Wage revision-UFBU and IBA enter into an MOU

24 Feb

An employee poses with the bundles of Indian rupee notes inside a bank in AgartalaAS per MOU -the Minutes of the discussions held on 23″’ February 15 between IBA and UFBU , the undernoted salient features have been agreed upon.
1.The wage revision will be effective from 01.11.2012.
2.The annual wage increase in salary and allowances @ 15% which works out to Rs. 4725 crores on salary slip components.
3.The new scales will be constructed after merging dearness allowance corresponding 4440 points as on November 2011, which works out to 60.15% and adding a load factor of 2% on Basic pay plus Dearness Allowance as on 31st March 2012 amounting to around Rs. 597 crores.
4. Distribution of annual wage increase between Workmen Unions and Officers’ Associations will be worked separately based on breakup of establishment expenses as on 31.03.2012
5.Every second and fourth Saturday of the month will be a holiday and other Saturdays will be full working days.
6.All others issues of the Managements and Unions/Associations discussed during the process of negotiation will be settled to the mutual satisfaction.
7.The parties will meet on mutually convenient dates to draw out a detailed Bipartite Settlement/Joint Note on the various issues on which consensus position have been reached. The parties will endeavour to finalise the Bipartite Settlement/Joint Note within a period of ninety days.

The agreed wage hike is lower than the 17.5% increase given in 2010. The last hike, however, was calculated based on remuneration including pension and gratuity, while this time, the hike is being calculated only on the pay slip component.
The gross increase in pay slip with admissible DA as on 01-02-15  after the merger at 444o (60.15%), roughly comes  to  above 22.5%, if  calculated on 15% increase.
Banks have been making provisions for 15 per cent wage hike in their balance sheet since November 2012.
As regards working hours on Saturdays,RBI would be informed about changes following a formal agreement.After RBI’s notification, changes in banking hours on Saturdays would come into force.The new system is likely to take some time.
On a pay slip basis only, the pay out will cost Rs.4,725 crore annually, as against Rs.2,798 crore in the earlier bipartite settlement.
Including pension and gratuity, last time the hike was at Rs.4,816 crore annually, while this time the total hike is about Rs.8,000 crore on an annual basis. Reimbursements related to hospitalization and leave travel allowance will be calculated separately.
IBA had started the negotiation process with a pay hike proposal of 5%, whereas unions demanded 25%. 15% is the average of the 2 extreme proposals.

 

 

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3 Responses to “Wage revision-UFBU and IBA enter into an MOU”

  1. Sarveswara 24/02/2015 at 6:36 pm #

    This agreement is about those who are still in service or were in service as on 1 Nov 2012. Nothing is mentioned about updation of pension.In the memorandum submitted by AIBEA to FM on 18/2/2015, the problem of pensioners was also highlighted. The present anomalous situation of an employee in higher grade getting a pension which is less than that a person in lower grade gets because of difference in date of retirement can be eliminated only by introduction of OROP. There is a rumour that OROP will be introduced for defense personnel in the Central Budget to be presented shortly. Let us hope OROP will be introduced in banking industry also.

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  2. Dinesh Chowbey 29/04/2015 at 10:47 am #

    There is no talk of updating pension of those who retired before 01-11-2012.There is no initiative not efforts by UFBU to resolve this important issue.

    Like

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