Bank employees to go on 4-day strike from Feb 25

Unions not happy with IBA's 13% wage hike offer

Around eight lakh public sector bank (PSBs) employees will go on a four day strike from February 25 for wake hike revision. This will be followed by an indefinite strike from March 16, 2015. 

C H Venkatachalam, general Secretary, All India Bank Employees Association, said that wage revision is pending for the last two years despite submission of common charter demands to the Indian Banks’ Association in October, 2012.

The last wage pact expired in October, 2012 and wage revision is pending since November 2012, he added. 

The Indian Banks’ Association (IBA) is currently negotiating with United Forum of Bank Unions, which represents five workmen unions (AIBEA, NCBE, BEFI, INBEF, NOBW) and four officers’ associations (AIBOC, AIBOA, INBOC, NOBO), covering about eight lakh employees and officers. The revised pact will cover a total of 45 Public Sector Banks, private sector Banks and foreign Banks.  

The charter of demands covers increase in monthly wages and allowances, improvement in superannuation benefits, leave rules, medical expenses reimbursement scheme, five day working week (instead of present 5½ days), improvement in other service conditions, etc.

The annual wage bill for 2011-12 was Rs 31,500 crore (excluding the cost of superannuation benefits and other components of wages). 

IBA has raised its wage hike offer from 5% earlier to 13%, which comes to Rs 4,095 crore additional cost.

“We feel that this offer is inadequate and not satisfactory," said Venkatachalam, citing higher inflation and multi-fold increase in the workload.

Venkatachalam says the Unions don't agree with the IBA's contention that falling net profits and bad loans offer limited scope for a substantial increase. The Unions say the operating profit of PSBs has gone up from Rs 99,981 crore in March 2011 to Rs 127,652 crore in March, 2014.

“It is unfair to pass on the entire burden of the bad loans and the consequent provisions for the same on the shoulders of the employees. The IBA should take a holistic view and come forward to resolve the demands amicably,” said Venkatachalam.

“When the entire workforce in the banking industry is making every effort to implement the various programmes of the government including the recent Jan Dhan Yojana, when employees and officers are working under lot of stress and maximum difficulty due to manpower shortage and increased volume of work, it is unfortunate and regrettable that the government, which is aware of this unresolved dispute in the vital banking industry, is a silent spectator. The government, particularly the Finance Minister is expected to intervene so the banking industry is spared serious dislocations and strike actions,” he added.

The Chief Labour Commissioner has convened a conciliation meeting on February 20 to hear both sides.  

“From the Union’s side, we would also endeavor to work out an acceptable level of wage hike if the IBA and government  exhibit a positive approach so that the two-year old negotiations comes to a fruitful conclusion,” he said.