Developments so far:
Eleventh Bipartite or Bank Wage Revision 2017 is due from 01.11.2017. Now if we analyze what has happened so far, something strange is happening this time. Government is very eager to commence the talks with UFBU. Probably they want to push some important banking reforms along with Wage Revision 2017.
Ministry of Finance, Department of Financial Services, has sent three reminders to IBA with regard to timely completion of talks with UFBU and implementation of Eleventh Bipartite on the due date itself i.e on 01.11.2017.
For a scanned copy of circulars please click the following link
Unions / Associations, UFBU Reaction:
Even though IBA was reminded three times by the Department of Financial Services, Ministry of Finance our leaders are yet to respond for the same. Immediately AIBEA has announced a small committee with Com. Lalita Joshi (Joint Secretary of AIBEA) as convener. AIBEA has requested, all its units to send their suggestions so as to enable them to submit charter of demands for the ensuing eleventh bipartite / wage revision 2017.
Please click the following link for AIBEA circular
All other UFBU constituents are silent about the charter of demands.
IBA and other banks views:
Indications from the government and other related organizations are very clear. They want to introduce the variable pay at any cost.
PNB chairperson during her analysts meet has clearly announced that “Today, an employee’s salary is predictable. There is a need to recognize performance and give remuneration. We have formed an internal committee of general managers to work on this matter and submit the proposal to the board”.
During the previous bipartite settlement’s also PNB under the leadership of Sri. K C Chakrabarty has attempted for introducing the variable pay but couldn’t succeed.
Government has made its stand clear. Today Bank Board Bureau chairmen Sri. Vinod Rai has categorically confirmed introduction of variable pay.
He has informed that by next fiscal attractive package for all public sector bank employees with bonus and various monetary and non monetary benefits are going to be announced.
The most important part of the statement is that “ We cannot change the fixed income, but we are making the variable part of the package more attractive”
The statement makes it very clear they are not going to wait for the Bipartite settlement, they will be introducing the same from April 2017. Further he has made one thing clear the variable pay is for the executive both senior and middle management grade.
Khandelwal Committee Recommendations (2010):
The committee has submitted its report in June 2010. Except the following, successive Govenments have accepted and implemented majority of the recommendations.
One of the important recommendations of the committee is with regard to the Bipartite settlement.
The following are the critical comments about the bipartite or the Bank wage revision
- Each Bipartite settlement is generally a clone of previous settlements with very minor changes and does not take into consideration the new challenges arising out of competition.
- Bipartite is one single factor which has contributed to lack of professionalization of HR in PSB. In turn this has resulted in lack of accountability for initiating modern and innovative HR policies and HR function being routinely administered and managed.
- Wage payment in banking industry today has no relation to capacity to pay of individual banks.
- Industry level wage negotiations and settlements have made bank managements complacent about taking any initiative and introducing innovations in the human resource management areas and practices except to ensuring apparent compliance to industry level agreement.
- In a Bank Level arrangement, banks should consider variable pay as a major component of wages.
With all the above and analyzing the recent developments it is certain that for Scale 4 and above bank level settlement with variable pay will be implemented. (For all acquirer banks)
There is every possibility that the variable pay will be introduced, over and above the Bipartite settlement scales for all other employees.
UFBU is dumbstruck and watching all the events including the demonetization. Majority of the banks have not even paid a single penny towards overtime / extra allowance. Can they resist the variable pay and the bank level settlement for this eleventh bipartite / Bank wage revision 2017.
We have to wait and watch. UFBU can’t remain silent for long.
For the History and customs of Bipartite please click the following link