......The advantages of a delayed settlement for institutions is buying some time to actually make the enhanced payments and for the trade unions, the comfort of collecting a higher amount of levy from the higher amounts of arrears that will be received by employees. The wage settlement for the current period (November 1, 2012 to October 31, 2017) is likely to be different from the above pattern, as Reserve Bank of India (RBI) has stepped in, to ask public sector banks to start make adequate provisioning against liabilities the banks will have to meet on account of wage revision from November 1, 2012 from January-March, 2013 quarter and IBA has almost committed to reach an agreement with unions on wage revision by March 2014. This is a move in the right direction.............
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2 comments:
Dear Shri Warrier,
Your article is ahead of its time i.e; not digestible to the intellectually challenged bureaucracy at this point of time. Rationale wage policy still eludes us.It is learnt that Shri Rajiv Takru , Secretary Financial Services, has agreed to the fact that the pensioners who retired before 2002 may be given 100% neutralisation in DA subject to fact that the entire expenditure would be met from the wage load agreed to by IBA and UNIONS. It means existing employees must agree to share the burden of long back retired employees. Will they agree?
Our own D.G.(Admin) says that 70% of wage revision should be on fixed criterion and 30% should be a variable component.How is he going to cajole the UNIONS?
IBA has postponed the talks which was scheduled to be held on 4 March indefinitely so as to receive necessary guidance from MoF which itself does not know how to proceed.Are wages to be fixed on the basis of views of semi literate leaders of Unions who have their own axe to grind(More LEVY) to delay the agreement or on the basis of an enlightened policy to attract talent to banking sector?
Should not this matter engage the attention of FM Shri Chidambram, RBI GOV, Shri Montek Singh, Shri Raghuraman, Chief Economic Advisor etc; who have stake in India's growth where banking is of paramount importance?
Dear Sitendra Kumar
You have raised many relevant questions for which I too do not have ready answers. Let us hope people are 'listening'. Thanks for the response.
M G Warrier
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