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Jan 7, 2014

IBA offer of 5% rise in payslip bill inadequate: Unions

While bank managements, under the aegis of the Indian Banks Association, are ready to bear the burden of a 5% increase in the payslip component of the total wage bill, trade unions in the banking sector say the increase in not adequate if one takes into account the rising inflation. Mohan V. Tanksale, Chief Executive, IBA, said the offer of 5% increase in the pay slip bill was not acceptable to the unions.

The IBAs wage negotiation committee and trade unions will meet on January 29 to reconcile the differences. The last 5-year industry-wide wage settlement expired in November 2012. Salaries in public sector banks and old generation private sector banks are governed by the settlement. According to C.H. Venkatachalam, General Secretary, All India Bank Employees Association, the 5% hike in the payslip components of the total wage bill works out to Rs 1,575 Cr for the banking sector and is woefully inadequate. He pointed out that in the last settlement the pay slip bill was much higher at Rs 4,800 Cr. When prices are increasing day by day, when the workload on the employees has gone due to steep increase in the volume of business, there is urgent need to increase the wages of the bank employees but bank managements� attitude seems to very casual, he said.

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