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Wage Revision and HR Related Issues Discussed at During 2009

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   Wage / Salary Revision for Bankers - Negotiation / Talks Between  IBA and Bank Unions  - During 2009

Updation As on 21/12/2009:

 It is reported that the IBA has constituted a Small Committee of 5 members,(including 2 from the Confederation and one each from the other Officers  Organizations)  which will go into the nitty gritty of all the details connected with the construction of scales, apportionment of the cost on various headings including the superannuation benefits etc., so that it can meet as frequently as required and keep the working ready for the Negotiating Team for finalisation of the settlement. 

It is further reported that next  round of discussions with IBA is likely to be held in the first week of January 2010 on a date mutually convenient to all concerned.  The Small Committee  will meet shortly and workout the modalities for the purpose of finalizing their proposals for the consideration of the Negotiating Team.

[We would like to share with our readers that till date no major discrepancy has been reported in our Arrear Worksheet for officers.  Some people has raised doubts about the exact DA slabs that are likely to be merged and the factor that will be used for arriving at the DA from the remaining slabs.  We agree that final decision on these is still awaited.  We will keep abreast our readers as we get some more authentic news on this. Readers may continue to point out any discrepancy noticed]

Updation As on 11/12/2009:

We have received few emails wherein our readers have been good inputs about the recent talks.  If interested, you can CLICK HERE.

Discrepancies in Arrear Sheet Calculations : We have received certain inputs about the discrepancies in the Arrear Sheet uploaded as above.  Click here to view such detailsWe will correct the existing calculator after evaluating these dicrepancies pointed out by our esteem readers.

Updation As on 10/12/2009:

It is reported that today and yesterday meetings of UFBU and IBA were held to discuss basic approach for finalizing the wage revision based on MOU.  Some officers and workmen unions have also met.  Next round of discussions are now to be held in about 10 days time.

[We have been receiving number of emails asking for details e.g. date from which retirees will be eligible to join pension, how much employees have to pay to join pension scheme etc.  However, we are unable to answer these questions as at present these details are yet to be finalised.  We will upload the same as and when we get some authentic information.  Thanks for showing interest in the website.]

Updation As on 08/12/2009:

It is reported that next round of meeting between UFBU and the core group of the Negotiating Committee of the IBA is scheduled for 9th and 10th December for salary revision. (Mr. Ramesh Kumar Mudiraj has also sent an email in this regard).

We have been receiving some revised salary charts, but they are still not authentic.  However, as a number of readers have been asking for such charts, we give the same for information of the readers.  However, these are not reliable and still to be finalized.  Click here to view the charts.


Updation As on 27/11/2009:(Additional Information)

 It has come to our knowledge that it has also been agreed that the additional cost of pension on account of wage revision in excess of statutory contribution of 10% of pay will be shared equally between management and employees [13% of pay each] and the share of employees so calculated will be deducted from the agreed wage increase while revising salary and allowances.

Updation As on 27/11/2009:

We are pleased to update that UFBU has signed the minutes with IBA for increase of Rs.4816 crores wef 01/11/2007 (Rs. 2239 crores for officers and Rs.2576 crores for workmen employees)

Salient features as announced by UBFU on this day are as follows:

a) Annual wage increase of Rs. 4816 ( Rs. 2239 crores for officers and Rs. 2576 crores for workmen employees ) w.e.f. 1-11-2007.

b) All the existing employees who are now in PF scheme will be given an option to join the existing pension scheme.

c) All those who have retired after the date of Pension Regulations till date will also be given an option to join the pension scheme.

d) Full settlement on the above to be finalized within 90 days.

Now  UFBU is likely to work out the pay scales, allowances and other related issues and finalise the settlement at the earliest for expeditious implementation, payment of arrears, etc.


More authentic updates are still awaited.

Updation As on 22/11/2009:

At last some good news about the breaking of ice!

It is reported that a meeting of UFBU members will take place on 26th November, 2009.  Then, the meeting with IBA will take place on 27th November, 2009.  It is further learnt that an MOU is likely to be signed / finalized on that day on the broad understanding  reached so far i.e. 17.5% wage increase, second option for pension, sharing of cost of pension etc.


Updation As on 15/11/2009:-

We are sorry to report  that still we do not have any authentic good news for our fellow bankers.   No fresh date for next talks with IBA.  However, it is reported that a call has been given by AIBEA and AIBOA for a strike on 16th December, 2009 to protest against the Government’s reforms including privatisation in the banking sector and closure / mergers of State Bank associates.   Bankers who are already furious about delay in wage revision are wondering whether such strikes at this stage are necessary.


Updation As on 08/11/2009 :

Still there is no news about the next date of talks with IBA as it appears IBA wants to wear out these retired  union leaders who are not in touch with the mood of the general employees and officers.  IBA is trying that by delaying the next around of talks to the maximum extent possible they will frustrate these leaders who will be forced to sign on dotted lines.  Union leaders are not at a bargaining advantage at this stage,  as they have failed to get an honourable settlement at appropriate time due to their own politics. 

The best time to get a reasonable settlement  was around November 2007, when the new settlement had become due.   At that time  communists shared power with the government (most of bank unions are affiliated with communist parties)  and elections were around the corner.  Central Government employees were able to extract the maximum by hitting at the right time. 

It is surprising that Bankers are frequently asked by Communists to go on strike on issues which are their personal agendas and not wage settlement or improvement in working conditions of the employees.  They ask Bank union leaders to go on strike on petty issues which are related purely to their politics.    However, we have never heard any communist leader either on TV or newspaper, wherein they come openly to support an honourable settlement for bank employees or ask for All India strike in favour of bank employees.

Do you remember when did the last time any communist leader (like Somnath Chatterjee, Karat Parkash , SitaRam Yechury) has given any statement in favour of bank employees or taken up this cause with Finance Minister or Prime Minister or spoken about the same in Parliament?   Do you remember any contribution of communist leaders for better pay for bank employees when they shared power for over four years with Congress Government?  Did they ever made any strong (we are not even aware of weak) speech in Lok Sabha or Rajya Sabha in favour of pay parity of bank employees with Central Government employees?  Answer to all these are in negative.  However, all these MPs ensued that their salaries and perks are increased manifold.

However, sensing the mood of the bankers, unions are now desperately  trying to face save themselves and issue statements as if negotiations are going on with IBA.   Therefore, they meet among themselves issue statements giving impressions to gullible bankers as if matters are under strong discussions with IBA.    It is heard that a meeting of the UFBU was held on 4/11/2009, at Chennai.  Com P S Pillai (President, BEFI) presided over the meeting.  The following decisions were taken by UFBU:

The meeting took note of the negative approach of the Government in relation to the revised scheme of compassionate ground appointment / financial compensation to the family of the employees dying in harness and felt that the scheme as discussed and finalized between UFBU and IBA should be got expedited.

In respect of condition of the IBA that the entire cost of pension arising out of the wage revision to be adjusted from the proposed wage revision and that in the next settlement again another actuarial valuation should be carried out and the gap should be funded by employees sharing the same, after detailed discussions, the UFBU while rejecting the above conditions, expressed its view that the additional pension cost can be adjusted by sharing a portion of the same as was done in the 7th and 8th bipartite wage revision.

In respect of IBA’s condition that a new contributory pension scheme should be accepted by the unions from 1-4-2010 as a pre-condition for extending one more option for pension scheme, the UFBU felt that a mutually acceptable solution should be worked out to resolve the same as unilateral imposition of such conditions are not acceptable.

In respect of  IBA’s suggestion for introduction of the concept of fixed pay and variable pay for bank employees / officers, UFBU decided not to accept the proposal.

Based on the above, the meeting decided to pursue the issues with the IBA during the next round of talks to be held shortly and to expedite the conclusions as early as possible.

No union leader has the courage to respond to the numerous queries of the bankers who are anxiously waiting for honourable settlement. 

Updation As on 01/11/2009 :

There has been no good news on wage revision front.  Only some statements of union leaders have appears in some newspapers like Economic Times and Organisers.  "The bank employees and officers' salary revision are due from November 1, 2007 ...the present offer of IBA for 17.5 per cent increase in salary is far below the expectations. We want at least 25 per cent," AIBOC General Secretary G D Nadaf told at a press meet on the sidelines of the tenth National Council Conference of United Bank Officers' Association.   However, we have yet to hear any concrete proposal from IBA or some union leaders. It appears that Bank employees can only wait and pray for an early and some respectable settlement.  Lets hope new month (NOVEMBER) brings some good news.

Updation As on 23/10/2009 :

Bank staff and officers are keenly awaiting for progress on wage revision front.   All bankers are anxious and restive.  However,  there is no progress and it appears that deadlock is continuing. 

It has been learnt that UFBU has talked to the IBA Chairman and asked for fixing up the date for the next round of talks as no discussions since 24-9-2009.  However, IBA seems to have informed that  there is no change in the stand of the IBA/Government on various issues viz new pension scheme, costing of pension cost, sharing of deficit in Pension Fund during the next wage revision, etc.

UFBU has been requesting IBA and Government to sort out these various expedite the settlement. UFBU has been requesting IBA Chairman for fixing a date for next round of talks.  However, IBA feels that unless some issues are sorted out, there will be  no purpose except repeating the respective standpoint. 

However, it has come to our knowledge that  next round of talks may be held in the first week of November, 2009, as all union representatives have been advised not to have any other engagements or meetings during that period.    In case any date is proposed by IBA, then UFBU may  be meeting to draw its strategies, before  the Talks with IBA.   In the meantime, BEFI has also advised its  members are not to be swayed by any rumor.

Thus, we can say that as on date, the matter stands as it was on 24th September, ’09.


Updation As on 04/10/2009:

Still no date has been declared for the next round of negotiations.  However, some further details about the negotiations held on 24/09/2009 have come to our notice, which we would like to share with our readers:-

(a) IBA is not agreeable for further improvement over the offer of 17.5%.  Rather IBA wanted to make a provision for performance related incentive (within the overall limit of 17.5%.  It has come to notice that IBA was insisting  that 1.75% of the load should be earmarked for introduction of variable pay concept in Banks.  However, UFBU appears to have rejected the same.

(b)  IBA confirmed that as regards pension option they are willing to go by the understanding reached on 9th June,   but wanted introduction of the new pension scheme for the new recruits in the industry, including  SBI.   IBA informed that NPS date will be 1.4.2010 and is firm on this.  Unions wanted  change in IBA’s stand to make the date open for future discussion.

(c) On outsourcing IBA expected unrestricted power to outsource non core function by Banks. Unions refused to accept this in the format proposed by IBA, but agreed that they are open for discussion on the issue.

(d)  In respect of compassionate appointment / ex-gratia payment, IBA said that they are awaiting clearance form the government.  However,  UFBU wanted immediate implementation of the scheme already agreed upon

(e) Allowance Carrying Posts: IBA proposed some changes looking to the present day needs of the industry.  UFBU expressed openness to sort out the issue.

However, the talks remained inconclusive.


Updation As on 25/09/2009:    (AIBEA has released the following details on talks between IBA and Bank unions)

Bipartite talks were held on 24/09/2009 with the IBA in Mumbai. IBA was represented by Mr. M. V. Nair, Chairman and other members of the Negotiating Committee. From our side representatives of all our unions participated in the talks.

All issues like quantum of wage increase, option to join pension scheme by employees in PF, extending the option to retirees, Compassionate Appointment / Financial Compensation Scheme, etc were discussed in the meeting. IBA took up their issues like outsourcing, streamlining the special pay posts, etc. Issues like accounting the cost of pension, introducing new pension scheme etc was also taken up by them. Discussions were held to take the issues forward with amicable solutions. While some progress has been made to sort out the various issues during today’s talks, there are also some hurdles and difficulties which are needed to be overcome.

It was decided to discuss these issues further in next round of meeting and endeavor to resolve the issues at the earliest to reach broad understanding on the issues and to expedite the final settlement.

The discussions have now entered a crucial stage and hence we need to be extremely careful while taking all efforts to finalise the settlement.

Efforts are on.


Updation As on 24/09/2009 :

The initial feedback received indicates about some progress in talks.  These will be resumed later on.   Details are awaited.


Updation As on 14/09/2009 :

IBA had fixed 12th September, 2009 for the next round of Talks. However, this date was not convenient for some, and thus it was requested to  revised the date for the Talks.    Now it is reliable learnt that  the Talks will  be held  on  24th September, .2009 (Thursday) at IBA Office, at 11.00 AM.

Earlier a meeting of the UFBU was held  in Chennai, which was attended by leaders of all the 9 constituent unions and the same was  presided over by Com. K.S. Shetty, President, AIBOC..


Updation As on 09/06/2009

UFBU  defer strike on account of fruitful talks with IBA

It has been reported that United Forum of Bank Unions (UFBU) have defer their strike call for 12th June, 2009, in view of the  fruitful talks with IBA

Although the detailed circular from UFBU is awaited, but the reports indicate the following:-

  • The precondition that the unions should agree for new pension scheme has been deferred.  IBA stated that the existing pension scheme will continue to be applicable to all new recruits up to 31 March 2010.  However, UFBU wanted this date to be extended  up to 31 October 2012, when matter can  be reviewed..
  • Both parties have agreed to meet again very shortly to finalise the understandings.
  • The forum has informed that as reargds sharing of additional pension cost, IBA and bank unions have agreed that banks would take a share of Rs 4,200 crore and employees / officers at Rs 1,800 crore.
  • IBA was willing to improve their offer from 15 per cent to 17 per cent subject to approval by Managing Committee of association. However, UFBU wanted IBA to further improve their offer to 20 per cent.

Unions expect to conclude negotiations in this month itself.

Updation As on 27/02/2009

G.D. Nadaf, General Secretary,  AIBOC in a circular dated 27/01/2009, has advised as follows

Further to the last round of Talks  with IBA held on 21/2/2009, in terms of the decision taken in our UFBU meeting held thereafter, a Delegation of UFBU met Mr. Narayanaswamy, Chairman of IBA at Chennai on 23/02/2009, and submitted a memorandum on our above demands and seeking expeditious resolution without any precondition.

The UFBU Team had also called on the Union Minister for Labour, Sri. Oscar Fernandes, on 26/02/2009, and a memorandum on demands was submitted.  It was impressed upon him to intervene in the matter so that industrial unrest is avoided in the banking sector. He assured to look into the matter.

The UFBU Team also called on Sri. Pranab Mukherjee, Minister of Finance, Government of India  on 27/02/2009,  and submitted a memorandum to him explaining  demand for option for Pension and Salary Revision.  He was informed that in terms of the MOU signed between the IBA and UFBU on 25/2/2008, while discussions have taken place on our demand, the approach of the IBA in insisting upon an unknown new pension scheme for the future employees is unfair. It was further informed to  him that UFBU is ready to discuss the issue with an open mind upon receiving the IBA’s proposed new pension scheme and that this should not be made a precondition for finalising our present demand for pension option and wage revision.  It was also submitted that the delay in the settlement of our demands is causing anxiety and restlessness amongst the membership. Mr. Pranab Mukherjee listened to our demands patiently and assured to examine the same and advise IBA suitably in the matter. .

Updation As on 21/02/2009

Today (21-Feb-2009), another round of talks took place with the IBA in Mumbai .  UFBU has today reported that the talks on Wage Revision & Pension have remained inconclusive / failed.  They have reported tht IBA has becomes too adamant    The following is the summary of the talks:

1. Pension option: - IBA insisted on introduction of new pension scheme i.e. defined contributory scheme on the lines of the scheme unilaterally introduced by the Central Government since 2004. After discussions, IBA stated that while some option can be given to the new recruits to choose between the existing pension scheme and the new pension scheme, within a period of three months, such an option facility can be available only for one year and thereafter, the new pension scheme should alone be operative for the new recruitees.

After mutual consultation,  UFBU offered the following:

) Existing scheme to continue.
b) IBA should give the full details of their proposed new pension scheme.
c) After study of the new scheme, IBA & UFBU can discuss the feasibility of introducing the new scheme after one year for the new recruitees.
d) In the meantime, the issue should be delinked and option for the existing employees should be extended by finalizing the sharing formula without any further delay.

IBA informed that they do not have any mandate to agree to our proposal but agreed to go to their Managing Committee scheduled on 27.2.2009 to discuss our proposal and thereafter would come back to us. However IBA reiterated that any resolution of our demand for pension option for the existing employees will have to be comprehensively resolved including a scheme for the new recruits.

2. Wage Revision:-
On wage revision, IBA informed that they do not have mandate to go beyond the earlier offer of Rs. 3600 crores and hence cannot improve their offer any further.

In the light of above approach of the IBA, the UFBU met thereafter and felt that IBA is trying to go beyond the MOU of February, 2008 wherein no such conditionalities were informed by IBA on pension scheme. The meeting felt that in the matter of wage revision also, the IBA attitude was unreasonable since given the reasonable demand submitted by us, their offer falls far short of making any ground for a settlement.

Hence, the meeting decided that while the matter will be  immediately taken up with the Government and IBA Chairman to impress upon them to expedite the resolution of  demands.   Employees have been asked to be ready  for agitation programmes including strike action should the IBA and Government try to impose that their conditions and thus delay settlement.

The meeting also decided to immediately meet and submit a memorandum to Finance Minister, Labour Minister, Chairman of IBA and Chairman of Negotiating Committee in this regard.



 Appeal to Bankers :  In case you have any further confirmed updation, you can send the same to email address :  Any original articles / analysis relating to banking industry can also be sent to the same email address.

Updation As on 12/02/2009

Mr. G.D. Nadaf, General Secretary,  AIBOC in a circular dated 12/02/2009, has advised the details of the discussions with IBA on 11/02/2009 to its members.

Another round of discussion was held today between IBA and UFBU. The IBA was led by Mr. M. V. Nair, Chairman of the Negotiating Committee, while UFBU was represented by our constituent unions.

1. Pension Option : In today’s meeting IBA informed that the report of the common actuaries relating to the additional cost for extending pension option to the past retirees from 1996 has been received which has identified an additional net liability of around Rs.3,000 crores. IBA indicated that the issue can be resolved on the same basis as will be finalised for the existing PF optees who are in the banks’ service. It was decided to discuss the issue further.  However, IBA insisted that the new employees who will henceforth join the banks should be governed by the new pension scheme as has been implemented by the Government for new employees from 2004. From UFBU, we vehemently objected to this condition and demanded that the future employees should also be governed by the existing pension scheme. In view of the divergent views on the matter, it was decided to discuss the matter further in the next round of meeting.

Regarding sharing of the additional cost, from UFBU we maintained our earlier stand that Rs.1,500 crores can be borne by us while the balance by the banks. The IBA, while informing that they would like to resolve the issue by discussion, did not indicate any further offer than that was made in the last meeting.

2. Salary Revision : In this meeting, we emphasized the need for a substantial increase in the offer made by the IBA. After discussion, IBA came forward to offer an increase in wages of Rs. 3,600 crores for the employees and officers put together as against Rs. 2,750 crores offered in the last round of discussion. On behalf of four Officers’ Organisations, we insisted for maintaining external parity and better salary package. The non monetary issues like regulated working hours etc. have to be settled with the salary revision negotiations. We demanded separate meetings with the Officers’ Organisations to discuss on salary revision and other issues pertaining to Officers’ Community.  It has been decided that very shortly further round of discussions will take place on the above issues with a view to find an early and amicable resolution of our demands.


UPDATION ON 23/01/2009

Mr. G.D. Nadaf, General Secretary,  AIBOC in a circular dated 22/01/2009, has advised the details of the discussions with IBA to its members. The following is the gist of discussions held with IBA on 2101.09.

(a) Compassionate Appointments / Financial Compensation Scheme:

Based on the discussions held and broad understandings reached so far, it has been decided to forward our jointly agreed views to the Government on the revised scheme providing for Compassionate Appointments under certain contingencies like death while on duty due to and financial compensation to the family with a minimum of Rs. 3. 5 lacs, Rs. 4.0 lacs & Rs. 4.5 lacs and with a maximum of Rs. 7 lacs, Rs. 8 lacs and Rs. 9 lacs to Substaff, Clerks & Officers respectively. The scheme will be made effective after approval by Government and applicable to all cases of deaths after July, 2004, ie., the date after new Cash Compensation Scheme was implemented in Banking industry where no benefit was extended to the family.

(b) Pension Option: On the issue of another option for existing PF Optees to join the Pension Scheme, after a lot of discussions, IBA offered to take a share of Rs. 3500 crores out of the total deficit of Rs. 6000 crores, as per the report of the panel of common actuaries. UFBU offered to share Rs. 1500 crores and the remaining Rs. 4500 crores, to be borne by the 25 banks put together. IBA further proposed that the new entrants in the banks are to be covered by a new pension scheme based on defined contribution. UFBU expressed its apprehensions and disapproval of this proposal of the IBA. It was decided to discuss the issue further with a view to find an early and amicable solution to the issue.

(c) Wage Revision: On our demand for wage revision, IBA made an initial offer of Rs. 2750 crores of wage increase to the employees and officers. This works out around 10% increase in the wage cost. From UFBU we expressed our dissatisfaction over the offer and urged upon the IBA to substantially improve their offer to a mutually acceptable level. IBA also urged upon the unions to come forward to find a solution to their issues like need for outsourcing of non – core services, etc. The IBA also made a presentation on comparing our salary and allowances with CTC based concept.

2. It was decided to continue the discussions further in the next round of talks to be fixed up shortly, on a mutually convenient date.

3. As regards wage increase for Officers’ Community, we have reiterated our demand for respectable wage package to commensurate with the risk, responsibility and to restore the external parity. We have also submitted a letter addressed to the Chairman of IBA, urging upon him to initiate dialogue to fix regulated working hours for officers. A copy of the letter is sent to the CMDs of  Banks for information and necessary action. We shall circulate the same separately.

4. Comrades, UFBU / Confederation is endeavoring its best to reach expeditious and satisfactory solutions to our demands. In the meantime, our affiliates / members are requested not to be misled or confused by any wrong and baseless reporting in the newspapers, etc.



Updation on 14/01/2009:

Mr. G.D. Nadaf, General Secretary,  AIBOC in a circular dated 13/01/2009, has advised the details of the discussions with IBA to its members. The following is the gist of discussions held with IBA on 12.01.09.

 1. Compassionate Appointments: Further to the discussion amongst IBA and UFBU in the last round of meeting on compassionate ground appointments / financial compensation to the family of employees who die while in service wherein broad understanding were arrived at on the revised schemes. In today’s meeting we have taken up the issue with IBA for further possible improvements in age criteria and minimum compensation. It was decided to take up the matter for further discussion in the next round of talks.

 2. Pension Option: On the issue of sharing the cost of Pension Option, the IBA opined that at least 50% of Rs.6000/Crores, being the additional cost of pension to 2.66 lac CPF Optees should be borne by us and the remaining cost may be met by the Banks. From our side, we offered that 15% of the extra cost can be shared by us. After discussion, it was decided to take up the issue again in the next round of talks.

 3. Salary Revision: As regards our demand for salary revision, separate discussions were held with the Workman Unions and Officers’ Associations respectively. On behalf of four Officers’ Organisations, we insisted that, Officers deserve better salary package and non-monetary issues such as regulated working hours etc., should also be considered by the IBA along with the negotiations on salary revision. We also requested the IBA to look into our demand for improvements in staff loans, transportation charges etc. referred to them by the Confederation on priority basis. While further explaining our demands and proposals we wanted the IBA to come out with their offer as to how much additional wage increase can be given by them. IBA assured that in the next round of discussion they would give their reactions in this regard. On construction of pay scales, it has agreed in principle that the revised pay scales would be constructed on 2836 points of Consumer Price Index (Average Index of July– September 2006).

 4. Next Meeting: It has been decided that the next round of Negotiation Committee level discussions will be held on 21.1.2009. We also reiterated our stand that, entire exercise has to be completed before the end of February 2009.