Bank Wage Revision discussion between IBA and UFBU – Circular

UFBU Circular – Bipartite Talks took place between IBA and UFBU at Mumbai on demands for bank wage revision


CIRCULAR NO. 28 /80/2018 /43



Dear Comrades,


UFBU CIRCULAR: ” Another round of Bipartite Talks took place between IBA and UFBU today at Mumbai on our demands for wage revision. IBA team was led by Shri R.K. Takkar, MD/CEO of UCO Bank and Chairman of the Negotiating Committee. UFBU was represented by our 9 constituent Unions.

Continuing the discussions held in the last round of meeting held on 29-9-2018, IBA wanted our response to their proposal given in the last meeting to decide wage revision Bank-wise based on capacity to pay to be determined through a formula based on Operating Profits and Return on Assets of each Bank every year.

In reply, from UFBU we stated that while varying performance of the banks can be a basis for formulating incentives to be paid to the Employees and Officers in each Bank, it can be a separate issue exclusive of wage revision exercise.

From our side, we reiterated and emphasized the following standpoints of UFBU:

  1. IBA’s earlier offer of 6% should be substantially improved upon to work out a mutually acceptable wage accord.
  2. IBA’s proposal of linking wage revision to Bank-wise Operating Profits and Return on Assets of individual Banks and thus breaking the existing system of equal wage for equal work is not acceptable to UFBU.
  3. Issue of restricted mandate given by SBI, BOB, PNB, UMon Bank of India and Indian Bank should be reviewed and resolved to cover all scales of Officers.

From IBA they repeatedly argued, advocated and pleaded to accept the formula of Bank-wise wage revision according to capacity to pay based on operating profits and further stated that their proposed formula can be modified or amended by further discussions but persisted with their stand that wage revision needs to be based on capacity of the different banks. For this purpose they wanted the suggestions from the UFBU.

We replied that uniform wages in the banking sector has evolved over decades starting from 1948 (Sen Award) and wage revision has never been a major problem in any of the Banks so far even whey had passed through turbulent times. We also pointed out that wage cost as a ratio to total operating expenses of the Banks has actually declined in the recent years and hence IBA’s proposals are not acceptable.

We have requested the IBA to revisit their proposition and come forward to hike their offer from 6% to adequate level and payable uniformly to all banks. We have given our mind to IBA that if the wage revision would linger on in this way by insisting on Bank-wise wage revision based on individual Banks’ operating profits, it would lead to confrontation and consequent agitation by the Employees and Officers. IBA agreed to discuss the issue further in the next round of discussions and requested the unions to have an open mind on their proposal.

Comrades, it appears that there are attempts on the part of the Bankers and Government to reverse the clock by foisting Bank-wise wage revision and divide the workforce to weaken our unity and fraternity. Our demand for a reasonable and decent wage revision is based on inflation, cost of living and also the present level of work pressure and Job profile of Bank Employees and Officers and hence cannot be compromised. While we are dealing with the issue with utmost patience and restraint to find an amicable solution to our demands, our unions and members should get ready to an eventual conflict on this issue if they prefer to precipitate the problem and not come forward to resolve our demands expeditiously and amicably.

We will keep our members informed of further developments in due course. In the meantime, our members are cautioned not be misled and carried away by various provocative messages that are deliberately put up in the social media by inimical forces.

Sd. Sanjeev K Bandlish, Convener

With greetings,

Yours Comradely,


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