11th Bipartite Settlement Wage Revision for Bank Employees Updates – On suggestion of BBB (Board of Bank Bureau) Finance Ministry under Government of India has asked in a communication to CEOs and MDs of all the Public Sector Banks (PSB’s) to initiate the steps for smooth conclusion of next wage revision which is due on 01st Nov 2017.
Currently neither IBA (Indian Bankers Association) nor Bank Unions has initiated any type of request for upcoming wage settlement. Finance ministry has requested number of time to various government banks and their MD’s and CEO’s to finalize the modalities for timely implementation of the next pay revision from November. No Banks has currently shown interest in early and timely settlement of 11th Bipartite Settlement Wage revision.
Currently there are 19 Public sector banks in India (Inclusion of IDBI also considered) other than merged entity of State Bank of India (SBI). There are approx eight lacs bank employees for salary revision, which is due on 01st Nov 2017.
Government wanted to close the wage revision of 11th Bipartite Settlement within the time-frame hence requesting the PSBs to look into the matter and conclude the next wage revision prior to the effective date of 1 November 2017.
The bipartite settlement and wage revision of public sector bank employees takes place every five year. The last revision was effected in November 2012. Previously in the 10th Bipartite settlement wage negotiation between PSB banks employee unions and bank management, Indian Banks’ Association (IBA) had settled at 15% hike.
This time Banks Board Bureau chief Vinod Rai had hinted that compensation package across the board of public sector banks needs to be improved. He is in the favor of incentive schemes with variable pay structure with ESOPs and performance linked pay structure. He is also in the favor of appointing managing directors of the public sector banks for minimum period of 6 years.