Minutes of the discussions held on 22nd July, 2020 between IBA representation Management of banks which are parties to the Bipartite Settlement and Workmen Unions and Officers’ Associations on wage revision.

Discussions were held between the Indian Banks’ Association representing Managements of banks and the authorized representatives of workmen Unions and Officers’ Associations on wage revision for officers and workmen in banks.

The management and the Unions representing Officers and Workmen staff, acknowledge the need for a robust banking system which is representative to the challenges facing the country and the need to improve further the productivity, efficient and responsiveness to the needs of the customers and various state holders. With this commitment, it has been agreed to resolve the pending wage settlement issue and enter into an MoU as under:-

1. The wage revision will be effective from 1.11.2017.
2. The annual wage increase in salary and allowances is agreed at 15% of the wage bill as on 31-3-2017 which works out to Rs.7,898 crores on Payslip components.
3. The new pay scales will be constructed after merging Dearness Allowance corresponding to 6352 points (average Index point as applicable for the Quarter of June, July, August 2016) and adding thereon a loading of 2.50% on Basic Pay plus Dearness Allowance as on 31″ March 2017 amounting to around Rs. 1155/- Crores.
4. Distribution of annual wage increase between Workmen and Officers will be worked separately and proportionately based on breakup of establishment expenses as on 31.3.2017.
5. In today’s Banking scenario, there is stiff competition amongst different category of banks i.e., Public sector, Private sector, Foreign banks. In order to inculcate a sense of competition and also to reward the performance, the concept of Performance Linked Pay is felt to be introduced. After prolonged discussions and deliberations on this matter, it has been agreed to introduce Performance Linked Incentive (PLI) in Public Sector Banks, which will be based on Operating/ Net Profit of the individual bank (optional for private & foreign banks). The PIA is payable to all employees annually over and above the normal salary payable. The PLI matrix decides the amount payable to the employees (in number of days of pay-Basic+DA) depending on the annual performance of the bank. All the employees will get the number of days of pay as incentive depending on where in the matrix the bank’s performance fits in, broadly as per pay Matrix under :

* 3rd & 4th slabs are payable only if the Bank has Net Profit. If a Bank has growth in Operating profit of 5% & more, but there is no Net Profit, then minimum 2nd slab of 5 days will be payable.

(The PLI will be applicable from FY- 2020-21)

Also check: Bank DA May to July 2020 @ 76.10% – IBA

6. From the calendar year 2020, besides encashment of PL at the time of retirement and during availment of LFC, PL Encashment would be permitted at 5 days every calendar year (7 days in case of employees/officers of 55 years of age and above) at the time of any festival of their choice.
7. It has been agreed to increase the banks contribution to the NPS fund to 14%, i.e. 14% of Pay & Dearness Allowance instead of the present rate of 10% from the prospective date of signing the settlement subject to approval of the Govt.
8. All other issues of the Managements and Unions/Associations discussed during the process of negotiation will be settled to the mutual satisfaction.
9. The parties will meet on mutually convenient dates to draw out a detailed Bipartite Settlement / Joint Note on the various issues on which consensus positions have been reached. The parties will endeavor to finalize the Bipartite Settlement / Joint Note within a period of ninety days from the date of this minutes.

Signed at Mumbai on 22nd July, 2020

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Expected DA 2020

Bank DA May to July 2020 @ 76.10% – IBA

HR & Industrial Relations

No.CIR/HR&IR/76/D/2020/01

May 1, 2020

All Members of the Association
(Designated Officers)

Dear Sir/ Madam,

Dearness Allowance for Workmen and Officer Employees in banks for the months of May, June & July 2020 under X BPS/ Joint Note dated 25.5.2015

The confirmed All India Average Consumer Price Index Numbers for Industrial Workers (Base1960=100) for the quarter ended March 2020 are as follows:-

January 2020 – 7532.55
February 2020 – 7486.90
March 2020 – 7441.24

The average CPI of the above is 7486.90 and accordingly the number of DA slabs are 761 (7486 – 4440= 3046/4= 761 Slabs) The last quarterly Payment of DA was at 759 Slabs. Hence there is an increase in DA slabs of 2 i.e. 761 Slabs for payment of DA for the quarter May, June & July 2020

In terms of clause 7 of the 10th Bipartite Settlement dated 25.05.2015 and clause 3 of the Joint Note dated 25.05.2015, the rate of Dearness Allowance payable to workmen and officer employees for the months of May, June & July 2020 shall be 76.10 % of ‘pay’. While arriving at dearness allowance payable, decimals from third place may please be ignored.

Yours faithfully,

S.K Kakkar
Senior Advisor (HR & IR)

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Renewal of Medical Insurance Scheme for Retirees as agreed vide Bipartite Settlement/Joint Note Dated 25th May, 2015

Indian Banks’ Association
HR & INDUSTRIAL RELATIONS

No. CIR/HR&IR/BRK/2018-19/6037

9th October 2018

CEOs of All member banks party to 10th Bi-partite Settlement/Joint Note dated 25.5.2015

Dear Sir/Madam,
Renewal of Medical Insurance Scheme for Retirees as agreed vide Bipartite Settlement/Joint Note Dated 25th May, 2015

We invite your attention to our letter CIR/HR&IR/2015-16/XBPS/J/1413 dated 1st October, 2015, in terms of which banks were advised to extend the Group Medical Insurance Scheme to retirees also subject to payment of stipulated premium by them. Said Scheme is optional for retirees.

2. Thereafter, the Policy has been renewed for the year 2016-17 & 2017-18 and the current Policy is expiring on 31.10.2018.
3. IBA vide its letter 16th July, 2018 called quotes from all Public Sector Insurance Companies and SBI General Insurance Co., who were the co-insurer of the existing Policy.
4. In response to our letter Oriental Insurance Co., National Insurance Co., & SBI General Ins. Co. did not submit any quote for the Retirees policy. United India Insurance Co. & New India Assurance Co. submitted quotes as per Table below :-

5. As there was a proposed hike of 110% & 144% in the quotes for renewal of the Medical Insurance Policy without domiciliary and with domiciliary respectively, the matter was immediately taken up with UIIC who was L1 to re-examine and reduce the same.
6. With great persuasion and concerted effort made by the IBA, UIIC has revised the quote vide its letter dated 6.10.2018.
7. On the suggestions made by UFBU, UIIC gave option for sum insured i.e. Rs. 4 laksh / Rs. 3 Lakhs for Officers & Rs.3 Lakhs/ Rs. 2 Lakhs in case of Workmen. The insurance premium increase now quoted by UIIC after revision is 75% (earlier 110%) for without domiciliary and 123% (earlier 144%) with domiciliary (Annexure I)
8. Since, the Medical Insurance Policy for Retired Officers/Employees is optional, we request all the member banks to seek consent and collect premium from the interested retiree Officers/Employees as per the option chosen by them for renewal of the Policy with UIIC, with the same terms and conditions mentioned in the aforesaid letter of UIIC.
9. However, Banks are free to take up the Policy renewal by seeking quotes from any other Insurance Companies if the Banks decides to do so at their level.
10. We once again advise that as mentioned in our letter dated 7th June, 2018, banks may require to allocate some separate manpower to address claims by following up directly with TPAs/Insurance Cos as the services of broker are not available.
11. We enclose the revised premium quote received from UIIC (Annex II) for your ready reference.

Yours faithfully,
B Raj Kumar
Deputy Chief Executive

Annexure I

Source: http://www.iba.org.in/

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INDIAN BANKs’ ASSOCIATION

HR & INDUSTRIAL RELATIONS

No.HR&IR/SKK/Medical Ins/2018-19/5041

May 8, 2018

Shri Sanjev K.Bandish,Convenor,UFBU
United Forum of Bank Unions,
C/o State Bank of India,LHO,Plot no.1, Sector -17A
Chandigarh – 1600017

Dear Sir,
Medical Insurance Scheme – constitution of committee

Please refer to our earlier communication in the subject matter and discussions held on 5th May,2018 with the Negotiating Committee. As desired , we place below the four suggested options:

i. Banks may go back to the earlier Hospitalization Expenses reimbursement Scheme as was in vogue till 9th Bi-partite settlement for employees and dependent family members.

ii. Directly deal with united India Insurance Co.Ltd or any other Insurance Company by calling quotes, without any interference from Broker.

iii. Advise banks to decide on the course of Medical Insurance Scheme on their own. Each Bank can negotiate with Insurance Companies to provide a Scheme tailor made to the requirement of the same.

iv. Continue with the process of appointing two or more brokers to help in assisting the IBA member banks to get a suitable Scheme prepared after getting the best quote as the nuances and fine print of the Insurance Policy and its features & interpretation will not be known to most employees & IBA in the absence of a broker.

2.In this context, as suggested by you, we would like to hold a meeting at our stadium House Office on 11.5.2018 at 11.00am to have fruitful deliberation for further course of action regarding Medical Insurance Scheme. You are therefore requested to kindly make it convenient to depute four representatives (two from officers Associations & two from Workmen Unions) to attend the meeting & share the views of the unions & Associations so that the matter may be concluded well in time before renewal.

3.A line of confirmation will be highly appreciated in this regard.

Yours faithfully,
S/d,
S K Kakkar,
senior Advisor (HR&IR)

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Dearness Relief payable to Pensioners for the period February 2018 to July 2018

Indian Banks’ Association

HR & Industrial Relations

No.CIR/HR&IR/D/G2/2017-18/4433

February 1, 2018

(Designated Officers of all Members Banks which are parties to the Bipartite Settlements on Pension

Dear Sirs,
Dearness Relief payable to Pensioners for the period February 2018 to July 2018

The confirmed All India Average Consumer Price Index Numbers for Industrial Workers  (Base 1960=100) for the quarter ended December 2017 are as follows:-

October 2017 – 6551.03
November 2017 – 6573.86
December 2017 – 6528.21

In terms of Regulation 37 of Bank Employees’ Pension Regulations, 1995 Dearness Relief is payable to pensioners at rates specified in Appendix II to the Regulations.

Pending amendments to Pension Regulations, Banks may pay on ad hoc basis, the Dearness Relief payable to pensioners for the period February 2018 to July 2018 as per Annexure.

Yours faithfully,
sd/-

S K Kakkar
Senior Advisor (HR&IR)

Authority: http://www.iba.org.in/

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DA to Bank Employees & Officers from Feb to Apr 2018 under 19th BPS Joint Note

HR & Industrial Relations
No.CIR/HR&1R/76/D/2017-18/4431

All Members of the Association
(Designated Officers)

Dear Sirs,

Dearness Allowance for Workmen and Officer Employees in banks for the months of February, March & April 2018 under X BPS/Joint Note 25.5.2015

The confirmed All India Average Consumer Price Index Numbers for Industrial Workers (Base 1960=100) for the quarter ended December 2017 are as follows:-

October 2017 – 6551.03
November 2017 – 6573.86
December 2017 – 6528.21

The average CPI of the above is 6551 and accordingly the number of DA slabs are 527(6551-4440=2111/4= 527 Slabs). The last quarterly Payment of DA was at 516 Slabs. Hence there is an increase in DA slabs of 11, i.e 527 Slabs for payment of DA for the quarter February, March & April 2018.

In terms of clause 7 of the 10th Bipartite Settlement dated 25.05.2015 and clause 3 of the Joint Note dated 25.05.2015, the rate of Dearness Allowance payable to workmen and officer employees for the months of February, March & April 2018 shall be 52.70% of ‘pay’. While arriving at dearness allowance payable, decimals from third place may please be ignored.

Source: http://www.iba.org.in/

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All India UCO Bank Officers Federation

Ref.: Com/EC/ 97 /2015-2018

Dated :22.05.2017

All Office Bearers, E.C.Members & Units

BOTTLENECKS IN THE COMMENCEMENT OF SALARY REVISION NEGOTIATIONS IN BANKING INDUSTRY

We have today sent a communication to Hon’ble Finance Minister of India on the captioned subject. A copy of the same is enclosed for information.

All our members/affiliates are requested to await further developments in this regard.

With greetings,
SD/-
(D.T.Franco)
GENERAL SECRETARY

Text of the Letter

Letter No: AIBOC/2017/19

Dated: 20/05/2017

Shri. Arun Jaitley,
Hon’ble Minister for Finance,
Government of India,
NEW DELHI.

Dear Sir,

BOTTLENECKS IN THE COMMENCEMENT OF SALARY REVISION NEGOTIATIONS IN BANKING INDUSTRY

We are sorry to bring to your kind notice that even though the Government of India has been insisting for an early salary revision settlement at the industry level between the Indian Banks Association and the United forum of Bank Unions, there has been an unnecessary delay due to certain avoidable difficulties created by the Management of few banks in the Banking industry. It is historical that the salary revision in the Banking industry takes place once in 5 years through bilateral negotiations between the associations/unions and the Indian Banks Association covering over 10 lac workforce in the entire banking industry.

During the last five decades we have concluded 10 bipartite settlements and the 11th one is now expected to take off. The first round of meeting was held between the IBA and the constituents of the United Forum of Bank unions on 2nd May, 2017 but without any concrete progress. One of the major hurdles that we are now encountering is in respect of the ‘mandate’ to be given by the member banks to the Indian Banks’ Association. A few of the banks have given a conditional mandate creating a chaotic and confusing situation in the negotiations, by insisting that they are allowing mandate for discussions only upto officers of scale III and that the remaining scales will have to be left to the discretion of the Bank.

2.The Banking Industry is overwhelmingly under the control of the Government of India due to the historical decisions taken by the Government of India during 1969 and 1980. The Nationalization of Banks was in the best interests of the economy and to take Banking facilities to the nook and corner of the country. We have seen the great contribution made by the banks during the last several decades due to this consolidation and ownership by the Central Government. But there was one area which was causing serious industrial relations crisis in the Banks at frequent intervals. Different banks had different service conditions and compensation system creating serious problems in the area of HR management.

It was at this stage that the Government of India appointed Pillai Committee for the purpose of standardization of the scales and grades and also to bring parity amongst the Public Sector banks. After a thorough study of the service conditions that existed in those days, the Pillai Committee submitted a comprehensive report aiming at standardization and uniformity in the service conditions of the Officers in the Banking Industry. Thereafter, the Government of India introduced the recommendations of the Pillai Committee in the Banks for ensuring standardization and parity amongst the Public Sector Banks.

Thus, a well-developed pattern was established over the next rounds of bipartite system in carrying forward the attempts made by Pillai Committee for the purpose of standardization of the salary scales and compensation system in the Banking industry. The Pillai Committee had recommended 4 grades and 7 scales which has now become a regular feature in all the Public Sector banks including the State Bank of India.

3.The Officers’ organizations have been negotiating with the Indian Banks Association in respect of all these 7 scales over the last several bipartites. Thus, the industrial relations have been cordial and harmonious as far as the salary structure and compensation systems were concerned as they were being discussed and settled through bilateral negotiations at the industry level. The present decision of some of the Banks, in particular the bigger Banks, seem to create a similar disparity which was prevailing earlier to distort the broad parity that is prevailing in the banking industry by attempting to retain the right of decision in regard to the scale IV and above in the banking industry. This will defeat the very purpose of the Pillai Committee’s attempt in ensuring parity and the subsequent objectives of the bilateral settlement.

4.We have conveyed our sentiments to IBA in our informal discussions and have requested them to ask all the Banks to give an unconditional mandate for negotiations on all scales rather than restricting it up to scale III alone. We therefore request your kind intervention in the matter so that the issue could be resolved without any further escalation on this issue which may affect the smooth conduct of negotiations.

5.Please treat the matter as urgent.

Thanking you in anticipation.

Yours sincerely,
SD/-
(D. T. Franco)
GENERAL SECRETARY

Source: www.aiucbof.com

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No.CIR/HR&IR/761D/2017-18/2625

April 29, 2017

All Members of the Association
(Designated Officers)

Dear Sirs,

Dearness Allowance for Workmen and Officer Employees in banks for the months of May, June and July 2017 under X BPS/ Joint Note dated 25.5.2015

The confirmed All India Average Consumer Price Index Numbers for Industrial Workers (Base1960=100) for the quarter ended March 2017 are as follows:

The average CPI of the above is 6261.91 and accordingly the number of DA slabs is 456 (6261.91-4440 = 1821.91/4= 456 slabs). The last quarterly payment of DA was at 469 slabs. Hence, there is a decrease in DA slabs of 13, i.e. 456 slabs for payment of DA for the quarter May, June and July 2017.

In terms of clause 7 of the 10^th Bipartite Settlement dated 25.05.2015 and clause 3 of the Joint Note dated 25.05.2015, the rate of Dearness Allowance payable to workmen and officer employees for the months of May, June and July 2017 shall be 45.60 % of ‘pay’. While arriving at dearness allowance payable, decimals from third place may please be ignored.

Yours faithfully,

S/d,
Chauhan
Senior Vice President

Signed Copy

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HR & Industrial Relations

No.CIR/HR&IR/H6/2017-18/2534

April 18, 2017

All Members of the Association
(Designated Officers)

Dear Sirs,

Public Holiday on 19th April, 2017 on account of polling of By-Election, 2017

We enclose a copy of notification No. PHD. 1317/346/C.R.64/XXIX dated 10th April, 2017 issued by the Government of Maharashtra declaring Wednesday, the 19th April, 2017 as Public Holiday under the Negotiable Instruments Act, 1881 (XXVI of 1881), on account of polling of By-Election, 2017 in the concerned Municipal Corporation, Zilla Parishads and Panchayat Samiti.

This is for information of members banks.

Yours faithfully,
sd/-
K S Chauhan
Sr. Vice President-HR&IR

Authroity: www.iba.org.in
Click to view the order

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Indian  Banks’ Association

HR & Industrial Relations

No.CIR/HR&IR/76/D/2016-1711996

February 1, 2017

All Members  of the Association
(Designated  Officers)

Dear Sirs,

Dearness  Allowance  for Workmen and Officer Employees  in banks  for the months of February, March  & April  2017 under X BPS/ Joint Note dated 25.5.2015

The confirmed All India Average Consumer Price Index Numbers for Industrial Workers (Base1960= 100) for the quarter ended December 2016 are as follows:-

The average CPI of the above is 6315 and accordingly the number of DA slabs are 469(6315-4440= 1875/4= 469  Slabs) The last quarterly Payment of DA was at 478 Slabs.  Hence there is a decrease in DA slabs of 9, i.e 469 Slabs for payment of DA for the quarter February, March & April 2017.

In terms of clause 7 of the 101h  Bipartite Settlement dated 25.05.2015 and clause 3 of the Joint Note dated 25.05.2015, the rate of Dearness Allowance payable to workmen and officer employees for the months of February, March & April  2017 shall be 46.90  % of  ‘pay’. While arriving at dearness  allowance payable, decimals from third  place  may please  be ignored.

We advise banks to pay the difference between the old and revised salary and allowance to officers on an ad hoc basis, pending amendments to Officers’ Service Regulations.

Yours faithfully,
K S Chauhan
Senior Vice President

Source : IBA

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