Has the RBI made provision for PENSION UPDATION? If not, then do it now as per the proposals submitted by RBI to Govt of India. Before advising others, we must first meticulously follow our own sermons. The commercial banks are scared to make any provision for wage revision as it would become the starting point of negotiation for unions and they would clamour for more. The BANK MANAGEMENTS can not decide unilaterally the quantum of wage hike as that would negate the bilateral nature of talks between the Banks and Unions.
- Sitendra Kumar (via e-mail)
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The next wage settlement in banking industry will have to factor in, among other things, the following ground level realities:
i) After the introduction of New Pension System (NPS), there are two categories of employees in banks. The claims of employees covered by NPS for higher wages factoring in the reduction in real wages on account of subscription to NPS and the need to save more to ensure income comparable to the pension available to the employees who joined earlier than them are genuine.
ii) Industry parity. Workmen staff/Officers doing similar work in different categories of banks will have to be given comparable wages, additional compensation being provided for extra work.
iii) Outsourcing. Let us not forget Maruti experience. Employees who are on regular employment of banks, even on contract, will have to be given clarity about their absorption in the institutions and a living wage till then. Circumventing labour laws is not in the long term interest of industry.
iv) Institutions will have to revisit the recruitment policy (right from basic qualifications needed), career progression (traditional path is no more relevant or practical) and placement policy (rural posting, need for special skills etc.)
Centre should perhaps consider a quick review by a national level expert group with a view to providing some broad policy guidelines to be followed by industries across public and private sectors, while negotiating wage structure. Transparency in policy will go a long way in reducing sporadic eruptions emanating from suppression of genuine human needs.
M G Warrier, Thiruvananthapuram
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