10 Th wage revision of bank employees

As per our sources, IBA and UFBU are near negotiations and areagree on 90% issues.

IBA agreed that the new wage settlement would be effective from 1st November, 2012, i.e. the date from which the 10th Bipartite Settlement is due.  

 As per UFBU sources, IBA agreed and conceded to merge Dearness Allowance upto 4440 Consumer Price Index i.e. 401 slabs and construct new pay scales accordingly. 

Settlement’s Date of Effect

In response, the IBA agreed that the new wage settlement would be effective from 1st November, 2012, i.e. the date from which the 10th Bipartite Settlement is due.  

Merger of DA for Constructing Revised Pay Scales: 401 Slabs

IBA explained their constraints to consider merger of Dearness Allowance at higher index points. After prolonged discussions and on the insistence of the UFBU for merger of D.A at a higher level to enable construction of Pay Scalesin a reasonable manner looking to the Pay Scales of employees and officers in comparable sectors, IBA agreed and conceded to merge Dearness Allowance upto 4440 Consumer Price Index i.e. 401 slabs and construct new pay scalesaccordingly.

Increase in Wage Load

On the offer of the wage load increase, IBA wanted to study the cost impact of the merger before responding.  However, the UFBU reiterated its demand that the offer should be exclusive of superannuation cost and improvements in other welfare measures.  IBA indicated that the same would be kept in mind by them.

In 9^th Wage settlement bank employees were get increase of only 17.50% salary due to pension load factor, where central govt employees got 60% increase in 6^th pay commission. After 9^th wage revision bank employees’ salary is 40% less than compared sector and PSUs.

Reimbursement of Hospitalisation Expenses: 

On UFBU demand for 100% reimbursement of hospitalisation expenses incurred by the employees/officers for self and eligible family members, IBA offered introduction of Mediclaim policy facility under which hospitalisation expenses would be reimbursed by the insurance company upto Rs. 2 lacs for sub-staff, Rs. 3 lacs for clerical staff and Rs. 4 lacs for officers per year. Looking to the various implications of switching over to the new scheme and the need to examine the pros and cons of the scheme, we said that a detailed study is required on the contents of the scheme offered before responding.

Management Issues:  The management’s issues like introduction of cost to company method, Fixed Pay and Variable Pay concept were discussed and UFBU has given its strong views against the same.  However, the matter remained inconclusive.

Compassionate Ground Appointment Scheme on Central Govt Pattern

Bank employees another vital issue, much dearer to all the bank employees, which is relentlessly being pursued by the UFBU is restoration of compassionate appointments in the Banking Industry. IBA informed UFBU in this meeting that itsrecommendations for introduction of compassionate appointment scheme on similar lines prevailing in Central Government for its employees has been sent to Ministry of Finance, Govt. of India for its approval. No doubt, it is an important step in the direction of restoring compassionate appointments in the Banking Industry.