Three years and five strikes later, wage revision for public sector bank employees at par with 2012

• The three-day bank strike that would have left banks closed for six days in March has been called off by the unions.
• The Indian Banks’ Association (IBA) has agreed to a 15% wage hike — the same increase that was agreed to during the last wage revision of 2012.
• The wage revision for public sector bank employees has been pending since November 2017.
• The IBA also agreed to take into consideration the provision for 5-day banking and getting more employees on board.
• There was no discussion of reducing service charges for customers.

The three-day bank strike would have left banks inaccessible for six days in India has been called off by the bank unions. It took three years and five strikes for the Indian Banks’ Association (IBA) to agree upon an increase that is at par with what was agreed upon during the last wage revision in 2012 — 15%.

In order to defer the three-day strike — along with three scheduled holidays — the IBA will also consider the option of allowing 5-day banking and the encashment of 5-day privilege leave.

During the last two two-day strike between January 31 and February 1, the IBA told UFBU these terms were off the table. Be that as it may, the unions were originally demanding a wage hike of 20%.


Wages revision pending for three years
The main reason for these strikes is wage revision, which is supposed to take place every five years. However, the last settlement was due on 1 November 2017 but the wages of public sector bank employees haven’t changed since.

Currently, the unions’ claim that the basic pay of public sector bank employees is half of what other central government employees earn.


The unions’ state there were "positive developments" in the talks held with the IBA.

"In view of the developments that emerged from today's negotiation, UFBU decided to defer all programme of agitation including the call of strikes on the issue of wage revision," said United Forum Bank Unions (UFBU).

The IBA has also agreed to look into the issue of more recruitment and improving family pension.


"While the business has been growing, the staff strength has been dwindling," said the strike notice sent to the IBA arguing for more employees to be brought on board. The unions point out that a large segment of the workforce has either already retired or is on the verge of retirement.

They also claim that increasing work pressure due to the lack of manpower has led to over 100 incidents of bank officers committing suicides.

The argument for 5-day banking
The unions’ argue that the 5-day work weeks are the norm around the globe for banks and even for companies operating within India. In the interest of digital banking, the introduction of a 5-day week would reduce cash transaction hours and lead to the augmentation of digital transactions.

"Longer working hours have a negative impact on the level of performance, quality of decisions, the culture of the organisation and the industry, in addition to enslaving him to work, discarding familial and social obligations," said the notice of strike.


What do the banks want for their customers?
One of the unions’ demands is that service charges for customers need to be lowered. The unions’ argue that reducing charges won’t just be for the benefit of the depositors but would also help banks improve their reputation in the eyes of the public.


No movement was made on this demand during the latest round of talks, and negotiations are likely to go on for longer. "IBA agreed to discuss all other issues through further discussions. In view of these positive developments, all our agitational programmes including the ensuing 3 days strike from 11th March, 2020 stands deferred," said the circular.

See also:
Bank strike deferred

Two-day PSU bank strike impacts services

Banks union strike blocks cheques worth ₹23,000 crore