Money & Banking

AKBEF says will take direct action if salary of CSB Bank employees is not revised

Our Bureau Mumbai | Updated on February 27, 2021

The All Kerala Bank Employees’ Federation (AKBEF) has urged the management of CSB Bank to immediately give effect to revision in wages, service conditions and payment of arrears to its employees in accordance with the 11th Bipartite Industry-wide Settlement.

In the event of delay in/denial of the implementation of the 11th Bipartite Settlement, the Federation will take direct action, including strikes, not only by the employees of CSB Bank, but also by the employees of all other Banks in Kerala under the banner of the All India Bank Employees’ Association, CD Josson, AKBEF General Secretary, said.

He observed that there were no valid reasons to delay/deny revision in wages, service conditions and payment of arrears in accordance with the 11th Bipartite Settlement for the employees of the CSB Bank.

Referring to the impressive growth in the Thrissur (Kerala) headquartered CSB Bank’s third quarter business, Josson emphasised that employees’ role in enhancing the goodwill of the Bank and expanding the business is very much evident. “It is the responsibility of any professional and progressive Management to acknowledge and recognise this efficient and productive role of the employees appropriately,” he said.

The Bank had 3,204 employees on its rolls as on March-end 2020. In the third quarter conference call with analysts’, CVR Rajendran, MD & CEO, CSB Bank, said, “Year on year head count has increased by 760, with CTC (cost-to-company) employees increasing by 997 and IBA (scale) employees reducing by 237. CTC employees now account for 59 per cent of the workforce.”

Rajendran then told the analysts that if the voluntary retirement scheme (VRS) is implemented and the 223 eligible clerical and sub-staff cadre opt for it, the Bank will have to make additional provision of around ₹80 crore in the next (fourth) quarter – around ₹12 crore on account of ex-gratia payment and rest on account of acceleration of retirement benefit payments.

“But in the subsequent years, we will be benefitted in the form of lower salary cost. Depending on the number of optees, the amount will vary. For each employee opting for VRS, we will be in a position to replace them with at least 3 employees,” he said.

Published on February 27, 2021

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