News about BIPARTITE&PENSION 2nd OPTION

UCO Bank Employees' Union
328, Thambu Chetty Street,
Chennai – 600001


Unions defer strike plan after IBA softens stance
Bank unions have deferred their strike call for June 12 after the Indian Banks’ Association (IBA) dropped certain pre-conditions and expressed willingness to improve its offer on the wage increase issue.
Climbing down from its earlier stance that it would go in for bipartite talks with the bank unions only if the latter withdrew the strike call, the IBA is understood to have come forward to hold discussions with the unions on Tuesday.
At a round of bipartite discussions held in Mumbai, the IBA also changed its stance on a earlier pre-condition that all new recruits to the banking sector should adopt the New Pension Scheme, which is a contributory scheme and not a defined benefit one.
“Since the IBA has changed its stance by not insisting on its earlier pre-conditions and also improved its offer on wage increase, we have decided to defer the strike and engage in further discussions with it,” Mr C.H.Venkatachalam, Convenor, UFBU, a representative body of nine bank unions, told Business Line.
Scheme for new recruits
IBA is understood to have said that the existing pension scheme will continue to be applicable to all new recruits up to March 31, 2010. But the UFBU has said that this should be extended up to October 31, 2012 and the matter should be reviewed thereafter. Both parties are to further discuss this matter, according to Mr Venkatachalam.
Wage hike
On wage increase, IBA was willing to improve its offer from 15 per cent to 17 per cent subject to approval by the Managing Committee. UFBU wanted IBA to further improve the offer to 20%.
Meanwhile, IBA and UFBU have agreed upon the manner in which additional pension costs of Rs 6,000 crore would be shared for providing another opportunity to certain bank employees to opt for pension scheme.
While the banks would fork out Rs 4,200 crore, the employees/officers would come up with Rs 1,800 crore as their share. Earlier, the IBA was insisting that employees/banks should contribute about Rs 2,500 crore towards the additional cost.
Benefit for employees
With this decision on sharing of additional pension costs, it is now almost certain that about 2,70,000 existing employees/officers and 50,000 retired employees will get the benefit of another option for pension.
Earlier, in the mid- 90s, they had opted for provident fund as a retirement benefit, but later wanted to move to pension. They are being given one more chance to opt for pension.