The latest round of negotiations, which ended with the signing of the agreement on Wednesday, had been ongoing for nearly three years. The workers` unions did not accept this offer. The next meeting will decide on the final agreement. Subsequently, the President of the IBA called on union leaders to increase the offer to 15% of the billing costs. But he did not accept union demands such as public holidays every Saturday and Sunday. Merger of special allowances with base salary. “Today`s agreement provides for a 15% increase in the payroll,” said Sunil Mehta, IBA Chief Executive. In order to give a sense of competition and reward performance, the concept of performance compensation was introduced for the first time. “The Association of Indian Banks is pleased to announce the conclusion of the 11th bilateral wage negotiations with trade unions and banking associations, which are expected to come into force on November 1, 2017. The agreement reached today (Wednesday) provides for a 15% increase in the payroll,” IBA Chairman Sunil Mehta said in a statement.
The 15 per cent pay increase would apply over a five-year period starting November 1, 2017. A detailed two-part count or joint communiqué was signed with the UFBU and also BKSM (Bank Karamchari Sena Mahasangh), who were parties to the agreement, according to the statement. Once every five years, the Indian Banks Association (IBA) and bankers` unions negotiate salaries for more than 8 Lakh bankers working in public sector banks. However, Finance Minister Nirmala Sitharaman (FM) told the IBA general meeting on Tuesday that retired bank employees should be treated in the same way as the defence sector. Devidas Tuljapurkar, Secretary General of the Maharashtra State Bank Employees` Federation, said the wage bill increase of 7.898 billion euros would apply to all public banks (PSBs), former private banks, some foreign banks and regional rural banks (RRBs). The wage review agreement reached on Wednesday will come into force from November 1, 2017 and provides for a 15% increase in the payroll, IBA CEO Sunil Mehta said in a statement. About 37 banks, including public, private and foreign banks, have instructed the IBA to negotiate wage increases for employees with unions. Nearly 3.79 lakh officials from public sector banks and nearly 5 lakh bankers from public sector banks, older private banks and foreign banks would benefit from the wage increase. The new wage revision would represent an additional annual outgo of UK 7,898 for banks.