..........Going by the expectations and the present mood of the ordinary members, we can very well say, anything below 20% will not be acceptable and hence may be rejected outright by a majority of them. If the Trade Union leaders settle for anything less, they face the prospect of being overthrown by their own fraternity. Hope, they are aware of this danger. Already there is a wide disparity between central government employees and us, after the implementation of 6th Pay Commission recommendations. From 01-01-2016, the 7th Pay Commission recommendations may be a reality, to the extent they are accepted by the Union government. In all likelihood, whether bankers’ wages are revised or not, before the next Parliamentary elections in May, 2014, the 7th Pay Commission may be constituted. In a way, that will fuel bankers’ movement further and make their stand firmer and stronger.................
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1 comment:
Writing in Business manager (March 2013), I had observed asunder:
“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.)”
At the risk of repetition, I would appeal to both IBA and unions to take a break from the traditional method of negotiation and factor in the changes that have taken place in financial sector and approach to wages and employment in the recent past.
Earlier we move out from the arithmetical approach to ‘HRM’ (Human Resources Management), the better.
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