Unions contest BBB chief’s proposal for performance linked pay

Bank employees unions have expressed their stiff opposition to any move to introduce performance linked incentive for public sector banks proposed by Banks Board Bureau (BBB) chief Vinod Rai. This will be a prelude to introduce differential pay as also the concept of Cost to Company at a later stage, All India Bank Officers' Confederation (AIBOC) said in a statement.

"Setting performance parameters at various levels of banking functions does not fit well into the banking environment as there are multiple functions for a few and specialist functions for another lot," AIBOC General Secretary Harvinder Singh said. Moreover, he said, such parameters may not work well with the functionaries in controlling offices who undertake jobs of evolving and implementing policies and guidelines at the back office. The unilateral introduction of such practices are aimed at bypassing the bipartite machinery and casting employees against their own colleagues, he added.

Earlier this month, BBB said it is thinking of the fact that the compensation package across the board of public sector banks needs to be improved. "Maybe, we are not able to do much with the fixed part of compensation package but variable part we are hopeful that in the next financial year we will be able to introduce a far more attractive package which do have bonuses, ESOPs and other performance linked incentives as part of the package," Rai had said.