Bank employees are proceeding with their relay zone wise strike as declared. There is still no break through in terms of finalization of wage settlement. In the mean time IBA issued a press statement regarding status of wage revision negotiation. Salient features of the press release is reproduced below.
"The apex level workmen unions and officers’ associations submitted their Charter of Demands in October 2012 for wage revision. The management team under IBA took up bipartite talks almost immediately thereafter. With a view to increase profitability and market share, we proposed productivity linked compensation structure. Plan to introduce cost to company concept of compensation and splitting of wages into fixed and performance linked variable components were placed before unions/ associations. Unfortunately unions/associations rejected our proposals."
"As such, the banks are not in a position to accept the demand of the Unions/ Associations for 23% hike in salary and allowances."
"Considering the present paying capacity of banks, a hike of 11% on salary and allowances has been offered."
"Considering the financial constraints / depleting profits of banks, IBA advised unions/associations that IBA is not in a position to increase more than the last offer of 11% in . This works out to 12.5% on Bank’s establishment cost taking into account cost of superannuation benefits. However, IBA is willing to negotiate further if Unions/Associations reduce their demand substantially from 23%. Despite by the IBA and Chief Labour Commissioner (C) at the conciliation meeting held on 10.11.2014 not to go on strike and resolve the issue through bipartism, the Unions/ Associations did not pay heed to the appeals and went on strike on 12.11.2014. While IBA is always flexible and keen on early wage negotiations, the Unions/ Associations are stonewalling suggestions to improve productivity and profitability and demanding unaffordable wage increases. The relay zonal strike programme being launched by unions/ associations from December 2, 2014 is unreasonable, unethical and unwarranted. We appeal to the unisons/associations to give up the agitational path to the negotiating table."
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