MUMBAI: The Indian Banks Association signed the 11th bipartite wage agreement with representative of bank employees paving the way for a 15% wage hike. The agreement applies to public sector banks, a few old generation private banks and some foreign banks.
IBA in a statement said that to inculcate a sense of competition and also to reward the performance, the concept of Performance Linked Incentive (PLI) scheme has been introduced for the first time. The scheme will be effective from the current fiscal. The PLI scheme in public sector banks will be based on operating profit/net profit of the individual bank. It is optional for private and foreign banks.
The bi-partite agreement is a platform for bank employees to renegotiate wages every five years. In addition to the salary the wage agreement incorporates various employee benefits and incorporates any changes in service conditions. For instance, the computerisation of banks in the 90s was made possible through a wage agreement. The contract also includes employee benefits aimed at promoting inclusion. Although the tenure of the previous agreement ended in 2017, the present deal was delayed because of protracted negotiations and Covid-19 lockdown.
The bank wage agreement is significant for other public sector employees including those in Life Insurance Corporation and other public sector insurance companies, the Reserve Bank of India and public financial institutions like Nabard. The government revises the payscales for employees of these organisations based on the wage agreement signed with bank unions.
“The Indian Banks’ Association is pleased to announce the conclusion of 11th Bipartite Wage Negotiations with bank unions and associations to be effective from November 1, 2017. The agreement reached today, provides for a 15 per cent increase in pay slip,” IBA chief executive Sunil Mehta said in a statement. The new wage revision would entail an additional yearly outgo of Rs 7,898 crore for the banks.
According to a note circulated by the All India Bank Employees Association the new agreement includes leave benefits like additional sick leave for those who have completed 30 years of service. Women employees can avail sick leave to take care of sick children on production of medical certificate. Maternity leave up to nine months can be granted for legal adoption of one child and longer maternity leave for mothers of twins. Another relief to employees is that absence from office due to curfew, riots, prohibitory order, natural calamities at the place of work would eb treated as special leave on duty.
The employee unions which signed the agreement include United Forum of Bank Unions (UFBU), representing four Workmen Unions and four Officers’ Associations and also Bank Karamchari Sena Mahasangh (BKSM), who were parties to agreement, an IBA statement said.
Source From : Times Of India