13th January Bipartite talks between UFBU and IBA breaks down

During the course of the bipartite talks on 13/01/2020, IBA went on the back foot on some of the issues, which was earlier considered positively.

Initiating the prelude speech IBA Chairman Shri. Rajnish Kumar narrated the general scenario in the banking sector and the constraints under which all of us were working, particularly in the public sector banks and stressed that demand for wage revision will have to be resolved keeping these constrains in mind to keep the competitive edge. He also pointed out the job security available in PSBs which cannot be overlooked while discussing the remuneration package.

After the introductory speech, IBA side stated it was difficult to improve their earlier offer and the distribution will have to be within the overall quantum offered. IBA presented its offer as under.

Wage revision at 12.25% increase with 2% loading

The merger of special allowance: Not possible due to cost implication.

Revised PLI offer:

It was clarified that a Bank which will not register net profit but an increase in operating profit is more than 5% the PLI is limited to 10 days (2.75%)

In lieu of demand of Unions for increasing the PL encashment at the time of retirement, IBA offered 5 days encashment of PL every year.

IBA informed that they are not ready to accept 5 days banking.

Improvement of family pension IBA is already seized in it.

Pension updating: IBA said they will study the cost factor before taking decision on this.

UFBU constituents did not accept the above offer of IBA. Later on, in a meeting of UFBU constituents, it was decided to launch agitation and strike actions for a respectful wage revision.