Mumbai: Bank trade unions on Monday rejected as “too low” a 15% wage increase offer by the Indian Banks Association, or IBA. The unions now plan to go on strike from 12 June to protest the low hike and to protest unfavourable pension schemes offered as a “precondition” for the wage increase.
IBA’s offer was about 2% more than what it had offered on 21 February, when the union and banking industry body met last. The unions had rejected that offer as well and had planned a strike from 26-27 February, calling it off after IBA promised to revisit their demands. According to the United Forum of Bank Unions, which is negotiating the wage revision, IBA offered a new pension scheme as a precondition for negotiation.
Under the existing scheme, the amount of pension to be paid after retirement is defined but the employee’s contribution is not.
According to T.N. Goyal, president of the All India State Bank Officers Federation, IBA now wants a scheme in which the contribution will be defined but the final pension amount will not.