Details of wage revision discussion held on 17-09-2019 between IBA and UFBU

We reproduce here the full text of Bipartite Talks held on 17.09.2019 between IBA and UFBU.
The IBA team was led by Shri Rajkiran G. (MD & CEO, Union Bank of India), Chairman of the Negotiating Committee. From UFBU representatives of four Officers and five employees organisations were present.
Discussion and decision taken are as under.
On Performance Linked Incentive Scheme:
In the presentation, IBA clarified that PLI scheme proposed by them is an additional incentive payable in addition to and over and above the mutually agreed wage revision quantum. The quantum of incentive payable would depend on growth in Operating profits and Return on Assets of each Bank each year after the declaration of annual results. IBA explained that the cost of such incentive would be exclusive of the cost of wage revision being discussed and finalized. IBA made it clear that the settled pay structure as the wage revision is based on the negotiations as usual and not linked to Bank’s performance linked incentive. The PLI scheme would be based on the performance of the Banks each year and not on the performance of the individual employees/officers. IBA is also open to discuss about their proposal on PLI in all respects and wanted the views and inputs of the UFBU for finalizing the performance measures formula including parameters and amount to be paid as incentive.
The UFBU representatives were agreeable in principle about the offer and ready to discuss the scheme further and would give their suggestions during the further course of discussions.
On Mandate issue:
IBA said since the UFBU has agreed in principle to discuss the PLI scheme, they would reconsider their earlier stand on the mandate issue to cover all officers up to Scale VII, and take a positive decision after consulting the Boards of the concerned Banks regarding the revised mandate from those Banks who had given the fractured mandate.

IBA’s improved offer:
During the discussions, IBA improved their offer from 10 % to 12 % hike in the pay slip cost of the wage bill. While welcoming IBA’s improved offer, UFBU explained that the offer is insignificant as per the expectations of the employees and officers in general and therefore not able to accept it. They requested the IBA team to improve their offer over and above what was settled in the last wage revision to discuss and decide the final quantum for the wage revision. Finally, UFBU requested the IBA to improve their offer to at least to the level where it was settled in the last wage revision to take the talks to the logical conclusion.
On 5 Day Banking:
With regard to unions demand for introduction of 5 Day Banking, IBA informed that they are seized of the issue and have taken up the issue with the concerned authorities and decision can be taken only after taking into account the viewpoints of various stakeholders connected with the issue. The UFBU constituents urged upon IBA to expedite their decision.
On Improvement in Family Pension and updating of Pension:
In response to unions demand for improving the present formula of family pension IBA informed that they are equally sympathetic on this issue and would further proceed in the matter after considering the additional cost involved, approval from higher authorities, etc.
With regards to updating of pension, IBA said that same to be examined in detail as it costs additional provision to the Pension Fund. UFBU representatives requested the IBA to provide them the details of the necessary data, so that the unions may also work out the cost implications through actuaries before discussing further on the issue.
On Increase in Ex-Gratia of Pre-1986 Retirees:
In response to Unions plea, IBA agreed to examine the matter of increasing the Ex-gratia amount being paid to the pre-1986 retirees.
On Exempted Pension Trust for private banks:
Unions pointed out that while public sector banks have exempted and own Pension Trusts, the private banks who are covered under Pension Settlement are not being permitted to have their own Bank-wise exempted Pension Trusts. Therefore it was suggested that at least for all the private Banks together a common exempted pension trust should be permitted. IBA agreed to examine the matter.
On Medical Insurance Scheme for the retirees:
UFBU representatives requested the IBA to take up with the United India Insurance Company for considering the reduction in the premium on the policy relating to retirees. However, IBA said that they can suggest suitable changes in the coverage, the ceiling on bed charges, etc. which would result in a reduction in claim ratio and premium and asked the views of UFBU in this regard.
On Exemption of GST on the premium on medical insurance policies:
In view of premium for a medical insurance policy it is becoming unaffordable by the retirees, the 18% GST on such premium is adding further burden on them, and UFBU requested IBA to take up the matter with the Government
Source: UFBU Circular