• Post last modified:October 18, 2020
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11th Bipartite Wage Settlement

The hike in wages of bank employees is discussed every five years between IBA (Indian Banks Association) representing bank managements and UFBU (United forum of bank unions) representing bank employees’ unions.

During the 10th Bipartite wage settlement, a hike of 15% in the salaries of PSU bank officers and clerks were agreed upon between IBA and UFBU. The eleventh bipartite wage settlement is due since 1st November 2017.

Latest news updates of the 11th Bipartite wage settlement

17th October 2020- Officer Associations communication to Members

In its communication dated 17.10.2020, four officer associations informed that IBA derails the officer’s wage revision. It was informed that IBA had concurred for the signing of the Joint note on 18th October 2020, however, later IBA showed its inability to sign the agreement as the discussions are still underway with workmen unions for finalization of Pay Slip Components. The unions have decided for agitation in a phased manner.

The link to AIBOC circular no 2020/66 dated 17.10.2020 is available under “Sources” at Sr. No 4.

15th October 2020- Meeting of workmen unions with IBA

In this meeting, the discussion was again held on allocation towards various pay components. The unions reiterated the demand for a 20% special allowance. However, IBA insisted on special pay at 16.4% in line with the same agreed upon by officer’s unions. The offer was not accepted by workmen unions and the talks remain inconclusive.  

12th- 13th October 2020- Meeting of officer Associations with IBA

The meeting was held to discuss pending issues and to decide the distribution of balance 12.5% (out of 15%) proposed increase. The meetings were held on 12th & 13th October 2020 but no mutual understanding can be reached. The next meeting is proposed on 15th October 2020.

The following message from one of the officer association to members on 14th October 2020 provides some hint about the current status.

Dear Comrades,

We at AIBOC together with the other 3 officers’ Organization planned not to attend the physical meeting with IBA yesterday as the proposal given by IBA on cost distribution was not acceptable and it would be better to have meeting through video conference in order to reach better understanding beforehand so that physical meeting can finalise finer points.

Comrades, AIPNBOA stand is that IBA dictated load on Basic pay and UFBU agreed the same but now we can’t allow IBA to control the distribution of balance 12.5% in other Pay slip components or create non DA paying new heads which does not benefit all officers across the board.

Comrades, the effective date of implementation of the settlement is fixed. It is 01.11.2017. DA merger points finalised. Load on Basic Pay at 2.5% finalised. 

Now if IBA dictates balance cost distribution also to deprive future DA payable on Special allowance, it is not acceptable. If the cost is taken in other heads, it will jeopardize future settlements in terms of percentage increase to be achieved on future establishment cost as on 31.03.2022 for settlement due in 01.11.2022.

Therefore, we especially youngsters should not insist for quick settlement but should aim for better settlement even if it takes time. Infect, it is time we should prepare to go on agitation if IBA & Govt. continues to bully in cost distribution in other heads. Agitation should be not only on wage revision issues but should include 5 day banking demand, plight of officers in PSU banks, change in labour laws adversely affecting workers, privatisation move of Govt etc etc.

Let’s give the leaders free hand to decide course of action rather than creating pressure for early settlement.


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17th September 2020- Meeting of Working Group of Workmen Unions with IBA

The gist of discussions of the working group of workmen unions with IBA in meeting dated 17.09.2020 are as under:

  • One more stagnation increment shall be given to Clerical staff and Sub staff.
  • The component of special allowance shall be revised substantially within the overall cost to maximize benefits to workmen staff.
  • Other components of salary i.e. HRA, Medical aid, Transport allowance, etc. shall be finalized after the finalization of Special Allowance.

10th September 2020- Meeting of officers’ Associations with IBA

In this meeting, the officers’ associations submitted suggestions of the new wage proposal to IBA. The proposal focused on maximizing the special allowance with marginal improvement in other components within the overall cost of Rs. 4513 cr.

While unions stressed that the allocation should be left to officer associations, the Chairman of IBA informed that IBA will send two proposals consisting of suggestions for the creation of location allowance and professional development allowance and suggestions regarding existing allowances. The Chairman further assured to convene a meeting to discuss non-financial demands.

AIBOC in its circular dated 21.09.2020 has informed that the proposals received from IBA have since been rejected and the information on the next round of discussions is expected soon.

The link to AIBOC circular no 60 dated 21.09.2020 is available under “Sources” at Sr. No 3.

28th August 2020- Meeting of Working Group of Workmen Unions with IBA

The gist of discussions of the working group of workmen unions (AIBEA, NCBE, INBE, and NOBW) with IBA in the meeting dated 28.08.2020 are as under:

  • Out of the proposed increase of 15% increase i.e. Rs. 7898.00 cr in wage bill of banks, Rs. 3385 Cr is to be given out to workmen employees. Out of Rs. 3385 Cr, an amount of Rs. 495 Cr is set aside for Basic Pay, Special Pay, PQP, and Dearness Allowance while balance Rs. 2890 Cr is to be distributed to other components.
  • The issues of one more stagnation increment and to reduce the periodicity of stagnation increment to every two years were discussed. The issues shall be further discussed in the next round of meetings.
  •  It was decided that components of Special pay, allowances, etc shall be finalized after the finalization of pay scales.

24th August 2020- Meeting of officers’ Associations with IBA

The meeting was held between four officers’ associations and IBA representatives to work out allocation of 12.5% (out of 15%) of the proposed increase so that members get maximum benefits. Further, the unions sought clarity on the issues of 5 days working, updation pension, enhanced Insurance coverage, hospitalization expensed reimbursement, fast-tracking compassionate appointments in banks, etc. Further, the Unions demanded that IBA should first provide the proposal for establishing revised pay scales.

The link to AIBOC circular no 60 dated 21.09.2020 is available under “Sources” at Sr. No 3.

3rd August 2020- Introduction of 5 days working in banks-Letter to DFS

All India Bank officers’ confederation in its letter addressed to Secretary, Department of Financial Services, Ministry of Finance requested to explore a five-day working week in the banks.

The link to AIBOC circular no 20 dated 03.08.2020 is available under “Sources” at Sr. No 2.

22nd July 2020-MOU signed between IBA and UFBU

After various rounds of discussions, IBA & UFBU reached an understanding in the meeting dated 22nd July 2020 and signed a Memorandum of Understanding. As per the MOU, IBA has agreed for a 15% increase (Rs. 7898 cr. Per year) in the wage bill of banks as on 31st March 2017. Further 47.80% of dearness allowance (DA) shall be merged with basic pay along with a 2.5% loading factor to arrive at new pay scales. The other payslip components are to be decided in the next round of meetings with a maximum of 12.50% of payslip components.

It was decided to introduce the Performance Linked Incentive (PLI) matrix in Public Sector Banks. The PLI shall be paid annually depending upon the performance of banks on key profitability matrix i.e. operating profit and net profit. The issues of 5 days working, updation of pension were kept open for further discussion.

The link to UFBU circular no 08 dated 23.07.2020 is available under “Sources” at Sr. No 1


Suggested Reading

Sources

  1. https://aiboc.org/wp-content/uploads/2020/07/55_2020_aiboc_r_UFBU-MOU-Signed.pdf
  2. https://aiboc.org/wp-content/uploads/2020/08/58_2020_aiboc_r_Four-officers-organisations-to-DFS_5-Day-Week.pdf
  3. https://aiboc.org/wp-content/uploads/2020/09/60_2020_aiboc_r_Joint-Circular_Wage-Negotiation-Status.pdf
  4. https://aiboc.org/wp-content/uploads/2020/10/66_2020_aiboc_r_IBA-Derails-the-Officers-Wage-Revision.pdf

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