Bank Unions wage increase demand irrational: IBA

Bank Unions wage increase demand irrational: IBA

Indian Banks’ Association said it is the only representative body of banks which acts on the mandate given by the banks for wage settlement, a statement issued here said.

It said IBA’s Negotiating Committee comprise of CMDs of Public Sector Banks as well as Private Sector Banks which are parties to the Bipartite a settlements has started the wage negotiation in justify earnest since October 2012.
It said 14 rounds of discussion have been held and two major issues, i.e., effective date of implementation and merger of DA have been clinched.

“In the past 7th and 8th Bipartite Settlements, the wage increase was between 10 percent and 13 percent. The 9th Bipartite Settlement was an exception as compared to earlier settlements and cannot be quoted as precedent.”

In the current wage settlement, a hike of 11 percent on salary and allowances has been offered based on the paying capacity of all the banks, lower profitability, higher requirements for provisions and further capital requirement under Basel-III, which translates into 12.5 percent on the balance sheet cost that too is unaffordable to some of the banks.

“The issues regarding wage negotiation deliberated in Negotiating Committee of IBA are further discussed in a larger forum, i.e., Managing Committee of IBA and the Chairmen of all the banks were unequivocal in saying that the demand of 23% increase of Unions/Associations is unaffordable, illogical, exorbitant and irrational.”
IBA appealed Unions/Associations to give up the agitational path and return with pragmatic approach to the negotiation table and to resolve the issue through bipartism.

“Despite the appeal made by IBA as well as Chief Labour Commissioner (Central) at the conciliation meetings not to resort to strike and resolve the issue through bipartism, the Unions/Associations went on one day strike on November 12, 14 followed by Zonal relay strikes from December 2 to December 5, 2014.

In the meantime, IBA has requested to all member banks to assess their paying capacity and advise IBA accordingly.

“It is, therefore, apparent that IBA is serious to settle the issue at the earliest and not adopting delayed tactics as alleged by the Unions/Association.”

Source : Rising Kashmir