Eleventh Bipartite settlement/ Bank Wage Revision – History and customs followed so far
Young bank employees are eager to know the process of wage revision / Bipartite settlement (Eleventh ). Based on our past experience we try to give a brief outline about how the negotiations will shape up between UFBU (United forum of Bank Unions) and IBA (Indian Banks Association) in the past.
The following are the constituents of UFBU
- All India Bank Employees Association(AIBEA)
- All India Bank Officers Association (AIBOA)
- All India State Bank Officers Federation (AISBOF)
- All India Bank Officers Confederation (AIBOC)
- National Confederation of Bank Employees (NCBE)
- National Organisation of Bank Workers(NOBW)
- National Organisation of Bank Officers (NOBO)
- Indian National Bank Employees Congress (INBEC)
- Indian National Bank Officers Congress(INBOC)
- Bank Employees Federation of India (BEFI)
First amongst, wage revision for workmen is called as Bipartite Settlement, whereas for officer’s wage revision, it is called as Joint Note.
So far ten Bipartite settlements (wage revision) were signed. For the benefit of our readers PDF formats of all Bipartite settlement are uploaded. The details are as follows
|Signed On||Quantum of Amount||PDF copy of Wage Revision / Bipartite|
|First Bipartite||19/10/1966||– – – –||first-bipartite-settlement|
|Second Bipartite||12/10/1970||– – – –||second-bipartite-settlement|
|Fourth Bipartite||17/09/1984||120 Cr||fourth-bipartite-settlement|
|Fifth Bipartite||10/04/1989||252 Cr||fifth-bipartite-settlement|
|Sixth Bipartite||14/02/1995||388 Cr||sixth-bipartitie-settlement|
|Seventh Bipartite||27/03/2000||818 Cr||seventh-bipartite-settlement|
|Eighth Bipartite||02/06/2005||1288 Cr||eighth-bipartite-settlement|
|Ninth Bipartite||27/04/2010||2577 Cr||ninth-bipartite-settlement|
|Tenth Bipartite||25/05/2015||4725 Cr||tenth-bipartite-settlement|
We would like to remind that until the tenth bipartite officers associations were sidelined, as far as negotiations with IBA were considered. Its the AIBEA that used to dominate the negotiations. Once the Bipartite settlement is signed, same percentage is finalized for officers Joint Note too.
It is the Tenth Bipartite that the officers associations have raised their voice. In the ensuing Eleventh Bipartite we hope that the officers organisations will play a crucial role.
Basically we can divide the entire process of Bipartite negotiations / Wage revision talks into three parts.
- Preparation of Charter of Demands and submitting the same to IBA.
- Negotiation process and signing the Bipartite Settlement / Wage revision.
- Residual issues.
- Preparation of Charter of Demands and submitting the same to IBA:
This is the first step for any Bipartite settlement / Wage revision. All individual constituents of UFBU will seek opinions / suggestions from their members and will prepare a charter of demands. Later on formally UFBU in their meeting will consolidate all these, and prepare a single charter of demands.
So far for all these bipartite settlements we have submitted the charter of demands immediately after the expiry of present Bipartite settlement. Expiry date of present Bipartite settlement and commencement of Eleventh Bipartite Settlement is 01.11.2017.
Once the charter of demands is submitted to IBA by UFBU, Indian Banks Association (IBA) will seek mandate from all the member banks. Apart from public sector banks some old private sector banks are implementing the Bipartite settlements. Hence all these banks have to permit IBA to negotiate on their behalf and its through a Mandate. This mandate from member banks empowers IBA to negotiate with UFBU on behalf of individual member banks. ( For issuing mandate, approval from Boards of respective bank is necessary )
After mandate is obtained from all individual banks IBA will formally invite UFBU for negotiations.
( we at banknews-views are simply presenting the facts and our observations and we are not here to criticize any organisation. We do not encourage any foul language against any organisation or individual. We request our readers to restrain themselves from making such comments. )
- Negotiation process and signing the Bipartite Settlement / Wage revision.
This is where in both the parties test their skills. If we observe the above table except for the third Bipartite, where it took 9 years we are having a bipartite settlement for every five years.
The story of Third Bipartite settlement was interesting, just a brief about third bipartite settlement.
Securing the third Wage revision ( Bipartite ) was one the toughest challenges faced by the organisation. ( Here it is AIBEA) . The Janata government headed by Moraji Desai was formed with a massive victory in the aftermath of the emergency. The famous remarks of Morarji Desai were that the “ Bank employees enjoyed best of both the words and therefore no question of any wage increase to them” .
Not only wage revision the government even tried to reduce the salaries by trying to implement the Boothalingam Committee DA formula.
(for complete Boothlingam Committee click here bhootlingam-report-of-the-study-group-on-wages-incomes-and-prices )
Thus a battle of royale ensued between the Government of India and bank unions, and the leaders have used every known method such as work to rule and other forms of agitations such as strikes at difference places on different dates etc., ( I think during the last bipartite our leaders tried to use this trick , strike at different parts on different dates ) Finally after a wait of nine long years the bipartite was signed.
Wih regard to the eleventh bipartite the total negotiation process can be divided into the following three major components
- Merger of DA ( DA Nutralisation).
- Percentage of Hike or the Load factor / Amount.
- Distribution of the agreed load to Different components of salaries.
Merger of DA ( DA Nutralisation)
This the first and the easiest part of the total Bipartite Negotiations. It is nothing but the merger of DA ( Dearness Allowance ) with Basic Pay. Normally the DA as on the date of settlement ( Due date of settlement, for 11th bipartite it is 31.10.2017 ) should be merged with Basic. But for the last two bipartite settlements, it,s not the case. Outstanding DA one year prior to the due date of settlement is being merged with Basic.
If the same custom is followed then, for the Eleventh Bipartite, the DA outstanding as at 31.10.2016 will be merged with Basic. Well we all know that it is 45.5%. ( We should fight for 100% DA neutralisation for 11th Bipartite.)
Percentage of Hike or the Load factor / Amount
Our bipartite is always negotiated around the increase of quantum of amount over the previous years expenditure on staff salaries. This is the most tricky part, wherein the normal members doesn’t understand the intricacies of the Bipartite settlement. We all know that the settlement is signed for a hike of 15% and in reality the salary hike is much more less than that.
A simple example will resolve this of tenth bipartite will solve this
|Total proposed Loan on IBA / Individual banks due to this wage settlement.||Rs.4725 cr.|
So as far as last bipartite settlement is concerned a hike of 15% has increased the wage bill of IBA by Rs.4725 cr. We are always finalizing the total cost to company first and then splitting the amount into various heads later on. We don’t know how much we are going to get for this eleventh bipartite.
Distribution of the agreed load to Different components of salaries:
Once the final percentage and the amount is fixed, then the final thing is distributing to various components of salary.
In the coming eleventh (11th) bipartite we must ensure that the maximum hike should go to the basic. During the tenth bipartite the hike in basic after the DA neutralisation was just 2%.
A healthy hike in Basic takes care of many things including the quarterly DA hikes and also other benefits. So for eleventh bipartite we must aim at 110% da neutralisation and also a hike of 30% after the DA neutralisation.