Bank association against Khandelwal recommendation of variable pay.

All India bank Officers Confederation strongly opposed Khandelwal recommendation of variable pay.
On behalf of the organisation, Mr Nadaf, Gen. Secy. has sent a communication to IBA opposing the issue on 2.11.2011. We represent the communication of Mr Nadaf to IBA hereunder :-

" We are surprised to notice that, in the recent past, calculative moves are made in the press in different parts of the country, to give vent to the various recommendations made by Mr.Khandelwal in his report. It has been opposed vociferously by the unions in the Banking Industry, both under the banner of United Forum of Bank Unions as well as the Confederation. We have demanded thorough discussions with IBA on some of the provocative recommendations, which aim at unsettling several Bipartite understandings, that have been signed between the IBA and the Confederation, including the 9^th Bipartite Settlement.

2.     Our attention has been drawn to the recent press reports appearing in the prominent financial papers. Wherein a reference has been made to the initiative of the Government indicating that, a communication has been sent by them to the IBA seeking their views on the introduction of the concept of Variable Pay in the Banking Industry. The move of IBA to form a Small Committee consisting of three CMDs of member Banks, in order to formulate the views of the IBA. We are surprised about these developments. The IBA is conscious about our stand on the issue. The issue also figured in the last UFBU strike, wherein the entire workforce across the country expressed their dissenting voice against the report of the Khandelwal Committee in an unequivocal term demanding scrapping of the report.  These developments should have prompted the Government to bury the report, which is not in the interest of the Banking Industry.

  3.     It is in this background, we wish to reiterate our position that the Confederation is against any attempts on the part of IBA towards new initiative to give life to the questionable recommendations of Khandelwal Committee Report. Its objective to bring the concept of variable pay in the banks contrary to the existing time tested system of negotiations on a regular basis for revision of salary at periodical intervals. The new initiative will only result in total chaotic condition in the banking system leading to industrial unrest across the country in banking industry. We are also against change in the recruitment policy and unilateralism on bilateral   issues at Bank level. We therefore request you to kindly examine the issue in the right perspective and send an appropriate communication to the Government to avoid unnecessary confrontation with the Unions / Associations in the banking industry."