Bankers to get 15 percent wage hike, strike called off

Unions in the banking sector and the Indian Banks' Association (IBA) Monday came to an agreement on increasing pay slip salary component by 15 percent and the four-day strike (from Feb 25) call given by the unions has been withdrawn, said a union leader.

"The unions and the IBA have agreed on the wage revision. We have arrived at an understanding today (Monday). As per the understanding, the wage hike agreed is 15 percent," C.H.Venkatachalam, general secretary, All India Bank Employees Association (AIEBA) told IANS Monday over phone from Mumbai.

He said it has also been agreed that the second and fourth Saturdays would be holidays and the bank would work full days on the other remaining Saturdays in a month.

According to him, the yearly additional pay out for the banks will be around Rs.4,725 crore (as on November 2012) up from Rs.2,918 crore during the previous wage settlement.

Wage negotiations between United Forum of Bank Unions (UFBU) and the IBA were held in Mumbai Monday.

The UFBU includes the AIBEA, National Confederation of Bank Employees, Bank Employees Federation of India, Indian National Bank Employees Federation, Indian National Bank Officers Congress, National Organisation of Bank Workers, All India Bank Officers Association and National Organisation of Bank Officers.

Queried whether it was not a climb down for the unions as they had got 17.5 percent wage hike in the last settlement, Venkatachalam said: "The last settlement percentage included all components including the ones in the pay slip."

"But this time the 15 percent hike is only on the pay slip components (like basic salary, dearness allowance) and does not include other components. The pay out under other components have to be worked out," he said.

According to him, the agreement has to drafted and signed within 90 days.

The settlement will be from Nov 1, 2012 and up to Oct 30, 2017.