12th Bipartite Settlement
The Indian Banks’ Association representing the Managements of the Banks held a meeting with the authorised representatives of the Union of Workmen’s Unions and the Association of Officers’ Unions to discuss wage revision for the Officers and the Workmen in the Banks. The management and the Union/Association of the Workmen’s staff and officers agree that a strong banking system is needed that can respond to the challenges faced by the banking sector and that there is a need to further enhance the efficiency, productivity and responsiveness of the banking system to meet the needs of customers and various stakeholders. As a result, it was agreed to settle the issue of wage settlement and conclude a Memorandum of Understanding (MOU) as follows:
12th Bipartite Settlement Demands
The wage revision will be effective from 1/11/2022 for a period of five years.
Annual increase in salary and allowances is agreed at 17 %, of the annual pay slip expenses for FY 2021-22, which works out to Rs. 12,449 crores for all public sector banks including SBI.
The new pay scales will be constructed after merging Dearness Allowance corresponding to 8088 points (average Index point as applicable for the Quarter of July, August and September, 2021) to the basic pay as on 31.10.2022, and adding thereon a loading of 3 %, amounting to Rs 1795 crore.
Distribution of annual wage increase between Workmen and Officers will be worked out separately and proportionately based on breakup of establishment expenses for FY 2021-22.
The parties will meet on mutually convenient dates to draw out a detailed Bipartite parties will endeavor to finalize the Bipartite Settlement /Joint Note within a period of 180 days from the date of this minutes.
IBA has already recommended to the Government for declaration of all Saturdays as holidays under NI Act for Banking industry in line with earlier negotiations with unions /associations and the same will be pursued. The unions/associations urged for implementation of the same before signing of the final bipartite agreement/ joint note.
12th Bipartite Settlement Date
A Memorandum of Understanding was signed on 7 December 2023 by UFBU and IBA in the framework of bilateral negotiations which have been ongoing for a year. The next meeting was held on 12 January 2024, and after a long discussion that lasted until late at night the cost sheets were signed between IBA and UFB. However, a veil of secrecy over the details of the cost statement remains in place from official sources. As a result, speculation and debates have arisen as to whether the information leaked is circulating.
12th Bipartite Settlement Expected Date
The bipartite talk held on 12 January witnessed limited discussions, and decisions appear to be made unilaterally within an exclusive working group.
According to reliable sources, there has been a call for renegotiation of certain provisions in the agreement based on concerns by some unions within the UFBU about what they perceive as an arbitrary approach and social media outrage among bankers. Consequently, the finalisation and publication of the cost data has been delayed.
