United Forum Banks Union (UFBU) & Indian Banks Association (IBA) on Monday, 25th May, signed the tenth bipartite wage agreement in Mumbai, which will effectually put an extra burden of RS 4725 Cr and if superannuation is included, RS 8370 Cr. The deal was sealed on Feb 23, 2015.
UFBU was represented by nine bank unions, which covers 25 PSBs, 11 private banks and 7 foreign banks. With this the employees will receive an increase of 15% salary, which will be calculated on the total payslip component that includes Basic, DA, House rent allowance and other benefits.
This agreement will also cover better hospitalization and medication for the employees, who can now avail 100% reimbursement for self and dependent from previous 90% & 75%. For this, the IBA has made a deal with four public sector non-life insurance companies with RS 4 lakhs and RS 3 lakhs floating covers.
The agreement also makes a provision of holidays for employees- every second and fourth Saturday of the month, to which the RBI has given nod but a notification is yet to be issued by the govt.
The deal, which will affect some 5 lakh workmen and 3 lakh officers, will be effective retrospectively from Nov 2012, when the 9th agreement expired. The bank unions had initially submitted the charter of demands to the IBA in back in Oct 2012. The union was originally demanding a 25% increase. The last wage hike was in 2010(17.5%). The wages in banking sector are governed by industry level bipartite agreements.
- UFBU GENERAL SECRETARY : C.H. Venkatachalan
- IBA CHAIRMAN : T.M. Bhasin
- IBA CEO : Mohan V. Tanksale
Some Bank unions :
- National Confederation of Bank Employees ( NCBE )
- National Organization of Bank Workers ( NOBW )
- Bank Employees Federation of India ( BEFI )
- All India Back Employees Association ( AIBEA )
- Indian National Bank Employees Federation ( NBEF ).
- As per the new pact, a subordinate staff will get a minimum basic pay of RS 9,560 and a clerical staff, RS 11,765.