IBA increases bank wage hike offer to 10% from 8%, Unions has not been happy
The 10% offer is not up to our expectation.” said Rajen Nagar, president of All India Bank Employees Association, the largest bank union
KOLKATA: Indian Banks’ Association has raised its bank wage hike offer to 10% from previous offer of 8% but failed to please bank employees associations.
IBA will another meeting with members of United Forum of Bank Unions after February 15 to sort out the matter, two people familiar with the matter told ET.
“The 10% offer is not up to our expectation.” said Rajen Nagar, president of All India Bank Employees Association, which is the largest bank union.
While IBA enhanced the offer on fixed pay component, it reduced the variable offer to 6.2% from 8.2% at the meeting on Saturday with UFBU members. Union Bank of India chief executive Raj Kiram Rai, Bank of Baroda chief executive PS Jayakumar, IDBI Bank chief executive Rakesh Sharma were present at the meeting with union members.
Banks saddled with around Rs 10 lakh crore of non-performing assets, which is about 11% of total bank loans, are looking to restrict the wage hike while unions are demanding at least 15% hike like what they received during the previous bipartite negotiations.
Wage revision in public sector banks take place every five years. The 11th bipartite settlement is due from November 1, 2017.
On Saturday’s meeting, UFBU was represented by five workmen associations including AIBEA and two officers associations — All India Bank Officers Association (AIBOA) and Indian National Bank Officers Congress (INBOC), but All India Bank Officers Confederation (AIBOC) and National Organisation of Bank Officers (NOBO) did not take part.
AIBOC has not been happy with IBA’s proposal to leave officers in scale IV and above out of the bipartite wage settlement ambit.
IBA proposed wage settlement for scale I to scale III bank employees and is in favour of bank wise wage settlement for senior officers.
A joint statement by AIBOA and INBOC said that the issue of exclusion of officers would be taken up again at next meeting.
There will be another meeting with IBA to discuss the common demand of officers and workmen.