Money & Banking

Bank employees to get one-month advance salary, but unions say IBA move ‘unilateral’

K Ram Kumar Mumbai | Updated on October 01, 2019 Published on October 01, 2019

File photo   -  File photo

IBA says that this payment will be adjusted against the actual arrears payable after the outcome of the ongoing wage negotiation talks

In a bid to spread cheer among employees and officers this festival season, banks, under the aegis of Indian Banks’ Association (IBA), have decided to pay an adhoc amount equal to one month’s salary. Bank unions, however, expressed resentment at this decision, which they termed as unilateral.

Wage settlement talks

This announcement on adhoc payment comes in the backdrop of the industry-wide bipartite wage settlement talks not making much headway in the last two years. The wage revision for bank employees and officers became due on November 1, 2017.

IBA, in a communication to all banks participating in the 11th bipartite wage settlement talks, said the salary (basic pay and dearness allowance thereon) may be disbursed to all permanent workmen staff and officers on the rolls of banks as on November 1, 2017 (and are presently continuing in service) as advance against due payment of arrears of salary post signing of wage settlement/joint note.

As regards employees who joined the services of a bank on or after November 1, 2017, and up to March 31, 2019, the IBA said they may be paid an amount equal to 15 days salary.

“Workmen staff and officer employees may be advised by the concerned banks that the adhoc payment is being made to them as a gesture of goodwill by the management, and the amount being paid now will be adjusted against the actual arrears payable after the outcome of the ongoing wage negotiation talks,” said VG Kannan, Chief Executive, IBA. The four officers’ organisations in the banking sector – All-India Bank Officers’ Confederation, All-India Bank Officers’ Association, Indian National Bank Officers’ Congress and National Organisation of Bank Officers – in a joint letter to the convener of the United Forum of Bank Unions (UFBU), resented IBA’s unilateral decision to announce the adhoc payment.

“When UFBU is in talks with IBA on wage negotiation and the same is far from reaching any conclusion, they should have had the courtesy to discuss/consult UFBU before issuing the communication. We strongly register our protest against unilateral approach of the IBA,” the letter said.

S Nagarajan, General Secretary, All India Bank Officers’ Association, said the adhoc payment skirts the main issues, including starting the wage negotiation (covering all officers up to general manager rank) at a fixed pay of 15 per cent, keeping banks closed every Saturday, revision in family pension, and updation of pension.

He emphasised that bank managements will not be able to win the goodwill of employees by giving an adhoc payment when the wage revision has been hanging fire for nearly two years.

Trade union leaders say that while Central government employees get their hikes via pay commissions without much difficulty, bank employees, despite doing the government’s bidding by pushing financial inclusion schemes and working tirelessly during the demonetisation period, have to struggle to get their wage hike demands fulfilled.

Published on October 01, 2019
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.