Bank unions reject IBA's 8% wage hike offer

Unions have also rejected the proposal to introduce variable pay, which would be linked to return on assets and operating profit and would be part of the overall wage hike.

The Indian Banks' Association has raised its wage hike offer to 8% from 6% but failed to make bank employees unions happy.The unions have rejected the offer and threatened to go on strike on December 26.

"It is far below our expectation. We have urged upon them to improve their offer," said Rajen Nagar, president at All Indian Bank Employees Association.

Banks saddled with high level of non performing assets and successive quarterly losses would be looking to restrict the rise salaries and remunerations while unions are demanding at least 15% hike like they get under 10th bipartite settlement.

The wage revision by way of 11th bipartite settlement is due from November 1, 2017. Wage revision in public sector banks take place every five years.

Nine unions, under the banner of the United Forum of Bank Unions (UFBU), also demanded wage negotiation for bank employees under scale 1 to 7 while IBA's wage hike offer pertains to employees under scale 1 to 3. The bank lobby group favours bank wise wage settlement for senior employees of scale 4 and above.

Unions have also rejected the proposal to introduce variable pay, which would be linked to return on assets and operating profit and would be part of the overall wage hike.

The unions said the all India bank strike would also highlight their opposition against bank mergers.

(coutesy; economic times)  

BANKING

Banks should not give in to any pressure: FM

TIRUCHIRAPALLI: The Union Finance Minister, Mr P Chidambaram on Friday asked the banks not to give in to pressure of any kind, including that from political circles, while issuing loans to applicants.

Bank officials should weigh the merit of the case and be liberal in sanctioning loans to the poor and downtrodden, he said while inaugurating the 179th branch of the Pandiyan Grama bank (PGB) here.

"Every customer, be it a depositor of Rs five or Rs five crore, should be treated equally that too when the Government was keen on implementing financial inclusion in the rural areas", he said.

He lauded the performance of PGB for achieving 'numero uno' status among the 92 regional rural banks in the country. He said the Government had given its approval of PGB to expand its operations in six more districts of Tamil Nadu namely Tiruvarur, Than javur, Tiruchirappalli, Theni, Nagapattinam and Perambalur in addition to the nine districts where it was already operating.