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The industry-wide bipartite wage settlement negotiations held in a meeting on June 13 has turned futile for the bank employees, as the Indian Banks' Association (IBA) offered an increase of 11% on the cost of pay slip components of the wage bill, according to National Union of Bank Employees (NUBE).
An umbrella organisation of nine Bank unions has informed that their minimum expectation is 25% increase in the Pay Slip components cost and this could easily arranged if the Banks retrieve their top Non Performing Asset (NPAs).
"The meeting of 13th June 2014 turned to be yet another futile, symbolic meeting with the yawning gulf separating policy pronouncements from the ground reality. Thus the 10th Industry-wide Bipartite Wage Settlement negotiations in the Banking sector have dragged on for more than one-and-a-half years now without making much headway," said an announcement from the Union.
It added that the IBA has informed the unions that the profits of the Banks have come down by the end of March 2014 and they can offer maximum of 11% on the cost of Pay Slip components of the wage bill.
This would amount to Rs 3,465 crore and would be exclusive of other costs on retirement benefits, leave fare concession, hospitalisation expenses, etc. Since negotiating unions rejected the offer of 11% increase, IBA wanted to know the expectation of the union and a representative of the umbrella of nine unions informed that their minimum expectation is 25% increase in the Pay Slip components cost, it added.
The Union added that the IBA informed them that the demand is beyond the paying capacity of the Banks. IBA's stand is unacceptable to the Union since in all the previous settlements salary increase was given a load to total establishment expenses.
"In this wage negotiations we have been offered on fixed pay components. As against the total establishment expenses of Rs 56,292 crore the pay slip component is only Rs 31,503 crore," said the Union.
While offer of 11% on establishment cost will work out to Rs 6192 crore, compared to 11% of pay slips components expenses would amount to Rs 3,465 crore only. Hence the offer of IBA for one million Bank employees is far below the amount offered during last bipartite settlement.
The Union also said that the Gross NPA of 40 listed banks shot up by 35% or Rs 63,386 crore during the nine month period from February, 22, 2013, to cross the Rs 2.4 lakh crore. This jump of 35.2% was higher than the 27% rise witnessed in the first six months of the current financial year according to a study done by NPA source.com, a portal which focuses on resolution of assets.
"Even if an infinitesimal of 1.83% of these NPA is recovered in tune with the policy plan of the present Finance Minster is expedited with all the seriousness, the demand of the union can be easily met without increase in the exchequer," said L Balasubramanian, general secretary of NUBE.
If amount due from four largest willful defaulters which is around Rs 9,384 crore, is recovered, it is enough to meet the demand of the unions without any burden and the unions will be ever willing to support IBA or the government if it initiates appropriate steps, added the Union.
However, there was a favourable silver lining in the meeting, that IBA is favourably inclined to consider demand of extending 100% DA neutralization to all pensioners, it added. IBA also seems to have shown positive response to improvement in Family Pension, but the Union still have to a lot more since the IBA has not given any commitment.
