"The common pay for bankers is in vogue since 1952. Wage revision is linked to the cost of living, inflation and not to the performance of the banks. All the banks have the capacity to pay its employees," C.H.Venkatachalam, General Secretary, All India Bank Employees' Association (AIBEA) told IANS on Monday.
He said at the last wage revision talks held on September 29 in Mumbai, the United Forum for Bank Unions, an umbrella body of nine bank unions, told the IBA to improve upon their 6 per cent wage hike offer made earlier.
On its part, the IBA said that in addition to the 6 per cent hike which would be common to all banks, additional wage increase can be worked out through a scheme based on the individual bank's operating profits and ROA with a view to adding an element of performance linked compensation over and above the uniform pay structure.
According to Venkatachalam, the UFBU at that meeting had pointed out that IBA's proposal based on performance/profits of the banks was not an answer to our demand for increase in wages due to inflation, price rise, cost of living, increased workload and job profile of bank employees and officers.
He said the operating profits of banks and return on assets would depend on the their business models - urban or rural centric, interest on advances or interest on investments and others.
Nevertheless, IBA had wanted UFBU to consider their proposal and come out with alternate proposals or suggestions while stating that they are not averse to their wage hike offer, Venkatachalam said.
He said the IBA's new proposal will be deliberated at UFBU's meeting to be held on October 14.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
