M A I N   N E W S

Banks sign wage accord

MUMBAI, March 27 (UNI) — The Indian Banks’ Association (IBA), representing 27 public sector banks, 17 private sector banks and 11 foreign banks today signed a bipartite settlement with three workmen unions on wage revision and other service conditions for a period of five years beginning from November 1, 1997.

The three workmen unions included All-India Bank Employees’ Association (AIBEA), National Confederation of Bank Employees (NCBE) and Indian National Bank Employees Federation (INBEF).

A separate settlement has also been signed with Bank Karmachari Sena Mahasangh (BKSM) representing the workmen union, here.

The salient features of the settlement include total wage increase 12.25 per cent (as per base level wages for the year ended March 31, 1997) against 10.5 per cent total wage hiked in the last agreement, increment in wage revision recorded over Rs 4000 crore for total five years (Rs 817 crore per annum).

Seven lakh workmen from all over the country will benefit from the settlement, full impact of which will be felt from November 1, 1999 as the phasing of payment of arrears will start from November 1, 1997.

The payment of arrears of the three weak banks like Indian Bank, UCO Bank and United Bank of India may be re-scheduled by the management of the banks in consultation with their respective workmen unions.

Negotiating committee consisting of IBA chairman A.T.Pannir Selvam and three unions leaders apart from NCBE President L.Balasubramanian and General Secretary Y.Tharaknath and INBEF General Secretary R.P.K. Murugesan signed this agreement.

However, Bank Employees Federation of India and National Organisation of Bank Workers did not sign due to differences on issues relating to computerisation and deployment of staff.

The IBA chairman told reporters after signing of the agreement that this would increase the burden on the banks by about 10-15 per cent as against the previous agreement.

IBA Chief Executive and Secretary M.N. Dandekar said that a separate settlement had also been signed with Bank Karmachari Sena Mahasangh (BKBM).

In a statement issued here the representatives of IBA said this was the final curtain on the year-long negotiations between the parties to convert into a settlement an MoU signed on March 11, 1999, providing for 12.25 per cent overall increase in wage Bill, including superannuation costs as on March 31, 1997.

The settlement, covers revision in pay scales and allowances and also provides for extension of computerisation to cover 70 per cent of Banks’ business and deployment of staff to be mutually settled at bank level.

The range of monthly increase in emoluments ranges from Rs 400 to Rs 1500 for clerical staff and from Rs 350 to Rs 800 for sub-staff. The revised pay scales for clerks and sub-staff are as under:

1. At 1684 points of index (1960=100), clerks: Rs 3,020 to Rs 8,980, sub-staff: Rs 2,750 to Rs 5,000.

2. DA shall be on every slab of quarterly rise or fall of four points in index over 1684 points.

3. HRA shall be at 8.5 per cent, 7.5 per cent and 6.5 per cent at metro centres, Rs 2 lakh and above centres and below Rs 2 lakh centres, respectively. Centres below 10000 have been merged with 10,000 - two lakh centres for HRA payment.

4. There is increase in CCA, hill and fuel allowance, transport allowance and other allowances like halting allowance etc.

5. The total amount of increase in wage Bill is Rs 818 crore covering all banks concerned.

6. The IBA has agreed to forward to the government, the unions’ request for one more pension option to switch over to pension scheme.

7. The total load has been agreed to be phased over with basic pay and DA, ad hoc increase for part-time employees from November 1, 1997, pension, PF and special pay from April 1, 1998 and all other items from November 1, 1999.

8. Arrears payable under this settlement would be disbursed within 90 days from the date of settlement.

9. In respect of the three weak banks viz. UCO Bank, United Bank of India and Indian Bank covered by the settlement, the issue of arrears disbursement will be mutually settled at the bank level.