The wage revision talks between the United Forum of Bank Unions (UFBU), an umbrella body of bank employees’ organisations, and the Indian Banks’ Association (IBA) have hit a hurdle after the government asked IBA to offer an increase of only up to 15 per cent instead of the 17 per cent indicated earlier.
UBFU Convenor C H Venkatachalam said IBA had told the unions that it could not offer more than a 15 per cent increase and its action was based on the government’s advice. “The talks, which were progressing smoothly to date, have met a hurdle. The reduction in the offer shows a lack of credibility on IBA’s part,” he said.
M V Nair, the newly-elected chairman of IBA, said the negotiations were still on and the final result would be available only after nine sittings of the managing committee. He reiterated that the 15 per cent rise was what the committee was looking for. Nair, who has been spearheading the negotiations from the banks’ side, is likely to meet finance ministry officials tomorrow in Delhi to discuss the issue.
Meanwhile, a senior public sector bank official associated with the talks said the bankers’ association would resume dialogues only after it got a clear view from the government.
UFBU sources said the offer of IBA was totally unacceptable and would constrain it to go back to its position prior to the agitation.
UFBU, however, said it would first meet the IBA chairman to sort out the issues amicably before deciding on its future course of action.
During the wage discussions held on June 9, IBA had shown its willingness to increase its offer from 15 per cent to 17 per cent subject to the approval of the Managing Committee. The unions had sought a minimum 20 per cent increase in the wage bill.
Following an understanding reached on a range of issues, bank unions had offered to defer their plan to go on strike and agreed to discuss the matter so that a settlement could be reached within this month.
IBA and the unions had also almost settled the issue of sharing the pension burden. Out of a total cost of Rs 6,000 crore, banks’ share was Rs 4,200 crore, while the balance was to come from the employees. IBA had also informed the unions about continuing the existing pension scheme till the end of March 2010.
The union held a meeting today in Bangalore to discuss the revised offer of IBA and take a view on it.
