Following is unconfirmed news related to bipartite settlement negotiations held on 29th September .
*11th Bipartite Settlement*
SUB: NEGOTIATING COMMITTEE MEETING
on
Saturday, 29.09.2018 at IBA Office, Cuffe Parade, Mumbai.
On behalf of IBA, the following officials attended the meeting.
1. Shri. R K Thakkar, Chairman of Negotiating Committee
2. Shri. Shyam Srinivasan, CEO, Federal Bank
3. Shri. Rajkumar Rai G, CEO, UBI
4. Shri. Prashant Kumar, DMD, SBI.
IBA team made it clear to Unions that Banks are not in a capacity to pay more than 6% hike in wages. IBA did not go beyond 6% offer they made during last Negotiating Committee Meeting.
Shri. Prashant Kumar, DMD of SBI gave power point presentation on a New formula devised by IBA.
Accordingly, all member banks are to be categorised in three (3) categories, i.e., A,B,C.
Categorisation will be based on certain parameters as revealed by individual bank’s Balance-sheets.
IBA says they ‘Desire Shift’ in pay outs by Banks. The intent of IBA is to allow each Bank to pay its employees as per the Bank’s capacity to pay.
For building the capacity to bear the load of payment to staff, the individual Banks will have to perform to a certain level.
Traditional Practice was:
1. Wage revision every 5 years based on industry level Bipartite settlement.
2. Wage revision is based on negotiations not strictly linked to Banks’ performance.
Proposed Approach Intended is :
*Adding an element of performance linked compensation over and above the settled pay structure.*
It will be calculated as under:
A. A performance Linked Compensation will be incorporated:
i. The value will be over and above the increment as agreed in the Bipartite Settlement.
ii. Will be computed annually after declaration of annual financial results.
B. Payable amount shall be CONTINGENT upon achievement of established performance criteria by the Banks every year.
C. Key metrics chosen for defining organisational performance on following parameters.
• Operating Profit
• Return on Assets
D. Payout rate to be related to performance based Tiering, on chosen metrics
For the FY 2017-18 the categorisation comes as under:
Operating Profit wise
A. Indian Bank
Vijaya Bank
B. NO BANK
C. NO BANK
Return of Assets
A. Indian Bank
Vijaya Bank
B. SBI
C. Bank of Maharashtra
Bank of Baroda
Canara Bank
On this new shocking proposal of IBA I reacted: ‘Not Acceptable. There should be Uniform Pay in all Banks’
As per the indications by merging DA as on 01.11.2016 the present basics will be constructed and then loading will be applied.
Since, the new approach is intended by IBA, we are going to study their proposal in detail and then react to it by way of circular. But our stand is *“NOT ACCEPTABLE. There should be Uniform Pay in all Banks.
__________________________________________
Sri Dharam Singh expresses as follows
IBA Update
Today's meeting with UFBU , sticked to 6% . In addition, they suggested to have variable bank wise package depending on ROA and YOY Gross profits .UFBU rejected the offer , Friends,
IBA offered a new system of deciding pay structure for different banks dividing them into three categories depending on performance. It was refused by UBFU to accept considering it as inadequate. We think that it is only due to cursing by the retirees who have been continuously ignored by UBFU. UBFU has forgotten that their real strength was the today's retirees who gave their whole hearted support during their service time.
UFBU has become selfish only for their personal interests.
During the last five settlement, UFBU intended not to share the increase in wages with the retirees inspite of the fact that the revision in pension is in no way a load on the bank revenue . Our pension fund is sufficient enough to bear the load of retirees pension .
JAGO FRIENDS JAGO
Dharam N Delhi
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