Bank Wage Revision – Unions reject IBA’s offer of 5% hike in pay

Bank Wage Revision – Unions reject IBA’s offer of 5% hike in pay – Next IBA – Bank Union negotiation fixed on 29th January 2014

The United Forum of Bank Unions has rejected the Indian Banks’ Association’s offer of a 5% hike on payslip but further negotiations are scheduled on Jan 29, IBA Chief Executive M.V. Tanksale said.
“Wages comprise of a couple of things, one is the payslip which includes the basic, dearness allowance and a few allowances, and a couple of attendant benefits. The most important part is the pension provisions,” he said.
He explained that any hike in the basic or payslip directly leads to a hike in provisions to be set aside for pensions. The section AS-15 mandates a one-time provision on this account, and this entails a huge cost for banks.
In the last such industry-wide wage settlement, the hike in all-inclusive or total establishment cost was 17.5%. “Ultimately, the total establishment cost will be worked out. All that depends on this (payslip hike),” he said. Tanksale admitted that while negotiations between the IBA and bank employees’ unions have been afoot since October 2012, there has been consensus on only a few issues so far.
He said that the IBA had managed to negotiate a higher ex-gratia amount being paid to the pre-1986 retirees or spouses, and had received the approval from the government for this. The ex-gratia payment will rise by around Rs 500 per month for these retirees.
The United Forum of Bank Unions, apart from All India Bank Employees Association, includes All India Bank Officers’ Confederation, National Confederation of Bank Employees, All India Bank Officers’ Association, Bank Employees Federation of India, Indian National Bank Employees Federation, Indian National Bank Officers Congress, National Organisation of Bank Workers, and National Organisation of Bank  Officers.

Source : The Free Press Journal

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