Bank unions have told the Indian Banks' Association that its proposal of offering a 6 per cent wage hike and an additional wage hike based on the performance/profits of individual banks does not meet their demand for increase in wages.

Responding to the 6 per cent wage hike offer, C H Venkatachalam, General Secretary, All India Bank Employees' Association, said: "We pointed out that their (IBA's) offer is too inadequate and we asked them to improve their earlier offer."

IBA proposed that in addition to the 6 per cent hike offered by them which would be common to all banks, an additional wage increase can be worked out through a scheme by which, annual increase in emoluments can be offered based on the operating profit and return on assets of the individual bank with a view to add an element of performance-linked compensation over and above the uniform pay structure.

IBA, while stating that they are not averse to increasing their 6 per cent offer, wanted UFBU (the United Forum of Bank Unions) to consider its proposal looking at the present varying operating profit of banks and consequent paying capacity. IBA proposed that UFBU, the umbrella body of nine bank trade unions, may study its proposal and come out with suggestions or alternative proposals for its consideration.

IBA also informed UFBU to revise the demand in terms of total cost to arrive at a negotiated solution. It was decided that the issue would be further discussed in the next round of discussions.

Venkatachalam said:"IBA sought the reaction of UFBU to its proposal. From UFBU, we have pointed out that its proposal based on the performance/profit of the banks is not an answer to our demand for increase in wages due to inflation, price rise, cost of living, increased workload and job profile of bank employees and officers. We reiterated that the IBA’s offer of 6 per cent hike should be substantially improved upon."

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