AIBOC Opposes Revised PLI scheme in Public Sector Banks

Public Sector Banks' officers union AIBOC has opposed the implementation of revised PLI scheme in the Public Sector Banks and said that the revised Performance Linked Incentives (PLI) for Whole Time Directors and senior executives infringes upon autonomy of boards of public sector banks.

Earlier, the Department of Financial Services announced a revised PLI scheme for Whole Time Directors. The revised scheme also included officers from Scale IV to Scale VIII of public sector banks.

The AIBOC said that the Department of Financial Services (DFS) directive undermines the well-established framework of Bipartite Settlement and violating the sanctity of collective bargaining and the essence of bilateral settlements.

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"This selective approach to incentive-only officers from Scale IV to VIII (counting less than 5 per cent of the total workforce), while excluding over 95 per cent of employees who primarily drive business at the field level, is inequitable," it said.

"We, therefore, urge the Department of Financial Services to respect the autonomy of public sector banks and entrust the Indian Banks' Association, along with bank managements, with the responsibility to design compensation mechanisms taking the Unions/Associations along as hitherto," it said.

These mechanisms should align with the collective growth of the banks and their workforce, ensuring fairness and sustainability, it added.