Public Sector Bank's Union has given deadline ultimatum to IBA and government till December, 2017 for settling the already due 11th Bipartite Salary settlement. The previous wage agreement of banks was signed in May 2015 with retrospective effect from November 2012.
Unions and the management are negotiating for the past five-six months but no clear headway has been made. This time bank managements are also asking for variable-, performance-related pay.
Looking at inflation and changing work profile in the bank, burden on bank employees, we are expecting a fair and reasonable increase in wages
Banks are proposing entity-wise negotiation depending on the capital position as balance sheets of most lenders are stressed because of bad loan issues.
So far peripheral issues pertaining service condition such as travel and leave allowances have been discussed.
Interestingly the banker's union are saying that talks under 11th bipartite settlement is underway as previous agreement expired on 31 October.
"banks have agreed that settlement will be effective from 1 November 2017, irrespective of the date of signing of the pact." V.G. Kannan, chief executive at Indian Banks’ Association (IBA), said that talks are on-going and so far discussions on financial matter has not started.