Mumbai: State-run bank Punjab National Bank is contemplating to move away from Indian Banks Association (IBA)-led wage settlement to retain talent under its own remuneration package. Managing director and chief executive Usha Ananthasubramanian said the bank has set up an internal committee consisting of general managers which is studying the feasibility of a new wage structure for the bank.
“The times are changing and we have to change with the time. We can’t be saying that we will follow the same old things. We are moving into an era where we need to recognise performance and give remuneration to manage talent,” she said. She, however, said it is an initial thought and nothing has been finalised so far. “We will have to deliberate at the board level. We’ve formed an internal committee of general managers to examine what would be pros and cons and they are working on it,” she added.
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Ananthasubramanian said earlier also the bank had decided to move away from the community-based wage negotiations but later had stick to IBA-led wage structure. Currently, banking lobby IBA, on behalf of its member banks, negotiates wage settlement with employee unions and officers associations.
The wage settlement are applicable for five years. In the last wage settlement, which was fixed last November, employees were given 15% increase in salary and allowances. The wage revision was effective from 1 November 2012 and is will be valid till 2017.