The Hindu Business Line : Bank unions happy with wage accord

The Indian Banks' Association (IBA) and representatives of workmen unions and officers' associations agreed on a wage increase entailing an outgo of Rs 2,200 crore on a yearly basis for workmen and officers put together.

The increase at 13.25 per cent will be Rs 1,288 crore per year for workmen and Rs 912 crore per year for officers. A memorandum of understanding to this effect is expected to be signed shortly.

A spokesperson for the All-India Bank Employees Association (AIBEA) said, "The settlement has been better than our expectations and all parties are satisfied. In 2000, during the seventh bipartite agreement, we got only a 12.25 per cent hike in wages. Compared to that, we have got 13.25 per cent this time around, we think it is an achievement."

"Mobility issues addressed by the wage agreement have provided banks a breathing space," said a senior personnel officer at a public sector bank.

There has been a change in the outlook of clerical staff, who have begun thinking that moving to other locations might bring fresh business, said a banker.

"The benefits of improvement in customer service and generation of new business will outweigh the costs of this agreement," said a senior personnel officer at a public sector bank.

A union official at a public sector bank said, "This wage settlement is an achievement for us. The unions are content with the agreement and as the banks are in profit, it is not difficult for them to provide the increment."