Banking industry wage pact unlikely by month-end

The prospects of arriving at a wage pact between bank managements under the aegis of the Indian Banks’ Association (IBA) and unions by the end of the month look dim as they are slated to meet on Tuesday and Friday.  

Trade union functionaries have said banks, through the IBA, were yet to put their offer (for wage hikes) on the table. Discussion on financial matters (for wages) is expected to take place on Friday, when the IBA could make its offer.  

On Tuesday, unions will discuss routine matters, such as leave and travel allowances with the managements. 

The United Forum of Bank Unions, a body of banking industry unions and associations, is leading the talks on behalf of employees. 

The term of the existing wage agreement ends on October 31. The IBA has held four meetings with the workmen’s union and two meetings with the officers’ association/unions. 

The discussions and negotiations began four months ago and it would be impossible to conclude talks in a short time. They could spill over to early next year, union representatives said.

For this round of wage negotiations, public sector banks, many of which are deep in the red, have proposed bank-wise compensations for executives, depending on the strength of each entity.

Banks want wages to be linked to productivity rather than the present practice of automatic hikes in wages based on tenure. Unions have opposed such proposals.