Bank wage talks begin on May 2 - To be completed by October

Advanced 467 Reasoning Puzzles Book SBI PO 2018
Wage negotiations between bank employees and staff unions, on the one hand, and the bank managements, on the other, will get off the ground on May 2, on hopes of finalising the package by the end of October.

Bank officers, employees, and staff organisations will work through the United Forum of Bank Unions (UFBU), while the Indian Banks Association (IBA) would represent the bank managements.

Banking union sources said the first meeting would be an introductory one. The forum has given a summary of demands and will submit the details when talks begin. Sanjeev K Bandlish, convener, UFBU, representing 11 unions, will lead the team from the workers’ side.

The IBA has formed a panel of bankers for negotiations. Most public sector banks (PSBs), including State Bank of India (SBI), had given their board-approved mandate for talks, a senior PSB executive said. 

The term of the existing wage pact for the banking industry ends in October. The last wage negotiations, pending since 2012, were settled in May 2015 with a 15 per cent hike.

Since January last year, the finance ministry has been persuading banks to finalise the modalities for a timely implementation of the next pay revision from November 1, 2017.

There are 21 public sector banks after the merger of five lenders with SBI on April 1. They together employ about 800,000 people.

At a time when the government is contemplating cutting employee benefits in 10 laggard public sector banks, bank officers have demanded that they should be given a revised basic pay at par with central government officers on the principles of the Seventh Pay Commission.

The Pay Commission had recommended an overall 23.55 per cent hike in basic pay plus allowances. The government had accepted a 14.27 per cent hike in basics pay, while the allowances would have to be decided later.

Famous among others

Govt instructs Banks to complete Bank Employees Wage Revision before Nov 2017

D.O.No. 4/2/2/15/IR

Girish Chandra Murmu, IAS .
Additional Secretary
Government of India
Ministry of Finance
Department of Financial Services
Jeevan Deep Building, 3rd Floor,
10, Parliament Street,
New Delhi-110 001
March 21, 2017

Dear MD/CEO

Kindly refer to this Department’s letter dated 12.01.2016, 24.08.2016, 21.10.2016 and 21.12.2016 addressed to all Public Sector Banks (PSBs) whereby PSBs were requested to initiate the steps taken for smooth conclusion of next wage revision of the employee within time frame. However, it is seen that several Banks are yet to proceed in the matter.

May I request PSBs to kindly look into the matter and to conclude the next wage revision prior to the effective date i.e. 01.11.2017.

With regards,
Yours sincerely,
(G.C. Murmu)