The 10th bipartite wage negotiation between Bank Unions and Indian Bank's Association has kick-started. For the first time, unions are seeking a revision in pension, besides a 35% hike in wages.
The 10th bipartite wage negotiation between Bank Unions and Indian Bank's Association has kick-started. For the first time, unions are seeking a revision in pension, besides a 35% hike in wages. So will this add to the burden of public sector banks, reports CNBC-TV18's Gopika Gopakumar.
The wage hike is probably the longest bridge that banks will have to cross in a year or two from now and they have already started to work on it.
Bank Unions' have submitted their charter of demands to the Indian Banks Association under the 10th bipartite agreement. This once-in-a-year event will cover around 8.5 lakh employees from public sector and old private sector banks.
Bank Unions' have asked for a 30 percent increase in salaries to clerical staff and 35 percent increase in salary to the sub-staff.
It has also said that this revised pay structure should be effective from November 1 and will reflect the merger or will reflect both basic and dearness allowance along with the basic – the salary increase. Also, for the first time the unions have asked for increase or a revision of pension since 1986.
Pension has not been revised since 1986 and this is the first time the Bank Unions’ are calling for a revision in pension. Also, it wants the new pension scheme also to be withdrawn. Around 70,000 employees are currently under the new pension scheme and they want these employees to be shifted to the old pension scheme.