Today's meeting of IBA-UFBU for 11th Bipartite Settlement

NEGOTIATING COMMITTEE MEETING on 29.09.2018 at IBA Office, Cuffe Parade, Mumbai.

On behalf of IBA, the following officials attended the meeting.

1. Shri. R K Thakkar, Chairman of Negotiating Committee

2. Shri. Shyam Srinivasan, CEO, Federal Bank

3. Shri. Rajkumar Rai G, CEO, UBI

4. Shri. Prashant Kumar, DMD, SBI.

IBA team made it clear to Unions that Banks are not in a capacity to pay more than 6% hike in wages. IBA did not go beyond 6% offer they made during last Negotiating Committee Meeting.

Shri. Prashant Kumar, DMD of SBI gave power point presentation on a New formula devised by IBA.

Accordingly, all member banks are to be categorised in three (3) categories, i.e., A,B,C.

Categorisation will be based on certain parameters as revealed by individual bank’s Balance-sheets.

IBA says they ‘Desire Shift’ in pay outs by Banks. The intent of IBA is to allow each Bank to pay its employees as per the Bank’s capacity to pay. For building the capacity to bear the load of payment to staff, the individual Banks will have to perform to a certain level.

Traditional Practice was:

1. Wage revision every 5 years based on industry level Bipartite settlement.

2. Wage revision is based on negotiations not strictly linked to Banks’ performance.

Proposed Approach Intended is :

Adding an element of performance linked compensation over and above the settled pay structure.

It will be calculated as under:

A. A performance Linked Compensation will be incorporated:

i. The value will be over and above the increment as agreed in the Bipartite Settlement.

ii. Will be computed annually after declaration of annual financial results.

B. Payable amount shall be CONTINGENT upon achievement of established performance criteria by the Banks every year.

C. Key metrics chosen for defining organisational performance on following parameters.

• Operating Profit

• Return on Assets

D. Payout rate to be related to performance based Tiering, on chosen metrics.

For the FY 2017-18 the categorisation comes as under:

Operating Profit wise

A. Indian Bank, Vijaya Bank

B. NO BANK

C. NO BANK

Return of Assets

A. Indian Bank, VijayaBank

B. SBI

C. Bank of Maharashtra, Bank of Baroda, Canara Bank

This new shocking proposal of IBA is not acceptable by any PSU banker.

As per the indications by merging DA as on 01.11.2016 the present basics will be constructed and then loading will be applied.

Since, the new approach is intended by IBA, we are going to study their proposal in detail and then react to it by way of circular. But our stand is *“NOT ACCEPTABLE. There should be Uniform Pay in all Banks.

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IBA elects new chairman & deputy chairman

The Indian Banks Association(IBA) has elected Punjab National Bank's managing director and chief executive, Sunil Mehta, as the new chairman for 2018-19.

The managing committee of the banking lobby has also elected Bank of India's managing director and chief executive, Dinbandhu Mohapatra, as the deputy chairman, an official release said today.

State Bank of India's chairman, Rajnish Kumar, and Federal Bank's managing director, Shyam Srinivasan, will continue as deputy chairmen of IBA, it added.

Madhav Nair, country head and chief executive, Mashreqbank PSC, has been elected as the Honorary Secretary of the association for 2018-19, the IBA said.

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RBI's new cash logistics norms might disrupt functioning of ATMs: IBA

The Indian Banks’ Association (IBA) has written to the Reserve Bank of India (RBI), seeking a relaxation of the deadline for cash logistics companies (CLC) to increase their net worth to Rs 1 billion. They have asked for relaxation to new transport and security parameters, which might push up interchange fee, a payment between banks for card-based transactions.

According to the RBI’s April 6 circular, CLCs, which take cash around the country, were supposed to increase their net worth to Rs 1 billion within 90 days. But, RBI Deputy Governor B P Kanungo has said this deadline should be staggered: CLCs should be able to reach the Rs 500-million mark by end-March 2019, and Rs 1 billion within another year.

The association of banks fears that the new standards could disrupt the functioning of automated teller machines (ATMs) in the country. 

In its letter, the IBA has pointed out that of the dozens of major CLCs in the county, only three — CMS, AGS, and Checkmate — currently have net worth of Rs1 billion. The rest of the companies need time to raise capital.

“Implementing the guidelines will create a situation where there would be very few players in the market and those would not be able to cater to the requirements of banks, even as it creates a monopoly,” the bankers’ body said. It added: “If the timelines are not extended, it may affect ATM operations. Cash loading will be affected.”

Other rules in the RBI circular ask for transport of cash only with four-wheelers that have tubeless tyres and multiple armed guards to vend it.

The IBA says if deadlines for adhering to these norms are not eased, the charges levied by CLCs will increase by 30-40 per cent for security alone. The per-transaction charge might increase by Rs 6 to Rs 10.

This might increase interchange fee, currently capped at Rs 15 per transaction.

Services such as the doorstep cash-delivery and pick-up, offered to senior citizens and small businesses, would also be affected.

On the issue of additional armed guards, the IBA has pointed that gun licences are hard to come by, and increasing the number of security personnel will be difficult.

A solution might be to link the number of armed guards to the amount of cash being transported rather than have the same number irrespective of the amount. What complicates matters is that during elections, armed guards are in short supply. It is also impractical that loaded cash vans be parked at police stations after sundown.

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AIBEA circular regarding Bipartite settlement talks with IBA

Click on right corner of PDF to view large

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See what IBA offers to bank staff in today meeting

Apex banking lobby Indian Banks Association (IBA) today offered to increase the wages of over three dozen bank employees by six percent, compared with the two percent hike offered earlier, bank unions said today. 

However, unions, under the banner of United Forum of Bank Unions (UFBU), rejected the offer again, but said they are open for further negotiations. 

"IBA improved the offer from two percent to six percent. UFBU has rejected the offer but have agreed to continue to negotiate," UFBU convener for Maharashtra, Devidas Tuljapurkar, said after the 13th round of wage negotiations with IBA today.  He said bank unions are demanding a 25 percent hike and the IBA has agreed to have fresh discussions on the issue by the end of August. 

Close to 37 banks, including public, private and foreign banks, have mandated the IBA to decide on wage hikes for their employees. The current wage revision is due from November 2017, after the 10th Bipartite Settlement ended in October 2017. 

In the 10th Bipartite wage settlement, which was signed in May 2015, for the period between November 2012 and October 2017, the IBA had offered a 15 percent hike. 

In the May 5 round of negotiations, the IBA had offered a meagre 2 percent wage hike. Banks unions did not accept the offer and went on a two-day strike starting May 30. Banks' management had justified the nominal hike citing huge losses incurred by in the past few quarters. 

However, bank unions said the fall in profit are on account of higher provisioning towards non-performing assets and the employees are not responsible for that. They also said that employees have been tirelessly working towards implementing various government schemes such as Jan Dhan, demonetisation, Mudra and Atal Pension Yojana, among others. 

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Six PSBs have given mandate to IBA to Settle 11th BPS up to Scale III only

Six Public Sector Banks have given their mandate to negotiate salary of all the employees of banks. The six banks which are State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), Indian Bank, Union Bank of India and Oriental Bank of Commerce have given conditional mandate to IBA to restrict negotiate up to Scale III or IV only.

Bank’s Union have shown their displeasure against the unconditional mandate of these banks. They have written to Department of Financial Services to relook the matter and lodged their protest against the bank’s management decision.

It’s difficult to say at this moment whether decision taken by banks are correct or not to settle salary only up to Scale III/IV in 11th Bipartite Settlement or not ?

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PM Modi calls for strict action against corrupt bankers

Prime Minister Narendra Modi last week called for “strict action” against bank officials who indulge in corruption, frauds or criminal conspiracy, according to the minutes of the meeting of the multi-modal platform PRAGATI (proactive governance and timely implementation), underlining the government’s zero tolerance for any such activity. 

The minutes of the June 27 meeting accessed by ET show that the PM issued these directions after conducting a review of issues regarding the banking sector with the Department of Financial Services (DoFS). 

A few days before this meeting, on June 21, the Indian Banks Association (IBA) had condemned the spate of arrests and charge sheets by investigative agencies in alleged bank fraud cases and at an emergency meeting on June 22 sought setting up of an independent committee and inclusion of a Reserve Bank of India official as part of it to scrutinise charges against the bankers. 

A senior official in the government, speaking on condition of anonymity, however said that the two developments — IBA’s complaints-cum-emergency meeting and the PM’s review meeting — were not linked. 

VG Kannan, IBA’s CEO and a former State Bank of India official had told on June 21that the association had already taken up the matter with the DoFS in Delhi and the Maharashtra government. 

The minutes of the PM’s monthly review meeting on various sectors of the government, held six days later, say, “Strict action should be taken against bank officials/officers involved in misbehaviour/harassment/fraud/criminal conspiracy/corruption etc.” 

The IBA had raised the red flag after Pune Police arrested five Bank of Maharashtra officials, including its CEO Ravindra Marathe, for allegedly colluding with a real estate developer to divert money and cheat shareholders. 

In January, former IDBI chairman Yogesh Agarwal and four executives were arrested in a case linked to fugitive liquor baron Vijay Mallya’s loan default. Several other officials of state-run banks face charges too. 

At the June 27 PRAGATI review meeting, the PM also directed the DoFS to fix a time limit for disposal of insurance claim under its various schemes such as the Pradhan Mantri Jivan Jyoti Bima Yojna and Pradhan Mantri Suraksha Bima Yojna. Nearly 5.4 crore people have enrolled in the first scheme and nearly 14 crore in the latter.

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Wage revision talks fail, bank unions threaten strike

Bank employees’ unions have rejected the 2% salary hike offer made by Indian Banks Association (IBA) and threatened to go on strike to press their demand.

Wage revision for Bank employees are due from 1 November 2017.

The initial offer of the IBA was meagre 2%, which was totally rejected by the constituents of the United Forum of Bank Unions, AIBOC general secretary D.T. Franco said in a statement.

UFBU comprises of 9 employees and officers union.

In the meeting held today IBA’s unjust offer of 2% was rejected by United Forum of Bank Unions, National Organisation of Bank Worker’s vice president Ashwani Rana said.

In the last wage revision IBA provided an increment of 15%. It has decided to send a detailed communication to the government immediately followed by a nationwide demonstration on 9 May 2018, All India Bank Officers’ Confederation (AIBOC) said.

It was also decided that unions will go for two-days strike if the government or IBA does not respond immediately, it said.

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BANK WAGE SETTLEMENT -DISCUSSIONS WITH IBA ON 14.11.2017

CIRCULAR TO UNITS 15.11.2017

Dear Comrades,

DISCUSSIONS WITH IBA ON 14.11.2017

One more round of discussions took place between IBA and our Workmen Unions yesterday i.e.14.11.2017 in IBA Office

We pointed out that considerable time has elapsed since commencement of the discussions in May, 2017 on our Charter of Demands, but so far IBA has not come forward with their offer on wage increase and hence demanded that the next meeting of the Full Negotiating Committee should be fixed up at the very earliest for this purpose.

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IBA invites bank unions for wage revision talks

The Indian Banks' Association (IBA) has invited the bank unions for initiating the negotiations for the next wage settlement in the banking industry.

Talks between IBA and the bank unions under the banner of United Forum of Bank Unions (UFBU) are to be held at Mumbai on May 2, according to C H Venkatachalam, General Secretary of the All India Bank Employees Association (AIBEA).

Rajeev Rishi, Chairman of IBA, will head the talks from the management side.

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