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- By Parinda News Bureau, April 10, 2006, 10:25 IST
Following is the text of the statement delivered by the Finance Minister Shri P. Chidambaram on the issue of SBI strike at a press briefing here today:
"Late last night, Government was informed that the talks between the Management and the Unions of SBI had stalled.
There are some basic issues involved in the negotiations which, unfortunately, have not yet been highlighted for the information of the public. These are:-
1. SBI's case is unique. It is only in SBI that the employees receive three retirement benefits. They are:
(i) Gratuity;
(ii) Provident Fund; and
(iii) Pension
Employees of other nationalized banks receive only two benefits: (i) Gratuity and (ii) Provident Fund or Pension. Similarly, employees of public sector enterprises receive only two benefits. Therefore, any comparison of retirement benefits between SBI employees and other employees must keep in mind the fact that SBI employees receive three retirement benefits. Any revision of the pension formula in the case of SBI should not give rise to competitive demands from employees of other nationalised banks or public sector enterprises.
2. The Pension formula applicable in the case of SBI employees had a ceiling between 1993 and 1999. In 1999, the ceiling was replaced by a cut off point. The cut off point continued after the settlements dated 27th March 2000 and 2nd June 2005 . Therefore, negotiations on the pension formula must include a suitable readjustment of the cut off point.
3. Under the present rules, the Management of SBI may contribute upto 10% of the pay and allowances of an employee to the pension fund. However, in recent years the Management has been contributing more than 10%. For example, in 2004-05, while the contribution of 10% would amount to Rs. 245 crore, the Management is reported to have contributed an additional sum of Rs 790 crore to the fund. Similarly, in 2005-06, the additional contribution is reported to be Rs 835 crore. Therefore, while determining the new pension formula, it is necessary to bear in mind the Rules as well as the capacity of the Management to contribute to the fund to sustain the payment of pension.
Government has advised both the Management and the Unions to negotiate keeping in mind the importance and relevance of the above principles. Since the talks had stalled last night, Government has called both the Management and the Unions to Delhi for talks. They are expected to reach Delhi later today. Senior officials of the Ministry of Finance will facilitate the talks. It is my hope that the talks will continue and a satisfactory agreement will be reached today.
Government will give its most sympathetic consideration to the proposals that will emerge out of the talks. At the same time, I wish to emphasize that Government has a duty to uphold the larger interest of the SBI and the interest of the public who are the ultimate owners of SBI.
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