Mumbai, Nov 1: Bank unions have softened their stand on the issue of pension costing for arriving at a wage revision under the seventh bipartite wage settlement talks with the Indian Banks Association (IBA).The IBA insists that costing of pension at 26.5 per cent of the basic pay of bank employees should be included in the 12.25 per cent wage hike. The increase in wages was agreed between IBA and United Forum of Bank Unions (UFBU) in a memorandum of understanding (MoU) signed between the two sides in March this year.
The unions had taken a stand that costing of pension should be just 10 per cent of the wage hike and any costing above this point be borne by the banks and not the employees.
The unions, in a meeting with the IBA brass last week discussed this contentious issue and the two sides are said to be scaling down their demands to hammer out a settlement to the impasse.
"IBA's stand at the meeting remained that costing of pension should remain the same at 26.5 per cent of the wage hike, with both banks and employees sharing 8.25 per cent each of the extra 16.5 per cent," a source said.
"Bank employees are ready to share 5-6 per cent of the revised costing of pension over 10 per cent of the basic pay. In the banking industry, employees have the right to opt for pension in lieu of provident fund (PF)--a 10 per cent deduction from the basic pay. Therefore, PF and pension should be treated at par and employees contribution should be limited to 10 per cent of the 12.25 per cent hike," the source added.
The source added that the unions have mooted the idea of the employees taking an extra 5-6 per cent in the costing for pension to avoid the talks reaching a deadlock.
Confirming the willingness of bank unions to make adjustments, IBA chief executive and secretary MN Dandekar told The Financial Express that he was hopeful of a final solution to the issue soon. "The unions have asked for some more time to enable them to consult their associates. The unions have stated that they would get back to us in 2-3 days," Dandekar said. The next IBA-UFBU meeting is likely to be held this week.
The UFBU is an umbrella union representing nine bank unions--four representing bank officers and five clerical and subordinate staff unions.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.