The bank unions have taken a strong exception to the IBA threat of pulling out of the negotiations process. In a statement issued on Wednesday, the United Forum of Bank Unions--the umbrella organisation of the nine unions-- said: "We are constrained to observe that the IBA's statement --indicating that the bank unions are backing out from the committments relating to superannuation benefits, as agreed in the memorandum of understanding (MoU) signed on March 11, 1999-- is misleading, mischievious, unwarranted, provacative and a distortion of facts."

In a statement issued on Tuesday, the bankers' body had threatened to walk out of the seventh bipartite wage settlement unless the trade unions agree to accept the terms of the MoU signed inMarch.

"Any deviation in the understanding and interpretaton of the agreed points will amount to digressing from the MoU in which case the possibility of the member banks, who are already under tremendous financial pressure, pulling out en masse from the negotiations cannot be ruled out," IBA chief executive and secretary MN Dandekar had said.

The unions on Wednesday said that the IBA is trying to back out from its offer made on July 24, 1999 of negotiatng the cost of pension. "It is unfortunate that the bankers' body is indulging in dialogue of threats and intimidations, instead of negotiations," the forum statement said.

The unions have reiterated their committment to the MoU and have demanded that the IBA fix up a immediate date for negotiations.

Reacting to the unions' statement IBA secretary and secretary Dandekar said: "The banks are not in a position to offer more than 12.25 per cent hike as outlined in the MoU. Under no circumstances, the load factor can be changed." The IBA managementcommittee is meeting on September 27 to take stock of the situation.

The unions have been arguing that costing of pension for purpose of wage revision should be restricted to only 10 per cent of the basic pay per annum and the additional cost of 16.5 per cent cannot be carved out of the wage packet. This means that the additional cost will be over and above 12.25 per cent.

The unions' argument is that if the entire pension settlement is included in the total wage load, only 73.5 per cent of 12.25 per cent would be left for distribution among the various wage components.

The employees unions have urged IBA to come back to the negotiating table and settle the much awaited industry level settlement covering a million of workmen and officers. "We hope the IBA shall not force the employees to go to the streets," the statement said.