Discussion on Financial demands by month end.
Departing from the practice of standard payscales across banks, irrespective of size or financial health, public sector banks have proposed bank-wise compensation for executives, depending on the strength of each entity. PSU banks under the aegis of the Indian Banks Association (IBA) have also proposed wage increases be productivity-linked rather than automatic hikesbased on tenure. Unions have opposed both the proposals.
"Bank-wise settlement and productivity-linked compensation are something that IBA comes up with during the start of every bipartite discussion. Unions are opposed to both of them," said Devidas Tuljapurkar, joint secretary All India Bank Employees Association (AIBEA). On Tuesday, the IBA had its initial round of discussion with employee associations on wage revision. Public sector banks are trying to bring in the 'cost to company' concept that is prevalent in the private sector. The banker's association plans to make a strong push for a large variable component in the compensation. Like in the pension reform, which was brought in by making it applicable to new employees, they may propose that variable pay be introduced for new hires.
Departing from the practice of standard payscales across banks, irrespective of size or financial health, public sector banks have proposed bank-wise compensation for executives, depending on the strength of each entity. PSU banks under the aegis of the Indian Banks Association (IBA) have also proposed wage increases be productivity-linked rather than automatic hikesbased on tenure. Unions have opposed both the proposals.
"Bank-wise settlement and productivity-linked compensation are something that IBA comes up with during the start of every bipartite discussion. Unions are opposed to both of them," said Devidas Tuljapurkar, joint secretary All India Bank Employees Association (AIBEA). On Tuesday, the IBA had its initial round of discussion with employee associations on wage revision. Public sector banks are trying to bring in the 'cost to company' concept that is prevalent in the private sector. The banker's association plans to make a strong push for a large variable component in the compensation. Like in the pension reform, which was brought in by making it applicable to new employees, they may propose that variable pay be introduced for new hires.
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