Updates on Meeting held between Banks' Union with Indian Bankers' Association (IBA) on dated 29-09-2018 at Mumbai for negotiation on 11th Bipartite Settlement for Bank employees.
The Minutes of Meeting :
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SUB: NEGOTIATING COMMITTEE MEETING on Saturday, 29.09.2018 at IBA Office, Cuffe Parade, Mumbai.
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On behalf of IBA, the following officials attended the meeting.
1. Shri. R K Thakkar, Chairman of Negotiating Committee
2. Shri. Shyam Srinivasan, CEO, Federal Bank
3. Shri. Rajkumar Rai G, CEO, UBI
4. Shri. Prashant Kumar, DMD, SBI.
1. IBA team made it clear to Unions that Banks are not in a capacity to pay more than 6% hike in wages.
2. IBA did not go beyond 6% offer they made during last Negotiating Committee Meeting.
3. Shri. Prashant Kumar, DMD of SBI gave power point presentation on a New formula devised by IBA.
4. Accordingly, all member banks are to be categorized in three (3) categories,
i.e. A,B,C Categorization will be based on certain parameters as revealed by individual bank’s Balance-sheets.
5. 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.
6. For building the capacity to bear the load of payment to staff, the individual Banks will have to perform to a certain level.
Traditional Practice of settling the salary was:
1. Wage revision every 5 years based on industry level Bipartite settlement.
2. Wage revision is based on negotiations not strictly linked to Banks’ performance.
Proposed Approach Intended in 11th Bipartite :
1. Adding an element of performance linked compensation over and above the settled pay structure.
2. 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 categorization comes as under:
List of Banks' Operating Profit wise
A. Indian Bank, Vijaya Bank
B. NO BANK
C. NO BANK
List of Banks' Return of Assets
A. Indian Bank, Vijaya Bank
B. SBI
C. Bank of Maharashtra
D. Bank of Baroda
E. Canara Bank
Banks' Union has uniformly rejected the offer stating that there should be Uniform Pay in all Banks’. As per the indications by merging DA as on 01.11.2016 the present basics will be constructed and then loading will be applied.
We at this blog on dated 27-08-2018 already had hinted that IBA intended to implement Performance based Salary structure in Banks - Read the News here
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