Around 800,000 employees of public sector banks are planning to strike work on June 12. The strike has been called by the United Forum of Bank Unions (UFBU) over wage revision and pension issues.
Meanwhile, the labour department has called IBA and representatives of unions for conciliatory talks on June 5, “if the talks fail, more strikes are likely to follow in July and August,” according to a spokesperson of UFBU.
C H Venkatachalam, convenor, United Forum of Bank Employees Union (UFBEU), told Business Standard that the on May 11, IBA had agreed to take an additional wage load of 15 per cent over the existing wage bill, which would cost the public sector banks an additional expenditure of around Rs 4,125 crore. “However, the forum has rejected the offer and expects IBA to improve the offer, keeping in mind the increased work load in the branches,” he said.
Another demand for a chance to opt for pension under an IBA proposal, which would cover new recruits under the New Pension System (NPS) was hanging fire, said Venkatachalam.
He said the unions were open to the question of NPS for new recruits, but this cannot be set as a pre-condition for giving existing employees another chance for pension.
IBA, while agreeing to consider demands, insists that henceforth those who join banks will be compulsory governed by different pension scheme recently floated by the government. The union suggested that let the option demand be considered and thereafter the case for introducing new pension scheme for new employees could be discussed, said Venkatachalam.
IBA also expects the unions to give a free hand to banks for outsourcing some banking services which is unacceptable to the unions. Meanwhile, the labour department has called IBA and unions representatives for conciliatory talks on June 5 in New Delhi. “During the meeting, IBA should discuss the issue with an open mind to find a solution. Otherwise, the July 12 strike plan will become unavoidable. More strikes will follow in July and August,” said Venkatachalam.