Bank unions defer June 12 strike as IBA hikes wage offer

With Indian Banks? Association (IBA), the official trade body of bankers improving its offers on wages and pensions, the United Forum of Bank Unions (UFBU) has deferred strike called by it on June 12 .

A decision to this effect was taken by UFBU after a meeting with the IBA?s negotiating committee in Mumbai on Tuesday, which was chaired by MV Nair, chairman and managing director of Union Bank of India.

As a matter of reconciliation, IBA is likely to meet the UFBU leaders possibly next week to finalise the remaining issues.

CH Venkatachalam, convener of UFBU said that on sharing of additional pension cost, it has been agreed that banks would take a share of Rs 4,200 crore and employees and officers would contribute the remaining burden of Rs 1,800 crore.

Total burden on pension liabilities, as calculated by the actuaries panel, which was assigned by the IBA in consensus with UFBU, amounts to Rs 6,000 crore.

While IBA has improved its offer of wage hike to 17% from its earlier offer of 15%, UFBU wants IBA to increase it to 20%. The precondition that the unions should agree for New Pension Scheme (NPS) to be made applicable to the new recruits would not be insisted upon. IBA stated that the existing pension scheme would continue to be applicable to all new recruits up to March 31, 2010.

However, UFBU stated this should be extended up to October 31, 2012 and the matter should be reviewed thereafter.

The managing committee of the IBA is likely to meet soon after the bankers meet with with finance minister, Pranab Mukherjee, in New Delhi on Wednesday to appoint a new chairman.

Existing chairman of IBA KC Chakrabarty, CMD, Punjab National Bank will leave the post on his appointment as the deputy governor of Reserve Bank of India.

The IBA will meet UFBU leaders only after the new chairman assumes charge.

The wage revision, known as nineth bipartite, had begun since November 2008.

The UFBU has been opposing the NPS for future bank employees, which had earlier been put as a pre-condition by the IBA.

A conciliatory meeting between the IBA and UFBU was held before the chief labour commissioner in New Delhi on June 4 in light of the call for a strike given by the UFBU. After hearing both sides, CLC advised that both IBA and UFBU should sit across the table within 7 days for a meaningful dialogue to sort out the issues. It is in this connection that IBA officials held a meeting with the UFBU leaders in Mumbai on Tuesday.