Bank of Baroda seeks variable pay, incentives for officers

Bank of Baroda wants to have a separate salary structure for its officers. The bank is trying to be out of the industry-level-wage negotiation with the unions as it wants to introduce incentives and variable pay. The bank has not given the mandate to the Indian Banks’ Association to negotiate with unions for officers’ wage revision, but it has for salaries of the award staff (clerical staff). While acknowledging that securing Government approval may be difficult, Mr A.K. Khandelwal, Chairman and Managing Director, Bank of Baroda, said: “We have made an attempt to at least voice our feelings on this. We will be very happy if the Government wishes to try an experiment with Bank of Baroda and gives us permission.” The earlier wage agreement, between IBA and bank unions, for the period 2002-2007, was signed in 2005 and it ended on October 31, 2007. According to an IBA official, all other 27 PSU banks have given the mandate to IBA for negotiating salaries, except Bank of Baroda. So, it is unlikely that the Government will amend the banking regulations for one bank.