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Wednesday, 4 February 2015

Crucial bank wage talks fail; all-India strike from Feb 25

Belying the banking community’s hopes that the stand-off between bank managements and employees’ unions would end soon, crucial negotiations held in Mumbai on Tuesday between the Indian Banks Association and the United Forum of Bank Employees failed. 

Following this, the UFBU has announced that the unions will go on a four-day all-India strike, beginning February 25. It has also decided that the entire banking sector would go on an indefinite strike from March 16. 

The IBA’s wage hike offer fell short of the unions’ expectations. It could come up with only a half per cent increase in the monthly payouts, taking the hike offer to 13 per cent; this was immediately rejected by the UFBU negotiating team. 

Only .5 per cent higher

The IBA team, headed by Rajiv Rishi, CMD of Central Bank of India, included Ashwani Kumar of Dena Bank, Ashwini Mehra of State Bank of India and other executives of public sector banks.
UFBU convenor MV Murali, who led the unions’ negotiating team, told BusinessLine that the two-hour negotiation with the IBA was a big disappointment as it offered only a half per cent increase in the proposed salaries. 

Improved offer

The IBA negotiating team had, in the last round of negotiations on January 19, offered a 12.5 per cent increase in monthly salaries - an improvement from its earlier offer of 11 per cent. 

Murali said the UFBU had deferred its four-day strike, scheduled for the fourth week of last month, on Rajiv Rishi’s assurance that the IBA would substantially increase the offer after consulting with the government. A meeting of the managing committee of the IBA too had been called to discuss the wage issue. 

However, Murali said, just 0.5 per cent was all Rajiv Rishi and his team could offer at Tuesday’s much-anticipated talks. Murali said this was a huge let-down as most employees had hoped the IBA would come up with a good offer and that the nearly two-year negotiation process would end with a five-year wage pact. 

Murali said that, as the accommodating attitude of the nine-union UFBU had not been reciprocated by the IBA, they would harden their stance and an indefinite strike would be launched on March 16 after the February 25-28 shutdown.

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