Financial Daily from THE HINDU group of publications
Monday, Apr 10, 2006
Financial Daily from THE HINDU group of publications Monday, Apr 10, 2006 |
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Public Sector Banks Money & Banking - Trade & Labour Unions SBI strike called off Our Bureau
Suspense ends All employees earning a basic pay of Rs 21,040 would get pension at 50 per cent of that amount, while those earning above that level would get 40 per cent for the incremental amount above Rs 21,040 "subject to a minimum of 50 per cent of Rs 21,040." The financial implications within the financial capacity of SBI. SBI unions have assured that the staff would resume work on Monday.
The Finance Minister, Mr P. Chidambaram, with the Additional Secretary, Banking, Mr Vinod Rai, and the SBI Chairman, Mr. A. K. Purwar, addressing a press conference at North Block in the Capital on Sunday. - Ramesh Sharma
New Delhi , April 9 The seven-day strike by employees of SBI has been called off. After hectic day-long negotiations on Sunday between the management and the unions in the presence of top Finance Ministry officials, a new formula on the contentious pension issue was agreed upon by all the sides. Under this, the fresh `cut-off' of basic pay for determining pension has been increased to Rs 21,040 from Rs 8,500. Speaking to newspersons, the Finance Minister, Mr P. Chidambaram, said that all employees earning a basic pay of Rs 21,040 would get pension at 50 per cent of that amount, while those earning above that level would get 40 per cent for the incremental amount above Rs 21,040 "subject to a minimum of 50 per cent of Rs 21,040."
Satisfactory pact
Describing the agreement as "satisfactory," he said that: "I have always held that the present cut-off was irrelevant and outdated. Both sides (management and unions) have correctly readjusted the cut-off." The talks were held after the unions responded to the Finance Minister's invitation extended late on Saturday to hold further negotiations. On the financial implications of the settlement, Mr Chidambaram said: "The financial implications are within the financial capacity of SBI." Mr Chidambaram also said that the revised package is not expected to result in similar competitive demand from other public sector banks. "Other nationalised banks have their own formula. SBI always had its own formula. The last industry wage settlement of 2005 clearly said that the pension clause did not apply to SBI. The issue has been resolved today." He added that the SBI unions have assured that the staff would resume work on Monday. "Customers have been put to some inconvenience but they should understand the circumstances. They would continue to get excellent services from SBI." On whether there would be any loss of salary for the striking employees, Mr Chidambaram said: "All these issues would be settled through the normal course and through normal rules." Reacting to the settlement, Mr Shanta Raju, General Secretary of the All-India State Bank Officers' Federation, said that the agreement was to the "mutual satisfaction" of all parties.
Related Stories: More Stories on : Public Sector Banks | Trade & Labour Unions | Pension Plans | State Bank of India
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