PSBs' wage negotiations stuck over IBA's performance-linked pay proposal

The eleventh bipartite agreement for wage revision of about 800,000 public sector bank (PSB) employees is stuck over a proposal by the Indian Banks’ Association (IBA) to link salaries of senior executives with performances of banks.

This is for the first time that the IBA has proposed a performance-linked pay for banks. While the officers’ union had been opposing the move, now the workman unions have decided to go ahead with talks. 

The IBA had proposed that remuneration of grade six and seven be linked to the return on assets and operating profit of banks. For other grades — from one to