Bank unions defer strike on fruitful talks with IBA

United Forum of Bank Unions (UFBU) today deferred the proposed strike on June 12 following fruitful discussions held between Indian Bank Association (IBA) and UFBU today.

Arising out of the discussions, the following positions have emerged.  The precondition that the unions should agree for new pension scheme to be made applicable to the new recruits would not be insisted upon, UFBU convener C H Venkatchalam said in statement.
 
IBA stated that the existing pension scheme will continue to be applicable to all new recruits up to 31 March 2010, but UFBU stated that this should be extended up to 31 October 2012, and matter should be reviewed thereafter. The issue will be further discussed.

In view of the breakthrough in the pre-conditions and the willingness of the IBA to finalise our demands with a positive approach within a short time, UFBU decided to defer our proposed strike on 12 June 2009.

Both parties have agreed to meet again very shortly to finalise the understandings on our demands.

Unions expect to conclude negotiations in this month itself, Venkatachalam told Business Standard.

Regarding sharing of additional pension cost, forum said, IBA and bank unions have agreed that banks would take a share of Rs 4,200 crore and employees /officers at Rs 1,800 crore.

There was some movement forward on hike in wage bill also. UFBU said
IBA was willing to improve their offer from 15 per cent to 17 per cent subject to approval by Managing Committee of association. UFBU wanted IBA to further improve their offer to 20 per cent.

The rise in wage bill is expected to be Rs 4,700-4,800 crore if the hike around 17 per cent.