The propsed strike on June 12 by public sector bank employees was deferred today after a breakthrough was achieved in the talks between the United Forum of Bank Unions (UFBU) and Indian Banks Association (IBA). The strike was called by UFBU, the umbrella organisation of 9 unions representing bank employees, over the issues of wage revision and pension option.
After holding discussion with IBA officials in Mumbai today, C H Venkatachalam, convener, UFBU, said that IBA has agreed that its precondition to make new pension scheme applicable to new recruits would not be insisted upon and the issue would be discussed further.
While IBA wanted the existing pension scheme to be applicable to all new recruits up to March 31, 2010, UFBU has been pushing for its extension up to October 31, 2012, and matter to be reviewed thereafter. The issue will be discussed further.
Regarding the sharing of additional pension cost of Rs 6,000 crore, it has been agreed that banks would contribute Rs 4,200 crore, while employees/ officers would provide Rs 1,800 crore. Earlier, IBA was insisting it should be shared equally.
UFBU was demanding a minimum increase of 20 per cent in the wage bill, while IBA was willing to improve the offer from 15 to 17 per cent, subject to its managing committee’s approval.
On May 11, 2009, IBA has 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
“In view of the breakthrough on the pre-conditions and the willingness of IBA to finalise our demands with a positive approach within a short time, UFBU has decided to defer the proposed strike on June 12,” said Venkatachalam.
IBA and UFBU would shortly meet again to finalise the understanding on our demands, he added.
It may be recalled the union had earlier called for a strike on June 4, 2009, after the failure of talks between the union and IBA in the conciliation meeting held by Chief Labour Commissioner (CLC) at New Delhi. CLC had advised both the parties to sit together to sort out the issues.
