IBAs Offer ‘Not Acceptable’
Union Circular–
*11th Bipartite Settlement*
NEGOTIATING COMMITTEE MEETING
on Saturday, 29.09.2018 at IBA Office, Cuffe Parade, Mumbai.
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.
IBA team made it clear to Unions that Banks are not in a capacity to pay more than 6% hike in wages.
IBA did not go beyond 6% offer they made during last Negotiating Committee Meeting.
Shri. Prashant Kumar, DMD of SBI gave power point presentation on a New formula devised by IBA.
Accordingly, all member banks are to be categorised in three (3) categories, i.e., A,B,C.
Categorisation will be based on certain parameters as revealed by individual bank’s Balance-sheets.
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.
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 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 is :
*Adding an element of performance linked compensation over and above the settled pay structure.*
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 categorisation comes as under:
Operating Profit wise
Return of Assets
On this proposal we are not agree.
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.
Since, the new approach is intended by IBA, we are going to study their proposal in detail and then react to it by way of circular.
But our stand is *“NOT ACCEPTABLE. There should be Uniform Pay in all Banks.
*11वां वेतन द्विपक्षीय समझौता*
विषय : समझौता समिति की बैठक शनिवार, 29.09.2018 आईबीए कार्यालय, मुंबई.
आईबीए की तरफ से निम्नलिखित अधिकारियों ने बैठक में भाग लिया ।
1. श्री. R K ठक्कर के अध्यक्ष वार्ता समिति
2. श्री. श्याम श्रीनिवासन, मुख्य कार्यकारी अधिकारी, फेडरल बैंक
3. श्री. राजकुमार राय जी, सीईओ, यूबीआई
4. श्री. प्रशाांत कुमार DMD, एसबीआई.
आईबीए टीम ने यह स्पष्ट कर दिया कि बैंकों में 6 % से अधिक वृद्धि देने की क्षमता नहीं है ।
आईबीए द्वारा पिछली मीटिंग में 6% की पेशकश बातचीत के दौरान की थी ।
श्री. Prashant Kumar, डीएमडी ,भारतीय स्टेट बैंक ने पावर प्वाइंट प्रस्तुति द्वारा एक नया सूत्र सुझाया
तदनुसार, सभी सदस्य बैंकों को तीन श्रेणियों अर्थात्, ए,बी,सी.में वर्गीकृत किया गया ।
वर्गीकरण बैंक बैलेंस शीट के आधार पर किया गया ।
आईबीए के अनुसार हर बैंक अपनी क्षमता अनुसार अपने कर्मचारियों का वेतन निर्धारण कर सकेगी ।
नया प्रस्ताव स्वीकार्य नहीं किया गया है ।
सभी बैंकों का वेतनमान एक समान होना चाहिए।
