Bank Bipartite : Outcome of 29th Sep meeting

The bipartite meeting on 29th September 2018 could not provide much breakthrough. 

IBA team made it clear to Unions that Banks are not in a capacity to pay more than 6% hike in wages. IBA did not go beyond 6% offer they made during last Negotiating Committee Meeting.

Shri. Prashant Kumar, DMD of SBI gave power point presentation on a New formula devised by IBA.

Accordingly, all member banks are to be categorised in three (3) categories, i.e., A,B,C.

Categorisation will be based on certain parameters as revealed by individual bank’s Balance-sheets.

IBA says they ‘Desire Shift’ in pay outs by Banks. The intent of IBA is to allow each Bank to pay its employees as per the Bank’s capacity to pay. For building the capacity to bear the load of payment to staff, the individual Banks will have to perform to a certain level.

Proposed Approach Intended is :

Adding an element of performance linked compensation over and above the settled pay structure.

It will be calculated as under:

A. A performance Linked Compensation will be incorporated:

i. The value will be over and above the increment as agreed in the Bipartite Settlement.

ii. Will be computed annually after declaration of annual financial results.

B. Payable amount shall be CONTINGENT upon achievement of established performance criteria by the Banks every year.

C. Key metrics chosen for defining organisational performance on following parameters.

• Operating Profit

• Return on Assets

D. Payout rate to be related to performance based Tiering, on chosen metrics.

For the FY 2017-18 the categorisation comes as under:

Operating Profit wise

A. Indian Bank, Vijaya Bank

B. NO BANK

C. NO BANK

Return of Assets

A. Indian Bank, VijayaBank

B. SBI

C. Bank of Maharashtra, Bank of Baroda, Canara Bank

This new shocking proposal of IBA is not acceptable by any PSU banker.

As per the indications by merging DA as on 01.11.2016 the present basics will be constructed and then loading will be applied.

The unions primarily rejected the offer of disparity in pay structure. They are in a process of studying the new formula and represent in the next round of negotiation.