Indian Banks’ Association has termed the wage hike demand of 23% by the United Forum of Bank Union (UFBU) as illogical and irrational.
“Managing Committee of IBA and the Chairmen of all the banks, were unequivocal in saying that the demand of 23% increase of Unions/Associations is unaffordable, illogical, exorbitant and irrational,” it said in a statement.
The banks are willing to offer a 11% hike on salary and allowances which the lenders say will translate into a 12.5% hike on the balance sheet cost.
The IBA said that this number has been arrive based after taking into account the paying capacity of the banks, lower profitability, higher requirements for provisions and further capital requirement under Basel-III.
Earlier, All India Bank Employees’ Association (AIBEA) said a meeting of the UFBU held at Mumbai on December 17 had expressed its dissatisfaction with the delay in settling demands for wage revision.
Fourteen rounds of discussion have been held so far between the union and IBA and consensus on effective date of implementation and merger of dearness allowance have been arrived at. However, they have not been able to arrive at an agreement on wage hike yet.
The UFBU had said that it would be holding a one-day all-India strike on January 7 followed by a four-day strike across the country from January 21-24. An indefinite strike would be initiated from March 16 to achieve the demand, it had added.
On the other IBA has made an appeal to UFBU to give up the agitational path and to return to the table for further negotiations. In the meantime, IBA has also requested all member banks to assess their paying capacity and advise them accordingly