Banks stump unions, to pay part wage arrears at 12% hike

Chennai: It's a Diwali bonanza for public sector bank (PSB) employees. Their accounts are being credited with part wage arrears even before the final agreement on the wage revision between the unions and the management. It's happening for the first time in the India's banking history. "The employees can opt out or take the part arrear payments. If they take the part arrear, the amount credited will not be less than Rs 50,000 and may even exceed Rs 1,00,000," a PSB employee said.

According to him, the move will swell the government's tax revenue kitty and spur the economy in a small way as bankers will spend the money. PSB employees are waiting for wage revision since November 2017. Despite 30 rounds of talks between the United Forum for Bank Unions (UFBU) and the Indian Banks' Association (IBA) since 2017, wage agreement is not yet in sight.

"It's interesting to see the speed at which the management is working towards payment of part wage arrears, while the wage revision talks are moving at a snail's pace," he said.

On October 1, the IBA had written to heads of PSBs and private banks, which are part of the bipartite settlement, to pay ad hoc amount equivalent to a month's salary (basic pay + dearness allowance) and adjust it during final payments after the wage settlement agreement. In January 2016, the government had asked PSBs Chief Executives to initiate the wage revision talks and conclude them by November 1, 2017.