conscious. Alongwith the trade union commitment and militancy, political awarenessand commitment has to be developed. This is because the character of the new parliament andcombination of the various political forces that may come into power shall influence the life andlivelihood of the working classs.

If the new Government pushes ahead pro-corporate policies, it will make the situation moregrave for the working class. If the communal forces are able to grab power, then the situationwill be more dangerous and enimical to trade union movement in this country. Therefore, ouraim should be to support the candidates who are friendly to the working class and their interestand to defeat the forces committed to liberalisation and privatisation and also unite against thedreadful communal elements. Our political action should be for the victory of anti-capitalist and anti-communal candidates.

Comradely yours,

(Walter Lasrado)Editor

63 employees who were sacked. The HC alsotold the company to pay 1 lakh as legal coststo the Maharashtra Kamgar Union. “Mereparticipation in a strike is by no means sufficientto impose maximum penalty of dismissal inservice”, the judge said, adding, “Once it isheld that there is no material on record toestablish that the strike was illegal, it obviouslycannot be held that the workmen committedan act subversive of discipline.

The court noted that there was no material onrecord to suggest that employees were involved

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in violent or subversive activity or had notdischarged their duties properly before thestrike. The judge said there was evidence thatthe employees wanted to resume work but thefirm had told them to first sign bonds of goodbehaviour. Though the labour court hadgranted the employees 2-6 lakhcompensation, the HC fixed the payout at 2lakh for all. But the HC stayed its order for sixweeks. The firm had 600 employees, andbetween 1984 and 1986, they participatedin a strike. The firm offered them a chance toresume duties by furnishing bonds. While mostsigned it, 63 who refused were suspended,and after a probe were ordered to bedismissed. The employees challenged this,saying they were victimized.

BAJAJ EMPLOYEES’ UNION REJECTSWAGE HIKE OFFER

The employees’ union at Bajaj Auto Ltd’sChakan plant near Pune has rejected themanagement’s offer to give each of around850 workers a monthly wage hike 10,000.The Vishwakalyan Kamgar Sanghatana (VKS)is demanding a rise of 16,000 per worker.The offer, similar to the rise given to 130-oddworkers at the neighbouring Akurdi facility aweek ago, came hours before VKS presidentDilip Pawar was to begin an indefinite hungerstrike outside the Akurdi premises on themorning of February 16.

Bajaj Auto makes its bikes at the Chakan plant,while the Akurdi facility, which used to makescooters, stopped production a few years ago.Though Sunday’s hunger strike was called off,Pawar said the offer made in a notice toworkers was conditional as workers had to signan acknowledgment. He termed the offer anunfair labour practice. “I have postponed thestrike and want to give another chance to

resolving the issue through discussions with themanagement.”

The notice, signed by Kailas Zanzari, Vice-President, motorcycle (manufacturing), was putup at the Chakan plant on Saturday eveningwhen the second shift was under way. Itproposed wage hike in three slabs - 10,000for workers with, five and more years’experience. 9,500 for those with three-five years’ experience and 9,000 for thosewith up to three years of experience. It was tocome into immediate effect after a writtenacknowledgment from the workers. Ifaccepted, this would have taken the averagecost to the company of each Chakan workerto 35,000. While Rajiv Bajaj, MD, BajajAuto, declined to comment on the issue, astatement from the company called the VKS’demands ‘irrational’. It said the union hadsigned an MoU for the same amount to be givenfor workers at Akurdi in a phased manner onFebruary 10. The rise of 10,000 a month,given to the Chakan workers with five years ofexperience, is same as that of Akurdiemployees with 25 years’ experience, and isthe best rise in the Chakan industrial belt, itadded.

LABOUR LAW EXEMPTION PERIODEXTENDED FOR IT COMPANIES

The Information Technology (IT) and InformationTechnology Enabled Services (ITeS) companiesin Karnataka have been exempted fromcomplying with labour legislations for five moreyears. The sectors have been enjoying thebenefit for the past 12 years. The IT and ITeScompanies in the State have been exemptedfrom conforming to Industrial Employment(Standing Orders) Act, 1946, which governall workplaces employing more that 50workers.

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According to the legislation, the companieshave to follow regulations relating to the serviceconditions of employees including work hours,attendance, leave, holidays, wages, shifts,transfers, suspension, acts of misconduct andretirement age, etc. as stipulated by the Labourdepartment. The firms benefited include thosedirectly involved in Information Technology andrelated industries such as animation, gamingand computer graphics.

The previous exemption period lapsed onMarch 31, 2013. However, the IT companiesbuilt pressure on the government to get theexemption period extended, an official in theLabour unions have dubbed the move “anti-welfare”. However, the renewed exemptioncomes with certain riders such as formation ofan internal complaints committee on sexualharassment and employees’ grievance redresscommittee. The Labour department issued anotification to this effect on January 25.

EPFO MAY BE ALLOWED TO USESARFAESI ACT TO RECOVER DUES

With the economic slowdown resulting in risingcorporated defaults, including that for PF dues,the labour ministry wants to enable EmployeesProvident Fund Organisation to use the SarfaesiAct to recover its dues from defaultingcompanies. Although EPFO’s outstanding duesof 4,093 crore are a small fraction of its6.32 lakh crore corpus, their faster recovery

could help the country’s largest retirement fundto offer higher returns to its subscribers. Sincethe Securitisation and Reconstruction ofFinancial Assets and Enforcement of SecuritiesInterest Act of 2002 now allows only banks torecover loans from defaulters, sources said thelabour ministry will have to seek financeministry’s help to bring in necessaryamendments to the Sarfaesi act.

“At last week’s meeting, the labour secretaryhas assured the members of central board oftrustees (CBT) of the EPFO that the matter willbe taken up with the concerned ministry,” aCBT member told FE. If the Sarfaesi Act cannotbe used by EPFO to recover dues, the labourministry is exploring whether standinginstructions could be given to banks ondeduction of PF dues from defaulting employers’accounts. In case of ailing PSUs, the labourministry is planning to raise the issues with therespective ministries.

“Trade union members supported the move touse Sarfaesi for recovering EPFO dues.However, the process may take some time as itrequires legislative changes,”. While there areprovisions in the EPF Act the allows EPFO totake legal actions against defaulters, many ofsuch claims have been challenged in courtsand delayed recovery. Of the total outstandingdues of 4,093 crore, EPFO has classifiedabout 1,967 crore or 55% as ‘unrecoverable’due to stay granted by various courts.

STAFF OF 80 COS MAY LOSE PF TAXSOP

Thousands of employees of around 70-80companies run the risk of being denied taxexemption on their provident fund contributionsfrom April as their employers have failed toget the approvals for availing the benefit fromthe Employees Provident Fund Organisation(EPFO), which regulates these entities. Apartfrom employers contributing directly to EPFO,the law allows companies to float their owntrust to manage retirement savings of theiremployees. These trusts need to be registeredwith EPFO before they seek tax exemptions.The provision was introduced in 2006 whenthere were as many as 200 trusts which wereoperating without adequate regulation.

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In the Budget, the tax department has beenextending the deadline for the past severalyears but this time it could not do so as thegovernment could not amend the Finance Actas part of the interim budget exercise. As aresult, the extended run ends on March 31.Officials said that the list of companies includessome of the biggest names in the corporatesector, multinationals as well as somegovernment entities. These firms now have theoption to complete the formalities over the next40 days or let their employees be deprived oftax benefits. The law allows annualcontribution of upto 1 lakh to provident fundbe exempt from tax.

A senior EPFO official said trusts startedaccepting money several years ago, includingdeposits, which they cannot do unless they areregistered under the PF Act and with EPFO.“The idea is to ensure that the investmentpattern is followed and they are regulated. Butseveral of them have cited various reasons toget an extension. Basically, they have beendragging their feet”, the official said. Taxexperts said that they expected the governmentto provide a further extension to enable thetrusts to register with EPFO and also claimbenefits from the I-T department. But pendingthat, it would make sense for employees tocheck if the PF trust they are contributing tohas received the all clear signal from EPFO aswell as the tax department. In the absence ofclearances it would make sense to put moneyin other instruments such as public providentfund to avail of the 1 lakh exemption.Although companies have the flexibility tomanage the PF contribution of their employees,they have to ensure that the returns offered bythem at least match those given by EPFO onfunds directly managed by it.

BANKING NEWS

NEW BANK LICENCES MAY TAKE BFSIATTRITION TO 18%

ONCE the new banking licences are cleared,the financial services industry is likely to witnessa significant surge in recruitment activity so muchso that attrition rates are expected to hoveraround 18 percent in 2014, says Kelly Services.According to the firm, In 2014, once the newbanking licenses are cleared, one can expectto see significant rise in poaching within theindustry. The BFSI sector is expected to see aflat year till new banking licences are clearedin the budget which may lead to setting up ofnew private banks and creation of more jobs,the report said, adding that "we expect attritionrates to hover around 18 percent in 2014"

With the new licences in place, one can expectrise in employment in lot of technology servicescompanies too that cater to banks. Moreover,one can expect to see lot of employmentcreated in rural areas too as the governmentplans to push financial services. According toa recent Kelly Workforce Index survey titled"what talent wants" in 2013, around 55 percent of workers said they are looking for betterjob opportunities and are evaluating theexternal job market. The report further notedthat as many as 43 per cent frequently thinkabout quiting their current job.

HIGH COURT GRANTS RELIEF TO ICICIBANK CEO, 4 OTHERS

The Bombay high court on Tuesday restrainedthe Navi Mumbai police from taking coercivesteps against ICICI Bank Chief executive officerand managing director Chanda Kochhar andfour senior executives of the ICICI PrudentialLife Insurance Company on a first information

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to resign, while last summer IFCI chief executiveAtul Rai resigned within hours of a meeting withfinance ministry officials.

A UBI official said that the ailing bank whichhas stopped taking any big exposure for longhas started the process for reconciliation. Thebank posted a loss of 1,238 crore for theDecember quarter which was abnormal for abank with balance sheet size of little over 1.75lakh crore. It has a quarterly interest incomeof 2,700 crore. The gross NPA of the bankstood at 8,546 crore in the December quarter,while the net NPA was 5,630 crore. Theofficial pointed out that the situation wasdeteriorating from the June quarter itself.During its AGM on June 21, 2013 the UBI CMDtold shareholders that it has decided to stopfresh exposure in steel, power airlines, textilesand real estate.

BANK TO PAY FOR NOT KEEPINGCUSTOMER IN LOOP

Banks are duty-bound to give a writtenintimation to customers before deducting anypenal charges from their accounts, the Thanedistrict consumer forum has ruled holding theICICI Bank guilty of deficiency in service fordeducting penalty from a customer's accountwithout informing him. The forum also directedthe bank to refund the full amount incomplainant Banwarilal Sharma's account anda sum of 50,000 towards compensation formental agony. "Although the relationshipbetween a bank and its customer is bound byterms and conditions, banks are bound tointimate in writing the charges made in thoseterms and conditions from time to time," saidthe bench of forum president UV Jawalikar andmember ND Kadam.

In his complaint, Sharma said he opened asavings account at the Ram Maruti Road branchof ICICI bank in 2003, through an initial deposit

report (FIR) registered on the basis of acomplaint lodged by an employee of theinsurance company. "A bare reading of thecomplaint makes it clear that three is no casefor issuance of process against the petitioners(Kochhar Sandeep Bakshi CEO and MDJudhajit Das, HR Chief, Kalpana Sampat, chiefbranch operations and Poonam Bharadwaj,senior vice president)", said the division benchof justice Naresh Patil and justice VL Achaliya.

"Care has to be taken by magistrates whileexercising powers under section 156(3) (of theCriminal Procedure Code) because theconsequences are drastic, and result inregistration of the FIR," they said whilecommenting on the order passed by a judicialMagistrate First Class (JMFC), CBD Belapur,based on a complaint filed by the complainant.The woman, in her complaint, had alleged thatMukesh Pandey, her senior colleague at ICICIPrudential Life Insurance Company had sexuallyharassed her at the workplace. Acting on hercomplaint the JMFC court had, on January 27,directed the local police to register an FIR notonly against Pandey but also against Kochharand four other senior officials of the company.

AMID RISING NPA'S UBI BOSS QUITSON MEDICAL GROUNDS

Amid piling debt and losses, ArchanaBhargava, chairman and managing director ofUnited Bank of India, resigned on Friday.Officials in the finance ministry said thatBhargava, who joined the Kolkata based bank10 months ago, quit on medical grounds. Butthis is considered as one of the first casualtiesof rising burden of bad loans on the banks inIndia as both the finance ministry and RBI havebeen raising the alarm over the issue. Bhargavais the latest high-profile financial sector executiveto suddenly exit an entity, A few months ago,pension regulator Yogesh Agarwal was asked

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of 5,000, which, at the time, was theminimum balance he needed to maintain inthe account. In 2008 he found that 843 hadbeen deducted from his account. When heinquired about this, he learnt from the bankthat it had been deduced towards QAB charge(for not maintaining the minimum balance) andservice tax. It was then that Sharma reportedlyfound the requisite minimum balance had beenincreased to 10,000.

Sharma wrote to the bank and sought theclosure of the account. However, he learnt thatanother deduction of 843 had been madefrom the account for the January - March 2009period. In April, he approached the consumerforum. The bank refuted Sharma's allegationsand said he was aware of all the terms andconditions. The bank contended that Sharmashould have obtained the information aboutthe enhancement of the minimum balance. Theconsumer forum, however, held that the bankhad not intimated the customer about theincrease in the minimum balance in theaccount, or about the deduction of penalcharges, The bank was directed to compensateSharma within 30 days, failing which it would

have to, pay him interest at 9% per annum onthe compensation amount, from April 2009.

HC SENDS RBI NOTICE ON PLEAAGAINST BANKNOTE RECALL

The Madras High Court ordered issue of noticeto the Reserve Bank of India on a PIL seekingto declare as null and void its recent notificationwithdrawing all old series of currency notesissued prior to 2005. A Division BenchComprising Justice N Paul Vasanthakumar andJustice P Devadoss issued notice the apexbank's Governor and General Managerreturnable by two weeks. S SrinivasaNarayanan, an advocate, in his petitioncontended that the RBI had not disclosed thereasons for issuing the January 28 notification.The notification, issued "Completely over-looking the interests of public" had createdconfusions among the public and caused greathardship to exchange the old notes. It was silentregarding availability of denominations andits value and the circulation of the currencyissued prior to 2005, the petitioner submittedand prayed to declare the notification asunconstitutional and null and void. He alsoprayed for an interim stay on its operation.

CBEU MEETINGSBANGALORE

The much awaited members meeting of CBEUBangalore Zone was held on 22nd March 2014at ‘YAVANIKA ‘Bangalore. On being invitedcomrades of CBOA also attended in goodnumber taking the total participation aroundthree hundred. President of our unionCom.Walter Lasrado presided over themeeting. General Secretary, Com.VincentD’Souza, Com. A N Suresh, General SecretaryCBOA, Com K.B.D. Sharma, our JointSecretary, Com. Sridhar Naik, our Asst.

Secretary, Com.K.S. Vimala, our EC memberwere present on the dais.

During his welcome speech Com K.B.D.Sharma briefly touched upon the hard journeyof sixty years treaded by our beloved unionultimately clinching so many benefits for themembers and thereby creating a comfort zoneas far as the emoluments and service conditionsare concerned.

As per the decision of the last EC meeting ofour union, the Diamond Jubilee year of ourunion was celebrated as a prelude to themembers meeting. As part of SocialIdentification Programme of our union two

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organisations were identified by our Bangaloreunit. A donation of 25,000/- each was givenfor purchase of computer and learning tools toDeepa Academy for the differently abled andto Nivedana Trust, the two different institutionsserving for the cause of visually disabled girlstudents and of mentally retarted childrenrespectively.

In his opening remarks, Com. Walter Lasradotold that the very purpose of the meeting wasto introduce the newly co-opted joint secretarycom.K B D Sharma to the members of

developments that are staring at us within ourbank. He has also briefly explained the historyof our Union, its bir th and importantorganisational actions/agitations which haveactually strengthened the Union. The presidentcalled upon the rank and file to respond to theorganisational call of the Bank and leave nostone unturned to bring back the past glory ofthe bank. The welfare of the employees lies inthe welfare of the bank, he stressed. The bankbelongs to us and we need not care for thedistortions and deviations created by someindividuals. The president alerted the rank andfile of the union to be ready for any eventualitythat may warrant organisational actions toprotect our rights as well as the welfare of theinstitution from where we are earning our breadand butter.

It was the turn of our beloved General SecretaryCom.Vincent D’souza to address the members.He elaborately dealt with the developmentswithin the bank. Recollecting the history ofour union, he reminded the rank and file thatBangalore Zone and also to felicitate three of

our ex-office bearers who are retiring from theservices of the Bank. He recollected theservices rendered by the erstwhile JointSecretary Com.S V Prasad who took promotionfor his personal reasons. It was none otherthan Com.K B D Sharma who was a naturalchoice for the top leader of CBEU to besuggested for the vacancy. Com.WalterLasrado thanked the rank and file of Bangaloreunit for unanimously co-opting Com. Sharmaas Joint Secretary. The President wished thenew Joint Secretary all success in his futureendeavours and suggested the members tomake use of the services of the new leaderand reciprocate by strengthening his hands.Later, the President dealt elaborately about theongoing developments in the industry, aboutthe 10th Bi-partite and mainly about the

each and every benefit that we are enjoyingtoday is the result of the struggles and sacrificesof our past leaders and activists. Hecongratulated the members for taking the bankto the orbit of ‘Big Banks’ by crossing thebusiness figure of 3,00,000 crores as on31.12.2013. He prevailed upon the membersto further strengthen our bank by participating

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duties. Com.Vincent D’Souza congratulatedCom. KBD Sharma on his election as the JointSecretary of Bangalore Unit and alsorequested the members to strengthen the handsof the new Joint Secretary.

Both the leaders acknowledged the role playedby 3 comrades whom felicitations werearranged on their retirement from the servicesof the Bank, in building and strengthening thetrade union movement under the banner ofAIBEA .

Com. A N Suresh, General Secretary CBOA,who is treated as an affectionate big brotherof Bangalore zone vividly touched upon thecontributions of three stalwarts of Bangalorezone whom the Bangalore unit of CBEU/CBOAfelicitated on their retirements. Com.D.Jayasimha Rao the ex-Joint Secretary of ourunion retired on 28-02-2014. Com.K SVimala, our present EC member has sought forVRS under pension regulations and she will beretiring on 4th April 2014 and Com.H KRamesh, our officer comrade who also servedas an EC member of KPBEF will be retiring on

in all the campaigns. Our General Secretaryrecollected his efforts in the board for gettingnod for appointing large number of newrecruits in our bank. He requested that eachand every unit of our union should elect abranch secretary immediately so as tostrengthen our organisation with effectiverepresentatives at all levels. He called uponthe members to be vigilant about thehappenings around us while discharging our

reaching superannuation on 31-03-2014.Explaining in detail about the past activities ofthese three comrades in building the movementin Bangalore zone Com.A N Suresh placedon record the good work done by them. Therole played by Com.Vimala in organising thelady comrades was highlighted by all the

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DONATIONS

Name Branch AmountCom. Shrinivasa Shenoy H.O., Mangalore 2,500/-Com. Sujitha Raj H.O., Mangalore 2,500/-Com. Sumith Shenoy H.O., Mangalore 2,500/-Com. Prajwal H.O., Mangalore 2,500/-Com. Neesha M. H.O., Mangalore 2,500/-Com. Swaroop Kumar Currency Chest, Mangalore 2,500/-Com. Santosh Kumar P. Alangar 3,000/-Com. Minal M. Vernekar Tonca Panjim 1,500/-Com. Nityanand Tambrennavar Dharwad 1,001/-Com. Chandra Shekhar Huvanur Dharwad 1,001/-Com. Netra H. Karki Sirsi 5,000/-Com. Kamala A. Prabhu Ambalpady 5,000/-Com. H. Krishnanand Pai Doopadakatte 5,000/-Com. B. Shiv Prasad Mulky 1,000/-Com. Mamatha Kotian S. H.O., Mangalore 1,000/-Com. Dharmesh Tondur Aurangabad 1,000/-

leaders. The three comrades were befittinglyfelicitated by our President and Generalsecretary accompanied by all the office bearersand EC members of Bangalore unit. The officebearers of CBOA also felicitated the threecomrades. While replying, Com.Vimalathanked the rank and file and also theleadership for all the support they have givento her in discharging her responsibilities. Shespecially mentioned about the support shereceived from Com.C Bharathy, our officercomrade and erstwhile lady representative tothe committee of CBEU. She termedCom.Bharathy as her friend, philosopher andguide. All the comrades attended the meetingwished the three comrades a very happy,contented active life after retirement.

Com. Lingappa, Sub-staff Representative;Com.Ranga, SC/ST Representative; Com.

Rajendra, E.C. Member and Com. RS Sumathi,Lady Representative helped the Joint Secretaryand Asst. Secretary in the successful conductof the meeting.

The programme was very effectively comperedby Com. Shobha Deshpande, working inBangalore-Rajajinagar branch. With Vote ofThanks by Com. RS Sumathi, our LadyRepresentative to the committee, the meetingconcluded with a happy note.