Odisha Gramya Bank Employees Association(OGBEA)
Workmen Unit Of AIRRBEA
Affiliated to NFRRBE & AOGBEF
Regd No:SBP291

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HISTORY OF AIRRBEA

RRBs started their journey on 02-10-1975 when 5 (five) Regional Rural Banks (popularly known as Grameena Banks) were established on that date through promulgation of an Ordinance. The Ordinance was replaced in February 1976 when the Regional Rural Banks Act, 1976 (21 of 1976) was passed in the Parliament.

As per provisions of the Act, ownership of these banks is shared by the central government (50%), concerned State Governments (15%) and the rest (35%) by the respective sponsor Banks, which are mostly the public sector banks. Objective of establishment of these banks was to cater to the needs of the poor people in the villages and also to create employment opportunities. The planners sought to combine the local feel and familiarity of the co-operative system and the professional competence of the commercial banks by bringing up this new set of banks exclusively for the poor people in the matter of catering to the credit needs in the rural areas.

Total number of RRBs reached to 196 by the end of 1987 as the policy makers conceived the RRBs as district level banks, though many of them had more than one district as the area of operation. Presently due to amalgamation, number of RRBs has come down from 196 to 43 only with total number of branches of around 22, 000 with total customer base of more than 40 crores mostly in rural areas of the country. Number of Sponsor Banks is 12.

History of RRB and history of AIRRBEA is very much linked with the live activities of Com Dilip Kumar Mukherjee for obvious reasons as will be evident from the following pages. 

Recruitment in RRBs, 5 in number, (Prathama Gramin Bank/ Gorakhpur Kshetriya Gramin Bank / Haryana Kshetriya Gramin Bank / Jaipur Nagar Anchalik Gramin Bank / Gour Gramin Bank) (established on 02-10-1975) and others (opened subsequently), started in 1976, though to start with staff members of the sponsor banks were also deployed in the RRBs on deputation.

No Service Rule was there for the RRB staff, there was no post of Messenger, pay scales of employees were tagged with those in respective State Governments, and the banks were being run at the whims of some deputed officers in the management posts.

Dada Mukherjee (Com Dilip Kumar Mukherjee) joined in GGB (Gour Gramin Bank) in West Bengal as Branch Manager in April, 1976. Now the name of amalgamated bank is Bangiya Gramin Vikash Bank wherein erstwhile GGB is the constituent.

In mid 1977, Dada Mukherjee and some other officers (BMs) from various parts of the country were sent to the Training Centre of Reserve Bank of India (RBI), Pune, Maharashtra. At that point of time College of Agricultural Banking (CAB – RBI), Training Centre for RRB officers at Pune was not only the birth place but also the growth centre for AIRRBEA

Later on, BIRD (NABARD) at Lucknow also became the breeding centre of the units of AIRRBEA. The trainees took the major responsibility for the formation of Association and increase the membership of AIRRBEA under the leadership of Com D K Mukherjee and some others.  

Around this period of time there was :-

  1. No scope to know each other in different RRBs of different states excepting when they were sent on Training at RBI Training Centre, Pune.  

  2. Very limited service area of the RRB – 1 or 2 districts. 

  3. All new comers – fresh from college/university having no TU background. 

  4. No idea about T.U. or Banking Sector caused lack of collective thinking.

  5. No Service Rules, even no confirmation of the service up to 1980 in RRBs for their staff.

  6. Fear amongst employees/officers to form any Association of RRB staff.

Some positive features were :-

    • Young persons joining RRB from the same district/State had courage to face management attacks.

    • With very low level of service/financial benefits in comparison to bank employees created atmosphere to fight against injustice.

    • Some Officers joined RRB mainly in Eastern & N.E. Region after their experience in State Govt. jobs at the age group of 35 – 40 years. So, they had some knowledge of service conditions, right of employees etc. which were denied to RRB staff.   

    • Com D.K. Mukherjee had his experience of T.U. in LICI & State Govt. (1958 - March, 1976). His continuous contact, communication and mobility helped formation and growth of associations in RRBs. 

    • Left Front Govt. in WB/Kerala/Tripura etc. helped growth of TUs around that time.

    • Due to involvement of majority association in RBI with Com Asish Sen as its leader, easy rapport with RBI/NABARD officials/management was possible.

    • A sincere & mobile core group could be formed in some States that helped much to move forward under the leadership of Com. D K Mukherjee and some other dedicated leaders like Com Ajit Ghosh, late Com Pinaki Pratim Deb, Com PSM Rao, Com Mahendra Singh, Com S N Singh, Com Ganapathy Hegde, Venkateshwar Reddy and also some others.

    • AIRRBEA being the first and only apex organization for all cadres from 1978 to 1982 had the opportunity to approach all cadres of staff to form Union/ Association.

    •  Major players in Banking Industry as TU had come to the RRB sector as follows –

    1. AIBEA formed TU in RRB in 1983 

    2. AIBOC formed their unit in RRB in 1987 –

    3. NOBW though came in 1982 to the RRB sector, it was a minor player in Banking Industry.

    4. BEFI was born in 1982. 

AIRRBEA units took the advantage of State Level Coordinating Body and later SLF/SLCRC at under the Chairmanship of Lead Bank/NABARD where all the staff matters at the State Level were discussed.  

At the National level, a Committee for RRB & staff matters under the Chairmanship of Deputy Governor, RBI was there. R.P.C.D, RBI used to look after the RRB matters up to 1984. 

Some historic events at the initial stage of the AIRRBEA

AIRRBEA formed both National & State Level committees along with RRB level bodies since inception.

First conference of AIRRBEA held at Cannanore, Kerala on 1st & 2nd March, 1980 elected

  1. Com Ashis Sen as President (continued from 1978 to 26th January, 2003 i.e. (Bishnupur) WB Conference.

  2. Com DK Mukherjee – as General Secretary (continued till his death on 31-03-2013 as Secretary General from 2010)

  3. Com. Ajit Kumar Ghosh as Tresurer, continued till 1981 Conference held at Bilaspur when he became Vice- President, AIRRBEA and continued as such up to 2003 when he became President. 

 

First Charter of demand of the AIRRBEA prepared by – Com Ashis Sen, Com Ajit Ghosh and Com D K Mukherjee (1980) 

First Constitution Amendment (Draft) by – Com Ajit Ghosh (1980)

First General Council Meeting – Patna, 18-01-1981

First strike observed by the AIRRBEA – 27th June, 1980

First Dharna organized by the AIRRBEA at New Delhi – 02-10-1980

First memorandum to Hon’ble Prime Minister of India was prepared by –

 i. Com Ashis Sen  ii. Com Ajit Ghosh  iii. Com Sayeed Khan

  • First Deputation to Prime Minister, GOI at New Delhi – 02-10-1980 

  • First Deputation to Hon’ble Finance Minister, GOI & Hon’ble Labour Minister, G.O.I – 03-10-1980

  • First series of AIRRBEA agitational programmers-15-05-1980 to 02-10-1980

  • First case filed by AIRRBEA in Supreme Court praying “equal pay for equal job” on 03-02-1984 (filed in 1983 through G S Kaushik an officer of the then Gurgaon Gramin Bank along with AIRRBEA as petitioner)

  • Second Dharna at New Delhi – 27-03-1981

  • First series of Achievements of the AIRRBEA agitation programmes – 

Right for Recognition of T.U. (27-12-1980), 

Right for bonus (15-10-1980) 

Officiating allowance (22-12-1980) 

Confirmation of staff (09-12-1980) 

Remote place allowance (5-11-1980) etc.

First conference of AIRRBEA held at Cannanore, Kerala on 1st & 2nd March, 1980 elected

  1. Com Ashis Sen as President (continued from 1978 to 26th January, 2003 i.e. (Bishnupur) WB Conference.
  2. Com DK Mukherjee – as General Secretary (continued till his death on 31-03-2013 as Secretary General from 2010)
  3. Com. Ajit Kumar Ghosh as Tresurer, continued till 1981 Conference held at Bilaspur when he became Vice- President, AIRRBEA and continued as such up to 2003 when he became President. 

 

First Charter of demand of the AIRRBEA prepared by – Com Ashis Sen, Com Ajit Ghosh and Com D K Mukherjee (1980) 

First Constitution Amendment (Draft) by – Com Ajit Ghosh (1980)

First General Council Meeting – Patna, 18-01-1981

First strike observed by the AIRRBEA – 27th June, 1980

First Dharna organized by the AIRRBEA at New Delhi – 02-10-1980

First memorandum to Hon’ble Prime Minister of India was prepared by –

Com Ashis Sen  ii. Com Ajit Ghosh  iii. Com Sayeed Khan

First Deputation to Prime Minister, GOI at New Delhi – 02-10-1980 

First Deputation to Hon’ble Finance Minister, GOI & Hon’ble Labour Minister, G.O.I – 03-10-1980

First series of AIRRBEA agitational programmers-15-05-1980 to 02-10-1980

First case filed by AIRRBEA in Supreme Court praying “equal pay for equal job” on 03-02-1984 (filed in 1983 through G S Kaushik an officer of the then Gurgaon Gramin Bank along with AIRRBEA as petitioner)

Second Dharna at New Delhi – 27-03-1981

First series of Achievements of the AIRRBEA agitation programmes – 

Right for Recognition of T.U. (27-12-1980), 

Right for bonus (15-10-1980) 

Officiating allowance (22-12-1980) 

Confirmation of staff (09-12-1980) 

Remote place allowance (5-11-1980) etc.

Representative capacity of the AIRRBEA was upheld by the Supreme Court first in 1984 (17-09-1984), then again in 1996 (12-04-1996) and again on 31-01-2001.

 

  1. 1st Supreme Court Order on 01-09-1987 (in the WP filed on 03.04.1984.) – Direction to GOI to constitute the NIT (National Industrial Tribunal) under the Chairmanship of Chief Justice (retired) of a High Court. It was constituted by the GOI under the Chairmanship of Justice S Obul Reddy, Chief Justice of AP High Court (Retd), Hyderabad, vide GOI notification dated 25.11.1987 
  2. NIT Award pronounced by Justice Obul Reddy on 30-04-1990 at Taramandal Complex, Hyderabad, AP, directing Parity of wage Structure - Historic victory of the AIRRBEA under active participation of its A P State Federation under leadership of Com PSM Rao, Com S Venkateshwar Reddy, and other leaders of AP/Karnataka/WB/Kerala Federations etc.
  3. 2nd Supreme Court directing GOI on 12-04-1996 to allow arrear & other benefits out of implementation of the NIT Award vide GOI order dated 22.02.1991.
  4. 3rd Supreme Court directions  came on 31-01-2001 in the matter of allowing parity and extension of 6th and 7th Bipartite pay scales and other benefits, as the same was held up by the GOI on the plea that effect of NIT Award was not continuous, and so Mahalik Committee was formed to frame separate pay scales etc.
  5. 4th Supreme Court   direction on 07-03-2002 in the matter of contempt petition filed by AIRRBEA, finally rejecting plea of profit/loss while granting parity. 

Pay parity for RRB Staff substantiated on 30-04-1990 – through the Award of the NIT.

  1. First Government order on Pay parity and equation of posts – GOI order dt. 22-02-1991 as per NIT Award dated 30.04.1990. 

  2. First NABARD’s order on details of Pay parity on 20-03-1993 – based on RC Gupta Committee report

  3. First GOI order for regularization of part-time messengers – 08-10-1984

  4. Second GOI order for regularization of part-time messengers – 04-10-1988

  5. Comprehensive order on regularization of part-time messengers – 22-02-1991 & 20-03-1993 by the GOI and Nabard respectively.

  6. First Service Rule introduced in RRB for all categories of staff – 13th May, 1980

  7. Service Rules for RRB Staff notified after amendment by GOI on 15-09-2000

  8. Latest Service Rules as notified by GOI – 25-06-2010

  9. First Promotion Rule in RRB notified by GOI – 28-09-1988

  10. Second promotion rule notified by GOI – 29-07-1998

  11. Latest and existing promotion rule notified by GOI – 13-07-2010 

  1. S.C. Mahalik Committee appointed by GOI – November, 1996 - to delink RRB staff from Wage structure of Banking Industry.

  2. S.C. Mahalik Committee Report – May, 1997 - to delink RRB staff from Wage structure of Banking Industry.

  3. Karnataka High Court order on 11-11-1998 – rejecting Mahalik Committee and to uphold Parity.

  4. Kerala High Court W.P. no. OP no.1871/1997 (SMGB) – to uphold parity of Salary Structure at 6th Bipartite Settlement, filed by our SMGB units. 

  5. Kerala High Court Division Bench order on 25-11-1998 - to uphold parity at 6th Bipartite – great victory of the AIRRBEA.

  1. Pension Parity case of AIRRBEA (with Computer Increment) before Karnataka High court – WP No. 20034 of 2003 filed by our Karnataka State Federation under leadership of Com Ganapathi Hegde and Com H Nagbhusan Rao.

  2. NABARD’s Transfer Petition for all Pension cases in different High Courts to Supreme Court - TP No.211 of 2009.

  3. Supreme Court rejected the NABARD’s Petition on 26-08-2010 and sent back the cases to respective High Courts. 

  4. Pension Parity Case in Karnataka High Court order on – 22-03-2011 (D.B order – 31-01-2014) – great legal victory of the AIRRBEA under aegis of our Karnataka State Federation.

  5. Pension Parity Case Rajasthan High Court order on – 15-09-2011.

  6. Pension Case Rajasthan High Court Division Bench order on – 23-08-2012

  7. GOI filed SLP before the Hon’ble Supreme Court no.39288 of 2012 against the above DB order dated 23-08-2012 of the Rajasthan High court. (More details are furnished at the later part of this write up)

Amalgamation of RRBs – Total number of RRBs has come down from 196 (in 1987) to 56 (in April, 2014) -

  1. First Phase started in September 2005 – Sponsor Bank wise within a State – as per Prof V S Vyas Committee Report of 2004

  2. Second phase (partly) – October 2012 – Across the Sponsor Banks within the State, but not yet delinked from Sponsor Banks, yet to bring state level RRB under Holding Company of SBI and NABARD.

  1. ​

Organisational revamping ​

AIRRBEA formed two separate wings from its 11th Conference held at Sikar, Rajasthan on 20-22nd February, 2010 –

-  NFRRBO (National Federation of RRB Officers)

-  NFRRBE (National Federation of RRB Employees)

 

AIRRBEA is now (after Sikar Conference) coordinating body of NFRRBO (National Federation of RRB Officers) and NFRRBE (National Federation of RRB Employees) and as per Constitution, Secretary General, AIRRBEA is ex-officio Chairman of both NFRRBO and NFRRBE. 

 

Both NFRRBE and NFRRBO represent the overwhelming majority of employees and officers respectively in the RRB sector. 

 

AIRRBEA has formed National Federation of Retired RRB Staff (NFRRRBS) from the first National Conference of the NFRRRBS held at Hyderabad on 11.02.2018 (earlier General Council Meeting held at Amritsar on 31-10-2015 and 01-11-2015 formed an Ad hoc Committee  for the retired staff members across the country now numbering about 30.000).


 

Coming to little details pertaining to the history of the RRBs and the AIRRBEA:-

 

As mentioned hereinabove, the idea of promoting All India Association of RRB employees was conceived by a handful of enterprising branch managers of RRBs under the leadership of our beloved Com Dada Mukherjee, who had assembled at the College of Agricultural Banking of the RBI at Pune for undergoing a training course there. It was on 1st August, 1977 when an ad-hoc committee was formed with Dilip Kumar Mukherjee as General Secretary. After hectic organizational works for a few months the AIRRBEA took its birth in the Inaugural Conference held at Bhubaneswar on May 27-28, 1978. 

 

The AIRRBEA actually came to light in its first General Conference held at Cananore, Kerala. Even when in its cradle in the year 1980 the AIRRBEA was clear in its vision and concepts. Its distinct goal was to protect and promote the service conditions and salary structure of its members, and simultaneously to build up close affinity with the downtrodden people in the rural society by fully harnessing the unique opportunity to serve them with separate ethos blended with compassion and consciousness as well as different credit products of the RRBs. 

 

With the advent of mass banking scenario backed up by different poverty alleviation schemes, dovetailed with government subsidy and bank loans from the early eighties, RRBs assumed a pioneering role to implement those rural development programmes in consultation with the elected Panchayat and State functionaries in all parts of the country. RRBs alone negotiated around 43% of the then Government scheme of IRDP and other poverty alleviation cases, organized around 48% of total number of self help groups (SHGs) mostly of women and initiated over 50% of the Farmer’s Clubs under the NABARD scheme. 

 

The vision and the concept of the AIRRBEA were manifest amply even in its first Charter of Demands adopted at Cannanore in February, 1980. The salient features of the demands were:-

 

  1. Equal Pay for equal job (at par with Sponsor Banks and not as per State Govt. Rules as were made applicable at that time.)

  2. Comprehensive Service Rules for officers and employees.

  3. Creation of posts of Messengers for all branches and offices of RRBs. 

  4. Rural Bank for Rural India.

  5. Simplification of lending rules and banking norms and procedures to suit the needs of the poor rural masses. 

  6. Waiver of collateral security for all loans up to Rs.5000/-.

 

The AIRRBEA came out as a vibrant organization and also became an inseparable part of the struggles and movements, both Industry specific and in respect of united action of the working class in the Banking Industry and in the country as a whole. 

The first Rally and Dharna of the AIRRBEA at Delhi was held on October 2, 1980, when over 500 RRB staff from different parts of the country paraded through the street of the Capital to hand over a Memorandum to the then Prime Minister, Smt. Indira Gandhi. The first achievement to come was publication of the RRB Staff Service Regulation in 1980 in a composite way for officers and workmen employees.

 

Fight for Parity: -

On 03.04.1984, the AIRRBEA filed a Writ Petition in the Supreme Court of India demanding salary benefits at par with commercial bank employees, and after a strong challenge from the Govt. of India over the representative capacity of the AIRRBEA for all cadres of staff the Court finally admitted the petition on 17th September 1984.

While Regional Rural Banks were being used as the vehicles for development of rural sectors, the employees were under severe hardship because of policies of the government. This was effectively put forward before the Supreme Court and finally the Court directed the GOI in its order on 01-09-1987 to set up the NIT (National Industrial Tribunal) to deal the whole matter of demand of equal pay for equal job.

Under the leadership of AIRRBEA, employees of the Rural Banks all over the country had been agitating since 1980s on the demand of (1) equal pay for equal work – uniformity in wages and service conditions, (2) regularization of messengers on daily wage (3) promotional opportunities for all (4) negotiating forum in the Apex and State level. 

All these issues were taken before the NIT which was formed on 25-11-1987 under the Chairmanship of Justice Obul Reddy, Hon’ble Retired Chief Justice of the Andhra Pradesh High Court.

After nearly 2 years of serious deliberations before it, the laborious task undertaken by the AIRRBEA, representing nearly 80% of the total employees in all categories covering officers, managers down to sweepers was crowned with success in the teeth of stiff opposition from the Central Govt., RBI, NABARD and several Sponsor  Banks. 

As per award delivered on 30th April 1990, employees and officers of Gramin Banks became entitled to get the same pay and allowances and other benefits as their counterparts in Sponsor Banks, effective from 01.09.1987. Sub Staff employees also became regularized from the date of their employment. 

​But the Government adopted a delaying tactics compelling the employees to give a call for one day token Strike in the 3rd week of January,1991, with the demand of parity of salary and pay fitment corresponding to Sponsor Bank’s staff. Government’s half hearted implementation of the NIT Award and Equation Committee’s report vide order dated 22-02-1991 denying the accruing benefits for the period between 01.09.1987 and 31.01.1991 caused further unrest. The dues of the employees ran to some Rs.275 crores. Further, in spite of clear direction of the Tribunal, Part Time Messengers had not been regularized for a long period. The employees were deprived of computer increment from 01.11.1993. 

​Further legal fights revolved mainly around proper implementation of the Award and also in defense of the benefits flowing from the Award. The AIRRBEA had to take resort to appeal before the Hon’ble Supreme Court twice (after the Award in 1990) for implementation of Industry wise Wage Settlement and protection of parity. 

​With an evil design to undo the benefits of parity the Govt. of India appointed in November 1996 the S.C. Mohalik Committee to re determine the salary structure of RRB employees. 

​The Mahalik Committee came out with a report in May 1997 to introduce a separate structure of pay for RRB staff so that they could be delinked from the industry-wise settlements. While some of other All India Associations of RRB employees put up deputation to the Committee with an attitude of collaboration, the AIRRBEA firmly boycotted it and even challenged its authority in the Karnataka High Court.

Ultimately the Court was pleased to quash the Mahalik Committee and the right to parity was defended on 11.11.1998. Amidst a plethora of Trade Union actions in different RRBs in the nook and corner of this vast country the most glorious one stands out to be movements of the Coordination Committee of the South Malabar Gramin Bank Unit for implementation of the 6th Bipartite Settlement. Besides some token one day strike, the unit observed their 23 days strike at a stretch and then 14 days hunger strike in 1995 – 1996. 

And in the legal front also, the units of the then SMGB (South Malabar Gramin Bank) in Kerala came out in flying colors in the High Court of Kerala and then in the Supreme Court in the matter of implementation of the Bipartite Settlements having all India ramifications.

The 8th and 9th Bipartite Settlement benefits could be broadly implemented in the RRBs through organizational effort only, i.e. without resorting to appeal before the Court of law. But the relevant orders were full of incogniton, anomalies and deprivations, and programmes of organizational movements including strike had been chalked out. 

The glaring disparity stood out to be the absence of any pension benefit for RRB staff at par with the scheme of the commercial Banks. Legal actions were initiated in Karnataka High Court against the flagrant violation of the NIT Award. The order of Hon’ble Karnataka High Court came on 22-03-2011 directing the GOI to give effect to the Pension Parity, which may be found in subsequent pages. 

 

Restructuring of RRBs:- 

In the memorandum submitted to Narasimham Committee in 1991-92, it was suggested by the AIRRBEA that rural credit system must be strengthened enough for the entire rural masses and the separate identity of RRBs must be retained. AIRRBEA had been demanding for setting up of National Rural Bank with the amalgamation of 196 rural banks in the State level institutions to meet the needs of rural priority sector under one single Central Federal Body to supervise them.

The Parliamentary Standing Committee for Finance unanimously recommended in December 1993 and again in 2003 for formation of a National Rural Bank or Zonal Rural Banks under a Central canopy. So was the case when the Finance Minister met earlier in October 1993 the MPs belonging to all political parties. But suddenly the Finance Minister spoke of revamping only 100 RRBs in 1993-1994. 

 

During the period from mid 1995 to end 1996 the AIRRBEA launched series of programmes, some State based, some regional and some central, including All India Strike actions on their demand of (1) Continuity of parity of wages with the employees of commercial banks (2) Establishment of a National Rural Bank of India and (3) Parity of retiral benefits with the commercial bank employees.

 

By this time Mahalik Committee recommendation on wages etc in RRBs also added fuel to fire. AIRRBEA and most of the unions boycotted the Mahalik committee though all the unions rejected the report of the committee.

 

In February 1997, AIRRBEA had most of the other organizations with it in launching a joint struggle demanding implementation of the 6th Bipartite Settlement of 14.02.1995 and the Joint Note of 23.06.1995 signed between IBA and the Workmen Unions and also between IBA and officers’ organizations to RRBs. One day strike was also observed jointly. 

 

Following formation of UFBU in the banking industry in 1997, a similar platform for joint movement was established in the RRB sector also with AIRRBEA and five other unions. But the BMS followers did not join it although their counter parts in commercial banks were in the UFBU. The United Forum of Regional Rural Bank Unions (UFRRBU) carried on a series of agitational programmes and joined the UFBU in the strike action of 04.07.1997 and 28-29.08.1997 demanding (1)Implementation of the 6th Bipartite Settlement/Joint Note to the RRBs and (2)Abandonment of the Government’s decision to permit the private sector to establish Local Area Banks (LABs).

 

The decision of the Government to permit LABs (Local Area Banks) was taken by the RRB employees as well as by the commercial and the co-operative bank employees as a great threat to mass banking and security of jobs of the employees. The other demands included were parity of retiral benefits with the commercial bank employees and establishment of All India Bipartite Forum for RRB Employees. Establishment of LABs was stopped, at least for the time being.

 

Infamous Chalapati Rao Committee report ( 26th June, 2002 )-

 

Mention may be made of a wide range of agitation programme observed by AIRRBEA units against the report of Chalapati Rao Committee, which recommended, amongst others, gradation of RRBs on the basis of financial health and suggested privatization of RRBs.

 

The common movement of UFBU and UFRRBU had some impact on the government’s thinking in relation of Mahalik Committee. The main impact was, however, cast by the judgment by the Kerala High Count and the Karnataka High Court in the cases filed before them, by one of the units of AIRRBEA and other by AIRRBEA direct. 

 

The Hon’ble courts held that, with the implementation of NIT Award in the RRBs by the government in exercise of the power conferred to it by the RRBs Act, 1976, reflection of periodical revisions in the wages of the sponsor banks employees on the wages of RRBs employees had become an irrevocable principle.

 

Privatisation Bill for RRBs:         

It may be noted that at the fag end of the UPA II regime, the Finance Minister Sri P. Chidambaram placed a bill to the Parliament on 22.04.2013 intending amendment of the RRBs Act, 1976, providing for dilution of ownership of the RRBs and to allow private share in the capital base of the RRBs, and other related provisions to implement the proposal.

This was strongly objected to by the AIRRBEA and all other unions in the RRB sector as also by the UFBU in the Banking Industry. The Bill placed was referred to the Parliamentary Standing Committee on Finance, and the same could not see the light before expiry of the 16th Lok Sabha. Thus the matter ended for the time being. However it was revived by the NDA Government and almost similar Bill was placed in the Lok Sabha by Sri Arun Jaitley, Union Finance Minister on 22-12-2014. And it was finally passed by the Rajya Sabha in March, 2015. The President of India has also given his assent to the Bill. Now this remains a big threat not only to RRB staff, but also to the work force in Banking Industry.    

 

Legal Battle of the AIRRBEA 

It may be observed that history of the struggles of the AIRRBEA is replete with legal battles also throughout its long existence and advancement, and so it will be unjust to conclude this write up without mention of land mark events of legal battles carried by the AIRRBEA for the cause of RRB staff. 

Most of the retired friends and hundreds of those who are at the fag end of their service in the RRB sector, are very much agitated and anxious on the fate of final outcome of SLP (C) No. 39288 of 2012 filed by the DFS, MOF, Government of India against the final judgement and order dated 23.08.2012 passed by the Hon’ble High Court of judicature for Rajasthan at Jodhpur in DB Civil Special Appeal (W) no. 2021 of 2011. Incidentally this civil special appeal was also filed by the DFS, MOF, GOI against the order of the single Bench of the said Hon’ble Court, Jodhpur dated 15-09-2011 in the WP No. 4366 of 2005 filed by Gramin Bank Pensioners Samity and Krishna Pareek (Vs  Union of India), where AIRRBEA was allowed to participate as impleading petitioner.

The AIRRBEA leadership had to play the leading role with engagement of Senior Lawyer and putting the entire matter of arguments as was done in the matter of WP filed by the AIRRBEA before the Karnataka High Court and disposed of by the Hon’ble Single Bench on 22.03.2011 in WP No.20034/2003.

We recall with deep sense of gratitude and respect the contribution and the strong conviction of our beloved deceased leader Dilip Kumar Mukherjee and his close team, Com Ajit Ghosh and other leaders from various States, about the victory on the subject matter of parity of wage structure. Mention may be made here of the effective role of the team of legal matters like Com PSM Rao, Com R G Nargund, Com Venkateswar Reddy, Com Ganapathi Hegde, Com Nag Bhushan Rao, Com K G Madanan, Com H N Barman, Com Anadi Mahato and other leaders of Andhra Pradesh/Karnataka/Kerala/West Bengal State Federations, who had contributed their dedicated service/involvement in respective Hon’ble High Courts and before the NIT/Supreme Court.

We shall be failing in our duties if we do not recall the invaluable advice and sterling performance of our NIT Advocate late KG Kannabiran under whose guidance and supervision our petition bearing no.1/88 before the NIT was prepared/finalised by Com Ajit Ghosh/Com PSM Rao and their team and the same was filed within the period stipulated by the National Industrial Tribunal (NIT), with its HQ at Hyderabad.  

Pension Parity case pending before the Hon’ble Supreme Court -

    

  1. SLP (C) No. 39288 of 2012 (arising from final judgement and order dated 23-08-2012 passed by the Hon’ble Rajasthan High Court at Jodhpur in DB Civil Special Appeal (W) No.2021 of 2011), was filed by the Government of India (DFS, MOF) to create confusion and to delay/deny the Pension Parity to RRB Staff.
  2.  
  3. WP (CIVIL) No. 210/2013 – SMGBOF & Ors... Vs...Union of India & another filed by the AIRRBEA unit in SMGB (Kerala) to ensure full participation of the AIRRBEA to protect the interest of RRB Staff while contesting the above said SLP filed by the GOI.

Following orders/dates before the Supreme Court are worth mentioning –

 

  1. On 18-02-2013, the Bench of Justice P Sathasivam & Justice J S Khehar passed the order to ISSUE NOTICE.

  2. On 26-04-2013, the Supreme Court tagged WP No.210 of 2013 (SMGBOF & other Vs Union of India) with SLP (C) No.39288/2012.

  3. On 20-05-2013 Hon’ble Court considered impleading petitions of the AIRRBEA & various other unions and allowed the same.

It may be recalled that the case was listed for 29th April 2014 after some time when the matter was listed twice by this time, but hearing could not take place, particularly after submission of the affidavit by the Government of India on 05-07-2013 stating that GOI is ready to implement the Pension Scheme with following stipulations :–

  1. For the present only profit making RRBs will be allowed to pay pension out of its profit utilizing only 25% of net profit and this amount should be more than 1/8th of the amortization amount for the corpus required for the RRB. Rest RRBs will be allowed only when they wipe out the accumulated loss and go by the above norm.

  2. Employees will have to contribute 30% of the total fund required for the RRB to implement the scheme

  3. Effective date of release of Pension will be 01-04-2012

The AIRRBEA did not accept the conditionalities, and the matter was referred to the Advocates for effective opposition and remedy.

AIRRBEA advocates approached the Hon'ble Chief Justice. For early hearing on priority basis. 

On 18th February, 2014 Hon’ble Chief Justice allowed the same and passed his order to that effect. Accordingly, the matter was listed in March, 2014, but it did not reach for hearing as the Hon’ble Justice J S Khehar did not sit for the Bench, and thereafter the case was not listed as the Bench headed by Hon'ble Justice Khehar was not sitting. 

The matter was listed at item no. 6 on 9th September, 2014 and it reached the Bench for hearing, but surprisingly the ASG of the GOI prayed for adjournment, which the Court allowed. Our case was listed for 28 October, 2014. After 3 days of hearing on different dates the Hon’ble Court passed the interim order on 26-11-2014, directing the Government of India to negotiate with the stake holders to reach to a negotiated settlement.  

It remains a fact that AIRRBEA is the only organization who went before Hon’ble Chief Justice twice for early hearing on priority basis and has been continuing with all seriousness to pursue the Pension Parity Case.

 

Karnataka High Court

  1. AIRRBEA filed the Writ Petition No. 20034/2003 with claim of Parity of Pension and other allowances including Computer Increment before the Karnataka High Court, Bangalore – judgement was delivered on 22.03.2011 directing the GOI to frame the scheme of Pension for RRB staff at par with the scheme available in Banking Industry and also to pay the Computer Increment as paid in Commercial Bank, in terms of Settlement dated 29.10.1993.
  2.  
  3. Writ Appeal Nos. 5674/2011 and 6824 – 25/2012 (S – RES) & Misc. W. 8169/2011 were filed by Union of India/others against the orders passed by the Single Bench of the Karnataka High Court in the Writ Petition No. 20034/2003 (S - Res) dated 22-03-2011.
  4.  
  5. Writ Appeal of the GOI was dismissed on 31-01-2014 by the Division Bench of the Hon’ble Mr. Justice N K Patil and Hon’ble Mrs. Justice Rathna Kala.
  6.  
  7. Government of India filed another appeal before the Hon’ble Karnataka High Court for restoration of their appeal as the same was dismissed on 31-01-2014 on technical grounds.

 

Highlighting events of the case in Karnataka High court: - 

In 2003, when all our efforts through negotiations on Parity of Pension with the GOI failed, the AIRRBEA leadership had no other alternative but to move the judiciary to get the relief and filed the WP stated above before the Karnataka High Court. Subsequently other apex organizations in RRBs and some individuals also moved other High Courts.

Historic Judgement in the High Court of Karnataka delivered on 22nd March, 

 2011 in the WP no. 20034 of 2003 (S-RES) – 

Between – i. AIRRBEA ii. KM Gurumurthy iii. Ganapati Hegde…..Petitioners

&

  1. Union of India ii. NABARD iii. Pragathi Grameena Bank …… Respondents 

In this case (WP No. 20034/2003), Hon’ble Court has stated in its Judgment that – 

 “hence the Respondents are directed to take steps to ensure that the modalities are worked out for a Pension Scheme in line with the Pension Scheme formulated for the employees of the Sponsor Banks in terms of the memorandum of the settlement dated 29-10-1993 at Annexure – E to the WP with such changes as would be appropriate and keeping in line with the present circumstances.”

Rank and file in the AIRRBEA remember the great contributions made by leadership of the Karnataka State Federation and the Senior Advocate Sri P S Raja Gopal and his associate Advocates.

​This judgement was challenged by the Government of India but the appeal has been dismissed on technical grounds as mentioned in the write up elsewhere

 It may be recalled that NABARD, Mumbai took all such Court cases filed before different High Courts by different associations and individuals to the Hon’ble Supreme Court for adjudication, but Hon’ble Supreme Court passed an order on 26-08-2010 refusing to admit all such cases and sent them back to the respective original High Courts. As such our case came back to Karnataka High Court and it came for final judgement on 22-03-2011 (The petition was heard and reserved on 08-03-2011 and judgement was delivered on 22-03-2011).

 Mention may be made that due to constant follow up and pressure created by the AIRRBEA, exemption was allowed to RRBs from the EPF & MP Act, 1952 subject to better Scheme of Pension to be made in RRBs as per provision of the said Act, vide Office Memorandum No. S – 35025/4/2011. SS.II, Ministry of Labour and Employment, Social Security, - II Section, dated 6th May, 2011. Such exemption has helped taking decision for “On Principle” Pension Parity by the Government of India at par with Commercial Bank employees.