LETTER NO UFBU/2019/10 Date 03.10.2019
Shri V. G. Kannan,
Indian Banks’ Association,
World Trade Centre, Centre 1,6th Floor, Cuffe Parade,
Our attention has been drawn to a communication from IBA dated 1-10-2019 under your
signature to all member Banks advising them to disburse an adhoc amount equivalent to one
month’s salary to all employees and officers who were in service as on 1-11-2017 and who
continue to be in service today and to disburse 15 days’ salary for employees and officers who
joined between 1-11-2017 and 31-3-2019 pending finalization of the wage revision settlement.
You are aware of the advisory from the Finance Ministry, Government of India dated 12-1-2016 advising the Banks and Indian Banks’ Association to initiate the process of
negotiations/wage revision of the employees and to conclude it prior to the effective date i.e.
You are also aware that having regard to this Advisory, our Workmen Unions and Officers
Associations had also submitted the Charter of Demands well in advance with a request to IBA
to commence the negotiations in advance so that we may conclude it before the stipulated date.
You will also recall that when the initial round of discussion was called by the IBA on 2-5-2017, from the UFBU we had expressed our view that the discussion should be held on regular
basis and concluded at the earliest. IBA also agreed to the same. But, records will speak, that
talks were held after a lot of time gap every time and this is the main reason for the delay. This
delay is not attributable to the Unions.
Even though the negotiations commenced in May, 2017, only after a period of one year, that is
in the discussions held in May, 2018, IBA made its first offer of 2%. Thus one full year of
negotiation was without any offer from IBA. This delay is also solely on the shoulders of the
IBA and not the Unions.
Even in the communication under reference, IBA has presumed and stated that it would take
some more time to conclude the negotiations and sign the Settlement. This clearly shows that IBA wants to further delay the Settlement with a deliberate intention to frustrate the employees
and officers and to divert the wrath of the workforce against the unions.
If IBA expects further delay in the Settlement, for whatever may the reason, and hence wanted
to pay an adhoc amount, it should have been taken up with the Unions during negotiations.
Even in the last round of negotiations held on 17-9-2019, there was no inkling of what was
there in the mind of IBA and no such proposal was mooted by IBA.
Hence, the decision to pay adhoc amount, is not only unfair, unilateral and arbitrary but it is
also a deliberate attempt to undermine the role of unions and their right of collective
bargaining. This is a naked attempt to de-unionise the workforce. Such attempts are bound
to have an adverse impact on the otherwise healthy industrial relations in the banking industry.
It is unfortunate that, after negotiating with the Unions for more than two years so far, instead
of expediting the Settlement, IBA has chosen to decide to pay ad-hoc amount on its own for
the reasons best known to you.
We do not want to deal with the goodwill gesture on the part of IBA as employees and officers
of the Banks are capable of understanding the motive behind this decision. Suffice it to say
that this goodwill gesture was absent in payment of overtime wages/compensation to
employees and officers when they bore the brunt during the demonetisation period and during
the implementation of Jan Dhan Yojana scheme within a short period and such other occasions.
Even till now, many Bank managements are defaulters in this regard. We wish that such
goodwill gesture should have been shown in those times when employees and officers were
suffering under so much of stress and strain.
On behalf of all the negotiating unions, we wish to convey our strong resentment, displeasure
and protest against the unilateral decision of the IBA in this regard.
Please take note of our strong views in this regard.