Bank unions reject IBA's wage hike offer in today's meeting- 11th Bipartite Settlement Updates

Bank employees unions on Thursday rejected Indian Banks Association’s (IBA) offer of 15 per cent hike in wages and decided to go ahead with two day strike beginning January 31, 2020.

IBA offered a 15 per cent hike in wages, a revision over previous offer of 12.5 per cent at bilateral meeting of bank and trade union representatives to avert agitation by bank employees.

C H Venkatachalam, general Secretary, All India Bank Employees’ Association (AIBEA), said banks have declined to consider demand for five days banking in week and merger of special allowance.

Banks, under aegis of IBA, have improved offer (15 per cent). But it not acceptable and United Forum of Bank Unions (UFBU) has decided to go ahead with proposed two-day strike (January 31 and February 01, 2020) he said.

Meanwhile IBA in a statement said in the meeting held today (on January 30, 2020), despite the revised offer of upto 19 per cent hike including performance linked incentive made from IBA side.

During discussions, IBA team explained the conditions of business, paying capacity of Banks and consistent efforts at providing various types of benefits to the employees. But Unions are pressing for some other demands which are not possible to accept, IBA said.

One such demand is for 5-day banking. It is known to all that the economy of the country is going through testing times.  Banks being the principal players in economic development, cannot afford to provide lesser number of working days for banking activities, IBA added.

United Forum of Bank Unions which consists of nine bank unions of employees and officers, viz. AIBEA, AIBOC, NCBE, AIBOA, BEFI, INBEF, INBOC, NOBW and NOBO, has given the call for agitational programmes including strike actions.

Unions have also planned a three-day strike from March 11, followed by an indefinite strike from April 01, 2020.

Some of the major demands include Wage Revision Settlement at 20 per cent hike on Pay slip components with adequate loading thereof, Scrapping of New Pension Scheme(NPS), Updation of Pension and Improvement in Family Pension.

For the convenience of the customers, Banks will keep alternative channels available and customers can utilise these alternate/digital channels of banking 24x7 for day to day banking.

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Updates of today's meeting of 11th Bipartite Settlement

IBA team was led by IBA Chairman Mr. Rajnish Kumar, who is Chairman of SBI.

The following discussion took place :

1. Revised Offer : The offer for hike in Fixed Pay was enhanced from 12% to 12.25 % on pay slip. This offer is with 2% loading. "In view of overall difficult financial condition of Banks, it is not possible to go beyond this offer," was made clear by IBA. 

2. Special Allowance : Due to extra financial burden IBA refused the Demand for Merger of Spl Allowance with Basic.

3. Five Day Week : IBA flatly refused this Demand raised once again.

4. PL Encashment : At present PL can be encashed (i) on retirement (ii) while availing LFC.

A NEW channel for PL Encashment will be introduced. Employees can encash 5 days' PL every year against available balance.

As special case, those employees having less than 5 years' remaining service, shall be able to encash 7 day PL every year against balance available. 

5. Family Pension : IBA is working on enhancing it. They have accepted that it is not adequate.

6. Pension : For enhancement, cost factor is prohibitive. IBA is working on it. But they have not committed anything in this regard.

7. Performance Linked Incentive (PLI) :

As per suggestions made by Unions IBA came out with Revised Offer as under : 

It is payable on year on year increase in Operating Profit.

(A) If Operating Profit increase is between 5 to 10 %, the Incentive will be 2.75 % which equals 10 days' salary.

(B) if Operating Profit increases by 10 to 15 %, the Incentive will be 3.84 % which equals 14 days' salary.

(C) if Operating Profit increases by 15% & above, Incentive will be 5.75 % which equals 21 days' salary.

(D) For those Banks which could not register NET PROFIT, but it's Operating Profit increase is above 5% : the PLI will be @ 2.75% or 10 Days' salary.

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Next meeting of Bipartite Settlement for bankers on 13th Jan

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Updates of meeting between IBA and UFBU on 18th Oct 2019

In today's talks with IBA, the Bankers' Union had raised the following issues for taking decision :

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1. Early settlement, 

2. Increase in their existing offer

3. Merger of special allowance into basic pay, 

4. 5 day a week working 

5. Improvement in family pension

6. Updation of pension

7. NPS at 14%

8. PLI - Performance Linked Incentive, modalities

9. Reduction in premium on medical insurance for retirees

Sec UFBU has informed that it was decided to clinch these issues at the earliest. Detailed circular follows.

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Bank unions revise demands, to seek pay rise of 20% at IBA talks

The United Forum of Bank Unions (UBFU) has said it will seek a 20 per cent pay hike when talks resume with the Indian Banks’ Association (IBA) on August 29 to seal the 11th bipartite wage settlement.

The key reason behind UBFA’s revised demand from the 15 per cent earlier is that the gap between what bank employees earn when compared to those in the government’s equivalent grade has widened. It was pointed that even after a 20 per cent pay hike, this difference will stand reduced only at the beginning of the scale, but it will still be at about half of the same at the ...

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Next date of wage revision meeting of bank union with IBA decided

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